"What we do and how we do it"

Care for the World We Live In

SECTION 1 CARE FOR THE WORLD WE LIVE IN

Our Mission at Aveda is to care for the world we live in, from the products we make to the ways in which we give back to society. At Aveda, we strive to set an example for environmental leadership and responsibility, not just in the world of beauty, but around the world.

 

Our commitment to caring for the world runs deep in our cultural DNA. It is at the core of the way we develop our products and operate our business. It is a central part of our recruitment efforts and training for new employees.  It is a foundational aspect of our relationships with our suppliers and the hair and skin care professionals who make up the Aveda network. To Aveda, caring for the world is an expression of our responsibility to protect and rejuvenate both the natural environment and the people whom we touch in conducting our business.

The Products We Make

We remain true to our founder’s vision for products that set Aveda apart in the beauty world through the practical art and science of turning naturally derived[1] ingredients into high performance hair, skin, body care and Pure-Fume™ aroma products. In fiscal years 2015 and 2016[2], we introduced the following products:

 

Percent of Formula that is

Naturally Derived

Hair Care

Smooth Infusion™ Smoothing Masque

91%

Thickening Tonic

97%

Be Curly™ Intensive Detangling Masque

98%

Be Curly™ Co-Wash

97%

Smooth Infusion™ Nourishing Styling Creme

93%

Shampure™ Dry Shampoo

99.8%

Invati Men™ Nourishing Exfoliating Shampoo

98%

Invati Men™ Scalp Revitalizer

98%

Invati™ Thickening Intensive Conditioner

97%

Skin Care

Botanical Kinetics™ Energizing Eye Creme

98%

Botanical Kinetics™ Intense Hydrating Soft Creme

98%

Botanical Kinetics™ Intense Hydrating Rich Creme

97%

Daily Light Guard™ Defense Fluid Broad Spectrum SPF 30

74%

 

Innovation in Ingredients and Products

Aveda has pioneered the development of high-performance personal care products derived from botanicals and other naturally occurring ingredients. Our roots are deep in the Ayurvedic tradition and we build on that knowledge in conjunction with expertise in pharmacognosy (the study of medicinal



[1] We define naturally derived ingredients to be those for which more than 50% of the molecule comes from a plant,

non-petroleum mineral, water or some other natural source.

[2] Fiscal years run from July 1 to June 30; specified years are calendar years unless denoted as fiscal years.

 

substances that come from natural sources such as plants), green chemistry, biology, botany, aromatherapy, biochemistry, physics, chemical engineering and phytotechnologies. We combine technical expertise with a focus on the concerns and needs of our users to develop innovative products with heightened functionality. Two examples of research driven innovations that comes from our foundation in Ayurvedic principles, commitment to creating high-performance hair and skin products made with naturally derived ingredients are Invati™ and Daily Light Guard™.

Invati™

The Invati™ product line is an example of Aveda’s holistic approach to developing new products. In working with Drs. Vinod and Kusum Upadhyay, leading practitioners and scholars in Ayurvedic medicine, Aveda’s experts searched for an approach that could help people maintain the hair they have longer and taps plant-based ingredients. Geoff Hawkins, Vice-President for Research and Development for both Aveda and Estée Lauder (ELC), and Alison Pawlus, Research Scientist at Aveda, explain the process that they followed in developing the Invati Men™ line launched in fiscal year 2016:

Alison: “My background is as a pharmacist/pharmacognosist (expert in plant-based medicines) and my specialty is finding biologically active molecules in natural products. Here at Aveda, we have a bioassay lab dedicated to hair biology where we are examining plant extracts for biological activity relevant to hair thinning. Hair thinning is very complicated and there are multiple factors that impact hair, so Invati's multi-pronged approach is very important to address the concerns of our diverse guests.”

Geoff: “The first products for maintaining hair that we launched were the Invati™ products designed primarily for women, based on recommendations of Ayurvedic herbs that came out of collaborations with Drs. Upadhyay. Men were also using these Invati products and that led us to review the scientific literature on male hair thinning. Alison and Dr. Cindy Angerhofer, Aveda’s pharmacognosy experts, began looking at the chemistry of many different botanicals for activity that would address hair thinning and aging concerns that are relevant to men. Working with an independent laboratory to evaluate individual botanical compounds, we found a number of botanical ingredients that had an effect and began looking at blends that might enhance the activity even more.”

Alison: “There is a long history of success in evaluating natural materials to address skin and hair concerns. A key approach that we use is ethnobotany, which is examining how plants have been used traditionally, typically for hundreds if not thousands of years. I looked for plants that people have used over time for things like thinning and hair loss.”

“The quality of the material is also of great importance to achieve the biological activity of interest. For example, Cindy Angerhofer and her botanical research team, haves been looking at various extracts of licorice, which as a plant, has a complex chemical profile and each licorice extract is different. By using highly sophisticated analytical techniques, they have been able to find the plant extracts with chemical profiles that are most beneficial for skin and hair. Utilizing that work, we were able to identify high-performance botanical extracts for addressing men's hair thinning. That is what makes our team at Aveda unique in the industry."

Geoff: “Alison also did extensive literature reviews to understand the state-of-the-art science of the biology and chemistry of the extracts we were evaluating. Our research focused on how we could potentially best address hair loss and also enhance the fullness/thickness of hair. We then set up a testing protocol with an independent lab and conducted repeated experiments to validate findings and to look at combinations and dosages of potential ingredients that would maximize the benefits to our guests. This effort was so successful in finding naturally derived solutions that we have four pending patent applications. This is a truly breakthrough technology!”

Daily Light Guard™ Defense Fluid Broad Spectrum SPF 30

Awareness of exposure to the damaging effects of the sun and environmental pollutants has grown immensely over the past few decades. What was once an obscure scientific observation, ozone depletion and the associated increase in UV radiation at the Earth’s surface, have become global concerns. Along with the recognition of the need for daily protection from the sun’s harmful rays is a growing understanding that pollution can cause skin damage. “The sun is the premature aging factor that we are exposed to most on a daily basis,” says Helga Hefner, Aveda Manager of Professional Spa Education. “Most people think they may only need to wear a sunscreen on a sunny day, but most UV and environmental damage happen while simply going about your daily routine.”

However, many non-chemical sunscreens leave a white residue that makes them less appealing to use. When our scientists overcame this with new mineral-derived technology, we decided the time had come to offer a new sun care option worthy of the Aveda name.

Aveda introduced Daily Light Guard™ Defense Fluid Broad Spectrum SPF 30 in early 2016 featuring a new mineral-derived sunscreen technology. It defends first by strengthening skin’s barrier to help defend against pollutants, and second with plant-derived anti-oxidants that help neutralize harmful free radicals – damaging molecules that can prematurely age the look of skin – before they even get started.

Althea Knight, Aveda’s Executive Director of Research and Development for Skin Care, oversaw the Aveda team developing Daily Light Guard™. With 27 years on ELC’s Research and Development team, Althea has led Aveda’s efforts since early 2013 and was a recipient of a 2015 Beauty’s Top Talent Award from Cosmetic Executive Women. She continues the story:

“Our research teams at Aveda strive to find the right balance between utilizing the benefits of modern science and harnessing the power of naturally derived ingredients including botanicals to create the best product possible. There were many challenges around what this product should be. The biggest factor is that the customer has to use the product. She has to want to put it on her skin. One of the complexities in developing Daily Light Guard™ was to achieve a formula that would be a pleasure to use, and that was modern and contemporary. It was important to be able to apply the product evenly without leaving a white ghost-like film on the skin.

“At the same time, we felt we needed highly effective ingredients to protect against broad spectrum UVA and UVB rays, and decided to use a 100% mineral-derived sunscreen technology. The Aveda Research and Development team collaborated with ELC colleagues and outside experts to create a technology using a state-of-the-art coating that allows the zinc oxide and titanium dioxide particles to move seamlessly across the skin, resulting in a silky-smooth, evenly distributed and sheer application. To achieve a luxurious and pleasing product, we created a formula that in total is 74% naturally derived and includes some synthetic ingredients to facilitate uniform skin coverage and adherence, both of which are required for good sun protection.”

In addition to our use of Ayurvedic principles—and consistent with the Aveda Mission—Aveda is committed to using organic ingredients whenever possible. Daily Light Guard™ uses certified organic kukui seed oil to help strengthen the skin’s barrier qualities, which helps provide protection against pollutants and environmental irritants, and a plant-based anti-oxidant blend that includes extracts of Ayurvedic ingredients including rice bran, rosemary, certified organic ginger and vitamin E derived from sunflower oil to help neutralize harmful free radicals. Aveda sources certified organic ginger grown in India by our partner Nisarga Biotech. Nisarga, which means “nature” in Sanskrit, grows Ayurvedic herbs using organic and biodynamic agriculture methods. They produce a variety of essential oils using a high pressure, low temperature CO2 extraction method to obtain concentrates without solvents (see the 2013-2014 ECC Report for further discussion of this extraction method).

Althea is often the first person to test newly developed skin care products:

“If I enjoy the look and feel of the product, I then pass it on to Aveda product development and marketing team members around the world to try it for themselves. We usually get feedback from these teams and adjust the ingredients and formulas until the product meets expectations. It’s very rare that a product is approved the first time around. With Daily Light Guard, we were one-and-done!”

Cradle to Cradle Certifications

We continued our relationship with the EPEA (Environmental Protection Encouragement Agency) established in 1987 by Professor Dr. Michael Braungart, one of the founders of the Cradle to Cradle (C2C) movement. EPEA is a key advisor in our Mission Aligned Ingredient Review process and assesses Aveda’s applications for C2C product certifications, which are then issued by the Cradle to Cradle Products Innovation Institute.

In 2015, the Cradle to Cradle Standard was updated from Version 2.0 to Version 3.1. The revisions added two levels of certification and increased the stringency at each level. In addition, the re-certification of products changed from annual to biennial reviews. Aveda certifies both the product formulation and the packaging, which is reflected on the associated C2C certificate for each product.

Aveda C2C Certifications/Recertifications

 

Version 2.0

Version 3.1

2014

2015

Product

Packaging

Product

Packaging

Aveda Men Pure-Formance™ Conditioner

Gold

Silver

Gold

Bronze

Aveda Men Pure-Formance™ Shampoo

Gold

Silver

Gold

Bronze

Smooth Infusion™ Conditioner

Gold

Silver

Gold

Basic

Smooth Infusion™ Shampoo

Gold

Silver

Gold

Bronze

Dry Remedy™ Moisturizing Conditioner

Gold

Silver

Gold

Basic

Dry Remedy™ Moisturizing Shampoo

Gold

Silver

Gold

Bronze

Dry Remedy™ Moisturizing Masque

Gold

Silver

Gold

Basic

Dry Remedy™ Daily Moisturizing Oil

Gold

Silver

Gold

Bronze

Invati™ Exfoliating Shampoo

Gold

Silver

Gold

Bronze

Invati™ Thickening Conditioner

Gold

Silver

Gold

Basic

Invati™ Scalp Revitalizer

Silver

Silver

Silver

Bronze

 

 

2016

Invati™ Men Nourishing Exfoliating Shampoo

 

 

Silver

Basic

Invati™ Thickening Intensive Conditioner

 

 

Gold

Basic

 

Organic Content

We seek out ingredient suppliers that are capable of working with a wide variety of growers and processors, some of which are traditional communities that have had limited experience with industrial scale supply chains. Some of Aveda’s ingredient suppliers provide training to growers and processors such that they increase their ability to meet requirements for consistent quality and delivery. In addition, they may help provide training in organic agricultural methods and associated business procedures such as recordkeeping and modern social and labor practices increasing opportunities in organic and fair trade markets.

[Sidebar]

Aveda founder Horst Rechelbacher was a passionate advocate for the power of plants. “They give us food, medicine, clothes and shelter,” said Horst, “they exhale what we inhale.” His awareness of the importance of plants to humankind made him concerned with protecting biodiversity. He deeply feared deforestation would cause loss of plant species with yet undiscovered powerful beneficial properties.

Aveda’s logo includes the words, “The art and science of pure flower and plant essences,” referring to the importance of essential oils in the aromas of Aveda products and our commitment to use plant- based actives. Sourcing high-integrity essential oils and extracts, from organically grown or responsibly wild-harvested plants is a foundation of Aveda’s success.

[End Sidebar]

We use a wide variety of botanical oils and herbal ingredients. In fiscal year 2016, 96% by weight of Aveda’s essential oil purchases used in our aromas, and 85% by weight of other whole botanical oils and butters purchased, such as sunflower seed oil, jojoba seed oil, babassu oil, shea butter and cupuaçu butter were certified organic. Products with certified organic ingredients may be labeled in different ways depending on the percentage of certified organic content.[1]

Aveda products that contained 100% certified organic ingredients in fiscal years 2015 and 2016 included:

Aveda Certified 100% Organic[2]

Comforting Tea - Loose

Comforting Tea - Bag

 

Aveda products that contained at least 95% certified organic ingredients in fiscal years 2015 and 2016 included:

Aveda Certified Organic

All-Sensitive™ Body Formula[3]

Aveda Love™ Composition Oil[4]

 

The following Aveda products were certified 100% organic in fiscal year 2015. In fiscal year 2016, we continued using certified organic ingredients, but we made a business decision to stop certifying the product itself.  Our essential oils (formerly Pure Essence) are now available as Aveda Singular Note products.—these are discontinued

100% Certified Organic Oil Products 2015[5]

Pure Essence Bergamot Oil

Pure Essence Chamomile German Oil

Pure Essence Cedarwood Atlas Oil

Pure Essence Clary Sage Oil

Pure Essence Eucalyptus Oil

Pure Essence Geranium Oil

Pure Essence Ginger Oil

Pure Essence Grapefruit Oil

Pure Essence Helichrysum Oil

Pure Essence Lavender Oil

Pure Essence Lemon Tea Tree Oil

Pure Essence Neroli Oil

Pure Essence Patchouli Oil

Pure Essence Sandalwood Oil

Pure essence Vetiver Oil

Pure Essence Ylang Ylang Complete Oil

 

Social and Environmental Responsibility in Our Supply Chains

In our 2013-2014 Earth and Community Care Report, we explained some of the complexities of multiple supply chains for commodity materials and small quantity specialty botanicals and showed how the Aveda Mission is fulfilled through our ingredient sourcing practices and partners, particularly around transparency, traceability and commitment to the Aveda Mission. We also noted the challenges of finding suppliers that can meet business requirements, including compliance with ELC’s Code of Conduct (COC), and provide environmental and social value, while at the same time diversifying our supply sources to reduce risks from global climate change and encouraging suppliers for whom Aveda is an overwhelming majority of sales to seek out new customers and new markets.

Going beyond the required COC audits, Aveda has been involved with a vendor survey on social and environmental responsibility as part of the ELC Green Chemistry program. The survey was developed with ELC’s consultant Sustainability A to Z, sent to all suppliers in 2012, and analyzed by Sustainability A to Z. Aveda-initiated updates to the survey included questions on raw materials and sustainability management that were distributed in autumn 2016. The results and analysis will be used to develop vendor scorecards in fiscal year 2017.

Aveda R&D personnel look at the “green” profile of vendors and their materials in an informal upfront screening prior to pursuing certification as an ELC supplier. Aveda, which serves as the ELC Corporate Center of Excellence for Hair Care and for NOGS (Natural, Organic, Green and Sustainable), is developing training modules to support Aveda scientists who work directly with our vendors. For example, in June and July of 2016, the NOGS team delivered training to the scientists on sustainable palm that included questions to ask potential vendors on their palm policies, our requirements for RSPO Mass Balance[6] certified ingredients (see palm discussion in the 2013-2014 ECC Report), and how to encourage vendors to seek RSPO Mass Balance certification for noncertified ingredients that Aveda may be interested in using.

Innovation in Ingredients--Plant Stem Cells and Coco Jasmine Extract

Aveda has been researching plant stem cells for nearly a decade to identify novel ingredient opportunities from this technology. Because plant stem cells can mature into any cell within a plant, we are looking at ways to use them to add to the efficacy of our products. We incorporated raspberry stem cells in the recently launched Invati Men™ and Tulasāra™ Calm Concentrate products. Cindy Angerhofer, Aveda’s Executive Director of Botanical Research, explains further:

“Plant stem cells are totipotent; they can become any kind of cell that a plant needs. People see it all the time when they take a part of a leaf or a piece of a plant stem, put it into water, and then see it grow into a whole plant.

Theoretically, tissue from any mature plant can be induced to de-differentiate when cultured in special media. With the proper conditions, the leaf or roots can become non-specialized and the cells can be coaxed into making any compounds found naturally in the plant by changing growth conditions such as nutrients, light, temperature or oxygen/CO2 levels. With the right conditions, the cells make much higher amounts of a sought-after compound than the low amounts that occur with normal plant growth. There are now commercial ventures to make plant stem cell-based compounds.

The benefits of this technology are pretty cool. There’s no need to cultivate or harvest wild plants, making it possible to use rare plants in Aveda products, while supporting the preservation and restoration of plants in the wild. Manufacturers potentially may be able to create stem cell extracts of plant species that are difficult to harvest or cultivate using traditional methods. Conventional agricultural chemicals such as pesticides and herbicides are not needed to grow stem cells, and the technology requires much less water to produce compounds of interest than growing plants in the field.

Right now, we’re using raspberry stem cells and we’re evaluating other stem cells for beneficial activity. We’re working with scientists at a company which is capable of culturing undifferentiated plant cells consistently at a large scale. We expect this technology to offer more and more opportunities to increase our use of Ayurvedic plant ingredients.”

Dr. Angerhofer continues to remind all of us at Aveda and her colleagues throughout the industry that “Plants are powerful,” and that we can harness that power for a wide variety of human uses. She also reminds us that we owe a debt to plants so we should take care to use them responsibly for their potent inherent attributes, and that we need to protect and restore plant habitats to preserve what should remain wild.

[SIDEBAR]

In an example of a new ingredient derived from an old technology, Aveda’s Head of Pure-Fume Aroma, Guy Vincent, an expert in the use of natural ingredients and their chemistry in aromatic consumer products, has incorporated a coco jasmine extract into our Tulasāra™ Wedding Masque and in three of the Tulasāra™ professional Aroma Infusions: Nourish, Nurture and Renew. Jasmine flower petals are so delicate that they typically require extraction with hexane, a hydrocarbon solvent. The resulting solid, called “concrete”, is then put through another extraction process with ethanol to become liquid. We avoid the use of ingredients obtained through solvent extraction. Our supplier uses a modernization of a bygone technique known as ‘enffleurage’ to generate a jasmine aroma ingredient without using a solvent like hexane. Instead, the flowers are immersed in certified organic coconut oil and processed with certified organic ethanol which results in certified organic coco jasmine oil. This ingredient provides a unique aromatic profile with a delicate floral jasmine character infused with soft milky aspects.

[End Sidebar]

Palm-Based Ingredients

In 2015-2016, Aveda continued our effort to source more sustainable palm-based ingredients. Our 2013-2014 report [include link], includes an extensive discussion about the issues associated with palm-based ingredients, and our program for addressing them. Aveda exclusively sources palm fruit oil that is both RSPO certified Identity Preserved and Organic certified for the very limited quantities we use of this ingredient, and we are in the process of shifting our supply chain of palm kernel oil (PKO) derivatives to RSPO Mass Balance (MB) certified, switching to non-PKO alternatives where possible, purchasing GreenPalm certificates for noncertified PKO derivative ingredients, and making sure our suppliers comply with ELC’s non-deforestation palm policy.

We have developed a babassu betaine which is used as an alternative to palm-based surfactants in a number of our products. The vast majority of our palm-based purchases are commodity ingredients derived from palm kernel oil (PKO). Aveda’s Global Supplier Relations team has worked with the Research and Development team to inventory our PKO derivative materials and in partnership with ELC, has been working with our suppliers to gain access to versions of these ingredients made with RSPO MB certified PKO.

Based on these efforts, we have set the following goals for the percentage of palm-based ingredients purchased by Aveda that are RSPO Mass Balance Segregated or Identity Preserved (IP) certified:

Annual Goals for Certified Palm Ingredients

2016

2017

2018

2019

2020

30%

50%

70%

90%

100%

 

Aveda achieved a little over 30% MB or IP certified in 2016, and we are confident of achieving our 2017 and 2018 goals of 50% and 70% respectively, based on work already underway by several key vendors to convert additional materials to MB certified PKO. While the path beyond that is currently not as clear, we believe that continued pressure will lead to the availability of MB certified PKO versions of our remaining palm-based ingredients and enable us to achieve our goals for 90% in 2019 and ultimately 100% in 2020.

Our Operations

We manufactured more than 86% (by units) of our products in Blaine, Minnesota in the last half of 2016. Our employees staff the production lines and distribution centers filling orders for the salons, spas, Experience Centers and other sales channels through which our products are sold. Their contributions are supported by Aveda staff who manage shipping, facilities, quality assurance, environmental compliance, safety, employee training, and hiring and retention. [7] Together, they have key roles in helping Aveda implement its Mission.

Our Blaine campus hosts both manufacturing operations and corporate functions along with a distribution center and an Aveda Experience Center. Teams within the campus either report directly to the Aveda President or have dual reporting lines shared with ELC.

The Aveda Mission encompasses a commitment that can be seen not only in our products and ingredients, but in our campus, retail stores, Institutes and distribution centers. Our vision is for operating our business using renewable energy, achieving zero waste to landfills, managing water use within a fair share of local capacity, and using materials that are consistent with Cradle to Cradle principles.

Energy and Greenhouse Gas (GHG) Emissions

Our focus on energy use and associated GHG emissions is about pursuing continual reductions, both in absolute terms and in intensity. We recognize the enormity of the challenge that climate change poses to our business and our role in contributing to the problem. This is why we also acknowledge our responsibility to finding solutions. We rely on the bounty of nature to provide us with the raw materials to create high-performance products for our customers. Climate change is a direct threat to us in the increasing potential to disrupt farming and wild harvesting in the geographic areas that are the sources of the plant materials for our products. And it threatens the livelihoods of the people who produce these materials and who are our partners in pursuing the Aveda Mission.

In fiscal year 2015 and 2016, we continued our strategy of purchasing renewable energy and looking for opportunities to increase energy efficiency and offset GHG emissions that cannot yet be eliminated. Our performance at our Blaine manufacturing, corporate and distribution center facilities is detailed below.   

Energy and GHG Emissions for Headquarters Office, Manufacturing, Distribution and Institute Facilities

  

2012

2013

2014

2015

2016

Blaine

MJ

41,966,306

46,735,805

47,874,618

46,803,643

44,637,554

lbs CO2 eq

12,103,595

12,899,097

12,719,331

12,722,295

12,401,495

Midwest Distribution Center

MJ

8,824,030

9,344,194

13,554,180

12,028,291

7,726,783

lbs CO2 eq

2,168,630

2,225,745

2,824,247

2,636,745

2,155,421

LADC

MJ

167,442

331,942

268,525

201,230

157,205

lbs CO2 eq

71,131

141,011

114,071

85,484

66,782

Aveda Institute Minneapolis

MJ

7,676,257

8,347,913

9,134,205

7,959,541

7,315,496

lbs CO2 eq

2,389,468

2,416,563

2,546,471

2,315,162

2,170,241

Total

MJ

58,634,036

64,759,855

70,831,528

66,992,705

59,837,038

lbs CO2 eq

16,732,824

17,682,416

18,204,120

17,759,687

16,793,939

 

Total energy consumption for all locations rose slightly (2%) over the fiscal year 2012 to fiscal year 2016 period, peaking in FY2014 and then falling. The infamous “polar vortex” that gripped Minnesota in sub-zero temperatures for extended stretches during the winter of 2014 was to blame for some of the high energy use during FY 2014 as a high volume of natural gas was used for heating our facilities there. The unusually cold weather caused particularly high gas consumption at the MWDC as extra heating was needed during construction of a 60,000-square foot addition which occurred that winter. The new addition has increased energy consumption at the MWDC over what it was prior to the expansion as reflected in the numbers for FY 2015-2016.

Although Aveda operations in North America have been effectively carbon neutral since 2007 through purchasing wind energy for the electricity consumed and carbon offsets for the natural gas burned at our domestic facilities[8], we also track our GHG emissions as they would be reported without these purchases. These Scope 1 and 2 missions rose and then fell over the same 5-year period to about the same level in FY 16 as in FY 12. During this period, both kg of production and units of production rose 16%.

Energy and GHG Emissions Intensity for Headquarters Office, Manufacturing and Distribution

  

2012

2013

2014

2015

2016

Blaine Office and Manufacturing Only

MJ/kg

4.01

4.11

4.23

3.85

3.67

CO2e/kg

1.16

1.14

1.12

1.05

1.02

MJ/unit

0.74

0.78

0.75

0.71

0.68

CO2e/unit

0.21

0.21

0.20

0.19

0.19

Blaine and Distribution Centers

MJ/kg

 5.60

 5.70

 6.26

 5.52

 4.93

CO2e/kg

 1.60

 1.56

 1.61

 1.46

 1.38

MJ/unit

 1.04

 1.08

 1.11

 1.02

 0.92

CO2e/unit

 0.30

 0.29

 0.29

 0.27

 0.26

 

 

Energy intensity for our Blaine manufacturing facility and two distribution centers by weight and units each declined by almost 9% between FY 2012 to FY 2016. Similarly, the GHG emissions intensity per kilogram and per unit for these combined facilities declined by just under 9% over this period.  

In FY 2016, we came up short of the goal established in our last Earth and Community Care Report of reducing our GHG emissions per kg of production by 14% against a 2014 baseline, achieving only an 8.6% reduction in GHG intensity. We believe our difficulty in further reducing energy consumption has been due to several factors including a 60,000-square foot expansion of our Midwest Distribution Center in FY 2015 and the more energy intensive manufacturing processes for certain recent new high- performance products.  

While we are disappointed in the results we achieved in reducing our energy use during FY 2015-2016, we have been encouraged by several new initiatives begun near the end of the reporting period that we believe will yield significant results.

One of these is greater collaboration between our pilot scale-up team, Research and Development and our production group and other departments to drive greater energy efficiency in manufacturing. Together, they are considering the implications of formulations, process changes and production scheduling for energy consumption required for manufacturing. This and other efforts to reduce energy use at our Blaine campus are discussed by Aveda’s VP of Global Supply Chain and our Director of Supply Chain Operations and Maintenance, here [link to “sidebar” below].

 

 [SIDEBAR]

Dan Berry, Director of Aveda Supply Chain Operations and Maintenance, and Saverio Marcario, Aveda VP Global Supply Chain, discuss our efforts to address energy use that we believe will result in positive trends that we can report on in our next report:

Saverio: “By encouraging our teams to challenge our traditional operating parameters they have succeeded in delivering on many energy improvements within the campus. The challenge with meeting our energy management objective is how to grow our business while reducing our absolute energy consumption. These two aspects typically trend upward together, but to live the Aveda Mission we need to put forth our best effort and drive them in opposite directions with energy being reduced and the business growing. To accomplish this task, we need to look at the way that things have been done and challenge the traditional paradigms. A mindset shift is needed where everyone considers the impact that they can have on natural resource consumption and makes a commitment to have a positive effect.”

Dan: “Over the past two fiscal years, Aveda has embarked on a number of improvements in our systems, processes and equipment. Additionally, we have chartered a new employee engagement group focusing on developing and implementing energy reduction.”

“Within the building, we have converted nearly 1,200 compact florescent bulbs and fixtures to more efficient light-emitting diodes (LED). We have a phased approach to upgrade the other lamps and fixtures.  By formalizing our energy reduction team it has gained more recognition and influence. This employee-led team brings together Environmental Health and Safety (EHS), Manufacturing, Facilities and others. Some preliminary initiatives include optimizing our major building infrastructure processes between times when occupied and producing versus non-production times.  Performance improvements on production lines have mitigated non- weekend work thus reducing the energy use on weekends.  As this team continues to execute, we will see our energy use and associated costs decline even further. By encouraging this team to challenge our traditional operating parameters they have succeeded in delivering in many energy improvements within the campus.”

Saverio: “Our newly chartered energy reduction team has been empowered to re-examine how we currently operate and where we can reinvest in projects which consider our environmental impact and couple the environmental cost benefits with financial returns on investment (ROI). We are looking at options throughout our manufacturing processes, office spaces, transportation and other non-manufacturing activities that have energy-reduction potential. Each project will be evaluated by not only by the traditional ROI but also upon environmental benefits which will be delivered attributes.”

 “We care for the world we live in through community engagement, volunteering, and by being activists for the environment.  When we leverage the Aveda beliefs with our employees, the Aveda network and guests we will make a more profound impact. We are always amazed and proud of the level to which the employees and the network live the Mission each and every day to make the commitment to make a difference.”

[END SIDEBAR]

Waste Generation and the Road to Zero

With well over a decade of experience, Aveda’s Zero Waste Program has had a significant impact on transforming how we view everyday business operations. Longstanding efforts include recycling operations throughout the manufacturing, distribution, office and retail facilities, managing a wide variety of materials and products such as office supplies, furniture, pallets and boxes in a manner where reuse and refurbishment are standard practices, and collection of organic wastes for composting.[9] We strive to take a novel approach to everyday things, by finding ways to change and reduce the current impact of everyday office and business activities.

In FY 2016, Blaine facilities generated a total of 2,900,000 pounds of waste, of which 76% were recycled or reused. Over the fiscal year 2012­-fiscal year 2016 period, total annual waste generation increased by 10%, while the quantity of waste recycled increased by 17%. The recycling rate also increased by 4 percentage points (from 72% to 76%).

Our goal for FY 2016 was to have an 80% recycling rate for our manufacturing facility and a 98% recycling rate for our Midwest Distribution Center (MWDC), exclusive of industrial and hazardous wastes against a 2014 baseline. Our manufacturing facility achieved a 79% rate in FY 16 just missing our goal, while we were not able to find ways to improve our performance at the MWDC, which maintained a rate of 96%. The industrial and hazardous wastes generated by our MWDC and Blaine production facilities include but are not limited to aerosols, other returned or expired products, incorrectly produced batches and lab chemicals.  When these wastes are taken into account, the total recycling rate for our office and manufacturing facility also showed steady improvement in fiscal years 2015-16. However, after improving in FY 2015, the total recycling rate for the MWDC decreased from 72% to 62% in FY 2016, reflecting an increase in returned unsaleable and expired products requiring disposal.

Waste Generation at Blaine Office and Manufacturing*

 

2012

2013

2014

2015

2016

Municipal Waste

315,700

263,400

268,200

308,200

279,500

Corrugate--recycled

519,200

507,500

449,200

557,500

547,200

Recycled and reused (inc batteries)

998,400

773,900

1,082,300

1,261,300

1,305,400

Hazardous  Waste

25,700

12,500

13,100

19,900

14,500

Industrial Waste

177,200

178,200

167,900

168,600

171,700

Total Waste

2,036,200

1,735,520

1,980,700

2,315,500

2,318,300

Recycling Percentage

74%

74%

77%

78%

80%

kg waste/kg production

0.19

0.15

0.18

0.19

0.19

kg waste/units production

0.04

0.03

0.03

0.04

0.04

*Weights rounded to nearest hundred.

 

Waste Generation at Blaine Midwest Distribution Center*

 

2012

2013

2014

2015

2016

Municipal Waste

9,700

16,500

18,000

15,000

16,500

Corrugate--Recycled

382,300

371,100

380,600

331,800

326,500

Recycled and Reused (inc batteries)

14,000

35,400

34,700

58,500

577,800

Hazardous  Waste

13,900

11,200

19,300

31,000

13,800

Industrial Waste

219,000

193,400

184,300

103,100

203,000

Total Waste

638,900

627,600

636,900

539,400

1,137,600

Recycling Percentage

62%

65%

65%

72%

62%

kg waste/kg production

0.06

0.06

0.06

0.04

0.05

kg waste/units production

0.01

0.01

0.01

0.01

0.01

 

Consistent with Aveda’s zero waste to landfill policy for Blaine, the 24% of wastes that were not recycled or reused, including municipal, hazardous and industrial wastes, were sent to waste-to-energy facilities.

 

One example of how we think and initiate changes to further our Mission is a product that is nearly universal, even in the age of digital management–the three-ring binder.

Carolyn Panning, Aveda’s Manager of Office Services for nearly a decade and a half tells the story:

“Part of my new hire orientation when I came to Aveda 23 years ago, was being told that ‘Everyone is in customer service,’ along with the mantra of Aveda’s founder, Horst Rechelbacher, that ‘environmental responsibility is part of everyone’s job.’ My role in the company has always been internal. I was in Human Resources before I took on my current position about 14 years ago. In both cases, I saw my job as both serving my ‘customers’–my Aveda colleagues–and finding ways to fulfill the Mission to be an environmental leader.”

“Over the past few years, our office Zero Waste team started seeing larger numbers of 3-ring binders in our office supplies reuse area. They were piling up because the binders were not recyclable and therefore not Mission-aligned. We began working with our vendor to develop a binder made with easily recycled materials. Now, we are able to assemble and disassemble the binders on-site and recycle the components of binders that won’t be reused.”

Carolyn is also an enthusiastic participant in Aveda’s composting program, which experienced considerable growth during the 2015-2016:

“I’m really excited over the increased opportunities for composting that are available to us. Here in Blaine, we’re collecting compostable material and sending it to an off-site commercial composting facility. But we’re also trying to encourage our employees to compost at home. Perceptions of composting are changing and there is a huge improvement in people’s acceptance of compost over what it has been in the past. Part of what has made a difference is that I, along with a number of other Aveda employees, became master recycler/composters. It is a program that certifies members of the public as master recyclers/ composters and requires 25 hours of volunteer time for the certification. I’ve been impressed with my colleagues who’ve become advocates for composting at Aveda and at home.”

And Carolyn is taking a leadership role in the office of the future:

“Aveda is moving faster to adopt technology that will change what we do here. We’ve also been using video technology for quite a while to reduce travel. I am really excited to see meetings with more digital information and less paper. More and more, we’re adopting technology that will transform the office environment from an area with files, binders and papers to one where those things are absent.”

 

 

 

 

 

Water and Wastewater Data

The amount of water Aveda uses for production operations, as a product ingredient, office activities, the Aveda Institute Minneapolis, and in our distribution facilities has not changed significantly since FY 2012, especially when comparing water use with the number of units produced. Water use rose between fiscal year 2012 and fiscal year 2016 by 8% to 101.4 million liters while water use per kg of products manufactured declined by 7%. Industrial wastewater discharges at Blaine rose 31% between FY 2012 and FY 2016. The increase in water use and discharge was due in part to changes in the mix of products and an increase in changeovers between products resulting in increased cleaning of equipment. During a review in Blaine, it was also determined that equipment maintenance problems in 2016 likely contributed significantly to the increase of water consumption. These problems have since been rectified and we have also made other improvements, such as installing a flow restrictor to reduce water required for a grinder in the manufacturing area which we estimate is saving over 100,000 gallons per year. In previous reports, we have discussed the potential replacement of USP reverse osmosis water system with a more efficient deionized water system that would reduce water use. However, we have since decided to keep and improve the existing system, while working to reduce our water consumption through reuse efforts.

Blaine Manufacturing, Distribution and Institute Water Use

 

2012

2013

2014

2015

2016

Blaine

79,713,008

74,383,463

75,034,105

73,757,602

88,752,194

MWDC

2,060,770

1,692,888

1,651,975

1,827,792

1,335,772

AIM

11,769,458

12,212,304

12,615,405

10,710,604

11,346,484

Total

93,543,236

88,288,655

89,301,485

86,295,998

101,434,450

liters/kg production

8.93

7.77

7.89

7.11

8.35

liters/units production

1.66

1.47

1.40

1.31

1.55

 

Workplace Safety and Health Trends

Aveda continues a nearly two-decade trend of declining rates of recordable safety and health incidents, although rates have fluctuated. The fiscal year 2016 total incident rate (1.44) was 44% below fiscal year 2014 and 38% below fiscal year 2012 (2.31). We attribute the long-term term trend to the Behavior Based Safety program we instituted in the mid 2000s, the attention of Aveda’s President to safety, Gemba safety walks, and our employee safety teams, who raise accountability and awareness.

 

We are very proud of our workplace and its safety and health management systems.  The Minnesota STAR (MNSTAR) Program is a Minnesota Occupational Safety and Health Administration (MNOSHA) program that recognizes companies where managers and employees work together to develop safety and health management systems that go beyond basic compliance with all applicable OSHA standards and result in immediate and long-term prevention of job-related injuries and illnesses. Key elements of this comprehensive program include:  management leadership and employee involvement; an allocation of resources to address safety issues; systems that identify and control workplace hazards; and a plan for employee safety training and education.  Aveda Corporation, Manufacturing Site and our Midwest Distribution Center are two of only 37 business in Minnesota in 2017 and have been part of the program since 2008.

 

 

Pedestrian Safety Paths

Factories are typically very busy places. Aveda’s Blaine manufacturing facility shares a building with our corporate offices, our dining facility, Organica, a research salon, an Aveda Experience Center and Research and Development; while nearby is our Midwest Distribution Center. The manufacturing area houses among other things the production facility, incoming and outgoing shipping, raw material storage, interim product storage, and our facilities group, all of which generate pedestrian traffic, along with corporate office staff who interact with work groups within the facility and staff that walk through the area going to and from other parts of the campus. Similar to other facilities, the manufacturing area uses fork trucks (electrified to reduce emissions and noise) and material handling equipment to move materials, equipment and products. As Kim Yoakum, the Director of Environmental Health and Safety at the Aveda Blaine Campus explains:

“With Aveda's focus on employee safety, we installed a pedestrian pathway in our manufacturing facility during FY 2016. This guarded pathway was implemented to ensure everyone walking within the manufacturing area was safe. The focus was to limit any person and powered material handling equipment (PMHE) interaction. To do that, we moved the main pedestrian route for non-manufacturing staff out of the areas where the fork trucks generally operate. We also installed employee controlled crossing arms at two key areas to allow employees to safely pass without worrying about PHME moving in the pathway. After an initial testing period, all employees began using the pedestrian pathway and we have received positive feedback on this safety initiative.

“We also took the opportunity to address an issue outside the buildings to improve the safety culture for everyone who steps foot onto the Aveda campus. We added additional striping to denote walk zones on the roadway and parking areas for greater pedestrian visibility and safety.”

 

Blaine Campus Stewardship

Aveda’s Blaine, Minnesota campus sits on 58+ acres that houses our corporate offices, a retail Experience Center, a test salon, our manufacturing facility and our Midwest Distribution Center. What began as a typical suburban landscape has evolved into a practical demonstration of how we implement the Aveda Mission. Native plants, bird nest boxes and roosting structures, and avoiding toxic materials are standard practices that create welcoming environments for birds, bees (see the 2013-2014 ECC Report for more on Aveda’s pollinator projects), and a variety of other wildlife. Nathan DeJarnett, ‎Aveda’s Facilities Sustainability Specialist, explains what we have done in recent years:

“I’ve spent almost 13 years in Aveda’s facilities department working on our grounds, outdoor facilities, and ecological restoration projects. When I started, the Blaine campus consisted primarily of a lot of lawns along with some open spaces and water features. In 2008, Aveda set aside two-thirds of the campus as a National Wildlife Federation-certified wildlife habitat. We nurture and protect the sensitive ecosystem at our site against threats such as invasive species of insects, plants and wildlife. With each new landscape project we take on, we strive to create a natural habitat for local birds and other animals by including restorative elements.”

“In FY 2013, we created an organic garden, providing 20 plots for employees who want to plant vegetables, fruits and flowers. The garden also assists in providing foraging areas for Aveda’s bee colonies. Pollination is crucial to our business as a plant-based products company and is critical to enhancing global biodiversity. The Aveda Honey Bee Project was started in FY 2014 as part of a larger Aveda effort to raise awareness about the need to protect pollinators and their habitats. Between FY 2007 and FY 2015, five to seven acres were restored from parking areas or lawns back to prairie land.”

“Aveda cares for many social and environmental causes and one of the causes very close to our hearts are birds. Through our strong partnership with Audubon Minnesota, we help protect bird habitat and safeguard water for birds. In 2011 Dominique Conseil began noticing birds flying into window panes on our campus in Blaine. Bird strikes like these occur when birds see reflections of habitat, water, or mates in windows or when they simply don’t notice the glass. We began regularly walking the perimeter of our buildings trying to understand the problem. For every dead bird we found, we knew that there may be more that flew off but later perished. We contacted Audubon Minnesota because of their successful work around raising awareness about bird conservation as part of their Bird-Friendly Communities campaign. They helped us work through our options for addressing this issue. Along with Cindy Angerhofer, I’ve been tracking the amount of bird strikes for about 4 years, noting periods of increased activity, location of strikes, bird types, etc. We log the data and share it with Audubon for research purposes.”

As Aveda’s senior plant scientist, Cindy got involved in the bird issue in both her professional capacity and as a long-time bird enthusiast:

“There are recommendations for dealing with bird strikes, and the solution that most experts agree on is to cover windows with some sort of film that birds can see, never leaving more than 2 x 4 inches of exposed glass in one place. This means a lot of area needs to be covered, which may not only break up the view, but and can get expensive.”

“We tested several types of decals considering cost, material attributes and functionality. There were decals made of vinyl (PVC) that didn’t have to cover the entire window and there were PVC-free solutions that came with a higher price tag. In the end, we decided to pay more for a mission-aligned PVC-free solution using a patterned window treatment that allows good visibility, is attractive to people while visible enough to effectively warn birds away. Since installation, we haven’t seen a single bird on the ground below our windows. Because of the higher cost of PVC-free material, we are installing the new window treatment in phases, prioritizing areas with the highest bird activity, with a goal of completing all areas of concern and replacing worn decals as needed.”

“Bird strikes are a real problem, and we have an opportunity through our networks, partnerships, stores and salons to spread knowledge about what can be done to save birds from being lost. We’d like to use our experience as an educational tool for employees and guests to learn about bird strike prevention, and we’re currently working with Audubon to develop informational material for our stores. According to Audubon, most bird kills happen in residential areas, especially around low-rise buildings, and where light emanates upward from windows so the potential benefit of raising awareness is enormous.”

[SIDEBAR]

Learn more about what you can do in these articles from the Audubon Society, American Bird Conservancy and Cornell Lab of Ornithology.

mn.audubon.org/conservation/bird-friendly-communities/landing/project-birdsafe

mn.audubon.org/conservation/birdsafe-homes

allaboutbirds.org/glass-action-advances-in-the-science-of-making-windows-safer-for-birds

allaboutbirds.org/Page.aspx?pid=1184#why

allaboutbirds.org/7-things-you-can-do-to-help-songbirds-if-youve-just-watched-the-messenger

abcbirds.org/get-involved/bird-smart-glass

collisions.abcbirds.org/design.html

[END SIDEBAR]

Rain Gardens and Parking Lots

Employees and visitors have extremely limited opportunities to use mass transit to get to our Blaine-based campus however we highly encourage carpooling and bicycling and provide dedicated spots for carpools and showering facilities and lockers for bike commuters. During fiscal year 2015-2016, Aveda embarked on a number of improvements to our parking lot to gain environmental improvements and safety upgrades. In the first phase of the parking lot renovation, we added rain gardens—planted areas that collect storm water from pavement and walkways—to absorb and clean the runoff from impervious surfaces. The second phase involved installation of pervious pavers in a portion of the lot to allow water to flow through to the ground rather than to the sewer, reducing surface runoff and trapping pollutants from cars before they reach local streams or groundwater. Most recently, we added electric vehicles (EV) charging ports for those employees with EVs.

Better Shipping

In pursuing Aveda’s Mission, we continually seek a balance between minimizing our impact on the environment and providing the highest level of service to our customers. The environmental impact of transportation is significant because it is a major user of energy, accounting for about a quarter of the world’s fuel use and associated greenhouse gas (GHG) emissions. Without transportation, we would not be able to manufacture our products or deliver them to our customers throughout the world. Dave Nordine, Aveda’s Director of Transportation, explains how we incorporate the Mission in moving raw materials and product:

“Aveda’s standard transportation modes are ground and ocean shipping. Yet, there are times when we ship goods via air freight due to small shipment sizes, limited alternatives in certain areas where we source raw materials and components, manufacturing delays and unplanned sales demand. Shipping by air requires substantially more energy per unit shipped and, therefore, results in greater levels of GHG emissions. In response, we began using rail service in lieu of trucks on a limited basis at our domestic distribution centers.  We found that it was not easy to avoid compromising our high level of customer service.”

“In February of 2015, we began using our rail partner’s ‘RoadRailer’ service (special trailers equipped to be used on the highway and rail cars) to send one truckload per week from Blaine to our Distribution Center in Pennsylvania. The trip worked well with our rail partner maintaining a 4-day transit time for our shipments. In September, our rail shipments came to a stop when our rail partner decided to dedicate the RoadRailer business to the automotive industry route between Detroit and Kansas City. The next best rail service we could find was a 9-day transit time with added handling and additional trucking, which did not meet our standard for the level of service we want to provide to our customers.  By having distribution centers around the country, this allows us to reduce our environmental impacts by shipping full truckloads to those locations.  Smaller packages are then shipped out to the salon network, Experience Centers and our online customers.”

 “Despite the challenges, we will continue to seek ways to ship our products using the least amount of energy possible while maintaining a premier level of service for our customers. One of the ways we do this is by partnering with the U.S. EPA Smartway Program. In fiscal year 2016, Aveda utilized approximately 8,619 ton miles annually for outbound transportation via the program. We maximize the efficiency of our trucks and containers by carefully balancing volume and weight to fill the maximum amount of available space without exceeding weight limits. We partner with shipping companies that have high scores with Smartway and we take into consideration the relative environmental impacts of different shipping modes. For more information about the EPA Smartway Program, click here.”

Product Experience

Our guests’ typical initial experience of Aveda’s products is at an Aveda network salon or spa where a styling professional or esthetician uses and recommends Aveda products, at an Aveda Experience Center, or at one of the Aveda Institutes. In each of these settings, Aveda products are part of a holistic multi-sensory encounter designed to engage the mind and body. Guests have the opportunity to participate in complementary Aveda Rituals of Renewal including the Aroma Sensory Journey, Stress-Relieving Hand Ritual and Stress-Relieving Neck and Shoulders Ritual.

Wellness Rituals

Aveda’s wellness rituals combine customized Aveda skin and hair care products for a unique and personalized experience. The Skin Balancing Treatment, a 20-minute mini-facial using our Tulasara™ skin care line, incorporates the Radiant Awakening Ritual to exfoliate the skin using an Ayurvedic- inspired technique. The Scalp to Soul ConsultationSM treats the guest to tailored Aveda products, techniques and wellness for a truly holistic beauty experience.

 

Experience Centers, Salons, Spas, Institutes and Travel Stores

Walking into an Aveda retail Experience Center, salon, spa or Institute has always been unique. Along with products and services, we have long provided free stress-relieving rituals, skin treatments, consumer education, and beautiful sights, sounds and aromas in a setting that embodies the Aveda Mission. They reflect attention to green building principles and a concerted effort to use materials that are consistent with the Aveda Mission.

 

Aveda-Owned

U.S. and Canada

International

Experience Centers

110

25

Salons and Spas

1

4

Institutes

2

 

Travel Retail

8

31

 

For the past ten years, we have been using a tool Aveda developed to help to guide our decision-making process on different materials used to construct our stores. In Fiscal 2014, the entire process for sourcing and construction guidelines was finalized with our purchasing team.  We implement these guidelines through: 

·       Building documents that we provide to our external partners for a new build or a renovation of an Experience Center. These outline our environmental mission, goals, and considerations when executing any approvals, orders, or work to complete a project.

·       Requests for Proposals to potential vendors for materials, fixtures and services that include questions about their environmental standards in production, sourcing, and/or shipping.  

·       Criteria that outline Aveda’s material use policies and specify how we decide on materials for building construction, fixtures and finishes that help us reduce our environmental impact. 

We are working to improve our global construction specifications and the transparency of materials sources for our international stores, which can be a significant challenge in some of the geographic locations in which we operate.

Embodying the Aveda Mission in the look and feel of our Experience Centers is an ongoing effort. Jamie Sneed, Executive Director of Global Store Design and Planning, and Lindsey Urbina, Manager of Global Store Design and Planning, talk about some of the ways in which they put the Mission into practice in Aveda’s retail experiences: 

Lindsey: “We work with global suppliers and on tight timelines. This involves obtaining documentation that traces materials back to the source so we know that they align with the Aveda mission. To ensure that our suppliers understand Aveda and how we source, we are constantly updating our specifications.”

Jamie: “While creating a store atmosphere that pays homage to the environment we also strive to reduce costs and prioritize eco-friendly materials in all aspects of our store design. When we were looking for a luxurious bar top material but didn’t want quarried stone, we went to Caesarstone for sustainably manufactured material. We limit the size and weight of store fixtures to decrease transportation impacts, incorporate living, healthy plants in our stores to help filter the air, reduce resin materials in favor of recyclable glass made with recycled content, use fabrics in place of plastics and porcelain floor tiles.”

We don’t do business with vendors that can’t meet our requirements for material, sourcing practices, and product tracking. Within the group of ELC approved suppliers we determine which ones are pursuing more sustainable practices in terms of waste management, use of recycled or bio-based materials and material traceability. By encouraging the vendor to prove that they’re as sustainable as they can be, we help them think about new and better ways of doing things not only for us, but for other clients as well.”

“For instance, we find vendors who sell fallen wood, giving us something extraordinary and natural without cutting down trees. Our storefront materials are purchased from Pioneer Woodwork, a company that reclaims and refinishes wood into new products. In the men’s tower fixture, for example, we used five barns worth of wood. We use solid materials whenever we can find a sustainable source but prefer to prioritize sustainability. Sometimes it’s better to use veneer, such as with shelf fixtures, if the glue is VOC-free and the material is recyclable.”

“During FY 2015-2016, we initiated a transition of our lighting to LEDs which has allowed us to reduce energy consumption in stores.  All new and renovated locations are designed with LED light fixtures; however, we still have some existing locations that have not fully made the transition.  We also have developed a program to reuse Aveda fixtures and other interior elements when we renovate, close, or relocate a store, often in temporary pop up stores and in remodels.”

New Retail Design

In FY 2016, we began developing “a new retail concept built around experiences rather than commerce,” according to Marianne Knutson, Senior Vice President of Global Marketing at Aveda. “You’ll still be able to stock up on your favorite products, say, your Stress-Fix™ Body Creme, but you will also be able to wander over to a new “The Art of Hair” section—the heartbeat of the Experience Centers.”

Antoinette Beenders, Global Creative Director of Aveda continued, “You can either pick a look you like in a video tutorial and get an Art of Hair Styling Kit to recreate the look at home. Or, you will be able to see an Aveda Advisor and learn how to get the look together.  You can even ask an Advisor to help you with custom styling. Everything will be free. We just want to help you learn how to do your own hair.  We’re trying to make people feel differently when they leave the store than they did when they came in.”

The new Experience Centers feature multiple stand-alone areas called Experience Zones, in which guests can try, buy, and fully immerse themselves in everything from hair tutorials to beauty, skin, fashion and men’s hair care.  In addition, the Living Aveda blog storytelling will be featured, creating an opportunity to learn more about Aveda and the ways in which Aveda Artists and salons are making a difference in their communities and environmental sustainability. Additional unique experiences are available such as learning about chakras, and an aroma fixture featuring the importance of aroma in Ayurveda and in our products.

Newly designed community tables are a feature that is at the heart of each new Aveda Experience Center. The community table serves as a place where guests can lounge, think, recharge with a stress-relieving ritual, and discover and sample new products. Guests may interact with friends, have tea, plug in personal mobile devices, and interact with Aveda personnel. This intimate and relaxing setting was designed to allow guests to slow down, discuss personal wellness preferences and products, and come away rejuvenated.

Jamie Sneed explains that “The tables themselves are visual representations of our company heritage, our admiration of nature, and the efforts Aveda makes to align with our Mission. They are made from sustainably harvested monkey pod wood sourced from Diamond Teak, originating in the forests of Costa Rica. The wood provides the warm and soft appearance we were looking for. Interestingly, all four slabs that we used for making tables for the first redesigned stores came from the same tree as second cut sister pieces. They are incredible pieces of nature to marvel at and enjoy."

[SIDEBAR]

Diamond Teak and its sister company Diamond Tropical Hardwoods model how companies can provide a quality product at reasonable prices, while also caring for and giving back to society and the environment. These Pennsylvania-based tropical hardwood and outdoor furniture companies grew out of a desire to help and to serve others. Kevin and Christine Yardley, two Harvard graduates, started them after working in the rainforests of Costa Rica as teachers and entrepreneurs, volunteering for the WorldTeach Organization.

Costa Rica is a rich region of biodiversity, accounting for 5% of known species within just .03% of the globe’s surface area. Despite having National Parks and Reserves that occupy 26% of its land area, Costa Rica continues to lose approximately 20,000 acres to deforestation annually, primarily from conversion of forested land to crops, cattle grazing and roads. Government incentives and voluntary programs encouraged forest restoration by private owners. "The reforestation effort in Costa Rica has done a great deal of good," explains Kevin Yardley. "If you look at El Salvador or Haiti, countries that are 99% deforested, they have little prospects... A country without trees has no future."

Passionate about the environment and interested in creating jobs that would encourage local community development, the Yardleys started Diamond Teak and in 1992 bought an old cattle farm to start a plantation growing about seventy tropical hardwood species including endangered Costa Rican natives such as mahogany, purpleheart and cocobola rosewood. Today, their 12 plantations protect more than 1,000 acres of primary and secondary jungle and provide habitat for a diverse range of flora and fauna. Diamond Teak’s plantations are certified in accordance with the principles of the Forest Stewardship Council (FSC), a nonprofit organization promoting responsible forest management.[10] These practices are evident in the company’s efforts to certify their reforestation projects by the FSC-approved Smartwood Program.[11]

The company is also committed to helping the local community in Costa Rica where it operates, supporting the local school with midday meals, desks, and materials for repairs and maintenance. Kevin says that "Strong schools serve everyone. The children of the people we work with will be our accountants, lawyers, and doctors."

[END SIDEBAR]

Product End of Life and Closing the Loop

Deb Darling, Director Packaging Materials and Innovations Initiatives, has spent over two decades at Aveda with a focus on materials research and innovation, developing new packaging design and revamping existing systems. Her long career at the company has led to many of Aveda’s sustainable packaging achievements. Developing containers and materials that meet the needs of the product, are sustainable, and lend themselves to optimal recycling require years of research, design, and testing. Deb shares some of the more recent developments in her area:

“During the last couple of years our focus has been on continuing to develop packaging-related life cycle strategies for Aveda. We’re pushing the industry forward on packaging innovation by exploring bio resins that will not contaminate existing recycling streams, continuing the use of high post-consumer recycled (PCR) content and reaching 100% PCR content for high-density polyethylene (HDPE) in our bottles.”

“Over the years we’ve worked with polymer resin suppliers who are willing to continually improve their processes and reduce contamination to PCR content, and who collaborate well with PCR molders to optimize results. Our suppliers are on the cutting edge of innovation and we help them strive for continual advancement. We frequently visit resin suppliers and recommend improvements in processes, which helps us recommend these resins to our molders. This approach is what makes Aveda unique: we form long-term, extended partnerships and are deeply involved in supply chain conversations.”

Folding Carton Innovation

“One of the exciting things we’ve worked on for the past four years is the first Forest Stewardship Council (FSC) certified high-end folding carton paperboard made from 100% post-consumer waste (PCW). The award winning JPP100 prestige folding carton board has a high luster and bright white printing surface. As a responsible brand within the prestige beauty sector, we needed to elevate product aesthetics while still meeting the Aveda Mission.”

“Our partners on the project Neenah Paper and Johnson Printing and Packaging saw great value in developing this never-before seen product and jumped at the chance to collaborate. After a lot of sampling and tests we launched the first carton with our Invati™ product line, followed by other high-end products, such as Hand Relief™ Night Renewal Serum and Aveda Love™ Composition Oil. We want to expand its use to other product lines and are now on our fourth version, in which we have been able to improve efficiencies and reduce cost. Aveda strives to encourage industry-wide change, and usually only maintains exclusivity on innovations for up to a year before asking partners such as Neenah Paper to expand their sales to our industry peers. “

“We’ve also partnered with R&D on a special initiative to develop natural ingredients in ink pigments for folding cartons and other packaging. One of these is the urukum pigment from the Yawanawa people of Brazil that we use in some of our beauty product formulas. This new product is still in the preliminary stages, but it is looking like a viable option for Aveda to use.”

Continuing Innovation in Post-Consumer Recycled Plastics and Bio-Plastics

“Aveda worked with KW Plastics to develop the first PCR polypropylene resin which is today used by many other companies. We are currently working on a PCR polypropylene flip-top hinge closure for our Enlightener™ Cream Booster package. We believe it will be the first commercialized hinged closure utilizing PCR polypropylene packaging product in our industry.”

“Going forward we’ve begun to use fossil fuel-free bio-plastics and have already launched, in partnership with Braskem, a green polyethylene plastic tube with our Dry Remedy™ products and several other product lines. Green polyethylene is manufactured from renewable sugarcane waste but has the same physical properties as fossil-fuel derived polyethylene and can be recycled in regular polyethylene recycling streams. We are keen to develop packaging products that are easily recycled in residential recycling programs.”

“The very successful FY 2016 launch of the Tulasāra™ product line, says a lot about the quality and great aesthetics we can achieve using environmentally friendly materials. PCR polyethylene was used in the brush handles, the jars are PCR PET, and the JPP100 prestige folding carton board was used in the secondary packaging.”

Innovations in Post-Consumer Recycled Glass

“Historically, post-consumer recycled glass tended to have a green tint with reduced clarity due to how it’s collected, cleaned and reprocessed. After years of collaboration with our supplier, we are the first in the industry to use 20% PCR content clear glass bottles without compromising aesthetics. We’re first launching PCR content clear glass in our 50 ml Composition Oil bottles, and hope to extend this material to other glass packaging such as our Aveda Love™ Composition Oil in the future.”

 

 

Closing the Loop on Caps

The Recycle Caps with Aveda program was to our knowledge the first ever rigid plastic caps recycling program in the United States. It raised awareness about the alarming amounts of plastics polluting our waterways and oceans, and endangering marine life by providing education on the importance of recycling. It inspired vast numbers of people to collect caps, who together prevented approximately 145 million caps from entering our waterways, oceans and landfills. The heightened awareness increased the push for curbside recycling of these materials, resulting in improved recycling collection and processing technology, and higher demand for the material across the industry.

As a result of these changes, the Association of Postconsumer Plastic Recyclers (APR) and others now actively promote leaving caps and closures on plastic bottles for recycling. Caps-on is a good solution because in most cases, shipping individual boxes of caps long distances has a much higher carbon footprint than caps-on recycling which utilizes the existing plastic bottle recycling system. For these reasons, Aveda decided to discontinue the collection of plastic caps and closures in January, 2015. The Recycle Caps with Aveda program was created as a vehicle for change, rather than as the long-term solution for recycling caps that could be implemented on a large scale. A solution is now in place across much of North America for recycling plastic caps and closures.

Deb Darling says, “The program helped us share our knowledge and experiences with others about how the cap recycling can work and its benefits for us and the environment. It also strengthened our partnership with KW Plastics and helped boost their reputation as a company that is doing a lot of cutting edge work. We’ve seen them do good things for many decades, and it’s nice to see them getting recognition. Today we’re working with KW Plastics on several new projects that incorporate post-consumer recycled content into packaging components including bottle closures, pumps and non-dispensing lids. It was a privilege to be part of the Recycle Caps with Aveda program. The impact that it made on the recycling and plastics industries, and the important messages that were shared left a long- lasting impression on me and the many participants who actively supported the program.”

Update on Full Circle Recycling Program

We continued our partnership with g2 revolution, an innovative recycling company focusing on retailers and manufacturers of consumer products (see our 2013-2014 ECC Report [Link]), where we invite consumers to bring empty bottles, jars, tubes and any other Aveda packaging or accessory to an Aveda Experience Center if a local recycling opportunity is not available.

In fiscal year 2015, we collected 32,414 lbs./14,702 kg of waste for the Full Circle Recycling Program, nearly half of which was bottle caps and other polypropylene materials. In analyzing the waste collection, we realized that we were collecting a variety of materials that were outside the scope of the program, including caps from non-Aveda products and recyclables that Aveda employees were contributing. During fiscal year 2016, we saw a shift away from caps to more of the intended materials and an associated decline in the total collected for recycling to 11,656 lbs./5,287 kg.

 

 

 

kg Waste Collected and Recycled

 FY15

FY16

Aerosol and Other Metal Cans

1%

2%

Aluminum Tubes / Cans

6%

1%

Glass Bottles / Jars

10%

12%

HDPE Bottles / Jars

11%

14%

LDPE / Plastic Film

0%

0%

Misc. Recyclable Materials

19%

38%

PET and Plastic Bottles - Contaminated

4%

9%

Paper - All Products

2%

4%

Plastic - PP and Caps

46%

11%

Plastic to Oil / Waste to Energy

0%

7%

Textiles / Accessories / Tools / Pumps / Tubes

1%

1%

 

Recycling and Social Innovation

Dan Schibel, Aveda’s Manager of Global Sustainability attended a conference in early 2016 where he heard a talk about adults with developmental disabilities working in an office environment. That sparked an idea for a similar effort at Aveda that he developed in fiscal year 2016 for implementation the following year:

“Our Blaine campus has two separate facilities; one houses our manufacturing, office and R&D activities, while the other is our distribution center, which also includes our customer service support functions. Within the distribution facility, there is a section where employees fulfill orders for salons and Aveda Experience Centers around the world. We use a lot of boxes in that area and also recycle a lot of boxes there as well. We will be engaging a crew of adults with disabilities to assist with assembling shipping boxes for a few hours each day. Their efforts will free up the person who used to assemble the boxes to gather boxes throughout the facility that had previously been bound for recycling and instead bring them to the new reassembly crew for reuse.”

“This is a win-win for everyone. The adults with disabilities get the opportunity to step out into the community doing a meaningful job and we hope that this is just a first step for them becoming more involved in everyday activities in the community. We’ve also found that the cost savings from reusing more boxes rather than purchasing new ones covers the program expenses of hiring the crew. The understanding of what this group of underserved people can do has already prompted us to look for other opportunities within our facilities to work with disadvantaged adults.”

 

 

 

The People of Aveda and the Aveda Experience

Our geographic distribution includes North America, Europe, Middle East, Asia and Australia. Professional salons and spas remain our core distribution channel with supplementary channels that include Aveda-owned and independent retail Experience Centers, salons and spas, Institutes that train industry professionals, select department stores and specialty retailers, and online sales through aveda.com.

 

The Aveda Distribution Network, July 2016

 

Department and Specialty Stores

Retail, Format, and Travel Stores

Salons and Spas

Online and Other

U.S.

93

127

5,623

1

Canada

0

11

760

1

Other Americas

0

1

0

25

Europe, Middle East, Africa

78

16

1,817

19

Asia, Pacific

66

69

930

3

 

We consider the employees of Aveda to be our key stakeholders. They are the people that hold us accountable to our Mission, who create, make, and deliver the high-performance products that set us apart in the beauty industry, and who contribute their time and energy to the communities in which we operate and the places that they live. As of June 30, 2016, Aveda had approximately 3,100 employees around the globe (2,500 in the U.S. and 600 at International locations).

At our Blaine campus, where most of our non-sales employees are located, we are a predominately female-staffed organization (61%) and about two-thirds of our senior executives, managers and professionals are women. About 40% of our manufacturing and distribution employees are female. Our minority population in Blaine–16% of the staff–reflects the general demographics of the Twin Cities, and has grown since the last report.

Our in-store retail employees and our employees who provide support and education to the Aveda network make up the majority of our U.S. employee population. About 80% of our total U.S. workforce is female and about 30% of the total are temporary or on-call employees. At Blaine, approximately 17% were temporary or on-call employees during fiscal year 2016.

Aveda’s Human Resources (HR) function was part of the Estee Lauder Companies’ HR Transformation initiative. This initiative began in 2015 and continues to evolve. Transactional and administrative tasks are handled by an Employee Services team in New York. This allows our Blaine-based HR team to focus on more strategic work allowing them to better partner with the business. A new HR system allows employees and managers to easily access information and initiate their own transactions.

We continue to encourage employees to incorporate environmental and social responsibility into both their work and their lives. HR has a significant role in maintaining this core cultural aspect through talent acquisition, talent development and positive employee relations. Our living the mission goal is still the first business goal in all Aveda employees’ Performance Development Plans. In fiscal year 2016, we increased (doubled) the weighting of this goal to be worth 10% of the total for business goals in all employee reviews. Because they care deeply about the Aveda Mission, we believe they work harder to find more eco-intelligent ways to do business.

 

Aveda Blaine Campus Employees (June 2016)

JOB CATEGORY

TOTAL

%
FEMALE

%
MALE

%
WHITE

%
MINORITY

First/Mid-Level Officials and Managers

233

63%

37%

88%

12%

Professionals

101

70%

30%

93%

7%

Technicians

27

70%

30%

89%

11%

Sales Staff

4

100%

0%

100%

0%

Administrative Support Workers

100

96%

4%

94%

6%

Craft Workers

11

0%

100%

100%

0%

Operatives

154

24%

70%

65%

35%

Laborers and Helpers

74

74%

26%

59%

41%

Service Workers

18

67%

33%

61%

39%

Total Blaine Employees

722

61%

39%

84%

16%

WE ARE OBTAINING GLOBAL NUMBERS TOO

 

 

 

 

 

 

Aveda Mission Leader

Aveda Mission Leader™ is our online sustainability engagement platform designed to deepen employee understanding about the environment and their commitment to the Aveda Mission through gamification and social normalization. Established in fiscal year 2014, it has grown to include over 750 Aveda employees. The platform delivers educational learning at an individualized pace and level for each employee and serves as a means of engaging the Aveda community in actions within their professional and personal lives.

Participants pick from diverse “Projects” ranging from zero waste to saving water, health and wellness, green salon certification, green living, mindful eating, and many more. Within each project, there are specific learnings that the participant pursues that explain the project’s purpose, specific actions to complete the project, and why their actions matter. Participants update their progress through to completion, earning points for each action completed and achievement badges as they advance through the levels; with incentives offered on a regular basis to promote participation. From fiscal years 2014 to 2016, Aveda Mission Leader also served as an organizing platform for community volunteer activities for both Aveda initiatives (Activism for the Earth) and employees’ own volunteer opportunities (more information is available in The Ways We Give Back to Society section).  From its inception to the end of fiscal year 2016, 87,114 actions had been completed. Beginning in fiscal year 2017, coordination and tracking of Aveda volunteer activities are shifting to the ELC Good Works platform.



[1] Labeling rules are established by the United States Department of Agriculture (USDA) under its National Organic Program (NOP).  A summary of the rules are in the USDA fact sheet Labeling Organic Products.

[2] Certified by Quality Assurance International (QAI) to NOP standards. Also certified to the EC Council Regulation 834/2007 for the European Union, Canadian Certified Organic Equivalency and Japan Certified Organic Equivalency.

[3] Certified by QAI.

[4] Certified by ECOCERT Greenlife according to COSMOS standard. The COSMOS-standard AISBL* is a not-for-profit, international association registered in Belgium. The AISBL was founded in 2010 by the five main European (and-missing copy international) organizations involved with organic and natural cosmetics standards: BDIH in Germany, Cosmebio and Ecocert in France, ICEA in Italy, and Soil Association in the UK.

[5] Certified by ECOCERT Greenlife according to ECOCERT standard.

[6] RSPO is the Roundtable on Sustainable Palm Oil.

[7] Our Blaine manufacturing operations include storing ingredients and packaging received from vendors, physical processing (mixing, heating, cooling) of ingredients in batches to formulate products and filling operations; our Distribution Center receives products from the manufacturing facility and external vendors manufacturing products for us along with returns from Aveda stores and our customers (salons, spas, etc.) and fulfills orders for Midwest and international customers along with shipping to East and West Coast distribution centers; our logistics team arranges for shipping of incoming and outgoing materials, ingredients, packaging and products.

[8] Our wind energy purchases offset 100% of the energy used by our primary manufacturing facility in Minnesota, our company headquarters, the Aveda Institute Minneapolis, and our Aveda-owned Experience Centers, Salons and Institutes in New York City.  We also purchase CO2 offsets for our aerosols which are made by a third party. Read more at: http://www.aveda.com/living-aveda/responsible-manufacturing.

[9] While we track all wastes generated at our Blaine facilities, some of the wastes are not tracked by weight and are not included in the reported recycled, reused and waste-to-energy calculations. These wastes include raw material containers (number), bulk liquids (gallons), industrial wastewater (gallons), antifreeze (gallons), fluorescent lamps (number) and waste oil (gallons).

[10] FSC License Code: FSC-C005190 and FSC Certificate Code: RA-COC-003200 (http://info.fsc.org/details.php?id=a0240000005sRcJAAU&type=certificate&return=index.php#result)

[11] FSC License Code: FSC-C021353 and FSC Certificate Code: RA-FM/COC-000152 (http://info.fsc.org/details.php?id=a0240000005sVp0AAE&type=certificate&return=certificate.php)