Oriflame Cosmetics - CEO
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Statement from the CEO

In 2017 we celebrated our 50th Birthday as a company. A true milestone. It’s a time for reflection on our successes and shortcomings. Respect for nature and people has always been a part of our culture since Oriflame was created. During those 50 years we have progressed a lot in regard to our sustainability commitments. However, in the light of global resource scarcity, climate change and runaway bio-diversity loss, we need to accelerate our activities and step up our game. When revamping our Sustainability strategy in 2018, I hope to see some engaging long-term goals that guides us towards contributing to both the UN Sustainable Development Goals as well as challenge ourselves to sustain the forefront position we have in our industry. I am also pleased to confirm that Oriflame Cosmetics reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In 2017, we launched our Sustainability communication concept Beautiful Change. This concept is a way for us to start telling all the amazing stories we have from around the world that contribute to making the world a better place. From creating opportunities for people to improve their lives and bringing beauty and wellbeing to the many, to giving back to local communities and nature. We have so much to share! Economically 2017 showed amazing progress. Sales grew by 9% in Euros and the operating margin increased from 9.5% to 11.7%. These profits have now made us net debt free, which increases our resilience and willingness to become even more strategical within the area of sustainability.

For almost a decade now, I have seen our sustainability efforts improve. Since 2013 close to 100% of all catalogue paper used are from credibly certified sources. An increasing number of our ingredients are biodegradable, and we have a growing amount of post-consumer recycled plastic (PCR) in our bottles. By 2020, PCR should be 20% by weight in our PE and PET cosmetic packaging. Our forthcoming plastic strategy will address this and what the most sustainable way forward should be. As the first company in our industry, all our use of palm oil was covered by so called Roundtable on Sustainable Palm Oil (RSPO) credits already in 2010. In 2018, we raise the bar even further and move towards more usage through Mass Balance. This means that we effectively engage the supply chain actors of palm oil to be part of the sustainable palm oil trade and hence taking steps in supporting the production and usage of sustainable oil palm products.

We know that to sustain life on this planet, we need to move towards a carbon free society. Since 2010, Oriflame has reduced its absolute greenhouse gas emissions by 24%. Our goal in 2020 is to reduce emissions per sales by 50% compared with 2010. The results of 2017 shows a reduction of 18%. We will therefore focus on actions to reduce our climate impact further to reach the goal. In 2018 we want to increase the use of renewable energy and hence we commit to 100% renewable electricity in Oriflame operated buildings by 2020. Oriflame, despite our products, is really a people’s company. It’s part of our culture and it’s part of our value creation. I would say that Oriflame’s business success is built on a simple formula: combine people’s natural desire to improve their lives with the right opportunity, and it creates real, positive, change. Whether you are a consultant, or an employee.

Oriflame has a proven business model, perfect for the modern networking world. It is flexible, digital and powered by millions of trusted relationships and recommendations. With no risk, we offer “entrepreneurship in a box”. By accelerating our business, we have a positive impact on people and communities around the world. The value of local entrepreneurship in our global society is well recognised, from the jobs it generates to the skills it nurtulres. Not to mention the empowerment of our consultants – the majority of whom are women. This is not to be underestimated when building our sustainable future. 50 years in, Oriflame is the choice of three million people. Looking ahead, we are committed to continuing to build on this simple formula – empowering people and enabling positive change around the world.