Beauty & Biotechnology: Sustainability at Estée Lauder

Estée Lauder Companies is one of the world’s leading manufacturers and retailers of skin care, makeup, fragrance and hair care products.

In 2025, it achieved US$14.33bn in net sales, supplying its products to consumers in approximately 150 countries across the world.

Estée Lauder has released its Social Impact and Sustainability Report, which reflects on its work during the fiscal year 2025.

Estée Lauder’s progress towards sustainability

Estée Lauder’s report outlines its sustainability goals and introduces new 2030 targets.

Its current 2030 goals include reducing absolute Scope 1 and 2 greenhouse gas emissions by 50% by 2030 from a 2018 base year.

In fiscal 2025, it has achieved a 37.6% reduction in these emissions, thanks to its transition to electric vehicles and more sustainable offices.

Its Scope 3 target is to reduce greenhouse gas emissions from purchased goods and services, upstream transportation and distribution and business travel by 60% per unit revenue by 2030.

For each year from fiscal 2020 to fiscal 2025, Estée Lauder has sourced 100% renewable electricity for its direct operations and purchased carbon offsets to cover its remaining emissions.

Estée Lauder aimed to reduce its water withdrawal from its direct manufacturing sites by 20% from a fiscal 2019 baseline, focusing on its sites with high water stress.

By fiscal 2025, it had a 41% reduction in water withdrawal, with its focus on water efficiency and implementing water management practices.

Its new goal is to reduce its water withdrawal by 40% consistently by 2030 compared with 2019.

New biotechnology solutions

Science and technology plays a vital role in the beauty industry, according to Estée Lauder.

It has been working on biotechnology solutions to help its beauty products support the environment and best reflect its core principles.

Its scientific partnerships help use the power of biotechnology to enhance its product experience and preserve the luxury feel its consumers expect, while reducing its environmental impact.

In December 2024, the company opened its BioTech Hub in Belgium, which focuses on producing bio-based raw materials derived from plants, yeast and bacteria.

The hub allows the production of nature-based material alternatives that help protect biodiversity and conserve natural resources.

Nancy Mahon, Chief Sustainability Officer at Estée Lauder Companies, says: “Looking ahead, I am inspired by the opportunities to deepen our impact, contribute meaningfully to the communities we serve and drive long-term, sustainable growth.

“Together, we will continue to lead with purpose, staying true to our shared vision of transformative innovation.”

Energy efficiency at retail locations

To address its emissions targets, Estée Lauder has developed a Responsible Store Design programme.

This helps stores identify opportunities to optimise their water and energy use and their day-to-day operations.

The programme focuses on thoughtful material selection, encouraging retailers to replace virgin materials with recycled and bio-based sources and to use non-toxic paints and adhesives.

Estée Lauder’s retail locations are using core energy efficiency practices such as LED lighting and they are provided with a global toolkit to help them take advantage of additional energy efficiency practices.

This includes low-cost solutions such as UV glazing for exterior windows and recommendations for mechanical and lighting improvements.

Stéphane De La Faverie, President and CEO of Estée Lauder Companies, says: “As we transform our company to better capture growth and drive profitability, we remain steadfast in our commitment to advancing environmental stewardship and social impact.

“From product development to packaging and distribution, we are consciously embedding sustainability into the way we operate, while supporting communities where we live, work and source.”

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