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Estee Lauder

OVERALL

Owned
USA
Rating
Criticisms

Personal care product manufacturer

Founded in 1946, today their products are available in over 135 countries. The founding Lauder family owns 87% of the company stock.

Estee Lauder Companies Inc   USA     website   email   facebook   twitter

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
Estee Lauder Companies Inc
Environment CDP Climate Change Score of A
In 2020, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of A.
Source: CDP (2020)
Social CDP Water Security Score of A-
In 2020, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security Score of A-.
Source: CDP (2020)
Environment CDP Forests Score of B+
In 2020, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts towards removing commodity-driven deforestation and forest degradation from its direct operations and supply chains. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Forests Score of B+.
Source: CDP (2020)
Social 100% on Corporate Equality Index
This company is listed as having best practice on a report card on lesbian, gay, bisexual and transgender equality in corporate America.
Source: Human Rights Campaign (2020)
Business Ethics 61.9% in Newsweek Green Ranking 2017
This company received a score of 61.9/100 in the Newsweek Green Ranking 2017, which ranks the world's largest publicly traded companies on eight indicators covering energy, greenhouse gases, water, waste, fines and penalties, linking executive pay to sustainability targets, board-level committee oversight of environmental issues and third-party audits. Ranking methodology by Corporate Knights and HIP Investor.
Source: Newsweek (2017)
Environment Palm oil scorecard - RFUK
Ethical Consumer has ranked companies' practices and policies in relation to their palm oil sourcing for the Rainforest Foundation/Ethical Consumer palm oil campaign. This company received a 'red' rating.
Source: Rainforest Foundation UK (2016)
Environment Microbeads scorecard
In 2016 Greenpeace East Asia ranked the world's 30 biggest personal care companies on their commitment to eliminating microbeads from their personal care products. The scorecard was based on four main criteria: commitment & transparency, definition, deadline and global application. This company was one of the lowest ranked. Microbeads are not retained by wastewater treatment and end up in the ocean where they are a threat to the marine environment.
Source: Greenpeace (2016)
Social 2.9% in conflict minerals rankings
As You Sow's 2019 report, Mining the Disclosures, is a deep analysis of 215 companies' human rights performance in relation to sourcing conflict minerals from the Democratic Republic of the Congo (DRC). This company's score was 2.9% (Weak).
Source: As You Sow (2019)
Animals Animal Testing
This company appears on PETA's (People for the Ethical Treatment of Animals, USA) 'Companies That Do Test On Animals' list, signifying that they manufacture products that are tested on animals at some stage of development.
Source: PETA (2020)
Environment Deforestation ranking
CDP's 2019 Consumer Deforestation Report 'No wood for the trees' analyses action against deforestation by 22 consumer goods companies by scale and commodity use. Estee Lauder ranked 18th of the 22 companies.
Source: CDP (2019)
Environment 27% in Forest 500 Rankings
The Forest 500 identifies, ranks, and tracks the governments, companies and financial institutions worldwide that together could virtually eradicate tropical deforestation. Rankings are based on their public policies and commitments and potential impacts on tropical forests in the context of forest risk commodities (palm oil, soy, beef, leather, timber and paper). This company received a score of 27%.
Source: Forest 500 (2020)
Business Ethics CEO Pay Ratio of 697:1
In 2019 the median pay for a worker at this company was US$30,733. The CEO was paid 697 times this amount. Exorbitant CEO pay is a major contributor to rising inequality. CEOs are getting more because of their power to set pay, not because they are increasing productivity or possess specific, high-demand skills. The economy would suffer no harm if CEOs were paid less (or taxed more). In contrast, the CEO-to-typical-worker compensation ratio was 20-to-1 in 1965 and 58-to-1 in 1989.
Source: AFL-CIO (2020)
Business Ethics Tax avoidance
This company scores Ethical Consumer's worst rating for the likely use of tax avoidance strategies, and has at least two high risk subsidiaries in tax havens.
Source: Ethical Consumer (2018)
Business Ethics Price fixing in Greece
In 2017 Greece's competition watchdog fined six leading cosmetics firms, including Christian Dior, Estee Lauder and L'Oreal 19 million euros for distorting competition. This company's Greek branch was fined 5.4 million euros.
Source: news article (2017)
Environment Use of plastic microbeads
This company uses microbeads in some of its personal care products. These particles are not retained by wastewater treatment so end up in the ocean. While microbeads aren't thought to be a health hazard to consumers, they are a threat to the marine environment.
Source: Beat the Microbead (2014)
Business Ethics Nanoparticles in cosmetics
Testing commissioned by Friends of the Earth Australia found nanoparticles in foundations and concealers sold by Estee Lauder.
Source: FOE (2009)
Business Ethics Excessive CEO pay
As You Sow's 2021 report, 'The 100 Most Overpaid CEOs', reveals the 100 most overpaid CEOs from USA's 500 largest public companies (as determined by the S&P 500 list). This company's CEO, Fabrizio Freda came in at number 37 on the list, having been paid US$21,435,428 in 2020. According to the report, "Most CEOs have come to be grossly overpaid, and that overpayment is harmful to the companies, the shareholders, the customers, the other employees, the economy, and society as a whole."
Source: As You Sow (2021)
Business Ethics Price fixing
In 2005, Estee Lauder and other major cosmetics manufacturers and retailers announced they would give away $175 million in products to settle a class-action lawsuit accusing the companies of price fixing. [Listed under information due to age of court date]
Source: Green America (2005)
Business Ethics Price fixing in France
In Jan 2012 a Paris appeals court upheld a 40 million euro fine imposed in 2006 by the French competition watchdog, which said the companies involved had reached illicit agreements on price fixing, enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance. Thirteen leading perfume and luxury goods companies were fined.
Source: news article (2012)
Environment Climate action commitments
As listed on the We Mean Business website, this company has committed to the following climate action initiatives: commit to 100% renewable power.
Source: We Mean Business (2017)
Social Gender equality
This company appears on the 2021 Bloomberg Gender-Equality Index, signifying a commitment to supporting gender equality through policy development, representation, and transparency.
Source: Bloomberg (2021)
Social Action on mica mining in India
This company claims to source less than 10 per cent of its mica from India, but was working with a local community organisation to eliminate child labour. Estee Lauder has partnered with Indian NGO Bachpan Bachao Andolan (BBA) since 2006, to promote access to education as an approach to work towards the elimination of child labour in mica-sourcing communities.
Source: SMH (2014)
Business Ethics Circular Economy 100 member
This company is a member of the Circular Economy 100 (CE100) Network, a multi-stakeholder platform run by the Ellen MacArthur Foundation. The CE100 is the world's leading circular economy network, and facilitates market making by providing collaborative and pre-competitive opportunities which bring together business, innovators, cities and governments, universities, and thought leaders.
Source: Ellen MacArthur Foundation (2019)
Business Ethics GC3 member (Green Chemistry)
This company is a member of the Green Chemistry and Commerce Council (GC3), a business-to-business forum that advances the application of green chemistry and design for environment across supply chains. It provides an open forum for cross-sectoral collaboration to share information and experiences about the challenges to and opportunities for safer chemicals and products.
Source: GC3 (2019)
Business Ethics Sustainable Brands member
This company is a Bronze Member of the Sustainable Brands Network, the leading peer to peer, learning and networking group designed to support brands in meeting their sustainability goals and ultimately become those leaders of the next sustainable economy.
Source: Sustainable Brands (2018)
Environment Palm oil scorecard - WWF
The WWF Palm Oil Buyers Scorecard 2019 assesses 173 companies on the commitments they have made, and the actions they have taken, to ensure that there is no destruction of nature including no deforestation along their supply chains; and support a responsible and sustainable palm oil industry beyond their own supply chain. This company is rated 'middle of the pack' with a score of 14 out of a possible total of 22.
Source: WWF Palm Oil Buyers Scorecard 2019 (2019)
Social Modern Slavery statement
California, the UK and Australia have all enacted legislation requiring companies operating within their borders to disclose their efforts to eradicate modern slavery from their operations and supply chains. Follow the link to see this company's disclosure statement.
Source: Modern Slavery Registry (2016)
Social Skin Deep hazard scores
Skin Deep is an online safety guide to cosmetics and personal care products and their potential hazards and health concerns, with over 75,000 products rated from 1 (low hazard) to 10 (high hazard).
Source: Environmental Working Group (2019)
Business Ethics Political boycott
Call to boycott by BDS due to involvement in Israel. [This assessment has not been used in calculation of ratings].
Source: BDS (2009)
Business Ethics OpenSecrets.org profile
OpenSecrets.org tracks the influence of money on U.S. politics, and how that money affects policy and citizens' lives. Follow link to see this company's record of political donations, lobbying, outside spending and more.
Source: Open Secrets (2014)
Business Ethics 51.1% at JUST Capital
JUST Capital polls Americans every year to identify the issues that matter most in defining just business behaviour. For their 2021 rankings the public identified 19 issues, which are organised under the headings Workers, Communities, Customers, Shareholders and Environment. JUST Capital then define metrics that map to those issues and track and analyse the largest, publicly traded U.S. companies. This analysis powers their rankings, in which this company ranked 393th of 928 companies, and 6th of 10 Personal Products companies.
Source: JUST Capital (2020)
Business Ethics 52/100 S&P Global ESG Score
This company received an S&P Global ESG Score of 52/100 in the Personal Products category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 7 Feb 2021). The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices.
Source: S&P Global (2021)

> About the Icons

Company Details

Type Public company
Founded 1946
Revenue 14.3 billion USD (2020)
Employees 48,000 (2020)
Subsidiaries Estee Lauder Pty Ltd 

Beauty products

Brands marketed in Australia: Estee Lauder, Aramis, Aveda, Clinique, Lab Series Skincare for Men, Tommy Hilfiger Toiletries, MAC, Kiton, La Mer, Bobbi Brown, Donna Karan Cosmetics, Jo Malone, Michael Kors Beauty, American Beauty, Flirt!, good skin, Grassroots, Sean John Fragrances, Missoni Profumi, Tom Ford Beauty.


Aveda Corporation 

Beauty products manufacturer

Aveda was bought by Estee Lauder in 1997.


  - Aveda Pty Ltd 

Cosmetics


BECCA Inc 

Cosmetics

Founded in Australia in 2001 by Rebecca Morrice Williams. BECCA manufacture in Germany, Australia, the USA and soon Italy. Their products sell in 23 countries. One of a handful of Australian cosmetics companies who have had success overseas (like Aesop, Jurlique and Bloom). Acquired by Estee Lauder in 2016, who announced the brand would be discontinued in Sept 2021 after Covid-19 related struggles.


Too Faced Cosmetics LLC 

Cosmetics

Founded by Jerrod Blandino and Jeremy Johnson in 1998, and acquired by Estee Lauder for US$1.45 billion in 2016.


Deciem Inc (76% owned) 

Beauty products

Founded in Canada in 2013, today they own and operate more than 10 beauty brands. Estee Lauder acquired a 29% stake in 2017, which it increased to 76% in 2021.

Contact Details

Address 767 Fifth Ave, New York, New York, USA
Website www.elcompanies.com

Products / Brands

Estee Lauder Australia
Aramis Fragrances
Bobbi Brown Cosmetics
Clinique Cosmetics
Clinique Skin Care
DKNY Fragrances
Estee Lauder Cosmetics
Estee Lauder Fragrances
mac Cosmetics
Michael Kors Fragrances
Missoni Fragrances
Smashbox Cosmetics
Tom Ford Beauty Fragrances
Tom Ford Beauty Cosmetics
Tommy Hilfiger Fragrances

Aveda Australia
Aveda Cosmetics
Aveda Skin Care

BECCA Cosmetics
Becca Cosmetics

Too Faced Cosmetics
Too Faced Cosmetics

Deciem (76% owned)
The Ordinary Skin Care


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