Strategy & ESG

Strategic initiatives and sustainability performance

92% COVERAGE• HIGH

Overall ESG Score

82/100

+6.0%

GHG Reduction

52%

+8.0%

Sustainable Sourcing

78%

+4.0%

Renewable Energy

82%

+12.0%

ESG Score vs Peers

Sustainability Targets Progress

GHG Emissions Reduction (vs 2015)52%

Target: 70% by 2030

Renewable Energy82%

Target: 100% by 2030

Water Reduction (per product)34%

Target: 50% by 2030

Plastic Packaging Recycled23%

Target: 100% by 2025

Sustainable Sourcing78%

Target: 100% by 2025

Strategic Capabilities

Key Strategic Initiatives

Productivity Program (Cost Savings)

MEDIUM RISK

Category

cost

Timeline

2022-2025

Impact

€2B cumulative by 2025

KPIs Impacted: ebit_margin_pct, fcf_m

Power Brands Focus (Portfolio Rationalization)

LOW RISK

Category

portfolio

Timeline

2021-2024

Impact

Divest €1B underperforming brands

KPIs Impacted: organic_sales_growth_pct, roic_pct

Prestige Beauty Acquisition

HIGH RISK

Category

growth

Timeline

2023-2025

Impact

Add 2pp to organic growth

KPIs Impacted: revenue_m, organic_sales_growth_pct

Net Zero by 2039 (Scope 1-3)

HIGH RISK

Category

esg

Timeline

2020-2039

Impact

Reduce carbon intensity 70% vs 2015

KPIs Impacted: ghg12Intensity, costOfRisk

Emerging Markets Acceleration

MEDIUM RISK

Category

growth

Timeline

2019-2025

Impact

EM to represent 60% of revenue

KPIs Impacted: revenue_m, organic_sales_growth_pct

Strategic Assessment

ESG Leadership Position

• Top-tier ESG score (82/100) significantly ahead of peer average (73)
• On track for net-zero by 2039 with 52% GHG reduction achieved vs 2015 baseline
• 78% sustainable sourcing provides supply chain resilience vs regulatory risk
• ESG leadership increasingly valued by institutional investors and consumers

Portfolio Transformation

• €2B productivity program delivering cost savings to fund growth investments
• Portfolio rationalization: divested €1B underperforming brands, focus on "Power Brands"
• Prestige beauty acquisition in progress to shift mix toward higher-margin categories
• EM acceleration: targeting 60% of revenue from emerging markets vs 57% today

Execution Risks

• Prestige beauty integration: high execution risk, cultural fit concerns
• Digital transformation: lagging best-in-class D2C penetration vs competitors
• Plastic packaging target (100% recyclable by 2025): behind schedule at 23%
• M&A track record: mixed results, need to prove value creation capability

Strategy & ESG

Strategic initiatives and sustainability performance

92% COVERAGE• HIGH

Overall ESG Score

82/100

+6.0%

GHG Reduction

52%

+8.0%

Sustainable Sourcing

78%

+4.0%

Renewable Energy

82%

+12.0%

ESG Score vs Peers

Sustainability Targets Progress

GHG Emissions Reduction (vs 2015)52%

Target: 70% by 2030

Renewable Energy82%

Target: 100% by 2030

Water Reduction (per product)34%

Target: 50% by 2030

Plastic Packaging Recycled23%

Target: 100% by 2025

Sustainable Sourcing78%

Target: 100% by 2025

Strategic Capabilities

Key Strategic Initiatives

Productivity Program (Cost Savings)

MEDIUM RISK

Category

cost

Timeline

2022-2025

Impact

€2B cumulative by 2025

KPIs Impacted: ebit_margin_pct, fcf_m

Power Brands Focus (Portfolio Rationalization)

LOW RISK

Category

portfolio

Timeline

2021-2024

Impact

Divest €1B underperforming brands

KPIs Impacted: organic_sales_growth_pct, roic_pct

Prestige Beauty Acquisition

HIGH RISK

Category

growth

Timeline

2023-2025

Impact

Add 2pp to organic growth

KPIs Impacted: revenue_m, organic_sales_growth_pct

Net Zero by 2039 (Scope 1-3)

HIGH RISK

Category

esg

Timeline

2020-2039

Impact

Reduce carbon intensity 70% vs 2015

KPIs Impacted: ghg12Intensity, costOfRisk

Emerging Markets Acceleration

MEDIUM RISK

Category

growth

Timeline

2019-2025

Impact

EM to represent 60% of revenue

KPIs Impacted: revenue_m, organic_sales_growth_pct

Strategic Assessment

ESG Leadership Position

• Top-tier ESG score (82/100) significantly ahead of peer average (73)
• On track for net-zero by 2039 with 52% GHG reduction achieved vs 2015 baseline
• 78% sustainable sourcing provides supply chain resilience vs regulatory risk
• ESG leadership increasingly valued by institutional investors and consumers

Portfolio Transformation

• €2B productivity program delivering cost savings to fund growth investments
• Portfolio rationalization: divested €1B underperforming brands, focus on "Power Brands"
• Prestige beauty acquisition in progress to shift mix toward higher-margin categories
• EM acceleration: targeting 60% of revenue from emerging markets vs 57% today

Execution Risks

• Prestige beauty integration: high execution risk, cultural fit concerns
• Digital transformation: lagging best-in-class D2C penetration vs competitors
• Plastic packaging target (100% recyclable by 2025): behind schedule at 23%
• M&A track record: mixed results, need to prove value creation capability

Intelligence Console

Strategy & ESG

ESG Score vs Peers

Sustainability Targets Progress

Strategic Capabilities

Key Strategic Initiatives

Strategic Assessment

Strategy & ESG

ESG Score vs Peers

Sustainability Targets Progress

Strategic Capabilities

Key Strategic Initiatives

Strategic Assessment