2021-2022丝芙兰中国可持续发展报告（英）-31页.pdf

2021-2022 Sephora China Sustainability Report Sephora China’s Sustainability Management Statement The 2023 Global Risks Report by the World Economic Forum shows that failure of climate-change mitigation and adaptation, natural disasters and extreme weather events, biodiversity loss and ecosystem collapse are the key challenges worldwide to global sustainable development over the next decade. Actively seeking innovative solutions tackling these risks will bring new momentum to sustainable and healthy global economic development. Sustainable development that well balances the environmental, societal, and economic benefits has been a consensus and a strategic approach of more and more enterprises. LVMH Group has unveiled its new sustainable development strategy, the “LIFE 360” Program, and charted an ambitious environmental performance roadmap for 2023, 2026, and 2030 in such new context. As a member of the LVMH group, Sephora China has been committed to responding to China s policy call for high-quality and green development, actively undertaking the corporate citizenship responsibilities, and continuously shaping a green beauty retail and consumption ecosystem, while tackling all the targets set in “LIFE 360” Program. The year 2022 marked the 17 th year of Sephora’s entry into the Chinese market, we have built a country specific sustainable development strategy, aiming to motivate our business partners and Chinese consumers to unleash the social value of “Beauty Power” by leveraging our brand influence. Apart from accelerating the transformation of our own sustainable development, we are striving to create a sustainable ecosystem that helps explore more growth opportunities for the beauty industry. In addition to product sales, we engage our suppliers to exert the “beauty power,” and continuously interact with our consumers to jointly facilitate the fulfillment of carbon peaking and neutrality goals, promote the development of a circular economy and contribute to various social welfare initiatives. To ensure the efficient implementation of our sustainability strategy, we have set up a sustainable development steering committee that consists of the Sephora senior executives. We consider sustainable development issues in all major decision-making and routine management. Along with the smooth implementation of all targets, we make sustainable development as an essential value and a voluntary behavior across the company. Sephora China is speeding up omnichannel transformation and innovation by promoting sustainable product development, store operation, and supply chain management. We stick to developing with compliance and make efforts to provide our employees with quality career development while guaranteeing their physical and psychological health. In terms of eco-friendly stores and offices construction, the office of Sephora headquarters and the Sanlitun flagship store in Beijing have both obtained LEED certificates. As of 2022, all 326 stores across Mainland China have switched to LED energy-saving lamps. Moreover, we are committed to developing sustainable products and packaging. Specifically, our Sephora Collection series has adopted over 90% natural plant extracts. We also encourage the usage of FSC-certified paper bags and gift boxes. To boost green logistics, we actively develop a green and agile supply chain as our core business strategy and continue to promote low-carbon logistics and warehousing. As a leader in sustainable development in the beauty industry, Sephora China keeps unlocking shared value and creating long-term value while striving for a partnership ecosystem with “Beauty Power.” We collaborate with our suppliers to devise sustainability strategies and plans and encourage them to perform social responsibility and improve environmental performance. As of 2022, 80% of strategic indirect procurement suppliers of Sephora China have already received EcoVadis certificates. We support China’s economic development by providing our local suppliers with opportunities to earn more while creating more job opportunities. Currently, 80% of indirect materials for our stores are purchased from local suppliers. We are committed to delivering our consumers the most unique retail experience, encouraging them to explore and create their own “Beauty Power” freely and boldly. As the high-end beauty retailer in China with full official authorization from brand owners, we continue to improve consumer protection mechanism and provide them with quality products and a satisfied shopping experience. We highly value consumer opinions, and to this end, we make continuous efforts to improve their experience and satisfaction by deploying digital and intelligence technologies. Furthermore, we take the key strategic move of “establishing a green consumption ecology” to present more transparent, sustainable product information and enable each consumer to share beauty with planet through makeup consumption. Moreover, we encourage our consumers to participate in charity programs, such as “Smile Action,” aiming to convey society’s positive “Beauty Power.” Upholding the values of diversity and inclusion, we continuously provide different groups with a series of sustainable makeup experiences to help them tap new confidence and allow everyone to have an opportunity to release “ExtraOrdinary Beauty Power.” Embracing a new era featuring sustainability, Sephora China releases a sustainability report for the first time and launches the sustainable development goals in China, which defines its strategic roadmap and timelines for sustainable development in China. In future, Sephora China will continue to lead the sustainable development in the beauty industry, leveraging its omnichannel value chain impact and working with its consumers and business partners to build a more diverse and greener future. Overview 0201 Sephora China’s sustainable development goals Creative Circularity The circular economy is a major strategy and trend of economic and social development domestically and internationally. Sephora draws on its creativity to promote the circularity of its products and packaging, encourage eco- design, and construct a resource recycling system. Climate change is a critical challenge that requires to address on a global scale. We must work together to limit global temperature rise to well below 2℃ by the end of this century. Sephora generates greenhouse gas emissions through raw material procurement, packaging, and transportation of goods – both upstream and downstream. On the other hand, climate change is expected to impose immeasurable impact on Sephora. As LVMH Group pursues a carbon reduction trajectory in line with the Paris Agreement, Sephora is also addressing climate change with its own strength and impact. Sephora leverages the brand s influence and core competencies to develop multifaceted philanthropic initiatives to improve the well-being of people in response to the urgent social needs. We continue to make a positive impact on the communities in which we operate and engage in building a better society. We view ingredient sourcing and product lifecycle tracking as our key responsibility. To this end, LVMH Group plans to introduce a procurement certification policy and play an active part across the entire supply chain. Sephora will ensure the sustainability of the supply chain through a transparent traceability system. Climate Social Welfare Transparency As a global prestige beauty retailer of LVMH Group, Sephora always takes social responsibility and environment sustainability as a top priority in its corporate development strategy and keeps encouraging green makeup consumption. By continuously opening up an unlimited and diverse makeup environment, Sephora encourages consumers to cultivate the beauty power and upgrade the beauty to a new level and release their own privileged beauty power. In 2021, Sephora China incorporated “Beauty Power” in its sustainable development strategy aiming to propel a value-driven growth that benefits both our business, as well as society and ecology. Building on four key issues defined in LIFE 360 (LVMH Initiatives for the Environment) Program, the global sustainable development strategy of LVMH Group, and Sephora China’s sustainability governance system, we adhere to our sustainability roadmap by making joint efforts with our consumers, supply chain partners and employees. We are committed to leading the high-end beauty retail industry and continuously shaping a green consumption ecosystem by “Defining Sustainable Beauty from Sephora,” “Unleashing Sustainable Beauty with Partners,” and “Uniting Sustainable Beauty with Consumers.” We envision a sustainable and better future with collective efforts. Sustainability strategy Sephora s commitment to sustainable beauty Establish Sephora as a sustainable brand Drive Sephora s shared and long-term value Expand Sephora s leadership and impact on sustainability Climate Creative Circularity Transparency Social Welfare Key Fields Defining Sustainable Beauty from Sephora Responsible Governance Sustainable Supply Chain Beyond Consumers Expectation Sustainable Operation Brand Partners Engagement Green Consumption Promotion Innovative Eco-Products Healthier Industry Promotion Consumer Engagement in Social Welfare Unleashing Beauty Power with Partners Embracing Sustainable Beauty with Consumers Strategic Foundation Material Issues Purpose and the highly integrated office automation system BPM2.0 is planned to go live in 2023, with all accounting files becoming electronic . Intelligent financial compliance Digital and efficient governance Sephora attaches great importance on reforming governance and using digital means to improve governance efficiency. We take anti-corruption compliance actions across LVMH Group and Sephora, protect consumer privacy, value intellectual property protection, make human resources management more people-centered, and prioritize employee health and safety, aiming to build Sephora into a stable and efficient business that consistently creates social value. Our Legal and Governmental Affairs Department has introduced a specific anti-corruption compliance control policy and is responsible for training employees on anti-corruption. While abiding by national laws and regulations, we have been combining intelligent and electronic management with legal review and compliance audit and applied intelligent technologies in multiple businesses. Comprehensive anti-corruption compliance The Sephora China Anti-corruption Handbook has detailed the rules on employees’ whistleblowing, entertainment, gifting, etc. Through the Code of Business Conduct, Sephora seeks to share with its partners a set of common rules, practices and principles with respect to ethics, social responsibility and environment protection. Anti-corruption training is essential for both our headquarters and store employees. In 2021, approximately 94% of employees in Sephora China have completed the online anti-corruption training. We are also exploring the intelligent use of AI in legal review and compliance audit and promote the sharing of legal and compliance knowledge and resources inside Sephora. Anti-corruption compliance policy Intelligent technology application Anti-corruption Training In 2021, approximately 94% of employees in Sephora China have completed the online anti- corruption training. Defining Sustainable Beauty from Sephora 22 Innovative information security Information security has always been our priority. Under the Sephora China Information Security Plan more than 150 partners with a shared green philosophy Made from FCS-certified forest trees The Sephora Collection applies packaging that is made from recyclable materials – which saves 100 metric tons of plastic – and is printed with vegetable-based inks 2021-2022 Sephora China Sustainability Report29 Defining Sustainable Beauty from Sephora 30 Corporate culture Sephora has devised a “people-oriented” 4C talent philosophy Employee empowerment As a member of LVMH Group, Sephora is committed to valuing “people” as its most precious asset and training talents under the Group’s consistent philosophy – People make the difference. Along its long journey of unleashing beauty power from the inside out, Sephora China continues to optimize its human resource structure and employee training system, harnessing its beauty power to reflect the three core values that LVMH upholds – innovation, excellence and an entrepreneurial spirit. We hope all of our employees have the courage to try new things – despite of failure – and gain experience through failure in order to grow faster. We firmly believe that curiosity drives employees to keep passionate for all things and explore more diversified solutions and approaches in the face of problems and challenges. We encourage employees to embrace change, rather than standing still. We believe that Sephora’s employees should be good at teamwork, communicating and understanding. Courage Creativity Change Cohesion Sustainable product development It uses more than 90% natural plant extracts, and some product containers are made of degradable and pollution-free sugarcane residues. Since 2020, Sephora has invented an immersive ingredient analysis tool – Yes List, which provides consumers with a one-stop online and offline skincare experience. It uses digital content to facilitate the highly efficient promotion and sales of skincare product. The campaign received over 2.2 billion exposures. In 2022, we officially launched Yes List 3.0, leading the sustainable beauty trend among consumers. Born from an ecological dream, CHA LING was created in 2012 by LVMH Research with the hope of guarding tea forests deep in Yunnan. With the brand philosophy “Beauty with a meaning, for you, for others, and for the world,” CHA LING hopes to share its sustainable skincare philosophy of “CHUN CUI” (pure extract) with consumers while promising to commit a portion of its proceeds to the conservation of tea forests in Yunnan’s Jingmai Mountain. CHA LING has been working closely with Yunnan TianZi Biodiversity Research and Development Center for 10 years. They cooperate in planting 20 hectares of the conservation area in the “Tea Forest Program,” and invest part of the brand’s proceeds in the conservation of tea forests in Yunnan where over 110,000 tea trees and 6,000 other trees have been planted since 2015. In this ecosystem built by beauty power and goodwill, a variety of flora and fauna flourish by the grace of nature, bringing rich biodiversity to the local ecology and fulfilling the brand’s sustainability vision. Sephora Collection The Sephora Yes List Tea Garden Project by CHA LING To safeguard and promote biodiversity is the core concept of CHA LING. CHA LING’s products are made of natural ingredients and use sustainable and traceable raw materials as a priority in their research and development.