2. Estee Lauder Companies The Beauty of Responsibility $10.2 billion global leader in Prestige Cosmetics. Company was started in Queens, NYC, New York in 1946 We manufacture at facilities in Canada, Europe, and the U.S. and some of our products are produced by third- party manufactures. We have 30 brands of cosmetics sold in over 150 countries.

4. 4 Social Responsibility: A Family Values company; we are responsible citizens in every community in which we operate Environmental Stewardship: Responsible use of materials, water, air, and energy Business Optimization: Pursue profit but never at the expense of quality, service, the environment or Corporate reputation

5. ACTIVELY CwhatARING FOR THE EARTH Green Chemistry Program – reducing our environmental impact through greener raw materials Recycling Programs – 79% of Global Supply Chain waste is recycled On-site Solar Energy Systems – Total of 1400 KW at 5 locations Green Electricity Purchase – Supporting the Renewable Energy Industry – RECs & Carbon Offsets Carbon Footprint Calculation – reducing our Green House Gas (GHG) Emissions through energy efficiency ISO 14001 Environmental and Safety Management (ESMS) certification – Continuous Improvement of Global Supply Chain 5

6. Emissions from Operations

7. Our Goal Zero Waste by FY2020 Our progress in Fy2012 towards zero waste by Fy2020 37.5% increase in recycling rate at our Manufacturing and distribution sites between Fy2008-Fy2012 79%Waste recycled from Manufacturing and Distribution operations. 100% Waste recycled or converted to energy by our Manufacturing and distribution sites.

8. Energy Reduction Goal We have already reduced our annual energy consumption by 30% since 2005. We are seeking and additional 10% reduction over the next few years. We purchase wind power for our US facilities and hydro power for our Canadian and European Plants to offset our carbon emissions. The overall goal is to reduce KWH under the roof and install solar panels on the roof where feasible to negate CO2 emissions.

9. Melville, NY 700KW Solar Installation

10. Melville-ASR Solar System Automated Storage & Retrieval Facility 38,500 Pallet locations 7 automated stacker cranes operate in a lights out environment. The 700 KW system produces @ 92% of the annual KWH requirements to operate the facility.

11. Oakland, NJ 600KW

12. Oakland Solar Produces 1/3 of the annual KWH requirements. 3,450 panels. Installed 6 ½ years ago. Side benefit that we did not anticipate is the cooling impact on the warehouse. The panels shade 75% of the roof structure from the sun. (-10F)

13. Aveda Facility Compton, CA

14. Compton, California 65KW System We will received a $83K rebate from the State of California for the project. We will receive a 30% Federal tax credit @ $150K Net project cost $277K Project payback @ 6.4 years. The system produces 85% of the annual energy requirements for the facility.

15. Blanie, MN 45 KW Solar System

16. Lachen, Switzerland 45KW Solar

17. So you can’t just install Solar! You need to reduce the KWH under the roof as much as the power you produce on the roof. T-5 Lighting / LED Lighting Variable Speed Drives EMS High efficient HVAC Energy Assessments Lighting controls Energy efficient motors Compressed air leak analysis.

18. Summary You need an overall company wide commitment to social responsibility. You need an overall commitment to recycling, packaging reductions, energy conservation, water conservation. Most importantly you need employee engagement if you want to succeed. Questions Thank you! CSR The Beauty Of Responsibility www.elcompanies.com/PdfLibrary/2012ELCCRReportTheBeautyResponsibility.pdf