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Greenhouse gas emissions and climate change

We are taking action to cut emissions across our business. By 2020, we want to cut Oriflame’s climate impact by half [3].

Emissions of Greenhouse Gases (GHG) are a serious global challenge. There is more carbon dioxide in the atmosphere today than there has been for 650,000 years. 17 of the 18 hottest 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. GHG, including carbon dioxide 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 action to reduce our impact. Results from lifecycle assessments show that Oriflame impacts the climate in a multitude of ways; e.g. manufacturing, transportation and travel. 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 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 GHG emissions from Oriflame’s operations by 24% since 2010. In 2017 absolute emissions increased by 18% compared to 2016 due to increased travels and increased number of product transports, as a result of an increased business activity. We also improved our data collection and emission factors, which resulted in more accurate results and increased emissions compared to previous years. Our goal is to reduce GHG emissions per sales by 50% in 2020 from 2010. In 2017 the emission intensity (tCO2e/€M) was 43.6 – an increase by 5% since last year, but a decrease by 18% since 2010. To be able to reach the goal in 2020 we will identify actions on how to decrease our climate impact further, for example during 2018 we will work on increasing renewable electricity in Oriflame operated buildings.

 

GHG emissions over time

 

In the 2017 reporting we have identified several warehouses that are not operated by Oriflame but are a part of our operational control. The emissions related to the warehouses (energy, waste, water) are presented as upstream leased assets. Since these emissions were not identified in 2010, emissions from upstream leased assets are not included in our 2020 target.
Due to this change in reporting the share of emissions from building energy from own operations has decreased compared to last year (from 45% to 35%). 42% of our GHG emissions origin from business travel (including Consultants travelling to conferences), which is an increase compared to last year (27%). This is due to increased travel because of our 50th anniversary conference and improved data collection as well as improved emission factors. Other emissions are refill of refrigerants, water, waste generated in operations and upstream leased assets. More information about our GHG emissions can be found in the GRI Index.

GHG emission breakdown 2017


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 49% decrease in absolute 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 in each container shipped by boat has increased by 58% since 2010. For trucks the equivalent figure is 50%. This helped us save more than €5.5 million since 2010.
  • 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 32% 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 2020 targets. Initiatives include developing lower energy processing techniques, upgrading lighting and lighting control, improving heating and ventilations systems and focusing on better building insulation. In 2017, 21% of the energy in manufacturing came from renewable energy.

We are continuously working to increase our share of renewable energy across the business with the goal to achieve 100% renewable electricity in Oriflame operated buildings by 2020. During 2017, 9% of energy consumption at Oriflame’s operated buildings came from renewable sources. The drop of renewable energy consumption over time is mainly due to the divestment of our Swedish facility which ran primarily on renewable electricity.

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[3] This goal is based on GHG emissions relative to sales from 2010 as our base year.