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››Case study: How Oriflame reduces its GHG emissions

Case study: How Oriflame reduces its GHG emissions

By Gerasimos
September 24, 2021
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Oriflame is a global beauty company, with a presence in over 60 markets and six production facilities in four countries (Poland, China, Russia and India). Oriflame has been working to reduce its climate impact since 2010  Tweet This!, when it started its annual calculation of operational greenhouse gas emissions according to the Greenhouse Gas Protocol. Since then, several initiatives have been implemented to reduce Oriflame’s baseline emissions.

This case study is based on the 2019 Sustainability Report by Oriflame  that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

By implementing a company-wide emissions reduction programme in 2010, Oriflame has reduced its absolute emissions by 48% since then. In order to reduce its GHG emissions Oriflame took action to:

  • implement an energy audit programme
  • reduce logistics emissions
  • achieve green building certifications

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What are the material issues the company has identified?

In its 2019 Sustainability Report Oriflame identified a range of material issues, such as economic and value creation, sustainable sourcing, human rights, sustainable packaging. Among these, reducing its GHG emissions stands out as a key material issue for Oriflame.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Oriflame engages with:

To identify and prioritise material topics Oriflame engaged with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Employees

 

 

 ·      Employee NPS – quarterly survey collecting information and feedback on important elements of employee satisfaction and experiences

·      CEO Connect – annual live broadcast where employees ask the CEO questions both during and in advance of the event

·      Continuous trainings and feedback, e.g. the Oriflame way

·      Dialogue and sharing through Oriflame’s intranet and internal social media
Consultants

 

 

 

 

 ·      Consultant NPS – permanent feedback from Consultants about experiences and possible improvements

·      Business meetings, trainings, conferences and events

·      Sustainability study – through a web panel collecting information on what Oriflame’s Consultants prioritise most regarding sustainability
Investors

 

 

 

 ·      Meetings/calls with investors

·      Conference calls for the financial community in connection to quarterly reports

·      Attending seminars for the financial community

·      Corporate affairs meetings incl. Direct Selling Association (DSA) meetings

·      Yearly roadshows

·      Responding to ongoing investor questions and data reporting requests
Consumers

 

 

 

 ·      Consumer research, primarily product focused

·      Consumer surveys, sometimes including Oriflame Consultants in their role as consumers

·      Oriflame Brand Image Index, OBII (Annual)
Suppliers

 

 

 

 ·      Regular meetings/site visits with Oriflame teams regarding purchasing, packaging etc.

·      Regular sustainability site audits

·      Supplier self-assessment survey
NGOs

 

 ·      One-on-one meetings discussing both general strategy and more specific topics

·      Discussions at industry events
Society

 

 

 ·      Participation in industry initiatives and standardisation bodies

·      Community involvement, including Oriflame Foundation initiatives

·      Participation in conferences and events

What actions were taken by Oriflame to reduce its GHG emissions?

In its 2019 Sustainability Report Oriflame reports that it took the following actions for reducing its GHG emissions:

  • Implementing an energy audit programme
  • Oriflame implemented an energy audit programme at its factories and offices in 2011 and has, since then, annually conducted energy audits with a focus on environmental sustainability, including energy efficiency, water consumption and waste. The results have helped Oriflame identify areas of improvements and establish energy saving programmes.
  • Reducing logistics emissions
  • Oriflame has developed a logistics programme to gradually consolidate local warehouses and move its product sourcing, catalogue printing and Global Distribution Centres closer to its major markets. Since 2010, Oriflame has reduced its emissions from global logistics transportation by 20% per pallet shipped. Oriflame is continuously reviewing packaging and loading routines to fit more into each truck and container. When selecting road carriers, a minimum 85% of the substituted equipment should meet the environmental standard Euro 4, Euro 5 or Euro 6.
  • Achieving green building certifications
  • Oriflame seeks to certify all its new construction and major renovations. In 2015, Oriflame built two new manufacturing sites in Noginsk, Russia and Roorkee, India with LEED® certifications. LEED® is a green building certification recognising best-in-class sustainable building practices. The following year, Oriflame’s main office in Moscow was BREEAM certified – another green building certification that helps drive sustainable improvements through operational efficiency. Oriflame’s factories in Russia and Poland are annually assessed by EcoVadis – a scorecard to assess environmental, social and ethical risks. In the last two years, Oriflame received gold certification, the highest score, for both sites and its factory in Poland was placed among the top 5% of companies assessed by EcoVadis.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 305-1 Direct (Scope 1) GHG emissions

2) Disclosure 305-2 Energy indirect (Scope 2) GHG emissions

3) Disclosure 305-3 Other indirect (Scope 3) GHG emissions

4) Disclosure 305-4 GHG emissions intensity

5) Disclosure 305-5 Reduction of GHG emissions

 

Disclosure 305-1 Direct (Scope 1) GHG emissions corresponds to:

Disclosure 305-2 Energy indirect (Scope 2) GHG emissions corresponds to:

Disclosure 305-3 Other indirect (Scope 3) GHG emissions corresponds to:

Disclosure 305-4 GHG emissions intensity corresponds to:

Disclosure 305-5 Reduction of GHG emissions corresponds to:

 

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References:

1) This case study is based on published information by Oriflame, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original at the link:

https://investors.oriflame.com/sites/default/files/media/Oriflame_2019_Sustainability_Report.pdf

Note to Oriflame: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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