2021

SUSTAINABILITYREPORT

CONTENTS

FOREWORDINTRODUCTION

We all know that our world is facing an existential crisis. Our
environment is polluted, we are losing biodiversity and global
inequalities are increasing. These social and environmental crises andinjustices are interconnected, and so are the solutions. We need urgent
systems change. And we all have a role to play in making this happen.

3 Foreword
4 The Body Shop: a force for good
5 The best beauty group for theworld

The Body Shop has been a leader insocial and environmental justice forover 40 years. Now, at this pivotal
moment for our planet, we’re upping
our game. These pages tell the storyof how we did this in 2021.

6 Commitment to Life

BEING A B CORP™
8 Why be a B Corp™
8 What this means for The Body
Shop
8 An overview of our B Corp™
progress

SOCIAL JUSTICE
10 Contributing to a just transition

19 Our products“There is no power on Earthapart from business capableof making the changes wedesperately need for thecontinued survival of theplanet… Businesses have to put
justice and sustainability at theheart of what they do.”20 Our packaging

Our Founder, Anita Roddick

11 Governance
12 Workers
14 Community
15 Customers
16 Activism
17 Campaigns in 2021

ENVIRONMENTAL JUSTICE
18 Reducing our impact on theenvironment
18 Our company sites

NEXT STEPS
22 B Corp™
22 Social justiceThis work is vital and urgent, butchallenging. It’s only possible because,right across The Body Shop family,
thousands of people share the same
vision, grit and determination. Thankyou all for being part of this story.
We have many challenges ahead but,
together, we’re achieving great things.

We’re dedicated to being the mostethical, sustainable, inclusive andinspiring company we can be. The
more we grow, and the more we
engage with our customers and otherstakeholders, the bigger the difference
we can make to people’s lives andDavid Boynton
preserving the health of our planet.
CEOThe example we set as a changemaking business counts. As a global
business comprising of tens of
thousands of people and millionsof customers, part of a progressive
cosmetics group and the groundbreaking B Corp™ movement, wehave a powerful platform to influenceothers and drive change.
In 2021, we upped our game as a
B Corp™, both within and outside
our business. We devised ways tocontinuously strengthen our socialand environmental impact across ourbusiness, guided by departmental
and country-level targets. And wejoined the B Beauty Coalition to lead
global improvements across our
sector. Alongside this, we continued
to work as part of Natura &Co on our
Commitment to Life sustainability
plan.

23 Environmental justice

SUPPLEMENTARY DISCLOSURES
26 Economic Impact
27 Environmental Impact
30 Social Impact

2 THE BODY SHOP Sustainability Report 2021

THE BODY SHOP Sustainability Report 2021 3

THE BODY SHOP: A FORCE FOR GOOD
Founded in 1976, The Body Shopbecame a certified B Corp™ in 2019.
We seek to make positive change
by offering high-quality, naturallyinspired products produced ethicallyand sustainably, and by campaigning
for social and environmental justicearound the world. Having pioneered
the philosophy that business can bea force for good, this ethos is still our
driving force.

The Body Shop today is a truly
omnichannel business with around2,500 retail locations (owned andfranchised) in more than 80 countries,
The Body Shop at Home direct toconsumer channel in the UK, US
and Australia, and an e-commerce
presence in 59 markets.
People have always loved what The
Body Shop stands for. Now more thanever, they can also love the things wemake – and the way we make them.

THE BODY SHOP: A FORCE FOR GOOD

We’re developing our business andmeeting people where they love
to shop – online, in our stores andthrough The Body Shop at Home –while constantly seeking to reduce
our environmental impact andadvance social justice.
We’re reaching more people whocare about the things we care about,with a rejuvenated range of productsthat are conscientiously sourced
using effective ingredients of natural
origin. And we’re stepping up oursustainability and activism game.

1

4 THE BODY SHOP Sustainability Report 2021

The best beauty groupfor the world
The Body Shop is proud to be part of Natura &Co, alongwith Natura, Aesop and Avon. Together, our ambition
is to be the best beauty group for the world – actively
working to benefit people and planet.1
Within our global structure, all Natura &Co brands areinnovating to achieve Commitment to Life, Natura &Co’s
group-wide sustainability vision for 2030.

For more information, see the Natura &Co 2021 Annual Report, available at: www.naturaeco.com/annual-report-2021

THE BODY SHOP Sustainability Report 2021 5

THE BODY SHOP: A FORCE FOR GOOD

THE BODY SHOP: A FORCE FOR GOOD

Commitment to Life
The three pillars of Commitment to Life steer our shared ambition to help
tackle some of the world’s most pressing problems:

1
ADDRESS THE
CLIMATE CRISISAND PROTECT THE
AMAZON:

By reducing our greenhousegas emissions to net zero by2030, and working to protect
the rainforest and support its
people2
DEFEND HUMAN
RIGHTS AND BE
HUMAN KIND:

3EMBRACECIRCULARITY AND
REGENGERATION:

To support our employees,
consultants, representatives
and sourcing communities, andpeople in our supply chains

In our packaging, productformulas and through otherbusiness investments

All four Natura &Co brands are working towards ambitious targets under each pillar. For example,
to address the climate crisis our goal is reaching net zero 20 years before the UN deadline. Our
shared commitments to support people include paying all employees at least the real Living
Wage by 2023. To defend human rights, Natura &Co will fully trace and/or externally certify six
high-risk raw materials (palm oil, mica, soy, paper, ethanol and cotton) by 2025. And to embracecircularity, by 2030 Natura &Co is working to ensure that 100% of packaging is reusable, recyclable
or compostable.2

2

For more information on Commitment to Life, see: www.naturaeco.com/sustainability-vision-2030

6 THE BODY SHOP Sustainability Report 2021

THE BODY SHOP Sustainability Report 2021 7

BEING A B CORPTM

Why be a B Corp™?
Over 4000 certified B Corps™ are
helping to drive a movement, working
to transform the global economy
to benefit both people and planet.
Certified B Corps™, including The
Body Shop, seek to create value for all
stakeholders – not just shareholders.
Being a certified B Corp™ recognises
our positive social and environmental
performance, helps us make further
improvements, and allows us to joinwith others to drive the change we allneed.
As a B Corp™, we’re required tomeet the highest externally verifiedsocial, environmental and governancestandards. And we’re part of acommunity of leaders driving positivechange both within and outside
our movement, via collaborative
working groups and coalitions, andthrough role modelling pioneering
best practice. The strict B Corp™
certification (and recertification)
process measures our impact asa business on people and planet
through everything we do, and helps
us to keep improving.

What this means for The
Body Shop
Our B Corp™ certification assesses
and influences all aspects of how we
do business, not just our products.
This includes our governance, how
we look after our employees, how werun our facilities, our environmental
impact, how we work with our
suppliers, as well as our contributions
to local communities and wider
society.

Assessment to structure this reportand demonstrate how we furthersocial and environmental justice.
Over 25 trained, dedicatedSustainability Champions – at least
one in each company market andinternational function – drive socialand environmental sustainability
performance in every area of
our everyday business, from ouremployment policies to the cleaningmaterials we use.
Our Sustainability Champions
coordinate our action plans and shareknowledge and good practice acrossour markets. They also track progress
and assess how we can further
improve our impact. Together, theseapproaches help all parts of The Body
Shop work towards the B Corp™ visionof a sustainable economic system thatserves people and planet.
This work never stops – we’reconstantly improving our social andenvironmental impact right acrossour business, right along our supply
chains and right around the world. In
2023, we are planning to submit 20 B
Corp™ Impact Assessments to B Lab
to verify our performance. Our aim isvery ambitious, to achieve 100 points– 18 more than in 2019.

An overview of our B Corp™
progress in 2021
Pages 11-15 in this document show
a snapshot of our 2021 performancein the five B Corp™ Impact Areas:
governance, workers, community,
customers and environment.

In 2021, our Sustainability Champions
facilitated the development
and implementation of detailed
We’re not satisfied with simply being
improvement plans for each ofrecognised as a B Corp™ – we want toour company-owned markets andbe the best B Corp™ we can be.
international business functions toTo embed B Corp™ triple bottom line
embed B Corp™ approaches in our
principles and standards throughout
everyday business practices. We also
our business, we use a holistic
developed tools and processes toapproach, and decentralised planningsupport our head franchise partners
and target setting. We have used
to become B Corps™.
the impact areas in the B Impact
8 THE BODY SHOP Sustainability Report 2021

During the year, we prioritised more
inclusive employee recruitment
strategies, investing in expanding ourOpen Hiring and Targeted Recruitment
programmes to help marginalised
groups overcome chronic barriers to
employment.
During COP26 in Glasgow, we tested
our new Youth Collective model, agroup of under-30s who will help
to steer our business from 2022.
This will amplify the voices of young
people, who often go unheard incorporate and multilateral decisionmaking, including COP. To challenge
this injustice, we tested our Youth
Testing our Youth Collective model at COP26, November 2021
Collective model by inviting sevenyoung activists to sit alongside our
CEO to give live feedback and valuable
insights on the key challenges thatour business faces over the next
decade and how the next generationneeds us to step up. This initiative
demonstrated the importance ofworking with young people, amplifying
their voices to help businesses makereal change, today.
We joined the B Beauty Coalition3, agroup of over 40 B Corps™ that aims
to improve social and environmental
sustainability both within and beyond
the global beauty industry, by driving
up business standards and practices,and strengthening collaborationand learning between companies.
Our International Director of
Sustainability, Activism and Corporate
Communications was elected tothe coalition’s board, and our Headof Sustainability sits on its steeringcommittee. This means that The
Body Shop, alongside other brands,
will direct current working groups
on defining future priorities andinitiatives, and publicising outcomesof the coalition’s work.

3

For more information, see: www.bcorpbeauty.org

THE BODY SHOP Sustainability Report 2021 9

SOCIAL JUSTICE
People – workers, customers,
suppliers and their communities– sit at the heart of any business.
All businesses, but especially
B CorpsTM like The Body Shop,
have a responsibility to treat all
their people fairly and equitably.
Collectively, responsible
businesses can help to counteract
many social inequalities andinjustices both through their own
business practices and by showing
others what’s possible. The Body
Shop has been a social justicetrailblazer for more than 40 years,
in our sourcing, marketing andcampaigning, and our employment
policies.

SOCIAL JUSTICEJUST TRANSITION

GOVERNANCE

Achieving a truly sustainable economy is essential
for tackling the interconnected challenges of theclimate emergency, biodiversity loss and social
inequalities. However, how we get there is also
important. If the process of change isn’t fair andjust, the outcome won’t be either.

Good corporate governance– organising ourselves andmaking decisions in a waythat represents the bestinterests of all stakeholders –is essential for ensuring equity
and justice. At The Body Shop,
good governance enables us
to balance stakeholder andshareholder interests, and holdourselves accountable via formal
mechanisms. This ensures we are
ethical and transparent in termsof our social impact.

A ‘just transition’ means moving to a more sustainableeconomy in a way that’s fair to everyone, creating
a more equal society. This means redressing pastinjustices, building good relationships with eachother and our shared planet, and more equitable andinclusive decision-making.
This principle and process guides everything we do at
The Body Shop, from the way we run our business to
how we influence wider change through our activism
and as part of the B Corp™ movement.
For example, our Community Fair Trade sourcing
programme goes further than sourcing quality
product ingredients in ethical and sustainable ways,
in exchange for a fair price. In many cases we pay our
producer groups a premium that they can choose toinvest in projects that benefit their wider communities,
such as new schools, healthcare facilities or improving
water sources. Our dedicated team also provide
targeted support which is designed to strengthen thesustainability of these community-based businesses,
helping them to reach new customers and increase
their positive socio-economic and environmental
impacts. This is important because many of our
Community Fair Trade partners live in the Global South,in low-income communities that are disproportionately
affected by the climate emergency. In our Community
Fair Trade programme, we’re also pioneering a forwardlooking Fair Price approachthat builds on our current
work to ensure that all labour
contributions to these productingredients, including ‘invisible/
hidden labour’, are rewarded fairly,
helping people to achieve a living
income or living wage.
We are also founder members of
the Ethical Trading Initiative andhave contributed to developing
their 2021 Just Transition
programme to identify, elevateand amplify what businesses needto do.

10 THE BODY SHOP Sustainability Report 2021

The Body Shop strives to increase
the diversity of our leaders.
Making decisions based on diverse
perspectives is not only the rightthing to do, but it makes businesssense to meet the needs of ourdiverse customers and partners.
In 2021, 64% of our Senior andExecutive Leadership teams were
women, reflecting the fact that mostof our employees are female4. And
we’re committed to having a genderequal board by 2023. We continue to4

support more women and people fromunder-represented groups to progress
to senior roles in our business. As partof Commitment to Life, by 2030, wewant at least 30% of our executive
and senior leaders to be from underrepresented groups such as minority
ethnic groups, people with disabilities
and/or LGBTQI+ people.
Boardrooms also need to include
more youth representation. At
COP26, The Body Shop took part in a
Boardroom 2030 event with B Lab UK,
in which seven young activists shared
their insights into future businesschallenges with our CEO. We used
this event to inform the developmentof The Body Shop Youth Collective
launching in 2022. From 2022, thisadvisory body of 12 people from insideand outside the business, all aged
under 30, will work with our CEO
and Executive Leadership Team toinfluence our strategy and activism.
As well as incorporating more diverse
perspectives in our decision-making,this will skill up potential future
leaders.

The data was collected from a sample set that only included male and female as options.

THE BODY SHOP Sustainability Report 2021 11

SOCIAL JUSTICESOCIAL JUSTICE

WORKERS
Workers are the driving force
behind a company’s mission.
Treating all workers well andfairly is central to social justiceand core pillar of the B Impact
Assessment.
That’s why, at The Body Shop, weembrace a people-first approachto take care of our workers. This
encompasses inclusive hiring
practices and mental health support,
policies and tools to improve
workers’ experience and relationshipwith us, including their salary andbenefits. Our commitments to goodworking practices extend beyond ourown employees.
In 2021 we prioritised more inclusive
recruitment strategies, to help
those facing chronic barriers to
employment and ensure that The
Body Shop actively supports thecommunities where we operate,
while also taking concrete
steps towards increasing thediversity of our business. As partof our commitment to building
an environment where all our
employees feel they belong,
we continue to develop ourunderstanding of what inclusion
means for everyone. This involves
listening to people whose voices
have historically been unheard, while
acknowledging the courage that’s
sometimes required to speak up.
We expanded our Open Hiring
programme to entry-level store anddistribution centre roles in Australia
and the UK, as well as the US andCanada (our four largest markets).
We recruited 1,306 people using thisapproach, which omits backgroundchecks and unnecessary interview
questions, focusing on a person’s
potential rather than their past.

In these markets, we also partneredwith local charities and organisations
through Targeted Recruitment –hiring 101 people who faced specificemployment barriers including
homelessness, a lack of education,
or experience of domestic abuse orformer imprisonment.
Our commitments to good working
practices extend beyond our own
employees. Our procurement
practices and agreements require our
suppliers to treat their employees
and other workers fairly. Through our
responsible procurement programme,
we identify issues, manage risks,
implement policies and provide
supplier guidance. Our responsible
procurement work is detailed
each year in our Modern Slavery
Statement.5

We’re on track to pay all The Body
Shop employees across the globe aliving wage or more by 2023 – 82–
100% of our staff are already paid at
this rate.6
Our employee satisfaction score for2021 averaged 76 across two staff
surveys run by independent provider
Glint – a similar rate to previous
years and higher than Glint’s global
benchmark of 74.
Increasing numbers of people needor want to earn in a flexible way tobalance work with other aspectsof their lives. We’re proud to offer
many part-time and flexible working
opportunities, in line with our
employment policies. Our 57,7697
self-employed The Body Shop at
Home consultants in the UK, US andAustralia can earn at a time and in

During the year, Natura &Co becamea sponsor of the Responsible
Recruitment Toolkit in recognitionof the risks of labour exploitationin relation to recruitment and the
supply of temporary labour. This
best practice tool aims to assessand build labour providers’ capacity
in fair and ethical recruitment,
through free guidance and training.
Natura &Co will start rolling out
this tool to our labour providers
and suppliers from 2022, to ensurethat jobseekers and workers aretreated fairly and to avoid labour
exploitation at recruitment.
The Body Shop aims to be a greatplace to work for all our employees,with fair and equitable treatment
and rewards. In 2021 we continued
to pay all our UK-based employees
and agency workers at least theReal Living Wage and encourage our
suppliers to do the same.
6

5

For more information, see: www.thebodyshop.com/en-gb/about-us/our-commitment/modern-slavery/a/a00030

12 THE BODY SHOP Sustainability Report 2021

a way that suits them, by selling our
products in person or via social media
with no pressure or targets from us.
This has been a particularly important
livelihood and sales channel during
the COVID-19 pandemic, giving ourcustomers flexibility too.

7

In 2021, 100% of our employees around the world received pay at a level that met the real living costs of a single adult, and 82%
were paid at a rate that covered the real living costs of a family of two adults and two children.
As of December 2021.

THE BODY SHOP Sustainability Report 2021 13

SOCIAL JUSTICESOCIAL JUSTICECOMMUNITY
As businesses, contributing to
the economic and social wellbeing of the communities inwhich we operate is the basis ofbuilding shared and sustainable
prosperity for everyone. Throughour supplier relations, social
engagement, charitable giving,and strong relationships withdiverse communities aroundthe world, The Body Shop aims
to have a tangible positive
community impact.
The Body Shop was a fair tradepioneer back in 1987. Ever since,
we’ve ethically and sustainably
sourced many of our ingredients,
accessories and packaging items inthis way. As well as providing great
products for our customers, our
Community Fair Trade programme
helps our producers earn sustainable
incomes, in safe, equitable andrespectful workplaces.
In 2021 this programme comprised
19 suppliers in 15 countries across
Africa, Asia, Latin America andEurope, providing fair incomes forover 16,000 people. Altogether, we

CUSTOMERS
purchased 546 metric tonnes ofCommunity Fair Trade ingredients,
in addition to Community Fair Tradeaccessories and packaging materials.
We were able to keep these supply
chains open in 2021, despite
significant disruption from the global
pandemic to global freight operations
as well as localised safety measures
such as lockdowns, enabling producergroups to keep earning an income. To
support their businesses cashflow, wehonoured or enhanced our payment
terms even when some suppliers
experienced production delays.
In 2021 Natura &Co developed
and finalised its Human Rights
Statement (policy framework)8,
which will go live throughout The
Body Shop and our sister brands
from mid-2022. To do this Natura&Co benchmarked its activity
against three external areas: bestpractice of other companies in
our field; external stakeholder
expectations and against key
standards such as the Corporate
Human Rights Benchmark and the
Women’s Empowerment principles.

The Body Shop believes inhaving a positive impact on
our customers’ lives beyondpurchasing our ethical products.
We want all our customers tofeel welcomed, listened to andsupported at The Body Shop,
whoever they are.
We work to address social issues
that affect our customers andenable them to champion social andenvironmental justice through ouractivism (see pages 16-17). We also
help them to have a positive impact
themselves by enabling them to bepart of the self-acceptance and body
positive movements, and the refill
revolution (see page 20). Our new
Activist Makers Workshop storesencourage customers to take a standon social and environmental issues.
In addition, 16% of these stores that
opened in 2021 specifically reflect
local communities through murals
or other artworks by local artists
that feature local issues and culturalelements.

Visibility, representation and inclusion
are important to us at The Body
Shop. When planning, creating andperfecting new products, we consult
our people and customers in multiple
countries, including a range of ages,
ethnicities, locations and gender
identities. In 2021, we reformulated
our Shea haircare range to care for
curly and textured hair, and launched
an expanded range of Fresh Nude
Foundation shades to cater for all
skin tones. We’re also transforming
our make-up to embrace trans andnon-binary people’s needs.

We care about the things ourcustomers care about. We nevertest any products or ingredientson animals, we are certified by the
Humane Cosmetic Standard, all our
products are vegetarian and we’re
working towards full Vegan Society
certification of our products by 2023.
We embrace all forms of beauty,
never retouch images of our models
and have a long history of actively
supporting our customers’ selfesteem. Our 2021 Rise Up With
Self-Love Campaign promoted
self-acceptance and mental healthamong our customers, whatever
their background or appearance. This
prompted customers from aroundthe world to share more than 2
million acts of self-love via our social
Nykeba King, our Global Inclusion
media channels, including inspiringand Belonging Manager
stories and tips.

“We want any person to
see themselves visible andreflected in our stores, ourpeople, our marketing images
and our products.”

8

At the time of writing this report, the Natura &Co Human Rights Statement has gone live and can be accessed here:
www.naturaeco.com/human-rights-statement

14 THE BODY SHOP Sustainability Report 2021

THE BODY SHOP Sustainability Report 2021 15

SOCIAL JUSTICESOCIAL JUSTICEACTIVISM

EXAMPLES OF LOCAL CAMPAIGNS IN 2021

At The Body Shop, we haveactivism in our DNA. Since 1990,
we’ve created direct change
through new legislative action
or policy changes in over 24
countries.

Protecting peacefulprotest in the UK

To us, activism means using people
power to change laws and policies
on global and local issues to achievesocial and environmental justice.
Right now, the world needs thismore than ever.
In 2021, we re-established ouractivist roots and finalised a new
strategy to maximise the impact of
our activism. Under this strategy, ouractivism has two main strands. Our
markets will run local campaigns
relevant to their communities. And,
from 2022, we will run Be Seen Be
Heard, a three-year global campaignthat will unite our whole collective
behind a common cause to amplify
youth voices in public life.
During the year, we ran 16 local
campaigns, taking action on theissues that matter to us and ourcustomers. We also opened over
100 Activist Makers Workshop
stores, encouraging customers to
get inspired by our activist heritage,
while taking a stand on social andenvironmental issues themselves.
Achieving results through activism
is a collaborative – and often
long-term – process. But we’redetermined to keep pushing andkeep building on our achievements.

16 THE BODY SHOP Sustainability Report 2021

“Activism must be woven into thefabric of business. In a global world,
there are no value-free or politicallydisentangled actions… So we
dedicated our business to the pursuitof human rights, of positive socialand environmental change, and got
on with being an activist organisation
pursuing those objectives. That meantaction, not just words.”
Our Founder, Anita Roddick

For more than 100 years, peacefulprotests have enabled UK citi
zens toinfluence governments to make positivechanges, from recognising gay
marriageto ending fracking. They have
also
helped to shift social attitudes
on socialand environmental issues, inc
ludingracial equality and climate change. As a
UK-founded business, peacef
ul protest
has been an essential part ofour socialand environmental activism for
decades.
Since November 2021, The Body Shophas been speaking out agains
t thePolice, Crime, Sentencing and
CourtsBill, which threatens the right topeaceful protest in the UK. In
2021,
we used our social platforms,
media
presence and leadership profi
le to raiseawareness of the bill’s implica
tions.
Our CEO wrote to the Houseof Lords’
Justice and Home Affairs SelectCommittee, urging it to challen
ge thebill. We also joined forces wit
h 100 otherUK businesses to send an ope
n letter tothe House of Lords to do thesame.

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THE BODY SHOP Sustainability Report 2021 17

ENVIRONMENTAL JUSTICE
The health of our planet is vital forour existence. That’s why The Body
Shop takes bold action to preserve
Earth’s precious resources
and biodiversity, by embracing
planet-friendly practices andenvironmental initiatives. We
consider, and constantly strive
to improve, the impact of all our
everyday activities, including ourenergy use, the materials we use,
how we run our facilities, andour supply chains throughout theworld.

Reducing our impact on theenvironment
As part of the Natura &Co
Commitment to Life vision, by 2030
The Body Shop will meet the demandsof the Science-Based Targets Initiativeand reach net zero greenhouse gas
emissions. This includes all direct
and indirect emissions resulting fromrunning our business (scopes 1, 2
and 3).
In 2021, Natura &Co conducted agroup-wide exercise to establish
a baseline to help set ScienceBased Targets and track emissions
reductions – the first steps towards
becoming net zero. Excluding indirect(post-purchase) product use, The
Body Shop accounted for around 11%
or 260,677 tonnes CO2 equivalent(tCO2e) of total Natura &Co emissions
in 2020.

CIRCULAR ECONOMY
The global ‘take, make, waste’ economy isn’t working
for people or planet. The only sustainable economy isa ‘circular economy’, where waste and pollution don’t
exist because products and materials are kept in acycle of constant use and nature is regenerated. A
circular economy decouples economic activity from theconsumption of finite resources. It’s a resilient systemthat is good for business, people and the environment.9
Creating a circular economy is vital. But it requires amassive and hugely complex global transformation in
how business works. Ethical business can – and must– be part of the solution. We can’t wait for someone
else to solve the problem. That’s why The Body Shop is
upping its sustainability game – orienting our businesstowards a waste-free, circular economy.
We’re embracing circular economy
approaches in our store design andshop fit. For example, our new Activist
Maker Workshop store designs use
sustainable materials wherever
possible. This means less virginplastic, using Forest StewardshipCouncil (FSC)-certified wood andpaper, and fixings that can be broken
down at the end of their life.

Our company sites
At The Body Shop, we’re installing
automatic energy meter readersin our company stores and sites
wherever possible, to help identify
where we can use less energy. We’ve
also installed electric car charging
points at our global headquarters in
Littlehampton, UK.
9

Based on the Ellen MacArthur Foundation definition. For more information, see:https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview

18 THE BODY SHOP Sustainability Report 2021

ENVIRONMENTAL JUSTICE

We opened over 100 Workshop storesin 2021, and aim to open a further 200
in 2022.
To avoid unnecessary waste, we’rephasing in these new designs when
we open new stores or refit thosethat need a refresh. In 2021, we
installed 529 of our new makeup
stands - by using flexible, reusable
FSC wood product holders we saved
approximately 2.6 tonnes of virgin
acrylic plastic within that year alone.
And we launched over 450 instore refill stations in 34 countries,
approximately half of the countries wetrade in (see page 20).

Our products
The Body Shop aims to make thehighest quality products with thelowest possible impact on the planet,planetin line with our Charter for Change.
We use ingredients of natural origin
wherever we can. And we’ve nevertested any products or ingredients on
animals.
Now, we’re challenging ourselves
to go even further by reformulating
our iconic products to maintain thehighest quality, while having thelightest possible touch on the planet.
In 2021 we launched five new andimproved haircare ranges made with
Vegan Silk Protein. We’re on track for
all our products to be certified by The
Vegan Society by 2023, guaranteeingthat no animals are harmed at any
stage of our product development or
manufacturing.
Some of our supply chains arecomplex, but we’re committed toensuring that our sourcing of raw
materials and natural ingredients is
as transparent as possible, so we canbe sure of our indirect environmental
impact as well as the impact of ourown activities.

Certification or traceabilityof The Body Shop purchasedmaterials in 2021
By 2025, as part of Commitment
to Life, Natura &Co aims to enforce
full traceability and/or certification for the criticalsupply chains of six materials (palm oil, mica,
paper, ethanol, soy and cotton – see below).
Where possible, the group is certifying thesematerials against external, good practice standards.
Palm oil:

19.1% certified as Roundtable on

Sustainable Palm Oil (RSPO) Mass Balance (18%)
or RSPO Segregated (1.1%). The remaining volumes
are covered with smallholder credits (53%)10 andregular credits (28%), meaning our palm oil is 100%
sustainably sourced.
Mica:

95.2% traceable (as no global

certification standard is available, though we’rea member of the Responsible Mica Initiative andsource from a restricted Mica supplier list which
includes only members of the Responsible Mica
Initiative.)
Paper:

67.8% certified by FSC
Ethanol:

2.8% certified as Bonsucro, Fair For Life,
fair-trade and/or organic
Soy:

0% certified (partly because ofincomplete data)
Cotton:59.9% certified as organic,

including Global Organic Textile Standard (GOTS).

10 Smallholder Groups we have purchased carbon credits from include: Univanich-Plaipraya Community Enterprise Group, PhanomLand Settlement Cooperatives Limited, Koperasi Unit Desa (KUD) Pemura, KUD Marga Jaya, Perkumpulan Cahaya Putra Harapan

THE BODY SHOP Sustainability Report 2021 19

ENVIRONMENTAL JUSTICE

Our product packaging11
At The Body Shop, we’re making huge
strides in reducing packaging, andincorporating more recyclable andrecycled content.
Reducing product packaging is
the best way to improve ourenvironmental impact in this area,
helping to eliminate waste. The Body
Shop was the original refill pioneer
back in the 1970s, and we’re leading
the refill revolution again today.
In April 2021, we started a fiveyear programme of rolling out refill
stations across our stores. We
exceeded our 2021 target by launchingover 450 refill stations in 34 countries,
which has already prevented over
120,000 plastic bottles from going into
circulation.
This is having a positive impact on
customer behaviour. In stores with

ENVIRONMENTAL JUSTICE

refill stations, nearly 1 in 5 people(18%) return to refill their aluminium
bottles with their favourite products,
compared to 15% who repurchasea product in our recycled plastic
bottles. By 2023, our planned
additional refill stations – some 400
a year – could reduce plastic waste
by more than 25 tonnes per year. We
also have plans to expand our refill
scheme to more products, which willfurther increase its impact.
As part of Natura &Co, by 2030 our
packaging goals are that 100% of our
packaging material will be reusable,
recyclable or compostable, and
50% of the plastic we use will be ofrecycled content.
When we do use plastics, we
maximise our use of post-consumer
recycled (PCR) material wherever
possible. PCR has a smaller carbon
footprint than virgin plastic, which
supports our progress towards net

zero and prevents plastic frombecoming waste. In 2021, 47% of our
total plastic packaging was recycled(by weight), a significant year-on-yearincrease. This is because we switched
the packaging of some major products
from 0% to 100% PCR.12 By weight,
77.5% of all our plastic packaging was
widely recyclable.
In September, we relaunched our
Return, Recycle, Repeat in-store
recycling programme in the UK,
Singapore and Hong Kong, enabling
our customers to return packaging to
us for repurposing. We’re operating
this scheme with partners who
can guarantee that packaging is
responsibly repurposed, while
respecting labour rights. We’ll expand
this to other markets where andwhen supply chain visibility and local
partners can give us the same levelof assurance. While this means thatour progress in this area has beenslower than planned, it’s important for
us to ensure that our environmental
schemes have a positive social
impact.
We purchased 782 tonnes ofCommunity Fair Trade recycled plastic
from India via our partner Plastics
for Change in 2021 – a significant
increase over 2020, when thescheme collected over 400 tonnes ofplastic bottles for repurposing. This
relationship has both economic andsocial benefits, as it reduces waste
entering the environment and gives
waste pickers access to fair incomes
and improving working conditions.
We use this recycled plastic in our
product packing such as shampoo
and conditioner bottles as well as our
new Body Butter tubs.

our product packaging, less than in 2020.
In line with our policies, 100% of thepaper and wood we use
is from FSC certified
sources.
We’re redesigning
our packaging to use
more metal and glass,as these materials
are robust so can bereused multiple times
and have high global
recycling rates so areless likely to become
waste. We more thantripled our use of metal
packaging to 389 metrictonnes (by weight, 20%of this was recycled and/or certified).
Since 2020, we’ve increased the total
weight of our glass packaging to 2,214
metric tonnes. In 2021, 36% of our glass
packaging was recycled and/or certified.13

Overall, we used 3,620 metric tonnesof plastic packaging in 2021 (including
tertiary/transport packaging) – asimilar amount to 2019 but slightly
more than in 2020. We used 1,441
metric tonnes of wood/paper fibre in

11 See the appendix for additional data on the environmental credentials of the packaging we use, and trends over time.

20 THE BODY SHOP Sustainability Report 2021

12 It also reflects a data gathering change from recording the packaging units we sold in a year to those we purchased during the year.
13 In 2021, 46.6% of our product packaging was made from plastic, of which 47% was PCR, 28.9% was made from glass, 18.8% fromwood/fibre, 5.1% from metal, and 0.6% from other materials.

THE BODY SHOP Sustainability Report 2021 21

NEXT STEPSNEXT STEPSIn 2022, The Body Shop will build on our recent achievements andcontinue upping our game to reduce our environmental impact anddrive social and environmental justice.

B CORP™

Each company market andinternational function will implement
the actions in their improvement plan
to deliver B Corp™ targets. This will
prepare us for our re-certification in
2023.

We will recruit and launch a Youth Collective to workwith our CEO and Executive Leadership Team to ensurethat our strategic decisions take youth perspectives into
account.

We are planning to submit 20 B Corp™
Impact Assessments to preparefor B Corp™ recertification in 2023.
This devolved approach allows eachof our markets to drive continuous
improvements in ways that are most
relevant to the local context. Thisapproach is designed to ensure wide
ownership of the sustainability agenda
across our business, and a more
integrated and sustained strategic
approach than a box-ticking exercise
once every three years.

In partnership with the United Nations SecretaryGeneral’s Envoy on Youth, we will launch Be Seen Be
Heard, a three-year global campaign calling for moreyouth voices in the halls of power. Our most ambitious
campaign to date, this will aim to make one legislation orpolicy change in each of the 80 countries where The Body
Shop operates.
In 2022, we will be expanding our Open Hiring programme
to include training, development and social support too.
The Body Shop is working with charity partners to provide
training and apprenticeships to equip people with theessential skills and confidence they need to be readyfor work in the future. In 2022 we plan to bring in over
1,500 new employees through Open Hiring, with at least
350 coming from communities served by our charity
partners. Beyond 2022, we aim to expand our Open Hiring
programme to even more markets around the world, as
well as piloting Open Hiring for several corporate andglobal function roles in the UK too.

Be
Seen
Be
Heard
have a vital
Young people
thepart to play in
affect us all.
at
th
s
on
si
deci

of the owners

MEADHWP010

ign
Join our campa

Be
Be
Be
Be

Seen
Seen

We will continue to improve ourenvironmental performance tocontribute to meeting group-wide
Commitment to Life environmental
targets.
As part of Natura &Co, we willbuild on the knowledge from ourcomprehensive foot printing exercise
by evolving our data collection
systems and setting Science-Based
Target Initiative goals for scope 1, 2
and 3 emissions.
emissions
Working across our business and as
part of our group, The Body Shop willdevelop strategic emission reductionplans,, focusing on our greatestplans
sources of emissions – our products,
packaging and distribution. To address
our indirect emissions from thepurchase of electricity (scope 2), we
will finish rolling out automatic meter
readers wherever feasible.
To make further progress towards
group-wide Commitment to Life
goals on circularity and regeneration,
we will continue to progress
towards full circularity in The Body
Shop packaging and further otherregenerative business practices.
Around the world, we will open atleast 400 more refill stations in ourstores.

Heard
Heard

© 2022 The Body

Shop Internationalrights reserved
Limited All

Absolutely no

reproduction

without the permission

ENVIRONMENTAL JUSTICESOCIAL JUSTICE

22 THE BODY SHOP Sustainability Report 2021

THE BODY SHOP Sustainability Report 2021 23

2021

SUSTAINABILITYREPORT SUPPLEMENTARY DISCLOSURESABOUT THIS DOCUMENTECONOMIC IMPACT

This document supplements The Body Shop International Ltd1 2021 Sustainability Report.
In the interests of transparency and enhanced accountability, it provides additional data on
our economic, environmental and social sustainability performance from 1 January 2021 to
31 December 2021, in line with global reporting frameworks. Unless otherwise stated, thedata relates to our global performance.2

At The Body Shop, we monitor customer satisfaction using a survey. The results for 2018–2021 areoutlined in the following table.3

This report does not include The Body Shop LatAm. which covers The Body Shop markets
located in Latin America.

Business structure (as of end 2021)

Customer Satisfaction

Satisfaction
measurement

Unit

Satisfied
respondents% of satisfied respondents out of
total respondents

2018

2019

2020

2021

89%

91%

77%

77%

Product Quality and Recall Management

Natura &Co Holding
Executive Chairman and Group CEO - Roberto Marques

We had no recalls of products between 2018 and 2021.

Policy Influence
The following table shows our total contributions to UK-based trade associations in 2019–2021,
to the British Retail Consortium, the Cosmetic Toiletry and Perfumery Association and the Direct
Selling Association.

The Body Shop

Natura &Co LatAm

Aesop

Avon International

CEODavid BoyntonCEOJoão Paulo FerreiraCEO
Michael O’Keeffe

CEOAngela Cretu

Avon LatAm

Aesop LatAm

NaturaIncludes all operations
under The Body Shopbrand, except thoselocated in Latin
America.

The Body Shop LatAm

The Body Shop

Aesop

Avon International

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

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

Natura &Co LatAm
Includes all operations
under the Natura
brand in all markets
and Avon, Aesop
and The Body Shopbrands located in Latin
America (‘LatAm’).

1
2

Referred to in this document as The Body Shop.
Some information reported in our 2020 Sustainability Report is not included this year due to data being immaterial to us, data
being unavailable or because it is covered by Natura &Co reporting. For more information about our performance as part of Natura&Co, see the Natura &Co 2021 Annual Report, available at: www.naturaeco.com/annual-report-2021

25 THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures

Organisation Type
Trade associations or tax-exempt groups(such as think tanks)

2019
Contribution

2020
Contribution

2021
Contribution£25,503£49,176£43,156

Code of Conduct Breaches
Ethics & Compliance are managed by Natura &Co as a group-wide function. In 2021, the teamreceived allegations of two code of conduct breaches at The Body Shop. After investigation, bothcases were found to be unsubstantiated. These cases are summarised below.
Primary Issue

Discrimination

Retaliation

3

Primary Case
OutcomeUnit(1) An allegation that a former employee wasdiscriminated against because of their race and sex(2) An allegation that an employee has an inappropriate
management style
An allegation that an employee received disciplinary
action after reporting misconduct in good faithUnsubstantiatedUnsubstantiated

In 2021, this survey had a response rate of 4.7%, an Increase from 3% In 2020.

THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures 26

ENVIRONMENTAL IMPACTENVIRONMENTAL IMPACT

Operational Eco-efficiency

Our parent group Natura &Co works with The Carbon Trust to produce data on direct and indirect
greenhouse gas emissions relating to our business, as outlined in the following tables.
As a business and as a group, our aim is to achieve net zero status by 2030. Our reported carbon
emissions for 2021 have decreased due to a better understanding of the data.4
Global Direct
Greenhouse
Gas Emissions(Scope 1)5

Unit

2020

2021

Total emissions

Tonnes of CO2
equivalent

1,1826

1,046

100% when
extrapolated

100% when
extrapolated

Data coveragen/aGlobal Indirect
Greenhouse
Gas Emissions(Scope 2)7

Unit

2020

2021

Total emissions(marketbased)8

Tonnes of CO2
equivalent

4,091

3,919

Total emissions(locationbased)9Tonnes of CO2
equivalent

7,175

6,776

Data coveragen/a

100% when
extrapolated

100% when
extrapolated

2020

2021

Energy Consumption
The table below itemises our energy consumption at The Body Shop in 2020–2021 for all available
company markets. We aim to reduce non-renewable energy consumption to zero in all countries
where renewable alternatives are available.
Energy Consumption

Unit

2020

2021

Total renewable energy
consumption (wind, solar, biomass,
renewable electricity, hydroelectric,
geothermal, etc.)

Megawatt
hours
(MWh)

5,631

7,589

Total non-renewable energy
consumption (nuclear fuels, coal,oil, natural gas, non-renewableelectricity, etc.)

Megawatt
hours
(MWh)

3,770

2,852

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

%

60%

73%

n/a

46% of our company
stores, 100% of ourmain offices and 67%
of our distribution
centres

75% of our company
stores, and 100% of
our main offices anddistribution centres

Coverage11

Water Consumption
10

2020

2021

2020

2021

The following table shows our fresh water consumption at The Body Shop from 2018–2021. The
2021 data is more representative of our overall fresh water consumption. This data is not directlycomparable from year to year and not all of our company markets currently record their water
consumption.12
Fresh Water Consumption

2018

2019

2020

2021

From municipal water supplies/other water utilities(in cubic metres)

6,077

5,241

3,525

3,538

Waste Disposal
The following table shows our available data on solid waste disposal at The Body Shop from 2018–2021. The 2021 data reflects information from more of our sites so is more representative – it does
not indicate an increase in our levels of solid waste disposal.13 In 2021, 1 metric tonne of our waste
went to landfill and 4,004 metric tonnes were incinerated with energy recovery.

4

Provisional 2021 data is based on 2020 emissions factors and has not been verified. Final emissions numbers will be updated laterin 2022.
5 Scope 1 covers direct emissions from company-owned or -controlled sources, as per the Greenhouse Gas Protocol.
6 This figure has been updated since our 2020 Sustainability Report, when we reported a provisional figure of 1,161 tonnes.
7 Scope 2 covers indirect emissions from generating energy purchased and consumed by a company, as per the Greenhouse Gas
Protocol.
8 A market-based method uses an emission factor that is specific to the electricity that a company has purchased, based on theGreenhouse Gas Protocol.
9 A location-based method reflects the average emissions intensity of grids on which energy is consumed, based on the Greenhouse
Gas Protocol.
10 This figure has been updated since our 2020 Sustainability Report, when we reported a provisional figure of 8,335 tonnes.

27 THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures

Solid Waste Disposed (in tonnes)

2018

2019

2020

2021

Total waste disposed

823

749

576

3,674

Total waste used/recycled/sold

619

517

348

4,005

11 Not all company markets currently report their energy consumption, though significantly more did so in 2021 than in 2020. Thesefigures exclude all franchisee stores.
12 2018–2020 data covers our London and Sussex sites in the UK only, and no stores. 2021 data covers a limited number of sites thathave reported their water consumption in the UK, Spain, Portugal and Japan.
13 Most of our markets do not currently record their waste disposal. 2018–2020 data covers all solid waste disposed by our London
and Sussex sites. 2021 data covers the same metric, and waste from a limited number of sites in the UK and Japan in 2021. The
UK is our largest market and the location of our two global headquarters. Japan is our fourth largest national market, based on our2020 full-time equivalent headcount.

THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures 28

SOCIAL IMPACTENVIRONMENTAL IMPACT

Corporate Citizenship and Philanthropy

Packaging Materials
At The Body Shop, we continually review the quantity and composition of our product packaging to
reduce our environmental footprint. The following table summarises the content and weight of our
non-plastic packaging in 2020 and 2021.
Since 2020, we have significantly increased our use of more easily recyclable (and in some cases
recycled) metal and glass packaging, in place of plastic. Specifically, we introduced aluminium
bottles for our in-store refill scheme and metal tins for our Camomile product range.

The value of our corporate citizenship and philanthropic activities and contributions in 2020–2021
are outlined in the following tables. Some of these figures aren’t directly comparable year on year
because of methodology changes enabling us to more accurately allocate funds to the categories
reported. Currencies are reported in UK £ and may have been converted from local market
currencies.
Type of Activity

2020 Total

2021 Total£450,000£38,03522

Total Weight(metric tonnes)

Recycled/
Certified Material(% of total weight)

Charitable donations (cash and product)
Community investments (partnership payment
or donation made to a partner)

0£1,484,07323

2020

2021

2020

2021

1,944

1,441

100%

100%

Commercial initiatives (donations attached to aservice)£1,500,000£4,15124

Metal (such as aluminium or steel)

116

389

n/a

20%17

Total value£1,950,000£1,526,259

Glass

1,850

2,214

21.5%

36%

Type of Contribution

2020 Total

2021 Total

At The Body Shop, we specifically measure our progress towards increasing the percentage of ourplastic packaging that is recyclable and/or recycled. The following table shows this progress from2018–2021. Not all figures are directly comparable year on year because of our increasingly strict
reporting standards, based on our evolving understanding of the meaning of ‘recyclable’.

Cash (donations and community investments)£1,500,000£1,364,728£4,918 (UK only)25£11,023 (UK only)

Natura &Co has a target to ensure that, by 2030, 100% of the plastic we use in our packaging
is recyclable, reusable or compostable, and 50% of it is recycled before we use it. We madesignificant progress against this last target in 2021, increasing our use of post-consumer recycled(PCR) plastic.

In-kind giving (product or service donations,projects/partnerships or similar)£450,000£40326

Total value£1,954,918£1,376,154

Packaging Materials

Wood/paper fibre

14

15

16

Type of Plastic Packaging

2018

2019

2020

2021

Total weight (metric tonnes) of all plastic packaging

3,824

3,643

3,25318

3,62019

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

89%

89%

80%

77.5%20

Percentage of compostable plastic packaging(% of total weight of all plastic packaging)

0%

0%

0%

0%

Percentage of recycled content within plastic
packaging(% of total weight of all plastic packaging)

8%

8%

28%

47%21

14 Excluding wooden pallets (3,370 including wooden pallets).
15 Including tertiary packaging (pallets/shipping cartons, etc.), we used 4,394 tonnes (of which 1,955 are reusable wood pallets).
16 We have a standard requirement that all paper and wood products used are from Forest Stewardship Council (FSC) certified
sources.
17 Recycled metal content is limited to our refill bottles, representing 78 tonnes.
18 Including tertiary/transport packaging.
19 Including tertiary/transport packaging. The weight of sales packaging alone = 3,575 tonnes.
20 2021 data reflects a methodology change and a higher threshold for what is considered recyclable. In 2021, we considered
packaging made from a limited set of plastics (PET and polyolefins) and in formats that are widely recycled (bottles/caps, etc.) to
be recyclable, and considered all other components non-recyclable.
21 2021 data reflects switching major products from 0% PCR polypropylene plastic (PP) to 100% PCR polyethylene terephthalate (PET)
and a methodology change – recording purchased rather than sold units.

29 THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures

Time (employee volunteering during paid
working hours)

P
I
H
S
N
E
Z
CITI
22 In 2020, global functions donated products worth £450,000 to approximately 50 hospitals, to support healthcare workers during
the Covid-19 pandemic. In 2021, only company markets made charitable donations.
23 Methodology changes have enabled us to more accurately allocate funds to this category.
24 Reduction compared to 2020 reflects a change in our charitable giving and activism strategy.
25 The low figure in 2020 is due to Covid-19 restrictions and other factors lowering uptake of volunteering hours, and some inaccurate
recording of those hours.
26 In 2020, global functions donated products worth £450,000 to approximately 50 hospitals, to support healthcare workers during
the Covid-19 pandemic. In 2021, only company markets made donations within this category.

THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures 30

SOCIAL IMPACT

SOCIAL IMPACT• Workforce Breakdown: Other Minorities

Workforce
All workforce data in the following sections relates to The Body Shop payroll employees, including
short-term and seasonal employees. It excludes franchisee employees, third-party agency workers
and contractors.
We are committed to equality and inclusion across all protected characteristics. By 2030, as
part of Natura &Co, we want at least 30% of our executive and senior leaders to be from underrepresented groups. The following tables provide a gender breakdown, and a breakdown ofminorities, among our employees in 2021.

• Workforce Breakdown: Gender

We monitor several gender indicators across our global workforce, as outlined in the following
table covering 2018–2021.27
Indicator

2018

2019

2020

2021

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

89.1%28

90.4%

89.9%

90.0%

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

66.5%

Share of women in junior (first level) management
positions (% of total junior management positions)

72.9%

84.6%

74.8%

US-based
employees

Australia-based
employees

88.7%

80.0%

71.0%

% of total
employees based inthat country 2021

% of total employees
in senior management
positions based in thatcountry 2021

White British

10.1%

5.1%

White Other European

1.5%

Not available

All other categories

3.2%

2.2%

White not Hispanic or Latino

10.6%

Not available

Black

3.3%

Not available

Hispanic Latino

3.4%

Not available

All other choices

4.8%

Not available

Australian

7.9%

5.2%

All other choices

30.4%

2.0%

27 We recognise all gender identities, including transgender, non-binary, intersex, and additional gender identities. The Information In
this table reflects currently available data, and additional gender identities are included in the breakdown of other minorities on
page 32 of this report.
28 All figures In this Appendix have been rounded to the same level for consistency, which may have caused minor changes topreviously reported figures even though the underlying data and performance have not changed.
29 As low numbers of people chose to disclose this information in our survey, the % of each category is lower than in our employee
population. In other markets, the number of respondents was too small to provide meaningful data. ‘All other choices/categories’
Include two or more answer options with less than 20 respondents each. We do not detail which other choices are Included toensure anonymity of respondents.

31 THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures% of full-time
equivalent (FTE)
employees 2021

People with a physical disability

1.3%

LGBTQI+ people

5.8%

People <30 years old

43.5%

People 30–50 years old

45.3%

People >50 years old

11.0%

Freedom of Association

The following table shows the breakdown of our workforce in the UK, USA and Australia in 2021.
This data is based on employees’ self-identification in our demographic data survey conductedin early 2022.29

UK-based
employees

Diversity Indicator

70.0%• Workforce Breakdown: Race/Ethnicity and Nationality

Employee Race/Nationality/Ethnicity
breakdown

These results reflect The Body Shop employees who self-reported as having a physicaldisability or being lesbian, gay, bisexual, transgender, queer, intersex or additional (LGBTQI+)
in our demographic data survey conducted in early 2022.30 Age data was reported using ourhuman resources systems, so it fully and accurately represents our employee population as ofDecember 2021.

In 2018, 11.4% of our global employees were represented by an independent trade union or coveredby collective bargaining agreements. In 2019, this figure was 11.3%, in 2020 it was 10.4%, and in
2021 it was 20.3%. Our 2018–2020 data only covered Germany and Sweden. Our 2021 data covers
all European company markets except Luxembourg.

Training and Development
In 2020, we invested an average of £197 per full-time equivalent (FTE) post on employee training
and development globally. In 2021, despite running more training workshops, this figure reduced to£79 as we facilitated more training internally and conducted more training virtually.31
In 2021, we spent an average of 3 hours per FTE post on training and development run by
our Global Learning team, but do not have data for all locally run training and development
expenditure.32 We also ran a LinkedIn Learning pilot attended by 544 selected employees, at a costof US$29 per user.

30 As low numbers of people chose to disclose their data in the survey, the % of each category is lower than in our employee
population.
31 Based on 5,058 FTE posts (2020) and 5,076 (2021). This does not reflect a reduction in employee training. In early 2020, before theCovid-19 pandemic, we spent more on external facilitators and travel to attend in-person training.
32 Only based on hours of training attended by 1,100 individuals on leadership programmes, measured against our global headcount of
5,076.

THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures 32

SOCIAL IMPACT

SOCIAL IMPACT

Talent Attraction and Retention

Employee Support Programmes

The Body Shop employee hiring data in the following table relates to the UK only (our largest
market and the location of our two global headquarters). The increase in hires is a result of
expanding expertise in our IT department and growing The Body Shop at Home and Digital hubs.

At The Body Shop, we value our employees highly. We have numerous initiatives to support andenhance their health and well-being, as outlined below.

Talent Attraction Indicator

2018

2019

2020

2021

• Flexible Working Hours

Total number of new employees

143

116

125

269

£4,006£3,249£2,485£2,252Average hiring cost (per FTE new hire role)

The following two tables highlight our global employee turnover and then our global voluntary
employee turnover between 2018 and 2021. In 2020 and 2021, we started breaking down more ofthese figures by gender33 and by management level for additional transparency.
Employee Turnover Rate

2018

2019

2020

2021

Total turnover as % of total employees34

47.8%

40.5%

45.0%

56.0%

Total turnover rate – women

n/a

n/a

89.5%

57%

Total turnover rate – men

n/a

n/a

10.5%

42.0%

Total turnover rate – leadership/top management

n/a

n/a

n/a

11.0%

Total turnover rate – junior management

n/a

n/a

n/a

11.0%

Voluntary Employee Turnover Rate

2018

2019

2020

2021

Voluntary turnover as % of total employees35

36.3%

30.5%

20.0%

39.0%

Voluntary turnover rate – women

n/a

n/a

n/a

40.0%

Voluntary turnover rate – men

n/a

n/a

n/a

32.0%

Voluntary turnover rate – leadership/top management

n/a

n/a

n/a

9.0%

Voluntary turnover rate – junior management

n/a

n/a

n/a

10.0%

Employee Engagement
Engagement levels among our global employees from 2019–2021, based on our twice-yearly
employee engagement surveys conducted by Glint, are shown in the following table.
Employee Engagement Indicator

2019

2020

2021

2021
TargetEmployee engagement level(% of actively engaged employees)

76

78

76

76

Data coverage(% of total employees who responded)

70%

72%

84%

n/a

33 We recognise all gender identities, including transgender, non-binary, intersex, and additional gender identities. These figuresreflect binary genders based on employees’ self-reported gender identity.
34 The proportion of employees who left The Body Shop in each calendar year, expressed as a percentage of our total employees.
35 The proportion of employees who chose to leave The Body Shop (such as by resigning or taking retirement) in each calendar year,
expressed as a percentage of our total employees.

33 THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures

We offer the option of part-time work
schedules to all employees globally (officeand store), in line with our local flexible
working policies. And we offer flexibility
in office-based hours in all our company
markets, reflecting Work-Wise principles ora more recent or comprehensive local policy
equivalent, such as our UK Ways of Working
policy.

• Working From Home/Remote Working
Arrangements
Before 2021, we offered a flexible approach tooffice-based employees, who could choose towork remotely where possible, in line with theprinciples of the Work-Wise flexible working
programme or a local policy equivalent. During
the early stages of the Covid-19 pandemic(early 2020 to late 2021), all our offices wereclosed at times according to local restrictions.
We consequently adopted a Remote First
approach for all office-based employees,
asking them to work remotely wheneverpossible (remote working isn’t possible forstore and distribution centre-based roles).
As local restrictions eased in late 2021, we
ran a trial, asking office-based employees toattend the office on four days per fortnight
on a voluntary basis, and work remotely
the rest of the time. Based on that trial, our
new Hybrid Working Policy came into effectin early 2022 – asking employees to attend
the office on four days per fortnight, andotherwise work remotely.

• Childcare Facilities and Support
We offer some form of contribution tochildcare costs in a number of our major
company markets. This varies according tolocal practice but is mainly via tax relief onchildcare costs through a payroll deduction
system.
In other markets, our employees access
relatively generous state benefits, especiallyin Europe, the Middle East and Africa(EMEA). We operate an on-site nursery at
Watersmead, UK, the larger of our two global
headquarters.

• Paid Parental Leave
Paid Maternity Leave
Our policy is to consider the quality ofmaternity leave in the context of local statematernity benefits and local custom.
Our maternity leave policies exceed the legal
minimum in most of our major company
markets, where the legally required coverage
is minimal or average. In most cases, we top
up the statutory minimum maternity pay to
100% of an employee’s salary for a longer
period.
In markets where the legal minimum periodof paid maternity leave is relatively generous(especially in EMEA countries), our employees
access government benefits via national social
security systems. Most of our employees
are store staff, where it isn’t customary for
employers to top up the local paid maternity
leave entitlement.
Paid Paternity Leave
Our policy is to consider the quality ofpaternity leave in the context of local state
benefits and local custom.
Our paternity leave policies exceed the legal
minimum in most of our major company
markets, where the legally required coverage
is minimal or average. In most cases, we top
up the statutory minimum paternity pay to
100% of an employee’s salary for a longer
period.
In markets where the legal minimum periodof paid paternity leave is relatively generous(especially in EMEA countries), our employees
access government benefits via national social
security systems. Most of our employees
are store staff, where it isn’t customary for
employers to top up the local paid paternity
leave entitlement.

THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures 34

SOCIAL IMPACT

Work-related Fatalities and Injuries
Between 2018 and 2021, our employees and contractors experienced no work-related fatalities.
The number of people who report having been injured while working in our premises or while on
business for us, resulting in time taken off work (our lost-time injury frequency rate) is outlined in
the following table. The data reflects all our employees and contractors globally, from 2018–2021.
The Covid-19 pandemic caused data changes in 2020–2021, such as fluctuations in our use ofcontractors and erratic store closures (most lost-time accidents occur in-store). We are focusing
improvement actions in our store rooms and store office areas, with the support of dedicatedMarket Safety Champions.
Lost-time Injury Frequency Rate

2019

2020

2021

2021

Employees injured requiring time off work(per million hours worked)

2.86

2.48

1.30

1.25

Contractors injured requiring time off work(per million hours worked)

3.79

2.67

6.6

2.79

35 THE BODY SHOP Sustainability Report 2021: Supplementary Disclosures