Commitments

Drive environmental sustainability

1. Source renewable and sustainable materials whenever possible

1.1 Commitment: Source 100% certified physically segregated palm oil by 2020.
Progress: On plan. In 2012, Oriflame produced a foaming product with RSPO certified segregated sustainable palm kernel oil. We aspire to increase the use of certified physically segregated palm oil in products over the next few years to demonstrate our support for the RSPO. However, currently there is a limited amount of certified physically segregated palm oil materials available, making progress slower than we would wish.
1.2 Commitment: Promote sustainable palm oil by purchasing GreenPalm credits to cover 100% of our consumption.
Progress: Previously achieved / Ongoing. GreenPalm credits purchased to cover our full 2013 volume.
1.3 Commitment: Source 75% of wood fibre from credibly certified sources by 2015, 100% by 2020.
Progress: 2015 Target Achieved. With the support of the Rainforest Alliance we conducted a first supply chain analysis of the corrugated board purchased at our top 10 manufacturing and warehouse facilities. The results showed a more than 95% compliance with our paper commitment, most material being from recycled sources. In total, all paper and board surveyed in 2013 (catalogues, packaging cartons and corrugated board) therefore showed a compliance rate of 95%, well above the 2015 target of 75%. We will keep working to ensure that 100% of our paper is proven acceptable by our policy.
1.4 Commitment: Source 100% of catalogue paper from credibly certified origin by 2016.
Progress: On plan. For the third year running we conducted a supply chain analysis of our catalogue suppliers. During 2013, 94% of catalogue paper used was fully compliant with our paper commitment, i.e. sourced from a credibly certified source with an intact chain of custody (up from 84% during 2012).
1.5 Commitment: Source 75% of display packaging cartons and leaflets from FSC certified sources by 2013.
Progress: Achieved. The supply chain analysis of our packaging cartons and leaflets purchased during 2013 revealed that 92% of the material used was FSC certified, a significant increase from 53% during 2012 and well above the target of 75%. In total 96% was compliant with Oriflame’s general paper guidelines.
1.6 Commitment: Source 100% of display packaging cartons and leaflets from FSC certified sources by 2016.
Progress: New
1.7 Commitment: During 2014, investigate possibility to source more sustainable cotton.
Progress: New

2. Reduce emissions to air

2.1 Commitment: Reduce CO2 emissions from global Oriflame operations by 50% by 2020.
Progress: On plan. During 2012 total greenhouse gas emission from Oriflame’s operations decreased by 10% in both relative and absolute terms. Since the base year 2010, relative emissions are down 18%. Progress for 2013 will be published online by Q3 2014.
2.2 Commitment: Reduce CO2 emissions from factories by 20% by 2015.
Progress: On plan. We are continuously increasing our renewable energy share. At the Swedish and Polish production sites, 100% of electrical energy is sourced from certified renewable sources starting from January 2013. In addition, significant technical improvements have been implemented. Our Gross emission has decreased by 5% and Net emission has decreased by 42% in absolute terms since 2010.
2.3 Commitment: Reduce energy use in factories by 15% by 2015.
Progress: On plan. Energy use in absolute terms has decreased by 11% since 2010. Despite this, energy use per unit has increased by 2% since 2012. We are still working to meet the 2015 target.
2.4 Commitment: Increase renewable energy in factories to 70% by 2018. Long-term ambition to achieve 100% renewable energy in Oriflame owned buildings.
Progress: New. Currently 68% of total electrical consumption and 42% of total energy consumption at
Oriflame’s factories is renewable.

3. Reduce emissions to water

3.1 Commitment: Use only biodegradable cleansing ingredients in 100% of our Personal Care products.
Progress: Updated. Commitment has been rephrased with a more limited scope, unfortunately suitable bio­degradable alternatives are not always available for certain high performing hair care formulations.
3.2 Commitment: Start to phase out plastic micro beads in all new products from 2014.
Progress: New

4. Reduce solid waste

4.1 Commitment: Reduce waste disposed at all our factories by 10% by 2015.
Progress: On plan. Waste produced per unit has decreased by 17% since 2010, in absolute terms this represents a decrease of 37%.
4.2 Commitment: Send no waste to land-fill from our factories by 2020.
Progress: New. Oriflame’s two largest factories (OPP and OPS) have achieved zero waste to landfill during 2013, this represents approximately 90% of all waste produced at Oriflame’s manufacturing sites.
4.3 Commitment: Increase recycling of packaging by gradually introducing recycling facilities at our service centres worldwide.
Progress: Behind plan. In 2013, 90% of Oriflame’s offices and service centres were surveyed on recycling practices. Findings include that 30% of locations recycle at least three different materials. Most common materials are paper (60% of locations), carton (53%), plastic (31%) and glass (25%). The main reason not to recycle is the lack of infrastructure, as answered by 20% of respondents.

5. Reduce impact from Oriflame activities, events, project & facilities  

5.1 Commitment: Pursue LEED™ Green Building scheme certification for all new construction and major renovations and pursue environmental effectiveness on all our premises.
Progress: On plan. Oriflame’s new Global Distribution Centre in Noginsk, Russia, was awarded LEED™ silver certification during 2013. The manufacturing facility in the same location is in the process of being certified. This is also the case for our new facility under reconstruction in Roorkee, northern India.
5.2 Commitment: Reduce water use at all our factories by 10% by 2015.
Progress: On plan. Water consumption per unit has increased since 2010 due to a drop in units produced. In absolute terms a decrease of 16% since 2010 was achieved.

Logistics

Oriflame’s overall supply strategy is to move the sourcing of products and printing of catalogues closer to the current and future Group Distribution Centre facilities and major markets. The aim is to improve transportation routes and thereby reduce greenhouse gas emissions and energy consumption, a strategy that has been successful.

 The vast majority of the Oriflame’s shipments are conducted by sea and truck freight. The packaging and loading routines for ship containers and trucks are continuously being reviewed to optimise space usage, thereby reducing energy consumption.
The average number of pallets shipped in each truck and container have increased by more than 50 percent since 2010. When selecting road carriers the aim is to utilise Euro 4, 5 and 6 standard trucks wherever possible, thus reducing particle emissions. Oriflame also works hard to limit air shipments to the greatest extent possible.

Production sites and offices

Increasing the sustainability profile of Oriflame’s own facilities and operations is a key priority. The goal is to pursue LEEDTM Green Building scheme certification for all new construction and major renovations and pursue environmental effectiveness on all premises.

In 2013 the audit program, which was launched in 2012, continued to be rolled-out at internal production sites, warehouses and offices, focusing on energy efficiency and reducing greenhouse gas emissions. At all Oriflame’s production sites, there are detailed programs with the aims to reduce not only energy and greenhouse gas emissions but also waste and water consumption. Each of these areas is the subject of targets to be met.
In September 2013 the new Global Distribution Center in Noginsk, Russia, was awarded LEEDTM silver certification, making it one of the few industrial projects in Russia to gain such an independent certification. The production facility under construction at the same site is still in the process of being LEEDTM certified prior to completion.
A strategy for improving the environmental profile of all offices worldwide is implemented and includes the provision of manuals for all office managers and guidelines for employees regarding energy use, recycling and other sustainability tips. 

Water

During 2013 Oriflame conducted a study assessing the lifecycle impact of water withdrawl and on ecosystems impact for seven representative products. The results are being analysed and will be used to prioritise further work within this area.

Sustainable sourcing

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.

Paper

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 and folding box suppliers globally and data on use and statistics on sources are gathered on an annual basis to ensure progress. In 2013 focus was put on following-up compliance among  the Company’s main corrugated board suppliers, and the results showed that more than 95% of the material surveyed complied with the company’s guidelines.
The target of sourcing 75 percent of paper and board packaging and publications material from credibly certified or recycled origin was therefore achieved in 2013, two years ahead of schedule.

Palm oil

Oriflame uses palm oil as an ingredient in numerous cosmetic formulations. Since there are serious environmental pressures caused by the palm oil industry’s rapid expansion into eco-sensitive areas, the sourcing of sustainable palm oil continues to be a key focus area for Oriflame.
Since 2010 Oriflame has purchased GreenPalm credits covering 100 percent of its consumption, and the long-term goal is to source 100 percent physically segregated palm oil. In 2013, Oriflame’s palm oil approach resulted in a high score, 11 of 12 possible points, in WWF’s Palm Oil Buyers’ Scorecard, ranking companies on their palm oil sourcing practices.

Environmental Sustainability

Achieving environmental sustainability is a key goal of the sustainability strategy. Oriflame is continuously working to reduce its key impact areas; ensuring that raw materials used are sourced from renewable and sustainable materials whenever possible, that emissions to air and water are reduced, that waste is minimised and finally that the impacts from activities, events, projects and facilities are reduced.

The initial focus is on areas where initiatives have the most impact; however these goals apply across Oriflame’s value chain and the scope is gradually increased.

Commitments

Bring Beauty & Wellbeing through responsible products

1. Improve the sustainability profile of our products

 

1.1 Commitment: Drive continuous progress by ensuring that product categories improve sustainability profile
year-on-year.
Progress: New
1.2 Commitment: Develop a tool to drive sustainability improvements in product development by 2014.
Progress: New
1.3 Commitment: Continuously increase the use of post-consumer recycled (PCR) plastics in our cosmetic packaging materials.
Progress: On plan. PCR content is continuously being introduced in all new PET bottles and also gradually rolled-out in other tubes and jars. 

2. Focus on Innovation

2.1 Commitment: Launch at least one sustainable Oriflame product innovation annually, for example the innovative Ecobeauty range, from 2015.
Progress: New
2.2 Commitment: Launch a biopolymer packaging.
Progress: New
2.3 Commitment: Focus on innovation by increasing use of actives from plant biotechnology.
Progress: New

3. Focus on product ingredients and safety

3.1 Commitment: Continue sustainability review of ingredients used across our product portfolio. Review all cosmetic ingredients by 2015.
Progress: New
3.2 Commitment: Focus on ingredient impact and work to phase out prioritised ingredients from a safety, environmental or ethical perspective.
Progress: New. Currently fewer than 10 raw materials on the Sin 2.1 list (list of 626 chemicals identified by NGO ChemSec). These ingredients are being monitored.
3.3 Commitment: Continue to implement the Oriflame Product Safety Evaluation process ensuring a single global safety standard.
Progress: Updated. In 2013 there were no incidences of non-compliance with regulations and voluntary codes concerning the health and safety impacts of our Cosmetic or Wellness products. The safety evaluation process applies to 100% of our cosmetic and wellness products.

4. Market products that meet high social and ethical standards

4.1 Commitment: Respect animal welfare by never using cosmetic ingredients derived from dead animals or which cause harm or suffering to animals.
Progress: Previously achieved / Ongoing. Please refer to the text body for more details. 

Packaging

Oriflame’s key packaging materials consist of paper, plastics and glass. The Company is continuously working on initiatives to reduce the components’ environmental impacts, for example by selecting materials from renewable sources, by reducing the total materials used, making sure that as many packaging components as possible are recyclable and finally by gradually increasing the share of recycled materials. 

Product development and safety

For Oriflame, the safety and wellbeing of its consumers are crucial. All cosmetic products are formulated to be safe in accordance with the provisions of the European Cosmetics Regulation (EC No 1223/2009) and other major international regulations. In markets where regulations are less developed, Oriflame applies the European regulation requirements for safety as a minimum.

A step-wise approach to safety evaluation of cosmetic products is employed at Oriflame and performed throughout the product development process. First, Oriflame’s teams rigorously evaluate all new raw materials to ensure they meet our purity and quality requirements and are safe for use.
A safe concentration for each ingredient in each product type is then evaluated before the safety of each final product is confirmed by testing at independent specialised laboratories using human volunteers and non-animal testing methods. The safety evaluation process continues even after the product has been launched by actively collecting feedback from consumers and using it to further bolster product safety. 
The same stringent safety measures also apply to the wellness products. All ingredients in the Wellness by Oriflame range are of the highest food grade purity, fully approved internationally for use in food, and selected for optimum safety and efficacy.
Wellness products are formulated to comply with EU Regulation (EC No 178/2002), which lays down the General Principles and Requirements of Food Law and other related European legislation.
In addition to this, they are also formulated in accordance with global health authorities’ recommendations, including the World Health Organisation, the Institute of Medicine and the Nordic Nutrition Recommendations. To further ensure the safety of the range, products are evaluated by reputed Swedish experts in the field of medical science and nutrition.
In 2013 there were no incidences of non-compliance with regulations and voluntary codes concerning the health and safety effects of Oriflame’s cosmetic or wellness products during their life cycle in any market. 

Product development and environment

To successfully improve the environmental profile of Oriflame’s products, sustainability must be fully integrated into the entire product development process. When formulating new concepts, Oriflame strives to design innovative products that, where possible, use ingredients with a low environmental impact and are ethically sourced.

Many Oriflame products are inspired by nature, and the aim is to incorporate plant ingredients and actives in the product formulations. Materials from protected or endangered flora and fauna species are not used. All new cosmetic raw materials go through a sustainability review process, and scientific reports on environmental issues are continuously monitored. This enables the Company to take action and, where possible, phase out the use of certain ingredients that may have negative impact on the environment and replace them with alternatives with lower impact.
Oriflame is continuing to sell products under its Ecobeauty brand. The lessons learnt from developing Ecobeauty are now being used in the development of other Oriflame products. Oriflame views Ecobeauty as an innovation “laboratory” and a symbol of the Company’s wider commitments to implementing more sustainable business practices. 

Bring Beauty and Wellbeing through Responsible Products

Oriflame’s goal is to continuously improve the sustainability profile of all its products. The ambition is to launch at least one sustainability related product innovation annually.

The safety and sustainability profile of the ingredients are of the highest importance, and all ingredients are reviewed thoroughly. Developing products that meet the highest social and ethical standards will continue to be a priority

Create Opportunities to Improve People's Lives

The Business Opportunity for Oriflame Consultants empowers people to fulfil their own dreams. Oriflame is also working to ensure that the rights of people employed at Oriflame, as well as throughout the supply chain, are respected and that our workplaces are safe and rewarding.

In addition, through the Oriflame Foundation, a number of educational initiatives are supported, allowing children and young women to change their lives for the better.

Oriflame in brief

Founded in 1967 by two brothers and their friend, Oriflame is now an international beauty company selling direct in more than 60 countries worldwide. Its wide portfolio of Swedish, natural, innovative beauty products are marketed through a sales force of approximately 3.6 million independent consultants that are marketing our products around the globe.

Oriflame offers the leading business opportunity for people who want to start making money from  day one and work towards fulfilling their personal dreams and ambitions through its unique business concept - Make Money Today and Fulfil Your Dreams Tomorrow™.

Respect for people and nature underlie the company’s operating principles and are reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a Co-founder of the World Childhood Foundation. Oriflame Cosmetics is listed on the Nasdaq OMX Nordic Exchange.

Brief facts

• 1.5 billion Euros in annual sales
• Approximately 3.6 million Consultants
• 7900 employees
• A product range of approximately 1000 products.
• Co-founder of World Childhood Foundation.
• Global R&D centre with more than 100 scientists
• 5 own production units in Sweden, Poland, China, Russia and India
• Listed on the Nasdaq OMX Exchange since March 2004
• Operations in more than 60 countries of which 11 franchisees