Avon - The Company for Women - Corporate Responsibility

Greenhouse Gas Emissions and Climate Change

In 1994, Avon became one of the first beauty companies to focus specifically on greenhouse gas (GHG) emissions reduction. At that time, we joined the Environmental Protection Agency’s Green Lights program and retrofitted many of our U.S. sites with energy-efficient lighting.

Since then, the public discourse about GHG emissions and climate change has escalated, in particular emissions of carbon dioxide (CO2), and so has our commitment to stepping up our efforts around this critical issue.

Since we last reported on our commitment to reducing GHG emissions in our 2004 corporate responsibility report, we have been working diligently to understand the extent of our energy use and GHG emissions. The following charts depict our measured equivalent carbon dioxide (CO2e) emissions from 2002 to 2008. We are especially pleased to have achieved some 2012 goals in 2008, and therefore have set new objectives.

Avon’s GHG emission estimates are compiled by First Environment, an independent environmental management consultant that is a leader in the GHG field. First Environment is a signatory to the CERES principles (Coalition for Environmentally Responsible Economies) and also maintains ISO 14001 certification.

Status

For 2008, we are pleased to report that absolute greenhouse gas (GHG) emissions were reduced by 15.2% from 2007 levels at our global manufacturing locations. In 2007, emissions were 118,197 metric tons of CO2e and were reduced to 100,224 metric tons in 2008.

Our continued focus on energy efficiency and reducing carbon emissions throughout our global operations has helped achieved these results. Energy efficient lighting retrofits and new energy efficient chiller installations contributed substantially to the reductions.

Status

For 2008, we are pleased to report that total greenhouse gas emissions on an indexed basis (per unit produced) were reduced 15.4% from 2007 levels and 31.3 % from 2002 levels (which is Avon’s baseline year).

Status

In 2008, GHG emissions from our warehouse/distribution center locations were reduced 9% from 2007 levels on absolute basis. This totals a 13.5% reduction when combined with manufacturing emissions.

We have had good success reducing our global GHG emissions, and we will continue to focus on the following areas to achieve further reductions:

  • Green building design
  • Switching from fuel oil to natural gas
  • Energy conservation programs
  • Lighting retrofits
  • Software that automatically turns computers off at night
  • Energy-efficient equipment and computing systems

Avon has responded to the Carbon Disclosure Project (CDP) with full public disclosure regarding our GHG emissions for several years, and the current filing will be made available through CDP in late September 2009. Our latest response can be viewed at the CDP site. See also: Avon’s CDP6 response

See also: Avon Brazil recognized for project to reduce GHG emissions

Looking Ahead

Avon’s greenhouse gas (GHG) 2012 reduction target was exceeded in 2008, achieving a higher reduction level 4 years early. Our target was to reduce GHG emissions 25% per unit produced from 2002 levels by 2012, and we achieved a 31% reduction in 2008. In response, we have developed new goals and are committed to reducing GHG emissions an additional 10% from 2008 levels by 2012. This represents a total GHG emission reduction of over 40% per unit produced from 2002 levels at our global manufacturing locations.

Avon is also undertaking additional initiatives to address greenhouse gas emissions and climate change:

Fleet emissions: In 2009, we have worked with our external GHG consultant to estimate emissions from our global fleet of vehicles (over 6,000 cars). This required a significant commitment of time and resources. For 2008, we estimate our fleet emissions to be approximately 40,411 metric tons. Now that we have established a baseline metric, we will work with our fleet providers to reduce our fleet emissions over time.

Administrative offices: We are in the process of calculating GHG emissions from our administrative offices, which is a small percent of our total scope 1 and scope 2 emissions. This information will be shared once it becomes available, and will provide a baseline against which to measure reduction goals and achievements.

Air travel: In 2009, we have worked with our consultant to estimate GHG emissions from air travel. We estimate 2008 emissions to be approximately 14,800 metric tons CO2 for air travel. Internally, we are focused on reducing 2009 air travel emissions from our 2008 baseline through a variety of strategies, including the use of "virtual meeting" technology and other alternatives to traditional business travel models.

Green building design: We are focused on reducing our carbon footprint by designing and constructing “green” buildings that include energy efficiency. Our newest and largest distribution warehouse in Zanesville, Ohio will be a LEEDS certified building (Gold level certification is target), and our administrative office in Northampton, UK received a UK BREEAM rating of "very good."

By installing energy efficient features in the Zanesville building (lighting, equipment, solar hot water) we are able to reduce energy consumption by over 35%, avoiding 6,900 metric tons of greenhouse gas emissions (CO2e) annually. In addition, 50% of the emissions from estimated annual power consumption will be offset through the purchase of renewable energy credits.

Furthermore, we are reducing water consumption at the Zanesville site by over 65% (approximately 900,000 gallons of water saved annually) through rainwater harvesting and water saving plumbing fixtures. Click here for more details about Zanesville and other Avon Green buildings around the world, including one planned for Brazil and the UK office.

Logistics: We continue to focus on reducing Scope 3 emissions. In Brazil, our logistics team, has worked closely with the delivery service providers who deliver Avon products within the country. Utilizing new technologies, we have been able to optimize the truck routes to reduce greenhouse gas emissions. This project has allowed us to avoid an estimated 12, 700 metric tons of greenhouse gases annually. We plan to use this successful approach in other Avon markets around the world to achieve even more Scope 3 greenhouse gas emission reductions.

In 2008, Avon operations in Brazil received an award for this project from a well-known Brazilian organization. Click here for more details about the Brazilian project.

The Avon European logistics team is focused on reducing greenhouse gas emissions from trucks transporting product and materials from site to site. By optimizing the loading of the vehicles, 370 metric tons of GHG were avoided in 2008 compared to 2007 levels, and through June 2009, 670 metric tons of estimated GHG emissions have be avoided compared to 2008 levels.