Sustainable sourcing

The issue

Sourcing of raw materials is of fundamental importance to Oriflame. As a company that prides itself on the use of natural ingredients, the Company is taking action to better manage natural resources and significantly lower its ecological footprint.

The life-cycle assessment study revealed that a large proportion of the environmental impact of Oriflame’s products occurs beyond the direct scope of the Company’s operations. Sourcing of raw materials, such as paper and palm oil is therefore a critically important impact area.

COMMITMENT	PROGRESS
Palm oil: Purchase all our palm oil from certified sustainable sources, initially through the purchase of green palm credits and ultimately through certified segregated sources.	On track. Green palm credits purchased to cover our full 2011 volume. Oriflame is an active memeber of the RSPO and continues to focus on sourcing segregated sustainable palm oil.
Paper: Source 75% of the wood fibre used in our publications and our paper and board packaging from credible certified sources and/or recycled origin by 2015. By 2020, our goal is 100%.	On track. After a baseline analysis of our catalogue suppliers with the help of the Rainforest Alliance, our suppliers reported that approx. 80% of their paper is from certified sources. According to definitions in our paper commitment, 55% of our paper is actually compliant and we are on track towards our 2015 goal. We keep working to ensure that all our paper is proven acceptable by our policy with intact chain of custodies.
Animal Welfare: Never use ingredients in our cosmetics formulations derived from dead animals or which cause harm or suffering to animals.	On track.
Packaging: By year-end 2011, all newly specified cosmetic display packaging cartons and leaflets will be FSCcertified. Source 75% of all our display packaging cartons and leaflets from FSC-certified sources by 2013.	Completed. All new cartons now specify FSC-certified cardboard. Cartons will start to be labelled with the FSC logo during 2012. New.

Use of palm oil

Oriflame uses palm oil as an ingredient in numerous cosmetic formulations. Palm oil contributes to the economic development of the countries where it is produced. Nonetheless, there are serious environmental pressures caused by the alm oil industry’s rapid expansion into eco-sensitive areas. It is vital that production and use of palm oil is onducted in a sustainable manner based on economic, social and environmental viability. Oriflame participates in the Round Table on Sustainable Palm Oil (RSPO) and has made a commitment to buying all of the palm oil consumed in the Company’s products from certified sustainable sources. On the way to achieving this goal, Oriflame helps to fund sustainable palm oil production through the purchase of Green Palm ertificates covering 100 percent of its total palm oil consumption. In 2011, Oriflame’s palm oil approach resulted in a high score, 8.5 of 9 possible points, in WWF’s Palm Oil Buyers’ Scorecard, ranking European companies on their palm
oil sourcing policies.

Paper guideline

Paper and wood-based products are Oriflame’s number one raw material, used in packaging materials as well as in publications, especially catalogues. In 2010, Oriflame started working in collaboration with the Rainforest
Alliance, a global conservation organisation, to develop a responsible
paper sourcing strategy and set ambitious sustainability targets. A paper guideline has been rolled out to all Oriflame catalogue suppliers globally and, during 2011, data on complete catalogue paper use and statistics on sources were gathered. The next step is to implement the guidelines for main corrugated board suppliers. The ultimate aim is to ensure that all Oriflame paper and board packaging and publications are sourced from credibly certified sources and/or from recycled origins.
Paper and the Rainforest Alliance