RESPONSIBILITY Avon Corporate - the beauty of doing good - RSPO
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Avon Corporate
RESPONSIBILITY
report 2013 REPORT
the beauty of doing good
Table of
Contents
COMPANY PROFILE 3 CEO MESSAGE 5 ENVIRONMENTAL SUSTAINABILITY 6
PHILANTHROPY 20 PEOPLE 32 PRODUCTION & SUPPLY CHAIN 39 ABOUT THIS REPORT 51
Avon is committed to
making the world a more beautiful and
healthier place through our products,
our people, our environmental sustainability
and our philanthropy. We empower
millions of women around the world
financially through our earnings opportunity
and support their health and safety
through the Avon Breast Cancer Crusade
and Avon’s Speak Out Against
Domestic Violence initiative.
2013 Avon Corporate Responsibility Report 2
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Company
Profile
A von Products, Inc. (Avon), the company for women, is a leading
global beauty company with $10 billion in annual revenue in 2013, making
us one of the world’s largest direct sellers. We are headquartered in
New York City, where our company was founded in 1886. As of December 31, 2013,
we employed approximately 36,700 employees around the world.
Our products are marketed to women principally through direct selling by Avon
Independent Sales Representatives and are available in over 100 countries. As of
December 2013, Avon had more than 6 million Representatives and sales operations
in 62 countries and territories—including the United States—and distributed
products in 43 additional countries and territories via distribution partners and licensees.
A complete list of our markets can be found on avoncompany.com.
For Avon’s recent financial and company information, read our financial earnings
releases and 2013 Annual Report.
2013 Avon Corporate Responsibility Report 3
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OUR PRODUCTS
Avon’s core beauty products and related brands, such as Avon Color,
ANEW, Skin-So-Soft, Advance Techniques, Avon Naturals and mark.,
represented 73 percent of our company’s net sales as of December 31,
2013, with fashion and home products representing 17 percent and
10 percent, respectively.
Our current product offerings are categorized by Beauty and
Fashion and Home:
beauty fashion & home
• Color Cosmetics • Fashion Jewelry •G ifts and Decorative
• Fragrances • Watches Products
• Skincare • Apparel • Housewares
• Footwear •E ntertainment and
• Accessories Leisure Products
• Children’s Products
• Nutritional Products
AWARDS & RECOGNITION
Avon strives to be an industry leader in many facets of corporate responsibility
and sustainability. Following are select acknowledgments for our work in 2013.
For a complete list of our awards and recognitions, please visit avoncompany.
com.
CDP S&P 500 Climate Change Report
Avon received an 86 on disclosure and B on performance in 2013
Human Rights Campaign Foundation’s Corporate Equality Index
Avon received a perfect score—100 out of 100—in 2013 for the second
consecutive year
Interbrand’s Best Global Green Brands
Avon ranked No. 41 in 2013
Forbes’ World’s 100 Most Powerful Women
FORTUNE’s 50 Most Powerful Women in Business
Avon CEO Sheri McCoy was recognized on both
lists in 2013
2013 Avon Corporate Responsibility Report 4
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ear Avon Stakeholders, our philanthropic goal of donating $1 billion in total
funds by 2015.
Avon’s commitment to corporate
responsibility is at the core of our • ENVIRONMENTAL SUSTAINABILITY: Our
company. In 1886, our founder, brochures make us a significant user of paper and
David H. McConnell, pledged that Avon we’re committed to helping end deforestation
would “contribute to the well-being of society and the through internal efforts, policies, and our reforestation
environment in which it functions.” fundraising initiative, Healthy Forests, Beautiful
World. In 2013, we raised $1.3 million through
Today, more than 125 years later, that pledge remains
Healthy Forests, Beautiful World to support the
fundamental to our business and is important to our
reforestation projects of partner organizations—
long-term success. The commitments and strategies
The Nature Conservancy and World Wildlife Fund—
outlined in this report reflect business decisions that
in Brazil and Indonesia, two of the most critically
we believe better position us for success.
endangered ecosystems.
Our three citizenship responsibility pillars continue
In 2013, we also made progress toward our
to be: People, with a focus on empowering women;
2020 goals to reduce absolute greenhouse gas
Philanthropy, with a focus on ending breast
(GHG), water intensity and waste across Avon’s
cancer and domestic violence; and Environmental
operations. For example, as of the end of 2013,
Sustainability, with a focus on reforestation and
we reduced GHG emissions from Avon operations
minimizing our footprint. As always, we are guided by
by 28.7 percent, surpassing our goal of a 20
our core values and principles, which include earning
percent reduction.
the trust of our stakeholders by exhibiting integrity,
acting ethically, and embracing transparency. I’m extremely proud of the work our company
is doing to contribute to our social and
A few examples of how we continued our commitment
environmental stewardship. Through the dedication
to corporate responsibility in 2013 include:
of our Representatives and our thousands of
• PEOPLE: As the “company for women,” our priority Associates, Avon is a responsible corporate citizen.
to empower women is reflected in our commitment
The journey does not end here, and we look forward
to recognizing and advancing women in our
to continuing to advance our corporate responsibility
own workforce and helping our more than six million
efforts in the years to come. On behalf of Avon, I
Avon Independent Sales Representatives achieve
invite you to explore this report to learn more about
economic independence. Our business empowers
our progress and goals.
millions of women around the world to be self-sufficient
and to earn an income to support themselves and
make a better life for their families. Since 1886, Avon
has offered women a no-barrier earnings opportunity to
support themselves and their families.
• PHILANTHROPY: Our 2013 philanthropic efforts
made a difference in the lives of women and their Sheri McCoy
families around the world. Since 1955 through the Chief Executive Officer
end of 2013, we raised more than $957 million
through programs in over 50 countries for two of the
causes most important to women: breast cancer and
domestic violence. We are well on our way to reaching
2013 Avon Corporate Responsibility Report 5
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Environmental
Sustainability
Avon has a long-standing commitment to managing our environmental footprint.
We continuously evaluate how to reduce the environmental impact of our operations
and in the manufacturing of our products. A worldwide network of Avon’s global
environmental management team and Associates across various disciplines support
our policies, processes and goals. Our Associates are dedicated to environmental
stewardship and apply the principles of sustainability to their daily work.
In 2013, we made progress toward our long-term 2020 goals focused on absolute
greenhouse gas (GHG) emissions, water, waste and reforestation, as well as toward
additional shorter-term goals addressing these areas and others, such as recycling
and packaging.
External organizations rank our environmental performance within our industry.
For 2013, we received a disclosure score of 86 (out of 100) and performance score
of B on CDP S&P 500 Climate Change Report.
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AVON 2020 ENVIRONMENT GOALS
GOAL PROGRESS
28.7% Reduction
20% Reduction
Of GHG emissions on an
Of total GHG emissions from Avon
absolute basis from Avon
operations on an absolute basis
operations through the end of 2013
by 2020 (base year 2005)
(goal achieved and ongoing)
40% Reduction
32% Reduction
In water intensity—water
In water intensity
consumption per Avon
through the end of 2013
manufacturing facility—by 2020
(ongoing)
(base year 2005)
30% Reduction
2.6% Reduction
Of waste on a per unit
Of waste on a per unit basis
basis—waste per Avon
through the end of 2013
manufacturing facility—by 2020
(ongoing)
(base year 2005)
74% of Paper
100% of Paper
Used in Avon brochures
Purchased from certified and
purchased from certified and or
or post-consumer recycled
post-consumer recycled content
content sources by 2020 with a
sources in 2013 and 25 percent
certification preference of the Forest
sourced from FSC-certified forests
Stewardship Council (FSC)
(ongoing)
AVON’S COMMITMENT TO CLIMATE CHANGE
Avon’s commitment to climate change began in 1994 when we retrofitted many
U.S. manufacturing and distribution sites with energy-efficient lighting. Avon is also
a signatory of the CERES climate declaration, which calls on federal policymakers
to address climate change. We have collaborated with CERES on sustainability
initiatives since 2011. As a member of the Business for Innovative Climate & Energy
Policy (BICEP), an advocacy coalition of businesses committed to working with
policy makers to pass meaningful energy and climate legislation, we abide by
BICEP’s key principles, including promoting energy efficiency and renewable
energy; increasing investment in a clean energy economy; and supporting climate
change adaptation, technology transfer and forest preservation.
2013 Avon Corporate Responsibility Report 7
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OPERATIONS
Avon has a longstanding commitment to managing our environmental footprint.
We address key impacts across our business enterprise and focus on continuous
improvement, with particular emphasis on the areas that are most important to
our company, society and the planet.
GREEN BUILDINGS
AVON
As part of our efforts to mitigate and reduce our environmental GREEN
impacts, we support sustainable building practices. Through BUILDING
our Green Building Promise, we are committed to designing PROMISE
and building any new major facilities, as well as making renovations
to existing facilities, in accordance with the U.S. Green Building
Council’s Leadership in Energy and Environmental Design (LEED)
Green Building Rating System™ certification standards.
The LEED certification system promotes a comprehensive, holistic approach
to sustainability, focusing on energy savings, water efficiency, carbon emissions
reduction, and stewardship of natural resources. In countries where LEED
certification does not exist, construction and renovation projects aim to meet
equivalent local standards.
As of 2013, the following Avon facilities have achieved LEED certification or
equivalent local standards:
• A
von’s distribution center in Zanesville, Ohio, was our first facility to achieve
LEED Gold certification
• O
ur Northampton, United Kingdom, administrative headquarters achieved
BREEAM Very Good - New Build and was awarded the U.K. Green Apple Award
• A
von’s largest distribution center worldwide in Sao Paulo, Brazil, received
LEED Gold certification
• O
ur distribution center in Guarne, Colombia, was the first new construction
in Colombia to receive LEED Gold certification
• O
ur research and development center in Shanghai, China, received LEED
Platinum for its interior space
• O
ur U.S. headquarters in New York, N.Y., was awarded LEED Gold for its
interior space
EMISSIONS REDUCTION
AND ENERGY CONSERVATION
We continue to focus on reducing our greenhouse gas (GHG) emissions and energy
consumption, as well as increasing the use of on-site renewable energy to reduce
our carbon footprint. Avon aspires to achieve zero emissions by using 100 percent
clean energy and we are proud of the progress we’ve made to reduce our absolute
GHG emissions.
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By 2020, our goal is to reduce absolute GHG emissions from
Avon operations by 20 percent from 2005 baseline levels.
As of the end of 2013, we exceeded our goal and reduced absolute emissions by
28.7 percent from 2005. Although we are optimizing our carbon and energy use, we
do expect our GHG emissions to fluctuate in the years leading up to 2020 due to
potential growth of Avon’s business and diminishing returns on our investments in
our renewable energy efforts. Therefore, we are continuing to pursue our 2020 goal
of a 20 percent GHG reduction.
On our journey to zero emissions, we’ve also set a short-term goal to continue our
progress. By 2016, our goal is to reduce total GHG emissions on an absolute basis
by 5 percent from 2012 baseline levels. As of the end of 2013, we reduced absolute
GHG emissions by 4.6 percent from 2012.
Challenges to our business resulted in fewer units produced in 2013, which
affected our per unit carbon emissions—carbon emissions per Avon manufacturing
facility. While our per unit carbon emissions increased 4.7 percent from 2012 to
2013, we’ve made significant progress since 2005. As of 2013, we achieved a
38.3 percent carbon emissions reduction per million units at global manufacturing
locations from 2005 baseline levels.
ABSOLUTE GHG EMISSIONS (CO2e)
METRIC TONNES Global Operations
170,000
160,000
150,000 158,497
156,341
140,000 153,920
142,722 141,801
130,000 136,751
136,050
120,000
110,000 118,408
113,017
100,000
2005 2006 2007 2008 2009 2010 2011 2012 2013
NOTE A breakdown of Avon’s 2013 absolute GHG emissions by scope includes:
27,962 metrics tonnes of Scope 1 emissions and 85,055 metric tonnes of Scope
2 emissions from our global operations. Our Scope 1 emissions represented
here do not include direct emissions from our vehicle fleet, which totaled 35,490
metric tonnes in 2013.
2013 Avon Corporate Responsibility Report 9
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GHG EMISSIONS PER UNIT(CO2e)
Global Manufacturing Locations
METRIC TONNES
PER MILLION UNITS
60
50
40
30
20
10
48.3 44.4 44.3 40.0 35.7 33.3 35.7 28.4 29.8
0
2005 2006 2007 2008 2009 2010 2011 2012 2013
In 2013, total energy consumption at Avon’s global manufacturing facilities—
composed of on-site consumption and electricity—decreased 5.2 percent from
2012 levels—from 748,030 MM BTUs to 708,888 MM BTUs. Since 2005, we
have reduced total energy consumption by 35 percent.
1,150,000
TOTAL ENERGY (MM BTU’s)
Global Manufacturing Locations
1,050,000
950,000
850,000
750,000
650,000
2012 2013
2005 2006 2007 2008 2009 2010 2011
The Avon Green Building Promise contributes to a reduction in energy and
GHG emissions. Avon’s GHG emission estimates are compiled by First Environment,
an independent environmental management consultant that is a leader in the
GHG field. First Environment is a signatory to the CERES principles (Coalition for
Environmentally Responsible Economies) and also maintains ISO 14001 certification.
2013 Avon Corporate Responsibility Report 10Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
WATER CONSERVATION
Avon continues to take steps to use water wisely and conserve this resource,
especially in water stressed parts of the world. We continue to implement projects
to achieve zero water waste discharge in water-scarce countries where we operate,
particularly in India, China and Brazil.
By 2020, our goal is to reduce water intensity—water consumption per Avon
manufacturing facility—by 40 percent from 2005 baseline levels. As of the end of
2013, we reduced water intensity by 32 percent from 2005.
We’ve also set a short-term goal: By 2016, we aim to reduce water intensity by 5
percent from 2012 baseline levels.
In 2013, we reduced water intensity by 1.3 percent—from 159 gallons per thousand
units in 2012 to 157 gallons per thousand units in 2013.
WATER CONSUMPTION INDEX (GALLONS/000’s UNITS)
Global Manufacturing Locations
300
250
200
150
100
2005 2006 2007 2008 2009 2010 2011 2012 2013
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On an absolute basis, we reduced water consumption 3.7 percent—from
362,402,000 gallons in 2012 to 348,998,000 gallons in 2013. From our 2005
baseline, we reduced water consumption by 35 percent—or approximately
193,000,000 gallons.
TOTAL WATER CONSUMPTION
Global Manufacturing Facilities
THOUSANDS
OF GALLONS
560,000
540,000
520,000
542,139
500,000
480,000 529,781
460,000 525,854
440,000 476,574
471,112
420,000
400,000 428,264
380,000
396,107
360,000
362,402
340,000 348,998
2005 2006 2007 2008 2009 2010 2011 2012 2013
Our manufacturing sites globally are committed to efforts to reduce water
consumption. In 2013, water savings initiatives at Poland and Morton Grove, Ill.
manufacturing sites delivered 7 percent and 16 percent reductions in water
consumption, respectively. Additionally, Avon branches in Acala, Spain, delivered
a 75 percent reduction in water consumption, while Colombia branches delivered
a 78 percent reduction in 2013.
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MATERIAL USE & PACKAGING
With 33 owned and 27 leased manufacturing and distribution centers worldwide
in 2013, Avon focuses on recycling and minimizing material use as we strive to
reduce waste along the production cycle. This reduction has a meaningful cost
savings and lessens our environmental impact.
WASTE REDUCTION
By 2020, our goal is to achieve a waste reduction of 30 percent
on a per unit basis—waste per Avon manufacturing facility—
from 2005 baseline levels.
As of the end of 2013, we reduced waste per unit by 2.6 percent since 2005.
We continue to focus on driving further reductions and have set short-term goals as
we work to achieve our 2020 target. By 2016, our goal is to achieve zero operational
waste to landfill at five Avon locations across manufacturing and branch sites.
We are also targeting a five percent reduction in waste per unit from 2012 levels
by 2016. In 2013, waste per unit at Avon’s manufacturing facilities decreased 9.1
percent from 2012—from 40.6 to 36.9 pounds per thousand units.
WASTE INDEX (POUNDS/000 UNITS)
Global Manufacturing Locations
50
45
40
35
30
25
2005 2006 2007 2008 2009 2010 2011 2012 2013
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On an absolute basis, in 2013, Avon’s global manufacturing operations
reduced waste by 9.1 percent from 2012—from 92,447 to 83,998 (in thousands
of pounds).
TOTAL ABSOLUTE WASTE
(IN THOUSANDS OF POUNDS)
Global Manufacturing Locations
120,000
110,000
100,000
90,000
80,000
70,000
60,000
2005 2006 2007 2008 2009 2010 2011 2012 2013
Despite reductions in waste per unit in 2013, we are not progressing as quickly
as we had anticipated toward our 2020 goal. The large proportion of heavy sludge
generated by our wastewater treatment facilities primarily contributed to this
slower pace, with obsolete and expired products also contributing, but to a much
lesser extent. However, we are finding re-use options for sludge, as well as for
alcohol and cosmetics; recycling corrugated cardboard; implementing a waste to
energy program; and educating Associates in global manufacturing locations on
environmental initiatives. These efforts have resulted in the increase of our recycling
levels and generated progress toward our 2020 recycling goal.
2013 Avon Corporate Responsibility Report 14Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
RECYCLING
By 2016, our goal is to achieve an overall recycling rate of 87 percent across
manufacturing and branch sites.
In 2013, we achieved an overall recycling rate of 84 percent. Among manufacturing
sites only, we achieved an 81.8 percent recycling rate—Avon’s highest rate of
recycling to date.
All of Avon’s manufacturing and branch sites are focused on achieving zero
waste to landfill. Manufacturing facilities in Poland and Brazil led all regions with
recycling rates at 90 percent. Among Avon’s branch locations, more than 10
locations were close to achieving zero waste to landfill in 2013—recycling rates
over 90 percent—including sites in Zanesville, Ohio, and Cabreuva, Brazil.
RECYCLING EFFICIENCY (% MATERIALS RECYCLED)
Global Manufacturing Locations
80
70
60
50
40
2005 2006 2007 2008 2009 2010 2011 2012 2013
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PACKAGING
Avon uses a variety of plastic, glass, paper and cardboard packaging materials
in our products. We aim to continually reduce the environmental impact of our
packaging during our new product development process and on-going business
operations. To do so, we have reinvigorated our efforts by assigning a senior
executive to lead and oversee a cross-functional team that is mandated with
driving sustainable packaging innovation at the company. All sustainable initiatives
are designed to ensure a high-quality product: the package is safe, suitable for
consumer use, and meets all legal guidelines.
Avon addresses the environmental impact of packaging through two key areas:
the amount of packaging and the materials and processes required to produce
the packaging.
By 2015, our goal is to discontinue the use of polyvinyl chloride
(PVC) in our beauty packaging across all markets.
We continue to make significant progress toward our goal. For example, the
majority of our PVC usage is in protective and tamper evident shrink sleeves
across multiple product categories; we are working to replace these PVC sleeves
with more sustainable PET/OPS sleeves.
PROGRESS TOWARD GOAL TO DISCONTINUE
POLYVINYL CHLORIDE (PVC) IN BEAUTY PACKAGING BY 2015
STATUS: DISCONTINUING
REGION PVC IN BEAUTY DETAILS
PACKAGING BY 2015
Eliminated PVC from packaging
Latin America
Achieved waste stream and have been PVC
(excluding Venezuela)
free since 2009
Will reduce PVC consumption
North America On Target
by 50% in 2014
Will eliminate PVC sleeves through
EMEA On Target the qualification of PET/OPS sleeves
in 2015
Will eliminate PVC usage across its
China On Target major brands – Naturals, Skin-So-Soft,
and Nutrition Capsule in 2014
Converted 188 million PVC sleeves in
2010 and is on target to replace the
India On Target
PVC sleeves in the Color Cosmetics
Category in 2015
Initiated a program in 2013 to
convert all new product launches to
Philippines
On Target PET sleeves. Inline products that use
PVC sleeves are on schedule to fully
transition to PET by 2015
2013 Avon Corporate Responsibility Report 16Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
In 2013, we continued to evaluate additional opportunities to reduce the impact
of packaging through the following initiatives:
arton elimination: Many Avon products and product categories are offered
•C
without outer cartons, including lipsticks, body lotions, bath products, and
personal care products, such as deodorants, haircare and other categories.
arton production: Our North America carton supplier, Graphic Packaging,
•C
meets the SFI Sourcing Standard (Certified Fiber Sourcing) and only uses pulp
from pine trees that are managed under sustainable forestry practices and uses
approximately 100 percent of the tree and leaves no ground waste behind.
efillable packaging: The mark. brand has integrated
•R
refillable packaging solutions into two of its cosmetic
compact products. Every time a consumer refills these
packages, an average of 0.15 pounds of materials is saved.
In 2013, the Latin American region began producing the
400ml Encanto Lotion refillable package and sold refillable
liquid soap. In addition, other markets are investigating
refillable jars and cosmetic compacts.
• L ightweighting: Many plastic packaging and caps are “lightweighted” to reduce
the overall amount of materials they contain while still providing the necessary
strength. In 2013, Avon’s Personal Care category began implementing an HDPE
to PET conversion project in 2013 for body washes globally, which will result in
the reduction of an estimated 12,900 pounds of resin per year globally.
• S calability: Avon’s global distribution centers use multiple case sizes to
minimize corrugate usage per order. Our facility in Pasadena, Calif., utilizes bliss
style cases that use approximately 20 percent less board than a typical regular
slotted container.
2013 Avon Corporate Responsibility Report 17Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
REFORESTATION
As a direct seller whose ‘store’ is the brochure and printed materials, with
virtually no brick and mortar stores, Avon is a significant user of paper.
Deforestation affects the health and well-being of our society and environment.
We are committed to helping end deforestation through internal efforts and
policies, including the Paper Promise and Palm Oil Promise, and our reforestation
fundraising initiative, Healthy Forests, Beautiful World.
AVON PAPER PROMISE AVON
As a significant consumer of paper products, Avon can influence PAPER
both supply and demand in the market. In March 2010, we
PROMISE
announced the Avon Paper Promise, a comprehensive policy for
promoting responsible forest use and protecting forests.
We are committed to optimizing our overall use of paper in every area of our
business, including distribution methodologies, basis weight reductions, reductions
in brochure size, and increasing the use of electronic media as a replacement for
paper-based products. We also continue to leverage technology and establish
paperless processes wherever possible.
By 2020, our goal is to purchase 100 percent of our paper from
certified and/or post-consumer recycled content sources with
a certification preference of Forest Stewardship Council (FSC).
As of 2013, 74 percent of Avon’s brochure paper met the Avon Paper Promise
commitments, and approximately 25 percent of paper used in Avon’s product
brochures is sourced from FSC certified forests.
Moving forward, we will continue to report on our ongoing activities to implement
the five points of the Avon Paper Promise:
• P romoting sustainable forest use. Protecting forests. Protecting old growth,
high conservation or endangered forests and ecosystems.
• R educing demands on forests.
• P romoting clean production practices.
• P romoting continuous improvement.
• R emaining transparent to customers, shareholders, and other stakeholders.
To achieve these goals, we are tracking and reporting, through the Global Forest
and Trade Network, the amount of wood fiber we purchase from suppliers certified
under each of the forest certification systems. We also continue to consult with
external stakeholders to review emerging issues related to environmentally
responsible fiber and implementation of our Paper Promise.
Read the full Avon Paper Promise on avoncompany.com.
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AVON PALM OIL PROMISE
AVON
The rapid expansion in the production of palm oil has resulted in PALM OIL
destruction of large areas of tropical forests and peatlands. Although PROMISE
more than 80 percent of palm oil is used in food, it is also one of the
natural oils used in cosmetics and personal care products.
Avon is not a significant user of palm oil; however, we recognize the
impact palm oil production has on deforestation. In March 2011, we adopted
the Avon Palm Oil Promise, which outlines Avon’s guidelines for purchasing
sustainably sourced palm oil. Additionally, we are a member of the Roundtable
on Sustainable Palm Oil (RSPO)—a group that promotes the growth and use
of sustainable palm oil.
Through the Palm Oil Promise, we support the production of sustainable palm oil
through the GreenPalm program. For every estimated ton of palm oil derivative
we use in the production of our products, we have paid a voluntary premium to
a palm oil producer that is operating within the RSPO guidelines for social and
environmental responsibility.
In 2013, Avon supported the production of 18,400 metric tons of sustainable
palm oil production through the GreenPalm program.
Read the full Avon Palm Oil Promise on avoncompany.com.
HEALTHY FORESTS, BEAUTIFUL WORLD
Healthy Forests, Beautiful World, Avon’s
reforestation fundraising initiative, empowers
us all to be a part of a global movement to help
end deforestation—a crisis that endangers the
health and well-being of our society and our
environment. The initiative was launched in
2010 as Hello Green Tomorrow, and renamed
Healthy Forests, Beautiful World in 2014.
With more than six million Avon Independent Sales Representatives
(“Representatives”) around the world as of December 31, 2013, Avon has a
unique capacity to engage and mobilize people to help end deforestation.
Healthy Forests, Beautiful World raises funds through the sale of special,
environmentally conscious fundraising products in more than 50 countries by
Representatives and online at Avon eCommerce sites.
Through the end of 2013, Avon raised more than $6.8 million, including $1.3
million in 2013, to support the reforestation projects of partner organizations,
The Nature Conservancy (TNC) and World Wildlife Fund (WWF), in Brazil and
Indonesia, two of the most critically endangered ecosystems.
Read more about Healthy Forests, Beautiful World on avoncompany.com.
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Avon
Philanthropy
As the “company for women,” Avon has a unique ability to educate and mobilize
people worldwide on issues that are of vital importance to women. By combining
the power of the individual and the collective power of our worldwide network
of Avon Independent Sales Representatives (“Representatives”) into one powerful
philanthropic force, together Avon and the Avon Foundation for Women—
a U.S.-based 501(c)(3) public charity—make us a global leader in philanthropy.
We are proud to be the leading corporate supporter of the breast cancer cause
globally through the Avon Breast Cancer Crusade and a leading corporate
supporter of ending violence against women through the Speak Out Against
Domestic Violence initiative.
By 2015, our goal is to donate $1 billion in total funds,
and we are well on our way to reaching that goal.
Through the end of 2013, Avon global philanthropy donated more than $957 million
through programs in over 50 countries for causes most important to women.Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
AVON FOUNDATION FOR WOMEN
The U.S.-based Avon Products Foundation, Inc.,
referred to as the Avon Foundation for Women
(“Avon Foundation”), leads Avon’s global philanthropy
program. All local fundraising and grant programs
are conducted by Avon’s individual country markets.
Since its inception in 1955, the Avon Foundation’s fundamental mission has
been to promote or aid charitable, scientific, educational, and humanitarian
activities, with a special emphasis on programs that improve the lives of women
and their families.
Read more about the Avon Foundation’s mission on the Avon Foundation website.
AVON FOUNDATION FUNDRAISING
The Avon Foundation raises funds in the United States for breast cancer and domestic
violence programs through special Avon products sold by Representatives, with
a percentage of net proceeds donated to the Avon Foundation. The Avon Walk for
Breast Cancer series, which attracts tens of thousands of participants each year,
raises substantial funding from the public.
In addition, Avon provides in-kind and financial support to the operations of the
Avon Foundation. Detailed financial reports showing Avon’s donations to the Avon
Foundation, funds raised, grants awarded and more details, can be found on the
Avon Foundation financials page.
AVON FOUNDATION GRANTS
The Avon Foundation awards breast cancer and domestic violence grants through
a competitive application process guided by external experts on respective
advisory boards, the Avon Foundation Breast Cancer Advisory Board and the
Avon Foundation Domestic Violence Advisory Board. The Avon Foundation also
awards grants through our Healthy Forests, Beautiful World program to support
reforestation projects in endangered ecosystems. Read more about Healthy
Forests, Beautiful World in the Environmental Sustainability section of this report.
Strategic guidance for the Avon Foundation, fiduciary responsibility and final
decisions on grant making are among the responsibilities of the Avon Foundation
Board of Directors.
In 2013, the Avon Foundation:
• Awarded more than $20 million for grants and programs to advance breast
cancer research and access to care programs and $5.8 million for grants and
programs to fund domestic violence education, direct service and prevention
programs.
• M ade 156 grants for U.S. breast cancer programs through the Avon Foundation
Breast Cancer Crusade, of which 63 percent went to access to patient service
and care programs and 37 percent went to research.
• F unded 138 projects through the Avon Speak Out Against Domestic Violence
initiative aimed at ending domestic violence or supporting victims in 36 states,
Puerto Rico and the Dominican Republic, totaling $5.8 million.
2013 Avon Corporate Responsibility Report 21Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
•A
warded a total of $1.47 million to The Nature Conservancy (TNC) and
World Wildlife Fund (WWF) through the Healthy Forests, Beautiful World
program to fund reforestation efforts in Brazil’s Atlantic Rainforest and
Indonesia’s tropical forests.
AVON MATCHING GIFTS PROGRAM
Avon is proud to encourage the personal philanthropy of Avon Associates.
In the United States, through the Avon Foundation U.S. Associate Matching
Gifts Program, the company matches donations made from all full-time
U.S.-based Associates to a wide range of causes and programs. The Avon
Foundation matches minimum contributions of $25, up to a maximum of $15,000,
perAssociate and per calendar year, to eligible 501(c)(3) organizations. Each
calendar year, the Avon Foundation will provide a 2:1 match to charities up to
a maximum of $500, and a 1:1 match for all pledges exceeding $500, up to a
maximum of $15,000.
2013 Avon Corporate Responsibility Report 22Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
AVON BREAST CANCER CRUSADE
The Avon Breast Cancer Crusade, which launched in
1992, has placed Avon and the Avon Foundation at the
forefront of the fight against breast cancer. Today, Avon
is the leading corporate supporter of the cause globally.
Many of our Representatives around the world raise
funds for breast cancer programs and also provide a global
army of educators, offering information and raising awareness around the world.
Avon global philanthropy has donated more than $815
million through 2013 for breast cancer programs in over
50 countries for research and advancing access to care,
regardless of a person’s ability to pay.
The Avon Breast Cancer Crusade awards funding to beneficiaries ranging from
leading cancer centers to community-based, grassroots breast health programs
to support breast cancer research and access to care. Avon funding has helped
build a network of programs globally that cover the full spectrum of the breast
cancer access to care and research. We fund promising research into the causes
of breast cancer and ways to prevent the disease, and fund access to screening and
treatment, with a special focus on helping the medically underserved, including the
disadvantaged, elderly, minorities and those without adequate insurance.
Globally, the Crusade has enabled more than 18 million
women to receive free mammograms and breast cancer
screenings, and educated more than 145 million
women about breast cancer, helping improve rates of
early detection and survival.
AVON BREAST CANCER CRUSADE
FUNDRAISING
Avon and the Avon Foundation raise funds globally for the Crusade through the
sale of special fundraising products and through fundraising events such as the
U.S. Avon Walk for Breast Cancer series and the Avon Walk Around the World for
Breast Cancer series.
2013 Avon Corporate Responsibility Report 23Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
AVON BREAST CANCER CRUSADE
PINK RIBBON FUNDRAISING PRODUCTS
Representatives around the world sell specially designed and affordably
priced “Pink Ribbon” products that provide the opportunity for anyone
to participate in the fight against breast cancer. Avon and the Avon
Foundation award a portion of the proceeds to organizations and institutions
to help eradicate breast cancer, with grants made within the country in
which the funds are raised.
Through 2013, global sales of Avon Breast
Cancer Crusade pink ribbon fundraising products
totaled $321 million.
U.S. AVON WALK FOR BREAST CANCER
The U.S. Avon Walk for Breast Cancer series is the
Avon Foundation’s largest annual fundraising initiative and
takes place in eight cities annually from April to October.
Avon Walk participants have the choice of walking
a marathon (26.2 miles) or a marathon-and-a-half
(39.3 miles) over two days. Each walker must raise a
minimum of $1,800 to participate, funds that the Avon Foundation distributes to
local, regional and national breast cancer organizations.
During the closing ceremony of each Avon Walk, the Avon Foundation awards a
portion of the funds raised to local beneficiaries to ensure the funds immediately
benefit the community. The Avon Foundation awards additional funds raised
throughout the year to provide leadership support nationally for the fight against
breast cancer.
Since its launch in 2003, the Avon Walk series has raised
more than $500 million through the dedication of more than
192,000 participants.
2013 Avon Corporate Responsibility Report 24Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
AVON WALK AROUND THE WORLD
FOR BREAST CANCER
The Walk Around the World for Breast Cancer series
brings together hundreds of thousands of people in
more than 50 countries around the world to raise money
and build awareness of breast cancer. The funds are
awarded in the local country to address critical needs,
from mammography equipment to cutting-edge research
and patient care. In many countries, the Avon Walks
bring together many generations and break cultural and social barriers that previously
stood as obstacles to women and men taking a public stand against breast cancer.
As of the end of 2013, Avon Walk around the World for
Breast Cancer events have raised more than $16 million through
the support of more than two million participants.
AVON BREAST CANCER IMPACT
The hundreds of Avon Breast Cancer Crusade 2013 grant recipients in the
United States and around the world include a wide range of organizations and
institutions, including local nonprofit breast cancer programs and leading cancer
centers that drive research and patient care.
ACCESS TO CARE PROGRAMS
Avon funds access to screening and treatment, with a special focus on helping
the medically underserved, including the disadvantaged, elderly, minorities and
those without adequate insurance.
Avon and the Avon Foundation continue to lead efforts to end disparities and
improve access to breast health care. A few examples of these efforts include:
•T
hrough 2013, the seven Avon Comprehensive Breast Care Centers of
Excellence at major U.S. academic medical centers received a combined $148
million from the Avon Foundation. In addition, our markets in Brazil and the
Philippines have created comprehensive breast cancer care centers at leading
medical centers. Avon grants enable these centers to develop new programs
to reach and treat the poor in their communities. In the United States, annual
Avon Foundation grants to these centers also support their research efforts,
with an emphasis on including underserved and minority populations in breast
cancer research.
2013 Avon Corporate Responsibility Report 25Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
• T hrough the Avon Breast Health Outreach Program (BHOP), the Avon
Foundation has awarded more than 1,600 grants to community-based
organizations across the United States, totaling $76.2 million since 2000.
Avon’s BHOP links at least 100,000 women annually to quality screening and
funds more than 50 community health educators to connect underserved
women and men to early detection programs and risk reduction strategies.
•T
he U.S. Avon Safety Net Program has awarded 660 grants through the end
of 2013, totaling $220 million, to a network of more than 177 hospitals across
the country. The goal of the program is to help women and men who might
fall through the cracks of the healthcare system gain access to quality breast
cancer services. In 2013, Avon Foundation-funded patient navigation programs
provided patients with nearly 400,000 educational contacts, enabled access
to nearly 250,000 mammograms and navigated nearly 14,000 medically
underserved women and men diagnosed with breast cancer.
BREAST CANCER RESEARCH FUNDING
The Avon Foundation has donated more than $200 million for breast cancer
research in the United States.
The Avon Foundation supports breast cancer research through grant funding,
as well as by providing scientific coordination and fostering collaboration between
its funded programs. Current research priorities are aimed at:
• understanding the causes of breast cancer
• targeting the primary prevention of breast cancer
•d
eveloping new treatments for under-investigated areas of research, such as
metastatic breast cancer and rare, aggressive types of the disease (inflammatory
breast cancer, triple negative breast cancer and metastatic breast cancer)
The Avon Foundation launched and leads several collaborative research efforts,
including the Virus & Breast Cancer Research Consortium, a new diagnostics
tests/devices development initiative, and the Parity and Breast Cancer Risk
research program. The Avon Foundation requires and facilitates collaboration
among funded beneficiaries to help advance the effectiveness of all programs.
The Avon Foundation has long provided significant funding for environmental
research related to breast cancer, including:
•$
1.5 million since 2004 to the National Institutes of Health/National Institute of
Environmental Health Sciences in Research Triangle Park, N.C., to support the
Breast Cancer and the Environment Research Centers and adjunct studies to
The Sister Study.
•$
1.5 million since 2004 to Silent Spring Institute in Massachusetts to support its
efforts to identify and change the links between the environment and women’s
health, especially breast cancer.
•T
he Avon Foundation also funds patient access to care and non-environmental
specific research programs at a number of organizations that are active in the
exploration of environmental factors in breast cancer, such as the National
Cancer Institute, Centers for Disease Control, the University of Massachusetts
Amherst, and the University of California San Francisco. These organizations
update the Foundation on new areas of environmental exploration, and issues
and concerns in this field for future funding consideration.
2013 Avon Corporate Responsibility Report 26Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
COLLABORATING AND CONVENING
The Avon Foundation is helping lead and coordinate ongoing collaborations with
key cancer organizations and annually convenes experts from its own funded
organizations. These events foster innovation, share best practices in the areas
of breast cancer research, prevention strategies and patient services, and
emphasize our unique collaborative approach to grant making. Avon Foundation
Breast Cancer Forums and Summits alternate each year between convening
representatives from community-based programs that provide outreach, education
and early detection, and those from cancer centers engaged in scientific research
and treatment.
A few examples from 2013 include:
•L
ed and coordinated the Metastatic Breast Cancer Alliance (MBCA), which
launched in 2013 and comprises 23 breast cancer advocate organizations
and six pharmaceutical partners that have joined forces with the vision of
transforming and improving the lives of women and men living with metastatic
breast cancer. The Avon Foundation has dedicated staff time and resources
to lead the MBCA’s effort to conduct a comprehensive analysis of metastatic
breast cancer research and patient information and resources. The findings
were issued in October 2014 and new programs will be funded to address the
challenges identified.
•P
artnered with the National Cancer Institute (NCI) and the Center for Advancing
Innovation to launch the first-of-its-kind Breast Cancer Start-up Challenge
to link clinically interesting research-identified breast cancer inventions with
business school and industry experts who would develop business plans to
launch those inventions. Forty-six teams entered the contest, and the best business
plan was selected for each of the 10 breast cancer test or treatment inventions.
Teams are working to raise capital to launch new start-ups to further develop,
and potentially commercialize, the inventions to provide promising research results
to patients faster. The Breast Cancer Start-up Challenge winners will be announced
in 2014.
•C
onducted the second Racial Disparity in Breast Cancer Mortality study in
conjunction with the Sinai Urban Health Institute. The study, funded in 2013 and
released in 2014, found a black:white disparity in breast cancer mortality in 39
of the most populous U.S. cities, with 35 of those cities experiencing a widening
disparity over a 20-year period from 1990 to 2009. This study expanded on a
2012 study that examined the racial disparity in breast cancer mortality over a
three-year period (2005-2007) in the 24 largest U.S. cities.
• Issued a call for applicants for our second class of Avon Global Breast Cancer
Clinical Scholars Program. The program trains breast cancer specialists living
outside the United States at 12 leading Avon Foundation-funded U.S. breast
cancer centers. The goal of the program is to provide advanced training to
doctors so they can bring new skills and information to their home countries
that will improve the treatment and care of breast cancer patients. The inaugural
program brought 25 physicians—including 21 from Avon markets—to the United
States in 2012. The second class, comprising 23 physicians from 14 countries,
completed its studies in June 2014. Both classes of Scholars have since
returned home to share their learnings and improve breast cancer detection
and treatment in their countries.
2013 Avon Corporate Responsibility Report 27Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
EDUCATION AND AWARENESS
Time and again, we have proven that we can mobilize the Avon community to ignite
grassroots activism on a global scale.
Harnessing this unique capability, we have led breast cancer awareness programs
around the world. A few examples from 2013 include:
• Brazil: We engaged Representatives in more than 800 mobilization efforts across
the country, including many public activities educating women about the importance
of early detection. These events culminated with the first giant pink Ferris wheel set
up as the main attraction at an awareness event near a large shopping center in Sao
Paulo, during which Avon distributed 1.5 million breast self-exam kits over 10 days.
• Colombia: World famous soccer player Carlos “El Pibe” Valderrama joined the Avon
Breast Cancer Crusade by painting his well-known hair pink and drawing media
coverage across Latin America and Europe in advance of the annual Avon Walk in
Bogota. Avon Colombia also created a mobile application, “El Pibe Rosa App,” so
people could “paint” their hair pink and post it to social media to raise awareness
about breast cancer.
• Czech Republic: For the annual Avon Walk in Prague, 18,500 participants filled
the streets in pink, raising more than $300,000 for breast cancer prevention and
awareness. Additionally, 24 smaller local events engaging Representatives took
place throughout the Czech Republic. Funds raised supported educational and
screening programs as well as a helpline and other support programs for breast
cancer patients.
• Malaysia: Avon collaborated with the National Population and Family Development
Board and MYDIN Mall to provide free clinical breast health checks to 6,140 women
nationwide using six clinical buses.
2013 Avon Corporate Responsibility Report 28Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
AVON SPEAK OUT AGAINST
DOMESTIC VIOLENCE
Avon is dedicated to the empowerment of women globally,
and ending violence against women is a cause that is
integral to our philanthropy. Avon’s Speak Out Against
Domestic Violence initiative focuses on education, prevention
and victim support programs. Today, nearly 50 Avon markets
around the world raise funds and awareness to support
programs aimed at ending family and gender violence.
Through 2013, the Avon Speak Out Against Domestic Violence
initiative has donated nearly $58 million globally.
SPEAK OUT & EMPOWERMENT
FUNDRAISING PRODUCTS
Avon raises funds and educates people through the sale of unique Avon Speak
Out Against Domestic Violence Empowerment fundraising products, which have
raised $37 million through the end of 2013. These products include jewelry that
feature the infinity symbol, representing unlimited possibilities for all women once
they are free from violence. The Avon mark. brand also offers special m.powerment
fundraising products that support efforts to end dating and partner violence.
2013 Avon Corporate Responsibility Report 29Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
AVON DOMESTIC VIOLENCE IMPACT
Avon and the Avon Foundation fund efforts to build awareness, to educate and to
develop and implement prevention and direct service programs. We also support
leading global programs to end gender violence and support the creation and
implementation of laws to end violence against women.
U.S. DOMESTIC VIOLENCE FUNDING
Examples of domestic violence initiatives the Avon Foundation funded in the
United States in 2013 include:
•C
reated and funded a $500,000 grant program—See the Signs & Speak Out:
How Bystanders Can Help—which builds on the NO MORE study. The Foundation
selected three agencies to receive grants to create bystander training materials,
including websites, webinars, social media and other outreach materials to help
bystanders safely intervene when abuse is suspected or observed. These free
materials, available in November 2014, will be distributed to workplace and other
community settings in order to reach large numbers of people to help them
recognize the signs of abuse, respond, and refer victims and their families to
resources, and to get people talking about these issues.
• Continued its annual Avon Regional Domestic Violence grants program to support
dozens of agencies across the United States with small general operating grants
for local direct service and life-saving support programs in communities and
regions where Avon has business locations. The Foundation awarded 64 of these
grants totaling $500,000 in 2013.
•A
warded the Jeanne Geiger Crisis Center a $500,000 grant to expand its
comprehensive research-based Domestic Violence High Risk Team Model
(DVHRT). DVHRT focuses equally on offender accountability and victim safety,
can be widely replicated, and is accepted by both law enforcement and
domestic violence advocates. With new Avon funding, JGCC will improve DVHRT
effectiveness by building a Web-based Learning and Resource Center, a
cost-effective and efficient way to teach communities the basics of DVHRT and
to onboard new DVHRT members; and introduce a DVHRT Certification Process
to ensure proper replication through a thoughtful review of the policies, protocols
and practices of the team once it has been operational for one full year.
•P
rovided significant additional funding to domestic violence agencies with
projects that demonstrated the potential to be replicated as national or global
models. Highlights of these funded programs include support of: The National
Domestic Violence Hotline for advocate phone and digital online support; the
National Network to End Domestic Violence for the Annual DV Shelter & Services
Survey; the David Lynch Foundation for therapeutic and restorative mediation
practices for victims, their families and advocate practitioners; Santa Clara
College to develop and disseminate a campus sexual assault prevention and
awareness video; and Cornell University Law School for the Avon Global Center
for Women & Justice, which convenes judges from across the globe at an annual
conference, catalogs gender-violence case law to expedite global use, and
provides clinical support for global judicial projects.
2013 Avon Corporate Responsibility Report 30Company Profile CEO Message Environmental Sustainability Philanthropy People Production & Supply Chain About This Report
GLOBAL EFFORTS TO END VIOLENCE
AGAINST WOMEN
Examples of global programs we funded in 2013 include:
•A
nnounced the 2013 Avon Communication Awards: Speaking Out About
Violence Against Women as one feature of Avon’s 2013 International
Women’s Day celebration. The awards honored five non-governmental
organizations from Pakistan, Tanzania, Nepal, Peru, and Ukraine, for their
outstanding work to bring attention to the need to end violence against women
and awarded each with a grant to continue their work. Avon Foundation Global
Ambassador Salma Hayek Pinault and Avon CEO Sheri McCoy announced
the winners at the United Nations Headquarters during the 57th session of
the Commission on the Status of Women.
•E
xpanded the Global Partnership to End Violence Against Women, a
collaboration among the Avon Foundation, Vital Voices and the U.S. Department
of State that launched in 2010. In 2013, Avon funded a new Global Partnership
initiative that launched in 2014: Ensuring Laws Achieve Their Promise: The
Justice Institute on Gender Violence. In 2014 and 2015, the Justice Institute
will work with criminal justice professionals and service providers in India,
Mexico, Nepal, South Africa and other countries to develop and provide training
that promotes a victim-centered approach to holding offenders accountable for
their crimes.
•L
aunched the #SeeTheSigns of Domestic
Violence global social media campaign
on November 25, 2013 to address the issue
of domestic abuse during the 16 Days of
Activism Against Gender Violence, an
international human rights-based movement
against gender violence. The campaign
focused on engaging women and men
across the globe about the subtle signs of
abuse, educating them about the important
role they play in recognizing the signs among
their friends and family, and encouraging
them to help break the cycle of violence by
starting conversations about the issue. United by the hashtag #SeeTheSigns, the
campaign featured powerful graphics on Avon’s social channels in 27 countries
throughout each of the 16 Days of Activism. In Argentina, Fundación Avon dressed
Buenos Aires’ iconic monument, “El Obelisco,” in the center of the city, reaching
400,000 people on the first day of the campaign alone.
2013 Avon Corporate Responsibility Report 31You can also read
