2021-2022丝芙兰中国可持续发展报告（英）-31页VIP专享VIP免费

下载本文档

阅读 843
格式 pdf
大小 9.82 MB
约31页
2023-05-31
收藏
点赞(0)
海报
举报

2021-2022 Sephora China Sustainability Report

Sephora China’s Sustainability Management Statement

The 2023 Global Risks Report by the World Economic

Forum shows that failure of climate-change mitigation

and adaptation, natural disasters and extreme weather

events, biodiversity loss and ecosystem collapse are

the key challenges worldwide to global sustainable

development over the next decade. Actively seeking

innovative solutions tackling these risks will bring

new momentum to sustainable and healthy global

economic development.

Sustainable development that well balances the

environmental, societal, and economic benefits has

been a consensus and a strategic approach of more

and more enterprises. LVMH Group has unveiled its

new sustainable development strategy, the “LIFE 360”

Program, and charted an ambitious environmental

performance roadmap for 2023, 2026, and 2030 in

such new context. As a member of the LVMH group,

Sephora China has been committed to responding

to China's policy call for high-quality and green

development, actively undertaking the corporate

citizenship responsibilities, and continuously shaping a

green beauty retail and consumption ecosystem, while

tackling all the targets set in “LIFE 360” Program.

The year 2022 marked the 17th year of Sephora’s entry

into the Chinese market, we have built a country

specific sustainable development strategy, aiming

to motivate our business partners and Chinese

consumers to unleash the social value of “Beauty

Power” by leveraging our brand influence. Apart

from accelerating the transformation of our own

sustainable development, we are striving to create a

sustainable ecosystem that helps explore more growth

opportunities for the beauty industry. In addition

to product sales, we engage our suppliers to exert

the “beauty power,” and continuously interact with

our consumers to jointly facilitate the fulfillment of

carbon peaking and neutrality goals, promote the

development of a circular economy and contribute to

various social welfare initiatives. To ensure the efficient

implementation of our sustainability strategy, we have

set up a sustainable development steering committee

that consists of the Sephora senior executives. We

consider sustainable development issues in all major

decision-making and routine management. Along with

the smooth implementation of all targets, we make

sustainable development as an essential value and a

voluntary behavior across the company.

Sephora China is speeding up omnichannel

transformation and innovation by promoting

sustainable product development, store operation,

and supply chain management. We stick to developing

with compliance and make efforts to provide our

employees with quality career development while

guaranteeing their physical and psychological

health. In terms of eco-friendly stores and offices

construction, the office of Sephora headquarters

and the Sanlitun flagship store in Beijing have

both obtained LEED certificates. As of 2022, all 326

stores across Mainland China have switched to LED

energy-saving lamps. Moreover, we are committed

to developing sustainable products and packaging.

Specifically, our Sephora Collection series has adopted

over 90% natural plant extracts. We also encourage

the usage of FSC-certified paper bags and gift boxes.

To boost green logistics, we actively develop a green

and agile supply chain as our core business strategy

and continue to promote low-carbon logistics and

warehousing.

As a leader in sustainable development in the beauty

industry, Sephora China keeps unlocking shared

value and creating long-term value while striving for

a partnership ecosystem with “Beauty Power.” We

collaborate with our suppliers to devise sustainability

strategies and plans and encourage them to perform

social responsibility and improve environmental

performance. As of 2022, 80% of strategic indirect

procurement suppliers of Sephora China have already

received EcoVadis certificates. We support China’s

economic development by providing our local

suppliers with opportunities to earn more while

creating more job opportunities. Currently, 80% of

indirect materials for our stores are purchased from

local suppliers.

We are committed to delivering our consumers the

most unique retail experience, encouraging them to

explore and create their own “Beauty Power” freely

and boldly. As the high-end beauty retailer in China

with full official authorization from brand owners, we

continue to improve consumer protection mechanism

and provide them with quality products and a satisfied

shopping experience. We highly value consumer

opinions, and to this end, we make continuous

efforts to improve their experience and satisfaction

by deploying digital and intelligence technologies.

Furthermore, we take the key strategic move of

“establishing a green consumption ecology” to present

more transparent, sustainable product information

and enable each consumer to share beauty with planet

through makeup consumption. Moreover, we encourage

our consumers to participate in charity programs, such

as “Smile Action,” aiming to convey society’s positive

“Beauty Power.” Upholding the values of diversity and

inclusion, we continuously provide different groups

with a series of sustainable makeup experiences to help

them tap new confidence and allow everyone to have

an opportunity to release “ExtraOrdinary Beauty Power.”

Embracing a new era featuring sustainability, Sephora

China releases a sustainability report for the first

time and launches the sustainable development

goals in China, which defines its strategic roadmap

and timelines for sustainable development in China.

In future, Sephora China will continue to lead the

sustainable development in the beauty industry,

leveraging its omnichannel value chain impact and

working with its consumers and business partners to

build a more diverse and greener future.

Overview 02

01 2021-2022 Sephora China Sustainability Report

/31

下载本文档

文本预览下载提示常见问题

2021-2022SephoraChinaSustainabilityReportSephoraChina’sSustainabilityManagementStatementThe2023GlobalRisksReportbytheWorldEconomicForumshowsthatfailureofclimate-changemitigationandadaptation,naturaldisastersandextremeweatherevents,biodiversitylossandecosystemcollapsearethekeychallengesworldwidetoglobalsustainabledevelopmentoverthenextdecade.Activelyseekinginnovativesolutionstacklingtheseriskswillbringnewmomentumtosustainableandhealthyglobaleconomicdevelopment.Sustainabledevelopmentthatwellbalancestheenvironmental,societal,andeconomicbenefitshasbeenaconsensusandastrategicapproachofmoreandmoreenterprises.LVMHGrouphasunveileditsnewsustainabledevelopmentstrategy,the“LIFE360”Program,andchartedanambitiousenvironmentalperformanceroadmapfor2023,2026,and2030insuchnewcontext.AsamemberoftheLVMHgroup,SephoraChinahasbeencommittedtorespondingtoChina'spolicycallforhigh-qualityandgreendevelopment,activelyundertakingthecorporatecitizenshipresponsibilities,andcontinuouslyshapingagreenbeautyretailandconsumptionecosystem,whiletacklingallthetargetssetin“LIFE360”Program.Theyear2022markedthe17thyearofSephora’sentryintotheChinesemarket,wehavebuiltacountryspecificsustainabledevelopmentstrategy,aimingtomotivateourbusinesspartnersandChineseconsumerstounleashthesocialvalueof“BeautyPower”byleveragingourbrandinfluence.Apartfromacceleratingthetransformationofourownsustainabledevelopment,wearestrivingtocreateasustainableecosystemthathelpsexploremoregrowthopportunitiesforthebeautyindustry.Inadditiontoproductsales,weengageoursupplierstoexertthe“beautypower,”andcontinuouslyinteractwithourconsumerstojointlyfacilitatethefulfillmentofcarbonpeakingandneutralitygoals,promotethedevelopmentofacirculareconomyandcontributetovarioussocialwelfareinitiatives.Toensuretheefficientimplementationofoursustainabilitystrategy,wehavesetupasustainabledevelopmentsteeringcommitteethatconsistsoftheSephoraseniorexecutives.Weconsidersustainabledevelopmentissuesinallmajordecision-makingandroutinemanagement.Alongwiththesmoothimplementationofalltargets,wemakesustainabledevelopmentasanessentialvalueandavoluntarybehavioracrossthecompany.SephoraChinaisspeedingupomnichanneltransformationandinnovationbypromotingsustainableproductdevelopment,storeoperation,andsupplychainmanagement.Westicktodevelopingwithcomplianceandmakeeffortstoprovideouremployeeswithqualitycareerdevelopmentwhileguaranteeingtheirphysicalandpsychologicalhealth.Intermsofeco-friendlystoresandofficesconstruction,theofficeofSephoraheadquartersandtheSanlitunflagshipstoreinBeijinghavebothobtainedLEEDcertificates.Asof2022,all326storesacrossMainlandChinahaveswitchedtoLEDenergy-savinglamps.Moreover,wearecommittedtodevelopingsustainableproductsandpackaging.Specifically,ourSephoraCollectionserieshasadoptedover90%naturalplantextracts.WealsoencouragetheusageofFSC-certifiedpaperbagsandgiftboxes.Toboostgreenlogistics,weactivelydevelopagreenandagilesupplychainasourcorebusinessstrategyandcontinuetopromotelow-carbonlogisticsandwarehousing.Asaleaderinsustainabledevelopmentinthebeautyindustry,SephoraChinakeepsunlockingsharedvalueandcreatinglong-termvaluewhilestrivingforapartnershipecosystemwith“BeautyPower.”Wecollaboratewithoursupplierstodevisesustainabilitystrategiesandplansandencouragethemtoperformsocialresponsibilityandimproveenvironmentalperformance.Asof2022,80%ofstrategicindirectprocurementsuppliersofSephoraChinahavealreadyreceivedEcoVadiscertificates.WesupportChina’seconomicdevelopmentbyprovidingourlocalsupplierswithopportunitiestoearnmorewhilecreatingmorejobopportunities.Currently,80%ofindirectmaterialsforourstoresarepurchasedfromlocalsuppliers.Wearecommittedtodeliveringourconsumersthemostuniqueretailexperience,encouragingthemtoexploreandcreatetheirown“BeautyPower”freelyandboldly.Asthehigh-endbeautyretailerinChinawithfullofficialauthorizationfrombrandowners,wecontinuetoimproveconsumerprotectionmechanismandprovidethemwithqualityproductsandasatisfiedshoppingexperience.Wehighlyvalueconsumeropinions,andtothisend,wemakecontinuouseffortstoimprovetheirexperienceandsatisfactionbydeployingdigitalandintelligencetechnologies.Furthermore,wetakethekeystrategicmoveof“establishingagreenconsumptionecology”topresentmoretransparent,sustainableproductinformationandenableeachconsumertosharebeautywithplanetthroughmakeupconsumption.Moreover,weencourageourconsumerstoparticipateincharityprograms,suchas“SmileAction,”aimingtoconveysociety’spositive“BeautyPower.”Upholdingthevaluesofdiversityandinclusion,wecontinuouslyprovidedifferentgroupswithaseriesofsustainablemakeupexperiencestohelpthemtapnewconfidenceandalloweveryonetohaveanopportunitytorelease“ExtraOrdinaryBeautyPower.”Embracinganewerafeaturingsustainability,SephoraChinareleasesasustainabilityreportforthefirsttimeandlaunchesthesustainabledevelopmentgoalsinChina,whichdefinesitsstrategicroadmapandtimelinesforsustainabledevelopmentinChina.Infuture,SephoraChinawillcontinuetoleadthesustainabledevelopmentinthebeautyindustry,leveragingitsomnichannelvaluechainimpactandworkingwithitsconsumersandbusinesspartnerstobuildamorediverseandgreenerfuture.Overview02012021-2022SephoraChinaSustainabilityReportSephoraChina’ssustainabledevelopmentgoalsCreativeCircularityThecirculareconomyisamajorstrategyandtrendofeconomicandsocialdevelopmentdomesticallyandinternationally.Sephoradrawsonitscreativitytopromotethecircularityofitsproductsandpackaging,encourageeco-design,andconstructaresourcerecyclingsystem.Climatechangeisacriticalchallengethatrequirestoaddressonaglobalscale.Wemustworktogethertolimitglobaltemperaturerisetowellbelow2℃bytheendofthiscentury.Sephorageneratesgreenhousegasemissionsthroughrawmaterialprocurement,packaging,andtransportationofgoods–bothupstreamanddownstream.Ontheotherhand,climatechangeisexpectedtoimposeimmeasurableimpactonSephora.AsLVMHGrouppursuesacarbonreductiontrajectoryinlinewiththeParisAgreement,Sephoraisalsoaddressingclimatechangewithitsownstrengthandimpact.Sephoraleveragesthebrand'sinfluenceandcorecompetenciestodevelopmultifacetedphilanthropicinitiativestoimprovethewell-beingofpeopleinresponsetotheurgentsocialneeds.Wecontinuetomakeapositiveimpactonthecommunitiesinwhichweoperateandengageinbuildingabettersociety.Weviewingredientsourcingandproductlifecycletrackingasourkeyresponsibility.Tothisend,LVMHGroupplanstointroduceaprocurementcertificationpolicyandplayanactivepartacrosstheentiresupplychain.Sephorawillensurethesustainabilityofthesupplychainthroughatransparenttraceabilitysystem.ClimateSocialWelfareTransparencyAsaglobalprestigebeautyretailerofLVMHGroup,Sephoraalwaystakessocialresponsibilityandenvironmentsustainabilityasatoppriorityinitscorporatedevelopmentstrategyandkeepsencouraginggreenmakeupconsumption.Bycontinuouslyopeningupanunlimitedanddiversemakeupenvironment,Sephoraencouragesconsumerstocultivatethebeautypowerandupgradethebeautytoanewlevelandreleasetheirownprivilegedbeautypower.In2021,SephoraChinaincorporated“BeautyPower”initssustainabledevelopmentstrategyaimingtopropelavalue-drivengrowththatbenefitsbothourbusiness,aswellassocietyandecology.BuildingonfourkeyissuesdefinedinLIFE360(LVMHInitiativesfortheEnvironment)Program,theglobalsustainabledevelopmentstrategyofLVMHGroup,andSephoraChina’ssustainabilitygovernancesystem,weadheretooursustainabilityroadmapbymakingjointeffortswithourconsumers,supplychainpartnersandemployees.Wearecommittedtoleadingthehigh-endbeautyretailindustryandcontinuouslyshapingagreenconsumptionecosystemby“DefiningSustainableBeautyfromSephora,”“UnleashingSustainableBeautywithPartners,”and“UnitingSustainableBeautywithConsumers.”Weenvisionasustainableandbetterfuturewithcollectiveefforts.SustainabilitystrategySephora'scommitmenttosustainablebeautyEstablishSephoraasasustainablebrandDriveSephora'ssharedandlong-termvalueExpandSephora'sleadershipandimpactonsustainabilityClimateCreativeCircularityTransparencySocialWelfareKeyFieldsDefiningSustainableBeautyfromSephoraResponsibleGovernanceSustainableSupplyChainBeyondConsumers'ExpectationSustainableOperationBrandPartnersEngagementGreenConsumptionPromotionInnovativeEco-ProductsHealthierIndustryPromotionConsumerEngagementinSocialWelfareUnleashingBeautyPowerwithPartnersEmbracingSustainableBeautywithConsumersStrategicFoundationMaterialIssuesPurpose&ExpectedOutcomesSephoraChina'sSustainabilityGovernanceSystemConsumersSupplyChainPartnersEcosystemPartnersEmployeesTargetStakeholders0304Overview2021-2022SephoraChinaSustainabilityReportSephoraChina’ssustainabledevelopmentgoals1202620301Inthefuture,thesustainabledevelopmentgoalsofSephoraChinawillbeadjustedaccordingtosuchfactorsasprogressandexternalpolicychanges.2Operationsitesincludestores,warehouses,andoffices.3Usingcleanenergy,reducingenergyconsumption,energysavingandothermeasuresintheoperationprocess.4Sephora-ownedbrandsrefertoChaLingandSephoraCollection.5PlasticspackagingthatPetroleum-basedrawmaterialsarenotusedintheproductionprocess.6Packagingmaterialsthatadoptsustainableprinciples(suchasGoldenDesignRuledevelopedbyCGF)orsustainablecertification(suchasFSC,GRS,etc.).75Rprinciplereferstoreduce,reuse,recycle,regenerationandrejection.8Environmentalmanagementsystemcertification(GB/T24001,ISO14001,etc.).9ThestrategicsupplychainreferstotheglobalcooperativesupplychainestablishedbySephoraconsideringitscoredevelopmentstrategyandcompetitiveness.Commitments2023100%ofoperationsites2withfullLEDlightinginstalledParticipateinthe“carboninclusiveness”pilotprogram“SephoraDay”eventobtainsthe“carbonneutrality”certification65%ofthelast-miledeliveryvehiclesuserenewableenergyReducegreenhousegasesfromenergyconsumptionatoperationsitesby50%(baseline2019)100%low-carbonoperationatoperationsites320%increaseinthestoresparticipating“carboninclusiveness”program(baseline2023)20%increasein“carbonneutrality”certifiedevents(baseline2023)75%ofthelast-miledeliveryvehiclesuserenewableenergyReduceand/oravoid55%GHGemissionslinkedtoScope3(rawmaterialsproductionofSephora-ownedbrands4andtransportation)perunitofaddedvalue(baseline2019)100%last-miledeliveryvehiclesusingnewenergyIncreasethenumberofstoresparticipatinginthe“carboninclusiveness”programby50%from202350%increasein“carbonneutrality”certifiedevents(baseline2023)100%FSC-certifiedpackages(includingin-storeandonline)Continuouslypromotetheeco-designofdisplaymaterialsinstores100%zeropetroleum-basedplasticpackaging5forshoppingbagsusedinstores100%sustainablepackaging6inlinewith5Rprinciple7(onlyforSephora-ownedbrands)20%increaseinstoreswhichadopttheeco-designofdisplaymaterials(baseline2023)100%ofnewproductswillbedevelopedwitheco-design(onlyforSephora-ownedbrands)50%increaseinstoreswhichadopttheeco-designofdisplaymaterials(baseline2023)Continuouslydrive100%strategicindirectprocurementsupplierstoreceiveEcoVadiscertificationEnvironmentalmanagementsysteminplaceat100%ofproduction(onlyforSephora-ownedbrands)andlogisticssites850%ofthestrategicsupplychains9aretraceable(onlyforSephora-ownedbrands)100%ofourstrategicsupplychainswillintegratededicatedtraceabilitysystems(onlyforSephora-ownedbrands)0506TransparencyClimateCreativeCircularityOverview2021-2022SephoraChinaSustainabilityReportSephoraChinaishighlyconcernedwiththehealthyandequaldevelopmentofchildrenanddisabledgroupsinChina.Wecontinuetoprovidejobsandadecentplatformfordisabledpeopletodemonstratetheirskillsandpresentequalemploymentopportunitiestocompetenttalents.SephoraChinahasinitiatedthe“SmileAction”programsince2015aimingtoprovideneededhelptochildrensufferingfromacleftliporcleftpalate.Throughtheinitiative,wehelpkidsinChinawithcleftlipandpalate,especiallythosefrompoorandlow-incomefamilies,togetsurgicaltreatment.Sofar,theprogramhasbenefited1,143childrenwithcorrectivesurgery.SephoraChinahasoffereddiversetrainingprogramsfortalentempowermentanddevelopment.WehavelaunchedvocationaleducationandtrainingprogramssuchasSephoraUniversity,establishingdiversifiedcareerdevelopmentpathwaysfortalentsatdifferentlevels.SephoraChinahonorsfemaleempowermentanddevelopment.Wedonottolerateharassmentinanyforminourworkplaces,especiallyharassmentordiscriminationintermsofgender.Asforsuppliermanagement,werequireoursupplierstoobservetheTenPrinciplesoftheUNGlobalCompactandotherinternationalinitiativesandconventions.Besides,SephoraChinahaslaunchedaseriesoffemaledevelopmentandempowermentprograms.Inour“SephoraDay”campaign,femaledevelopmentareacoretopicoftheagendaandhavereceivedwideattentionamongpublic.Our“HERProject”hasdeliveredaseriesofthemedtrainingactivitiestofemaleemployeesinourtwoOEMs(OriginalEquipmentManufacturers)inChinatoenhancetheirwell-beinginworkandlife.UndertheguidanceoftheShanghaiWomen’sFederationandtheShanghaiMunicipalCommissionofCommerce,SephoraChina,togetherwithpartners,hasestablishedtheShanghaiInternationalFashionCapitalWomen’sAssociation,whichservesasaplatformforcooperation,sharing,andnetworkingamongwomenintheindustry.SephoraChinawasawardedthe2020ModelCompanyofWomen’sLeadershipDevelopmentbyEmployerExcellenceChina.SephoraChinaplacesgreatvalueontherecyclingofwaterresourcesandseeswaterconservationasanimportantpartofdailymanagement.Water-savingappliancesareusedinourofficestoreduceindoorwaterconsumption.Westaycommittedtothegreenenergyconceptcenteredonlow-carbonandcircularity.Weconsistentlyrespondtothestate’scallforenergyconservationandour300andmorestoresacrossthecountryhaveallappliedenergy-savingLEDlights.Wesaveenergyinourofficesbypreciselycontrollingindoortemperature,encouragingtosaveelectricityconsumedbyofficeequipmentandfacilities,andothermeasures.Inthemeantime,weencouragelogisticsserviceproviderstoemploytechnologiessuchasnewenergyvehiclestosaveenergyandreduceconsumptioninwarehousing,transportation,distribution,andpackaging.SephoraChinaisdevotedtothesustainabledevelopmentofecology,environment,andclimate.Effortsareputtoestablishenvironmentallyfriendlystoresandofficeenvironmentandreducegarbageandpaperwasteinouroperations.Weintegratethe“greenandsustainable”philosophyintoourdailymanagement,whileconstantlydevelopingclimate-friendlyandenvironment-friendlysolutions,contributingtoenergyconservationandcarbonreductioninallaspects.Packagerecyclingbinsaresetupineachstoretoengageourconsumersingreenconsumption.Weadvocatepaperlessofficesandpaperrecyclingtosaveresourcesatoperationsites.Poweredbyclimate-friendlydigitalmanagementsolutions,werealizedenergyconservationandemissionreductionbymovingdatacenteroncloud.Weworkhardtoensurethatourproductsareeco-friendlythroughoutthelifecycle,strictlycontrolovertheselectionofrawmaterialsandformulas,andinfusetheeco-friendlyconceptintooursourcingandproduction.SephoraChinaisengagedinlocalprocurement,whichnotonlyboostsbusinessdevelopmentbutalsobenefitslocalemployment.WeleverageouradvantagestocontinuouslyempowerChinesebeautybrandsandexpandtheirglobalinfluence,promoteChinesebrandstojoinSephora’sinternationalecosystem.Wevalueandcareaboutthehealthandsafetyofeveryemployeeandprovideasafeworkingenvironment.WehaveintroducedguidelinesincludingtheCodeofConductforEmployeeSafety,toencourageadiverseandinclusivecorporateemploymentcultureandtakeactiveactionstoprotectemployees’privacy.SephoraChinakeepsengagingsuppliersandconsumerstoembracesustainableproductionandconsumptionandpartnerswithstakeholderstomoveforwardforasustainablefuture.Wecherishthepartnerswhosharethesamevaluesandprincipleswithusintermsofethics,socialresponsibility,andenvironmentalprotection,andweurgeallsupplierstoabidebytheConventionsoftheInternationalLaborOrganization,theUnitedNationsGlobalCompact,andtheOECDGuidelinesforMultinationalEnterprises,amongotherprinciplesandguidelines.Wecontinuouslystrengthenthesocialresponsibilityperformanceofoursuppliersandco-developstrategicsustainabilityplanswiththem.WewereawardedtheEcoVadisGoldMedalforCorporateSocialResponsibilityin2019,whichinspired80%ofourstrategicprocurementsupplierstoobtainthesamecertification.Adheringtothe“TrueRetail”philosophy,SephoraChinablendsenvironmentalideasintoitsbrandvalueandproductinnovationandempowersthegreenandsustainabledevelopmentofthebeautyretailindustrybycontinuouslyintroducingandpromotingsustainablecosmetics.SephoraChina’s"BeautyPower"ActionsResponsetoUNSustainableDevelopmentGoalsTheUnitedNationsSustainableDevelopmentGoals(UNSDGs)aimtoprotecttheplanetandimprovethelivesandfutureofhumanitywhilepromotingprosperity.SephoraChinavaluesalltheinitiativesassociatedwiththe17SDGsandhasorganizedandlaunchedanumberofactionsandinitiativeswithsubstantialimpacttogivebacktotheenvironment,society,economy,andourstakeholders.UNSustainableDevelopmentGoals0708Overview2021-2022SephoraChinaSustainabilityReportHighSephoraChinavaluestheexpectationsandopinionsofitsstakeholdersincludingconsumers,businesspartners,employeesatalllevels,suppliersandthegovernment,andmaintainsproactive,effectiveandregularcommunicationwiththemthroughdiversifiedapproachesandchannels.StakeholderengagementConsumers/clientsProductqualityandsafetySustainableproductsandconsumptionResponsiblemarketingPrivacyprotectionanddatasecurityAvarietyofconsumersatisfactionsurveycommunicationOmnichannelfromOnlinetooffline(offlinestore/website/APP/Miniprogram)DiversifiedmediacommunicationWell-establishedcustomerserviceandfeedbackchannelsEmployeesCompliantemploymentEmployeehealthandsafetyFair,diverseandinclusivecorporatecultureTalentdevelopmentandtrainingPrinciples,policies,guidelinesandrulesonhumanresourcesmanagementEmployeecareinitiatives,talenttraininganddevelopmentprograms,employeepersonalinformationandprivacyprotectionassessments,upwardreportingmechanismandwhistleblowingchannelsBusinesspartners/suppliersSustainablesupplychainIntellectualpropertyprotectionSustainableProcurementJointinnovationandsocialvalueco-creationSuppliermanagementandriskassessmentmechanisms,suppliers’codeofconductRoutineprocurement,collaborativeprojectsandjointinitiativesLVMHGroup’sLIFE360programLocalbrandempowermentplanGovernmentBusinessethicsandcompliancemanagementClimatechange,energyconservationandemissionreductionResourcerecyclingCompliantemploymentDevelopmentandpromotionofinternalpolicies,guidelinesandcodeofconductsCollaborativeprojectsandresponsetogoalsdefinedbymacropoliciesParticipationinpolicyproposalsandfeedbackEnvironmentalProtectionSocialWelfareNGOsStrategicpublicwelfareandcharityClimatechange,energyconservationandemissionreductionResourcerecyclingBiodiversityprotectionSocialresponsibilityinvestmentPublicwelfareprojectsandvolunteeractivitiesDailymediacommunicationSocialmediacommunicationInternalpolicies,andsupplierselectionStorelayoutanddesignStakeholdersMaterialissuesCommunicationMaterialityassessmentandstakeholderengagementSephoraChinahasidentified21materialissuesonsustainabledevelopmentuponbenchmarkinganalysisontheexternalenvironment,industrypolicies,andstakeholders’opinionsandexpectations.Followingthat,we’veevaluatedthelevelofsignificancethathowSephoraChinaimpacttheidentifiedissuesandhowsuchissuesimpactSephoraChina’ssustainabledevelopmentbysurveyingbothinternalandexternalstakeholders,aswellasotherinformationcollectingmethods.AnalysisonmaterialissuesIdentificationofMaterialIssuesforSephora’sSustainabilityEconomicperformanceManagementsupportforsustainabledevelopmentBiodiversityprotectionIntellectualpropertyprotectionSustainablesupplychainSustainableProcurementEmployeehealthandsafetyJointinnovationandsocialvalueco-creationResourcerecyclingProductqualityandsafetyPrivacyprotectionanddatasecurityFair,diverseandinclusivecorporatecultureSustainableproductsandconsumptionBusinessethicsandcompliancemanagementResponsiblemarketingClimatechange,energyconservationandemissionreductionCompliantemploymentSocialresponsibilityinvestmentTalentdevelopmentandtrainingStrategicpublicwelfareandcharityGreenstoresSephora’sImpacttoSustainabilityIssuesImpacttoSephora’sSustainableDevelopmentModerateHigh0910Overview2021-2022SephoraChinaSustainabilityReportWeencourageconsumerstouseFSC-certifiedshoppingpaperbagsandreducetheweightofshoppingbagsby10%tosave30tonsofpackingpapereveryyear.Moreover,giftboxesarenotlaminatedandmadeofFSC-certifiedpapertoreducelandfillpollution.Allofourcartonboxesare100%recyclable,containingupto85%ofrecycledpaper.CHALING,aSephora-exclusivebrand,hasbeenworkingcloselywithYunnanTianZiBiodiversityResearchandDevelopmentCentrefor10yearsinthe“TeaForestProgram.”Theyhaveplantedover110,000teatreesand6,000othertreesinthe20-hectareconservationarea.2020Diamondmakeupbrushesledtoa92.8%reductioninplasticpackaging.ThesinglePPmaterialwasusedforthefirsttimeinthepackagesofSephora’shyaluronicacidfacemaskslaunchedinMarch2020.2021SephoraCollection,aSephora-ownedbrand,hasusedmorethan90%naturalplantextracts.AlllocallydevelopedpackingboxeshaveusedFSC-certifiedpaperboardandsoy-basedinkprinting,cuttingVOC(volatileorganiccompound)emissions.Self-lockdesignisappliedtocartons,inreplacementoftraditionalplasticziplock.Thethird-generationsilkfacemaskshavebeenmadeofbiodegradableTencelfibers.LemonSeedBrighteningTone-UpCream,amemberofSephoraCollection’sseedproductlines,hasbeenupgradedbyintroducingEurekalemonsfromLujiangTown,Yunnanprovinceastherawmaterial,andhasbeenpackedwithenvironmentallyfriendlypackages.SinglePPfilmbagshavebeenwidelyappliedinnewlylaunchedmaskproduct.GreenEcologyGreenProductsKeyperformanceoverviewMorethan300storesnationwidearefittedwith100%energy-savingLEDlighting.In2021,wesaved11.16millionkWhofpowerandreducedcarbonemissionsbyabout8,978tonsthroughstoreoperation.Oursecondphaseoflightingreductionandrenovationprojectisexpectedtohelpeachnewstoresave33,000kWhofpowerperyear.Withgreatattentiontotheconservationofwaterresources,weurgeemployeestosavewatereverydayattheofficeandusewater-savingappliancestohelpreduceindoorwaterconsumptionby50%.Aswecontinuetooptimizecartonmaterialsandpackingmethods,oure-commerceshippingpackaginghasbeenreducedby10%inweight.PlasticbubblewraparebeingphasedoutatourfourwarehousesacrossChinasinceNovember2021.Wealsoaimtoincreasethereuserateoflogisticscontainersto80%,whileworkingwithlogisticssupplierstopromoteenvironmentalprotectionandexpandthedistributionareaenabledbygreene-vehicles.Wehavepartneredwithourlogisticspartnertodeployelectricvehiclesforlast-miledeliveryforabout60%ofourstoresnationwide.GreenOfficeGreenSupplyChainGreenPackagingGreenStoresEnvironment1112Overview2021-2022SephoraChinaSustainabilityReportTheLeadershipExcellenceAcceleratingProgramaimstounleashparticipants’leadershippotential,strengthenthetalentpool,andbuildasuccessorarrayforkeypositions.Now36%oftheparticipantshavebeenpromotedafterlessthan10monthsoftraining.LeadershipExcellenceAcceleratingProgramWemakecontinuedeffortstodrivelocalprocurementinChina.Now,around80%ofindirectmaterialsforstoresaresourcedfromChineselocalsuppliers.Furthermore,the“inCHINAforCHINA–C-beautyAccelebrateProgram”welaunchedrecentlyisexpectedtosupport5localbeautybrandswithin3yearsanddevelopthemintopremiumC-beautybrandrepresentativeswithoverRMB100millioninsalesvolume.FacilitatingLocalPartners’DevelopmentWecontinuetoimproveoursuppliers’socialresponsibilityperformance.80%ofourstrategicindirectprocurementsuppliershaveobtainedEcoVadiscertificationandmorethan30suppliershavebeenQIMAcertified.PromotingSuppliers’CSRPerformanceSocietyWepartneredwiththeFutureSmileCharitableFoundationtolaunch“SmileAction”tohelpchildrenwithacleftliporcleftpalate.InSeptember2022,105childrenwerescreenedforcleftlipandpalatesurgeryand63patientsweresuccessfullytreated.Sofar,theprogramhasbenefited1,143childrenwithcorrectivesurgery.WecontinuetodelivertheuniquebeautyshoppingexperiencetoChineseconsumers.Asof2022,thereare326Sephorastoresin90citiesacrossMainlandChina.NumberofStoresBothheadquartersandstoreemployeesarerequiredtoreceiveanti-corruptiontraining.In2021,approximately94%ofemployeesinSephoraChinahavecompletedtheonlineanti-corruptiontraining,asignificantimprovementcomparedwith2020.Anti-corruptionTraining“SmileAction”1314Overview2021-2022SephoraChinaSustainabilityReportRetailexcellenceandcorporateinnovation2020ExcellentIndustrialCasebytheChinaChainStore&FranchiseAssociation(CCFA)Top10BeautyChainsbyBeautyinSightatthe2021ChinaCosmeticsTrendsConferenceAnnualHigh-endBeautyRetailBrandatthe2021JiemianFashionSummitandFashionAwardCeremony2021XinminQualityLifestyleAwardforAnnualHigh-endBeautyRetailerbyXinminCommunityNews14th“GoldenVoiceAward,”theChinaBestCustomerContactCenter(CS)oftheYearAwards,2021AchievementsandhonorsSocialresponsibilities2021GreenEnterpriseAwardattheChinaCSRAnnualForumCorporateSocialResponsibilityAwardatthe2021TheBundForumonInternationalCooperation–InnovativeGovernanceEcovadis2019CSRRatingGoldRetailerwithOutstandingCorporateSocialResponsibilityHonoredbyChinaCosmeticsBlueroseAward2021XinminQualityLifestyleAwardforAnnualSocialResponsibilityEnterprisebyXinminCommunityNews“ThePowerofSmileandBeauty”AwardgrantedbytheFutureSmileCharitableFoundationSelectedasTopCaseinthe40thweekof2020Luxe.CO’sSustainableFashionPowerListSelectedasoneofTop10Casesof“2021ChinaBusinessClimateAction”andpresentedatChinaPavilionduringCOP26UnitedNationsClimateChangeConference2020ModelCompanyofWomen’sLeadershipDevelopment2021ShanghaiAdvancedCompanyCherishingWomen’sLeadership2018-2021AwardforEnergy-savingTechnologyTransformationProjectinHuangpuDistrict2019RemarkableOrganizationforEnergyConservationandEmissionReductioninHuangpuDistrict1516Overview2021-2022SephoraChinaSustainabilityReportDefiningSustainableBeautyfromSephoraDigitalandefficientgovernanceGreenandenvironmentaloperationsBiodiversityprotectionthroughproductinnovationEmployeeempowerment012021-2022SephoraChinaSustainabilityReport19DefiningSustainableBeautyfromSephora20Weworkhardonelectronicfinancialsystemsandintelligentfinancialprocessing.Nowelectronicpayment,review&approvalandfilemanagementarealreadyavailable;andthehighlyintegratedofficeautomationsystemBPM2.0isplannedtogolivein2023,withallaccountingfilesbecomingelectronic.IntelligentfinancialcomplianceDigitalandefficientgovernanceSephoraattachesgreatimportanceonreforminggovernanceandusingdigitalmeanstoimprovegovernanceefficiency.Wetakeanti-corruptioncomplianceactionsacrossLVMHGroupandSephora,protectconsumerprivacy,valueintellectualpropertyprotection,makehumanresourcesmanagementmorepeople-centered,andprioritizeemployeehealthandsafety,aimingtobuildSephoraintoastableandefficientbusinessthatconsistentlycreatessocialvalue.OurLegalandGovernmentalAffairsDepartmenthasintroducedaspecificanti-corruptioncompliancecontrolpolicyandisresponsiblefortrainingemployeesonanti-corruption.Whileabidingbynationallawsandregulations,wehavebeencombiningintelligentandelectronicmanagementwithlegalreviewandcomplianceauditandappliedintelligenttechnologiesinmultiplebusinesses.Comprehensiveanti-corruptioncomplianceTheSephoraChinaAnti-corruptionHandbookhasdetailedtherulesonemployees’whistleblowing,entertainment,gifting,etc.ThroughtheCodeofBusinessConduct,Sephoraseekstosharewithitspartnersasetofcommonrules,practicesandprincipleswithrespecttoethics,socialresponsibilityandenvironmentprotection.Anti-corruptiontrainingisessentialforbothourheadquartersandstoreemployees.In2021,approximately94%ofemployeesinSephoraChinahavecompletedtheonlineanti-corruptiontraining.WearealsoexploringtheintelligentuseofAIinlegalreviewandcomplianceauditandpromotethesharingoflegalandcomplianceknowledgeandresourcesinsideSephora.Anti-corruptioncompliancepolicyIntelligenttechnologyapplicationAnti-corruptionTrainingIn2021,approximately94%ofemployeesinSephoraChinahavecompletedtheonlineanti-corruptiontraining.DefiningSustainableBeautyfromSephora22InnovativeinformationsecurityInformationsecurityhasalwaysbeenourpriority.UndertheSephoraChinaInformationSecurityPlan&Policy,Sephora’sinformationsecurityteamcontrolsinformationsecuritythroughoutthewholeprocessofeachproject,byrunninginformationsecuritytestsfromsupplierintroductionandapplicationsystemdesigntolaunchpreparationandkeysystemoperation.Wereviewthesecurityandprivacyofapplicationsystemseverytwoyears,conductexternalvulnerabilityscanningandpenetrationtestingonaregularbasis,andplacee-commerceAPPsandMiniProgramsundercompliancescanning.Keysystemsandsuppliersarerequiredtogothroughperiodicsecurityauditsandon-siteinspections.Sephorahassetupasecurityoperationcenterthatdetects,analyzesandaddressessecuritythreatsfromnetworks,servers,terminalsinreal-time.Externalthreatintelligenceserviceisalsousedforreal-timemonitoringofvariouscybersecurityrisks.Wesigndatanon-disclosureagreementswithbigdatasuppliersanddevelopersandreviewtheseagreementsannually.AlldeveloperslogintheSephorabigdataplatformfordevelopmentviabastionhostsandkeepoperationlogrecords.Sephoraencryptsandmanagescomputingandstorageofbigdatastrictly.90%solutionsofthebigdatateamuseoriginalcloudproducts,whichrealizesregularsnapshotbackupandfaststorageofdata.Togetthebestoutcomespossible,ourITteamhasintroducedinnovativetechnologiesanddigitalsolutionssuchasPAMplatforms,EDR/NDRsolutions,andendpointencryptionsolutions.Ourcloudplatformissupportedbyremotedisasterrecoveryandothersolutionstoensurethatoperationalmodulesdesignedwithdisasterrecoveryfunctionscanberestoredandresumeoperationwithin4hoursintheeventofanemergency,therebycontributingtosustainablebusinessoperation.Besides,theITteamiscommittedtothedesignandimplementationofnearbydisasterrecoverysolutions.Inordertoraiseemployees’awarenessofinformationsecurity,Sephora’sSecurityDepartmentregularlyeducatesstaffonsecuritybybothonlineandofflinetrainings.Inaddition,Sephoraorganizesasecuritydayforallemployeesannuallytohelpemployeesacquiremoreknowledgeofinformationsecurity.DigitaldisasterrecoverysolutionStafftrainingoninformationsecurityWell-establishedmanagementmechanismEnhancedataprotectionScrupulousprivacyprotectionAttachinggreatimportancetoconsumerprivacyprotection,wehavetakenreasonableandpracticaldatasecurityprotectionmeasuresinlinewithindustrialstandardstokeepandprotectconsumers’personalinformationandpreventpersonalinformationfromunauthorizedaccess,disclosure,use,modification,damageorloss.Whencommunicatinguserinformationtosuppliers,weencryptsuchinformation(viaSFTPandothermeans)toensureinformationsecurity.Besides,weconductregularsecurityassessmentsandreviewsonnetworkdevicesandsecuritydevicesatthesecurityboundary,andregularbugscansatthesystemandcodelevels,fixsecuritybugs,andconfiguratenon-conformingitemsfoundtimely.Werequiresupplierstomaintaindatasecurityprotectioncompetencebycontactsandtechnicalinspections,andtodeleteourconsumerinformationafterterminationofcontracts.SephoraChina’slegalandsecurityteamskeepabreastofmarkettrendsandthelatestlawsandregulations,andseekprofessionaladvicetoupdateourprivacypolicyonaregularbasis.Wekeepconsumers’personalinformationstrictlyconfidentialinaccordancewithnationallawsandregulations,suchasthePersonalInformationProtectionLawofthePeople’sRepublicofChina,andalltheapplicationsoractivitiesthatprocesscustomers’personalinformationaresubjecttodetailedinformationsecurityandprivacyimpactassessment.Furthermore,ourE-commerceDepartmentalsohiresthirdpartiesforregularapplicationcompliancescanningandmakescorrectionsbasedonthescanresultstoensureourpersonalinformationprocessingactivitiesmeetthelatestlawsandregulations.TheSecurityDepartmentisresponsiblefordevelopingstandardproceduresandmechanismsfordatasecurityemergencyresponseandorganizingdrillsperiodically.Weassurecustomerswithasoundconsumerprivacyprotectionsystem.Consumerprivacyprotection90%solutionsofthebigdatateamuseoriginalcloudproducts212021-2022SephoraChinaSustainabilityReport2021-2022SephoraChinaSustainabilityReport23DefiningSustainableBeautyfromSephora24Wefocusonprotectingemployees’personalinformationandprivacy.Theprojectsthatcollectandprocessemployees’personalinformationaresubjecttoregularassessmentsbytheLegalandGovernmentalAffairsDepartment,soastoassureeverySephoraemployee’sprivacysafety.Atthesametime,followinglawsandregulationsontheprotectionofpersonalprivacy,SephoraChinaenforcedtheRightsExerciseProceduresforSephoraEmployeesinearly2021,whichinformsallemployeesoftheirrightsofinquiry,modification,cancellation,anddeletionrelatingtopersonalinformation.Employees’personalinformationcollectionisevaluatedusingtheSephoraEmployee’sConsentFormforPersonalInformationCollection,basedoninformation’susescenarios,purposesofuseandotherdimensions.Employees’expressconsentisaskedthroughinternalelectronicsystems.EmployeeprivacyprotectionWearehighlyconcernedwithemployees’healthandsafety,andseektoprovideasafeworkingenvironment.Tothisend,theAdministrationDepartmenthasintroducedtheCodeofConductforEmployeeSafety,andorganizesregularpreventivemaintenanceforfirefightingequipmentintheofficeaspercurrentnationallawsandregulationsandtechnicalstandardsforfireprotection,aswellastheGB25201-2010MaintenanceManagementforBuildingFireEquipment,toensurealltheon-sitefacilitiesareingoodoperatingcondition.SafeandsecureworkingenvironmentSpecializedintellectualproperty(IP)protectionEfficienthumanresourcesmanagementAttachinggreatimportancetotheprotectionofintellectualpropertyrights,Sephorapracticesmanagementandprotectionofitsintellectualpropertyrightsglobally,suchaspatentapplication,trademarkregistrationandcopyrightregistration.OnceanythirdpartyissuspectedofinfringingonSephora’sintellectualproperty(includingbutnotlimitedtocopyrights,trademarks,patents,anddomainnames),wewillpromptlytakeevidencepreservationmeasuressuchasnotarization.Regardingdigitalmanagement,ourMiniIPEncyclopediaprojectisasuccessfulcombinationofAIandintellectualpropertyprotection.Asapractitionerofomnichannelnewretailbusiness,Sephoraalwaysseestheintroductionandprotectionofbrandsitsprimaryasset.WithaninternaldigitalMiniIPEncyclopedia,wehaveintegratedIPreviewmechanismintothenewproductlaunchprocess,tohelpbusinesslineteamsacrosschannelsandjurisdictionsexpandproductcategoriesandestablishSephora’suniqueadvantagesthatdifferentiateitfromotherbrandsandtraditionalretailers.PatentandIPprotectionmechanismToimprovetheefficiencyofdigitalhumanresourcesmanagement,Sephora’sHumanResourcesDepartmentofficiallydevelopedtheHRBIReportprojectontheDOMOplatformin2020.Byvisualizingdatachangesviaadashboard,theprojectisintendedtoprovideHRandbusinessdepartmentswithinformationonpeopleandoperations,andserveasanaccuratedatabasisforthemanagement’sdecision-makingandstaffplanning.TheHRBIprojectspeedsupthecaptureofbigdatainalldimensions,cutsdataacquisitioncosts,andimprovesdatauseefficiency.Theproject,asasolutionintegratingbusinessdata-basedthinkinganddataprocessingtools,isexpectedtomanageourhumanresourcesinamoreintuitive,instant,efficientandthoroughway.HRBIReportprojectDigitalIPmanagementHRDataAnalyticsPlatformNumberofemployeesHumanResourceROIAttendanceRateAveragehoursoftrainingpercapitaAttendanceHoursTrainingEffectivenessTrainingCostsAttendance-to-OvertimeRatioTrafficpercapitaBonusincentivesStaffingratiosSalespercapitaTurnoverrateDailyreportsMonthlyreportsFirststageSecondstageProductivityAbsenceTrainingTalentForecastPlanningThirdstageSub-dimensionsHQFunctionRetailregions/districts/stores2021-2022SephoraChinaSustainabilityReport25DefiningSustainableBeautyfromSephora26100%ofSephora’s300+storesacrossChinauseenergy-efficientLEDlights.SincetheuseofLEDlightingandhigh-luminous-efficacychips,aswellastheoptimizeduseofair-conditioning,in2021,the300andmorestoresnationwidesaved11.16millionkWhofpowerandreducedcarbonemissionsby8,978tons.Inthesameyear,Sephorakickedoffthesecondphaseoflightingreductionandrenovationproject,whichisexpectedtohelpeachnewstoresave33,000kWhofpowerperyear.Stores’poweruseandbillsarealsotrackedtosupporttheeffectiveanalysisofactualelectricityconsumption.Inaddition,ourTaikooLiSanlitunflagshipstoreinBeijingwhichwasopenedinMay2021hasalsobeenLEEDGoldcertified.Weattachgreatimportancetowaterresourcesavingandencourageemployeestosavewater.Water-savingguidelinesarepostedprominentlyasanapproachofroutinewaterconservationmanagement.Furthermore,ourShanghaiofficeadoptsvariouswater-savingappliances,reducingwaterconsumptionby50%.Wearecommittedtofacilitatingpaperlessoffice,andadvocatingemployeestosavepaperinordertominimizepaperconsumption.Additionally,allpaperusedinourofficeshaspassedFSCcertification.Wehavebeenestablishinggreenstoresthroughupgrade,renovationandeco-design.Packagerecyclingbinsareplacedatstorestoengageconsumersingreenconsumption.Meanwhile,SephorahasreplacedconventionalvisualmerchandisingmaterialswithLEDdigitaldisplaystoreducewasteandincreaseresourceefficiency.Moreenergy-efficientstoresStrengthenedresourcesavingandmanagementMoreefficientuseofresourcesGreenandenvironmentaloperationsSephorainsistsonleadingthefuturewithbeautypowerandmakinggreenasustainableforce.Wearecommittedtobuildingenvironmentallyfriendlystoresandoffices,andreducingwastegenerationandpaperconsumptionbaseonscientificwastedisposal,aspartofourreinforcedenvironmentalprotectionpractices.Climate-friendlinesspervadeseveryareaofourcorporatemanagement.Bydevelopingclimate-friendlysolutions,wepromoteenergy-savingandemission-reductioninanall-roundway.Bydesigningandconstructingnewstoresoffutureconceptinspiredbysustainableandenvironmentalprotectionideas,weinfluenceallemployeeswiththevoluntarycultureof“everyoneisagreenambassador,”andengagethemintheCompany’ssustainabledevelopment.Sephoraplanstosetstrategicgoalsonwastemanagement,greenstoreoperation,andwaterresourceutilizationfromthisyearto2024.EstablishmentofgreenandsustainableoperationsitesWeadvocateenergyconservationinourofficesasaresponsetothenationalcallforenergyconservationandemissionreduction.We’vesetthestandardindoortemperatureinofficesat25±1°C.Furthermore,allofourofficeelectricalappliancesbeartheChinaEnergyLabel-Class1,andourofficefurnitureisGREENGUARDGoldcertified.ShanghaiofficehasobtainedLEEDSilvercertificate(LeadershipinEnergyandEnvironmentalDesign).Low-carbonandenergy-savingpracticesinofficeIn2021,the300andmorestoresnationwidesaved11.16millionkWhofpowerandreducedcarbonemissionsby8,978tons100%ofSephora's300andmorestoresacrossChinauseenergy-efficientLEDlights2021-2022SephoraChinaSustainabilityReport27DefiningSustainableBeautyfromSephora28“GoodFor”sustainablemakeupconceptSephorainsistsontheprincipleofprotectingbiodiversitywhenselectingrawmaterialsforourproducts.Tothisend,Sephorahaslaunchedandcalledonfour“GoodFor”sustainableconceptsglobally,namelyGoodforYou,GoodforRecycling,GoodforVegan,andGoodforABetterPlanet.SephoraChinafollowsthese“GoodFor”sustainableconceptsandencouragessustainableconsumptionandlifestylewhenconsumerspurchasecosmetics.Currently,SephoraChinahasrolledoutmultipleproductscateringtothissustainablebeautyconcept.Amidtheglobaltrendofgreen,circular,andsustainabledevelopment,ournewinitiativeisinlinewithabroaderconcept–“greenfashion”andenhancesSephora’scommitmenttothenaturalenvironmentandsocialresponsibility.GoodForGoodForyouDigitalinfrastructureforenergysavingandefficiencyincreaseWehaveappliedclimate-friendlydigitalmanagementsolutionstosaveenergyandreduceemissionsatdatacenters–anachievementbeyondthecapabilitiesoftraditionalenterprises.Ourdatacenterbusinesshasbeenoperatedonthecloud,wherecloudserviceproviderscanmanageoperationsandmaintenanceviatheirowndatacenters.Serverspoweredbygreentechnologiescanbecomehighlyautomatedandshutdownautomaticallyduringnon-businesshoursoridlehours,thuscuttingpowerconsumption.InMay2021,weopenedtheBeijingSanlitunVirtualStore,whichallowscustomerstobrowseremotelyandshoponthecloudandreducescarbonemissionsfromtravel,aspartofoureffortstofulfillourclimatecommitments.BiodiversityprotectionthroughproductinnovationBiodiversityisoneoftheprioritiesofSephora.Asagreenbeautybrand,Sephorahasalwaysbeenconcernedaboutandcommittedtoprotectingtheenvironmentandresourcesoftheplanet.Keepingthe“TrueRetail”philosophyinmind,weareengagedinomnichannelretailinnovationandsustainableinitiativesandinsistonsustainabledevelopmentfromthesource.Weletenvironmentalfriendlinesspermeatebrandvalueandproductinnovation,leadingtrendsofgreenbeautyintheindustry.IngredientsPackagingSupplyChainMorethan90%greennaturalingredients,noanimaloiladdedRigoroussupplierselectionprocesswithassessmentindicatorsonquality,safety,andsocialperformance;morethan150partnerswithasharedgreenphilosophyMadefromFCS-certifiedforesttreesTheSephoraCollectionappliespackagingthatismadefromrecyclablematerials–whichsaves100metrictonsofplastic–andisprintedwithvegetable-basedinks2021-2022SephoraChinaSustainabilityReport29DefiningSustainableBeautyfromSephora30CorporatecultureSephorahasdeviseda“people-oriented”4CtalentphilosophyEmployeeempowermentAsamemberofLVMHGroup,Sephoraiscommittedtovaluing“people”asitsmostpreciousassetandtrainingtalentsundertheGroup’sconsistentphilosophy–Peoplemakethedifference.Alongitslongjourneyofunleashingbeautypowerfromtheinsideout,SephoraChinacontinuestooptimizeitshumanresourcestructureandemployeetrainingsystem,harnessingitsbeautypowertoreflectthethreecorevaluesthatLVMHupholds–innovation,excellenceandanentrepreneurialspirit.Wehopeallofouremployeeshavethecouragetotrynewthings–despiteoffailure–andgainexperiencethroughfailureinordertogrowfaster.Wefirmlybelievethatcuriositydrivesemployeestokeeppassionateforallthingsandexploremorediversifiedsolutionsandapproachesinthefaceofproblemsandchallenges.Weencourageemployeestoembracechange,ratherthanstandingstill.WebelievethatSephora’semployeesshouldbegoodatteamwork,communicatingandunderstanding.CourageCreativityChangeCohesionSustainableproductdevelopmentItusesmorethan90%naturalplantextracts,andsomeproductcontainersaremadeofdegradableandpollution-freesugarcaneresidues.Since2020,Sephorahasinventedanimmersiveingredientanalysistool–YesList,whichprovidesconsumerswithaone-stoponlineandofflineskincareexperience.Itusesdigitalcontenttofacilitatethehighlyefficientpromotionandsalesofskincareproduct.Thecampaignreceivedover2.2billionexposures.In2022,weofficiallylaunchedYesList3.0,leadingthesustainablebeautytrendamongconsumers.Bornfromanecologicaldream,CHALINGwascreatedin2012byLVMHResearchwiththehopeofguardingteaforestsdeepinYunnan.Withthebrandphilosophy“Beautywithameaning,foryou,forothers,andfortheworld,”CHALINGhopestoshareitssustainableskincarephilosophyof“CHUNCUI”(pureextract)withconsumerswhilepromisingtocommitaportionofitsproceedstotheconservationofteaforestsinYunnan’sJingmaiMountain.CHALINGhasbeenworkingcloselywithYunnanTianZiBiodiversityResearchandDevelopmentCenterfor10years.Theycooperateinplanting20hectaresoftheconservationareainthe“TeaForestProgram,”andinvestpartofthebrand’sproceedsintheconservationofteaforestsinYunnanwhereover110,000teatreesand6,000othertreeshavebeenplantedsince2015.Inthisecosystembuiltbybeautypowerandgoodwill,avarietyoffloraandfaunaflourishbythegraceofnature,bringingrichbiodiversitytothelocalecologyandfulfillingthebrand’ssustainabilityvision.SephoraCollectionTheSephoraYesListTeaGardenProjectbyCHALINGTosafeguardandpromotebiodiversityisthecoreconceptofCHALING.CHALING’sproductsaremadeofnaturalingredientsandusesustainableandtraceablerawmaterialsasapriorityintheirresearchanddevelopment.Atpresent,allofCHALINGproductsusesupto87%naturalingredients,andalltheirmanufacturershaveobtainedHQEandISO14001certificates.CHALINGpursuesminimalharmtotheenvironmentwhendesigningpackagingandworkswithpartnerswithenvironmentalawarenessinthestagesofnewproductdevelopment,materialselection,andproduction.EachrefillablejarofCHALINGismadebyhandinLimoges,France,distinctandcharming.Porcelainismadefromnatural,pollution-freematerials(quartzandkaolin),whichcanberecycledbysuppliersatanytime.Consumerswhochooserefillscanreducetheirenvironmentalimpactby70%comparedtotraditionalpackaging.Inaddition,eachceramicinnercorepurchasedbyconsumerswillcontributetotheecologicalsystemforancienttreesandthebiodiversityofYunnanthroughthe“TeaForestProgram”byCHALINGinYunnan.NaturalandtraceableformulatosafeguardagreenandsustainableworldEco-designedpackagingSephoraCollectionusesmorethan90%naturalplantextractsThecampaignreceivedover2.2billionexposuresOver110,000teatreesand6,000othertreeshavebeenplantedbytheprojectsince2015Consumerswhochooserefillscanreducetheirenvironmentalimpactby70%comparedtotraditionalpackagingAtpresent,allofCHALINGproductsusesupto87%naturalingredients2021-2022SephoraChinaSustainabilityReport31DefiningSustainableBeautyfromSephora32Sephoraprovidesstoreemployeesworkingatthefrontlinewithavarietyofbenefitandcareprograms,includingfull-paidannualleave.Front-lineemployeesareentitledtoriskinsuranceandmedicalinsuranceinadditiontostatutorysocialinsurance,aswellasfull-paidsickleaveandannualphysicalexaminationpackage.Furthermore,storeemployeesalsoenjoydiversifiedandthoughtfulcareprogramsincludingbirthdaygifts,SpringFestivalredenvelopes,andotherfestivebenefits.Benefitsforfront-lineemployeesInclusiveanddiversecorporateculture2020ModelCompanyofWomen’sLeadershipDevelopmentWepursueaninclusiveanddiversecorporateculture.TheCompanycommitsitselftoprovidinganequalworkplaceinwhichallemployeeshaveacommonculturalrecognitionofgenderequality.Weaimforequalopportunitiesandbelieveeveryonedeservestobetreatedwithdignityatwork.Weexpresslyprohibitandnevertoleratesexualharassment,oranyothersortofharassmentordiscriminationbasedongender,race,color,sexualorientation,religion,age,nationality,ancestry,disability,maritalstatus,socialbackgroundorotherrightsprotectedbylaw.Sephorawillenforceazero–tolerancepolicyforanyformofharassment.Sephorawashonoredthe2020ModelCompanyofWomen’sLeadershipDevelopment.TheawardmarkstherecognitionofSephora’sinvestmentandpracticeinsixareasofhumanresourcemanagement,suchastraininganddevelopmentoffemaleemployees’skills,andmanagementpoliciesandinitiativesforgenderdiversityandfemaleleadershipdevelopment.Employeecare“Courage,Change,CreativityandCohesion”isSephora’sbrandDNA,andisreflectedinits“TrueRetail”andomnichannelstrategy.“ReimagineYourFuturewithSephora”isourEmployeeValueProposition(EVP),whichindicatestheexpectationforeveryemployeetobecreative,confidentandtruthful,andpursueextraordinaryandeverlastingbeautyatSephora.ReferringtotheglobalEVPmainframework,SephorahasdetermineditsownEVPframeworkinChina,withBeautyandBeyond,CreativityUnleashed,EndlessEvolution,andBoldlyAuthenticbeingthefourkeypillars.Besides,theframeworkservesasguidanceonemployeeresponsibilities,developmentandexpectations.Sephora’semployeesarerequiredtoinspirethepublic’spotentialbeautypowerandhelpcustomersfindabetterself.Withrespectforthediversifieddevelopmentofemployees,webuildgreatchannelsforemployees’careerdevelopmentandcollaborativelearningandestablishadiversifiedworkplacecenteredonexplorationandinnovation,allowingemployeestoshowtheirindividualityandjoinSephoratocreateamoreharmoniousbeautycommunity.LocalEVPInSephoraAsia,wearedistinguishedbyourentrepreneurialspiritandpassionforomnichannelretailing.Weareuniquebecauseofdiversity,andcanuniteasonetodrivechange.Weconnecteveryoneinthebeautycommunitytolearn,growandcreatebeautypowertogether.BeautyandBeyondCreativityUnleashedEndlessEvolutionBoldlyAuthenticWeestablishacompleteemployeecaresystemtoprotectemployeeseverydayatSephora.TheLVMHHeartFund,animportantpartofthe“SephoraCaresforYou”program,isaglobalemergencyandsupportfundthatoffersanonymous,confidentialandfreeservicestoemployeesindistress.TheFundincludesanEmployeeAssistanceProgram(EAP),whichprovidespsychologicalcounselinganddailyinformationconsultingservicestorelieveemployees’stressandanxiety.LVMHHeartFund2021-2022SephoraChinaSustainabilityReport33DefiningSustainableBeautyfromSephora34SephoraChinaislaunchingtheMerchandisingAcademyprogram.Theprogramissetuponthreepillars:diversifyingtalentpool,enhancingteamwork,andacceleratingcareerdevelopment.Itistoenhancethecapabilitiesofcurrentmembers,andattractandtrainmoredesiredexternaltalents.MerchandisingAcademyDiversifiedtalentdevelopmentpathsWehaveawell-establishedemployeetrainingsystem,includingtheinnovativeSephoraUniversitythatservesastheunderlyingfoundationforinternaltraining.SephoraUniversityisbuiltontheCompany’sstrategicplanning,togetherwithdepartments’businessneedsandemployees’personaldevelopmentexpectations.Itencompassesacoordinatedannualtrainingplanandacompletesetoftrainingprogramsandcoursessuchason-boardtraining,managementtraining,leadershipenhancement,skillsdevelopment,producttrainingandsalesservicetrainingtosupportboththepersonalgrowthofemployeesandthesustainablegrowthofSephora.“SephoraUniversity”Wehavelaunchedawiderangeofprogramsfortalentdevelopmentandcompetenceenhancement.Theprogramaimstoreleasetheleadershippotentialofparticipants,expandSephora’stalentpoolandbuildarobustteamofsuccessorsforkeypositions.Theprogramlastsforoneyear.Itisdesignedforselectedhigh-potentialtalentfromeachdepartment,whowillbegreatlyimprovedinleadingbusiness,himself/herselfandpersonnelthroughstrategicprojectdesign,internalandexternalexpertmentorship,andselectedcourses.TheLeadershipExcellenceAcceleratingProgramrepresentsacombinationofinnovationstofacilitatetalentstodevelop.Apartfromcapabilitydevelopment,theprogramfocusesmoreonmentalmaturity,strengthandresilience.Now36%ofprogramparticipantshavebeenpromotedafterlessthan10monthsoftraining.LeadershipExcellenceAcceleratingProgramTalenttraininganddevelopmentprogramsNow36%ofprogramparticipantshavebeenpromotedafterlessthan10monthsoftrainingTheFLAME-RetailTalentAcceleratingProgram,whichrolledoutinDecember2020,aimstohelphigh-potentialfront-linemanagersimproveleadershipandembracecareerdevelopmentatafasterpace,andhelptraineesimprovetheircomprehensiveleadership.Theestablishmentandcontinuousimprovementofretailtalentdevelopmentchannelsisatthecenteroftheprogram.Withreferencetohigh-prioritybusinessneeds,itisintendedtospeedupthegrowthofhigh-potentialtalentthroughsystematicon-the-joblearningplans,effectivelyadaptingpersonneldevelopmenttotheever-expandingretaillandscapeandever-changingbusinessrequirements.FLAME-RetailTalentAcceleratingProgramResponsiblesupplychainCircularityinsupplychainComprehensivelow-carbontransformationofthesupplychainPromotingecologicalprotectionandsustainabledevelopmentFosteramorediversifiedandinclusiveindustrialenvironmentUnleashingSustainableBeautywithPartners0237UnleashingSustainableBeautywithPartners382021-2022SephoraChinaSustainabilityReportSuppliers’socialresponsibilityAsamemberofLVMHGroup,SephorafollowsthepracticesofLVMHandattachesgreatimportancetoensuringthatitselfanditspartnersshareasetofcommonvaluesandprincipleswithrespecttoethics,socialresponsibilityandenvironmentalprotection.SephoraurgesitsbusinesspartnerstocomplywiththecorporatecodeofconductasadvocatedandstipulatedintheConventionsoftheInternationalLabourOrganization,theUniversalDeclarationofHumanRights,theTenPrinciplesoftheUNGlobalCompact,andtheOECDGuidelinesforMultinationalEnterprises.Also,werequirealloursuppliersandtheiremployees,productionfacilities,subcontractorsandtheirrespectiveproviderstostrictlyabidebythesestandards.Thisincludes:Prohibitionofchildlaborandforcedlabor,withlaws,regulationsandprinciplesrelatingtotheemploymentofminors(aged16-18)introducedtothird-partylogisticswarehousesProhibitionofharassmentandabuse:Oursuppliersmaynottolerateorengageinanyformofphysical,sexual,verbalorpsychologicalharassmentoranyotherkindofabuseProhibitionofdiscrimination:Oursuppliersmaynotengageinanykindofdiscrimination–inparticularwithregardstowages,hiring,accesstotraining,promotion,maternityprotectionanddismissal–basedonsex,religion,age,disability,politicalaffiliation,nationality,orothersEnsuringhealthandsafety:Oursuppliersareexpectedtoprovidetheirworkerswithasafeandhealthyworkplaceenvironmentandsetupproceduresandtrainingstodetect,avoidandmitigateasmuchaspossibleanyhazardsthatconstitutearisktothehealth,hygieneandsafetyofstaffEnsuringworkinghoursandfreedomofassociationEncouraginginitiativesbyoursupplierstoreducetheenvironmentalimpactoftheiractivities,notablybytheuseofgreentechnologiesRequiringthatoursuppliersrespectlocalandinternationalenvironmentalregulationsandstandards,andthattheyobtainallrequisiteenvironmentalpermitsRequiringthatoursuppliersbeabletoproveeffectiveimplementationofthefollowing:applicationofanenvironmentalmanagementsystem,improvementsintheenvironmentalperformanceoftheirsitesandproductionresources,measurestopreservebiodiversity,andensurethatstaffwhoseworkhasdirectenvironmentalimpactaretrainedandhavetheskillsandresourcesrequiredtoeffectivelyperformtheirworkProhibitionofallformsofcorruptionRespectofcompetitionConfidentialityandprotectionofpersonalinformationCustomsandsecurityauthorities:Werequireoursupplierstocomplywithapplicablecustomslaws,includingthoserelatingtoimportsandthebanontransshipmentofmerchandisetotheimportingcountryInformationtransparency:Oursuppliersarerequiredtoprovideclearandaccurateinformationregardingthemethodsandresourcesused,productionsitesandcharacteristicsoftheproductsorservicessupplied,andtorefrainfrommakinganymisleadingclaimsSupplierCodeofConductSocialResponsibilityEnvironmentalProtectionBusinessIntegritySephoranotonlyfulfillsitscorporatesocialresponsibilitywithitsownactions,butalsocollaborateswithitspartnersonasustainablesupplychain.Ourpartnerbrands,packagingandlogisticsservicessuppliersabidebyLVMH’scodeofbusinessconductandarecommittedtoenvironmentalandsocialresponsibilitythroughoutthevaluechain.ResponsiblesupplychainEfficientandresilientsupplychainmanagementSephorapartneredwithbrandsuppliersbothupstreamanddownstreamonbusinessforecasts.Thebeautymarketisexperiencingdramaticchanges,whichrequestsagileresponsesfromtheupstreamanddownstreamofthesupplychain.Whilecontrollingcashflowandacceleratinginventoryflow,itisalsonecessarytoplanscientificinventorystrategiesinadvance.Therefore,whenworkingwithourkeybrandpartners,we’vestrengthenedend-to-endcollaborationandinformationsharingalongthesupplychain,andgeneratedmediumandlong-termforecastsforkeyproducts.TheaimistodrawmoreglobalresourcesandproductstotheChinesemarket,soastobettermeetlocalneedsandprovidelocalstoresandcustomerswithafasterproductdeliveryexperience.In2021,Sephoraassistedsuppliersindevelopinganintelligentdistributionsystem,whichbuildsfeaturemodelsthroughAItoimproveforecastaccuracy,ensureastableinventoryrateinstores,andreduceinvalidinventory,therebyimprovingtheoverallmanagementefficiencyandperformanceofthesupplychain.Sephora’sRetail,E-commerceandITdepartmentshaveworkedtogethertodraftaSupplyChainBusinessContinuityPlan,whichprovidesamechanismforwarehousing,transport,andcross-departmentcoordinationinemergencies.Weensureclearly-definedresponsibilitiesandemergencyresponseproceduresareinplaceineverydepartmentorteam.SupplychainefficiencyboostedbydigitalmeansCompletesupplychainemergencyresponsemechanism39UnleashingSustainableBeautywithPartners402021-2022SephoraChinaSustainabilityReportCircularityinsupplychainCircularlogisticsInactiveresponsetoLVMH’ssustainabledevelopmentinitiative–LIFE360program,Sephorahasidentifiedestablishingagreenandagilesupplychainasitsstrategy,andworkswithlogisticssuppliersonenvironmentalprotectionpractices.SephorahasjoinedinSFExpress,JDandotherlogisticssupplierstofulfilllowcarbon,environmentalprotection,energysavingandconsumptionreductioninthewholeprocessfromwarehousing,transport,todistributionandpackaging.Paperlessoperations,newenergyvehicles,andin-warehousecircularpackagingarepromotedintheprojecttodelivergreenandenvironmentallyfriendlyone-stopservicesrelyingontechnology.Sephorae-commerceshippingcartonshavebeenreducedby10%inweight.PlasticbubblewrapisbeingphasedoutatourfourwarehousesacrossChinabeginninginNovember2021.Recyclablekraftpaperwillbeusedine-commercepackagingasanalternative.Toreduceplasticconsumption,plasticpackagingfillersarenolongerusedforthedeliveryofsuppliestostores–insteadacardboardstructureisemployedtoholdthepartstobetransported.Recyclablecartonsareusedfore-commercepackaging.Processfortherecoveryofpackagingfillersisinplace:Fillersusedforpackagingandshippingarereturnedtowarehousesbystoreemployeestogetherwiththeproductstobereturned,forrepeateduse.Thestoragecarriersforlogisticsusesuchascontainersarerecycledandreused.Sephoraaimsforan80%reuserateoflogisticscontainersinthefuture.PackagingmaterialreductionPackagingmaterialsubstitutionPackagingmaterialrecyclingSephorawasawardedtheEcoVadisGoldMedalforCorporateSocialResponsibilityin2019.Meanwhile,wehavecontinuedwiththesocialandenvironmentalperformanceassessmentonoursupplychainpartnersandplanedsustainablestrategiestogetherwithsupplierstodrivethesustainabilityoftheentirebeautyretailindustry.Sephorahassetcriteriaforsuppliers’environmentalcomplianceandsocialimpact,andreviewssuppliers’environmentalimpactusingonlineandofflineaudittoolssuchasEcoVadisandQIMAforthepurposeofresponsibleprocurement.Ontheotherhand,werequiresupplierstospecifythebrandsandspecificationsoftheirmaterialstoensure100%ingredienttraceability.Scoresonsustainableinnovationcapacity,environmentalmanagement,andconcernwithsocialissueshavebeenincorporatedintothenewsuppliers’scoringandassessmentsystem.IfanycontractedsupplierfailstomeettheenvironmentalandsocialstandardsstipulatedbyEcoVadisandQIMA(failstoreachthepassingscore),itwillberequiredtotakeactionwithina6-monthrectificationperiodafternotification,andthecooperationwillbeterminatedifitfailstopassthesecondaudit;newsuppliersmustpassatleasttheEcoVadisassessmentbeforeintroduction.Sephorapromotesthesocialresponsibilityperformanceofitssuppliers.Now,Sephorahashelped80%strategicindirectprocurementsuppliersobtainEcoVadiscertificatesandwilldriveallitsstrategicindirectprocurementsupplierstopassEcoVadiscertificationby2023.Besides,30suppliershavebeencertifiedbyQIMAintermsofqualitycontrolandcompliance,whichsupportsSephoratopromotesustainableactionsofitspartneredbrands.Whensigningannualsupplierframeworkcontracts,weseektoestablishabeneficialsuppliersystemthatallocatesbusinessopportunitiesbyproportion.Atthetimeofcontractrenewalinfollowingyears,wewillselectandawardstrategicsupplierswithoutstandingenvironmentalprotectionperformance,increasetheirshareincontract,orrecommendthemasLVMH’ssourcesuppliers.Throughaseriesofmanagementandincentivemeasures,Sephoramotivatessupplierstotakeonsocialresponsibilitiesandimplementthesustainabledevelopmentstrategyofthesupplychain.SephoraisengagedinlocalprocurementinChinabycontinuouslydrivingsupplierstodevelop,whichnotonlyincreasestheirrevenue,butalsobenefitslocalemployment.Bynow,about80%indirectmaterialsforstoresarepurchasedfromlocalsuppliers.Suppliers’socialandenvironmentalriskassessmentandmanagementLocalProcurementNow,Sephorahashelped80%strategicindirectprocurementsuppliersobtainEcoVadiscertificatesBynow,about80%indirectmaterialsforstoresarepurchasedfromlocalsuppliers30suppliershavebeencertifiedbyQIMAintermsofqualitycontrolandcomplianceSephorawilldrive100%itsstrategicindirectprocurementsupplierstopassEcoVadiscertificationby202341UnleashingSustainableBeautywithPartners422021-2022SephoraChinaSustainabilityReportChinaannouncedattheendof2020itsobjectivetoreachCO2emissionspeakbefore2030andachievecarbonneutralitybefore2060.Accordingly,Sephorahastakenactiveactionstoreinforceemissionreductionsintheupstreamanddownstreamofitssupplychainanddrivevaluechainpartnersforthefulfillmentoftheglobalscope3emissionreductiontargetsby2030.Ouroverarchingstrategyistobuildagreenandagilesupplychainandfacilitateemissionreductionbyupstreamanddownstreamenterprises.Comprehensivelow-carbontransformationofthesupplychainLow-carbontransportLow-carbonwarehousingSephoracontinuestopartnerwithlogisticssupplierstopromotetheuseofnewenergyvehicles.Asofnow,nearly190Sephora'sstoreshavestartedusingnewenergyvehiclesfordelivery.Wehavepartneredwithourlogisticspartnertodeployelectricvehiclesforlast-miledeliveryforabout60%ofourstoresnationwide.Wewillcontinuetoexpandthedistributionrangeofgreene-vehicles.MilkRunisappliedtomaximizetheutilizationofresourcesinsomecitiesthatusenewenergyvehicles,suchasShanghaiandBeijing.Wepledgeto100%useofLEDlightinginwarehouses.Wepromisetouse100%environmentallyfriendlymaterialsinnewwarehouseconstruction,andprioritizeenergysaving,emissionreduction,andgreen&sustainabilityinarchitecturaldesign.OurnewwarehouseprojectinChengduhasachievedLEEDInteriorDesignandConstruction(ID+C)SilvercertificationinNovember2022.Sephoraiscommittedtolow-carbonandsustainablewarehousing.SustainablepackagingWeencourageconsumerstouseFSC-certifiedpapershoppingbagsmadeof100%eco-friendlymaterials.Withoutcompromisingpackagingperformance,lighterandthinnerpaperisusedtoreducetheweightofshoppingbagsby10%andsave30tonsofpackingpapereveryyear.GiftboxesaremadeofFSC-certifiedpaperaswell,withthelaminatingprocesscancelledstartingfromOctober2020.Allofourcartonboxesare100%recyclable,containingupto85%ofrecycledpaper.Sephora-ownedbrand–TheSephoraCollection–featurescontainersmadefromrecyclablematerials:somecontainersaremadefrombiologicplasticsandrenewableplastics,andfacialcleansers’bottlesaremadeofrecycledplastic.Bytheendof2020,Sephorahadreduced100metrictonsofplasticuse.UseofFSC-certifiedeco-friendlyshoppingbagsInnovationinsustainablecontainersWastedisposalSephorausesOIMS(orderinventorymanagementsystem)forproducts’lifecyclecontrolbeginningfromsupplierprocurement.Wasteisminimizedfromthesource,throughprocesscontroloverproductsindifferentbatches.Forexpiredanddamagedgoods,Sephorawillapplyforapprovalandoperatescrappingaccordingtotherelevantprocess.Alltheexpiredanddamagedgoods,whichare,uponapproval,deliveredtoqualifiedcompaniesforharmlessdisposal,includingcrushing,incinerationandlandfill.WiththelaminatingprocesscancelledstartingfromOctober2020Allofourcartonboxesare100%recyclable,containingupto85%ofrecycledpaperLighterandthinnerpaperisusedtoreducetheweightofshoppingbagsby10%andsave30tonsofpackingpapereveryyearFSC-certifiedpapershoppingbagsaremadeof100%eco-friendlymaterialsWepromisetouse100%environmentallyfriendlymaterialsinnewwarehouseconstructionWepledgeto100%useofLEDlightinginwarehousesNearly190Sephora'sstoreshavestartedusingnewenergyvehiclesfordeliveryWehavedeployedelectricvehiclesforlast-miledeliveryforabout60%ofourstores.Facts&FiguresIn2020,ourdiamondmakeupbrushesledtoa92.8%reductioninplasticpackaging.Since2021,thethird-generationsilkfacemaskshavebeenmadeofbiodegradabletencelfibers.Since2021,LemonSeedBrighteningTone-UpCream,amemberofSephora’sseedproductlines,hasbeenupgradedbyintroducingEurekalemonsfromLujiangTown,Yunnanprovinceastherawmaterial,andhasbeenpackedwithenvironmentallyfriendlypackages.Since2021,singlePPfilmbagshavebeenwidelyappliedinnewlylaunchedmaskproducts.Since2022,packingcontainerswillusemorePCRmaterials.ThesinglePPmaterialwasusedforthefirsttimeinthepackagesofSephora’shyaluronicacidfacemaskslaunchedinMarch2020.In2021,thepackingboxesofalllocally-developedproductshaveusedFSC-certifiedpaperboardandsoy-basedinkprinting,reducingVOC(volatileorganiccompound)emissions.In2021,self-lockdesignisappliedtocartons,inreplacementoftraditionalplasticZiplock.43UnleashingSustainableBeautywithPartners442021-2022SephoraChinaSustainabilityReportSephoraiscommittedtoitsvaluesofdiversityandinclusion.Incollaborationwithsuppliersandindustrypartners,wearealwaysconcernedwiththehealthandwelfareoffemalesandaredevotedtoevolvingthebeautyindustrythroughdiversityandinclusioninitiatives.MoredevelopmentpossibilitiesforfemalesSephorastrivesforgenderequalityandoffersspecialcareforfemaleemployeesinitssupplychain.WehaveworkedwiththeBusinessforSocialResponsibility(BSR),aninternationallyrenownednon-profitorganization,tolaunchtheHERProject.Asaneducationalproject,itaimstobetterthelifeofAsianfemaleemployeesbyprovidingwomenfromruralareaswithlifeguidanceandaccesstokeyhealthknowledge.Initiatedin2019,theprojectorganizedaseriesofthemedtrainingforfemaleworkersinourtwoOEMsinChinafrom2019to2021toenhancewomen’spersonalhealthmanagementabilityandimproveworkingenvironmentinfactories.Dealingwithtopicssuchasfemalereproductivehealth,breastself-exam,dailyexpressionatwork,andfamilyfinancialmanagement,thetrainingisdesignedtoimprovefemaleemployees’reproductivehealth,dailyinterpersonalcommunicationandexpressionskills,andoverallwellbeingatworkandinlife.UndertheguidanceoftheShanghaiWomen’sFederationandtheShanghaiMunicipalCommissionofCommerce,we,togetherwithpartners,haveestablishedtheShanghaiInternationalFashionCapitalWomen’sAssociation,whichservesasaplatformfornetworking,communication,sharingandcooperationamongwomeninthefashionindustry.Itisalsoexpectedthattheplatformcouldincubatesomebrandsdrivenby“HerPower.”TheAssociationhasgivenbetterplaytotheroleoffemaleexecutivesinShanghai’sfashionindustryandbroughtwomen’spowertogether.HER(HealthEnablesReturns)ProjectShanghaiInternationalFashionCapitalWomen’sAssociationOverthepastthreeyears,wehaveinsistedonpromotinggreenproductswithsustainableingredients,andledothereco-friendlybrandstopromoteenvironmentalprotectionandsustainabledevelopmentinanall-roundmanner.Byworkingwithpartnerstobuildupasound,greenbeautyconsumptionecology,Sephoraplaysuptoitsroleasapioneerinthehigh-endbeautysector,tocontinuouslyfocusonsustainabilityissuesintheindustryandfulfillitsBeautyPowerCommitmentsundertheGroup’sLIFE360initiative.InadditiontoCHALINGandSephoraCollectionasSephoraownedexclusivebrands,manybrandsatSephoraareactivelycommittedtosustainabledevelopment.In2022,weintroducedtheYes!WeCareprogramandcollaboratedwithmanybrandsthatupholdtheconceptofenvironmentalfriendlinesstoimplementsocialresponsibilitybyadheringtotheprinciplesofsustainabilityinvariousaspects,suchasrawmaterialssourcing,production,andpackaging,etc.Together,westrivetobuildasustainableecosystemofbeautyproductsthroughpracticalactions.PromotingecologicalprotectionandsustainabledevelopmentTheSephoraXYUMEEexclusivelimited-editionlipstickandhighlighterarewrappedineco-friendlymicrofiberleathermadeofhigh-techmaterialWessex-Suede.Thisbiopolymermicrofiberleathermaterialisconvertedfromrecycledproducts,makingitgreen,friendly,100%recyclableanddegradable.ThefirstclassicperfumeintroducedbyMCM–Sephora’spartner–contains77%ofbiodegradableingredients.87%oftheproductisformulatedbygreenchemicalmoleculesand50%oftheingredientsaresourcedfromFirmenich’sNaturalsTogetherproject,asapartofMCM’seffortstoseekenvironmentallyfriendlyandsustainableingredientsfromfarmsaroundtheworld.ANChasselected100%naturalingredientsandfibers,aswellaspackagingmaterialsforSephoraVitafacialmasks.Theskincareingredientsare100%pureorganic,andthemaskismadeofrubberfiber,whichcandegradenaturallyafteruse.Theouterpackingcartoncomprises40%sugarcanestalksinplaceofpulptoreducetreedevelopmentanduse.TheiconicalgaeingredientsdevelopedbyAlgenistinlaboratoriesnotonlyprovidethesubstancesneededbyproductsbutalsomitigatepollutionanddamagetotheoceanandtheenvironment.YUMEEMCMEaudeParfumSephorasleepingmaskdesignedbyANCAlgenistEmpowerLocalbrandpartnersforcontinuedgrowthWeputcontinuedandstrengthenedeffortstoincubateChineseindigenousbeautybrands.InordertopresentthefreshachievementsofChinesecosmetictotherestofworld,Sephorarecentlyannouncedits“inCHINAforCHINA–C-beautyAccelebrateProgram.”Itisexpectedtosupport5localbeautybrandswithin3yearsandhelpthemdevelopintopremiumC-beautybrandrepresentativeswithoverRMB100millioninsalesvolume.SephorawillfacilitatethesebrandstoaccessinternationalretailmarketsandshowthestrengthofChinesecosmeticsbyitspowerfulglobalnetwork,loyalcommunitiesandrichexperienceinhigh-endretailing.Thisplanisexpectedtosupport5localbeautybrandswithin3yearsFosteramorediversifiedandinclusiveindustrialenvironment03EmbracingSustainableBeautywithConsumersProtectingconsumers’rightsandinterestsJoininghandswiththepublicforagreenlifeTappingintothebeautypowerofall47EmbracingSustainableBeautywithConsumers482021-2022SephoraChinaSustainabilityReportCustomerfeedbackWevalueconsumerinsightsandfeedbackandworkhardtoimproveconsumersatisfaction.Ourcloudplatformisdedicatedtogainingconsumerinsights,usingcloudtechnologiestoimproveconsumerexperienceandempowerbusinessinnovation.Intermsofcomplaintchannels,weprovidecustomerswithmultiplechannelsandestablishtheStandardOperatingProcedureforcomplaintresponseinstores.Besides,withthe360consumersatisfactionsurveyprogram,wemaketimelyanalysisandimprovementaccordingtocustomerfeedback.Bydoingso,weseektocontinuouslyimprovecustomerservicesandenhancecustomerexperience.Intermsofrulesforproductexchange,returnandrecall,Sephorahasexplicitreturnandexchangerules,andprovidesconsumerswithreturnandexchangeservicenolessthanthatstipulatedinnationallawsandregulations.What’smore,SephoraChinarecallsproductsinvolvedactivelyfollowingtheProductWithdrawalorRecallProcedure,andtakesmeasuressuchasdestroyingtheproductsinvolvedorreturningthem.In2021,0.02%ofproductswerevoluntarilyrecalledduetosafetyandhealthreasons.Complaintchannels,andrulesforproductexchange,returnandrecallProtectingconsumers’rightsandinterestsPremiumbeautyservicesSephoraisabeautypowercommunitybelovedbyconsumersallaroundtheworld.Throughournetworkof324storesin90citiesacrossChina,wearedeterminedtoprovideChineseconsumerswiththemostuniquemakeupshoppingexperience,andinspirethemtofreelyandfearlesslyexploreandcreatetheirownbeauty.Sephoraisproudtobethehigh-endbeautyretailerinChinathatis100%authorizedbybrandownersandpromises100%oftheproductssoldaregenuine.Webaseouroperationsonqualityproducts,andalsousetechnologicalinnovationandstoreupgradestoprovidecustomerswiththebestpossibleservices.WebringintriguingproductexperiencestoconsumersinafastandaccuratemannerthroughinnovativedigitaldevicessuchasourFragranceStudio,VirtualArtist,andFoundationFinder.InMay2021,ourSanlitunTaikooLiflagshipstoreinBeijingwasopened.TheVRstoretourandexperienceofthestoreisavailableonSephoraWeChatMiniProgramandAPP,wherecustomersareallowedtoenjoy24-hourshopping.Inaddition,viatheSephoraWeChatMiniProgram,consumersmaymakeappointmentsfora15-minuteBeautyPlaymakeupserviceatourofflinestoresnationwide.InselectedstoresinShanghai,Beijing,Guangzhou,Shenzhen,Hangzhou,Wuhan,Xi’an,Chongqing,andotherlocations,Sephora’sbeautyadvisorsarereadytodesigncompletemakeuplooksforyoutoshowyourbeautyonoccasionsofcommuting,datingandpartying.Moreover,someofourstoresprovideservicessuchasMini-Facial,BenefitBrowBar,CHALINGhandtreatmentandHairBarhairscalptreatment.Atproductdevelopmentstage,wecontrolformulasstrictly,andverifyproductsafety,qualityandefficacythroughaseriesoftestssuchasstabilityandcompatibilitytests,heavymetalandrisksubstancetests,preservativechallengetests,skin/eyeirritationtests,andefficacytests,soastoprovideconsumerswithhigh-qualityproducts.Commitmentto100%genuineproductsInnovationinbeautyserviceexperienceProductsafetyIn2021,0.02%ofproductswerevoluntarilyrecalledduetosafetyandhealthreasons49EmbracingSustainableBeautywithConsumers502021-2022SephoraChinaSustainabilityReportTappingintothebeautypowerofallSephoraaspirestotapintoeveryone’sbeautypowerandchampions“BeautyPower.”Throughpublicwelfareactivities,wehopetohelpconsumersuncovertheirownbeauty,andmultiplythepossibilitiesofbeauty.Children’shealthygrowthSince2015,wehavepartneredwiththeFutureSmileCharitableFoundationtolaunchtheSmileAction,whichhasnowleftfootprintinmanyregionsofChina.OnSeptember1,2022,theprogramvisitedZunyi,Guizhou.Inthe6-dayjourney,6SilkVolunteersand2volunteers'familymembersdeliveredcareandmedicalassistanceto105childrenandtheirfamilies.Finally,63kidswithacleftlipregainedbeautifulandinnocentsmilesthroughcorrectivetreatments.BesidesregisteringonlinefortheSmileActionandothervoluntaryactivities,ourBeautyPassmemberscanalsodonatecreditpointstopublicwelfareundertakingsviaSephoraonlinechannels.SephorawillcontributeRMB100forevery5,000pointsdonated.Uptonow,nearly120,000membershaveparticipatedintheactivity,withmorethan20millionpointsdonated.Sofar,theprogramhasbenefited1,143childrenwithcorrectivesurgery.JoininghandswiththepublicforagreenlifeEncouraginggreenconsumptionPlant-basedafternoonteaSephorastayscommittedtoexpandingitssustainabilityimpact.In2021,wejoinedthespecialcommitteeforsustainablefashionandlifestyleoftheChinaInternationalImportExpo,callingforamoresustainablelifestylewithmanyothermembers.Throughavarietyofinitiativesincludingincreasinggreenproducts,providinggreenservicesandinnovatinggreenpackaging,wehopetojoinhandswithconsumerstoengageingreenconsumptionandrelievetheburdenontheplanet.Atthe26thUNClimateChangeConference,Sephora,astheonlyhigh-endbeautyretailernamedtothelistof10CasesofChinaBusinessClimateAction,followsLVMH’sLIFE360initiativetomakeactiveandongoingeffortstoimplementenvironmentalprotectionandsustainablestrategies,buildrobustgreenconsumptionecologyandexpandtheindustry’ssustainabilityinfluencewithpracticalactions.GuestsareinvitedtoenjoyagreenluxuryexperiencebygrowingplantsinCHALING’semptyjarsandpreparingplant-basedafternoonteawithJamiePEA,aMichelin-starredchefintheUK.Uptonow,nearly120,000membershaveparticipatedintheactivity,withmorethan20millionpointsdonated1,143childrenhavebeenbenefitedwithsurgeries51ReportProfile522021-2022SephoraChinaSustainabilityReportCategory/ItemIndicatorsQuantityUnitTotalExpenditureofSustainableDevelopmentTotalexpenditureofsustainabledevelopmentin20211230,475,000YuanContributiontoLocalEconomicDevelopmentTotalnumberofemployeesin20224,527/ProportionoflocalChinesesuppliersprovidingindirectmaterialsforstores80%BeautyPowerCommunityNumberofstoresnationwide326/Numberofcitieswherestoresareestablished90/PersonneltrainingProportionofpromptedemployeeswhoparticipatedintheLeadershipExcellenceAcceleratingProgramin202036%2021Numberoftraineesinanti-corruptiontraining5,000+/Completionrateofanti-corruptiontraining94%HerProjectNumberofservicesuppliers2/Averageattendancerateofactivitiesin202098.2%Averageattendancerateofactivitiesin202199.4%SmileActionNumberofcities9/Childpatientsreceivingassistance1,143/Numberofmembers120,000/BrandHealthTest2022Numberoftests3Tests/yearNumberofconsumers10,200Consumers/yearCustomerComplaint2019~2022Complaintrespondingrate100%Complainthandlingrate100%NumberofcustomercomplaintshandledbytheE-commerceDepartmentin20223,039PieceSocialIndicators12Expenses:environmentallyfriendlypaperbags,giftboxes,cartonsforonlinestores,environmentallyfriendlyfillers,SmileAction,othersocialwelfareprojects,energy-savingLEDlights,andsustainabledevelopmentconsulting.Category/ItemIndicatorsQuantityUnitGreenStores2020Powersaving9,600,000kWhCarbonreduction7,000+Ton2021Powersaving11,160,000kWhCarbonreduction8,978TonEstimatedpowersavinginsecondphaseoflightingreductionandrenovationproject33,000kWh/newstoreGreenLogisticsE-vehiclecoveragerate60%Shippingcartonreduction–byweight10%Reuserateofcontainersandtools1180%GreenPackagingPlasticusereduction100MetricTonQuantityofpapersavedbyreducingweightofshoppingbags30Ton/yearRecoveryrateofcartonboxes100%Usagerateofrecycledpapermaterialsforcartons85%Quantityofreusablepaperforgiftboxes150Ton/yearApplicationrateofFSC-certifiedenvironmentallyfriendlypaperboardforpackingboxesoflocalproducts100%GreenSuppliersRatioofEcoVadis-certifiedsuppliers80%NumberofQIMA-certifiedsuppliers30/OfficesIndoorenergysavingrateofShanghaiofficein202150%ReportProfileTableofSustainableDevelopmentPerformance10EnvironmentalIndicators10Forindicatorswithoutaspecifiedtimerange,thestatisticalcaliberis“uptonow.”11E.g.,pallets.53ReportProfile542021-2022SephoraChinaSustainabilityReportNumberCategoryReportingSection306WasteWastedisposal307EnvironmentalcomplianceSuppliers’socialresponsibility308SupplierenvironmentalassessmentSuppliers’socialresponsibilityComprehensivelow-carbontransformationofthesupplychain401EmploymentEmployeecare402Labor/ManagementrelationsDiversifiedtalentdevelopmentpaths403OccupationalhealthandsafetyEmployeecareEfficienthumanresourcesmanagement404TrainingandeducationDiversifiedtalentdevelopmentpaths405DiversityandequalopportunityCorporatecultureDiversifiedtalentdevelopmentpathsFosteramorediversifiedandinclusiveindustrialenvironment406Non-discriminationCorporatecultureSuppliers’socialresponsibility408ChildlaborCorporatecultureSuppliers’socialresponsibility409ForcedorcompulsorylaborCorporatecultureSuppliers’socialresponsibility412HumanrightsassessmentSuppliers’socialresponsibilityFosteramorediversifiedandinclusiveindustrialenvironment413LocalcommunitiesSuppliers’socialresponsibilityFosteramorediversifiedandinclusiveindustrialenvironmentChildren’shealthygrowth414SuppliersocialassessmentSuppliers’socialresponsibility416Customerhealthandsafety"GoodFor"sustainablemakeupconceptEmployeecareCustomerfeedback417Marketingandlabeling"GoodFor"sustainablemakeupconceptSustainableproductdevelopmentCallformorebrandstopromoteecologicalprotectionandsustainabledevelopment418CustomerprivacyScrupulousprivacyprotectionInnovativeinformationsecurity419SocioeconomiccomplianceComprehensiveanti-corruptioncomplianceSuppliers’socialresponsibilityPremiumservicesGRIContentIndexNumberCategoryReportingSection101FoundationSephoraChina’ssustainabilitymanagementstatementSustainabilitystrategySephoraChina’ssustainabledevelopmentgoalsResponsetoUNSustainableDevelopmentGoalsMaterialityassessmentandstakeholderengagementGRIcontentindextable102GeneraldisclosuresSephoraChina’ssustainabilitymanagementstatementSustainabilitystrategySephoraChina’ssustainabledevelopmentgoalsResponsetoUNSustainableDevelopmentGoalsMaterialityassessmentandstakeholderengagementGRIcontentindextableAchievementsandhonors103ManagementapproachSephoraChina’ssustainabilitymanagementstatementSustainabilitystrategySephoraChina’ssustainabledevelopmentgoalsResponsetoUNSustainableDevelopmentGoalsMaterialityassessmentandstakeholderengagement201EconomicperformanceKeyperformanceoverviewSocialindicators202MarketpresenceEmployeeempowerment203IndirecteconomicimpactsSephoraChina’ssustainabledevelopmentgoalsResponsetoUNSustainableDevelopmentGoalsKeyperformanceoverviewSocialindicatorsFosteramorediversifiedandinclusiveindustrialenvironmentTappingintothebeautypowerofallSuppliers’socialresponsibility204ProcurementpracticesUnleashingBeautyPowerwithPartners205Anti-corruptionComprehensiveanti-corruptioncompliance206Anti-competitivebehaviorSpecializedintellectualproperty(IP)protection301Materials"GoodFor"sustainablemakeupconceptSustainableproductdevelopmentSuppliers’socialresponsibilityCircularityinsupplychain302EnergyGreenandenvironmentaloperationsComprehensivelow-carbontransformationofthesupplychain303WaterandeffluentsEstablishmentofgreenandsustainableoperationsites304BiodiversityBiodiversityprotectionthroughproductinnovation305EmissionsGreenandenvironmentaloperations55ReportProfile562021-2022SephoraChinaSustainabilityReportAboutSephoraAboutThisReportSephora,Europe’sleadingbeautyretailerfromFranceandbecamepartofthecompanyLVMH.TheSephoraengagescustomerstohavethefreedomofchoiceacrossawideassortmentofluxurybeautybrandlikeDior,Guerlain.Thefreedomtobrowseanunrivaledrangeofskincareproducts,makeupandfragrances.ExperiencesinSephora:theultimatebeautydestination.Establishedin2004,SephoraChinaopeneditsfirstretailboutiqueinChinaonMiddleHuaihaiRoad,ShanghaiinApril2005.By2022,Sephorahadexpandedinto90citiesinmainlandChina,with326exclusiveretailstoresthatofferafullrangeofbeautyservicestoconsumers.Sephoraalsocaterstoconsumers'needsthroughavarietyofonlineplatforms,includingitsofficialwebsite.Overthepast18yearsofdevelopingitspresenceintheChinesemarket,Sephorahasalwaysbeencommittedtounderstandingtherisingneedsofdomesticconsumers.ByadheringtotheTrueRetailphilosophy,carryingoutomnichannelretailinnovationandsustainableinitiatives,anddedicatingitselftobuildingabeautycommunity,Sephoracontinuestobealeaderinbeautytrends,definenewbenchmarksintheindustry,andcarryoutbrandrevitalization.ThisreportisavailableonlinewithMandarinChineseandEnglishversions.Intheeventofaconflictbetweenthetwolanguages,theChineseversionwillprevail.ThisreporthasbeenpreparedinaccordancewiththeGlobalReportingInitiativeStandards(GRIStandards)developedbytheGlobalSustainabilityStandardsBoard(GSSB),asdetailedintheGRIStandardsContentIndex;andwithreferencetotheUnitedNationsSustainableDevelopmentGoals(SDGs)2030.Unlessotherwisespecified,thedataandcontentdisclosedinthisreportcovertheperiodfromJanuary1,2020,toDecember31,2022,someofwhichmayextendbeyondthereportingperiod.ThedataandexamplesinthisreportarederivedfromtheoriginalrecordsorfinancialreportsofSephoraChina'sactualoperations.Unlessotherwiseindicated,allmonetaryamountspresentedinthisreportarepresentedinRMB.Intheeventofanyinconsistencywiththefinancialreports,thelattershallprevail.Inthisreport,theterms"Sephora","SephoraChina","we","us"and"theCompany"allreferto"SephoraChina".Formorerelevantinformation,pleasefollowtheofficialSEPHORAaccountonWeChatorvisitSephoraChina’sofficialwebsiteathttps://www.sephora.cn/.ReportFormatReportStandardsReportScopeSourceofInformationDesignationsMoreInformation

1、当您付费下载文档后，您只拥有了使用权限，并不意味着购买了版权，文档只能用于自身使用，不得用于其他商业用途（如 [转卖]进行直接盈利或[编辑后售卖]进行间接盈利）。
2、本站所有内容均由合作方或网友上传，本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺！文档内容仅供研究参考，付费前请自行鉴别。
3、如文档内容存在违规，或者侵犯商业秘密、侵犯著作权等，请点击“违规举报”。

碎片内容

碳中和的最新文档