SUSTAINABILITYREPORT
2022

CONTENTS
FOREWORD
THE BODY SHOP: MAKING POSITIVECHANGE IN THE WORLD

4

Our business structure

4

Our commitment to life 		sustainability vision		5

Our strategic priorities

5

BEING A B CORP

6

Our B Corp performance

6

SOCIAL JUSTICE

3

7

Pioneering business practices

7

Governance

8

Workers

9

Community

10

Customers

11

Activism

12

ENVIRONMENTAL JUSTICE

13

Reducing our impact on
the environment

14“All of nature – humans,
animals, the Earth itself– is interconnected andinterdependent. We are allin this together and we areat a crossroads. We have thepower to preserve or destroy
the sacred interconnectionsof life on this planet.”

Our company sites

15

Anita Roddick, Our Founder

Our products

16

Our product packaging

17

NEXT STEPS18

B Corp18

Social justice18

The Body Shop strategy

19

Environmental justice19

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THE BODY SHOP | Sustainability Report 2022

FOREWORD
Now more than ever, the world needs businesses to pursue socialand environmental justice to help mitigate climate and biodiversity
emergencies and growing inequality around the world. At The
Body Shop we have always existed to fight for a fairer and more
beautiful world. It’s what our trailblazing founder Dame Anita
Roddick set out to do when she founded The Body Shop in 1976,
and it’s what continues to drive us forward today.
Being a purpose driven business comes with its challenges. However, we know that asa global business we have a responsibility to try and drive positive behavioural change
within both our own organisation and among producers, suppliers, partners, employees
and customers. In doing so we also hope to encourage other businesses to do the same.
Our status as a certified B CorporationTM means we’re part of a global community ofbusinesses that meet high standards of social and environmental impact, and we’re
proud to be part of this collective. It helps to hold us accountable as we continue toprogress on our journey to being the most sustainable business we can be.
In 2022, we made the first step towards achieving net zero greenhouse gas emissions
by understanding the main contributors to our carbon footprint and how we can start
to address them. We have a long way to go, but we’re determined to get there.
Over the course of the year, we also advanced our work on embedding a human rights
approach throughout our business and supply chains, formed a Youth Collective tobring under-represented voices into our Boardroom and launched a three-year global
activism campaign to increase youth participation in public life in over 75 countries
where we operate.
Whatever the role you played in these achievements, thank you. The year ahead looks
exciting and challenging, and I have no doubt that The Body Shop’s global collective
will continue to push for change.

Christopher DavisInternational Director of Sustainability,
Activism and Corporate Communications

THE BODY SHOP | Sustainability Report 20223

THE BODY SHOP:
MAKING POSITIVECHANGE IN THE WORLD
Founded in 1976, The Body Shopbecame a certified B CorpTM in 2019,confirming that we meet high standardsof social and environmental impact.
The Body Shop seeks to make positive change inthe world by offering high-quality, naturally inspired
products produced ethically and sustainably, and by

campaigning globally for social and environmental
justice. Having pioneered the philosophy thatbusiness can be a force for good, this ethos isstill our driving force.
The Body Shop today is a truly omnichannel businesswith 2,500 retail locations (owned and franchised)in more than 80 countries; The Body Shop at Home
direct to consumer channel in the UK and Australia;
and an e-commerce presence in 60 markets.

Our Business Structure
Along with Natura, Aesop1 and Avon, The Body Shop is part of Natura &Co Holding. Within this global
structure, all Natura &Co brands innovate to promote positive economic, social and environmental impact.
Together, we use Natura &Co’s Commitment to Life Sustainability Vision and various Holding-wide policies
to drive our innovations and ambitions in social and environmental justice. But each brand, including The
Body Shop, manages its own approach to achieving these aims.

Aesop
LatAm

Avon International
CEO
Angela Cretu

The Body ShopCEODavid Boynton2

NaturaAvon
LatAm

Natura &Co LatAm
CEOJoão Paulo Ferreira

The
Body Shop
LatAm

Aesop
CEO
Michael O’Keeffe

Natura &Co Holding
Holding CEO
Fábio Barbosa

1 In August 2023, Natura &Co completed the sale of Aesop.
2 David Boynton was CEO of The Body Shop throughout 2022 but stepped down on 30 April 2023. Ian Bickley, a Natura &Co Board Director,
became Interim CEO from 1 May 2023 and will fulfil this role until a permanent CEO is appointed.

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THE BODY SHOP | Sustainability Report 2022

Our Commitment to Life Sustainability Vision
Commitment to Life comprises three pillars that align and unite The Body Shopand our sister brands to tackle urgent global challenges.

Commitment to Life pillar

The Body Shop progress since 2020

Address the climate crisis and protect the
AmazonWe’ve reported our carbon emissions since 2021 and areworking on ambitious plans to achieve net zero

Defend human rights and be humankind

In 2022, almost all of our global employees received a living
wage. We have also published policies for our critical supply
chains (palm oil, mica, paper, alcohol, soy and cotton) andstarted baselining the six materials and their current level ofcertification/ traceability, which we have finalised and started
implementing for the Natura &Co Human Rights Statement

Embrace circularity and regeneration

We’re continuously increasing the recycled and recyclable
content of our packaging, and the biodegradable ingredientcontent in our product formulas

For a full overview of our progress towards Commitment to Life targets, please see the
Natura &Co 2022 Annual Report Sustainability data.

Our Strategic Priorities
At The Body Shop, we take a holistic, business-wide and evidence-based approachto achieving our social and environmental targets. This ensures that our priorities andstrategies reflect areas where we can have the most direct and indirect impact. While
Commitment to Life is our Holding-wide strategy which drives improved social andenvironmental performance, at The Body Shop we have also used our position as a B Corp
to drive improvements across the business.
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BEING A B CORP
Since 2019, The Body Shop has been part of the
B Corp movement – a global community of likeminded organisations working to create a morejust and equitable world. As a Certified B Corp,
The Body Shop must meet ever-higher standards
relating to their governance, workers, community,
customers and the environment. By working
together, B Corps strengthen their impact andinfluence wider business practice.

Our B Corp Performance
In 2022 we prepared for the more stringent standards
we must meet in 2023 to recertify as a B Corp.
We embedded B Corp approaches in our everyday
business practices across every company-owned
market and international business function.

Since 2021, we’ve been growing our B Corp
community and developing tools based on theBusiness Impact Assessment to help our franchisepartners drive their own performance and become
certified B Corps in their own right, wherever possible.

Notable achievements driven by being a certified B
Corp include:

In 2022 The Body Shop became a founder memberof the B Beauty Coalition, a global group of over
60 B Corps that collaborate to improve socialand environmental sustainability by strengthening
business standards and practices. The coalition also
makes it easier for beauty customers to make ethicalchoices.

• Further expanding our Open Hiring Programme (seepage 9)• Devising an Environmental Management System
to systematically reduce the global energy, water
and waste footprint of our stores and distribution
centres (see page 15)• Improving our supply chain traceability (see page 16)• Further increasing the recyclability of our packaging(see page 17)• Using whole carbon lifecycle analyses of key
products to help us learn how to dramaticallyreduce our carbon emissions

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THE BODY SHOP | Sustainability Report 2022

Our International Director of Sustainability, Activism
and Corporate Communications joined the Board
during the Coalition formation but stood down as
the initiative was established. During the year, thecoalition doubled its membership and was recognised
as an Elle Green Beauty Star.

SOCIAL JUSTICE
Right from the start, The Body Shop has been asocial justice pioneer in our ingredient sourcing,product marketing, advocacy campaigns and our
employment policies.
Our values, and being a certified B Corp, commit us to treating all ourworkers, customers, suppliers and their communities fairly and equitably.
Tackling the challenges facing today’s world requires not only systemicchange but a ‘just transition’ to ensure that nobody is left behind. Thismeans moving to a more socially and environmentally sustainableeconomy in a way that creates a fairer and more equal society. It involves
redressing past injustices, building good relationships with each otherand our planet, and making decisions in a more equitable and inclusive
way. This principle guides everything we do at The Body Shop.

Social justice:
Pioneering Business Practices
The Body Shop has pioneered, and continues to pioneer,a range of business practices that seek to have a positive
impact within and beyond our global business.
The Body Shop is an active member of numerous sectoralor commodity-specific coalitions, and ethical trade andresponsible sourcing frameworks. In many cases, we were
founder members and/or help lead working groups toimprove knowledge and practice. Further information canbe found in our Modern Slavery Statement.
In 2022 we actively worked with:• Action for Sustainable Derivatives• Ethical Trading Initiative• Global Shea Alliance• The Indirect Procurement Human Rights Forum• International Transport Workers’ Federation• Mekong Club• Responsible Mica Initiative• Responsible Recruitment Toolkit• Roundtable for Sustainable Palm Oil• Sedex• World Fair Trade Organization
THE BODY SHOP | Sustainability Report 2022

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Social Justice: Governance
All B Corps are required to be ethical and transparent
in their social impact. At The Body Shop, good
governance enables us to balance stakeholder andshareholder interests and hold ourselves formallyaccountable in this area.
To meet the needs of our diverse customers andpartners, we’re striving to make our leadership morediverse. In 2022, 63% of our Senior and Executive
Leadership teams were women (2021: 63%), reflecting
the fact that most of our employees are female.
We are committed to ensuring that our leaders
come from diverse communities, including women,
LGBTQ+ people, people with disabilities, and people
from ethnically and racially diverse backgrounds.
Our priorities for 2023 are continuing to increase
leadership representation of people from marginalised
identities, and further strengthening our seniorleaders’ capabilities and skills around inclusion. To
include more youth representation in our boardroom,
this year we also launched our Youth Collective(see box below).

In 2022 we planned a new sustainability governancestructure, which will come into effect from 2023.
Under this structure, each Commitment to Life target(including our net zero targets) will have at least
one owner at senior leadership level, and at least
one reporting champion who will report quarterly
performance to our Sustainability team, who willin turn report progress to our Executive Leadershipteam. Reporting champions will also provide data forour other external reporting requirements.
Alongside this, we’re devising two working groups toensure a cross-functional approach to governanceand reporting in relation to our direct and indirect(scope 1, 2 and 3) carbon emissions, and to overcome
challenges such as stores where we have lessvisibility and control over our utilities, and markets
where renewable energy is not readily available. The
working groups will come into effect from 2023.

Our Youth Collective
In May 2022 we launched our Youth Collective to bring youth voices into key strategic
business decisions in The Body Shop’s boardroom. We want to give young people theopportunity and the platform to voice their ideas in a space where they can have a real
impact.
To be eligible to join the Youth Collective you need to be 30 years old or under and be
employed by either The Body Shop or a fellow B Corporation at the time of joining. The
Youth Collective is made up of 12 individuals: 50% internal members from The Body
Shop and 50% external members from other B Corp organisations.
The Executive Leadership team within The Body Shop and/or the Youth Collective
decides on 1-2 topics each quarter that they would like the Youth Collective to makerecommendations on. This could be anything from our current activism campaign Be
Seen Be Heard, to talent acquisition, to our business strategy more broadly.

The Body Shop and B Lab’s Boardroom 2030 Event at COP26

8THE BODY SHOP | Sustainability Report 2022

Social Justice: Workers
Fair and decent working conditions have always
been important to The Body Shop in both our own
operations and supply chains. We are a founding
member of the Ethical Trading Initiative, created
to improve human rights in global supply chains by
developing effective approaches to implementing
internationally recognised good labour practices.
Ensuring that we take care of our workers is also
a key principle of being a certified B Corp, and partof our Commitment to Life sustainability vision.
Reflecting these commitments to our people, ouremployee satisfaction score for 2022 was 74 across
two surveys, just short of Glint’s global benchmarkof 76 (2021: 76 against a global benchmark of 74).
To improve workers’ experience and relationshipwith us, we use inclusive hiring practices, offer
our employees mental health and other support,
and apply best practice standards, policies andtools. We’re proud to offer part-time roles andflexible working arrangements to so many of ouremployees, helping them to fit work around otherareas of their life.
In line with our Commitment to Life target to pay
all our employees a real living wage (higher thanthe minimum wage) by the end of 2023, 96% were
paid at or above this level in 2022 (2021: 100%)and we encouraged our suppliers to do likewise.
This is particularly vital during the current cost-ofliving crisis. Just as importantly, our rewards arefair and equitable. As assessed by the independent
consultancy Mercer, our ‘unexplained’ pay equity gap
in 2022 was -0.77% (2021: -0.8%). This means that
almost all differences between women’s and men’s
pay at The Body Shop reflect their different roles,
locations or skill levels rather than any underlying
inequity.

Approximately 35,410 self-employed The Body Shop at
Home consultants in the UK, US and Australia (2021:
57,769) earned flexibly in 2022 by selling our products
in person or through social media. After huge growthduring the height of the COVID-19 pandemic as people
sought additional earning and purchasing options, weclosed The Body Shop At Home in the US as online
and retail sales eclipsed this channel.
All suppliers are required to sign our Supplier Code of
Conduct which outlines the high standards we expect
of all direct suppliers and their own supply chains inrelation to human rights and employment practices.
In line with best practice we apply extra due diligencein any regions or sectors that are associated withpotential labour exploitation or other human rights
risks, developing tailored approaches to risks whereappropriate. For example, Natura &Co sponsors the
Responsible Recruitment Toolkit, which aims to help
suppliers build their capacity on ethical recruitment
practices thereby reducing labour exploitation risks.
The Body Shop started rolling out this tool among
our labour providers in 2022 and will expand its
scope in 2023.
We report on our responsible procurement workin annual Modern Slavery Statements.
In 2022 we suspended all 26 stores and e-commerce
operations in Russia after the start of the war in
Ukraine, while continuing to support the people
whose livelihoods depend on our business.

Open Hiring and Targeted Recruitment
Since 2019 we have launched and expanded our inclusive
Open Hiring programme, which omits background checks andunnecessary interview questions, helping marginalised people
to overcome barriers to recruitment. We now use this approach
for all permanent and seasonal entry-level store and distribution
centre roles in our four largest markets – Australia, the UK, theUS and Canada.
To date, we have recruited 4,500 people through Open Hiring. In
2022, we hired 1,530 people through this approach (2021: 1,407).
Our surveys suggest that 73% of our Open Hiring recruits faced atleast one barrier to work, particularly a lack of work experience,and that working for us has helped most recruits to improve theirworkplace confidence and skills. Overall, we gave 34% of open
hired seasonal workers longer term roles.
In our four largest markets; UK, US, Australia and Canada, we also
practised Targeted Recruitment in partnership with local charities– hiring 236 people (2021: 101) who faced specific employment
barriers including a lack of education, homelessness, domestic
abuse or being a former prisoner.

THE BODY SHOP | Sustainability Report 20229Social Justice: Community
The Body Shop aims to have a positive impact on the communities in which we operate.
In 2022 our bespoke Community Fair Trade programme sourced quality ingredients, gift
packaging and accessories from 19 producer groups in 15 countries, benefitting over 10,000
people. During the year we purchased 227 tonnes of Community Fair Trade ingredients(2021: 546). This reduction is mainly due to the impact of the COVID-19 pandemic on our
global sales.
For 35 years, our Community Fair Trade programme has achieved positive social andenvironmental impact through partnerships with suppliers who share our vision for a better
future. Together, we pay fair prices, improve working conditions and support sustainable
livelihoods, including for underemployed people such as rural women. Recognising thatmany of our Community Fair Trade partners live in rural (low-income) communities withlimited economic opportunities and those disproportionately affected by the climate
emergency, we also help to fund community projects to improve access to education,
healthcare, sanitation and water conservation facilities.
For example, we’ve sourced Community Fair Trade shea butter from Tungteiya Women’s
Association in northern Ghana since 1994. Over 600 women from 11 villages handcraftshea butter, using traditional methods passed down through generations. Our long-term
partnership is helping to provide the women with financial independence and funds toinvest in community projects. They have built schools, healthcare and water sanitation
facilities benefiting their wider community of approximately 49,000 people.
In 2022, we expanded a pioneering Fair Price approach to 50% of our Community Fair
Trade supply chains. This evidence-based approach ensures that all contributions to our
Community Fair Trade product ingredients are rewarded fairly, helping workers to achievea living income. For example, our pricing incorporates time spent collecting water or fuelinvolved in processing our ingredients.

The Natura &Co Human Rights Statement
In 2022 we published and started applying the Natura &Co Human Rights Statement(policy framework) to embed a human rights approach throughout our business and oursister brands. This reflects the UN Guiding Principles on Business and Human Rights andmeets a Commitment to Life target. We also extended our human rights due diligenceapproach into key indirect sourcing categories such as waste and recycling.
Our shared Human Rights Statement publicly clarifies our zero tolerance of any humanrights infringements in our supply chains, and commits us to integrating humanrights management into all standard business practices based on brand-specific risk
assessments, benchmarks and gap analyses.
This framework helps all workers, contractors, franchisees and business partners
involved with our business to proactively support human rights, particularly amongpeople who are disadvantaged.

Tungteiya Women’s Association: Ghana

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THE BODY SHOP | Sustainability Report 2022

Antonia Tony Fadipe and Martina Grbac in a The Body Shop store

Social Justice: Customers
At The Body Shop, we strive to have a positive impact on ourcustomers’ lives beyond their purchase of our naturally-inspired
products.
Ever since 1976, we have aimed to tackle social issues that ourcustomers care about including embracing all forms of beauty, neverretouching images of our models and promoting self-esteem so that
our customers can feel confident. We have never tested any products
or ingredients on animals and have a 100% vegetarian product range.
Now we’re going one step further, and by 2023 we aim to have all our
products 100% Vegan Society certified.
Our products are increasingly inclusive. For example, we developed
and tested our ultra-nourishing Jamaican Black Castor Oil range for
curly and coily hair types with co-creators from across the globe,
including women and men with a range of hair textures. We test all
our make-up products across all six tones of the Fitzpatrick skintone
scale. In 2022, we expanded our new foundations to 40 shades andco-created our new lipstick assortment with The Body Shop’s
Solidarity & Engagement Ethnicity Network (SEEN) to create a rangeof 20 shades to suit all skin tones.
We also enable and equip our customers to fight for the causes thatmatter to them through our activism campaigns and refill revolution(see page 12). Our new Changemakers’ Workshop stores encouragecustomers to take a stand on social and environmental issues throughthe Act Bay feature. We champion locally relevant initiatives throughthese stores, such as collaborating with and showcasing the work of
local artists. In 2022, 34% of our directly owned and franchised stores
ran locally relevant projects in partnership with local people (2021:16%). These included ceramic sculptures in Norway, screenprints in theUK, murals in India and the Netherlands, and limited-edition packaging
in Japan to raise awareness of environmental issues and body positivity.

“We’re continuing tocreate an internal
environment in which
every colleague is
supported and valued,
and has the tools toreach their potential.
Externally, we want
any person to seethemselves reflected inour stores, our people,
our marketing images
and our products.”
Nykeba King, Global Headof Inclusion and Belonging

THE BODY SHOP | Sustainability Report 2022

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Samson Itodo, Gina Martin, Christopher Davis Jayathma
Wickramanayake and Versha Sharma at the launch of Be Seen
Be Heard in the UN Headquarters, New York

Social Justice: Activism
At The Body Shop, we’ve always believed in the power of business as a force for good.
For us, this includes using our global presence and voice to influence change outside ourbusiness, as well as in our own practices. This is more important than ever.
Activism is in our DNA. Since 1990, we’ve furthered social and environmental justicethrough new legislative action or policy changes in over 24 countries.
Our activism strategy has two main strands. Our markets run targeted local campaigns
relevant to their communities, with support from global colleagues. Alongside this we’rerunning Be Seen Be Heard, our three-year global campaign to amplify youth voices inpublic life.
In 2022 we ran 20 targeted local campaigns (2021:16), on issues ranging from LGBTQI+ discrimination todevastating floods in Pakistan here are 4 examples.
1) “Stop Sexual Violence Campaign” – On April 12th
the Sexual Violence Crime Bill was approved into law
by Indonesian Parliament. It’s passage into law will
enable survivors to seek justice and hold perpetrators
accountable. Since November 2020, The Body Shop
Indonesia have been fighting for this cause withpetitions, donations, and in-store events.
2) “#SHAREYOURPART” – To support the women &girls affected by the devastating floods last summer,
The Body Shop Pakistan collaborated with HER
Pakistan to donate 3x period products for every 1
donation received.
3) “Don’t Ban Equality” – In the midst of Roe vs.
Wade being decided, The Body Shop United States
supported Planned Parenthood in their Don’t Ban
Equality campaign takeover on 13 June. In addition
to a 25k donation and a statement alongside over 60
other beauty brands, this national campaign led byabortion rights supporters organised protests acrossthe US.

In May 2022 we launched Be Seen Be Heard incollaboration with the Office of the United Nations
Secretary-General’s Envoy on Youth. This campaign
seeks to promote policy or legislative change in over75 countries.
The campaign has already driven positive change
across the world, including:• Reducing the voting age in Malaysia• The Government of New Zealand committing todebating votes for 16-year-olds following a Supreme
Court Ruling• Inspiring 37,000 new young voters to register for the
US midterm elections• A petition delivered to the COP climate change
conference in Egypt“Viewed in isolation, grassroots
initiatives are modest: 10 women
4) “UNHCR Australia” – In response to the escalating
planting a tree… But from a global
violence in Ukraine and subsequent growing number
perspective their scale and impactof refugees surpassing 3 million people, The Body
Shop Australia & New Zealand supported UNHCR
are monumental… a powerful front
Australia in a fundraising aim of 20k to assist scaling
up assistance both inside Ukraine and in neighbouring line in the worldwide battle to…
countries. This emergency fund helped secure urgent
needs like shelter, food, health, water, sanitationbuild a better world.”
support and cash assistance.

Anita Roddick, Our Founder

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THE BODY SHOP | Sustainability Report 2022

ENVIRONMENTAL JUSTICE
One of our core principles at The Body Shop is
continually improving the environmental impact ofour business sites and practices, the resources we
use and our supply chains. As a certified B Corp, B
LabTM also holds us to account in this area.
In 2022, we particularly focused on developing both a carbon reduction
plan to help us progress towards net zero carbon emissions, and abusiness-wide Environmental Management System to improve oureffectiveness in this area.

THE BODY SHOP | Sustainability Report 2022

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Environmental Justice:
Reducing our impact on the environment
Working Towards Net Zero
To help tackle the climate emergency and limit global warming to 1.5 degrees Celsius
above pre-industrial levels, all Natura &Co brands have committed to becoming net
zero. This means reducing all direct and indirect greenhouse gas emissions associatedwith our business and franchises by at least 90% compared with 2020. Our 2022 carbon
footprint is reported by Natura &Co here on page 27.
Carbon reduction planning is a complex process that requires business-wide
approaches to understand and assess the best way forward, such as in strategicallyrationalising our product portfolio. Ambitious plans like this take time to bear fruit. Until
our carbon reduction plan is implemented, we expect our carbon emissions to fluctuate
in line with our business growth or decline. After that, we will start to see progress
towards our short-term carbon reduction targets.
An important part of committing to becoming net zero is following targets that comply
with the rules of the Science Based Targets Initiative (SBTi), which has validated ourcollective Natura &Co target.
In the short term, this process commits us to:• 80% of our purchased electricity being renewable by 2025
• Reducing our emissions from heating and cooling our stores, using company vehicles
and back-up energy sources, and purchasing electricity to zero by 2030 – our emissions
from these sources decreased from 5,338 tonnes of CO2 equivalent (tCO2e) in 2021 to
3,713 tonnes tCO2e in 2022 (both market-based3).
• Reducing the carbon associated with our products (including ingredients, packaging,
upstream transportation, and post-consumer disposal of sold products) by 42% by 2030
We can’t achieve these targets alone as they will require fundamental changes in theway we and others do business. We’re engaging stakeholders across our business andsupply chain to support this.

Our Carbon Reduction Plan
In 2021, we calculated our carbon footprint for 2020. This gave us detailed insights into themost carbon intensive parts of our business – manufacturing our products, transportingthem to our customers, and post-consumer disposal of our sold products.
In 2022, we started a further detailed analysis to complete whole carbon lifecycle analyses
for five products that are most representative of our core product portfolio to assess theimpact of potential changes. We also commissioned a carbon module to gather supplierenvironmental data, starting in 2023. This initiative enables us to assess their environmental
impact, including carbon emissions and renewable energy usage, facilitating informed
reduction planning.
We held cross-functional workshops across our Sustainability, Procurement, Brand, R&D,
Freight and Finance teams to inform a detailed carbon reduction plan that we will completein 2023.

3 A market-based method uses an emission factor that is specific to the electricity that a company haspurchased, based on the Greenhouse Gas Protocol.

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THE BODY SHOP | Sustainability Report 2022

Environmental Justice:
Our Company Sites
In 2022 The Body Shop developed a global, centrally
coordinated Environmental Management System
in line with International Standard ISO14001. This
includes global improvement targets and provides
best practice procedures and guidance on resource
efficiency.
This system covers our global Operations and Real
Estate functions, including our stores, distribution
centres and offices. Each of our markets must comply
with our central Environmental Policy, which commits
us to legal compliance and continuous environmental
improvement, and also develop their own local plan
to contribute to our overall targets.
Every store must enter environmental performancedata into our database to track our resource use,
waste production and performance improvements.
In 2022, 100% of our stores have reported their gas
usage, and we have completed a waste and water
sample audit along with a landlord survey to better
understand where we use water and what typeof waste we dispose of regularly. Based on thisknowledge, our current focus areas for stores areelectricity use, waste disposal, the impacts of our
products and procurement, and our potential toinfluence customer behaviour.
In 2023 we will ensure that all our markets implement
plans to achieve their targets and will further
improve our data quality and coverage. Aside fromthat strategic shift, we continued to improve theenvironmental impact of the everyday operations
and business practices in our stores, offices anddistribution centres.
At The Body Shop facility in Littlehampton, UK, which
already generates electricity via solar panels anduses energy-efficient lighting, we installed additional
electric vehicle points and made the car park
lighting energy efficient. After six months’ service, allpermanent employees in active employment at The
Body Shop can apply to lease an electric or ultra-low
emission vehicle through our new green car benefit
scheme, unless doing so alongside other salarysacrifice benefits would cause their income to dip
below local living wage rates.

Our biggest global presence is through our stores inaround 80 countries. In 2022 we continued to expand
our in-store refill stations, where our customers
can fill recyclable aluminium bottles with haircare
products, shower gels or hand washes (the reusable
pump is harder to recycle). The Body Shop was apioneer in this area when we launched our first refill
stations back in 1976, and today we’re pioneering thisapproach again.
These refill stations engage consumers in the circular
economy. Repeated use of these refillable bottles
helps us to reduce waste production, while offering
customers an affordable option. As a result, ourrefillable product lines enjoy higher repeat purchaserates than those in plastic bottles (27% versus 22%,
respectively).
In 2022, this scheme prevented approximately 13.5
tonnes of plastic (578,966 bottles) from becoming
waste, almost four times as much as in 2021. By theend of 2022 we had refill stations in 793 stores in 53
countries. This fell slightly short of our target of 800
because of delays caused by adjustments to capital
investment priorities. In 2023, we aim to make up
this lost ground and reach 850 refill stations globally,making our initiative the biggest in-store refill
programme in our sector.
Our Changemakers’ Workshop stores use moresustainable materials where possible, such as lessvirgin plastic, certified wood and paper, and fixings
that can be broken down at the end of their life.
To avoid unnecessary waste, we phase in these
designs when we open new stores or refit thosethat need a refresh. The Body Shop integrates socialand environmental considerations into the design ofthese stores and in 2022 won a POPAI Award for mostsustainable permanent display store design.
In 2022 we opened 139 Changemakers’ Workshop
stores (2021: 104) and have so far saved an estimated
6.4 tonnes of virgin acrylic plastic (to end 2022) byusing reusable certified wooden product holders
on the make-up stands. We opened fewer of thesestores than planned due to variable trading conditions
at the end of the global pandemic. By the end of theyear, 296 (12%) of our owned and franchised stores
were Changemakers’ Workshop stores. By the end of2023, 100% of our UK stores will use certified wooden
product holders and at least 80% of stores in ourother company markets.
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Environmental Justice: Our products
Our aim is always to make the highest quality products while creating positive change forour planet and communities around the world. Our Charter for Change is a formulation
charter and consumer facing publication for all new and rejuvenated products to keep us
committed to this goal through product performance, safety and ethics.
We use ingredients of natural origin wherever we can, sourced in ethical and sustainable
ways. We’re committed to never testing on animals, reducing waste through our refill
stations, and progressing towards a 100% vegan product portfolio by 2023.
In addition, we have signed up to environmental commitments as a member of various
industry and commodity-based good practice sourcing partnerships. For example, 57.5%
of our palm oil is physically certified as Roundtable on Sustainable Palm Oil (RSPO) Mass
Balance (56%) and RSPO Segregated (1.5%). The remaining volumes are covered with RSPO
smallholder credits and regular credits, meaning our palm oil is 100% sustainably sourced.
Reviewing and rationalising our product portfolio is a priority focus in our draft carbon
reduction plan that will be finalised in 2023. In 2022, we worked with environmental
consultancy Bemari on whole carbon lifecycle analyses for five products that are mostrepresentative of our core product portfolio, from ingredient sourcing through to postuse disposal by our customers. We used this knowledge to assess the impact of potentialchanges such as producing product formulations with lower water content to reducepackaging quantities and transport emissions, and using less carbon-intensive ingredients.

Certification or
traceability of ourpurchased materials
As part of Natura &Co’s Commitment
to Life, we recognise that somematerials we use have significant
social or environmental concerns.
By 2025, The Body Shop aims
to have full traceability and/or
certification against external, goodpractice standards of six ‘criticalmaterials’ that can be associatedwith environmental and/or humanrights risks (see table), using specificsupply chain policies4.

Criticalmaterial

Certification
standard

2021
certification
level

2022
certification
level

Palm oilRoundtable on
Sustainable Palm Oil(RSPO) Mass Balance(MB) and Segregated(SG)

19.1% (18%
MB 1.1% SG)

57.5% (56%
MB 1.5% SG)

Paper

FSC certified

67.8%

74%

Ethanol

Bonsucro, RedCert,
SAI and/or Organic

2.8%

15%

Soy

Organic0%(incomplete
data)

72%

CottonOrganic, including
Global Organic
Textile Standard

59.9%

20%
(against
a higherstandard
than in
2021)

Mica

Traceability level(there is no global
mica certification
standard)

95.2%

99%

4 The supply chain policies for the six critical materials can be accessed here

16

THE BODY SHOP | Sustainability Report 2022

Environmental Justice:
Our product packaging
To help us progress towards net zero and reduce ourwaste production, The Body Shop has committed to100% of all our packaging materials being reusable,
recyclable or compostable by 2030, and 50% of allplastic we use (by weight) to be recycled by that date.
In 2022 we surpassed our recycled plastic target
and 90% of our packaging was recyclable (see table)
and we continue to adapt our product packaging to
improve its environmental credentials. While ensuringthat our packaging remains safe, effective andaesthetically pleasing, we:• Removed all unnecessary packaging such as
skincare cartons, some transit plastic protections
and additional gift packaging layers to reduce ourresource, water and energy use• Reused packaging materials by increasing thenumber of in-store refill stations (see page 15)
and firmed up plans to phase out materials thatare hard to recycle• Replaced some plastics with infinitely recyclable
glass or aluminium5, and achieved recycled glassand recycled aluminium increasing post-consumer
recycled (PCR) materials. We also substituted
flexible plastics used for soap packaging with paper

this scheme with partners who can guarantee that
this packaging is responsibly repurposed. When
we identify similarly responsible partners in othercountries and for other materials, we may extend thisinitiative. In 2022 we used 8,342 tonnes of packaging.
Through our Return Recycle Repeat scheme, wecollected 16.1 tonnes of packaging.
This includes:• 2.78 tonnes of plastic, aluminium and glass
packaging from The Body Shop and other productsin Hong Kong, in partnership with Chun Shing• 11.51 tonnes of hard-to-recycle beauty packaging
such as mascara containers and pipettes in the UK,in partnership with Metrisk• 1.80 tonnes of The Body Shop plastic and aluminium
packaging in Singapore, in partnership with
Sembcorp
During the year we continued to strengthen our
Community Fair Trade partnership with Plastics for
Change in India to help tackle the plastic pollution
crisis and reduce waste plastic. Through thispartnership 2,000 previously informal waste collectors
are paid a fair price for the plastic waste they collect,whilst also enjoying better working conditions andgreater social status. In 2022 we purchased 700
tonnes of plastic waste through this initiative toincorporate in our recycled plastic packaging (2021:
528 tonnes).

In the UK, Singapore and Hong Kong, our Return
Recycle Repeat scheme enables our customers toreturn packaging to us for repurposing. We operate

In 2022 we also made our packaging labelling moretransparent to help our customers recycle it correctly.

Packaging indicator

2021

2022

PCR in plastic packaging

47%

52%

Recyclable packaging

78%

90%

tonnes of plastic packaging used
3,620
(including tertiary/transport packaging)

2,239(52% PCR)

tonnes of wood/paper fibre used in
our packaging

1,441

3,011
(0% PCR)

tonnes of metal packaging used

389

277
(24% PCR)

tonnes of glass packaging used

2,214

2,700
(34% PCR)% of packaging made from plastic

47%

27%

% of packaging made from glass

29%

32%

% of packaging made from wood/fibre

19%

36%

% of packaging made from metal

5%3%% of packaging made from othermaterials (often mixed materials, eg
laminated tubes, foil, rubber, textiles
and some compound specialist
plastics)

Not recorded

1%

Total amount of packaging used

7,664 tonnes,
8,342 tonnes,
excluding other including otherpackagingpackaging

5 Where local facilities allow.

THE BODY SHOP | Sustainability Report 202217

NEXT STEPS
Next Steps: B Corp
To recertify as a B Corp in 2023 we will deliver the
final actions in our B Corp improvement plans andwill complete the Disclosure Questionnaire.
We will submit four B Impact Assessments and aim
to achieve around 90 points – 8 more than in 2019
– reflecting both our huge level of ambition andconsiderable external commercial challenges.

Next Steps: Social justice• After the success of the Youth Collective’s first year,
we plan to continue this program in 2023. This is anever-evolving process, and we are learning as we go.
Our initiative tracker ensures full transparency on
the recommendations that the Youth Collective have
put forward so far and means we can keep them up
to date with the progress of their recommendations
as they are implemented within the business.
• In 2023 our Be Seen Be Heard campaign enters
into its second year. This year we move from our
first-year goal (educating our audiences on theimportance of increasing youth representation in all
forms of public life) as we launch petitions in eachof the 75+ countries around the world where thecampaign is live. These petitions include:- The Body Shop South Korea is running apetition, alongside their partners at the Korean
Environmental Youth Organisation, to makeenvironmental subjects mandatory in middle andhigh schools in Korea. They believe that young
people deserve to be educated on environmental
issues. Their petition has already received overhalf of their petition target of 50,000 signatures.
- The Body Shop India has launched a petition
alongside the Young India Foundation to lower theage of candidacy in the Lok Sabha (lower house)from 25 to 21 years of age. They are aiming for18

THE BODY SHOP | Sustainability Report 2022

greater youth representation in politics and amore equal future for India. They have a target of
2.5 million petition signatures and have received
84,000 so far.
- The Body Shop New Zealand is running a petition
with their partners at Make It 16 to lower New
Zealand’s voting age to 16. They have alreadysurpassed their petition target of 5000 signatures,and currently have over 7400.
• In 2023, we will expand Open Hiring to become thebusiness-as-usual hiring model for entry level store
consultant roles in the UK all year round, as well
as for select entry level consultant roles all year
round in the US and Canada. Additionally, we willcontinue to use Open Hiring as our primary hiringmodel during the seasonal period in our UK, US,
Canada, and Australia retail stores, as well as our
US distribution centre. As a result, we anticipate
that we will hire over 1700 people over the courseof 2023 (2022: 1530). We are continuing to explore
new and exciting partnerships as we progress the
program, including recently engaged partners like
United Way (US/Canada), Amnesty International(Australia), and TENT (UK). Finally, several of our
European markets are engaged in partnerships
with charities and non-governmental organizations
to support hiring people from disadvantaged andmarginalized communities. While they are notyet fully Open Hiring, their steps towards hiring
more inclusively through focusing on marginalized
communities is a direct extension of the Open
Hiring program.
• In 2023, as part of our three Sustainable
Procurement Objectives for the year we will develop
a human rights roadmap to advance a clear andmeasurable process to embed human rights due
diligence, promoting positive impact and access toremedy.

Next Steps: The Body Shop
Strategy
In 2022 we started refining our strategies for the next
eight years based on an in-depth Natura &Co global
materiality assessment conducted by GlobeScan,
along with science-based best practice.
In 2023 we will build a sustainability strategy thatwill complement Natura &Co’s Commitment to Life
Sustainability Vision. When devising this strategy
and its targets, we will ensure our strategy remains
holistic and satisfies all stakeholder needs.

Next Steps: Environmental justiceIn 2023 we will:• Devise a detailed plan to deliver a 42% reductionin our carbon footprint by 2030 compared to 2020,
to make significant progress towards achieving net
zero status.
• Set targets for all company-owned markets to
reduce our electricity and water use, and waste
to landfill, and ensure our utilities all come fromrenewable sources.
• Implement our new sustainability governancestructure to monitor our progress and help us
achieve our Commitment to Life targets.
• Implement the Environmental Management Systemthat we have developed in 2022.
• Aim to reach the milestone of preventing over 1
million plastic bottles from entering the waste
stream through our expanded in-store refill
programme, while exploring other ways to increase
our product refill offer.

THE BODY SHOP | Sustainability Report 2022

19