Has Estée Lauder Companies met its 2026 social impact and sustainability goals?

By Alessandro Carrara | Published: 29-Oct-2026

Ingredients Research & Development

Estée Lauder Companies (ELC) has released its Social Impact & Sustainability (SI&S) report for 2026, detailing the brand owner’s performance across environmental, social, and governance. Has ELC been able to meet its lofty targets over the past year?

Has Estée Lauder Companies met its 2026 social impact and sustainability goals?

Estée Lauder Companies (ELC) has released its Fiscal 2026 Social Impact & Sustainability (SI&S) Report, but has the company met its targets?

The annual report details the US beauty giant’s progress, strategies, and year-over-year performance across environmental, social and governance (ESG).

This includes employee health, safety and experience; climate and energy; sustainable and recyclable packaging; water and waste reduction; and responsible sourcing.

ELC tracks this progress through three key metrics: target met and maintained, on track and off track.

“Fiscal 2026 marked an important turning point for the Estée Lauder Companies,” said ELC President and CEO Stéphane de La Faverie.

“Through [our turnaround strategy] ‘Beauty Reimagined’, we reignited growth, improved profitability and accelerated the transformation of our company.

“But as we build a stronger, more agile and consumer-centric organisation, one conviction remains unchanged: how we grow matters just as much as the growth we achieve.

“We recognise that meaningful change requires sustained effort, transparency about our progress and the humility to acknowledge where more work is needed.

“Our responsibility is not defined by a single year or business cycle, but by the lasting difference we make over time.”

Below, Cosmetics Business outlines whether ELC has failed, met, or exceeded its social and environmental impact goals for fiscal year 2026.

ELC’s climate and energy goals

The climate and energy category represents one of ELC’s largest areas of focus in itsSI&S report, alongside packaging.

By 2030, ELC aims to reduce its absolute Scope 1 and 2 GHG emissions, the total physical volume of greenhouse gases released by an organisation, by 50% from a fiscal 2018 baseline.

In 2026, ELC reduced this impact by 44%, falling short by 6%, but still being determined as ‘on track’ to meeting this goal by 2030.

“The primary downward driver was a reduction in our use of natural gas in manufacturing, offices and freestanding stores,” an ELC statement read.

Absolute Scope 3 GHG emissions, the total mass of carbon dioxide equivalent (CO₂e) emissions released, saw a 22.7% reduction over the past year.

This metric was also deemed ‘on track’ for a 30% reduction by 2030 from a fiscal 2018 baseline.

ELC said transportation activity and reduced capital expenditures drove this, and it also reflected data collection and methodology improvements.

One area recorded as being ‘off track’ was the transition to electric vehicles representing 100% of ELC’s global corporate fleet – with its ratio in 2026 sitting at only 30.5%.

“We continue to transition our global corporate fleet to electric vehicles, with progress advancing most in markets where EV infrastructure and availability are more developed and lagging in others,” ELC said in a statement.

Finally, the beauty giant achieved its goal of sourcing 100% renewable electricity for its direct operations each year, meeting and maintaining its target.

The ELC statement continued: “We continue to source renewable electricity for our direct operations through a combination of on-site generation, utility contracts, energy attribute certificates and our virtual power purchase agreement.”

ELC’s water goals

ELC has set out ambitions to reduce its absolute water withdrawal by at least 50% from direct manufacturing sites, focusing on high and extremely high water-stressed sites, from a fiscal 2019 baseline.

Over the past year, the brand owner exceeded this target and reduced its impact by 55%.

“We continued to focus on efficiency and implementation of water management best practices as well as execution of capital projects,” ELC’s statement continued.

“In fiscal 2026, our water withdrawal reduction improved significantly, driven mainly by the decommissioning of a water-intensive system.”

ELC’s waste goals

Another area where ELC exceeded its environmental impact goal in 2026 was waste, recording a 33% reduction.

The company previously set its absolute waste limit at 15% by 2040 from direct manufacturing and distribution sites, from a fiscal 2023 baseline.

Advanced waste reduction efforts at manufacturing and distribution sites benefited from operational efficiencies, waste prevention, reuse, recycling and other waste management initiatives.

ELC’s sourcing goals

In terms of sourcing goals, ELC will continue to source at least 95% of its palm-based ingredients, including palm oil and its derivatives, from Roundtable on Sustainable Palm Oil (RSPO) certified sustainable physical supply chains each year.

It met and maintained this target with a metric of 97% in 2026, exceeding its baseline goal of ≥ 95% by 2030.

ELC wrote in its report: “We continue to source the vast majority of our palm-based ingredients through RSPO-certified sustainable physical supply chains and engage suppliers to support responsible sourcing practices.”

Nancy Mahon, Chief Sustainability Officer at ELC, on the company’s 2026 performance

Nancy Mahon was appointed the first Chief Sustainability Officer of ELC in 2023, and has been leading the company’s environmental goals in that time.

“The Estée Lauder Companies' social impact and sustainability are embedded in how we create value for consumers, strengthen our brands and contribute to a more resilient future,” said Mahon.

“Our efforts to drive positive impact and deliver on consumer expectations are integral to the strategic vision of ‘Beauty Reimagined’.

“Our social impact and sustainability work comes to life through the decisions we make every day: how we develop our products, select materials, operate our facilities and support our communities.”

ELC President and CEO Stéphane de La Faverie

ELC’s packaging goals

The packaging category represents ELC’s second largest area of focus on environmental impact, with the majority of goals being marked as ‘on track’ during FY26.

Among its ambitions is increased recycling, with a transition to at least 70% of its packaging being recyclable by 2030.

Over the past year, 67% of ELC’s packaging met this recyclable criteria, falling short of 70%.

“We continue to advance recyclable packaging solutions while navigating differences in recycling infrastructure, technical feasibility, and evolving regulatory requirements across markets,” a statement in the SI&S report read.

For its second goal, ELC is seeking to transition to at least 6% of its packaging to be refillable or reusable.

In FY26, this was reported at 3% and deemed ‘on track’, as the company continues to expand refillable and reusable packaging solutions across its portfolio.

It claimed this all while addressing design, consumer experience, and operational considerations that vary by product and market.

Another area of focus is 25% post-consumer recycled (PCR) material in ELC’s packaging, which the business claimed it is also on track to meet by 2030, recording 21% in 2026.

Alongside this is the goal of using at least 95% responsibly sourced forest-based fibre in paper packaging, which was reported at 94% in FY26.

ELC said in a statement: “We continue progress on responsible forest-based fibre sourcing, reflecting the expanded scope of paper packaging included in our efforts.”

Finally, for the packaging category, ELC will use at least 50% non-virgin petroleum content in its plastic packaging, which currently stands at 19% over the past year.

“While cost pressures limited the addition of PCR in some areas, we continue to work towards this goal by leveraging a broad range of packaging solutions, including advanced recycling, and exploration of bio-based resins and alternative packaging formats,” the SI&S report read.

ELC’s Product & Ingredient Transparency goals

Another positive area is product assessment, which has received a fresh goal in 2026.

ELC aims to evaluate 100% of its formulated product portfolio using a life cycle assessment (LCA) tool in fiscal 2027.

The company will also continue to maintain an online corporate glossary of key ingredients which includes descriptions of the ingredients’ purpose.

ELC’s social investments goals

Moving from manufacturing and environmental impacts, ELC has also outlined how it plans to make a difference in social settings and volunteering.

By 2030, the owner of Clinique will contribute US$50m to support women’s and girls’ health, education, leadership and entrepreneurship.

It has already committed $16.5m and remains ‘on track’ toward achieving this commitment.

ELC’s employee volunteerism and giving goals

ELC will also engage employees to contribute $10m to non-profits through its employee volunteerism and giving programme, having already achieved $2.5m in donations in FY26.

ELC claimed: “We continue to engage employees in giving and volunteerism through a portfolio of programmes that connect employees with non-profit organisations and opportunities to contribute to their communities.”

ELC’s employee safety goals

Rounding off the list is the welfare of ELC’s staff, with the company seeking to achieve at least a 0.15 Total Recordable Incident Rate (TRIR), maintaining world-class levels of employee safety.

It met and maintained this target in 2026 for the very first time.

ELC President and CEO Stéphane de La Faverie’s closing thoughts

De La Faverie claimed to be ultimately pleased with ELC’s performance in 2026.

He explained: “As I look ahead, I am energised by what we can accomplish.

“We have the brands, the talent, the scientific expertise, the creativity and the determination to help shape the next era of prestige beauty.

“And I believe our greatest opportunity lies in demonstrating that business performance and positive impact are not competing priorities, but powerful forces that can reinforce one another.

“Our ambition is clear: to build a more resilient and innovative company that not only leads the future of prestige beauty but also contributes positively to the world around us.”