What's Happening?
Coty has released its 2025 sustainability report, highlighting significant strides in environmental, social, and governance (ESG) initiatives. The company has introduced refillable products, including
a lighter glass bottle for its Boss The Scent fragrance and a refillable mascara under the Max Factor brand. Coty is also focusing on reducing its carbon footprint by setting decarbonization targets for suppliers and reducing the carbon impact of advertising and merchandising. The company has achieved a 23% reduction in packaging, surpassing its 2030 target of 20%, and aims to increase the use of post-consumer recycled materials to 30% by 2030. Additionally, Coty is working on ingredient transparency and has secured 100% RSPO certification for palm oil sourcing.
Why It's Important?
Coty's sustainability initiatives reflect a growing trend in the beauty industry towards eco-friendly practices. By focusing on refillable products and reducing packaging, Coty is addressing consumer demand for sustainable options and reducing environmental impact. The company's efforts to decarbonize its supply chain and operations align with global climate goals and can enhance its brand reputation. These actions may also influence other companies in the industry to adopt similar practices, contributing to broader environmental benefits. The focus on ingredient transparency and sustainable sourcing can improve consumer trust and loyalty, potentially leading to increased market share.
What's Next?
Coty plans to start formal reporting on its eco-design tool, the Carbon Kind score, in the 2026 financial year. The company will continue to work with organizations like SPICE to overcome challenges related to sustainable materials. As Coty progresses towards its 2030 goals, it may face challenges in balancing cost and sustainability, particularly with higher material costs for sustainable alternatives. The company's ongoing collaboration with suppliers and retailers will be crucial in achieving its sustainability targets and promoting circular economy practices.
