Impact Report 2021

Life, interconnected
The interconnectedness of all life on earth was exposed in 2021.
Epitomised by the continuation of the global pandemic, its impacts andthe subsequent vaccine roll out, the need to work together was amplified.
It was a year that brought life into sharp focus, reminding us that all
nature, ecosystems, industry and people are linked and rely on eachother to thrive.

Aesop, Seongsu, Korea

Acknowledgement to country

Contents

We acknowledge the traditional owners of the lands on which
Aesop is located and where we conduct our business. We pay
our respects to ancestors and elders past, present and future.
Sovereignty has never been ceded. Aesop is committed toacknowledging and honouring all First Nation peoples’ uniquecultural and spiritual relationships to the land, waters and seas
and their rich contribution to our society.

This report covers January to December 2021—a particularly
turbulent year for the world, which saw more disruption fromthe global pandemic, the Capitol riots in the USA, the fall of
Kabul and the second worst wildfires ever seen in Europe, but
one during which our teams have shown continual dedication
to making a positive impact.

Acknowledgement to country
An introduction
A message from Michael O’Keefe ......................................... 3

For our planet
Thinking circular ................................................................... 5
The journey to net zero .......................................................... 9

The future of store design ..................................................... 11

Nurturing communities and Individuals
Diversity, equity and inclusion .............................................16

Queer Libraries ..................................................................19

Volunteering spotlight ......................................................... 20

The Aesop Foundation ......................................................... 21

Business as a force for good
Proud to be B Corp ............................................................. 24

Our value chain

From source to shelf.............................................................13

IMAGE

Natura &Co: our community
Avon, Natura, The Body Shop and Aesop; each uniquein mission and spirit, yet all purpose-driven at heart. We
share a commitment to sustainable and ethical businesspractices, united in the belief that we can nurture beauty andrelationships for a better way of living and doing business.
Proud to be the world’s largest B-Corp, we are a global
ecosystem with phenomenal potential to drive change.
2Letter from our CEO

If something was made clear to us in 2021, it’s the undeniableinterconnectedness of our world and its inhabitants. Fromvaccine rollouts, political division and upheaval, to the everpresent need to unite against the climate crisis, now morethan ever, it is clear that the path toward a just and sustainable
future requires meaningful innovation, collaboration andsystemic change.

That’s why our report is entitled, ‘Life, Interconnected’ inacknowledgement that while we need to improve our own
business practices, we also have a responsibility to lookoutward to the wider pressures facing the environmentand global citizens. It is apparent that planetary health andhuman wellbeing are intricately interconnected.

2021 also marked the second year of Natura &Co’s
Sustainability Vision, Commitment to Life—to address the
Climate Crisis and Protect the Amazon, to Defend Human
Rights and be Human-Kind, and to embrace Circularity andRegeneration. These commitments are undertaken by all
Natura &Co brands and guide our business transformation.
During 2020, it was important to build strong foundations
for our 10-year goals, but in 2021 we focused on adding thecapabilities needed to deliver our priorities.

trials. We developed and launched our Diversity, Equity andInclusion strategy, which included welcoming our first Headof Culture, Diversity, Equity and Inclusion.

This report covers the year of January to December 2021.
Within that time our business has grown; we opened 45
new stores and counters, and our headcount grew by over
18% across our global teams¹. We have learned a lot within
this year, particularly that we need to embrace a test andlearn approach in order to find the solutions needed for ourcustomers and the future of our planet.
Aesop is proud of the steps it is taking on our journey to
become a business that is good for the world. But there ismuch more road to travel, and we intend to get there with
defiant optimism and sustained commitment.

Michael O’Keeffe

CEO Aesop

Aesop Impact Report 2021

During 2021, circularity, D,E, & I and climate were strategic
focus areas. We set emissions intensity and circularity
targets tied to renumeration which were met and exceeded.
We made good progress against our circularity roadmap
including surpassing our 2030 goal for 50% of all plastic
used to be of recycled content and the introduction of refill

Footnotes¹ Data covers January to December 2021

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Understanding our impact

Commitment to life
As part of the Natura &Co Group, Aesop is working towards the2030 goals set out in Commitment to Life.
The principle behind Natura &Co’s Sustainability Vision,Commitment to Life is to provide business solutions for the mainsocio-environmental problems the world is facing, generating
positive impact. This approach calls for an all-encompassing
business model that seeks to give back more than it takes.

To address the Climate Crisisand protect the Amazon.

To defend Human Rights
and be Human-Kind.

To embrace Circularity
and Regeneration.

Like our sister brands within the Natura &Co group—The Body
Shop, Avon and Natura—Commitment to Life guides our focus
for impact on the issues affecting our people and planet.

Aesop Impact Report 2021

Our approach to sustainable impact starts with making surethat, even though we are merchants, each decision we makekeeps people and the planet front-of-mind. Furthermore,as a B Corp, we seek to use our voice to amplify theprocesses, conversations and connections that may nourish
the world around us.

4For our planet

Thinking circular

Our circularity approach
We are evolving our approach to design, applying circularprinciples to transform our products, packaging andoperations. As we embark on this transformation we will
strive for progress over perfection, ensuring we test andlearn to establish long-term solutions for our businessand our customers. We will partner with our customers on
this journey, encouraging participation in our Rinse andReturn and refill programmes.
Our work to date has included several Rinse and Return
programmes across our stores in Asia, and we are triallingrefill solutions in Australia—but we have big ambitions. It
is our vision that Aesop adopts circular and regenerative
principles across every area of our business.

It is no secret that the beauty industry has a waste problem,and despite so much innovation in packaging, our world is still
too linear—including here at Aesop.
According to a report from the OECD published in February2022, the world is producing twice as much plastic waste as two
decades ago, with the bulk of it ending up in landfill, incinerated
or where it has ongoing consequences for the environment ².
We have met our 2030 goal for 50% of all plastic used to beof post-consumer recycled content early, and we have madegood strides to improve recyclability. At the same time, we
acknowledge that the recycling system is flawed with only
9% of plastic globally recycled. This demonstrates the needfor more solutions than recycling alone. We have madeadvances in our recycled content and recyclability, but ourwork continues in earnest to ensure that we are exploring themultiple solutions needed to tackle the impact of waste.

Our goal is for all our packaging
to be reusable, recyclable orcompostable by 2025.

At Aesop, we see the climate and nature crisis as the defining challengeof our time.
As a business that creates a product, we understand our considerable
responsibility to preserve the planet we share, and ultimately, help it
thrive. The danger the world is facing is grave.

This is why we have introduced successful Rinse and Return
programmes in Hong Kong, Taiwan and Singapore. An initial2020 refill trial was launched in Adelaide, followed by a full instore refill trial in our South Yarra store.

In response to this, we are on the journey to transform our business modelfrom one that is linear and degenerative to one that is circular - benefiting
our people, our customers and our planet.

Beyond this, we are heavily investing in circular innovation as
we are clear that businesses need to adopt a new model—
one that aims to reduce packaging where possible, reusematerials to give them a longer life and recycle as a final resort.

Through key areas, we are working to ensure that Aesop reduces negative
impacts from its operations, while exploring ways that we can have apositive impact on the natural world. These areas include; introducing
circular principles across our packaging, stores, and ingredients, making
significant changes to reach net zero by 2030, and innovating sustainable
store design solutions. These actions impact each other and areinterlinked across our value chain and the wider world.
² OECD, (2022), Global Plastics Outlook.

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Packaging materials in focus

Glass
We favour glass for some of our products as it isinert and does not interfere with ingredients.
In our skin care range, our cleansers and toners use
a glass bottle with minimum 60% recycled content.

Plastic

Aluminium

Over 50% of the plastic purchased by weight in 2021
came from post-consumer recycled content.

We often select aluminium for its versatility, andits environmental credentials—it is a readily andinfinitely recyclable packaging material.

Altogether, 89% of the PET used across our
packaging range is recycled polyethylene
terephthalate (rPET).
We choose plastic over glass in some cases due to its
lighter weight, and therefore lower carbon footprint.
Pumps
The majority of our 500mL hand and body carecleansing products feature a screw-cap in place ofa pump, and are available globally. When customers
are replenishing a product, reusing a pump results in
a 22% reduction in packaging weight.

In 2021 Aesop transitioned Blue Chamomile
Facial Hydrating Masque and In Two Minds
Facial Hydrator from glass bottles with a pump
to aluminium tubes, ensuring the packaging
could be separated for recycling and opting fora mono-material flip-top cap, which reduces ouruse of pumps.

Cardboard
Our seasonal Gift Kits have been reimagined
to ensure that all elements of the kit packaging
can be readily recycled within existing municipal
systems. The packaging is made from 100%
recycled moulded pulp while the sleeve is madefrom 100% recycled and Forest StewardshipCouncil (FSC) certified material.
Aesop chose to move away from stitched fabriccases to ensure that these products did not end
up in landfill.

Footnotes

UCT PACKAGING

Aesop Impact Report 2021

Our plastic 500ml, 100ml are made from at least 97%
post-consumer recycled polyethylene terephthalate(PET) inputs.

The Adventurer Roll-Up

Our first in-store refill trial

The joint endeavor between Aesop and RÆBURN, theLondon-based responsible fashion upcycling pioneer, is aportable pouch for on-the-go hand care. Handcrafted frompre-consumer recycled cotton, the sack features three purposefit pockets to house a trio of Aesop products: Resurrection
Rinse-Free Hand Wash, Resurrection Aromatique Hand Balm,and the new Resurrection Rinse-Free Hand Mist.

Following a successful off-site refill trail in Adelaide, Australia,
in 2021, we launched our first in store refill trial in our South
Yarra store in Melbourne. Customers were invited to partakeby purchasing a selection of favoured formulations in reusable
glass bottles—initially available were Resurrection AromatiqueHand Wash, Geranium Leaf Body Cleanser and Parsley Seed
Facial Cleanser. Once these products had been enjoyed, thedepleted vessels were able to be returned to store and tradedfor a refilled replacement.

The purchase and reuse of packaging helps to lessen an
individual’s carbon footprint over time. The trial celebrated
the durable nature of our signature amber glass, withoutcompromising the efficacy of the products housed within.
Alongside the environmental and design benefits, Aesop
customers also paid a reduced cost overall, after the initialinvestment in their reusable glass bottle.

What went well

The local community was
keen to be part of a trial.

We saw a trend towards a higher
percentage of customers opting
for our refill solution over our rPET
alternative. In fact, throughout thetrial, Resurrection Handwash Refill
was one of our best-selling products.

The refill rate wasover 40%.³

What we learnt
The performance of a refill pumpsystem can be heavily dependent
on the product formulation,
so work continues with our machineengineers to find a solution
compatible with various
product viscosities.

By taking a science-based
approach, we learned how manytimes our refillable vessels will need
to be refilled in order to break-even
with our rPET alternative.

Aesop Impact Report 2021

We are learning to adopt a‘test and learn’ approach as we
journey towards becoming
a circular business.

³ Refill rate was recorded across the trail from November 2021 to July 2022

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As we know, refillable vessels are only good if you reuse them.
In 2021, Aesop embarked on a science-based approach tocompare the carbon and other environmental impacts of its
proposed circular packaging and distribution offerings, with theconventional ‘purchase-in-store’ model. This type of insight isdriving our circularity trials and future packaging choices.
Reusable vessels are only better for the environment if they arereused. In the case of refilling a glass vessel in store, it would
need to be reused at least five times for it to be better thancontinuing to use plastic once.

The Life Cycle Assessment (LCA)⁴, found there were several
circular options, including the ‘refill-in-store glass bottle’ which
had lower environmental impact on a per-use basis than the
one-off or conventional ‘purchase-in-store’ model. The LCA
also highlighted the importance of facilitating the retention andreturn of the bottles for refilling, without which it will be difficult
to realise the environmental benefits of a circular model.
From the LCA we concluded that using glass would be thebest option given its recyclability but also to offer an additional
option to our customers alongside our rPET bottles.

‘At Aesop, we are rethinking how we design,source, reuse, and recycle packaging. This
circular initiative at Aesop South Yarra isa small but important step in realising ourambitions towards 100% of our packaging
being recyclable, reusable or compostable.
We are seeking to understand how best to
make refill solutions available to all of ourcustomers to reduce our plastic footprint
and climate impact.’

Aesop, South Yarra, Australia.
Aesop, South Yarra, Australia.
⁴ Our Life Cycle Assessment was performed in accordance with ISO 14040 and 14044 standards.

Aesop Impact Report 2021

Suzanne Santos, Chief Customer Officer

The journey to net zero

We are at a crossroads in human history. The climate crisis
and its damaging impacts on nature represent a profoundthreat to our future survival and the beauty industry contributes
through the use and disposal of ingredients and materials, aswell as the manufacture and movement of goods.
When addressing the climate crisis, incremental ‘do less harm’responses will not deliver the pace or scale of change needed
for people, our business and the planet to thrive. In tacklingclimate change, we believe in an approach that interconnects
climate, biodiversity and justice into action to end the related
climate and nature crises.
As devastating weather events unfolded with increasing
frequency and worsening severity in 2021, it is clearer thanever that business investment in tackling the climate crisis
must align with the scale of the challenge. We cannot delay
and still hope to contain global warming within safe limits. We
understand our responsibility in tackling the climate crisis
and are investing what is needed in order to decarbonise ourbusiness and supply chain in line with climate science.

Aesop and climate action
In 2020, Natura &Co committed the Group to the ambitious aimof reaching net zero emissions by 2030 and to setting sciencebased targets to guide our progress towards this goal in linewith climate science.
In 2021, we began to lay the foundations to radically decarbonise
our business. We commenced work on identifying the priority
interventions across all areas of our company that can put uson the path to net zero by 2030. While this work progressed,
we focused our immediate emission reduction activities on our
freight and travel activities, as well as driving improvements
in our packaging. We set and surpassed our 7% intensity
reduction target in this area, tying this to the remuneration ofsenior leadership to drive progress towards the goal.
With many of our emissions coming from our supply chain
rather than direct operations, we recognise that collaborative
engagement with our suppliers will be key to decarbonising ourbusiness. Therefore, in 2021 we prioritised bringing dedicatedresource and expertise into the business to understand theopportunities to improve and deepen our supplier engagementin support of our net zero ambitions.
Going forwards, we will work in partnership with our
suppliers to improve their sustainability performance andidentify opportunities to invest in adaptation and mitigation
projects which deliver against carbon reduction and climate
resilience aims.

Aesop Impact Report 2021

Work is now underway to finalise our net zero decarbonisation
pathway and wider Climate Action Plan by the end of 2022.
It will guide us not only in reducing our emissions but in taking
steps to preserve and restore nature, including building
the resilience of landscapes and communities to adapt toclimate change.
We recognise that vulnerable and marginalised communities
are facing disproportionate impacts from climate change andwill seek to prioritise supporting just and equitable solutions tothe climate crisis that build resilience for these communities.
Image from Guanaré’ Forest Plantations, provided by South Pole.

9Our footprint
CY21 total emissions (excl. use of products)

The vast majority of our emissions come from our supply chain
rather than our direct operations. Excluding consumer useof our products, over one third of our supply chain emissions
arise from transport of our products. Production of our
products, from the raw materials through the manufacturing
and packaging account for a further quarter.
Strong sales growth coupled with the easing of coronavirus(COVID-19) restrictions and a greater return to business asnormal saw our absolute emissions rise by 26% in 2021. We
are hopeful that the foundations we laid in 2021 to set us on
our journey to net zero will result in reductions in our carbon
intensity starting to be realised in 2022.

Carbon neutrality
In 2020 we reached carbon neutrality across ourglobal business, obtaining South Pole’s Climate Neutral
Company label.
Since 2018, both our Australian and New Zealand operations
have been certified carbon-neutral under the AustralianGovernment’s Climate Active scheme.
Through our partner South Pole, we buy carbon credits which
offset our carbon by providing funds to projects that protect theenvironment and generate Renewable Energy. Our offsetting
strategy prioritises supporting projects that also generateenvironmental and social benefits, recognising the inequalities
of climate change. In 2021, we funded Kariba REDD+,
EcoAustralia – Mount Sandy, and Guanaré. Our Climate Action
Plan will drive action to radically reduce our emissions fromour own operations and supply chain however, as those efforts
ramp up, we believe that as a responsible business, there
remains a role for making investments in climate mitigation
outside of our value chain through offsetting, especiallywhere the projects generate additional co-benefits for people,
nature and biodiversity.
Renewable energy
Applicable to our scope 2 electricity consumption for all
global Aesop operated properties including, offices, stores,
and shopping centre locations.
Where possible, we source 100% renewable energy directlywith from our electricity suppliers. Where we are unable topurchase energy directly—for example in embedded networks
or where energy costs are included in leasing arrangements—we have sought to purchase renewable energy certificatesfor remaining grid consumption.

Aesop Impact Report 2021

We measured, and offset all direct greenhouse gas emissions(scope 1 and scope 2) and part of our indirect (scope 3)
emissions across our global operations, including corporate
travel and freight. These account for the main greenhousegases, expressed as carbon dioxide equivalents.

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The future of store design

The sustainability scorecard

We believe unequivocally that well-considered design
improves lives.

In 2019, we developed a Sustainability Scorecard for ourstores to measure social and environmental impact, fromconstruction through to decommission. The objective is todevelop strategies to improve our design process, practices
and delivery of projects. Each of our architects completes a‘Concept Scorecard’ and our project manager completes an‘As built scorecard’. This allows us to precisely understandthe sustainability score of our original intentions and what wewere able or not able to implement at a construction phase.
Because our Scorecard model is detailed and takes a vast
number of factors into consideration (manufacturer location,end of life assessment, whether a material is able to be
repurposed / reused, material certification) we can precisely
measure the impact of all small decisions related to a projectthat can make an important impact.

The actions and elements analysed include:

The sustainability scale ranges from 0 to 100, and the overall
score is the average of the stores that have completed theScorecard analysis in the relevant calendar year.

Our objective is to design stores with reductions in energy
consumption, waste and encourage regenerative initiatives
that address the impacts of building and construction in theretail sector. For each new store, we continue our research anddevelopment and ask our architects to take responsibility forthe impact of their designs.

In seeking new store locations, our first consideration is towork with what already exists. It is our intention to weave
ourselves into the fabric of place and add something of meritrather than impose a discordant presence, and our consistentpractice to use a locally relevant design vocabulary.
A blueprint for store design
In a world where humans have irreparably damaged
ecosystems, depleted natural resources, and catalysed theimpending climate crisis, it is no longer enough to ‘tread
lightly’ or minimise harm.
We believe in a future direction for store design that fosters
connection between people and nature, utilises regenerative
materials and practices and ultimately contributes toflourishing neighbourhoods. At Aesop, we consider how we
can adopt regenerative principles across the materials we
use and how we design using more circular solutions. We also
consider how transport affects this, how we use energy andhow stores and their design impact the local community.

Materials(composition, re-use and end of life)
Circular design
Transport
Embodied energy
Social procurement

Our store design
Sustainability
Scorecard resultfor 2021 is 62⁵

Aesop, Seongsu, Korea.

⁵ Sustainability scorecard result shared as an average across all store developments in 2021.

Aesop Impact Report 2021

A sincere interest in intelligent and sustainable design extends
to every aspect of Aesop’s workings. Just as meticulous
research is integral to the formulation of each product, ourutilitarian containers are created with the utmost care toensure they are functional and aesthetically pleasing.

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Sustainable design in practiceAt the end of 2021, we opened our store in Seoul’s vibrantdistrict of Seongsu-dong to serve as a pilot and inspiration
for more sustainably focused stores in the future within theregion. The store design team spent 12 weeks developing
the design concept and sourcing low-impact materials forthe construction.
As a pilot store, Aesop Seongsu served as an experimentfor us explore how much we can stretch our sustainability
principles within store design. Hence, the team worked toinvestigate various aspects such as materials, systems andbehaviours to achieve this.
Key design features of Aesop Seongsu:

Aesop Seongsu used
64% less energy per
sqm than our Garosguil
store, and 59% less thanour Samcheong store.

Timber was locallysourced and salvaged
from buildings that wereno longer standing, andbricks running along the
façade were reused.

The drainage systemin the open courtyard
waters soil naturally.
We introduced arainwater reuse system
which collects the day’s
precipitation for use in
the garden and the store.

We installed insulation
constructed fromreclaimed paperand denim.

Aesop Impact Report 2021

STORE IMAGE

We worked closely with local artisans and experts inbuilding traditional Korean Hanok houses, making use ofnatural clay mixed with boiled rice, straw and water to build
the walls—a method proven to be very durable.

Aesop, Seongsu, Korea.
Footnotes

12Our value chain

From source to shelf

Collaboration and partnership for an ethical supply chain

Critical materials

Aesop is committed to investing in long-term partnerships withshared values. Aesop’s Ethical Sourcing Programme aims torigorously ensure that all its suppliers use environmentally
responsible processes, provide safe working conditions, treat
all workers with dignity and human rights are held paramountthroughout the supply chain. Our ethical sourcing programmeis central to addressing how modern slavery risks, including
Aesop’s Material Risks (general agriculture and farming in theprovision of essential oils, nut oils and derivatives, palm oil,cotton, manufacturing). Aesop is committed to investing in
long-term partnerships with shared values. Aesop’s EthicalSourcing Programme is central to addressing how modern
slavery risks are managed and mitigated among Direct
Suppliers in our global supply chain.

As part of Natura &Co’s ‘Commitment to Life’, six supply
chains across the Natura &Co group were identified ashigh risk for potential labour and environmental exploitation(palm oil, cotton, mica, soy, paper and ethanol). In 2021,
we established a baseline, started to develop group-wideprocurement policies and to work towards full traceability
and / or certification for these materials (with the exception of
mica, as this is not used in Aesop products).

We file Modern Slavery Statements for both the UK andAustralia—detailing our progress for a just and ethical supply
chain. These can be viewed on our website.
Human rights

Collaboration is essential in the palm derivatives supply
chain. Through Natura &Co, we are members of Action for
Sustainable Derivatives, a collaborative initiative driven
by derivatives users to transform their supply chains byincreasing transparency, monitoring risks, engaging thesector and generating on-the-ground impacts.
In 2021 we established traceability to mills for almost 90% of
our palm oil volume for 2021. This work will help us accelerate
towards our goal of full palm oil certification by 2025.

In 2021, the Natura &Co Group Human Rights Statement
was developed. This statement outlines the values we standfor and further reinforces our Commitment to Life objective
to Defend Human Rights, as defined by the UN Guiding
Principles on Business and Human Rights.

Across our supply chain, from source to shelf, all things are interconnected—this includes the suppliers we partner with, the people they employ, andthe quality and provenance of the ingredients we use. An awareness of
this interconnectedness is important so that we can improve and maintainstandards across each step of the journey. This in turn ensures that weoffer a higher quality of product on the shelf, and that the product reaches
our customers in exceptional ways.

This statement has a specific focus on supporting the equalityof people who are potentially politically, economically and/or socially disadvantaged, including all underrepresented
groups: racial and ethnic, of all sexual diversities and gender
identities (LGBTQIA+), all socioeconomically disadvantaged
people and those with physical or mental disabilities. The
statement also outlines stakeholder engagement andgrievance mechanisms, our priority human rights and detailon how we are taking action.

Throughout 2021 we worked hard on firming up our policies and practices,
implementing a baseline for the traceability/certification critical materials
and, through Natura &Co, the development of a Human Rights Statement.
13

Reviewing what goes inside the jar

All ingredients, whether new or existing, are thoroughly
reviewed by our Research & Development team before use.
They are researched extensively for safety and efficacy, andfor their regulatory status across global markets, ensuring that
their use is aligned with the most stringent of requirements.
We also collect and review information on the ethical andenvironmental impact, as well as the traceability of theingredients. This includes reviewing the country of origin,botanical origin, and vetting any past animal testing. We havealso begun to collect data on land use, energy use and water
scarcity in region. As technology develops, our team continues
to look for innovative and more sustainable alternatives.

Aesop ingredient spotlight: sandalwood

Aesop Impact Report 2021

Dutjahn Sandalwood Oils (DSO) is a sandalwood oil
distillation company located in Kalgoorlie in Western
Australia, supplying Aesop’s sandalwood. Aesop firstpartnered with Dutjahn in 2018 after an extensive searchfor ethically sourced sandalwood oil which meet our
scent profile requirements. DSO is a 50% Indigenous
owned enterprise that provides a blended sandalwood
oil from new plantation trees and old growth wild desert
trees which are sustainably harvested by the custodiansof the land. Western Australia is known to have someof the highest quality sandalwood oil in the world. The
company works with traditional custodians of the landon which the sandalwood grows, the Martu and Wongi
people. Sandalwood has been revered for generations
by the Martu and Wongi for its medicinal properties,
smoking and cultural ceremonies, and for spiritual
practices. Aesop has worked with Dutjahn ensuring
alignment with our supplier code of conduct and to build
supply chain transparency by understanding the social,
ethical and environmental risks. Sedex members, havebeen assessed as a low-risk supplier and have previously
won the Sedex award for ‘best collaborative effort’ forpromoting Indigenous communities in business and forsustainability practices.
8

From source to shelf

Aesop Impact Report 2021

⁷

⁶

⁶ These suppliers were active for at least 4.5 months of 2021 according to the data received from Sedex. ⁷ According to the ISO standard.

15

Nurturing communities
and individuals

Diversity, equity and inclusion

Aesop is dedicated to supporting the communities in which
we operate both internally and externally and giving backin meaningful ways that create greater opportunities forhistorically excluded groups.
However, it has been overdue that we formalise our approach to
improvement in this area, and the events of early 2020—whichfurther exposed the inequities faced by marginalised groups
around the world and was amplified by the work of the Black
Lives Matter movement—challenged Aesop to look inward
and take intentional and focused steps to building a morediverse, inclusive and equitable culture and work environment.
Throughout 2020, we listened deeply and intently to ourcolleagues to understand their experiences, challenges,

barriers and opportunities through global ‘culture
conversations’. In 2021, we reflected on what we had learned
and began to take action.
Following the decision to establish Diversity, Equity andInclusion (D, E & I) as one of Aesop’s strategic businesspriorities, we appointed our first Head of Culture, Diversity,
Equity and Inclusion and launched a formal D, E & I strategy
designed to provide greater vision, structure and clarity tomove forward on our journey at Aesop. The strategy focuseson creating a strong foundation that will aid the delivery ofcollective Natura &Co Commitment ‘to defend Human Rights
and be Human-Kind’ goals and ambitions, detailed below:

Natura &Co’s Sustainability Vision, Commitment to Life:To Defend Human Rights and Be Human Kind

Aesop is proud to be a B Corporation. It demonstrates that we adhere to
the highest standards of verified social and environmental performance,
public transparency and legal accountability to balance profit and purpose.
In short, we seek to be a business that is a force for good. But businesses
themselves are not inherently ‘good’—they are made ‘good’ by the values
exhibited by the people in them.
Our community at Aesop is committed to making a meaningful difference
to nurturing communities and individuals. Whether that is by ensuring wehave the robust internal practices that allow all employees to feel a senseof belonging and empowerment, or generating positive impact throughvolunteering, civic giving or activism for an issue they are personallypassionate about.

Metrics and targets

Aesop 2021 progress

Gender balance: 50% women on
board/senior team by 2023.

40%

Work towards 30% inclusion, in
management, of under-represented groups –racial or ethnic, sexual diversity and gender
identity (LGBTQIA+), socio economicallydisadvantaged, physical or mental
disability by 2030.

Throughout 2021 we reviewed various solutions to assess D, E & I
data as we faced data privacy and legislative issues in many of themarkets in which Natura &Co operates. With the supportof an external consultancy, an online survey tool will be used toanonymously gather data from our employees to support
the establishment of our baseline.

Equitable pay, closing thegender gap by 2023.

-1%

Living wage (or above)for all by 2023.

⁸ 1A is one adult. ⁹ 2A2C is two adults, two children.

1A – 98% ⁸
2A2C – 85% ⁹

The Aesop D, E & I strategy

Building a diverse workforce that allows allcolleagues to develop to their full potential.

Gathering insights to understand the experiencesof our people and how we need to transform.

Establishing strong foundations to inclusive TalentManagement—the way we hire, develop and nurture talentat Aesop—is an important step on our D, E & I journey. The
launch of our Inclusive Hiring Principles plays an importantrole in promoting inclusive mindsets, instilling objectivity andde-biasing our practices in how we hire talent at Aesop.

We recognise that listening to our colleagues—whether that’s
through our D, E & I culture conversations, focus group discussions
or twice-yearly engagement surveys—is critical to driving inclusion
innovation, understanding the barriers to overcome and opportunities
to explore.

Looking into 2022 and beyond, we will continue to embed
inclusive hiring within our everyday recruitment practices,diversify our talent sources and build on the momentum fromour demographic data collection programme to enable us tobecome more data and insight led.
Creating a safe and inclusive workplace wherecolleagues are empowered and feel like they belong.

Establishing Aesop’s Employee Resource Group (ERG)
programme has helped strengthen inclusion and belonging
at Aesop through fostering safe spaces for colleagues withshared lived experiences, support historically and systemically
excluded communities, acknowledge and celebrate key culturaland religious moments in the year and drive awareness andimprovement about important issues and topics.

Aesop, Coal Drops Yard, UK.
Footnotes

Recognising the important role that Aesop’s leaders play ascultural stewards, inclusion role models and ambassadors,
over 80 leaders across the organisation took part in immersive
psychological safety, intercultural and inclusive leadershipcoaching sessions.

Colleague sentiment gathered in our Employee Engagement
surveys has highlighted improved experiences in Inclusion
and Belonging, with notable increases when it comes toexperiences of Inclusion (Diverse perspectives are valued),
Speak My Mind (I am free to speak my mind without fear ofnegative consequences) and Belonging.
In 2021, we launched Phase 1 of the D, E & I demographic datacollection programme to help us understand the baseline of where
we are at today in relation to diversity representation at Aesop andagainst our Commitment to Life goals. In 2022, we will continue
to progress with the programme, extending an invitation to ourcolleagues from more of our global markets. While we are in theanalysis phase of the programme, early observations from theinsights show us that the progress we are making across the D, E & I
priorities is critical and continues to be relevant and impactful way todrive equal opportunities, inclusion and belonging at Aesop.
Demonstrating that Diversity, Equity and Inclusion isat the core of how we show up with our customers,
communities and the marketplace.

As part of our commitment to creating more inclusive
experiences for Aesop’s diverse customers, a dedicatedlearning experience was designed for retail colleagues
around the world focused on creating inclusive experiences
for customers with diverse needs who enter our spaces.
Aesop also partnered and consulted with a D, E & I productspecialists to do an extensive review of our products to identify
opportunities for a more inclusive approach.
17

Aesop Impact Report 2021

To support all colleagues with their understanding, awarenessand embedding of D,E & I into our culture, we designed a global
D, E & I learning and development programme, which saw
over 1,400 Aesop colleagues participating in a series immersive
learning opportunities centred on our global learning priorities
of inclusion, psychological safety, unconscious bias andinclusive customer experiences.

As of 2021, Aesop has three formal ERGs all formed and led
by colleagues from around the world and with a combined
membership of over 400 globally. The ERGs are:Anti-Racism Committee
Established in 2020, the Anti-Racism Committee envisions
a diverse Aesop, onethat upholds equity and wellbeing
for all, dismantling prejudice and bias and amplifying thevoices of all who are under-represented.

Aesop Women
The aim of the group is to cultivate an environmentthat supports and encourages women to advance theirskills, personal growth and leadership potential throughconnection, mentorship, collaboration and discussion.

‘Diversity, Equity and Inclusion is
not a project, it’s a way of being.
Therefore, it requires intent
and purpose’
Nelson Derry, Global Headof Culture, Diversity, Equity& Inclusion

Prism
Prism is an ERG that aims to raise the voices of Aesop’s
diverse global LGBTQIA+ community by promoting
awareness through education and engagement.

Pay equity at Aesop
In 2021, Natura &Co have refined the Living Wage analysis andconcluded on the ‘Living Wage’ reference we will use going
forward. Our ambition is to achieve the recognised / acceptedliving wage where available. The entrance benchmark is totarget 1 Adult rate (1A) as a minimum, and we are reviewing ourdemographic data to determine the long-term targets beyond
1A rate. As of April 2022, we have achieved over 98% of ourdirect workforce in Aesop above 1A rate as per our living wagereference, and we are continuing working towards delivering ourcommitment to pay living wage (or above) for all by 2023.

¹⁰ The Natura &Co reviews on pay equity followed Mercer methodology. ¹¹ According to Mercer, a pay gap of 1% or less represents that abusiness has achieved equitable pay.

While 2021 was the year we established the foundations of ourD, E & I journey, we recognise that change and embedding D, E
& I into the fabric of our culture and organisation requires time.
We know we still have a long road ahead on our D, E & I journey,
but we are energised by the progress we have made and themomentum we are building.

Aesop Impact Report 2021

Alongside Natura &Co, Aesop has been conducting reviews
into gender pay equity reviews since 2020.¹⁰ We have decided
to not only report but explore the explained and unexplained pay
gaps across our global workforce. Explained gaps reflect thedifferences that we could expect to see due to countries having
different rates of pay and cost of living, or certain functionscommanding a higher salary. The unexplained gap reflects theresidual pay gap that cannot be explained by legitimate factors
and may be due to pay inequities by gender. In Aesop’s second
Gender Pay Equity Study from October 2021, focusing on basepay, we found the raw gap between men and women’s pay is
26.4%, while the unexplained gap stands at -1%.¹¹

Aesop Queer Library

Our employee community is proud to develop initiatives that
demonstrate the values we stand for as a business. In 2021,
Aesop’s Queer Libraries were launched to create awarenessof queer experiences across the globe through meaningful,
non-profit driven installations of literary works by LGBTQIA+
authors and allies. Our relationship with literature has been
integral to the development of Aesop; it has fuelled us for over
35 years. While our primary business is skin care, we draw
constant inspiration from literature as an avenue to connect
with communities and customers.

Aesop Queer Libraries in 2022
After launching nine Queer Libraries across five countries andgiving away over 35,000 books to visitors in its first year, thesecond iteration will see 12 Queer Libraries appear acrosseight countries, allowing us to share more stories from thecommunity, as well as providing new opportunities to explore
queer creativity in its various forms, from a wide range of voices.

In partnership with Penguin Books and local independent
queer bookstores located near each Queer Library, we
selected a diverse selection of works that replaced the
products in our stores. Each customer was invited to collecta complimentary book, with no purchase necessary. The
initiative is guided by our long-held belief in the transformative
power of storytelling—its ability to broaden understanding andprovide a catalyst for change.
Why are the Queer Libraries so important to Aesop?

• They transform our spaces into platforms for conversations
that we and our customers care about.

‘I’ve always known, deeply and quietly,that I work for a company that embraces
all of who I am, but it’s affirming to see
Aesop express its support for the queer
community in more visible and meaningful
ways. The Queer Libraries, to me, areemblematic of the beliefs and values wehave always carried as a company but
expressed with boldness and integrity to
our customers and colleagues alike.’James, PRISM committee member
Ayishat A. Akanbi at The Aesop Queer Library, London 2021.
Photograph courtesy of Ollie Tomlinson.

Aesop, Soho, UK.

Aesop Impact Report 2021

• They have an ability to broaden minds, embolden individuals
and unite the community and its allies.

Our volunteering programme

We are proud to have such a passionate, and conscious groupof employees working with us. We believe in the strength of
the Aesop community and its ability to have a positive impact
on the world. Our intent has always been to extend support
beyond monetary means and nurture enduring relationships.
As such, all employees are encouraged to donate 1% of theirtime to volunteer with a local organisation.

Aesop volunteering: looking forwards
In 2021, our staff volunteered
22,663 hours ¹²

To increase year on year the number of hours of meaningful
volunteering, focusing on how best we can match time andtalent of employees with local charitable organisations.
Although not all regions are yet free of COVID-19 restrictions,
we are moving back towards in-person volunteering, using
lessons learnt from remote volunteering during 2021.

Aesop covers all volunteering costs and endeavours toform long-term partnerships. Our volunteering activities are
guided by a global policy to ensure meaningful activities areundertaken in a safe and respectful manner. As much as
possible, we endeavour to match the talents of our employeeswith unmet needs in the local communities.

Refinement of our volunteering strategy guided by a global
policy which contains safeguarding guidance and endeavours
to deepen our connectedness to local communities.

LondonThrough working with refugees and displaced communities
in London and Calais over the last five years, our Londonbased colleague, Jesse has increasingly focused her
volunteering on education around basic human rightsfood, water, sanitation and hygiene. She has undertaken
this work with Refugee Rights Project, Care4Calis, RefugeeCommunity Kitchen, Host Nation, Whitechapel Mission
and the Legacy of War Foundation. Her volunteering wasparticularly effective because she found a way to utilise her
personal skillset to create positive impact.

In 2021, due to the Covid-19 epidemic and the difficulty ofin-person volunteering, we identified virtual volunteering
opportunities for our employees to undertake.

Beginning in 2021, the Aesop
team in Hong Kong Macau
has been running a successful
volunteering programme. We
have cooperated with different
local organisations and arranged
frequent volunteering activities
for the retail and office team. In
Macau, we worked with Macau
Waste Reduction Organization ona monthly basis. The volunteering
duties include waste recycling,and engaging with the community
on waste reduction and ways thatwaste can be sorted into recycling
and non-recycling.
Image of Aesop team in Hong Kong Macau taking part in volunteering.
¹² Recorded volunteer hours by Aesop employees in 2021.
Footnotes‘We are very proud of our people, whohave given their time and efforts so
generously to their communities, andsupported organisations raising awarenesson education, employment, environment,
human rights and animal welfare.’Stefan Verreson,
Head of Business Development,
Chair of the Asia Philanthropy Committe

Image by french journalist 07/11/21: Jesse volunteering in the RefugeeCommunity Kitchen in Calais, France; preparing food for daily serviceof up to 2,000 servings.

20

Aesop Impact Report 2021

Macau

Our grant-making in 2021

At Aesop, we understand and take seriously our responsibility
to support the communities in which we work. The Aesop
Foundation Australia was established in 2017, and for its
first five years, the Foundation focused on literacy, literatureand storytelling nationally. Following the success of thisprogramme, the Foundation transitioned to a global grantmaker in late 2021. Our global strategy enables us to be more
public and purposeful with our philanthropy and social impact
agenda than ever before.

As 2021 was a year of transition for The Aesop Foundation,
our partnerships were divided across our existing and valued
organisations based in Australia, as well as new organisations
that have joined us through the Foundation’s global grantmaking programme. The Foundation’s global partners were
supported by our active and engaged employee philanthropy
committees across each of our four business regions. Aesop’s
philanthropy strategy guides the work of each Committee
and provides an overall framework which is locally informed
and globally aligned.

The Aesop Foundation now has the capacity and capability
to fund charitable organisations globally. In addition
to its new global status, in November 2021, the Aesop
Foundation purpose expanded from literacy and storytellingto include education, employment, the environment andemergency response in order to better meet the needs ofall our communities.
To enable our new global remit, the Aesop Foundation isescalating the efficiency and scope of its social commitments
by 20% annually. This starts internally with increased staff
involvement—and externally by identifying further partners towork with around the world.

We are on track to deliver
our goal to grant
AUD $40 million by 2030

The Aesop Foundation isfunded by 2.5% EBITDA ¹³
from Aesop. As the businessgrows, so too will theFoundation‘The value of our programme istransformational and not always
measured in the short-term…
Aesop understood that the
impact on people’s lives andcareers is long-term.’
Asylum Seeker Resource Centre‘Aesop is proud to have launched a
global social impact programme which isunderpinned by our ambition to grow ourphilanthropy in line with the growth of thebusiness. We will continue to expand ourportfolio of talented partners working todeliver a fairer more just world.’
Jules Chalmers, Head of Aesop Foundation¹³ EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization

Additionally, 2021 saw $2.5mn AUD in product donations
to organisations including women’s centres, hospitals, and
COVID-19 support. All product donations were local andThrough our global grant-making we are proud to partner with:
Voice of Witness
Advances human rights by amplifying the voices ofpeople impacted by—and fighting against—injustice
Photographers without Borders
Where storytelling inspires action and drives meaningfulchange towards a decolonized, united world.
Pan Intercultural Arts
Supporting refugee young people throughcreative arts and storytelling.

delivered through a combination of store donations andstrategic partnerships. Each of our signature stores can gift
products to support charitable causes. This expression ofgenerosity is intended to directly benefit the local communities
in which Aesop stores are based.

Our 2021 Australia-based partners:
The Wheeler Centre
Support for underrepresented writers of the future.
Story Factory
Support for core activities during the COVID-19 pandemic.
100 Story Building
Support for story hubs and COVID-19 additional support.
Stars Foundation
Supports Indigenous girls and young women
to attend and remain engaged at school.
Karrkad Kanjdji Trust
Support for traditional land conservation
techniques and indigenous education.
Melbourne Fringe
Support during the COVID-19 pandemic.

CREATE
supporting young people at STEM schools
through creative arts and storytelling.

Arts Project Australia
Support during the COVID-19 pandemic.

The Asia Foundation
Supporting refugees with access tomeaningful employment.

Asylum Seeker Resource Centre
Support for refugee education programmes
and COVID-19 pandemic.

Aesop Impact Report 2021

The Aesop Foundation

Aesop partner, The Karrkad Kanjdji Trust (KKT) wasestablished to protect, restore and enhance the naturalenvironment of West and Central Arnhem Land. It supports
Indigenous-owned land management organisations as they
implement environmental and cultural projects that reflect
the priorities and values of Traditional Owners.
The Nawarddeken Academy school is a remote indigenous
primary school that blends western knowledge with
Indigenous language and culture to achieve approximately
double the attendance rates and learning outcomescompared to local benchmarks. The school is a true

community success story, but it has an important task
to complete—recording and teaching local indigenous
language and cultural knowledge so that it is not lost within
this generation. The Aesop funding supported the creationof an Indigenous Language and Culture Curriculum, withbilingual learning materials and an interactive bilingual
literacy app representing a unique opportunity to preserve
the language, knowledge and culture.

The curriculum and the associated materials will beshared with an additional three remote schools, Manmoyi,
Mamdarwerre and Marlkawo in the region bringing the total
number of children targeted to 50 and 60 adults. Following
that, it will be shared with Gunbalanya School which has
approximately 400 students. The Indigenous language
and culture curriculum has the ability to reach over 2000
Kunwinjku speaking people (approximately 600 children).

Foundation funding across 2021

‘The Aesop Foundation has helped
us increase our accessibility locally,nationally and internationally and thisis such a difficult thing to achieve.’
Rowand Taylor, photo courtesy of the Nawarddeken Academy.

Arts Project Australia

Aesop Impact Report 2021

Indigenous Language and Culture Curriculum: Saving
a threatened language and raising first and second
language literacy in West Arnhem Land

Emergency response

Looking forward to 2022

In 2021, Aesop’s Anti-Racism Committee in America
pledged $USD 100,000 in support of five organisations
working to Stop Asian Hate. It also launched a Programme
designed to take a proactive and intentional approach toensuring all relevant potential suppliers have a fair and equal
opportunity to compete for business with Aesop.

Our next chapter will see the Aesop Foundation bring together
a legacy of partnerships in Australia, while building impactfulpartnerships across the Americas, Asia and Europe.

Prompted by concerned employees following the overthrowof the democratic government in Afghanistan, The Aesop
Foundation also made its first humanitarian grant outsideof Australia to Medicines Sans Frontières—supporting
the ongoing crisis in Afghanistan and standing in solidarity
with its people.

Business as a force for good

The Aesop Foundation transition from a national to a
global grant-maker. This means we will bring together alegacy of partnerships in Australia, while building impactfulpartnerships across the Americas, Asia and Europe.
The Foundation will prepare to scale up with efficiency andincreased impact. We will continue to have the capability
and resources to respond to world events as and when theneed arises with speed and agility as well as supporting
existing partners.
We will also continue to ensure that our grantmaking isdiverse, equitable and inclusive as we seek to build new
partnerships with those working alongside systematically
excluded communities. We will launch a new website
dedicated to the work of the Foundation and publish all of our
grants and learning. In support of our global philanthropy, allemployee charitable giving will be matched dollar for dollar.

However, it is not only in these single acts, but in ensuring we change ourmindset and dedicate ourselves to upholding our values in each decision
we make, material we purchase, and conversation we have with ourcustomers. This appreciation of the interconnection of all these acts willallow us to create real positive impact.
An MSF staff member inspects equipment in a ward for women to receive
care following c-sections, Khost maternity hospital, Afghanistan.
Photo courtesy oOriane Zerah.

At Aesop, and more broadly at Natura &Co, pay performance targets,
including long term executive pay performance targets, are aligned to key
environmental and social impact measures alongside financial measures.
For any given year, short and long-term targets are used to incentivise ourpeople to drive performance on priority areas. For 2021, the focus was onclimate, circularity and employee engagement.

Aesop Impact Report 2021

At Aesop, we believe our business can and should be a force for goodin the world. We’ve made efforts to embed this thinking in several ways.
We’ve set long term targets through our Commitment to Life, we’vealigned these to our employee and executive pay and as a part of our B
Corp certification requirements, and we have taken the step to change ourlegal articles to declare that our decisions as a business will consider all
stakeholders—employees, communities, customers, suppliers, and theenvironment—not just shareholders.

Proud to be B-Corp
Our B Corp Impact Score
Aesop is proud to be B Corp certified and we are pleased
to sit alongside more than 3500 other likeminded B Corp
businesses spanning over 70 countries. These include
our fellow Natura &Co sister brands, Natura and The Body
Shop. Certified B Corporations are businesses that meetthe highest standards of verified social and environmental
performance, public transparency, and legal accountability
to balance profit and purpose.
We took our own first steps towards becoming a B Corp in2018 and achieved certification in October 2020.
Becoming a Certified B Corporation is the result of steadfast
determination from many Aesop employees across thebusiness—from General Managers to Retail Consultants,
Digital Designers to Marketers.
Whilst we are proud of having achieved B Corp certificationin 2020, we acknowledge that this is but a milestone on ourjourney to adopt regenerative principles and operate as a triple
bottom line company with a strong commitment to continuous
improvement. Our re-certification is forecast for 2023.

Aesop Impact Report 2021

Aesop achieved
B Corp certificationin 2020 with a scoreof 87.1

24

Natura &Co business structure

Natura &Co Holding

Aesop

Natura &Co LatAm

The Body Shop

Avon International

Aesop Includes all operations
under the Aesop brand, except
those located in Latin America.

Aesop LatAm

The Body Shop Includes all
operations under The Body
Shop brand, except thoselocated in Latin America.

Avon International Includes
all operations under the Avon
brand, except those located in
Latin America.

NaturaThe Body Shop
LatAm

Aesop, Samcheong, Korea.

Aesop Impact Report 2021

Avon LatAm

Commitment to Life

Goal

MetricBecome Net Zero, delivering 1.5°C
20 years ahead of UN Commitment.

Target Timeline

2020

2021

2030

Reduced scope 2 market based emissions to zero through selecting
renewable energy tariffs and purchase of renewable electricity
credits (RECs). Obtained global carbon neutrality with Climate Active
certification for ANZ operations and South Pole Climate Neutral label.

In 2021, our greenhouse gas emissions were 32,157
tonnes of carbon (tC02e) across Scope 1, 2 and 3.
Obtained global carbon neutrality with Climate
Active certification for ANZ operations and South
Pole Climate Neutral label.

Work in progress through Natura &Co.

As part of Natura &Co, we are in the process ofsubmitting our science-based targets to SBTi
and we expect to receive their approval in
the coming months.

Net zero GHG emission
To address the
Climate Crisis andprotect the Amazon.

Science Based Targets initiative(SBTi) for all companies,
scopes 1, 2 and 3.
Biodiversity

To defend Human Rights
and be Human-Kind.

Footnotes

Our people

2022

Help create targets with a networkof partnerships(UEBT, SBTN, BfN, WEF).

2025

Work in progress through Natura &Co.

As part of Natura &Co we are part of the corporate
engagement for Science Based Target Network(SBTN). To help the construction of the SBTN
methodology, we are piloting the methodology with
our Natura Ekos line and fulfilled Step 1 of 5.

Gender balance: 50% women
onboard / senior team by 2023.

2023

46% women on senior team at Aesop.

40% women on senior team at Aesop.

Equitable pay,closing the gender gap by 2023.

2023

Natura &Co gender pay gap analysis complete.
A 0.9% pay gap remains unexplained at the group level.

The gender pay gap at Aesop has
been identified as -1%.
As part of Natura &Co, we reviewed we reviewed
various solutions to assess D&I data as we faced
data privacy and legislative issues in many ofthe markets in which Natura &Co operates. With
the support of an external consultancy, an online
survey tool will be used to anonymously gather
data from our employees to support theestablishment of our baseline.

Work towards 30%
inclusion, in management,of under-represented groups.

2030

Capability for demographic
baseline testing being assessed.

Living wage (or above)for all by 2023.

2023

Living Wage Methodology approved
to identify gaps globally.

Aesop Impact Report 2021

Commitment to life 2021 status update

1A - 98%
2A2C - 85%26

Commitment to Life

Goal

MetricMeasurable gains for consultants /representatives and sourcing
communities’ earnings, education,
health, and digital inclusion.

Our wider network

Increase investments in key causes
by 20% to U$ 600 million.

Promote our trusted and reliable
model for the future of direct sales.

Target Timeline

2020

2021

2030

Work in progress through Natura &Co.

In 2021, Natura &Co completed an initial pilot
project to measure the socio-economic impact thatour direct selling companies have on the lives ofconsultants / representatives in our network.

2030

The Aesop Foundation committed A$1.6 million to the Australian
Red Cross (for Australian bushfire relief) and our existing networkof partners to help them continue their work during COVID. Aesop
donated A$4.3 million of product to communities, medical staff andservices supporting family violence survivors.

A$ 5.8 million

2030

Work in progress through Natura &Co.

As the Chair of the WFDSA Ethics Committee,
Natura is leading activities to promote ethics
beyond compliance, continuously raising WFDSA
and DSAs’ self-regulatory standards (“The Code”)
above local legislation / regulation.

2025

32% of palm oil and derivatives obtained from Roundtablefor Sustainable Palm Oil (RSPO) certified source, a further 18%
is offset through purchases of Independent Smallholder
RSPO palm oil credits from Riau Provence in Indonesia.
Work in progress on Mica (Mica is not used in Aesop products),
Alcohol, Soy and Cotton in partnership with Natura &Co.

To defend Human Rights
and be Human-Kind.
Full traceability and / orcertification by 202 2025 –Palm Oil, Mica 6, Paper,
Alcohol, Soy, Cotton.

Palm Oil – 22%¹⁴
Mica 6 – N/APaper – 71%

Alcohol – 0%
Soy – 15.6%
Cotton – 1%

Adopt robust Human Rights policy
in line with UN Guiding Principles.

2023>90% of Direct Suppliers signed Code of Conduct.
>95% of Direct suppliers on SEDEX.
Produced UK and Australian Modern Slavery Statements.
Human Rights Policy & Due Diligence checkin development with Natura &Co.

Natura &Co’s new Human Rights statement
was unanimously approved by its
board of directors in 2021.

¹⁴ 22% of palm oil and derivatives obtained from Roundtable for Sustainable Palm Oil (RSPO) certified source, the remaining 78% is offset through purchases of Independent Smallholder RSPO palm oil credits from Koperasi Unit Desa (KUD) Pemura and KUD Marga Jayami in Indonesia and Phanom Land Settlement Cooperative and Smothong Sustainable Oil Palm Production Community Enterprise Group in Thailand.

Aesop Impact Report 2021

Human rights

27

Goal

Packaging circularity

Embrace Circularity andRegeneration

Formula circularity

MetricTarget Timeline

20% (or more) less packaging
material (in weight).

2030

50% of all plastic used to be ofrecycled content (in weight).

2030

49% of all Aesop plastic packaging manufactured
was made from recycled content.

50.8% of all Aesop plastic packaging
manufactured was madefrom recycled content.

100% of all packaging material:
reusable or recyclable
or compostable.

2030>83% of Aesop packaging material is reusable or recyclable.

82.7% of Aesop packaging material
is reusable or recyclable.

Offset through collection and reuseprograms to reach 100% responsible
disposal where recycling
infrastructure not available.

2030

A Rinse and Return program has been in place in Hong Kong
since late 2018 and launched in Taiwan in 2020. Total Aesop
packaging collected and diverted from landfill: 4.59 tonnes.

0.6%

95%+ renewable ornatural ingredients.

2030

86.69% of Aesop’s ingredients, according to ISO16128 standard,a globally harmonised standard providing guidelines on
definitions and criteria for natural-origin ingredients.

89.7% of Aesop’s ingredients, according toISO16128 standard, a globally harmonised
standard providing guidelines on definitions
and criteria for natural-origin ingredients.

95%+ biodegradable formulas.

2030

89% biodegradability of rinse-off formulations.

89.3% biodegradability of rinse-off formulations.

23 formulations completed in 2020.

As part of Natura &Co, a team with components
from all the companies of the Group was defined, aconsulting firm was hired (Quantis), and the scopeof the tool construction was defined in line with the
EcoBeautyScore Consortium.

100% of new formulas will havelower environmental footprint,
measured by life cycle analysis.

2030

2020

2021

3% reduction in overall Aesop packaging
material, achieved through recycled PET
lightweighting and screw-cap offering.

Aesop Impact Report 2021

Commitment to Life

28

Enviromemental impact

Metal

Wood / paper fibre

Packaging

2020

2021

Total weight of glass packaging.

479

760

Percentage of glass packaging that is from recycled and/or
certified material (% of total weight of all glass packaging).¹⁵
Total weight of metal fiber packaging (tons).

48

87

Total weight of wood paper fiber packaging (tons).

56

43

Percentage of wood / paper fiber that is fromrecycled and/or certified material.
Total weight of all plastic packaging (tons).

Plastic

Energy consumption¹⁵ Recycled content data has been collated throughout Q3 and Q4 of 2021.

13.7%

6.7%
350

468

59.83%

61.6%

Percentage of recycled content within plastic packaging(as a % of the total weight of all plastic packaging).

49.72%

50.8%

Energy consumed from nonrenewable fuels (MWh).

47

78

Energy consumed from nonrenewableelectricity purchased (MWh).

2416

3,134

Total nonrenewable energy consumption(electricity and heating & cooling) MWh.

2463

3,212

Total renewable energy (wind, solar, biomass, hydroelectric,
geothermal, etc.) purchased or generated (MWh).

594

597

Percentage of renewable energy(as % of total energy consumed).

19%

16%

Percentage of recyclable plastic packaging(% of the total weight of all plastic packaging).

Aesop Impact Report 2021

Glass

Metric29

WasteTotal emissions per
category (Tons CO2e)

Scope 3

Store design2021

Total waste generated.

462.08

Total waste used / recycled / sold.

262.28

Total waste disposed.

199.80

Scope 1

Scope 2

2020

69

70
0

Net Electricity market based.
Net Electricity location based.

1310

1,589

Purchased goods and services (product and non product).

10482

14,243

Fuel and energy related activities.

253

366

Upstream transportation and distribution.

9,560

10,344

Waste generated in operations.

141

61

Business travel.

1019

845

Employee commuting.

887

2,307

Downstream transportation and distribution.

235

395

Use of sold products.

38,937

61,896End of life products.

1,356

1,932

Total excluding use of sold products.

25,52232,157

Total including use of sold products.

64,46094,054

Sustainable Store Design Scorecard result.

Aesop Impact Report 2021

Metric6230

Gender
New hiresManagement level

Gender¹⁷
Voluntary
turnover rate
Management Level

GenderTotal employee
turnover rate
Management level

Metric2021

Total number of new employee hires

1,501

Total number of new employee hires - men

188

Total number of new employee hires - women

646

Total number of new hires- prefer not to say

14

Total number of new employee hires - leadership8

Total number of new employee hires - junior management

81

Total number of new employee hires - total

89

Voluntary employee turnover rate¹⁶27%

Voluntary employee turnover - men

25%

Voluntary employee turnover - women24%

Voluntary employee turnover - leadership

15%

Voluntary employee turnover - junior management

31%

Total employee turnover rate¹⁸29%

Total employee turnover - men

29%

Total employee turnover - women26%

Total employee turnover - leadership15%

Total employee turnover - junior management31%¹⁶ This refers to the proportion of employees who choose to leave an organization (such as resignation, retirement, early retirement etc.) over a set period (often a year), expressed as a percentage of the total employees.

¹⁷ The breakdown by gender consider the self-declatation of each employee. ¹⁸ This refers to the proportion of employees who leave an organisation over a set period of time (often a year), expressed as a percentage of the total employees.

Aesop Impact Report 2021

Social impact

31

Social impact

Share of womenin the worforce

Metric2021

Share of women in total workforce(as % of total workforce)

61%

Share of women in all management positions including
junior, middle, and top management (as % of total
management positions)54%

Share of women in junior management positions(as % of total junior management positions) ¹⁹57%

Share of women in top management positions(as % of total top management positions) ²⁰40%

Metric2020

2021

Code of Conduct

Number of breaches to Codes of Conduct,
specifically relating to serious and significant
investigations carried out by Ethics and Compliance.

1

3

Discrimination
incidents disclosure

Number of incidents of discriminationand harassment ²¹

1

1¹⁹ This metric refers to first-line managers, junior managers and the lowest level of management within a company’s management hierarchy. These individuals are typically responsible for directing and executing the day-to-day operational objectives of organizations, conveying the directionsof higher level officials and managers to subordinate personnel. ²⁰ This refers to management positions with a reporting line at most two levels away from the CEO. They include individuals who plan, direct, and formulate policies, set strategy, and provide the overall direction of enterprises /organizations for the development and delivery of products or services, within the parameters approved by boards of directors or other governing bodies. ²¹ Incidents of harassment or discrimination on grounds of race, color, sex, religion, political opinion, national extraction, or social origin as

defined by the ILO, or other relevant forms of discrimination involving internal and/or external stakeholders across operations in the reporting period.

Aesop Impact Report 2021

Governance and ethics

Footnotes

Aesop Impact Report 2021

For more information on our sustainability practices, please contact us at sustainability@aesop.com