103 METRICS FY21 FY21 FY20 FY20 FY19 FY19 GREENHOUSE GAS (GHG) EMISSIONS (THOUSAND METRIC TONS CO 2 EQUIVALENT) Scope 1 15 24.1 * 2 7. 2 28.9 Scope 2 16 57.0 * 59.5 62.4 Scope 3 for measured categories, by category 1 7 ( FY21 data available in CY22 ) n/a 2,075.0 2,124.6 Category 1: Purchased goods and services n/a 1,473.3 1,486.6 Category 2: Capital goods n/a 130.5 167.9 Category 4: Upstream transportation and distribution n/a 4 4 7.9 435.2 Category 6: Business travel n/a 23.3 34.9 GHG intensity (normalized to net sales) 18 0.0 * 0.0 3.6 Reduction of emissions due to conservation and efficiency measures 19 1.0 * 0.8 0.3 % Progress towards Net Zero 100% 100% 39% *Metrics assured by PricewaterhouseCoopers LLP 15. Scope 1 emissions include direct emissions associated with fuel consumption for the operation of ELC owned and leased locations and vehicles, except emissions associated with refrigerants sources at retail, office, and certain regional distribution and innovation locations. Excludes brands acquired by ELC during or after fiscal 2021. The base year for Scope 1 and Scope 2 emissions is fiscal 2018. Global warming potential (GWP) factors are taken from the IPCC’s fifth Assessment Report. For additional information on emissions and emissions accounting standard used, see Management Assertion. 16. Scope 2 emissions include indirect emissions associated with purchased electricity, purchased steam, and district heating for the activities of all ELC owned and leased locations. Excludes brands acquired by ELC during or after fiscal 2021. Scope 2 refers to market-based Scope 2 emissions. For electricity purchased in the United States, emissions factors taken from the most recent EPA Emissions & Generation Resource Integrated Database (eGRID) are used to calculate GHG emissions. Province or territory-specific factors from Environment Canada and the Australian Government are applied to Canadian and Australian locations respectively. Country-specific emissions factors are applied at all other locations including utilizing residential mix emission factors for locations in the European Union. Fiscal 2021, Scope 2 location-based emissions totaled 54.0 thousand metric tons CO 2 equivalents. For additional information on emissions and emissions accounting standard used, see Management Assertion. 17. Measured categories include Categories 1, 2, and 4 as reflective of significant impact, with Category 6 reflecting stakeholder interest. Category 1 includes Raw Materials, Packaging, Third-Party Manufacturers (TPMs), and indirect spend; Category 2 includes only Capital Goods; Category 4 includes Inbound and Outbound Transportation and Distribution arranged for by ELC; Category 6 includes Air Travel, Hotel Stays, Rail, and Hire Car, but excludes out of pocket employee travel expenses. All other Scope 3 Categories are considered de minimis; please refer to ELC’s CDP Climate Response for additional information. Excludes emissions associated with brands acquired by ELC during or after fiscal 2020 and other acquisitions made prior thereto that have not yet been integrated into the relevant ELC systems. Full Scope 3 data for fiscal 2021 not available at time of publication due to limitations associated with the timing of suppliers’ release of value chain data. 18. GHG intensity is calculated based on Scope 1 and Scope 2 market-based emissions including renewables. 19. Total estimated annual savings from projects implemented in the reporting period. Total energy and GHG emission savings are attributed to the year in which projects launched in, regardless of timing during the fiscal year. Fiscal 2020 value restated due to updated emission factors. For additional information, see Management Assertion.
Estee Lauder Companies Sustainability Report Page 103 Page 105