Better Health for All

The company's core products, prestige skincare, makeup, fragrance, and hair care, have no significant positive or negative health impact. The company demonstrates exceptional mental health programs, with Jo Malone London's partnership with UNICEF funding mental health and psychosocial support programs that have reached over 47 million children and caregivers globally.

Comprehensive well-being benefits are offered to global employees, including 10 free mental health counseling sessions per topic per year, and mental health app offerings were expanded in fiscal 2025. DECIEM also pledged C$1 million over five years to the Centre for Addiction and Mental Health (CAMH). Regarding health externalities, the company's partnership with Plastics for Change has diverted over 5.2 million pounds of plastic from waterways. The company has achieved 5 consecutive years of carbon neutrality for Scope 1 and 2 emissions, sources 100% renewable electricity for direct operations, and diverted 99.8% of waste from landfills in 2024. In healthcare workforce support, Clinique partnered with the Skin of Color Society Foundation for a scholarship program providing financial support and mentorship to a projected 100 medical students over three years to broaden access to dermatology. The company exhibits excellent risk transparency by publishing an ingredient glossary on its corporate website and for 14 brands, and launched a privacy page in fiscal 2024. Excellent healthcare data responsibility is demonstrated through a data privacy and cybersecurity program, global Privacy Principles, and a dedicated privacy page launched in fiscal 2024. The company's products do not have addiction potential, and it is not a pharmaceutical or food company, making those KPIs not applicable.

Fair Money & Economic Opportunity

Estée Lauder's core business is cosmetics, not financial services. The company does not offer lending, deposit, or other financial products to consumers, rendering most KPIs related to financial services not applicable. While the company promotes economic opportunity through supplier diversity initiatives, doubling spending with Black-owned businesses to $43 million by fiscal year 2022

and increasing spending with women-owned businesses to $118 million by fiscal year 2022, these do not align with the specific financial product definitions of the inclusion initiatives KPI. Additionally, over $11.8 million was distributed to racial and social justice organizations by June 2022.

Fair Pay & Worker Respect

In 2023, a BBC documentary uncovered child labor practices in Egyptian jasmine farms supplying Estee Lauder, which the company is investigating and addressing

. Estée Lauder has also been subject to over $19 million in penalties for employment offenses, including wage and hour violations, since 2000 . In 2018, the company settled a parental leave discrimination lawsuit for $1.1 million with the EEOC and revised its policy to offer 20 weeks of paid leave to all parents . On a positive note, Estée Lauder achieved 99.2% pay equity for women compared to men in comparably positioned roles across select sectors, including research and development, in 2023 . The company also received a perfect score of 100 on the Human Rights Campaign Foundation's Corporate Equality Index for LGBTQ+ workplace equality for the 2023-2024 year, marking its eighth consecutive recognition .

Fair Trade & Ethical Sourcing

Estée Lauder has taken several steps related to fair trade and ethical sourcing. The company achieved sourcing at least 95% of its palm-based ingredients from Roundtable on Sustainable Palm Oil (RSPO) certified physical supply chains in 2023, two years ahead of its 2025 target.

In 2023, spending with Black-owned businesses increased by 120% to $44 million, and $162 million was spent with women-owned businesses. By June 30, 2021, the company had purchased over $217 million in goods and services from diverse and small-owned suppliers and committed to doubling spending on Black-owned businesses over three years, creating a dedicated leadership role. Estée Lauder published a corporate ingredient glossary featuring over 100 key ingredients. It piloted blockchain tracing for Madagascan vanilla with over 450 smallholder farms. The company implemented a Supplier Code of Conduct and supplier risk assessments. It supports smallholder farmers in Indonesia with education on sustainable farming practices, including RSPO certification. It launched a financial-resilience training program for 1,000 women in Ghana's shea supply chain, with 98% to 100% adopting financial tools. In 2020, Estée Lauder was recognized by EcoVadis for excellence in sustainable procurement.

Honest & Fair Business

Estée Lauder achieved a perfect score on the 2023-2024 Corporate Equality Index by the Human Rights Campaign Foundation for the eighth consecutive year

, recognizing its commitment to LGBTQ+ workplace equality. However, the company faces a lawsuit filed in March 2025 , alleging it misled shareholders about its reliance on "daigou" resellers in China. Shareholders claim the company failed to disclose the negative impact of a Chinese government crackdown, which began in January 2022 , until November 2023 . This alleged failure led to a 19% stock value drop , erasing approximately $8.7 billion in market value . A U.S. District Judge allowed this lawsuit to proceed . Additionally, in December 2023 , an investigation was announced into potential violations of federal securities laws , focusing on whether the company misled investors regarding market demand and inventory levels, particularly after lowering its financial outlook for fiscal 2023 .

Kind to Animals

The Estée Lauder Companies states it eliminated animal testing more than 30 years ago and does not test its products on animals or ask others to do so on its behalf.

However, it acknowledges selling products in countries where animal testing is legally required. As of 2023, the company is not certified cruelty-free by third-party organizations like Leaping Bunny or PETA, and no third-party humane certifications have been verified for its operations. The company is a longtime member of the Human Toxicology Project led by Humane Society International and has partnered with Cruelty Free International and Humane Society International to demonstrate alternatives to animal testing and promote legislative changes. It supports legislative and regulatory efforts to modernize and reform cosmetics regulation globally and encourages leaders to embed cruelty-free measures in UN Sustainable Development Goals. For wildlife conservation, the company pledged £500,000 over five years to Revere for habitat restoration in the U.K. , partners with Conservation International to conserve high-carbon forests , and its Origins Green the Planet Fund has planted over 2.3 million trees.

No War, No Weapons

The Estée Lauder Companies Inc. operates as a global manufacturer and marketer of prestige beauty products, with no evidence of revenue derived from arms or defense contracts. The company maintains a neutral stance on direct military engagement, as indicated by its policy of not offering military discounts.

There is no evidence of the company having exposure to controversial or banned weapons. While Ronald Lauder, a former CEO, had a past government role in defense and made personal donations of historical arms , these are not company activities. The company committed $1 million through its foundation for Ukraine relief efforts and partners with the Kailash Satyarthi Children's Foundation to combat child labor in the mica mining industry, establishing over 290 Child Friendly Villages. The company's 2023 lobbying expenditures were $400,000 , but the allocation towards arms-control legislation is not specified.

Planet-Friendly Business

The company has achieved carbon neutrality in Scope 1 and Scope 2 greenhouse gas emissions and utilizes 100% renewable electricity globally in its direct operations, generating over 4,729 megawatt hours of solar energy from on-site arrays.

It diverts 99.8% of industrial waste from landfills, achieving zero industrial waste-to-landfill for four consecutive years. Water withdrawal has been reduced by 23%. Furthermore, 71% of its packaging is recyclable, progressing towards a 2025 goal of 75-100%, and 95% of palm-based ingredients are certified sustainable, meeting RSPO standards ahead of the 2025 deadline. The company also launched a Responsible Store Design program.

Respect for Cultures & Communities

Estee Lauder has established four formal partnerships with indigenous or local community groups, including a strategic partnership with the Kutkabubba Aboriginal Community

, a collaboration with the Tribal Link Foundation , and partnerships with Conservation International and the American Indian College Fund . The company also engages at least one indigenous-owned supplier, Dutjahn Sandalwood Oils . However, Estee Lauder has faced criticism for two cultural appropriation incidents: the use of the brand name "Indigenous" for an Aveda product line in 2023 and "Geisha Chic" for a highlighter shade in 2019 . In response to these incidents, the company renamed the product line or recalled the product and issued apologies following public backlash , demonstrating reactive responses to cultural incidents.

Safe & Smart Tech

Estée Lauder has faced significant cybersecurity and ethical AI challenges. In July 2023, a cyber incident led to the exfiltration of 261GB of internal, worker, supplier, and customer data, with 130GB unencrypted, causing business disruption

. This followed a 2020 exposure of 440 million internal records . The company also faced a 2022 class-action lawsuit alleging Biometric Information Privacy Act (BIPA) violations for collecting facial scans without consent, though the case was dismissed . In March 2022, AI-driven performance assessments led to staff terminations, resolved with out-of-court settlements . Despite these incidents, Estée Lauder has implemented several positive measures. It has an ethical machine learning practice, including restrictions on AI use (e.g., no image generation of people or product efficacy) and invests in bias mitigation by training AI models on diverse datasets . The company requires opt-in consent for AI technology to process customer data . Its cybersecurity program includes technologies to proactively identify and monitor vulnerabilities, and it regularly tests response planning and protocols with third-party experts . Employees receive formal and mandatory security and data privacy training . The company aims to comply with regulations like GDPR and CCPA, working with legal and privacy teams, and has a framework for SEC reporting .

Zero Waste & Sustainable Products

Estée Lauder achieved 71% recyclable, refillable, reusable, recycled, or recoverable packaging by weight for FY2024.

The company has established several waste reduction targets, including aiming for 75-100% sustainable packaging by 2025 , 100% FSC certification for its forest-based fiber cartons by 2025 (with 95% already certified as of FY2022) , and reducing virgin petroleum plastic use to below 50% by 2030 . Multiple waste reduction initiatives are in place, such as Clinique eliminating 60,000 pounds of plastic by using recycled chipboard for gift packaging , Estée Lauder's Revitalizing Supreme+ Moisturizer reducing packaging weight by 90% with a refillable system , and Aveda developing paper-based sachets . M·A·C Cosmetics' "Back-To-M·A·C" program diverted over 420,000 pounds of packaging from landfills , and Aveda operates a "Full Circle Takeback Program." The company also has agreements with SK chemicals and Eastman to supply recycled materials for packaging , indicating waste-related requirements for key suppliers.