Estee Lauder

Packaging

Estée Lauder reports that 76% of its packaging meets at least one of the “5 Rs” (recyclable, refillable, reusable, recycled or recoverable), with a goal of 75–100% by 2025. The brand has eliminated excess cartons or paper where possible, and over 99% of its paperboard cartons are now FSC-certified. However, about a quarter still fails to qualify under the 5 Rs, and many products continue to use mixed materials (plastics, metals) that are not easily recyclable. Heavily reliance on virgin and single use plastics remains a serious concern.

Ingredient Sustainability

Through a Responsible Sourcing program, the company enforces a No Deforestation, No Peat, No Exploitation (NDPE) policy for key forest commodities. Notably, Estée Lauder is a member of the Roundtable on Sustainable Palm Oil (RSPO) and commits that at least 95% of its palm oil and palm-derived ingredients will be certified sustainable by end of 2025. In practice, many Estée Lauder formulations blend synthetic compounds (e.g. petroleum-derived emollients, silicones) with naturally sourced extracts. For instance, a representative serum contains botanical extracts like baobab, yeast ferment, and chamomile alongside petrochemical derivatives (PEGs and silicones).

Overall, the brand shows a commitment to sustainable sourcing of key materials (palm, paper, mica) and increasing use of renewable ingredients, but its formulas still rely on some unsustainable inputs.

Energy Use and Footprint

The Estée Lauder Companies achieved carbon neutrality for its direct operations (Scopes 1 and 2) in 2020, largely by improving energy efficiency, investing in renewables, and procuring high-quality carbon offsets. The company joined the RE100 initiative and met its target of sourcing 100% renewable electricity globally by 2020 for all operations. The brand is also tackling indirect emissions: for example, it has committed to transition 100% of its global corporate vehicle fleet to electric by 2030 (joining the EV100 program). Overall, Estée Lauder’s in-house brand benefits from these enterprise-wide initiatives, resulting in a relatively low operational footprint per product.

Waste Management

As of fiscal 2020, the company achieved zero industrial waste-to-landfill at 100% of its global manufacturing, distribution, and innovation sites. This means all factory and supply chain waste is either reduced, reused/recycled, or converted to energy, rather than sent to landfills. The brand has maintained this commitment going forward and expanded it as new facilities come online.

Business Model

Estée Lauder’s business model is that of a traditional luxury cosmetics brand, but it is gradually evolving to integrate sustainability principles. The brand still relies on selling high-end skincare and makeup in new packaging. Estée Lauder’s core model continues to promote consumption of beauty products, and truly circular models (like package take-back for refilling, or subscription reuse services) are not yet in place.

Positively, the brand has removed parabens, phthalates, and other potentially harmful additives from key product lines. For example, the iconic Double Wear foundation is free of parabens, phthalates, sulfites, drying alcohols, and synthetic fragrance according to Estée Lauder. Across the board, Estée Lauder uses modern preservative systems like phenoxyethanol and ethylhexylglycerin, which are considered safe in low concentrations.

However, from a clean beauty perspective, some Estée Lauder products include ingredients flagged for either human or environmental health concerns. For instance, the Advanced Night Repair serum contains BHT (Butylated Hydroxytoluene) as an antioxidant. A popular Estée Lauder moisturizer has “Fragrance (Parfum)” listed among its ingredients. In makeup, the Pure Color Envy lipstick formula includes synthetic polymers (e.g. polyethylene and PET glitter) and lanolin/carmine from animal sources. It’s important to note that these ingredients are legally approved and deemed safe by scientific panels in the concentrations used, however many strict clean beauty standards avoid them entirely.

The company’s Supplier Code of Conduct explicitly outlines expectations for human rights, workers’ rights, and fair labor conditions in all operations and sourcing activities. To enforce these standards, Estée Lauder takes a risk-based approach to supplier management: it conducts regular audits and due diligence on high-risk suppliers and requires corrective action plans where issues are found.

While the company states it doesn’t test products on animals unless required by law, in reality Estee Lauder is sold in markets like mainland China where animal testing for cosmetic products has historically been mandated by regulators.

Estée Lauder has a strong legacy of community engagement and philanthropy, leveraging its brand for social good. The most prominent example is the Estée Lauder Companies’ Breast Cancer Campaign, founded in 1992 by Evelyn Lauder, which mobilizes over 150 countries each year to raise awareness and funds for breast cancer research.