Estée Lauder's Journey Towards a Sustainable Health Sector

The connection between personal care and health is becoming increasingly distinct, with consumers looking to brands to provide products that support their well-being.

The Estée Lauder Companies, a global leader in skincare, makeup, fragrance and hair care, aims to take advantage of this crossover.

The company, which achieved US$14.33bn in net sales in 2025 across approximately 150 countries, has detailed its approach to sustainable and health-conscious business practices.

ELC's Social Impact and Sustainability Report for the fiscal year 2025 outlines progress and sets new targets for 2030, highlighting a strategy that could have implications for the broader health and wellness sectors.

Environmental stewardship and public health

A key part of Estée Lauder's strategy involves reducing its environmental footprint.

According to the report, Estée Lauder is targeting a 50% reduction in absolute Scope 1 and 2 greenhouse gas emissions by 2030, from a 2018 baseline. It has already achieved a 37.6% reduction by fiscal 2025, thanks to its transition to electric vehicles and more sustainable office environments.

When it comes to Scope 3 emissions, Estée Lauder aims to reduce its emissions from purchased goods and services, upstream transportation, distribution and business travel by 60% per unit revenue by 2030.

ELC also reports it has sourced 100% renewable electricity for its direct operations for each year from fiscal 2020 to 2025, using carbon offsets to cover remaining emissions.

Water preservation, a critical component of public health infrastructure, is another key area. Estée Lauder surpassed its initial goal to reduce water withdrawal by 20% from a 2019 baseline, achieving a 41% reduction by fiscal 2025. A new target has been set to consistently reduce water withdrawal by 40% by 2030.

Biotechnology's role in product formulation

The role of science in creating safer and more effective products is a core focus for Estée Lauder.

Estée Lauder is increasingly using biotechnology to develop ingredients that align with its environmental principles, while delivering the high-performance experience consumers expect.

This approach mirrors trends in the pharmaceutical and health sectors, where bio-based solutions are becoming standard.

A key development in this area is the opening of Estée Lauder's BioTech Hub in Belgium in December 2024. The facility is dedicated to producing bio-based raw materials from sources such as plants, yeast and bacteria.

This method of production allows for the creation of nature-based material alternatives that can help to 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.”

Designing healthier retail environments

The goal of tackling emissions extends to Estée Lauder’s physical retail locations.

Through its Responsible Store Design programme, Estée Lauder is guiding its stores to optimise water and energy consumption in daily operations.

The programme encourages the use of healthier and more sustainable materials, such as replacing virgin materials with recycled and bio-based alternatives and using non-toxic paints and adhesives.

This focus on material health contributes to creating safer indoor environments for both employees and customers.

Core energy efficiency practices, including the use of LED lighting, are standard across its retail locations.

Furthermore, a global toolkit provides guidance on additional measures such as low-cost UV glazing for windows and recommendations for mechanical and lighting upgrades.

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.”