e.l.f. Beauty (NYSE: ELF) is proud to release its second annual Impact Report, detailing its environmental, social, and governance (ESG) initiatives and accomplishments in the last fiscal year (FY 2023). The 2023 Impact Report shows e.l.f. Beauty’s deep, ongoing commitment to create a culture internally – and in the world around us – where all individuals are encouraged to express their truest selves, are empowered to succeed, and where we strive to do the right thing for the people, the planet and our furry friends.
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“Our latest Impact Report demonstrates how we are creating a different kind of beauty company—one that is both purpose-led and results-driven” said Tarang Amin, e.l.f. Beauty's Chairman and Chief Executive Officer. “In FY 2023, we acted with purpose and took action to empower our communities and employees, further our sustainability initiatives and reduce our environmental footprint. At the same time, we delivered exceptional business results, reaching over $500 million in net sales and producing 219% total shareholder return (TSR) this past fiscal year. I am proud of the e.l.f. Beauty team for the milestones we’ve achieved and look forward to continuing to share our progress as we strive to make the best of beauty accessible for all.”
Driving Positive Change
Positivity, inclusivity and accessibility guide our actions at e.l.f. Beauty. Through a system of shared values and a deep commitment to diversity and inclusion, e.l.f. Beauty celebrates the beauty of every eye, lip and face. The 2023 Impact Report details e.l.f. Beauty’s purpose-driven actions across three pillars: Encouraging Self Expression, Empowering our Communities and Embodying our Ethics.
The results of these actions over the last fiscal year include:
- Ranking as 1 of only 4 U.S. public companies with a Board of Directors that is at least 2/3 women and at least 1/3 diverse (out of nearly 4,200 public companies)
- Scoring in the top 10% of ESG Ratings for Personal Products companies, according to Sustainalytics (as #7 out of 75)
- Reporting 91% overall employee engagement—19ppts above the industry benchmark and 2ppts above last year’s survey
- Donating 3% of our prior year profits to drive positive impact in our communities
- Reformulating an additional 300 SKUs to meet our standards of “e.l.f. clean” to exclude several additional ingredients beyond the Food and Drug Administration (FDA) and European Union Cosmetic Regulation (EUCR) restrictions
- Producing more than 75% of our products in Fair Trade CertifiedTM facilities
- Eliminating 2.5 million pounds of excess packaging since 2019
- Sourcing 75% of our paper product cartons using Forest-Stewardship CouncilTM (FSC)-certified paper
- Reducing our Scope 1 and 2 greenhouse gas (GHG) emissions by 94% vs. a FY 2022 baseline—meeting our science-based target of at least a 42% reduction by 2030
Growing the Mission for Greater Ongoing Impact
e.l.f. Beauty strives to create a better world for people, the planet and our furry friends. Looking ahead, we have announced new commitments that reflect our ambitions to continue to drive positive impact, including:
- Broadening our leadership team to further reflect the diverse communities we serve. We are proud to have a Board of Directors that is 2/3 women—putting us in the top 0.3% of U.S. public companies in Board gender diversity—and aspire to continue to rank in the top 1%. We currently have an employee base that is over 70% women and over 40% diverse. Our leadership team is 68% women and 29% diverse and we aspire to have a leadership team (director level and above) that is in line with our broader employee demographics.
- Providing resources that directly empower our communities and employees. We aspire to donate 2% of our profits each year to drive positive impact in our communities. We also aspire to keep our employees committed to our vision, mission and values—aiming to continue to have our overall employee engagement score at least 10 percentage points above the industry benchmark.
- Expanding our commitment to responsibly source materials and ingredients. Building on last year’s commitment to have 100% of our paper product cartons be Forest-Stewardship Council (FSC)-certified by FY 2025, we plan to have 100% of our wood brush handles become FSC-certified by FY 2025. In addition, we aim to achieve 100% Roundtable for Sustainable Palm Oil Sourcing (RSPO)-certified palm oil procurement by FY 2027.
- Increasing partnerships with sustainable suppliers. We are the first beauty company to be Fair Trade CertifiedTM and plan to continue to have over 75% of our products produced in Fair Trade CertifiedTM facilities. Additionally, our suppliers’ average EcoVadis sustainability score is 19 percentage points above the overall EcoVadis average (across its network of ~100,000 global measured suppliers), and we aspire to continue to maintain a well above average score.
- Further reducing our packaging footprint and carbon footprint. We aspire to reduce our packaging intensity by 20% by FY 2030. In FY 2023, we met our science-based target for reducing our Scope 1 and 2 emissions, and plan to set science-based targets for our Scope 3 emissions through the Science Based Targets initiative.
“Our new commitments signal a step change in our sustainability ambitions and our intent to continue to drive positive impact in the world around us,” said Ellen Leung, e.l.f. Beauty's Vice President of Sustainability. “By continuing to be intentional in how we live our purpose and values, we hope to inspire our employees, communities and partners to join our journey to create a more inclusive and accessible beauty industry.”
For more information and to view e.l.f. Beauty’s FY 2023 Impact Report, visit https://www.elfbeauty.com/social-impact/.
Virtual Fireside Chat on ESG, Purpose & Impact, Hosted by Raymond James – September 29 at 11:00AM ET
e.l.f. Beauty will participate in a virtual fireside chat on Friday, September 29 at 11:00am Eastern Time, to provide additional insight on the Company’s ESG initiatives and discuss how e.l.f. Beauty is establishing itself as a leader in both purpose and impact. The fireside chat will be hosted by Olivia Tong, Managing Director at Raymond James.
To register for the live webcast of the fireside chat, please visit https://investor.elfbeauty.com/news-and-events/events.
About e.l.f. Beauty
e.l.f. Beauty, Inc. builds brands designed to disrupt industry norms, shape culture and connect communities through positivity, inclusivity and accessibility. Our deep commitment to clean, cruelty-free beauty at an incredible value has fueled the success of our flagship brand e.l.f. Cosmetics since 2004 and driven our portfolio expansion. Today, our multi-brand portfolio includes e.l.f. Cosmetics, e.l.f. SKIN, pioneering clean-beauty brand Well People and Keys Soulcare, a groundbreaking lifestyle beauty brand created with Alicia Keys. Our family of brands is available online and across leading beauty, mass market and specialty retailers in the U.S., and has a growing international presence.
Learn more by visiting https://investor.elfbeauty.com.
This press release, the 2023 Impact Report, and the Company’s corporate responsibility/sustainability portions of its website contain forward-looking statements within the meaning of the federal securities laws, including those statements relating to the Company’s future ESG commitments, initiatives and goals. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, actual results and the timing of selected events may differ materially from those expectations. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the risks and uncertainties that are described in the Company's most recent Annual Report on Form 10-K, as updated from time to time in the Company's reports filed with the Securities and Exchange Commission (the “SEC”).
Additionally, the Company’s approach to the disclosures included in this press release, the 2023 Impact Report, and the Company’s corporate responsibility/sustainability portions of its website may differ from the Company’s approach to the disclosures included in mandatory regulatory reports, including filings with the SEC. This press release, the 2023 Impact Report, and the Company’s corporate responsibility/sustainability portions of its website are intended to provide information from a different perspective and, in certain cases, in more detail than that required to be included in the Company’s filings with the SEC. Climate related science, data and methodologies are rapidly evolving; those underlying the Company’s climate-related analysis and strategy remain subject to evolution over time. As a result of improvements to the quality and completeness of the Company’s data and updates to the Company’s methodology over time, the Company may include information in future disclosures that differ from those contained in this press release, the 2023 Impact Report, and the Company’s corporate responsibility/sustainability portions of its website.
This press release, the 2023 Impact Report, and the Company’s corporate responsibility/sustainability portions of its website contain third-party data. The Company has not independently verified this third-party data.
Potential investors are urged to consider these factors carefully in evaluating the information included in this press release, the 2023 Impact Report, and the Company’s corporate responsibility/sustainability portions of its website (including forward-looking statements). Unless otherwise specified, all information included in this press release, the 2023 Impact Report, and the Company’s corporate responsibility/sustainability portions of its website (including forward-looking statements) speaks only as of the date hereof. Except as required by law, the Company assumes no obligation to update or revise any information (including forward-looking statements) contained in this press release, the 2023 Impact Report, and the Company’s corporate responsibility/sustainability portions of its website for any reason, even if new information becomes available in the future.