Greenhouse gas (GHG) emissions are one of the major causes of rising global warming, and the companies from the consumer sector including FMCG, retail, packaging, food, and beverages account for a significant amount of the global emissions. CO2, Methane & NOx gases form a major part of greenhouse gases released from Fossil Fuels such as gas and oil. Due to rising GHG emissions from companies, it became important among major contributing sectors to report gas emissions during their operations.
Companies from the consumer sector are under increasing pressure to reduce their carbon footprint. Consumers are becoming more aware of excess carbon dioxide emissions' detrimental environmental effects. Their consumption behavior changes due to this, and they take an active interest in sustainability issues.
The Estee Lauder Companies Inc (Estee Lauder) is a manufacturer, marketer and distributor of personal care products. The company offers makeup, hair care, fragrance and skin care products. Estee Lauder markets products under various brand names such as Estee Lauder, Aramis, Origins, Bobbi Brown, Aveda, Clinique, Darphin, Dr. Jart+, Editions de Parfums Frederic Malle, Estée Lauder, and GLAMGLOW, among others.
Total GHG emissions (Scope 1 & 2) of Estee Lauder in fiscal 2021 were 81.1 thousand tonnes of CO2 equivalents, a decrease of 6% from fiscal 2020. Estee Lauder has achieved net zero emissions in its direct operations (Scope 1 & 2) in fiscal 2020 in line to limit global warming to 1.5 degrees Celsius.
GHG emissions are generally classified into Scope 1,2 & 3 emissions. Scope 1 includes direct GHG emissions from stationary fuel combustion and refrigerant gases. Scope 2 encompasses indirect GHG emissions from the on-site generation and purchase of electricity. Scope 3 involves all other indirect GHG emissions in Estee Lauder’s value chain.
In fiscal 2021, Estee Lauder’s Scope 1 emissions were 24.1 thousand tonnes of CO2eq, and Scope 2 emissions were 57 thousand tonnes of CO2eq. Estee Lauder’s Scope 3 emissions were 2,075 thousand tonnes of CO2eq in fiscal 2020. The company will disclose Scope 3 emissions for fiscal 2021 in 2022.
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