Climate change

THE ISSUE

Climate change is one of the most serious issues facing the world. During the coming years, it will have a growing impact on society in general and on businesses, including Oriflame. Our business operates in some of the regions of the world most exposed to climate risk. Our operations impact on the world’s climate in a multitude of ways; through manufacturing, transportation and travel.

We measure and report on our greenhouse gas emissions annually via the Carbon Disclosure Project and have built an understanding of where our greatest impacts lie. We are now taking action to reduce our carbon footprint through a number of initiatives across the business.

COMMITMENT	PROGRESS
Greenhouse Gas Emissions: Reduce emissions from our factories by 20 % by 2015 (per unit produced based on the 2010 baseline). During 2011, present new greenhouse gas reduction targets with a wider scope than current manufacturing targets. Reduce greenhouse gas emissions from global Oriflame operations by 50% by 2020 (relative to turnover, 2010 baseline).	On track. Greenhouse gas emissions per unit increased slightly due to a drop in units produced. In absolute terms, a decrease of more than 5% was achieved. Completed. During 2011, Oriflame took the decision to adopt a new carbon reduction target that covers all offices, warehouses and manufacturing sites, as well as travel and transportation. New.
Energy Use: Reduce energy use at our factories by 15% by 2015 (per unit produced based on the 2010 baseline).	On track. Energy use per unit increased slightly due to a drop in units produced. In absolute terms, a decrease of more than 5% was achieved.
Travel: By year-end 2011, an online communication tool will be rolled out to all office employees to help reduce travel.	On track. An online tool has been rolled out to all relevant employees. Training will continue on an on-going basis to ensure usage is optimised.
LEED certification: Reduce future greenhouse gas emissions at our new facilities by pursuing LEED green building scheme certification for all our new production facilities.	On track. We are currently attempting to LEED-certify the Noginsk Facility under construction outside Moscow.