Estee Lauder Cos Inc/The

##### (4.11.8) Describe the process your organization has in place to ensure that your external engagement activities are consistent with your environmental commitments and/or transition plan

_Climate: ELC's participation in climate change policy is led by the Global Corporate Citizenship and Sustainability"
"Further, as policymakers focus more on passing legislation related to climate issues, the Global Corporate Citizenship and Sustainability and Global Public Affairs teams align with internal stakeholders as well as external associations and partners to support or shape those efforts. Our public policy priorities are reviewed periodically with leadership for alignment with our goals and commitments. [...] Further, as policymakers focus more on passing legislation related to climate change and/or water issues, the Global Corporate Citizenship and Sustainability and Global Supply Chain team will ensure alignment with internal stakeholders, such as our Global Public Affairs team, as well as external associations and partners to support or shape those efforts. Our public policy priorities are reviewed periodically with leadership for alignment with our goals and commitments."
"ELC's Global Corporate Citizenship and Sustainability team has a set of standards to evaluate carbon offset purchases including their vintage and technical criteria. The Global Public Affairs team conducts risk assessments on potential carbon offset projects to review for geopolitical sensitivities and concerns. The Communications team will screen vendors to ensure their reputation aligns with ELC's values and there is no negative media coverage. The Legal Marketing team serves as a general reviewer of potential carbon offset projects to help ensure there are no concerns from a legal perspective. [...] ELC's Global Corporate Citizenship and Sustainability team has a set of standards to evaluate carbon offset purchases including their vintage and technical criteria. The Global Public Affairs team conducts risk assessments on potential carbon offset projects to review for geopolitical sensitivities and concerns. The Communications team will screen vendors to ensure their reputation aligns with ELC's values and there is no negative media coverage. The Legal Marketing team serves as a general reviewer of potential carbon offset projects to help ensure there are no concerns from a legal perspective.

ELC's participation in climate change policy is led by the Global Corporate Citizenship and Sustainability and Global Public Affairs teams and our individual brands implement initiatives related to climate change or other initiatives and report on these to the Global Corporate Citizenship and Sustainability team for review. We elevated citizenship and sustainability in our governance structure so that the team responsible for those efforts, led by our Senior Vice President for Global Corporate Citizenship and Sustainability, reports directly to the Executive Chairman and CEO. This change, in particular, reflects our belief that social impact and sustainability are essential to our success as a business and our responsibility as a company. Further, as policymakers focus more on passing legislation related to climate change/water issues, the Global Corporate Citizenship and Sustainability team will ensure alignment with internal stakeholders such as our Global Public Affairs team as well as external associations and partners to support or shape those efforts.

Strong oversight of our work is critical to our success, which is why we've put in place a robust social impact and sustainability strategy overseen by the Nominating & ESG Committee of our Board of Directors. Additionally, our newly established ESG Management Committee focuses on internal oversight of social impact and sustainability initiatives, helping drive greater horizontal integration and accelerate progress toward our objectives. [...] Our Nominating and ESG Committee has oversight responsibility for our Company's environmental, social, and governance activities and practices, including citizenship and sustainability matters. The ESG management committee provides updates at Nominating and ESG Committee meetings on topics such as climate, social impact and sustainability, progress toward goals, and other related matters. Periodic updates are also provided to the Board on these matters. [...] Climate strategy, initiatives, and progress towards goals are reviewed at regular meetings of the Nominating and ESG Committee of the Board of Directors. Furthermore, the creation of SBTs was management-led, and the targets were approved by our Executive Chairman and our CEO. The Climate Action Steering Committee comprises senior leaders from various functions who are members of our Executive Leadership Team (ELT) or report to members of the ELT. The committee is responsible for assessing and managing climate-related risks and opportunities. In addition, the committee evaluates where we can best apply our capital to advance the Company's climate goals. The Climate Action Management Committee is responsible for implementing and operationalizing initiatives needed to achieve our SBTs. This committee includes various management-level employees who oversee special projects and partnerships, the development of internal policies and communications strategies, and engagement with brands and regions. The committee periodically reports to the Climate Action Steering Committee.

###### GOVERNANCE STRUCTURE

Our company's SI&S initiatives are embedded in our culture and overall corporate strategy and help drive innovation, growth, and efficiency. We believe that effectively managing this work will be an important part of our future success. Our governance structure enables effective and responsive decision-making on climate, so that our Climate Transition can be actively and responsibly managed from high-level strategy to detailed implementation.

###### BOARD OF DIRECTORS RESPONSIBILITIES

The Board of Directors is responsible for providing general direction and oversight of the management of the Company's business and affairs, including social impact and sustainability matters. The responsibility of the Nominating and ESG Committee of the Board includes oversight of the Company's environmental, social, and governance activities and practices, including citizenship and sustainability matters. This Committee reports regularly to the Board, and receives periodic updates from management regarding integration of SI&S into our strategy and business operations.

###### EXECUTIVE & MANAGEMENT RESPONSIBILITIES

The sustainability strategic pillar is sponsored by our Chief Executive Officer (CEO) and our Executive Chairman. Citizenship and sustainability work is led by the Senior Vice President (SVP) of Global GCCS, who reports to our President and CEO. The SVP of GCCS provides periodic updates on the company's citizenship and sustainability performance to the Nominating and ESG Committee of the Board. Other members of senior management help to drive initiatives concerning SI&S, particularly through participation in the management committees below.

###### Climate Action Steering Climate Action Climate Pillars Committee Management Committee Accountability for implementation and tracking

of climate initiatives lies with our functional

departments and teams. Relevant teams are

responsible for different aspects of our Climate

Executive Leadership Team (ELT) or report to achieve our science-based targets. This

Transition Plan, with groups meeting periodically

members of our ELT and is responsible for committee includes various management-

assessing and managing climate-related risks and level employees who oversee special projects

opportunities. In addition, the committee evaluates and partnerships, the development of internal

where we can best apply our capital to advance policies and communications strategies, and

ELC's climate goals. engagement with our brands and regions. The

committee meets periodically and reports to the

Climate Action Steering Committee.

Among other accountability mechanisms, we consider achievement of social impact and sustainability goals as one component in executive
and non-executive officers' compensation decisions. In particular, we incorporate specific goals tied to our broader SI&S strategy into
performance reviews for key employees, and compensation decisions are made based on their achievement.

Our ESG strategy is further directed by individual Environmental, Social, and Governance subcommittees composed of senior leaders and subject matter experts. The Environmental, Social, and Governance subcommittees meet periodically to discuss, harmonize, and accelerate social impact and sustainability initiatives across the business, driving progress toward related goals and commitments. The subcommittees are responsible for reviewing the information in this report, including the focus areas identified through our priority issues analysis. [...] The Nominating and ESG Committee of our Board of Directors (the "Board") regularly receives updates on these and other initiatives.

###### POLICY ADVOCACY

We support a lower-carbon future. One of the ways we do this is through participation in coalitions which seek to influence policy related to climate action. For example, we are a member of Business for Social Responsibility (BSR), the Sustainable Packaging Initiative for CosmEtics (SPICE), the Sustainable Packaging Coalition, Sustainable Brands, Business Coalition for a Global Plastics Treaty, RE100, and EV100. We also help create spaces for collective action. Since 2017, we have sponsored Climate Week NYC, an annual climate event which convenes stakeholders from various sectors including business and government to take action on climate change.

We also engage in advocacy aligned with key areas of our climate goals. We support the creation and promotion of local, national, and international policies to increase the availability of post-consumer recycled content and recyclable materials for packaging manufacturing. We are participating in the process at the United Nations to establish a treaty to end global plastics pollution. In addition to our direct engagement with policymakers, we are a member of several trade organizations with climate-related policies that align with ours. These include the Personal Care Products Council, the Cosmetics Toiletry and Perfumery Association, and Cosmetics Europe. As policymakers focus more on passing legislation related to climate change, our GCCS team works with internal stakeholders, such as our senior leaders and Global Public Affairs team, as well as external associations and partners to support or shape those efforts. [...] ###### GOVERNANCE STRUCTURE

Our company's SI&S initiatives are embedded in our culture and overall corporate strategy. Our governance structure enables effective and responsive decision-making on climate so that our climate transition can be actively and responsibly managed from high-level strategy to detailed implementation.

We consider achievement of SI&S goals in executive and certain non-executive officers' compensation decisions. In particular, we incorporate specific goals tied to our broader SI&S strategy into performance reviews for key employees, and compensation decisions are made based on their achievement.

###### BOARD OF DIRECTORS RESPONSIBILITIES

The Board of Directors is responsible for providing general direction and oversight of the management of the Company's business and affairs, including SI&S matters. The Nominating and ESG Committee of the Board has responsibilities including oversight of the Company's environmental, social, and governance activities and practices, including citizenship and sustainability matters. This Committee reports regularly to the Board and receives periodic updates from management regarding integration of SI&S into our strategy and business operations.

###### EXECUTIVE & MANAGEMENT RESPONSIBILITIES

The sustainability strategic pillar is sponsored by our Chief Executive Officer (CEO) and our Executive Chairman. Citizenship and sustainability work is led by our Chief Sustainability Officer (CSO), who reports to our President and CEO. Our CSO provides periodic updates on the company's citizenship and sustainability performance to the Nominating and ESG Committee of the Board. Other members of senior management help to drive initiatives concerning SI&S, particularly through participation in the management committees below.

###### Environmental Climate Action Climate Action Subcommittee Management Workstreams

The Environmental _Committee_ Climate Action Workstreams Subcommittee includes our drive the day-to-day

The Climate Action Management

CSO and senior leaders from work of GHG reduction

Committee includes various

various global functions, e.g. initiatives. Relevant teams

management-level employees

Supply Chain, Research & are responsible for different

who oversee special projects and

Development, Finance, and aspects of our climate

partnerships, the development

Legal. The Subcommittee transition strategy, with

of internal policies and

provides strategic direction groups meeting periodically

communications strategies,

and project approvals regarding to coordinate across

and engagement with brands

our climate actions. It is also initiatives. Climate Action

and regions. This Committee is

responsible for assessing and Workstreams report progress

responsible for implementing and

managing climate-related to the Climate Action

operationalizing initiatives needed

risks and opportunities. The Management Committee.

Environmental Subcommittee

meets periodically to align

on priorities.

We believe that effectively managing our social impact and sustainability work will be an important part of our future success. These efforts are led by our Executive Chairman and our President and Chief Executive Officer (CEO) and overseen by the Board of Directors, particularly the Nominating and ESG Committee. Senior leaders from Finance; Global Corporate Citizenship and Sustainability (GCCS); Human Resources; Inclusion, Diversity, and Equity (ID&E); Legal; Research & Development; and Supply Chain, as well as representatives across brands, regions, channels, and functions, drive our social impact and sustainability strategic initiatives and progress toward goals and commitments. [...] Our GCCS function is responsible for managing our social impact and sustainability initiatives. The function is led by the Senior Vice President (SVP) of GCCS, who reports to our Executive Chairman and our President and CEO. The SVP directs a dedicated team that leads corporate-wide sustainability strategy; social impact efforts; and strategic planning and communications around social impact and sustainability, including supporting brand-and region-led sustainability strategies. [...] Climate strategy, initiatives, and progress towards goals are reviewed at regular meetings of the Nominating and ESG Committee of our Board of Directors. Furthermore, the creation of our SBTs was management led and the targets approved by our Executive Chairman and our CEO. [...] We evolved our climate governance structure following the announcement of our SBTs, with the previously established Net Zero Steering Committee becoming the Climate Action Steering Committee. The committee, which comprises senior leaders from various functions who are members of our Executive Leadership Team (ELT) or report to members of our ELT, is responsible for assessing and managing climate-related risks and opportunities. In addition, the committee evaluates where we can best apply our capital to advance the Company's climate goals. [...] In fiscal 2021, we created the Climate Action Management Committee, responsible for implementing and operationalizing initiatives needed to achieve our SBTs. This committee includes various management-level employees who oversee special projects and partnerships, the development of internal policies and communications strategies, and engagement with our brands and regions. The committee reports to the Climate Action Steering Committee on a periodic basis.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]ELC's participation in climate change policy is led by the Global Corporate Citizenship and Sustainability and Global Public Affairs teams and our individual brands implement initiatives related to climate change or other initiatives and report on these to the Global Corporate Citizenship and Sustainability team for review. We elevated citizenship and sustainability in our governance structure so that the team responsible for those efforts, led by our Senior Vice President for Global Corporate Citizenship and Sustainability, reports directly to the Executive Chairman and CEO. This change, in particular, reflects our belief that social impact and sustainability are essential to our success as a business and our responsibility as a company. Further, as policymakers focus more on passing legislation related to climate change/water issues, the Global Corporate Citizenship and Sustainability team will ensure alignment with internal stakeholders such as our Global Public Affairs team as well as external associations and partners to support or shape those efforts.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]ELC's participation in climate change policy is led by the Global Corporate Citizenship and Sustainability and Global Public Affairs teams. Additionally, our individual brands implement initiatives related to climate change or other initiatives and report on these to the Global Corporate Citizenship and Sustainability team for review. The team responsible for social impact and sustainability efforts reports into our Chief Sustainability Officer, who reports directly to the Executive Chairman and CEO. This reflects our belief that social impact and sustainability are essential to our success as a business and our responsibility as a company. Further, as policymakers focus more on passing legislation related to climate issues, the Global Corporate Citizenship and Sustainability and Global Public Affairs teams align with internal stakeholders as well as external associations and partners to support or shape those efforts. Our public policy priorities are reviewed periodically with leadership for alignment with our goals and commitments. 

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]No, and we do not plan to have one in the next two years