No Deforestation, No Peat, No Exploitation (NDPE) Policy

The Estée Lauder Companies’ (ELC) founding values inspire our commitment to operate responsibly and motivate us to build a sustainable business based on uncompromising ethics, integrity, fairness, diversity and trust. In partnership with our suppliers, our retailers, our consumers and everyone we touch, we aspire to foster our heritage of respect for people and the environment and be a positive influence in every community we serve.

As a buyer of raw materials globally, we understand that agriculture production has inherent social and environmental risks and practices linked to human rights abuses as well as deforestation. With this understanding, we have a responsibility to ensure our sourcing strategy aligns with our company values.

We require the suppliers we engage to commit to our Supplier Code of Conduct principles as a basic requirement of doing business together. This requirement ensures that all suppliers respect human rights, the rights of indigenous peoples and local communities, as well as workers’ rights in all operations.

To further support our commitment to sustainable sourcing, ELC expects supplier sourcing of raw materials to meet the following criteria*:

No Deforestation

• No deforestation, which includes the conversion of natural forests and high conservation value forests to agriculture, tree plantations, or other land uses, or severe human-induced degradation
• Commitment to long-term protection of natural forests

No Conversion

• No conversion, which includes conversion of non-forested natural ecosystems or peatlands to agriculture, tree plantations or other land uses, or severe human-induced degradation
• Commitment to long-term protection and conservation of natural ecosystems

We expect suppliers to investigate and resolve environmental and human rights complaints using generally accepted practices and procedures.

ELC will conduct due diligence of raw material sourcing to ensure compliance with these criteria. We will begin this process by conducting key commodity supplier compliance assessments, which will then further inform commodity-specific action plans. We will report on this process annually as appropriate.

Our intent is to raise suppliers’ performance so they can comply with our standards. If suppliers fail to comply with the outlined raw material sourcing criteria, we will develop supplier corrective action plans and aid in implementation. If there is a lack of cooperation or untimely implementation of corrective action plans, this may result in a reduction in supplier business or termination of the supplier relationship.

To reflect ongoing best practices developing in each of our commodity supply chains, as well as our overall organisation strategy, we will proactively review and update this policy periodically.

*Criteria are sourced from the Accountability Framework