Impact Report 2022

Maintaining Momentum‘Survival is never an accident. It’s always been a creative act.’ Ocean Vuong

Acknowledgementof Country

Contents

We acknowledge the Wurundjeri people, who
are the traditional owners of the lands on which
the Aesop Melbourne Office is located and
where
we
conduct
ourbusiness.
We
pay
our
respects
to ancestors and elders past and present.
Sovereignty has never been ceded. Aesop iscommitted to acknowledging and honouring allFirst Nation peoples’ unique cultural and spiritual
relationships to the land, waters and seas andtheir rich contribution to our society.

This report covers the 2022 calendar year.
During that time, Russia invaded Ukraine, thehumanitarian crisis in Afghanistan deepened, theUS Supreme Court overturned the decision thatguaranteed women’s abortion rights, the risingcost of living became a crisis for millions, and our
climate continued to warm at an alarming rate. Amid
this geopolitical, economic and environmental
turmoil, our people remain committed to making a
positive impact.

Introduction
Message from CEO
Our approach
Proud to be a B Corp

Nurturing Communities And Individuals
Philanthropy and Social Impact
Rapid response
Strategic partnerships
Diversity, Equity and Inclusion
Progress across the DE&I pillars
Launch of Ubuntu
Global Menopause Policy
Employee wellbeing and engagement
Focus on balance
Using our stores for good
Women’s libraries
Queer libraries
An environmental spotlight3
3

Our Planet
Our packaging
5
Progress on materials
Piloting circular systems
Interview with General Manager, Strategy, Sustainability
and Growth
The climate crisis
9
Emissions and reduction targets
The road to net zero
Our stores
14
A restorative approach
Our Supply Chain
17
Aesop’s Ethical Sourcing ProgrammeMission critical materials

21

24

28
29

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Message from the CEO

Our Approach

After the period of tumultuous disruption to our lives
ushered in by Covid-19, 2022 saw the resumptionof some kind of normality, while the experience of
those years will leave us forever changed.

Additionally, we propelled our journey towards
sustainability in store design by hiring our first
Sustainable Store Design Manager. This function
will enhance our capabilities in reducing the impactof our locations, while continuing to create unique
For Aesop, it was a year of considerable store experiences for our customers to enjoy.
momentum which built on the foundations laidin 2021, including our in-store refill trials and We couldn’t have achieved any of this without
climate approach.
the ongoing dedication and hard work of all
our employees across the globe. 2022 was my
For instance, by the end of 2021 we had already twentieth year at Aesop, and I can honestly say
met our objective of using 50% recycled material that I’ve never been prouder of our organisationin our plastic packaging by 2025. By the end and what we stand for—I am honoured to beof 2022, we continued to surpass this target, part of it.
reaching 54.7%.1 This is a really encouraging
result which we will continue building on, now that
we have reached our initial goal.
Michael O’Keeffe
CEO Aesop

In 2022 we also launched our first climate action
plan, which offers—among other things—a clear
framework to drive how we will reach net zero.We
also achieved our first overall reduction in freight
emissions (- 24%) from 2021 to 2022 having
introduced an internal carbon budget for logistics,
a new governance procedure for approving air
freight and implemented new internal processes
on stock management, inventory and planningthat improved our supply chain management.

1

We approach our sustainability work withhumility—understanding that this is a journey,that we will make mistakes, and that ourbusiness success fundamentally depends on ahealthy environment and society. As a B Corp™,
we add our voice to a growing chorus for change,championing the processes, conversations andconnections that may bring it about.
Proud to be a B Corp
Aesop first achieved B Corp certification in
2020, with a score of 87.1. We are pleased
and proud to join more than 6500 otherbrands from 89 countries on a mission to
make business a force for good. We continue
to strive to meet B Corp’s high standards ofverified performance, transparency andaccountability.
In 2022, following an internal assessment which gathered
over 200 data points, an action plan was developed acrossthe five B Corp themes of governance, workers, communities,
environment and customers. Work is now underway with all
Functional Leads to ensure meaningful improvements to ourpractices and processes towards our next recertification.

Based on stock shipped to market, excluding wastage.

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Our Planet
As global temperatures continue to rise aheadof predictions, the impacts of climate change willkeep increasing in both scale and seriousness.
Last year’s COP27 climate summit saw
some hints of progress, including a hard-won
agreement to help vulnerable countries deal
with losses and damages from the impacts ofclimate change. Climate justice must remain at
the forefront of our global climate approach.
Rising temperatures are not the only issues
affecting our planet’s health. Our addiction
to plastic, our extractive economy and ourdisrespect for other life forms are all contributing
to the biodiversity crisis through, for example,
pollution, poaching and habitat loss.
As a profit-making enterprise, Aesop mustacknowledge its role in contributing to thiscrisis, and accept its responsibility to deliver
rapid, ambitious change. We are working hardto transform our business model from linear anddegenerative, to circular and regenerative—
creating positive impact for our people,
customers and planet. It is a journey we areproud of and passionate about.
This chapter outlines our approach and key
actions from 2022, including our work to make our
packaging, stores and ingredients more circularand regenerative, as well as our progress toward
our goal to become net zero.

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Our Packaging
Packaging plays a critical role in the Aesop story. It embodies our brand while delivering exceptional
products and customer experience. However, to continue providing this kind of value, our bottles,
boxes, jars and tubes must stop generating greenhouse gas emissions and waste.
Most of the world’s packaging is designed for a linear system—take, use and dispose. This
extractive, wasteful model is inherently unsustainable, and our personal and planetary health issuffering as a result. At Aesop, we have made changes to immediately reduce our impact, such as
switching to post-consumer recycled material and lightening the overall weight of packaging. We
are at the start of this journey but know we must continue a rapid transition to a circular system thatcreates positive impact at every step.
In this chapter, we explore the progress toward our packaging goals, looking at our materials and at
how we are engaging customers on our circular journey.

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Our Packaging
Progress on Materials

Award winners

Aesop’s packaging is mainly made from four materials: in 2022, we used
525 tonnes of glass, 417 tonnes of plastic, 76 tonnes of paper or card,and 59 tonnes of metal.

We warmly celebrate the awards received from the Australian Packaging
Covenant Organisation in 2022. Nominated by our peers, our teams
were recognised for the signifcant efforts they made to reducepackaging material use and encourage reuse.

2022 saw good progress toward our packaging goals. One goal inparticular is well ahead of schedule: in 2022, we exceeded our target
for 50% of the plastic (reaching 54,7%) used in our plastic packaging
to come from recycled content by 2030. Having surpassed this target,
it now allows the business to prioritise progress across other metrics,
particularly our target of 100% reusable, recyclable or compostable
packaging by 2030. In 2022, we reached 83%.

Aesop was awarded:• Outstanding Achievement in Design & Procurement
This celebrates collaboration between our Packaging and Procurement
teams, who reviewed our sourcing practices and, through packaging
design, reduced use of virgin plastic. As a result of this and otherprojects, Aesop decreased its use of virgin plastic by more than 50%.

It is critical that we accelerate our work in this area, further progress
will come from ongoing materials innovation and from supporting ourcustomers to reduce, reuse and recycle their packaging.

2030 Target• Industry Sector Award (Healthcare & Scientifc)
This award recognises Aesop’s efforts in overall material reduction andreuse, including our South Yarra in-store refll trial (see below). It also
notes the introduction of our roadmap and efforts to ensure a clear planand tracking of initiatives.

2021 Results

2022 Results

Status100% of packaging to be reusable, recyclable or compostable

82,7%

83,0%

In Progress

50% plastic packaging material used is recycled

50,8%

54.7%

Target Achieved>20% weight reduction% of weight reduction compared to baseline year (2019)-24,2%-23,7%

Target Achieved –to be maintained to 2030

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Use
Enjoy your Aesop product

Our Packaging

Rinse
Wash out your bottles
with warm water

Piloting circular packaging systems
To reach our circular packaging goals, we must make it
as easy as possible for customers to reduce, recycle andreuse their Aesop packaging. Currently, we do this throughtwo models: in-store refills (initially available in two stores inAustralia) and Rinse and Return (a low-impact solution forcustomers in countries that offer limited recycling).
In 2020, we ran a remote refill trial in Adelaide, Australia.
Building on this, in 2021 we launched an in-store refill trial inSouth Yarra, Australia. This trial continued to enjoy strong
customer engagement throughout 2022. Forty percent ofcustomers who bought our Resurrection Aromatique Hand
Wash, our bestselling product, returned to refill it.
As a result of this success, we have expanded our in-store
refill offering to our QV store in Melbourne. Aesop QV is
located inside a shopping centre, which provides a valuable
opportunity to trial refills in a different setting.
Alongside this, we operate successful Rinse and Return
programmes in Hong Kong, Macau, Taiwan, Singapore,
Malaysia and Korea, with Japan launching in early 2023.
Where some of these markets lack kerbside recycling, thisprogramme makes it easier for customers to recycle theirpackaging.
In order to continue to advance these programmes at pace, inlate 2022 we launched our new Circular Innovation HUB. The
HUB is an agile global function tasked with overseeing anddelivering on circular workstreams that ladder up to our 2030
sustainability goals.
The HUB will continue the work on our core refill programmes,
including the continued support of an Aesop refill solution
both in-store and at-home among other circular initiatives.

RecycleOur local recycling partner
collects the empty vessels
and takes them for recycling.

ReturnBring back to store and placein the bin, or give to one of
our consultants

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Our Packaging
Interview with

Catherine O’Dea— General Manager, Strategy, Sustainability and Growth
What is Aesop’s vision for circularity?

What have we learnt so far on our circularity journey?

At Aesop, we see the climate and nature crisis as the defining
challenge of our time. In response to this, we see an opportunity
to transform our business model from one that is linear and degenerative to one that is circular and regenerative—benefitting ourpeople, our customers and our planet.

It is inspiring how engaged our customers are in circularity andsustainability.There are many solutions available on the market
today—whether to address packaging, ingredients, or othercircular materials—but not all of these really equate to a moresustainable future. It has been important for us to understandthe challenges that Aesop and its customers face and assess
the most effective solutions. We have a long way to go on ourjourney, but we know we have the support of our customers to
get there.

We are evolving our approach to design, applying circular principles to transform our products, packaging and operations. As
we embark on this transformation we will strive for progress overperfection, ensuring we test and learn to establish long-term solutions for our business and our customers. Circularity offers us
opportunities to create long-lasting conversations with our customers. We want every interaction to be one to remember, andcircularity will give us more and more ways to surprise and delight.We will partner with our customers on this journey to ensure
they feel empowered in choosing a recyclable or circular option
with Aesop.
There is constant innovation in circularity, how does Aesop
determine the right solution for our customers?
Circularity requires us to make some choices outside of our normal process as it really demands a shift within customer behaviour.Therefore, more recently we have been engaging with ourcustomers directly to help understand what their expectations
and needs are when it comes to circularity. This is a relatively
new way of approaching things for Aesop, but one that has proven to be successful in putting customers’ needs at the centreof our decision-making processes while navigating the compromises that circularity inevitably requires.

How are you engaging customers on this journey?
Is there any demand from them for change?

For example, we are excited by new return and reuse models that are coming into the market, butthese are only better if our customers participate. It
is the partnership between brand and customer thatallows these types of innovation to flourish.
Outside of packaging, how else is Aesop
pursuing circularity across the business?
We’re working with external partners to explore ways
to contribute to a regenerative economy, throughingredient and sourcing changes as well as new formulations and formats that simplify circular models
and reduce our impact.

We’re very lucky to have our retail consultants who share feedback with our product teams around the needs of our customers.There is a huge demand for more sustainable products,
and we’re putting a lot of effort into finding the right solutions
for this.
What do you see as the most exciting innovations incircularity?
We are at an exciting moment for circularity, in that we areseeing innovation across many sectors that aim to provide solutions to our linear systems. However, these innovations musthave an opportunity to participate and embed in the circular
economy, or they can end up contributing to further waste.
That’s why it’s important for us as a consumer brand to engage
with the needs of our customers, encouraging their behaviourchange to participate in these news models, and offering brandexperiences—both in-store and online—that facilitate this.

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The Climate Crisis
In early 2023, the Intergovernmental Panel on Climate Change(IPCC) shared its latest report, issuing a ‘final warning’ on
the climate crisis as greenhouse gas emissions continue torise. The report brings together the research and insights ofhundreds of scientists but can be summarised in one sentence:
act now, or it will be too late.

In 2022, having developed the framework of our Climate Action
Plan, we at Aesop focused on modelling our decarbonisation
pathway in more detail, and identifying the projects andpartnerships that will deliver the biggest carbon reductions.
We are also working to digitalise our environmental accounting,ultimately giving our business much greater visibility acrossa wide range of key indicators, starting with our carbon
emissions. This will improve the accuracy and transparencyof our reporting, while helping to keep us accountable to ourcommitments.

Upstream

Suppliers
Sourcing raw materials and ingredients, and partnering with our manufacturers.
Raw materials

Contract
manufacturing

Upstream transportationand distribution

While this work progressed, we were pleased to see
encouraging reductions in our freight emissions having
implemented a carbon budget for air freight in 2022 andimproved our supply chain management and governanceprocedures to deliver against it. The establishment of our firstever European manufacturing partnership—which came online
in 2022 with capacity growing moving forward—will deliver
further reductions in our emissions.

Downstream

Aesop operations
Running our business, including our offices and stores around the world.
BusinesstravelEmployeecommuting

IT equipment

In 2023, we also plan to conduct a Climate Risk Assessment tobetter understand where we need to build our climate resilience.
There are also plans to set more functional carbon budgets, toscope the feasibility of low-carbon freight solutions, to continue
seeking feasible alternatives to carbon-intensive surfactantsfor our formulations, and to convene climate salons with otherbusinesses exploring common challenges we all face in striving
for net zero and seeking to identify and share solutions.

Operating ouroffices and stores

Customers, and end of life
Getting our products to our customers, and their use and disposal of them.
Downstream
transportation anddistribution

Use of soldproducts

End of life
products

9 / 42Aesop Impact Report 2022

1.05%

3%

EmployeeCommuning

The climate crisis
Our Footprint

4%

For calculation of our 2022 footprint, we
worked with Watershed for the first time,a digital carbon accounting platform thatenables businesses to drive deeper
accuracy and granularity and of theircarbon footprint across scopes 1,2
and 3. As a result of this work we havecaptured and brought within our footprint
calculation additional emissions frompurchased goods and services andimproved the methodology being used
across some other key emission areas.
This process (coupled with strong growth
driven by our expansion into China andthe global easing of previous covid
restrictions on trading) has seen ouroverall emissions increase.

End ofProduct Life
and Waste

However,
despitethese
overallincreases, for the categories of emissions
falling within the boundary of our 2030
Science Based Target for Scope 3 weare pleased to report a 13% reduction incarbon intensity per product unit driven
by reductions in our freight emissions.
We look forward to continuing to build on
this strong progress in 2023.

11%

Raw Materials

7%

Packaging

14%

Transport of Products

5%

Product
Manufacturing

16%

Digital, Data & IT

25%

tCO2e

Scope 1Business
Travel125

Other Goods & Services
and Fuel & Energy-Related Activities

15%

Furniture & Fit-out

Scope 2
2,138
Scope 3.1 (excluding 3.11 Use of Consumer Goods)
56,660

Scope 3 Category (excl. use of product)

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Aesop Impact Report 2022

The climate crisis
10,000020.00030,000

Scope 3 Emissions within SBTi
In June 2022 the Scienced Based Target Initiative validated a 2030
science based emission reduction target which applies to all of our scope
1 and 2 emissions and 67% of our scope 3 emissions (represented by thecategories above). In 2022, compared to our projected Business as Usualemissions, we achieved an overall reduction of 13% in our carbon intensity(per product unit) for the categories falling within the boundary of the scope
3 SBT target.

2021 Ach.1al

Carbon neutrality and offsetting

22~11 022022 Ach.1al,2022 Forecast~- -- I•
1- ,- - --- --

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1111 Eol of sold pmd1.1cts.

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~27.945

Business 1raval

Ernµ!o,yee Co mrnu~ing

Pac,'kaging

Upstream Transport and Dis1ribulion

Raw Materia:I

Since 2018, our Australian operations have been certifed
carbon-neutral under the Australian Government’s Climate
Active scheme. It is important to us, as a business with the
majority of manufacturing operations in Australia, to takepart in schemes such as this. This year, in order to achieve our
Climate Active certifcation, we are proud to have invested insupporting an Indigenous-owned & directed not-for-proft
Aak Puul Ngantam (APN Cape York) in partnership withBalkanu Cape York Development Corporation, on a Savanna
Burning project comprises 370,000 hectares of land on
Traditional Homelands. The income derived from the carbon
credits we purchased is supporting a range of activities thatAPN Cape York runs alongside the carbon project which
beneft the local community.
We have also mitigated all of our global Scope 1, 2 emissions
as well as emissions from our upstream and downstream
logistics. Recognising that effective carbon removal is an
important part of achieving net zero, we have sought (inoffsetting our scope 1 emissions) to support an innovative
Australian biochar project, with the aim of playing our part in
helping to get this novel technology to scale. The project uses
organic residues (agricultural crop and timber wastes) thatwould otherwise be burned or land-flled (e.g., husks, straws,
woodchips) and through a pyrolysis process creates a biochar
product that permanently traps carbon. When spread on land
the biochar then has potential to offer wider benefts in termsof improved soil health.

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Aesop Impact Report 2022

The road to net zero
The below summarises how Aesop is decarbonising andmaking its operations and supply chain more climate-resilienton the journey to net zero.

1. Sourcing our ingredients more sustainably
Sourcing the ingredients in our formulations
accounts for 11% of our Scope 3 emissions.
Innovation will further reduce the carbon footprintof our raw materials, whether it is throughdeploying next-generation biosurfactants or bysupporting our essential-oil suppliers to adopt
regenerative agriculture techniques.

2. Engaging our suppliers in our low-carbon
missionWe are working with our suppliers to understandwhere they are on their own decarbonisation
journeys and to encourage them to develop
their own carbon reduction strategies. Goingforwards our plan is to prioritise working with
suppliers with existing science-based emissionreduction targets or who have committed tosetting one.
In 2022, we developed new sustainability criteria
for the procurement of major suppliers.

3. Transitioning our manufacturing portfolio

4. Driving toward cleaner logistics

5. Removing carbon from the atmosphereAs our business has expanded globally, so
has our manufacturing portfolio evolved. By
making sure we build capacity for regional
manufacturing, we can drive down emissions
from freight. In 2022, we developed newsustainability criteria for the procurement ofmajor suppliers.

Reductions will come from optimising routes,
improving supply chain management, reducing
reliance on air freight, selecting logistics
partners with carbon reduction strategies inplace, and transitioning to low-carbon modes oftransport wherever possible.

In line with the recommendations of the Oxford
Offsetting Principles, as we prioritise investing
reductions in our own supply chain, we aretransitioning away from offsetting the entirety of
our global carbon footprint and claiming carbon
neutrality. Purchasing a smaller number of offsets
focused on high quality carbon removal as
opposed to carbon avoidance wherever possible.
We will also aim to invest in projects that support
early stage carbon removal technologies that offer
long term carbon removal of greater permanence.

In 2023, we plan to scale up work with our French
manufacturing partner to meet a greater shareof customer demand in our European and North
American regions.

In 2022 this approach has already started todeliver results with our first overall reduction in
freight emissions (- 24%) from the year before.

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The road to net zero

6. Embracing low-carbon design for ourstoresGood design has always been central to the
Aesop ethos. In our pursuit of net zero, we will
improve both the physical fabrication of ourstores and their operational energy efficiency.
In 2022, a new hire joined the sustainability
team—our first Sustainable Store Design
Manager. This role is dedicated to reducing theenvironmental impact of our stores, reporting on
progress and keeping us accountable.

7. Choosing lower-carbon ways to travel

8. Switching to renewable energy

9. Evolving our packaging portfolio

We worked with our corporate travel provider,
Travelperk to analyse our travel data and identify
both the factors and trends that are driving ouremissions and the most effective interventions
we can deploy to reduce our footprint. We
will use this analysis to develop a new lower
carbon travel policy. We will also continue to use
Travelperk’s tool to align our travel choices withour carbon goals wherever possible.

Where possible, Aesop sources 100%
renewable energy directly from electricity
suppliers for all stores and offices. Where thisis impossible because of a lack of availability
or pre-existing lease contracts, we purchaserenewable energy certificates (RECs). We arealso working with our contract manufacturers
to encourage them to transition to renewableenergy as part of our decarbonisation strategy.

Aesop packaging is made using four mainmaterials—glass, plastic paper, and metal—
each of which creates carbon emissions
throughout its lifecycle. We will fulfil our net zeroambitions by continuing to deliver against our
packaging roadmap. Progress is good. In 2022,
we exceeded our target for 50% of the plastic
used in our plastic packaging to come fromrecycled content by 2030.

10. Evolving our product portfolio in
support of a circular economy
Today’s products will not deliver tomorrow’s lowcarbon world. In particular, the systems we use
to deliver products to our customers must keep
evolving. In 2022, we increased the numberof markets that provide Rinse and Return,making recycling easier for our customers
living in regions typically lacking this type of
infrastructure.

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Our Stores
A restorative approach
Entering an Aesop store should feel like aseamless and nourishing experience. We takedesign seriously because we believe it can— and does — improve lives. This approachis grounded in a deep respect for place. For
new store locations, we seek opportunities
to align with our cultural and environmental
neighbourhood. This helps us go beyond
minimising our negative impact, and toward
nurturing connection between people andnature, using materials and practices that add
something of value to the places where we
operate.

Aesop Taipei 101
The wooden furniture of the temporary store waspainted and repurposed in the signature store.

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Aesop Sustainability Report 2022

Our stores
Embedding sustainable design
In 2022, Aesop hired its first Sustainable Store Design
Manager. This role breathes new life into our design principles,
supporting the wider store design team to reduce negative
impact while creating value throughout the construction andoperation of our stores.
Our Sustainable Store Design Manager has energyengineering experience, which provides capacity to work on
the energy performance of our stores in order to reduce theirconsumption.
Sustainable practices in Seongsu
In last year’s report, we talked about the Seongsu project—ourflagship sustainable store in Korea, built in 2021. The project
involved working with local artisans, using traditional materials
and construction practices, as well as installing a low-impact
irrigation system.
We are pleased to report this work is bearing fruit: in 2022 ourSeongsu store used almost 10% less electricity per square
metrethan an equivalent street store in Korea.
A look ahead
With the success of Seongsu and the recruitment of ourSustainable Store Design Manager, we are eager to continue
improving the impact of our stores as our business continues
to thrive.
Our Sustainable Store Design Manager is currently upgrading
our Sustainability Scorecard. This tool, originally launched in
2019, measures the social and environmental impact of Aesop
stores, from construction through to decommission. The new
and improved tool will accelerate progress, helping us evaluate
the embodied carbon of the materials we use, and favour
reused, recycled and local materials across our stores.

Aesop Collins Street
The ceiling is made of upcycled Aesop bottles, andthe tiled floor is made from recovered travertine stone.

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Our stores

Aesop Cambridge
Decorative reed—beautiful, versatile and quick-growing.

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Our Supply Chain
To create formulations that are truly valuable for our business,
our customers and our world, we must know the provenance of
our ingredients. However, global supply chains are incredibly
opaque—even when sourcing from reputable suppliers, as we do.

In 2021, we reviewed and strengthened our environmental andethical policies. In 2022, we built on these strong foundations,launching supplier sustainability strategies, rolling out ethicalsourcing training, revising our code of conduct and publishing oursustainable procurement policies.

As part of our supply chain transformation, we are focusing
on five critical materials as high-risk for potential labour and It is worth noting that our supply chain is both affecting andenvironmental exploitation. Our goal is to have full traceability and/ already being affected by climate change. As we seek to reduce
our supply chain’s environmental impact, we must also increaseor certification for these five ingredients by 2025.
its resilience to the reality of increasing global temperatures.

January

February

April

May

June

July

AugustNovember

DecemberFirst ever carbon budget
set for freight—in line with
Science-Based Targets
initiative

First-ever supplierenvironmental
sustainability criteria(SESC) developed

Natura &Co Code of
Conduct updated toreflect sustainability
best practice

Five ethical-sourcing
training workshops
delivered acrossall regions

Sustainability KPIs
embedded into futurecontract framework

Project kicked off fortrialling B2B deliveries
using electric vehicles>50% reduction in freight
emissions intensity
compared to CY21
recorded

Ethanol and soy criticalmaterials policies formallyapproved and published

Aesop took part ina review of the Natura&Co Commitment toLife targets

First draft of Climate
Action Plan completedwith functional priorities

Palm, paper and cotton
sustainable-procurement
policies formallyapproved and published

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Our Supply Chain
Aesop’s Ethical Sourcing Programme
Aesop’s supply chain has a global reach andinfluence. We have over 150 Direct Suppliers,
such as our providers of essential oils, andmany more Indirect Suppliers, like our cleanersand consultants. Although many of our Direct
Suppliers are located in Australia, the majority
have international supply chains.
Our Ethical Sourcing Programme brings together the policies
and processes we use to collaborate with our supply partners.
The programme aims to ensure our global supply chain uses
environmentally responsible processes, provides safe working
conditions, treats all workers with dignity, and protects humanrights.

69.14%of Direct Suppliers (by count) signatories
of Code of Conduct; 90.84% by spend

25

Third-party ethicalaudits completed

By the end of 2022,

73.5%

of Direct Suppliers (by count)active on Sedex; 94% by spend

Our Modern Slavery Statement is a key component of Aesop’s
Ethical Sourcing Programme. It provides a comprehensive
summary of the ongoing actions Aesop takes to understandand minimise modern-slavery risk in its operations and supply
chain.

Choosing the right partners

Aesop has developed and deployed a new points-based
rating system to evaluate suppliers’ environmental
performance. Field-tested in early 2022, the system
uses ‘yes or no’ questions to get a quick and reliable
understanding of sustainability performance, and to easily
rank potential new suppliers. The system is now embedded
in Aesop’s process for supplier selection and onboarding.

Assessing and monitoring supply partners
Aesop uses the Sedex platform to assess and monitor the
ethical and environmental performance of its suppliers.
When appropriate, Aesop will ask a supplier to complete a
self-assessment questionnaire (SAQ) on Sedex. We use this,along with Sedex’s risk assessment tool, Radar, to determine
a supplier’s risk level. If a supplier is rated high or medium
risk, we require either a new or recent ethical audit.
Our preferred audit methodology is the Sedex Members
Ethical Trade Audit (SMETA). Audits are graded and,
where necessary, a Corrective Action Plan to address noncompliances is agreed upon. Once concerns have beenaddressed, high-risk sites are approved for 12 months, andmedium-risk sites are approved for 24 months.

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Our Supply Chain
Mission-critical materials

Each and every ingredient in our formulations
is an important part of our sustainability story.
The richer the picture we can build of the quality and provenance of our materials, the more fully we cancreate the kind of positive social and environmental change we need. Aesop aims to have full traceability
and/or certification for five critical ingredients by 2025.
In 2022, all policies were developed, refined and approved for all critical materials.

Palm oil

Ethanol

Cotton- Created a dashboard to measure Roundtable for
Sustainable Palm Oil (RSPO) -certified palm oil,
improving data visibility and forecasting.

- Natura &Co policy on ethanol formally approved
and published in November 2022.

- Placed and received our first order of recycled(70%) and organic (30%) cotton, heavily contributing to the uptick in policy-aligned volumes- The palm oil we use is 22.87% RSPO Mass Balance
certified, building on 22% from 2021. In 2022, throughdata cleansing and supplier material verification we
discovered further materials containing conventional
palm. We will continue regular monitoring to keep
working toward our critical-materials goals. The
remainder will be offset with RSPO Book & Claim
credits.

Paper- In 2022 we published our sustainable procurement policy for paper and 89% of our volumes weresourced in line with critical-materials policy.

- Traceability: cultivation origin of our ethanol
feedstock is known for 90% of our 2022 volumes.
- 0% of our volumes were certified.

- 98%+ cotton sourced from India.
- 58.14% aligned with policy.

Soy- Natura &Co policy on soy formally approved andpublished in November 2022.
- 46.19% of the soy we use was sourced in accordance with the policy. Given the complex nature ofsoy supply chains and the success of our palm traceability study, Aesop will be partnering with Action
for Sustainable Derivatives to complete a traceability study on our soy feedstocks to gain a deeper andwider understanding of the origin of our soy.

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Aesop Impact Report 2022

Nurturing
Communities
and Individuals
In a world of increasing division, investing inpeople and communities can create healing
and harmony. Aesop is committed to supportingthe communities we serve, internally andexternally. In practice, that means everythingfrom ensuring our company practices andpolicies create belonging and empowerment,
to supporting our people to volunteer, donate or
campaign for issues they care about.
Nourishment can come in many forms—from
how we make and sell our formulations, to how
we invest in our professional relationships,
to how we imbue our physical spaces withpurpose. It is through the daily practice of ourvalues that Aesop stays true to its nature andnurtures the world we live in.

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Aesop Sustainability Report 2022

Philanthropy
and Social
Impact“The Aesop Foundation believes those directly
impacted by exclusion have the courage,
ability, and passion for creating a better world.
As a global grant maker we remain committed
to supporting lasting social change and willcontinue to priortise our philanthropy for bothpeople and planet as we scale our funding
over the next seven years”.
Jules Chalmers, Head of Aesop Foundation
No brand is an island. At Aesop, we believe
business should add value to the world aroundit, rather than extract as much profit as possible.
We take this responsibility seriously, witha commitment to grant at least AU$40m tocharitable causes by 2030, as well as donate 1%of employee time to volunteering, and donate
AU$14m worth of product to charitable causes.
In 2022, Aesop completed its first full year of a
global philanthropy programme, building on five
years of grantmaking in Australia. We continued
to support strategic Australian partnerships,
while expanding our portfolio internationally.
As per our public commitment, this included
increasing investments in social causes by 20%.
We also matched (and will continue to match) all
employee charitable giving, dollar for dollar, withno upper limit.
Image provided by Aesop Foundation partner, MSI

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Aesop Impact Report 2022

Philanthropy and Social Impact
Employee involvement

Rapid response

The Aesop Foundation is supported by four regional
employee committees and works closely with our three
Employee Resource Groups. In line with our philanthropy
strategy, grantmaking is aligned with Aesop’s values. We
are proactively diverse, equitable and inclusive, and havecontinued to build partnerships with those working alongside
systematically excluded communities.

In 2022, we used our new global philanthropic reach torespond to world events.
Solidarity with Ukraine
In response to the Russian invasion of Ukraine in February2022, the Aesop Foundation moved quickly to approve grantsof US$25,000 each to four charities—Save The Children,
Médecins Sans Frontières, the International Rescue
Committee and the UN Refugee Agency (UNHCR).
Aesop stores were also encouraged to use their monthly
product donations to support local organisations that help
refugees and displaced people.

AU$11.2m

granted by the Aesop
Foundation since 2017

We continue to stand in solidarity with the people of Ukraine
and wholeheartedly hope for a swift and peaceful end to thisconflict. Aesop has stopped all trading in Russia. As part ofour ongoing commitment to humanitarian aid and to ensure
we are responding even when there is no media attention,
we entered into a five-year partnership with Médecins Sans
Frontières. The Foundation is providing unrestricted support
for MSF with a total commitment of AU$1,270,000 over thisperiod. Aesop has a long-standing relationship with MSF,
which first began in the early days of the business with MSF
Australia.

AU$3.1m

granted during 2022, with afurther $4.4m committed in
multi-year partnerships

26,000employee volunteering
hours 1

Protecting bodily autonomy
In June 2022, the US Supreme Court overturned Roe v. Wade,leading to restricted access to safe abortions for millions
of women. In respo nse, the Aesop Foundation donated a
total of US$100,000 to two organisations—the Center for
Reproductive Rights and MSI Reproductive Choices.
Aesop also altered its healthcare policy in America. Any
employee living in a state that restricts abortion rights can
now access financial support to cover travel expenses(including accommodation and food) to the nearest legallyavailable reproductive health care service.

AU$2mproduct donations

AU$100,000

matched donations

AU$200,000

emergency funding¹ Recorded volunteer hours by Aesop employees in 2022.

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Aesop Impact Report 2022

Philanthropy and Social Impact
Strategic partnerships
Alongside the Foundation’s emergency response grantmaking,it has continued to invest in organisations that seek to make apositive impact across education and the environment. In 2022,
the Board approved AU$7.5m worth of investments into a rangeof existing and new partners.
Our 2022 partners
100 Story Building, All Out, Asylum Seeker Resource Centre,
Breaking Barriers, Centre for Reproductive Rights, Create,
Everyone’s Invited, Indigenous Climate Action, IRC, Karrkad
Kanjdji Trust, Library for All, Luminary Bakery, Médecins Sans
Frontières, Melbourne Fringe, Mission with a Vision, MSI
Reproductive Choices, My Planet Now, Outright International,
Orka Project, Pan Intercultural Arts, Photographers without
Borders, Rebuild by Design, Refugee Community Kitchen,
Room to Read, Save the Children, Seeding Sovereignty, The
Asia Foundation, UNHCR, Voice of Witness, War Child, Writers
South Australia.
Looking ahead
In 2023, the Aesop Foundation will continue to increase its
financial commitments, in line with its 2030 giving goal. The
grantmaking programme will be further enhanced through theapplication of a theory of change that seeks to maximise its
positive impact. We are also exploring how best to share ourlearning and provide additional benefits to all our partners.

Aesop Foundation partner, Médecins Sans Frontières

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Aesop Impact Report 2022

Diversity, Equity
and Inclusion
Since day one, Aesop has keenly felt its
responsibility to the communities it serves,both internally and externally.
In 2022, we continued to embed our Diversity,
Equity and Inclusion (DE&I) programmeof work into our global practices, ways ofworking, policies and behaviours across
our organisation. Continuing to strengthen
Aesop’s Employee Resource Group (ERG)
programme—safe spaces for colleagues withshared lived experiences— fostered belonging
and support for historically and systemically
excluded people and communities. These
groups drive awareness on key issues thatparticularly impact those communities, andacknowledge and celebrate key cultural andreligious moments in the year.
In this chapter, we offer an update across thefour pillars of our DE&I strategy.

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Diversity, Equity and Inclusion
Progress across the DE&I pillars
One year on from the launch of the Aesop DE&I strategy, progress continues apace across each of its
four pillars.The strategy was aligned to our targets across gender balance, equitable pay, living wage
and representation of diverse groups at the management level.

1 Workplace: creating a safe and inclusive 2 Workforce: building a diverse workforce 3 Customers and communities: demonstra- 4 Insights: gathering insights to understandworkplace where colleagues are empowered that allows all colleagues to develop to their ting that DE&I is at the core of how we show the experiences of our people and how weand feel like they belong.
full potential.
up with our customers, communities and the need to transform.
marketplace.
• Launch of Aesop’s Global DE&I Policy, outlining ourcommitments and expectations.
• Launch of a new Employee Resource Group (ERG)
focusing on issues of race, ethnicity and culture.
• Rich calendar of events and activations from Aesop’s
ERGs.
• Launch of Aesop’s Global Menopause Policy.

• Continued to embed inclusive hiring practices within our
recruitment process.
• Introduced ‘Inclusion’ as a formal Aesop Capability—
an internal protocol that outlines essential qualities,
behaviours and skills for Aesop employees.

• 1,000 completions of a new learning module for retailteams, focusing on creating inclusive experiences forcustomers with diverse needs.
• Ongoing partnership with Beam, a social enterprise
supporting refugees and people experiencing
homelessness. Through the partnership, Aesop
provided employment opportunities and workshops for
CV-writing and interview skills.
• Expanded the Aesop Queer Library initiative to nine
locations across five countries, giving away over 35,000
books.

• 58% colleague participation in the DE&I demographicdata collection programme. Following an initial launch infive markets in 2021, the programme was extended tocover all but two markets in April 2022.
• Employee feedback from internal surveying shows
steady progress in colleague sentiment acrossthe categories of Inclusion, Speak my Mind, Equal
Opportunity, and Belonging.

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Aesop Impact Report 2022

Diversity, Equity and Inclusion
Throughout 2022 we remained focused on making progress toward our goals—including creating
and fostering a more equitable, inclusive and safe environment for our colleagues at Aesop.

Target2021

2022

Gender balance:
50% women on board / seniorteam by 2023

40%

46%

Equitable pay, closing thegender gap by 2023

-1%-0.58%

Carried out the relevantmarket-by-market legal
due diligence to eventuallyenable us to capture ourdemographic baseline andhelp us measure progressagainst this goal.

Formally launched Aesop’s
first ever DE&I demographic
data collection programme,
an important first step toward
understanding our baselineof where we stand today inrelation to our goals and as ameans to measure progressagainst our targets.

1A—98%

1A—98%

Work toward 30% inclusion,in management, of underrepresented groups—
in terms of racial or ethnic
background, sexual
orientation and gender identity(LGBTQIA+), socio-economic
disadvantage, and physical ormental disability—by 2030.

Living wage (or above) for all by
2023 (1A1)
1

1A is one adult.

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Aesop Impact Report 2022

Diversity, Equity and Inclusion
Launch of Ubuntu
In 2022, a new ERG, Ubuntu, was formed by Aesop staff.
Ubuntu is Aesop's Race, Ethnicity and Culture ERG, with a remit
to build connections between colleagues through celebration,
education, advocacy, and sharing and participation of othercultures. Ubuntu’s vision is for Aesop to be a place of belonging
for systematically excluded and marginalised communities.
Ubuntu has been formed as an evolution of the valuable workof the Anti-Racism Committee (ARC), which was established in2020 following the murder of George Floyd.
Ubuntu joins two other ERGs at Aesop. PRISM—a space forour global LGBTQIA+ community—and Aesop Women – whichlooks to address the issues facing all women in the workplaceand beyond. Aesop ERGs have a combined membership ofover 500 colleagues.
Global Menopause Policy
In 2022, the Aesop Women ERG led the launch of Aesop’s first
Global Menopause Policy. The group helped raise awarenessof the new policy globally, which offers paid leave and benefits
to colleagues who are going through the menopause.
Embedding inclusion within our Talent Management
processes
We have established strong foundations to inclusive TalentManagement—the way we hire, develop and nurture talentis an important step on our DE&I journey. The continued
embedding of Inclusive Hiring Principles plays an importantrole in promoting inclusive mindsets, instilling objectivity andde-biasing our practices and behaviours when we hire talent.
Furthermore, the introduction of ‘Inclusion’ as a new Aesop
Capability has been an important step toward embedding
the necessary inclusive behaviours across our annual talentmanagement and objective setting processes.

Aesop Notting Hill: A selection of books gifted to customers in celebration of Notting Hill Carnival

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Aesop Impact Report 2022

Employee wellbeing and engagement
Everyone who works at Aesop should feel they
are seen, appreciated and accepted for who
they are. They should feel supported in their roleand know their work has meaning and value topeople and planet.
To build that sense of belonging, and to understand thebarriers and opportunities we face as an organisation, we
need to keep asking the right questions and truly listen to
the answers. In pursuit of this, we run regular focus group
discussions and two annual employee engagement surveys.
Our most recent employee survey was in October 2022, which
saw a participation rate of 88%, as well as the submission ofover 8,000 comments. Although several scores dipped by one
or two points from the previous survey in April, the long-term
trend remains positive. For example, our score for Employee
Engagement has been consistent over the last few years,
reaching 74 in April and 73 in October. Similarly, although
our scores for Belonging (73) and Career Path (72) dropped
slightly, we performed well against external benchmarks.
• Survey participation rate: 88%, and over 8000
comments, all read by senior leadership• Current Employee Engagement score — 73
• Top strengths — Corporate Citizenship (75), Belonging(73), Career Path (72)
Our active-listening strategy provides valuable information
about what we should focus on in the months and years
ahead. Our biggest opportunities relate to how we work
together at Aesop—how we prioritise and make decisions,and how we collaborate and communicate. By addressing
this in 2023, we hope to in turn improve workload, work-lifebalance and overall engagement.

Focus on balance
Last year, coming out of the Covid-19 pandemic, we focusedon bringing more balance into our business. We saw the
impact of this focus reflected in our most recent employee
survey, with key metrics of Workload and Work-Life Balanceboth increasing by two points since April 2022.
Aesop is committed to supporting work-life balance initiatives
for our people to increase wellbeing. In 2022, we piloted
Summer Hours, inviting employees to take Friday afternoons
off work for three months during the summer. We included
a question about this initiative in our most recent employee
survey. Scoring 78 points, Summer Hours positively impacted
people’s wellbeing; they will therefore be returning this year
and every year after that.
Summer Hours—for office staff
Every year, over the summer period, on Friday afternoons weencourage all office-based staff to take time for themselvesaway from screens and meetings to recuperate, regenerate
and replenish after lunch. The offices are closed, and wecollectively enjoy time away from focussed work.
Wellbeing Days—for retail staff
This initiative aims to give Aesopians more time to refreshand replenish by providing retail staff with two additional
Wellbeing leave days over the summer period each year.
Meeting-Free Fridays—year-round
Year round meeting-free fridays are meant — whereoperationally possible — to be meeting-free and low-trafficdays, allowing time for focused work or reflection. this.

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Aesop Impact Report 2022

Using our stores for good
Our stores have purpose. We want everyone
who enters an Aesop space to feel enrichedby the experience—whether they are an
employee, a customer, or simply a curious
passer-by. Alongside the work we do to makeour stores sustainable by design, we aspireto create inclusive spaces that promote
wellbeing and growth, both for individuals
and for the wider community.

Queer Libraries
We believe queer storytelling has the power to broaden
horizons and unite communities. In 2022, we expanded ourQueer Library initiative to several new locations, giving awayover 34,000 books by LGBTQIA+ authors.

In 2022, branches of the Aesop Queer Library opened in
Melbourne, Sydney, LA, New York, Toronto, London and Berlin.
We also held Queer Libraries in Tokyo, Osaka and Hong Kongfor the first time.

During the event, the formulations usually found on our shelves
were replaced with a diverse selection of literary works,
usually sourced from nearby independent queer bookstores.
Customers were invited to collect a complimentary book, withno purchase necessary. Each iteration of the Aesop Queer
Library is run in partnership with Penguin Books, as well as
several other global charity partners.

The final Aesop Queer Library of the year was in Taiwan.
This included our first mobile library, which proved hugely
successful, with lines of customers patiently waiting to engage
with our team and find a good book.

Aesop YorkvilleQueer library 2023

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Aesop Impact Report 2022

Using our stores for good
Women’s Libraries
In April 2022, Aesop hosted its first Women’s Library. For fivedays, the shelves of two signature stores in Singapore werefilled with books by predominantly South East Asian authors
who identify as women and allies, purchased from local
independent publishers and booksellers.
Visitors were invited to take home a complimentary book, withno purchase required.
To complete the experience, the stores played a soundtrackfrom Aesop’s global Sounds of Sisterhood initiative—asoundscape created for International Women’s Day, featuringcolleagues and collaborators sharing stories of affection,
wisdom, and the multifaceted nature of womanhood.

Aesop VivoCity
Women's Library 2022

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Aesop Impact Report 2022

Using our stores for goodAn environmental spotlightThoughtful sourcing at Aesop Garosu-gil

Circular store design at Aesop Seongsu

Creative packaging

In August 2022, Aesop Korea organised a trio of
PR events entitled Kyklos—the ancient Greek
word for ‘cycle’—focused on sustainability.

Speaking to conscious, biodegradable ingredientsourcing, we collaborated with greenskeepers from nearby
Hakdong Park to turn green waste into an enveloping, zerowaste installation. A compelling result, with almost zeroenvironmental or financial cost, which was later returned tothe park to be used as fertiliser.

Aesop Seongsu’s garden designer, Dae-Gill Lee createdsoundscapes using field recordings from Jeju Island, theinspiration for the garden. These beautiful aural montages
were played in-store to highlight different aspects of circular
design. For example, a symphony of insects and frogs
emanated from the Rinse and Return bin. The piece urged
visitors to reflect on the unobserved natural processes thatare always at play—even in the bustle of the city.

To explain Aesop Korea’s conscious approach to packaging,
Rinse and Return service, and forthcoming Rinse and Refill
system, we invited designer Jisun Kim to use waste plastic
from the local neighbourhood to create vases and lamps thatwere given as gifts to guests.

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Aesop Impact Report 2022

Natura &Co business structure
In 2022, Aesop was aligned to the Natura&Co Commitment to Life sustainability
vision and targets. These targets arereported against in the appendix of thisreport.

Natura &Co

Aesop

Natura &Co

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

Aesop LatAm

The Body Shop

Avon International

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

Avon LatAm

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Aesop Impact Report 2022

Commitment to LifeIn 2022, Aesop continued working toward the 2030 goals set out in the Commitment to Life, Natura &Co’s
Sustainability Vision. This vision outlines a regenerative approach to business, one that seeks to solve socioenvironmental problems by going beyond ‘do no harm’ to create positive impact.
Like The Body Shop, Avon and Natura—the other brands within the Natura &Co group—Commitment to Life
helps us prioritise and align our next steps as we journey toward creating a fairer and more sustainable future.

Goal

MetricTarget timeline

2021

2022

To Address the Climate Crisis and Protect the Amazon

Net Zero GHG
emission

Biodiversity

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

2030

In 2021, our greenhouse gas emissions were 32,157 tonnesof carbon (tC02e) across Scope 1, 2 and 3.

In 2022, our location based greenhouse gas emissions
were 58,923 tonnes of carbon (tC02e) across Scope 1, 2
and 3 (excluding consumer use of our products).

Science Based Targets Initiative (SBTi)
for all companies, scopes 1, 2 and 3

2022

We are in the process of submitting our science-basedtargets to SBTi and we expect to receive their approvalin the coming months.

Aesop was part of a submission for a 2030 Science Based
Target through the Natura group in 2022.This target was
validated in June 2023.

Help create targets with a network of partnerships(UEBT, SBTN, BfN, WEF)

2025

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.
TBC

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Aesop Impact Report 2022

Goal

MetricTarget timeline

2021

2022

To Defend Human Rights and be Human Kind

Our people

Our Wider Network

Human Rights

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

2023

40% women on senior team at Aesop.

46%

Equitable pay, closing the gender gap by 2023

2023

The gender pay gap at Aesop has been identified as -1%.

-0.58%

Throughout 2021 we reviewed various solutions to assess
D&I data as we faced data privacy and legislative issues inmany of the markets in which Natura &Co operates. With thesupport of an external consultancy, an online survey tool will
be used to anonymously gather data from our employees tosupport the establishment of our baseline.

One of the greatest challenges in our Commitment to Life is
the ambition for 30% inclusion of underrepresented groups
across all management levels in all the company’s business
units. Our goal is to reflect the societies in which we operate
in our workforce. As a large global organization, this is notan easy task as it involves capturing sensitive personal datain accordance with data protection laws and anonymity
requirements in all jurisdictions. However, we are committed
to progress and, as such, we partnered with external
experts to conduct our first global D&I study so that we cantrack progress against our goals in this area

1A - 98%

1A - 98%

2A2C - 85%

2A2C 84%
A$ 3.1 million

Work towards 30% inclusion, in management, of underrepresented groups

2030

Living wage (or above) for all by 2023

2023

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

2030

A$ 5.8 million

Full traceability and/or certification by 2025 – Palm Oil

2025

22.00%

Full traceability and/or certification by 2025 – Mica

2025

N/A

N/A

Full traceability and/or certification by 2025 – Paper

2025

71.00%

Certification - 69.7%

Full traceability and/or certification by 2025 – Alcohol

2025

0.00%

Traceability – 90.0%

Certification - 0%

Full traceability and/or certification by 2025 – Soy2025

15.60%

Traceability - 1.9%

Certification - 0%

Full traceability and/or certification by 2025 – Cotton

2025

1.00%

Traceability – 95.0%

Certification - 17.5%

Adopt robust Human Rights policy in line with
UN Guiding Principles by 2023

2023

Natura &Co’s new Human Rights statement was
unanimously approved by its Board of Directors in 2021

Traceability (Mills) - 89.7%

Certification - 22.9%

The Natura &Co Board of Directors approved a Human
Rights statement in December 2021. The following year,
the policy was rolled out across all four Natura &Co brands.

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Aesop Impact Report 2022

Goal

MetricTarget timeline

2021

2022

Embrace Circularity and Regeneration

Packaging
Circularity

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

2030

50.8% of all Aesop plastic packaging
manufactured in 2020 was madefrom recycled content

54.70%

100% of all packaging material: Reusable or Recyclable orCompostable

2030

82.7% of Aesop packaging
material is reusable or recyclable.

83.00%

2030

0.60%

Aesop launched its first in-store refill trial launched at
South Yarra in late 2021. Aesop have also launched
Rinse and Return initiatives across Hong Kong & Macau,
Singapore, Taiwan, Malaysia and Korea. Across 2022 these
programmes collected 9220kg of used packaging material
for local recycling.

95%+ renewable or natural ingredients2030

89.7% of Aesop’s ingredients,
according to ISO16128 standard,a globally harmonised standard
providing guidelines on definitions andcriteria for natural-origin ingredients

90.80% of Aesop’s ingredients were of natrual origin,
according to ISO16128 standard

95%+ biodegradable formulas

2030

89.3% biodegradability of rinse-off formulations.

93.40% biodegradability of rinse-off formulations

2030

In 2021, a team with components from all the companiesof the Group was defined, a consulting firm was hired(Quantis), and the scope of the tool construction was
defined in line with the EcoBeautyScore Consortium.

Natura &Co LCA Ecodesign Tool had its development
completed in 2022 allowing the measurement of theecological footprints of formulations based on state-of-theart LCA methodology and data. In 2023, a pilot phase of
testing and evaluation is planned so that fine adjustments
can be made to ensure that the tool is being successful inmeasuring the real impact of the formulations.

Offset through “collection and reuse” programs to reach
100% responsible disposal where recycling infrastructure
not available

FormulaCircularity

100% of new formulas will have lower environmental
footprint, measured by life cycle analysis (LCA)

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Aesop Impact Report 2022

Environmental impact
Packaging materials

Through our Rinse and Return programmes in Asia we are working to increase the material returned to be recycled.

At Aesop, we continually review the composition of our packaging portfolio
to reduce our environmental impact and track our progress. The following
table details the weight and material uses across our packaging in 2022.
All packaging data is based on goods shipped to market

Material used

2021

2022

Total weight (metric tonnes)

Material used

Total weight (metric tonnes)

Total weight from recycled sources

Percentage from recycled sources

Glass

525.2

226.8243.19%

Plastic

417.88228.7854.75%

Wood/Paper

76.23

12.73

16.7%

Metal

58.85

0

0%

Glass

790

525.2

Plastic

468

417.88Wood/Paper

43

76.23

Material used

Quantity used

Quantity of material returned for recycling

Percentage

Metal

87

58.85

Plastic, Glass, Metal

1,927,133

49,336

2.60%

At Aesop we continue to monitor our progress towards increased recycled material across our packaging in 2022.

Energy consumption

Emissions

At Aesop, we continually review the composition of our packaging portfolio to reduce our environmental impact and track our progress.
The following table details the weight and material uses across our packaging in 2022.

Scope 1, 2 and 3 (including consumer use and location-based emissions for Scope 2) 118,064

MetricEnergy used

Unit

Energy consumed from nonrenewable fuels (gas, coal, oil, etc.)

223

MWh

Energy consumed from nonrenewable electricity purchased

5030

MWh

Total nonrenewable energy consumption

5253

MWh

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

561

MWh

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

9.6%(nonrenewable fuels and nonrenewable electricity)

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Aesop Impact Report 2022

Waste1

Waste diverted from disposal (used/recycled/sold) (t) 1

2022

Aesop 1

8,919

The scope covers all global stores and offices

GRI 306-4

2022

Waste recovery by recycling (t) 1

Total 2

Hazardous
Inside the organization (on site)-

Outside the organization (off site)-

Non-hazardous
Inside the organization (on site)

166.8

Outside the organization (off site)

0

Total

166.8

Recycling: composting; co-processing and recycling
No data is available for hazardous waste for Aesop because within the scope (offices and stores) it is assumed that novolumes of hazardous waste are removed

1
2

GRI 306-5

2022

Hazardous-

Non-hazardous

59.3

Total hazardous & non-hazardous

59.3

Waste directed to disposal (t)Total 1

Total volume of waste directed to disposal is estimated for Aesop as there is no data available
by composition.The scope only covers all global stores and offices

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Aesop Impact Report 2022

Social impact
Corporate citizenship and philanthropy
The Aesop Foundation focuses its funding on multi-year partnerships. The Foundation also responds toacute social and environmental issues. All grants are guided by a fundamental belief in human rights andequality. The below table details the total grants approved by the Aesop Foundation in 2022.

Type of activity

2022 total

Type of activity

2022 total

Philanthropic grants approved by the Aesop Foundation

AUD$3,116,000

Volunteering hours contributed by Aesop employees

26002.5 hours

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Aesop Impact Report 2022

Employees
GRI 2-7

Employee by type of work contract and gender2022
Temporary

Permanent

Total

Men

69

497

566

Women

341

1686

2027

Not declared

217

497

714

Total

1,061

24,5453307

Employee by type of work contract and gender2022
Full-timePart-time

Total

Men

451

115

566

Women

1582

445

2027

Not declared

434

280

714

Total

2467

840

3307

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Aesop Impact Report 2022

New employee hires and employee turnoverCollective bargaining agreements

GRI 401-1

GRI 2-30

Employees covered by collective bargaining agreements

Total 1

Total of employees

800

Employees covered by collective bargaining agreements

190

Total percentage

23.8%

Turnover rate by gender 1

Total 1

No. hired210

No. terminated185

Total turnover rate (%)

27%

Men

Scope is only considering employees based in Europe. Conditions for employees not covered by collective bargaining agreements
are not detrimental and are equal to those covered by a collective bargaining agreement.

1

Women

1

No. hired668

No. terminated573

Total turnover rate (%)

24%

Total turnover as % of total employees (%)

30%

In Aesop, there are 1,106 employees who have not declared their gender, which have been considered in the total turnover figure

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Aesop Impact Report 2022

Diversity of governance bodies & employees
GRI 405-1

1

No. of employees by functional category and gender 1

Leadership

Director Level

Management

Coordinator

Administration

Operational

Salesforce

Total

Men

4

11

65

73

-

-

-

153

Women

2

14

121

160

-

-

-

297

Not declared

1

3

33

36

-

-

-

73

Total

7

28

219

269

-

-

-

523

Data only represents management – level employees

2022

No. of STEM- related positions and gender

1

Men

Women

Not declared

IT

77

62

22

Finance

20

57

10

Supply Chain

34

67

14

R&D & Engineering 1

6

43

5

Total

137

229

51

R&D and Engineering are classified as a single job family

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Aesop Impact Report 2022

Training and development

Employee Engagement

GRI 404-1

Average hours of training per year per employee
Total employees

Total hours of training

3307

Employee engagement indictor (% of actively engaged employees) 1,2

2020

2021

2022

Aesop

70

69

71

Average hours of training per employee

49,012

1

14.8

2

Aesop uses Glint to capture employee engagement data and have applied the following methodology to the data, ‘Favourable’ in Glint = actively engaged.
Data coverage (% of total employees who responded) is XX% 2020; XX% 2021; XX% 2022

Gender equality salary gap

Customer satisfaction

Through Natura &Co, Aesop conducted an independent pay equity study in partnership with global
consultancy Mercer. Our goal is to not just meet statutory minimums but to go above and beyond tochallenge ourselves.

Aesop’s Voice of Customer (VoC) program was relaunched in July 2022 with a new partner, InMoment. The relaunch
has led to changes in the reporting volumes to better align with customer volumes across markets and is now moreaccurately reflective of global sentiment.

GRI 405-2

Remuneration (%)
Aesop

2020

2021

2022

Metric

2019

2020

2021

2022

-1.0

-0.58

Satisfied customers indictor (% of satisfied customers) 1,2

82%

88%

87%

76%

The indicator presented is based on a more sophisticated methodology than the simple ratio of women’s salary to men’s
and between ethnic-racial groups. Although the classification by functional category is not available in this cycle, themetric can be used as a reference to GRI 405-2, due to the similar intention in relation to the data reported

Information based on the 5 main markets: United Kingdom, Poland, Romania, South Africa and Philippines.
The data is based on representative satisfaction research (non -final customers).
Aesop’s Voice of Customer (VOAR) Program was re-launched in 2022 with a new partner. The relaunch has led to changes in the reporting volumes to betteralign with customer volumes in certain markets. In the refreshed process, Asia-based markets now account for 45% of survey responses vs. 15% historicallywhich has led to a significant shift in the results but the results are now accurately reflective of global sentiment as they are weighted against market size.
1

2

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Aesop Impact Report 2022