WELLA COMPANY
ESG MANIFESTO

November 2022

A MESSAGE FROM

Annie Young-Scrivner
Chief Executive Officer, Wella Company
As a conscientious, purpose-driven company,
we are committed to affecting positivechange through our business actions. Since
we became a stand-alone company inDecember 2020, we embarked on oursustainability and social impact journey toembed ESG into our ethos. In our first twoyears, we have followed science-based
methods and practices, benchmarked
and measured our baselines and developed
actionable plans and targets.
This ESG Manifesto is the first formal
publication of our commitment to sustainability
and environmental, social and governance(ESG). We have validated our ESG goalsaligned with our stakeholders’ expectations ofus as a global beauty leader. As a participantof the United Nations Global Compact, weproudly support science-based, quantified
commitments and goals prioritized as ourPeople, Planet and Product pillars. Thesegoals include: Reducing our carbon impact on
the environment; reducing water usage inour operations; innovating our products
for both clean and green formulation; reducing
waste in our packaging and materials; andimportantly, embedding diversity, equity andinclusion (DEI) at the core of our business, ourculture, and in the communities where weoperate.

Every day, we support a legion ofprofessional hair and nail salon artists andowners, connect with more than 91 million
customers and consumer beauty lovers,social influencers, ambassadors andemployees, across the globe. These people
are our ​Wella Family and together we impact ​positive change.
We believe that when we better the local
communities where we operate, we help
create a healthier and more equitable society.
When our local professional communities andthe people we serve thrive, we thrive.
While still a young, ambitious organization,
our commitment to People, Planet andProducts is a building block of our strategic
growth agenda. We lean into the complexity ofthese issues, approaching them with ​the same rigor that we put into creating
our products.
Pairing our portfolio of iconic brands with thepassion and expertise of our people, webelieve we have the foundation for something
special and impactful for our world.​Regards,
Annie Young-Scrivner

2Our Environmental,
Social and Governance(ESG) Strategy
Since the inception of Wella Company in December
2020, we created a sustainability function andbegan our environmental and social journey.
We conducted a comprehensive materiality assessment, involving
significant internal and external stakeholders. This process helped us toidentify and understand the most important environmental and social issues
for our business and our clients, customers and broader society. Thisrigorous work led directly to the creation of our environmental, social andgovernance (ESG) strategy, which we are now operationalizing across ourbusiness. Our stakeholder engagement, however continues: We continuallyseek and welcome feedback on how we can improve.
Our ESG framework is made up of three pillars: People, Planet, Products.
We will track and report our progress against these three pillars every year toensure we continue to deliver tangible and measurable impact.

PeopleOur People pillar comprises doing
business in an ethical, fair andinclusive way for our employees andour partners across our value chain.

Planet
The Planet pillar focuses on ourenvironmental impact, particularly
our own carbon footprint. Thisincludes supporting our communityof salons and consumers to reduce
their environmental impact.

Products
The Product pillar drives us toimprove our product offerings,
from formulation to packaging toinclusive marketing.

01PEOPLE

People :Our Employees
We are on a journey to create a company that isdiverse, equitable and inclusive; where everyone
can be their true selves.
We do this by embracing diversity, equity and inclusion principles among thenearly 6,500 employees across the 30 countries in which we operate. We
want everyone in our Wella Company family to feel represented andempowered.
By creating a high-performing organization where everyone can bring theirbest selves to work, we will collectively thrive. We are committed to attracting
and retaining a diverse workforce, which includes, but is not limited todiversity in terms of gender, race, culture and nationality.

OUR AMBITION
Achieve 50% female Directors & above
Further close the pay gap between men & women

We are also cultivating an inclusive culture where people feel authenticallyheard, valued and appreciated, and the business can leverage the full valueof their talents.

ACHIEVE

ACHIEVE

80%

70%

EMPLOYEES FEEL
EVERYONE CAN
ACHIEVE FULLPOTENTIALEMPLOYEEENGAGEMENT SCORE

Increase representation of racially and ethnicallydiverse leaders in US and Brazil to more closely
resemble our consumer demographic profile*

TRAIN

ACHIEVE

80%
31%

FEELING AS THOUGH
THEY BELONG AT WELLA

100%
ON
UNCONSCIOUS BIAS

*efforts are made across countries where Wella Company operates
but tracked only where local laws and regulations allow

5People : OurBusiness Partners
Our Code of Conduct reiterates the high standards
we set for ourselves and our business partners.

It works in tandem with Wella Company values and reinforces explicitly
our commitments to ESG. The Code and our values represent how we seek
to act and meet our challenges.
We take our Supply Chain transparency seriously and are taking action toensure that the high ethical standards we seek to follow in our own business
are reflected across our supply chain.
Wella Company is now a proud participant of the United Nations Global
Compact (UNGC), the world’s largest initiative for sustainability in business.
We have committed to the UNGC principles in the areas of human and social
rights, labor, the environment and anti-corruption, which are intertwined withour company values.
Our intention: To become a socially conscious, purpose-driven company.

Our Code of Conduct
Presents a moral behavioral framework to uphold our core company
values, our commitment to ESG, and to provide daily guidance.
As we move forward, the Code will help ensure that our values
continue to be reflected in every market and business activity.
A commitment to integrity, acting honestly and ethically, andcomplying within the law are critical to our continued success.

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PLANETPlanet :Climate

Scope 1

Scope 2

1.5

Scope 3

1.5

Climate change is one of the biggest threats facing
our world today. We commit to reducing ourenvironmental impact to help protect natures’ livingorganisms as well as people across our valuechain.
Environmental challenges, particularly climate change remains a global
crisis. Acting on climate change requires the drive and energy to find newsolutions and make meaningful adjustments. We have taken the first steps
by comprehensively mapping our carbon footprint and committing to reducing
our environmental impact with year-over-year reductions through 2030.
Our comprehensive carbon footprint shows that our impact is typical for aconsumer goods company of our size. Most of our carbon emissions comefrom buying raw materials, packaging, other goods and services from oursuppliers, and from the use of our products by our customers andconsumers.

BREAKDOWN OFSCOPE 3EMISSIONS50%USE OFPRODUCTS SOLD

97,0%

Wella Company emitted 736,414t CO2eq in 2019
11,406t CO2eq (1.5%) in Scope 1
10,863t CO2eq (1.5%) in Scope 2
714,145t CO2eq (97%) in Scope 3

31%
PURCHASED GOODS& SERVICES

11%
TRANSPORTATION

8Planet :Our Commitments
CARBON AND ENERGY
We have set science-based targets for limiting ourcarbon emissions and have designed clear
roadmaps for meeting those goals.

46%

35%

100%

Reduction of our carbon
emissions in Scope 1 and 2,
while maintaining our Scope 3
emissions at the level of our2019 baseline.

Reduction in energy used inowned facilities per unitproduced by 2030, reaching
25% by 2025.

Renewable energy by 2025 in
all our owned facilities, wherepossible. Where not possible,
we will explore renewableenergy technologies.

9Planet :Our Commitments
WATER
We have set targets for using less water to make ourproducts in our factories and are focusing on
innovations and education to minimize the water oursalon customers consume when using our products.

35%

100%

Reduction in water consumption
per unit produced in our owned
facilities by 2030, reaching 20%by 2025

All our factories to undergo aWater Risk Assessment of thewater basins in which weoperate, and to seek toimplement innovative circularwater solutions

10Planet :Our Commitments
WASTE
We aim to significantly reduce the amount of waste
created by every product we produce in our owned
manufacturing facilities, a commitment that sits alongside
our target to achieve zero waste to landfill from all ourowned sites where possible by 2025.

35%

0%

Reduction in waste wecreate per unit produced in
our own facilities by 2030,
reaching 25% by 2025

Achieve 0% waste to landfill
at all our owned sites where
possible by 202511

Planet :Our Salons
We commit to supporting Wella Company
professional salons and stylists to help make theirbusinesses more sustainable.
PRODUCT FORMULASWASTE MANAGEMENTSAVE ENERGYLESS & BETTER PACKAGINGSUSTAINABILITYEDUCATION TRAINING

SAVE WATER

As a first step, we are helping them reduce their environmental footprint while giving
their businesses a competitive edge through free-to-access sustainability education.

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PRODUCTS

ProductsWella Company has a long heritage of creatingtrusted, high-performance hair and nail products,working closely with our consumers and beauty
professionals to bring to life products they love andinspire their creativity.
We build Wella Company equity, competitive advantage, and credibility withour clients and stakeholders through world-class product quality and safety
standards that meet or exceed the regulatory requirements in the markets
where we operate. We are guided by the ambition to minimize theenvironmental impact of our products.
We carefully select materials, ingredients and design the application of ournew products with our planet in mind. We use consumer insights andscientific expertise to develop high-performing products. We are mindful ofthe limited natural materials, water resources, and seek socially responsible
sourcing.
Sustainability is integrated into our innovation and product development
processes. Our success criteria are linked to the environmental impact
through Green Chemistry principles and our qualitative product assessment
tool “OneScore” .

Products : Packaging
Packaging is an essential part of every beauty
product. We aim to develop top quality, best inclass packaging to elevate, inspire and delight bothend consumers and professionals alike witha fierce commitment to ensuring our product issustainable for both people and planet.
Sustainable packaging protects our formula and devices efficiently, keeping
products safe during their journey from factory to destination. Packaging
is a priority area where we are committed to making significant progress.
We drive design for circularity and recyclability. We strive to minimize
packaging where possible, using materials with lower carbon footprint.
We have set targets to reduce the amount of virgin packaging materials
we use aiming to use recycled materials where available.
And we are rethinking traditional packaging concepts, looking for sustainable
solutions that will drastically reduce our long-term need for packaging.
Wherever possible, we are taking immediate action. We are building out ourinnovation pipeline to ensure that sustainable, ambitious plans for positivechange are incorporated fully into our future.

Our color tubes are now made from 100 percent recycled
aluminum, where available. This enabled us to save 700 tons ofvirgin aluminum. It reduces Greenhouse Gases (GHG)
emissions by 76% and consumes 66% less energy (vs virginmaterial).
We were recognized with a Worldstar Packaging Award in 2022

OUR PACKAGINGCOMMITMENTS

50%

100%

100%

Reduction in use of virgin material inpackaging by 2030, reaching 30% by2025

Aim for packaging to be recyclable,
reusable, or refillable by 2030,
reaching 80% by 2025

All new packaging innovation platforms
to follow sustainable design principles ofthe circular economy

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Products : Formulation
Our Clean & Green Product Framework enables integrationof sustainability principles into our business strategy. It is ourlighthouse towards consumer-centric, environmentallyresponsible, competitive and science-based innovation.
Wella Company is an active member of the EcoBeautyScore Consortium,a cross-industry initiative set to create a universal standard on beauty
products’ environmental impact.

OUR CLEAN & GREEN COMMITMENTS
Our Clean Pillar responds to consumer interest in ourproducts beyond regulatory compliance.

ANIMAL WELFARE
We do not test our products on animals. We arean active member of ICCS (Int. Collaboration onCosmetics Safety) committed to end animal
testing across the beauty industry.

Wella Company relentlessly moves towards
offering products that are completely free ofanimal derived ingredients.

We commit to delight consumers andprofessionals with high performing
products that respect the environmentand care for their needs and concerns

INGREDIENT TRANSPARENCY
Our Wella Ingredient Glossary is available toeveryone. We keep it in line with the latest
scientific insights.

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Products : Formulation
Through our Clean & Green Product Framework, we aim
to continue to innovate, creating our products withresponsible sourcing of ingredients and material that leave
less impact on our planet, while retaining the high-quality
standards of all Wella Company products.
OUR CLEAN & GREEN COMMITMENTS
Our Green Pillar drives action on environmental issues we can impact through our formulas:

WATER STEWARDSHIPWe think about water as a scarce resource. We develop approaches tominimize water use through innovative products, technologies, andeducation.
We aim to steadily increase the percentage of biodegradable ingredients inour formulas. We cooperate with our suppliers to integrate the latest
advancements in science and technologies.
RESPONSIBLE SOURCING
We partner with suppliers to replace materials with lower carbon footprint
alternatives.
Wella Company is a Member of RSPO - Roundtable on Sustainable Palm Oil

100%Achieve 100% certified palm oilby 2025.

Wella Elements Hair Care line-up designed with up to 99% natural-origin
ingredients1 and 84-98% biodegradable raw materials2
1. 91% to 99% depending on products.
2. 2. based on mass of ingredients that are relevant for biodegradation and when
disposed in a sewer connect to a wastewater treatment plant. Except Renewing
Leave-in Spray as no direct emission to wastewater occurs.
17Next Steps
This ESG Manifesto marks the formal published anddocumented beginning of our Environmental, Socialand Governance journey. We are committed todriving positive change across our business andthroughout the communities we serve. We support
and are bringing the professional salon industry, ourglobal beauty sector, committed citizens globallyand our entire Wella Family with us on this journey.
Over the coming months we will be collecting comprehensive environmental
and social data from across our business to allow for highly transparent
measurement and ESG reporting, annually.
In 2023, we will publish our first full ESG Report, delivering progress updates
on each Pillar of our environmental and social commitments and goals.
We invite you to join us in our collective ambition to become a conscientious,
purpose-driven company. We also ask that you maintain vigilant of Wella
Company and all organizations who aim to be better by doing better. Hold us
to account for our commitments.
If you have feedback, or are interested in partnering with Wella Company
on our sustainability journey, please contact us.

Hilary Crnkovich
Chief Communications & Sustainability Officer
hilary.crnkovich@wella.com

Arielle Semin
Global Head of ESG
arielle.semin@wella.com

WE are Wella Company
We are Wella Company, an innovative global leader in the beauty
industry that combines 140+ years of earned wisdom and industry
experience with the enthusiastic growth momentum of a newly
minted independent entity. Now marking two years as a standalone company, we are one of the fastest growing companies inthe beauty sector.
We have a portfolio of iconic professional andretail hair, nail, and cutting-edge beauty techbrands. We are dedicated to and proud toserve the legions of artists and owners acrossthe professional hair and nail community inthe more than 100 countries where weoperate.
Each day we impact a diverse community ofmore than 91 million beauty lovers andindustry professionals, social influencers,
ambassadors, followers, employees, andcustomers across the globe. This is our Wella
Family.
Our vision is to enable people to look, feel,and be their true selves. This propels us
forward, powering everything we do while also
guiding our environmental and socialprogress.

We believe in the power of businesses to bea catalyst for change, enabling people,
organizations, and societies to collectively
prosper. We aim to unleash the potential of
our people, partners, and organization
globally with sustainability and environmental,social, and governance (ESG) at our core.
Embedded into our ethos is Diversity, Equity
and Inclusion at the heart of who we are, how
we operate and in how we support theindustry and communities we serve.

ESG and commercial growth are inherently
connected to how we operate and measure
our value. We are building the best beauty
company in the industry, ensuring that when
the industry thrives, we thrive. And as wemake progress on our agenda to care for ourplanet, and leave a positive impact on society,we will become a champion for change whose
legacy will be worthy of our iconic history.

© 2022, Wella Operations US LLC

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