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Reducing Our Emissions

We are taking action to cut emissions across our business. By 2020, we want to cut Oriflame’s CO2 impact by half. [1].

Carbon emissions are a serious global challenge. There is more carbon dioxide in the atmosphere today than there has been for 650,000 years. Fourteen out of the fifteen warmest years on record have occurred since 2001, and the number of extreme weather events continues to rise.

Changing global climate patterns will mean more extreme and unpredictable weather with for example more frequent storms, heat waves, droughts and floods. Greenhouse Gases, including carbon emissions, are one of the major contributors to climate change. In addition they contain particles that result in local air pollution and health issues.

Our business has a presence in countries that are already experiencing the effects of climate change, which encourages us to take bold action to reduce our impact. Results from lifecycle assessments show that Oriflame impacts the climate in a multitude of ways; e.g. through the materials we source, manufacturing, transportation and travel and how the products are disposed at the end of life. Working to reduce our climate impact throughout our whole value chain will make us more efficient as a company and help drive innovation.

Since we track and analyse the emissions that are under our control, we have been able to develop a strong strategy for where to make savings in both emissions and cost.

 

 

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. We started by focusing on our factories, and then moved on to our operations and other areas over which we have control – such as our offices and our travels.

The next step is to start working on areas that we can influence but do not control. This means reaching along our value chain to find and create opportunities for change among our suppliers and our consumers. We intend to expand our strategy both in terms of reach across the supply chain but also regarding the scope of issues under consideration. We will continue to review the likely impacts of climate change on our business and supply model.

Results since 2010

By implementing a company-wide program, we reduced the emissions from Oriflame’s operations by 6% compared to 2014 and by 31% since 2010.

The emissions intensity measured as emissions per €M revenue (tCO2e/€M) was 45.1 in 2015, a reduction of 13% since 2010. Compared to 2014 the ratio decreased by almost 2%. The emissions per square meter (tCO2/m2), an indicator of energy efficiency, decreased by 8% compared to 2014 and by 34% since 2010.

 

 

 

In particular, reductions have been achieved thanks to the significant modifications and changes to the set-up of our distribution network, which has resulted in a more than 50% decrease in emissions from globally organised transportation since 2010.

  • We are gradually consolidating local warehouses and moving our product sourcing, catalogue printing and Global Distribution Centres (GDCs), closer to our major markets, resulting in lower environmental impacts as well as reduced lead times.
  • We are continuously reviewing the packing and loading routines so that more can fit in each truck and container. The average number of pallets shipped in each truck and container have increased by more than 50% since 2010. (This helped saved us €5.4 million between 2010 and 2015!)
  • We are improving our transportation routes, and focusing on reducing our air shipments. This also includes increasing the share of shipments directly from suppliers to Oriflame markets’ warehouses.
  • When selecting road carriers the aim is to utilise Euro 4, 5 and 6 standard trucks wherever possible, thus reducing particle emissions.

Part of the reduction in emissions was also due to a 36% reduction in the number of total pallets shipped since 2010, which was mainly due to lower sales.

At our manufacturing sites we are also continuing to implement energy efficiency measures, contributing to an absolute decrease in emissions and achieving our 2015 targets. Initiatives include developing lower energy processing techniques, upgrading lighting and lighting control, improving heating and ventilations systems and focusing on better building insulation.

Finally, we are continuously working to increase our share of renewable energy across the business with the long-term ambition to achieve 100% renewable energy in Oriflame owned buildings. During 2015 42% of total electrical consumption, and 21% of energy use in manufacturing came from renewable sources. The decrease is mainly due to divestment of Swedish factory and a ramp up in our new Russian factory.

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[1] This goal is based on emissions relative turnover from 2010 as our base year.