United States

Letter From Nancy Mahon, Chief Sustainability Officer

Company Feature

Dear Stakeholders,

I am proud to share The Estée Lauder Companies’ fiscal 2023 Social Impact and Sustainability Report, which describes our strategy, programmes and progress towards our goals and commitments.

We continue to deepen our understanding of how our work impacts the environment and the communities where we live, work and source, focusing on issues that are strategically relevant to the company and of critical importance to our world. Grounded in this knowledge, we’re developing approaches to magnify positive actions, make meaningful contributions and create value for our business.

We have maintained a steady pace towards achieving our goals and commitments. For example, 71% of our packaging is now recyclable, refillable, reusable, recycled or recoverable. For the fourth year in a row, we have achieved carbon neutrality across our Scope 1 and Scope 2 greenhouse gas (GHG) emissions and sourced 100% renewable electricity globally for our direct operations. And, the significant expansion of our ELC Good Works platform to additional global markets will enable further opportunities for employee giving and volunteerism — helping create ever stronger connections with our communities and philanthropic partners.

We continue to look ahead to identify where we can lead our industry. For example, we are sharpening our ability to more accurately measure our Scope 3 GHG emissions so that we can better target opportunities to decrease these emissions. This work will rely on further strengthening our supplier relationships and investing in innovative solutions that can be adopted across the value chain.

ELC NM

Nancy Mahon, Chief Sustainability Officer

Sustainability and social impact is not something owned by one team at The Estée Lauder Companies. We depend on the collective efforts of our entire organisation and the individual passion of our employees. Importantly, we recognise that just as the field is evolving rapidly, so must the skillset of our people. We’ve taken important steps to develop resources to help equip each one of us to drive positive change through our respective roles and to facilitate access to ongoing training and education.

Only in partnership with others will our journey have meaning and deliver the greatest value. We are committed to working with our employees, consumers, investors, suppliers, retailers, communities, policy makers and regulators to understand their needs and align our collective efforts to build a more just and sustainable world.

Thank you, as always, for your tremendous support.

Nancy Mahon

Chief Sustainability Officer, The Estée Lauder Companies Inc.

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