Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Oriflame Cosmetics AB Module: Introduction Page: Introduction 0.1 Introduction Please give a general description and introduction to your organization Founded in 1967 by two brothers and their friend, Oriflame is now an international beauty company selling direct in more than 60 countries worldwide. Its wide portfolio of Swedish, nature-inspired, innovative beauty products are marketed through a sales force of approximately 3 million independent Oriflame Consultants, who together create annual sales of around 1.5 billion. Oriflame offers the leading business opportunity for people who want to start making money on day one and work towards fulfilling their personal dreams and ambitions through its unique business opportunity concept - Make Money Today and Fulfil Your Dreams Tomorrow. Respect for people and nature underlies the company s operating principles and is reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a Co-founder of the World Childhood Foundation. Oriflame is a Luxembourg company group with corporate offices in Luxembourg and Switzerland. Oriflame Cosmetics is listed on the Nasdaq OMX Nordic Exchange. 0.2 Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(dd)/month(mm)/year(yyyy) (i.e. 31/01/2001).
Enter Periods that will be disclosed Sun 01 Jan 2012 - Mon 31 Dec 2012 0.3 Country list configuration Please select the countries for which you will be supplying data. This selection will be carried forward to assist you in completing your response Algeria Armenia Azerbaijan Belarus Bosnia and Herzegovina Bulgaria Chile China Croatia Czech Republic Ireland Ecuador Egypt Estonia Finland Georgia Greece Netherlands Hungary India Indonesia Kazakhstan Select country
Select country Kyrgyzstan Latvia Lithuania Luxembourg The former Yugoslav Republic of Macedonia Mexico Moldova Mongolia Morocco Norway Pakistan Peru Poland Romania Russia Serbia Slovenia Spain Sri Lanka Sweden Switzerland Thailand Turkey Ukraine Vietnam Slovakia Kenya Tanzania Uganda 0.4
Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. EUR( ) 0.6 Modules As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sectors, companies in the oil and gas industry and companies in the information technology and telecommunications sectors should complete supplementary questions in addition to the main questionnaire. If you are in these sectors (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email respond@cdproject.net. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdproject.net/en-us/programmes/pages/more-questionnaires.aspx. Module: Management [Investor] Page: 1. Governance 1.1 Where is the highest level of direct responsibility for climate change within your company? Individual/Sub-set of the Board or other committee appointed by the Board 1.1a Please identify the position of the individual or name of the committee with this responsibility Climate change is the direct responsibility of the Executive Vice President Global Operations, who reports directly to the CEO. 1.2
Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes 1.2a Please complete the table Who is entitled to benefit from these incentives? The type of incentives Incentivized performance indicator Facility managers Monetary reward Meeting energy and emission reduction targets Business unit managers Monetary reward Meeting emission reduction targets Other: Environment/sustainability managers Monetary reward Communicating climate change issues Page: 2. Strategy 2.1 Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities A specific climate change risk management process 2.1a Please provide further details i.) A specific climate change risk process that covers Oriflame s global operations is managed by Oriflame's Senior Advisor Sustainability who is responsible for driving work with climate change throughout the organisation. The assessments cover regulatory, customer behaviour, reputational and weather-related risks. ii.) At a company level these risks are initially assessed by the sustainability team. Depending on the specific areas (regulatory/physical) other parts of the organisation are involved in identifying and assessing the degree of risks. Climate change is also included in Oriflame's company-wide risk and internal control
process; here the top concerns are highlighted. Main business risks, financial implications and actions to mitigate the risks are monitored continuously. iii.) At an asset-level, individual site managers are required to complete annual climate change questionnaires requiring a range of data which is integrated into the risk process. This data is fed back to the central executive and presented annually. iv.) The risk assessments are conducted on an annual basis. v.) To define the materiality of our climate change risks, the risk value is determined as the product of the financial risk impact and the probability of the risk occurring. vi.) The audience for this process is the CEO and the executive team. 2.2 Is climate change integrated into your business strategy? Yes 2.2a Please describe the process and outcomes i. How business strategy has been influenced? Oriflame s overall objective is to create profitable growth through an attractive beauty offering along with an easily accessible business opportunity for its Consultants. The wide geographical footprint, with operations in some of the highest potential growth markets in the world, and the very strong market positions in the more mature markets, constitute a solid ground for the Company to exploit further. Oriflame strives for optimised allocation of resources to reach sourcing and operational efficiency with a sustainable profile. Climate change has influenced the decision on how to deliver the full range of our products to our sales consultant in the most effective and efficient manner possible, for example impacting our business strategies for logistics and for building new facilities. Energy and fuel efficiency is also an integral part of achieving this goal, whilst being a key part of our core environmental sustainability agenda. Over the past three years, Oriflame has developed a strategy to increase the efficiency of our product distribution by moving our distribution points closer to our core markets that are largely based at present in the CIS and Asia. Cutting fuel use, energy costs and carbon emissions was key to this decision. We are currently conducting a further review into how this process can be further optimised in order to protect the business from rising fuel costs, and meet our commitments to be a low carbon business. Oriflame manages climate change as part of its wider sustainability programme. This is managed at executive level by the Senior Advisor on Sustainability, who reports directly to the Executive Vice President Global Operations and works closely with the existing organization to ensure that environmental considerations are factored into every major business decision throughout the organization. The core business strategy is continuously influenced through the delivery of information directly to the executive team. The sustainability team collates information from across the organisation on a range of environmental issues including climate change. Key concerns and suggested solutions are determined with the Senior Advisor Sustainability and are regularly reported to the executive team during monthly meetings. The top-level strategy is set centrally whereas the responsibility of implementation and fulfilling Oriflame s commitments sits firmly within every part of the
organisation. ii. What climate change aspects have influenced the strategy? Results from lifecycle assessments show how Oriflame s operations impact the climate in a multitude of ways; e.g. through material sourcing, manufacturing, transportation and travel and product disposal. These areas may be impacted by changes in regulations, in addition to changes in energy security and prices. In line with the business strategy and Oriflame's long-term vision to become a sustainable company, actions are being taken to reduce our carbon dependence through a wide range of initiatives. During 2011, Oriflame took the decision to adopt a new carbon reduction target that covers all offices, warehouses and manufacturing sites, as well as travel and transportation organised centrally. Oriflame operates in some of the regions of the world most exposed to climatic risk. These areas are focusing on reducing local impact (e.g. water usage) and developing alternative sourcing and shipping options should local disruptions (e.g. floods) occur. iii. Short term (current -2 years) strategy changes include; Logistics efficiency projects, e.g. increasing loading utilisation in trucks and containers. Oriflame has rolled out an online communication tool to all office based employees and is continuously upgrading equipment to meet increasingly higher requirements of quality and quantity. In addition relevant training and incentives to reduce travel are provided. Energy audits have been carried out internally identifying a range of efficiency measures at our internal manufacturing units. These units have specific short term targets to reduce energy and greenhouse gas emissions. Energy audits will continue to be carried out regularly and are also being rolled out to other parts of the organisation, including warehouses and offices. Going forward, we intend to expand our strategy both in terms of reach across the supply chain but also regarding the scope of issues under consideration. As part of this we will continue to review the likely impacts of climate change on our business and supply model. We understand that combating climate change requires both an approach to mitigation (outlined above) but also adaptation to the unavoidable impacts of climate change on our business. Impacts may include impact of water scarcity, climate resilience of our buildings or the risk and potential solutions to climatic disruptions to our supply routes. iv. Long term (3 years and more) strategy changes include; We will reduce future greenhouse gas emissions at our new facilities by actively working to pursue LEED green building scheme certification for all new production facilities. Oriflame is in the process of LEED certifying the Noginsk Facility which is being constructed outside Moscow. Taking a substantial business decision to reconfigure logistic routes to reduce delivery distances, as a result our Group Distribution Centres are moving closer to our main markets (our distribution centre in Holland has been closed down, and new distribution centres in Warsaw, Budapest, Kiev and Moscow have opened up), resulting in lower environmental impact as well as reduced lead times. We are also moving sourcing of products and printing of catalogues closer to the current and future Group Distribution Centre facilities and major markets to improve transportation routines further; lowering carbon emissions and energy consumption, reducing lead times and cost. v. Strategic advantage over competitors As different stakeholders increasingly set demands on performance on environmental parameters, companies that are ahead of their competitors will be rewarded, including by our consumers. Oriflame is determined to become a leader on the sustainability agenda. vi. Substantial business decisions during 2012 During 2012, a new strategy to reduce climate change impact was adopted and the implementation process started. The strategy sets out how Oriflame will work to reduce emissions in all our own production sites, offices and logistics operations, as well as the company's business travel.
2.2b Please explain why not 2.3 Do you engage in activities that could either directly or indirectly influence policy on climate change through any of the following? (tick all that apply) No 2.3a On what issues have you been engaging directly? Focus of legislation Corporate Position Details of engagement Proposed solution 2.3b Are you on the Board of any trade associations or provide funding beyond membership? 2.3c Please enter the details of those trade associations that are likely to take a position on climate change legislation Is your position on climate change Trade association consistent with theirs? Please explain the trade association's position How have you, or are you attempting to influence the postion? 2.3d
Do you publically disclose a list of all the research organizations that you fund? 2.3e Do you fund any research organizations to produce public work on climate change? 2.3f Please describe the work and how it aligns with your own strategy on climate change 2.3g Please provide details of the other engagement activities that you undertake 2.3h What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? 2.3i Please explain why you do not engage with policy makers Currently Oriflame does not pursue a policy of regularly engaging with policymakers on this issue, however, this is an area that we are reviewing for the future. Page: 3. Targets and Initiatives
3.1 Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year? Intensity target 3.1a Please provide details of your absolute target ID Scope % of emissions in scope % reduction from base year Base year Base year emissions (metric tonnes CO2e) Target year Comment 3.1b Please provide details of your intensity target ID Scope % of emissions in scope % reduction from base year Metric Base year Normalized base year emissions Target year Comment G2020 Scope 1+2+3 100% 50% metric tonnes CO2e per unit revenue 2010 0.000051 2020 Global target. Scope 3 includes Logistical Transport, Waste sent to Landfill, Water Use, Electricity Transmission and Losses, and Business Travel 3.1c Please also indicate what change in absolute emissions this intensity target reflects
ID Direction of change anticipated in absolute Scope 1+2 emissions at target completion? % change anticipated in absolute Scope 1+2 emissions Direction of change anticipated in absolute Scope 3 emissions at target completion? % change anticipated in absolute Scope 3 emissions Comment G2020 Decrease 22 Decrease 22 3.1d Please provide details on your progress against this target made in the reporting year ID % complete (time) % complete (emissions) Comment G2020 20% 36% 0.000041792 tco2e per unit revenue in 2012 3.1e Please explain (i) why not; and (ii) forecast how your emissions will change over the next five years 3.2 Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party? No 3.2a Please provide details (see guidance)
3.3 Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and implementation phases) Yes 3.3a Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *) Under investigation 0 To be implemented* 88 Implementation commenced* 0 Implemented* 276 Not to be implemented 211 3.3b For those initiatives implemented in the reporting year, please provide details in the table below Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Annual monetary savings (unit currency - as specified in Q0.4) Investment required (unit currency - as specified in Q0.4) Payback period
Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Annual monetary savings (unit currency - as specified in Q0.4) Investment required (unit currency - as specified in Q0.4) Payback period Behavioral change Energy efficiency: Building fabric Energy efficiency: Processes Low carbon energy purchase Energy efficiency: Building services Behavioral change Other Driving employee awareness through promoting and implementing internal "Green office" program. Objective is to reduce emissions by changing behaviours, e.g. reduce energy consumption in facilities (scope 1, 2) and waste (scope 3). Voluntary initiative. Ongoing program. Retrofitting of a building management system in our India factory to manage energy consumption. Upgrades to lighting and HVAC systems, and installation of a pilot solar energy component at our China factory, including upgrades to high efficiency lamps and lighting controls. Also replacement of utility motors with high efficiency models for energy reduction at our Polish factory. Initiatives cover scope 2. Voluntary initiative. Expected lifetime up to 10 years. Changes made to process support equipment and development of lower energy processing techniques at our Swedish and Polish manufacturing sites. Initiatives cover scope 1. Voluntary initiative. Expected lifetime up to 10 years. Green electricity with a certified renewable energy component was procured in 2012 by two manufacturing units and five offices. This is estimated to have reduced net Scope 2 emissions by 915 tonnes CO2e in 2012. Voluntary initiative. Ongoing project. Campaigns to set office computers to their most energy efficient settings (and use the power down function to put to sleep when out of use), resulting in Scope 2 emissions reduction. Implemented in 77% of sites surveyed. Voluntary initiative. Video conferencing - Reducing trips to other offices by using video conferencing software resulting in scope 3 emissions reductions. Implemented in 90% of sites surveyed. Voluntary initiative. Ongoing. Reduce the number of printers and encourage equipment sharing. Implemented in 77% of sites surveyed. <1 year 1-3 years 3.3c
What methods do you use to drive investment in emissions reduction activities? Method Comment Compliance with regulatory requirements/standards Dedicated budget for other emissions reduction activities Employee engagement Financial optimization calculations Internal finance mechanisms Lower return on investment (ROI) specification 3.3d If you do not have any emissions reduction initiatives, please explain why not Page: 4. Communication 4.1 Have you published information about your company s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s) Publication Page/Section reference Attach the document In mainstream financial reports (complete) pages 33,34 Module: Risks and Opportunities [Investor]
Page: 5. Climate Change Risks 5.1 Have you identified any climate change risks (current or future) that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments 5.1a Please describe your risks driven by changes in regulation ID Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact 1 2 Emission reporting obligations Product labeling regulations and standards The emergence of mandatory carbon reporting legislation in Oriflame's markets could add complexity in our supply chain. Discussions are on-going within e.g. the EU to include carbon standards and/or labelling of products. This would potentially increase complexity in our supply chain and increase administrative burden. Increased operational cost Increased operational cost 1-5 years Direct 6-10 years Direct More likely than not More likely than not Low Low 5.1b Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk and (iii) the costs associated with these actions
ID 1 & 2 i.) The financial implications due to increased reporting and labelling are considered limited. ii.) Anticipating an increase in reporting requirements relating to carbon emissions, we conduct annual carbon footprint assessments of our group s global operations. This is conducted following the requirements of the greenhouse gas protocol and ISO 14064-1 (2006). In addition we are working to gain a better understanding and co-operation with our suppliers with the long term objective to take more responsibility of our total footprint emissions, therefore being better prepared also for future regulatory requirements. Relevant regulations in key markets are monitored continuously to ensure that necessary action is taken to minimize impacts. iii.) Current costs are incorporated into the company s wider plan to measure and reduce its footprint cost liability. 5.1c Please describe your risks that are driven by change in physical climate parameters ID Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact 1 2 Change in precipitation pattern Change in precipitation extremes and droughts Water scarcity could result in higher operational costs for Oriflame due to the increased cost of water and other raw materials requiring water to farm or produce. Flooding of transport infrastructure or at Oriflame's internal or external manufacturing sites (highest risk at Asian facilities) could disrupt distribution and production. Oriflame is dependent on infrastructure (roads, ports etc.) and other transportation facilities to transport raw materials to production facilities, products to our customers and allow sales consultants to operate effectively. Increased operational cost Reduction/disruption in production capacity 6-10 years Direct 1-5 years Direct More likely than not More likely than not Unknown Unknown 5.1d Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the costs associated with these actions
ID 1 i.) Water scarcity is expected to lead to higher raw material costs in general for Oriflame, including the specific cost of water. A significant share of raw materials used by Oriflame are of natural origin and will likely be impacted. In the long term the financial implications could become material to the business. ii.) Actions taken by the company to manage this risk include increasing awareness of water usage among our employees, measuring and setting targets to reduce the amount of water used in our manufacturing and our offices. iii.) The costs of these actions are so far limited and included in the wider plan to measure and reduce environmental and social impacts. ID 2 i.) Disturbances at production facilities, as well as during transportation of goods, can result in loss of sales due to disruption of stock supplies. Financial implications could be significant. ii.) We have for example taken action to dual source critical products, ensuring we have two potential suppliers. We are continuously working on having several locations for manufacturing our products, hence not being dependent on one single factory. iii.) Increasing flexibility increases costs in some cases, this is evaluated continuously. 5.1e Please describe your risks that are driven by changes in other climate-related developments ID Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact 1 Reputation The cosmetics industry is continuously scrutinised by consumers and other stakeholders who are becoming increasingly aware of impacts and issues present throughout product life cycles. Not taking sufficient action could result in negative reputation. Reduced demand for goods/services Current Direct Unknown High 5.1f Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; (iii) the costs associated with these actions
ID 1 i.) We believe that consumers and other stakeholders will judge companies (like Oriflame) based on their full response and actions to sustainability challenges. Short term implications of reputation issues could be significant. Consumers can be quick to change their purchasing habits of cosmetics on ethical grounds, resulting in a high loss of sales. ii.) During 2012 Oriflame continued to roll out a series of improvements aimed at reducing our impact and further embed sustainability principles into the business, one of the key focus areas of this strategy is carbon reduction with a wide range of specific initiatives and commitments. This also includes making sure that Oriflame's activities and commitments are relevant and communicated to our consumers and other stakeholders in an honest and transparent manner. iii.) These costs are included in the wider plan to measure and reduce environmental and social impacts. 5.1g Please explain why you do not consider your company to be exposed to risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure 5.1h Please explain why you do not consider your company to be exposed to risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure 5.1i Please explain why you do not consider your company to be exposed to risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure
Page: 6. Climate Change Opportunities 6.1 Have you identified any climate change opportunities (current or future) that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Opportunities driven by changes in regulation Opportunities driven by changes in other climate-related developments 6.1a Please describe your opportunities that are driven by changes in regulation ID Opportunity driver Description Potential impact Timeframe Direct/Indirect Likelihood Magnitude of impact 1 General environmental regulations, including planning Being ahead of competition and prepared before new regulations are implemented, will potentially result in a range of opportunities for Oriflame in terms of reduced operational costs, attracting external stakeholders and new customers. Reduced operational costs 1-5 years Direct More likely than not Unknown 6.1b Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity and (iii) the costs associated with these actions ID 1 i.) Short term the financial implications are limited, however long term the potential opportunities can be substantial.
ii.) With a structured approach in place, including ongoing targets to reduce carbon dependency throughout the organisation, we have the ambition to stay in a position ahead of our main competitors. Coming regulations are continuously monitored and assessed to ensure that we take early action. Environmental regulations, for example a carbon tax, are likely to reward first movers and lower polluting companies. iii.) The costs of these actions are included in the wider plan to measure and reduce environmental and social impacts. 6.1c Please describe the opportunities that are driven by changes in physical climate parameters ID Opportunity driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact 6.1d Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity and (iii) the costs associated with these actions 6.1e Please describe the opportunities that are driven by changes in other climate-related developments ID Opportunity driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact 1 Reputation With a solid sustainability program in place, we are confident that we in future will be able to better attract new customers and have higher retention rates of existing customers due to a better reputation. Increased demand for existing products/services 1-5 years Direct Likely High 2 Changing Oriflame is in the position to provide cosmetic Increased demand for 1-5 years Direct Likely Low-medium
ID Opportunity driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact consumer behaviour products that enable consumers to better cope with consequences of climate change (sun, heat, water scarcity etc.) existing products/services 6.1f Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity; (iii) the costs associated with these actions ID 1 i.) There is an opportunity to be ahead of competitors and there therefore attract new customers as consumer demands change. The result would be increased sales. ii.) We are working to ensure that sustainability is integrated throughout our product development process so that the sustainability profile of our products is continuously improved. In addition we have launched a strong natural and eco-friendly range of products which has given us a reason to speak to our consumers about our work. We have started to educate our consumers about our different sustainability initiatives throughout our various sales channels. iii.) The costs of these initiatives are minimal; we have used our existing sales channels to communicate with our suppliers. ID 2 i.) Potential increase in sales in the long term, although it is believed that the short term opportunity will be limited. ii.) Oriflame has many years' experience in formulating skincare products and can readily adapt formulations to satisfy changing customer demands due to climate variations, e.g. creams to protect against harmful effects of UV radiation and environmental pollutants. Market and product development departments are continuously assessing changing demand patterns among consumers and launching products following the market's requirements. iii.) Any associated costs are taken as part of the ongoing product development process. 6.1g Please explain why you do not consider your company to be exposed to opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure
6.1h Please explain why you do not consider your company to be exposed to opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure Oriflame is likely to witness both risks and opportunities driven by changes in physical climate parameters, however, currently (and anticipated during coming 5 year period) we do not consider the opportunities to be very significant, i.e. with the potential to generate a substantial change to our business. The impact of water scarcity and whether it will be a cost saver (through efficiency) or result in increased costs (due to higher prices) will very much depend on the regional effects and the actual physical impacts of climate change in the coming years. For our Asian manufacturing, the related risk is potentially high. Actions taken already now include increasing awareness of water usage; we are now measuring/reducing amount of water used. These costs are included in the wider plan to measure and reduce environmental impacts. 6.1i Please explain why you do not consider your company to be exposed to opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading [Investor] Page: 7. Emissions Methodology 7.1 Please provide your base year and base year emissions (Scopes 1 and 2)
Base year Scope 1 Base year emissions (metric tonnes CO2e) Scope 2 Base year emissions (metric tonnes CO2e) Fri 01 Jan 2010 - Fri 31 Dec 2010 8194 21055 7.2 Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions Please select the published methodologies that you use Defra Voluntary Reporting Guidelines 7.2a If you have selected "Other", please provide details below n/a 7.3 Please give the source for the global warming potentials you have used Gas Reference CO2 IPCC Second Assessment Report (SAR - 100 year)
Gas Reference CH4 N2O HFCs PFCs SF6 IPCC Second Assessment Report (SAR - 100 year) IPCC Second Assessment Report (SAR - 100 year) IPCC Second Assessment Report (SAR - 100 year) IPCC Second Assessment Report (SAR - 100 year) IPCC Second Assessment Report (SAR - 100 year) 7.4 Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data Fuel/Material/Energy Emission Factor Unit Reference Attachments https://www.cdproject.net/sites/2013/65/14065/investor CDP 2013/Shared Documents/Attachments/InvestorCDP2013/7.EmissionsMethodology/Oriflame CDP 2013 - Section 7.4.xlsx Page: 8. Emissions Data - (1 Jan 2012-31 Dec 2012) 8.1 Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory Operational control 8.2
Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e 8011 8.3 Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e 22209 8.4 Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions which are not included in your disclosure? Yes 8.4a Please complete the table Source Scope Explain why the source is excluded Local Product Deliveries by Fleet Vehicles Scope 1 Unable to separate data between deliveries attributable to Oriflame and those attributable to other companies. 8.5 Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations
Scope 1 emissions: Uncertainty range Scope 1 emissions: Main sources of uncertainty Scope 1 emissions: Please expand on the uncertainty in your data Scope 2 emissions: Uncertainty range Scope 2 emissions: Main sources of uncertainty Scope 2 emissions: Please expand on the uncertainty in your data More than 10% but less than or equal to 20% Data Gaps Assumptions Metering/ Measurement Constraints Main source of uncertainty was gaps in the data collected (especially Refrigerants). Also, some sites estimated energy and travel data based on costs or other assumptions More than 10% but less than or equal to 20% Assumptions Metering/ Measurement Constraints Main source of uncertainty was assumptions - some sites estimated energy data based on costs or other assumptions. Also, Defra did not supply emissions factors for electricity in all countries concerned, so IEA factors were used where gaps existed 8.6 Please indicate the verification/assurance status that applies to your Scope 1 emissions No third party verification or assurance 8.6a Please indicate the proportion of your Scope 1 emissions that are verified/assured 8.6b Please provide further details of the verification/assurance undertaken, and attach the relevant statements Type of verification or assurance Relevant standard Attach the document
8.6c Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS) Regulation % of emissions covered by the system Compliance period Evidence of submission 8.7 Please indicate the verification/assurance status that applies to your Scope 2 emissions No third party verification or assurance 8.7a Please indicate the proportion of your Scope 2 emissions that are verified/assured 8.7b Please provide further details of the verification/assurance undertaken, and attach the relevant statements Type of verification or assurance Relevant standard Attach the document
8.8 Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization? No 8.8a Please provide the emissions in metric tonnes CO2 Page: 9. Scope 1 Emissions Breakdown - (1 Jan 2012-31 Dec 2012) 9.1 Do you have Scope 1 emissions sources in more than one country? Yes 9.1a Please complete the table below Country/Region Scope 1 metric tonnes CO2e Asia Pacific (or JAPA) 2117 CIS & Baltic states 1300 Europe, Middle East and Africa (EMEA) 4271 Latin America (LATAM) 322
9.2 Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply) 9.2a Please break down your total gross global Scope 1 emissions by business division Business division Scope 1 emissions (metric tonnes CO2e) 9.2b Please break down your total gross global Scope 1 emissions by facility Facility Scope 1 emissions (metric tonnes CO2e) Latitude Longitude 9.2c Please break down your total gross global Scope 1 emissions by GHG type GHG type Scope 1 emissions (metric tonnes CO2e) 9.2d
Please break down your total gross global Scope 1 emissions by activity Activity Scope 1 emissions (metric tonnes CO2e) 9.2e Please break down your total gross global Scope 1 emissions by legal structure Legal structure Scope 1 emissions (metric tonnes CO2e) Page: 10. Scope 2 Emissions Breakdown - (1 Jan 2012-31 Dec 2012) 10.1 Do you have Scope 2 emissions sources in more than one country? Yes 10.1a Please complete the table below Country/Region Scope 2 metric tonnes CO2e Purchased and consumed electricity, heat, steam or cooling (MWh) Purchased and consumed low carbon electricity, heat, steam or cooling (MWh) Asia Pacific (or JAPA) 5641 7197 0 Europe, Middle East and Africa (EMEA) 9055 27515 0
Country/Region Scope 2 metric tonnes CO2e Purchased and consumed electricity, heat, steam or cooling (MWh) Purchased and consumed low carbon electricity, heat, steam or cooling (MWh) CIS & Baltic states 7072 21280 0 Latin America (LATAM) 441 1378 0 10.2 Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply) 10.2a Please break down your total gross global Scope 2 emissions by business division Business division Scope 2 emissions (metric tonnes CO2e) 10.2b Please break down your total gross global Scope 2 emissions by facility Facility Scope 2 emissions (metric tonnes CO2e) 10.2c
Please break down your total gross global Scope 2 emissions by activity Activity Scope 2 emissions (metric tonnes CO2e) 10.2d Please break down your total gross global Scope 2 emissions by legal structure Legal structure Scope 2 emissions (metric tonnes CO2e) Page: 11. Energy 11.1 What percentage of your total operational spend in the reporting year was on energy? 11.2 Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year Energy type MWh Fuel 29428 Electricity 48994 Heat 8375 Steam 0 Cooling 0
11.3 Please complete the table by breaking down the total "Fuel" figure entered above by fuel type Fuels MWh Natural gas 17524 Diesel/Gas oil 3574 Motor gasoline 7230 Kerosene 169 11.4 Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor Basis for applying a low carbon emission factor No purchases or generation of low carbon electricity, heat, steam or cooling MWh associated with low carbon electricity, heat, steam or cooling Comments Page: 12. Emissions Performance 12.1 How do your absolute emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year? Decreased 12.1a
Please complete the table Reason Emissions value (percentage) Direction of change Comment Emissions reduction activities Divestment Acquisitions Mergers Change in output Change in methodology Change in boundary Change in physical operating conditions Unidentified Other 2.5 Decrease While turnover and output have been basically constant, emission reduction activities implemented during the year have resulted in emission reductions of more than 2%. 12.2 Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue Intensity figure Metric numerator Metric denominator % change from previous year Direction of change from previous year Reason for change 0.0000202913 metric tonnes CO2e unit total revenue 2 Decrease 12.3 Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee
Intensity figure Metric numerator Metric denominator % change from previous year Direction of change from previous year Reason for change 4.04820 metric tonnes CO2e FTE employee 3 Increase 12.4 Please provide an additional intensity (normalized) metric that is appropriate to your business operations Intensity figure Metric numerator Metric denominator % change from previous year Direction of change from previous year Reason for change 0.07566 metric tonnes CO2e square meter 1 Decrease Page: 13. Emissions Trading 13.1 Do you participate in any emissions trading schemes? No, and we do not currently anticipate doing so in the next 2 years 13.1a Please complete the following table for each of the emission trading schemes in which you participate Scheme name Period for which data is supplied Allowances allocated Allowances purchased Verified emissions in metric tonnes CO2e Details of ownership
13.1b What is your strategy for complying with the schemes in which you participate or anticipate participating? 13.2 Has your company originated any project-based carbon credits or purchased any within the reporting period? No 13.2a Please complete the table Credit origination or credit purchase Project type Project identification Verified to which standard Number of credits (metric tonnes of CO2e) Number of credits (metric tonnes CO2e): Risk adjusted volume Credits retired Purpose, e.g. compliance Page: 14. Scope 3 Emissions 14.1 Please account for your organization s Scope 3 emissions, disclosing and explaining any exclusions Sources of Scope 3 emissions Evaluation status metric tonnes CO2e Methodology Percentage of emissions calculated using primary data Explanation
Sources of Scope 3 emissions Evaluation status metric tonnes CO2e Methodology Percentage of emissions calculated using primary data Explanation Purchased goods and services Capital goods Fuel-and-energy-related activities (not included in Scope 1 or 2) Relevant, not yet calculated Relevant, not yet calculated Relevant, calculated 2464 Upstream transportation and distribution Relevant, calculated 16283 Waste generated in operations Relevant, calculated 1031 Business travel Relevant, calculated 12196 Employee commuting Upstream leased assets Investments Downstream transportation and distribution Processing of sold products Use of sold products End of life treatment of sold products Downstream leased assets Franchises Relevant, not yet calculated Not evaluated Not evaluated Relevant, not yet calculated Not evaluated Not evaluated Not evaluated Not evaluated Not evaluated Other (upstream) Relevant, calculated 48 Other (downstream) Not evaluated Defra Voluntary Reporting Guidelines Defra Voluntary Reporting Guidelines Defra Voluntary Reporting Guidelines Defra Voluntary Reporting Guidelines Defra Voluntary Reporting Guidelines 60% 100% 64% 55% 75% Water Use and Treatment 14.2 Please indicate the verification/assurance status that applies to your Scope 3 emissions No third party verification or assurance
14.2a Please indicate the proportion of your Scope 3 emissions that are verified/assured 14.2b Please provide further details of the verification/assurance undertaken, and attach the relevant statements Type of verification or assurance Relevant standard Attach the document 14.3 Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources? Yes 14.3a Please complete the table
Sources of Scope 3 emissions Reason for change Emissions value (percentage) Direction of change Comment Fuel- and energy-related activities (not included in Scopes 1 or 2) Waste generated in operations Upstream transportation & distribution Unidentified 10 Increase Unidentified 25 Decrease Emissions reduction activities 18 Decrease Other (upstream) Unidentified 44 Decrease Business travel Emissions reduction activities 5 Decrease Business travel Change in output 12 Decrease Business travel emissions have decreased due to implementing scheme to change employee behaviour, encouraging use of conference and video equipment instead of travel. Part of emissions decrease was due to a different location of one of the major business conferences that Oriflame held during 2012. Shorter distance to travel 2012 compared to 2011, significantly reduced emissions. 14.4 Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply) Yes, our suppliers 14.4a Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success i) Methods of engagement Meetings have been held with a limited number of key suppliers where climate change and GHG emissions have been part of the agenda. ii) Strategy for prioritising engagements
The supplier meetings have initially been held with strategically important suppliers in terms of e.g. carbon impact, spend, innovation and geographical location. iii) Measure of success It is a new initiative and the initial objective has been to put the question on the agenda and get an indication of the level of maturity of various suppliers; how are they managing climate change? Going forward we are working on developing a more structured approach on how to prioritise and reward suppliers taking firm action to reduce GHG emissions. 14.4b To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent Number of suppliers % of total spend Comment 14.4c If you have data on your suppliers GHG emissions and climate change strategies, please explain how you make use of that data How you make use of the data Please give details 14.4d Please explain why not and any plans you have to develop an engagement strategy in the future Module: Sign Off Page: Sign Off
Please enter the name of the individual that has signed off (approved) the response and their job title Alice Devine, Sustainability Director CDP 2013 Investor CDP 2013 Information Request