83 SUSTAINABILITY PRODUCT FORMULATION ISO 16128: % NATURAL AND % NATURALLY DERIVED Formulating against external standards can be a helpful way to align to well-established frameworks that are recognized and understood by others. One example is the International Standards Organization (ISO), which provides guidance for cosmetic formulators on how to calculate the percentage of natural and naturally derived ingredients in their products through the ISO 16128 standards. We have developed and implemented standard operating procedures to formulate using these standards. We have also developed a self-service formulation tool and training program for our formulators. By the end of fiscal 2021, we had scored more than 6,200 formulas against the ISO 16128 standards. Our brands have been engaged with this process, with Aveda providing the groundwork for developing and leveraging these standards across the Company. Our other brands are leveraging this work and exploring the use of ISO 16128 for ingredient selection and formulation strategy. For example, in fiscal 2021, the Estée Lauder brand launched its Supreme Bright collection, now formulated with 99% naturally derived Beautyberry Extract and Vitamin C. GREEN CHEMISTRY AND OUR VALUE CHAIN We continuously seek to advance our efforts for the benefit of our consumers and the business. Our green chemistry work to-date has been focused on the formulations and ingredients over which we have direct control. Our approach has been to gain a thorough and strategic understanding of our own impacts before expanding into areas beyond our immediate sphere of influence. At the same time, we are committed to working with our suppliers, Third-Party Manufacturers, and newly acquired businesses to inspire their work and promote transparency within the personal care products industry. To this end, in fiscal 2021, we began engaging with suppliers to understand how to better incorporate all ingredients into our Green Score program. SCIENTIFIC ADVISORY BOARD We embrace a collaborative approach to green chemistry and work alongside other experts to advance the application of green chemistry principles across industries. In fiscal 2021, we established a scientific advisory board to ensure that we benefit from, and contribute to, cutting-edge science from around the world. The board is composed of external experts from academia representing key global regions, including China, and with a reputation of excellence in green chemistry. The scientific advisory board meets annually to provide feedback on our green chemistry methodology, research, and strategy. The creation of the board is part of our overall commitment to rigorous scientific credentialing, which also encompasses publishing in peer-reviewed journals, partnering with universities, and filing for patents (where appropriate). MOVING TO BIO-BASED BUTYLENE GLYCOL Butylene glycol (BG) is a clear, odorless liquid that helps ensure product stability over a wide range of temperatures, improves application, and provides moisturizing properties. We use BG across our portfolio, in both skin care and makeup products. In many cases it requires more energy to create synthetically derived BG than bio-based BG, due to increased reliance on natural gas during production processes. Synthetic BG also utilizes petroleum-based solvents, while bio-based BG is primarily derived from natural ingredients, such as corn. Bio-based BG offers a more favorable green chemistry profile. As part of our commitment to green chemistry, we’ve partnered with Genomatica, an innovative ingredient supplier, who has created a one-step fermentation process that converts renewable plant sugars into a high-purity, bio-based BG. Genomatica won a U.S. Environmental Protection Agency Green Chemistry award in 2020 for its pioneering fermentation techniques. In fiscal 2021, we began to use this bio-based BG in Dr. Andrew Weil for Origins ™ Mega Mushroom Treatment Lotion, one of the brand’s most popular products. We will continue to innovate with this new ingredient during our developmental process for products that use BG.