Corporate Responsibility Environmental Report by rak11421

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									                             Corporate Responsibility
                             Environmental Report
                             Updated February 6, 2009




                             Avon Products, Inc.
                             1345 Ave of Americas
                             New York, NY 10105
                             212-282-5000
                             www.avoncompany.com



Avon Corporate Responsibility Environmental Report 11.2008   1
                             Our commitment to the environment has been deeply rooted in Avon’s
                             principles for more than a century. At our locations worldwide, we remain
                             committed to reducing our global environmental footprint by reducing
                             waste, recycling, conserving energy and water and monitoring and
                             reducing greenhouse gas emissions. We are dedicated to ensuring
                             compliance with environmental regulations around the world, and we
                             strive to continuously improve our environmental performance.

                             In 2004, we established environmental goals and targets for 2008
                             and have made progress in pursuit of these goals. We encourage you to
                             read about our progress in the following pages, and we hope you will
                             return to this site for updates as we work to meet our commitment to the
                             environment.



                             While we face challenges that are typical of any global
                             organization that strives to reduce environmental impacts, we
                             remain determined to address them, and we are more committed
                             than ever to meeting our environmental goals and our
                             stakeholders’ expectations.




Avon Corporate Responsibility Environmental Report 11.2008                                           2
Table of Contents


Hello Green Tomorrow Chairman’s Task Force ........................................................................ 4

Global Manufacturing Operations Highlights from 2001 to 2007 ............................................... 5

Environmental Governance and Management .......................................................................... 5

Environmental Policy ................................................................................................................. 6

External Environmental Assurance............................................................................................ 6

Environmental Management Certification .................................................................................. 6

Online Stores ............................................................................................................................ 7

Product Shipping........................................................................................................................ 7

Packaging .................................................................................................................................. 8

Sustainable Building Design ...................................................................................................... 9

Environmental Regulatory Compliance...................................................................................... 9

Global Environmental Metrics .................................................................................................. 13

Energy Efficiency ..................................................................................................................... 13

Energy Consumption ............................................................................................................... 14

Water Consumption ................................................................................................................. 15

Recycling Efficiency ................................................................................................................. 16

Waste Management................................................................................................................. 17

Greenhouse Gas Emissions .................................................................................................... 18




Avon Corporate Responsibility Environmental Report 11.2008                                                                                       3
                                         Hello Green Tomorrow Chairman’s
                                         Task Force
                                         In addition to the ongoing work of the Avon environmental team,
                                         in July 2008 Avon Chairman and CEO Andrea Jung launched
                                         the Hello Green Tomorrow Chairman’s Task Force. The goal of
                                         the Task Force is to find new and creative ways to address the
                                         imperative of environmental stewardship and to further engage
                                         our mid-level associates on environmental issues. The Task
                                         Force is a cross-functional and cross-regional group of manager-
                                         and director-level associates from Avon offices around the world
                                         whose varied perspectives, experience and functional expertise
                                         inspire our thinking about new, “out-of-the-box” ways to create
                                         an even greener, more sustainable tomorrow at Avon.

                                         The first meeting of the Task Force took place on July 30 and 31
                                         in New York City to establish goals, identify major areas of
                                         environmental impact and develop initial ideas that can broaden
                                         Avon’s efforts to become more environmentally responsible.
                                         Individual subcommittees meet by conference call and in person
                                         to develop ideas and solutions in their areas of assignment, and
                                         recommendations and findings are reported to management and
                                         relevant areas of Avon.

                                         Looking Ahead
                                         We have high hopes for the Task Force and its
                                         ability to identify new ideas for Avon’s
                                         environmental initiatives around four
                                         workstreams, which include the development of a
                                         green culture, the journey to a paperless sales
                                         model, product packaging and development and
                                         logistics and transportation.




Avon Corporate Responsibility Environmental Report 11.2008                                                  4
Highlights by the Numbers
•   Energy consumption per unit
    decreased by 35 percent
•   Water consumption per unit
    decreased by 10 percent
•   Greenhouse gas (GHG)
    emissions per unit decreased
    29 percent




                                         Avon has reduced thousands of pounds of pollution and saved
                                         millions of dollars through its energy- and waste-mitigation
                                         strategies. As demonstrated in the chart above, we have made
                                         significant progress since 2001. We have reduced our overall
                                         energy consumption per unit produced by 35 percent, water
                                         consumption per unit by 10 percent and greenhouse gas
                                         emissions per unit by 29 percent.
                                         In addition, we work diligently to ensure that we meet, if not
                                         exceed, the environmental requirements of the countries in
                                         which we operate, and we continue to incorporate internationally
                                         approved standards for environmental management into our
                                         systems. Our objective is for all Avon facilities to demonstrate
                                         steady progress in future reporting periods.




Avon Corporate Responsibility Environmental Report 11.2008                                                  5
                                         Environmental Policy
                                         Our environmental policy mandates the efficient use of
                                         resources through effective waste minimization and recycling
                                         practices, the improvement of environmental quality in our
                                         operations and products throughout their lifecycle, and
                                         continuous improvement toward our environmental goals.
                                         Our policy requires that we:
                                         •   Conduct our operations in a manner that demonstrates our
                                             respect for the environment through the efficient use of
                                             natural resources, waste minimization, reuse and recycling
                                             practices.
                                         •   Meet or exceed all environmental laws and regulations of
                                             the countries and communities in which we operate.
                                         •   Continue to develop processes, practices and procedures
                                             that improve the environmental quality of our operations and
                                             our products across their life cycle, from initial design to
                                             ultimate disposal.
                                         •   Continuously improve our environmental management
                                             system and measure progress towards environmental goals.



                                         External Environmental Assurance
                                         Avon has implemented environmental management systems at
                                         each of its Avon-owned manufacturing sites around the world. In
                                         addition, we draw on the expertise of a well-developed network
                                         of independent environmental management organizations, which
Our manufacturing facilities are
                                         helps us stay connected and abreast of emerging trends in
audited by an independent third-         environmental management.
party every three years for
environmental compliance and             Maintaining an environmental management system, however,
adherence to Avon’s                      requires consistent external monitoring. To support our
environmental management                 environmental objectives and to assist our internal team of
                                         environmental professionals, we regularly engage leading
systems.                                 environmental consultants to audit our global manufacturing
                                         facilities. Our manufacturing facilities are audited by an
                                         independent third-party every three years for compliance with
                                         applicable environmental regulations. Upon learning of an event
                                         of noncompliance, our environmental management team
                                         immediately prepares and enacts a corrective action plan.


                                         Environmental Management
                                         Certification
                                         As of 2008, our largest manufacturing plants—in Brazil, China
                                         and Poland—have received ISO 14001 certification, the
                                         international standard for environmental management practices.
                                         Our plant in the Philippines has also attained ISO 14001
                                         certification. In addition, our manufacturing facility in Mexico
                                         received the Clean Industry Certificate from the federal
                                         Environmental Protection Agency in 2008, which requires an
                                         effective environmental management system. Currently, over 60
                                         percent of our production volume is produced at sites with ISO
                                         14001 certification.

Avon Corporate Responsibility Environmental Report 11.2008                                                  6
Avon Romania’s Journey
Towards a Paperless                      Online Stores
Workstream                               Our ability to leverage technology enables us to further reduce
In February 2008 Avon Romania            our environment impact. Approximately 150,000 US Avon Sales
                                         Representatives operate internet businesses, and more than 70
launched “Avon Romania Goes              percent of orders in the United States are placed online. This
Green,” an effort to build on            arrangement greatly reduces the amount of paper we use. In
existing paper initiatives and           2007 approximately 7.7 million electronic orders were placed in
accelerate Avon Romania’s                the United States alone; as a result, we saved 346.5 tonnes of
journey to a paperless                   paper. Order placement through the internet, mobile phones,
workstream. This initiative will         and other electronic methods are also being expanded
serve as a model for adaptation in       worldwide. We will continue to develop our service model to
other Avon markets.                      meet our customers’ needs while encouraging and implementing
                                         environmentally responsible behavior.

The program includes the four
focus areas noted below                  Product Shipping
(anticipated annual cost savings in
parentheses where available), all        Within the past ten years, Avon has implemented more efficient
                                         shipping practices, and this continues to be an area of focus for
of which we expect to be in place
                                         the company. For example, all orders are shipped from regional
as of January 1, 2009:                   distribution centers in order to reduce the distance that our
Green ordering: move to 100              products travel to customers.
percent electronic ordering,             In addition, we have increased packaging options so that smaller
discontinue fax ordering, enable         orders ship in smaller-sized packages. In the United States, our
Representatives to order by text         distribution system flags small orders—consisting of 5–6 or
message ($41,000)                        fewer small-sized items that have a certain cubic volume—and
                                         packs them into padded envelopes, which utilizes less material
Green processes: replace paper           and less space than our cartons.
invoices with e-invoices, replace
payment reminders with text              Similarly, orders consisting of larger items that could require an
                                         entire carton on their own are flagged and packed in a larger-
message notifications, reduce the
                                         sized carton that can accommodate additional items from the
volume of print materials that are       same order. This enables us to reduce the total number of
distributed to Representatives           packages sent.
($430,600)
                                         Logistics and transportation is one area in which the Hello Green
Green communication: promote             Tomorrow Task Force will be focusing its efforts over the next
electronic communication among           several months. Task Force members have already identified a
Representatives, distribute              number of key initiatives, and they are now in the process of
Representative newsletter                exploring feasibility. We look forward to sharing updates on the
electronically                           efforts of the Task Force beginning in 2009.

Green company: paper recycling,
education on key environmental
issues, and internal competitions
to reduce environmental impact




Avon Corporate Responsibility Environmental Report 11.2008                                                    7
                                         Packaging
                                         Avon’s package development group focuses on reducing the
                                         environmental impact of packaging in accordance with widely
                                         accepted packaging principles. These principles include source
                                         reduction and the use of recycled material and recyclable
                                         packaging. Following are recent examples of source reduction:
                                         •   Carton production: Our North American carton suppliers
                                             have committed to using renewable energy sources to
                                             produce cartons for Avon products. In 2008 approximately
                                             48 percent of the cartons we purchased depended on
                                             renewable energy.
                                         •   Refillable packaging: The mark™ and Anew™ product
                                             lines have integrated refillable packaging solutions into five
                                             of their cosmetic compact products. Each time a consumer
                                             refills these packages, an average material savings of 0.15
                                             pounds is realized. Avon continues to investigate the
                                             application of refillable options in additional product
                                             offerings.
                                         •   Skin So Soft cap restage: The Skin So Soft cap weight
                                             was reduced by 3 grams, and the annual worldwide material
                                             savings realized from this reduction is almost one quarter
                                             million pounds of material.
                                         •   Scalability: Our new, state-of-the-art distribution facility in
                                             Zanesville, Ohio, which is currently under construction, will
                                             employ an expanded range of packaging options that will
                                             reduce packaging and allow for greater scalability according
                                             to size and number of products ordered.
                                         We will continue to focus on improvements in our product
                                         packaging and look forward to achieving and reporting future
                                         successes in this area.




Avon Corporate Responsibility Environmental Report 11.2008                                                     8
                                          Sustainable Building Design
                                          As part of our effort to continuously improve our environmental
                                          performance, we have incorporated sustainable building
                                          principles into all current and future building plans. Every new
                                          facility in the United States, for example, is designed according
                                          to the US Green Building Council’s Leadership in Energy and
                                          Environmental Design (LEED) standards. The LEED Green
                                          Building Rating SystemTM is a third-party certification program
                                          and the nationally-accepted benchmark for the design,
                                          construction and operation of high-performance green buildings.
                                          At the very least, we will seek the “certified” standard for our
                                          buildings and may, where practicable, pursue a higher LEED
                                          certification level. We will determine the level of certification we
                                          seek on a case-by-case basis.
                                          We believe it is important to extend the company’s
                                          environmental stewardship efforts around the world, including
                                          emerging and developing countries in which regulatory
                                          standards may be lower than in the United States. Several new
                                          facilities integrate sustainable design specifications both in the
                                          United States and around the world, including a distribution
                                          center in Zanesville, Ohio and an office building in Northampton,
                                          United Kingdom. We plan to incorporate standards sufficient to
                                          meet LEED Gold certification at our planned distribution facility
                                          in Brazil. In addition, the state-of-the-art Avon Research &
                                          Development facility in Suffern, New York, incorporates
                                          numerous environmentally sound technologies, although it is not
                                          officially certified under the LEED program.


                                          Environmental Regulatory Compliance2
                                          Compliance has long been a valued environmental performance
                                          indicator at Avon. Our third-party audit program requires that
                                          each manufacturing site undergo a compliance review every
                                          three years. Below are our compliance statistics from 2003 to
                                          2007.


                                                               2003      2004       2005     2006      2007


                                          Regulatory             1         4          7        1         3
                                          Violations
                                                               2,500       50      1,400       0         0
                                           Penalties ($)




2
    This data reflects Avon manufacturing plants only.

Avon Corporate Responsibility Environmental Report 11.2008                                                       9
Case Study: Zanesville, Ohio                                 Case Study: Environmental Initiatives
Distribution Center to be LEED Certified                     Deliver Substantial Savings at Our
                                                             Springdale, Ohio, Facility
The new distribution center in Zanesville will be the
first Avon building designed to the US Green                 The numerous environmental initiatives at our
Building Council’s LEED Gold certification                   Springdale, Ohio, facility have resulted in
standards, making it one of the largest LEED Gold            substantial savings for business and the
certified distribution centers in the United States.         environment.
The rating will be achieved by implementing an               Water Management. In 2007, we converted our
energy-efficient design, including energy-efficient          vacuum system, which is designed to operate
lighting fixtures, motion sensors that turn lights on        manufacturing equipment, to waterless vacuum
only when someone enters an area, and much                   pumps. This change alone saves Avon $63,000
more. In addition, water conservation measures will          and saves the environment more than 16 million
be implemented to reduce water consumption by                gallons of water a year—enough water to fill more
about 60 percent, including the use of recycled              than 24 Olympic size swimming pools or sustain
rainwater in all restrooms (excluding sinks).                more than 65,000 people annually.
To reduce the building’s carbon footprint                    Recycling. We recycled 6.5 million pounds of
(greenhouse gas air emissions), 35 percent of                material in 2007. This total includes 4.235 million
carbon-dioxide emissions from electricity                    pounds of corrugate, which would require 25,410
consumption will be offset by purchasing renewable           trees to produce; 530,000 pounds of clothing,
energy credits from wind power. To ensure that the           which was donated to charity and distributed in
site generates minimal waste, systems will be                more than 30 countries; and 666,852 pounds
installed to achieve a facility-wide target recycling        (approximately 95,000 gallons) of ethanol waste.
rate of 80–85 percent. In addition, the office
furniture and furnishings will be constructed of             Energy Efficiency. We have upgraded much of
recycled materials, and on-site materials are being          our lighting to electronic ballasts and T8 bulbs.
recycled during the construction phase.                      These new fixtures provide 50 percent more light
                                                             and require 65 percent less energy. With more
                                                             than 10,000 bulbs in new magnetic ballast fixtures
                                                             installed between 2004 and 2007, Avon achieved
                                                             annual energy savings of more than 3.9 million
                                                             kWh.
                                                             In addition, we are in the process of completing a
                                                             two-year, $4.9 million project to replace our 40
                                                             year-old cooling system with a state-of-the-art
                                                             electrical centrifugal chilling system. The new
                                                             chilled water system is expected to reduce the
                                                             facility's natural gas consumption by 42 percent
                                                             from 2007 to 2008. In addition to the reduction in
                                                             our natural gas consumption, we anticipate
                                                             significant cost savings.




Avon Corporate Responsibility Environmental Report 11.2008                                                    10
Case Study: Environmental Leadership                         Case Study: At Our Celaya, Mexico
in China                                                     Plant, Avon Associates Practice What
                                                             They Preach
Avon’s manufacturing facility in Guangzhou, China,
has received significant recognition for its                 Avon’s plant in Celaya, Mexico, speaks to the
outstanding                                                  strength of our environmental programs around the
commitment to the                                            world. The facility has outstanding internal
environment. The                                             programs and facilities available on-site.
site’s water
treatment plant, in                                          What makes our Celaya team so extraordinary;
particular, is a                                             however, is its members’ commitment to the
testament to                                                 environment both inside and outside of the plant.
Avon’s commitment                                            Together, they work to generate a culture of
to environmental                                             environmental protection and sustainable growth
protection: the                                              by working alongside the community and the
water discharged                                             government. Here are two such examples of their
from the treatment                                           enduring commitment.
plant is recycled for                                        Environmental Fair. In each of the past eight
irrigation, cleaning, cooling and plumbing purposes          years, Avon Celaya has participated in the local
both inside the facility and throughout the                  community's Environmental Fair. Employees focus
surrounding areas.                                           on teaching young children and other community
                                                             members the importance of caring for the
The facility’s wastewater treatment plant received
                                                             environment. Key topics have included recycling
national recognition as a “demonstration project”
                                                             and wastewater treatment, which required a small-
from 2005 to 2010; the site has maintained ISO
                                                             scale model to demonstrate the water treatment
certification since 2004. At the 2007 Avon Global
                                                             process effectively. In all, more than 1,500
Environmental Health and Safety Conference,
                                                             students—between the ages of 8 and 17 years—
Avon presented its Gold Award for Environmental
                                                             participate in this event, and their reactions reflect
Excellence to the Guangzhou facility.
                                                             a new sense of awareness around important
                                                             environmental issues.
                                                             Garden of Values. The garden started in 2007, as
                                                             a continuous effort to promote Avon Celaya's
                                                             commitment to the environment. Initially, visitors
                                                             were asked to plant a tree in a dedicated area of
                                                             the facility’s property. The idea was to keep adding
                                                             trees and create a green facility that gave everyone
                                                             involved a sense of ownership. All of the
                                                             executives in the facility have planted trees and
                                                             have committed to caring for their trees and
                                                             observing their growth.




                                                             The garden has been so successful that it is now
                                                             entering its second phase.




Avon Corporate Responsibility Environmental Report 11.2008                                                     11
Case Study: Reducing the Environmental Impact of the Avon Walk for Breast Cancer
Beginning in 2008, the Avon Walk for Breast Cancer series began to reduce their environmental impacts. Our
staff has researched a number of low-cost process improvements that will reduce our overall environmental
footprint without impacting the funds raised for the fight against breast cancer. Cited below are some examples
of the efforts to reduce the walks’ environmental impact.


                                            •   Email communications. Communication with participants
                                                continues to be via email whenever possible, and the Avon
                                                Foundation continues to encourage walkers to conduct
                                                fundraising efforts online.

                                            •   Biodegradable materials. Avon is using more recycled paper
                                                in the organizational process and has ceased to use foam or
                                                plastic plates, cups and tableware in favor of more
                                                environmentally sound alternatives.

                                            •   Recycling. The Avon Walk works with local facilities to supply
                                                recycling bins along the walk route and at the “Wellness
                                                Village” to reduce the amount of waste generated.

                                            •   Water bottles. Water throughout the Walk weekends is
                                                distributed through multiple gallon jugs, and participants are
                                                required to bring their own bottles. Single-serve bottles are
                                                available only at the “Event Eve,” “Wellness Village” and
                                                ceremonies.

                                            •   Water conservation. The Avon Foundation requests that
                                                participants take shorter showers to decrease the total amount
                                                of water consumed, and promotes this effort in signage posted
                                                near the shower facilities.



•   Signage and communication. Special signs communicating “green” ideas and tips are posted throughout
    the Avon Walk sites. The same signs are reused at all Avon Walk for Breast Cancer events nationwide.

•   Donations. Unused perishables are donated to local homeless shelters, which reduces our waste and
    delivers much-needed food items to the hungry.

•   Raising awareness. A special “green” team oversees the environmental efforts; members wear “Ready,
    Set, Green” t-shirts to communicate Avon’s commitment to the environment and remind participants to do
    their part.




Avon Corporate Responsibility Environmental Report 11.2008                                                       12
                                         Global Environmental Metrics
                                         In 2004, we established environmental goals for our global
                                         manufacturing locations in four key areas:
                                         •   Energy efficiency
                                         •   Water management
                                         •   Waste management
                                         •   Recycling efficiency
                                         Our goals for Avon’s global manufacturing locations, set using
                                         2004 baseline statistics, expire at the end of 2008, at which time
                                         we will assess our progress and establish new targets for both
                                         our manufacturing and branch locations. New targets will take
                                         effect in the first quarter of 2009.

                                         Looking Ahead
                                         Avon’s performance has shown good progress towards
                                         meeting three of our four goals (recycling, energy and
                                         water use reduction). However, waste generated per unit
                                         produced has increased. Although we can attribute part of
                                         this increase to destruction of expired inventory, it is
                                         important that we find effective ways to reduce waste.


                                         Energy Efficiency
                                         From 2000 to 2004, energy efficiency improved 19.5 percent
                                         across our manufacturing plants. In 2004, we pledged to
                                         improve our energy efficiency by an additional 10 percent (from
                                         458.41 MM BTUs/MM units) by the end of 2008.


                                         Status
                                         Our energy reduction initiatives yielded favorable results through
                                         2007. Energy efficiency improved by 4.5 percent from 2004
                                         while production levels increased. We will continue to focus on
                                         energy efficiency and will work to meet our 2008 target by year-
                                         end.




Avon Corporate Responsibility Environmental Report 11.2008                                                    13
                                         Energy Consumption




                                         Total energy consumption at Avon’s manufacturing facilities in
                                         2007 decreased by 29,248 MM BTUs compared with that of
                                         2005. Total energy consumption at Avon’s manufacturing
                                         facilities in 2007 was 1,113,957 MM BTUs, a 2.6 percent
                                         reduction from 2005, while production levels increased.
                                         A new Avon manufacturing facility went online in Russia in late
                                         2004, and the increase in energy consumption from 2004 to
                                         2005 is attributable to the operation of this new facility.




Avon Corporate Responsibility Environmental Report 11.2008                                                 14
                                         Water Consumption
                                         In 2004, Avon set a target to reduce water consumption per
                                         thousand units produced by 10 percent (from 242.7
                                         gallons/thousand units to 218.43 gallons/thousand units) by the
                                         end of 2008.




                                         Status
                                         We achieved this target as of December 31, 2007. We have
                                         reduced total water consumption by 9.5 million gallons, or 1.7
                                         percent, from 2004 levels, while total production levels
                                         increased.




Avon Corporate Responsibility Environmental Report 11.2008                                                 15
                                         Recycling Efficiency
                                         Recycling efficiency is a key strength for Avon. We are proud of
                                         our ability to return much of the materials we use to the
                                         marketplace, instead of the landfill system. In 2004, Avon set an
                                         ambitious target: to increase recycling efficiency by 25 percent
                                         (from 52 percent to 65 percent) by the end of 2008.




                                         Status
                                         In 2007, approximately 57 percent of the overall waste material
                                         generated at Avon’s manufacturing plants was recycled (66.3
                                         million pounds); which is 9.6 percent above the 2004 baseline. In
                                         particular, we are very proud to report that six locations have
                                         recycling rates greater than 75 percent: Brazil, Mexico,
                                         Guatemala, Germany, China, and Japan—which has the highest
                                         recycling rate of 93 percent. We will continue to focus on
                                         improving our recycling efficiency at all of our worldwide
                                         locations.




Avon Corporate Responsibility Environmental Report 11.2008                                                   16
                                         Waste Management
                                         Avon set a target to reduce, by the end of 2008, the quantity of
                                         waste generated per unit by 20 percent from the 2004 baseline
                                         levels (38.32 lbs/thousand units produced).




                                         Status
                                         By the end of 2007, Avon’s waste index had risen 17% from the
                                         2004 levels to 45.75 lbs/thousand units produced. This increase
                                         was largely due to an unforeseen increase in volumes of
                                         obsolete or expired inventory, which are calculated as waste.
                                         Therefore, we do not expect to meet the 20 percent reduction
                                         target by the end of 2008. We do not anticipate that this trend
                                         will continue, however, and we have plans in place to reduce
                                         future waste generated per unit produced.




Avon Corporate Responsibility Environmental Report 11.2008                                                  17
                                         Greenhouse Gas Emissions
                                         In 1994, Avon became one of the first beauty companies to
                                         focus specifically on greenhouse gas (GHG) emissions
                                         reduction. At that time, we joined the Environmental Protection
                                         Agency’s Green Lights program and retrofitted many of our US
                                         sites with energy-efficient lighting.
                                         Since then, the public discourse about GHG emissions, in
                                         particular emissions of carbon dioxide (CO2), has escalated, and
                                         so has our commitment to stepping up our efforts around this
                                         critical issue.
                                         Since we last reported on our commitment to reducing GHG
                                         emissions in our 2004 corporate responsibility report, we have
                                         been working diligently to understand the extent of our energy
                                         use and GHG emissions. The following charts depict our
                                         measured equivalent carbon dioxide (CO2e) emissions from
                                         2001 to 2007.




                                         Status
                                         In 2007, Avon’s measured CO2e emissions totaled 118,204
                                         tonnes CO2e, an increase of 7.39 percent from the 2001 level of
                                         110,072 tonnes CO2e. In that time, however, Avon’s production
                                         levels have grown significantly, which explains this upward trend
                                         in our absolute emissions — we quite simply have more facilities
                                         producing more products, not that they are less efficient vis-à-vis
                                         emissions.




Avon Corporate Responsibility Environmental Report 11.2008                                                     18
Case Study: Avon Brazil Recognized for Project to Reduce GHG Emissions
Avon Brazil recently received an environmental award from the Brazilian Benchmarking Environmental
Program, lead by Mais Projetos, a nonprofit organization that aims to promote sustainable development,
social responsibility and environmental education and awareness. Since 2003 Mais Projetos has
recognized environmental best practices among Brazilian businesses.
Avon's winning project involves a reduction of GHG emissions in our logistics operations. By optimizing
truck routes within the region, Avon Brazil was able to cut costs, reduce the distance traveled, and lower
GHG emissions. The project, which will be fully implemented by July 2009, will save 4.1 million
kilometers traveled and cut GHG emissions by 12,707 tonnes annually. This project is just one way in
which Avon is focused on reducing GHG emissions.




Avon Corporate Responsibility Environmental Report 11.2008                                                   19
Morton Grove Strives for
Greater Efficiency
Avon’s manufacturing facility in
Morton Grove, Illinois, has
implemented numerous process
improvements and infrastructural
changes that are helping Avon to
operate more efficiently. Over the
past three years, water
consumption decreased by 11.9
percent, or 5.8 million gallons;
over four years, Morton Grove’s
water consumption decreased by
27 percent, or 16 million gallons.
In turn, Morton Grove’s energy           Relative to production levels, our measured GHG emissions
consumption decreased by 12.6            totaled 47.37 tonnes CO2e/million units in 2007. This represents
percent, or 19 billion BTUs, over        a 29 percent decrease in GHG emissions per million units
three years; energy consumption          produced from 2001, when GHG emissions reached 67.14
decreased by 11 percent, or nearly       tonnes CO2e/million units.
17 billion BTUs, over four years.
                                         Over this time period, Avon has adopted a number of initiatives
                                         to reduce its GHG emissions, including the following:

                                         •   Green building design
                                         •   Switching from fuel oil to natural gas
                                         •   Energy conservation programs
                                         •   Lighting retrofits
                                         •   Software that automatically turns computers off at night
                                         •   Energy-efficient equipment and computing systems

                                         Avon has responded to the Carbon Disclosure Project (CDP)
                                         each year, and since 2007 we have filed the CDP questionnaire
                                         with full public disclosure regarding our GHG emissions,
                                         including emissions of nitrous oxide and methane.
                                         Nonmanufacturing location data was completed after the 2008
                                         CDP6 was compiled. In 2007 Avon’s total GHG emissions from
                                         research and development totaled 6,055 tonnes CO2e. Branch
                                         and distribution operations emitted 44,586 tonnes CO2e.

                                         Looking Ahead
                                         Utilizing a baseline for our GHG emissions, we continue to
                                         address this issue by finding ways to use energy more
                                         efficiently and further reduce our emissions. As stated in
                                         our CDP6 questionnaire, Avon’s goal is to further reduce
                                         emissions per unit produced by another 5 percent by 2012
                                         from 2002 baseline levels. Total 2007 emissions per unit
                                         produced have been reduced by approximately 20 percent
                                         from 2002 baseline levels.




Avon Corporate Responsibility Environmental Report 11.2008                                                  20

								
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