ESRS E5 – Resource Use and Circular Economy
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Resource Use and Circular Economy
Material Impacts, Risks, and Opportunities
Resource use and the circular economy are important components of our sustainability strategy. In our double materiality assessment, we have identified material impacts and risks in these areas, particularly with regard to the inflow and outflow of resources, and waste.
The use of large quantities of raw materials in our products, the disposal of these products and their packaging at the end of the product’s life cycle, and the design of the packaging can all affect the amount of waste produced and thus have a negative impact on the environment. Products in the Consumer and tesa business segments are composed of various materials and differ fundamentally in their characteristics. Products in the Consumer Business Segment are primarily aimed at skin care, while tesa’s products are used both in industrial processes and in the home. Product design in both business segments is based as far as possible on appropriate circular principles, with the following criteria playing a key role: reusability, remanufacturing, recycling, recirculation by the biological cycle, and optimizing the use of the product or material through other circular business models.
As both business segments use plastic packaging and must therefore take regulatory requirements into account, we have also identified material financial risks arising from resource inflows and outflows. Through targets for improving the recyclability of packaging at the end of its life cycle and increasing the proportion of recycled (secondary materials) and bio-based materials used, we want to help reduce the risk arising from new legislation such as the EU’s plastic tax as part of the “European Green Deal,” while also meeting our obligations as a manufacturer of consumer goods. Our targets also help reduce the impact of the “European Packaging and Packaging Waste Regulation” (PPWR) on our packaging design.
A detailed overview of all identified impacts, risks and opportunities, and the methodology used for the double materiality assessment can be found in the chapter “ESRS 2 — General Disclosures.”
Policies Related to Resource Use and Circular Economy
Beiersdorf and its business segments are committed to strengthening the circular economy and have addressed this matter in corresponding company policies. The circularity of our products, active ingredients and packaging is of great importance to us. From selecting the substances used to the design of products, we take a holistic approach that helps determine the recyclability of the raw materials we use and the impact they will have on the environment at the end of their life cycle.
The focus of the policies and fundamental approaches varies by business segment, as different raw materials and products are used. While packaging plays a major role in the Consumer Business Segment, it is much less important at tesa. For this reason, we set specific priorities depending on the segment in question.
Consumer
Consumer
Beiersdorf Environmental Policy
The “Environmental Policy” is described in the chapter entitled “ESRS E1 – Climate Change;” it sets out how we want to reduce the impact of our business activities on the environment. The circular economy is a key aspect of the policy and defines our approach to improving the circularity of our products. In the areas of resource use and the circular economy, our “Environmental Policy” aims to increase the proportion of secondary raw materials used in our products, particularly in our packaging. The policy also addresses sustainable sourcing of raw materials and the use of renewable materials in our products. Our “Environmental Policy” covers the material negative impacts and risks we have identified both in our own operations and along the upstream and downstream value chain with regard to the sub-topics of resource inflows, resource outflows, and waste.
On the basis of this policy and our self-imposed targets, we derive actions which are then approved by the Executive Board.
The Executive Board is responsible for incorporating product sustainability into our Win with Care corporate strategy, as well as at the brand level. The Corporate Sustainability Team reports directly to the Executive Board. Our Sustainability Council maintains regular communications with the senior managers in Marketing, R&D, and Supply Chain. The body reports on ongoing projects and monitors the status of target achievement. We deploy the expertise of different departments and involve external stakeholders such as customers, suppliers, sustainability consultancies, and NGOs to implement projects across different functions and value chains.
tesa
tesa
tesa Environmental Guidelines
The tesa Business Segment has its own globally applicable “Environmental Guidelines” (see chapter “ESRS E1 – Climate Change”). The sections on waste and resources, in particular, examine our approach to resources, waste and the sustainable sourcing of materials, while also addressing the material impacts our business has on resource inflows and outflows, and waste. Under the “Environmental Guidelines,” the principles of “avoid, reduce and reuse” take precedence over disposal. The policy also requires our sites to document all relevant waste, which includes a description of the waste, the quantity, classification, and disposal routes. A record of whether resources, notably raw materials and chemicals, have been handled responsibly is also kept. Responsible and sustainable sourcing of raw materials, e.g. in accordance with FSC® certification criteria, is also part of the policy.
Actions related to Resource Use and Circular Economy
Consumer
Consumer
In a cross-departmental program, we have identified key long-term fields of action relating to our material impacts and risks with regard to the circular economy and resource use. The aim of the program was to develop areas of innovation consistent with our overarching sustainability targets and our Net Zero target.
With the following actions, we aim to reach not only our short-term targets for 2025 but also our new product ambitions for 2032.
Blue Horizon program
Description: Our “Blue Horizon” program has helped to identify levers that will allow us to determine long-term potential for improvement. The key is to reduce the weight of packaging, increase the use of secondary and bio-based materials, and use packaging systems that can be refilled multiple times to extend the life of the packaging.
The innovation process closely monitors our targets of reducing the use of fossil-based virgin plastics by the end of 2025, incorporating more recycled materials, and improving the recyclability of our products and packaging. Actions to achieve this target include reducing packaging materials, replacing fossil-based virgin plastics with recycled materials, and using bio-based plastics. Targets have been set for specific brands and product categories. The Corporate Sustainability department, the Sustainability Council, and the Executive Board all monitor the achievement of these targets.
Scope: All packaging in the Consumer Business Segment
Time horizon: By 2025
Expected outcome: The actions aim to reduce the use of fossil-based virgin plastic. By doing so, we aim to minimize the negative impacts identified as material with regard to resource outflows and resource inflows.
Progress: Reduction in the use of fossil-based virgin plastic in 2024: –16%
“Women in Circularity” Initiative
Description: The “Women in Circularity” initiative is a social-environmental initiative that supports four plastic waste recycling organizations with a social business concept by providing donations from our COVID-19 aid program. Four recycling organizations are currently being supported, i.e. “Delterra” in Argentina, “Recycle Up! Ghana” in Ghana, “Green Worms” in India and “TakaTaka Solutions” in Kenya. A donation of €4 million is empowering the above-mentioned organizations to provide income and development opportunities for more than 1,600 women in the waste management sector. The initiative will help increase the capacity of these organizations to collect and recycle plastic waste to around 15,000 tons per year by expanding their plastic waste management infrastructure, including new recycling plants.
Scope: Argentina, Ghana, India, Kenya
Time horizon: Ongoing
Expected outcome: We expect the expansion of infrastructure to promote the recycling of plastic waste in emerging economies and create jobs and training programs to support women in the waste management industry. As such, the initiative is targeting the impact identified as material with regard to waste.
Progress: The organizations are currently building the necessary infrastructure and preparing for the start of operations. From 2025, we will be in a position to report on the progress achieved.
tesa
tesa
For our products in the tesa Business Segment, we are implementing actions that aim to reduce the use of fossil-based, primary raw materials, particularly plastic, while increasing the proportion of recycled or bio-based raw materials. The focus here is to switch to the certifiably sustainable sourcing of more bio-based raw materials and to anchor sustainability assessments in product development. Implementation will be planned and managed by the business units.
Switching of product packaging
Description: An ongoing program that includes actions to switch the materials used in packaging in the Industry and Consumer business unit so that we can achieve our targets by 2025.
Scope: All packaging for products manufactured in-house by the tesa Business Segment (globally)
Time horizon: By 2025
Expected outcome: The actions aim to reduce the use of fossil-based virgin plastic by 50% compared to 2019. We are thus aiming to minimize the negative impacts identified as material with regard to resource outflows.
Progress: Reduction in the use of fossil-based virgin plastic in 2024: –14%
Targets Related to Resource Use and Circular Economy
In the Consumer and tesa business segments, we have set ourselves specific voluntary global targets for resource use and the circular economy. Beiersdorf’s targets in the field of circular economy, such as promoting recycling and reducing plastic waste, are closely linked to the objectives of the European Green Deal, which aims for a climate-neutral, resource-efficient, and circular economy by 2050.
Consumer
Consumer
Target |
|
Level of the waste hierarchy |
|
Base year |
|
Base value (t) |
|
Target |
|
2024 |
|---|---|---|---|---|---|---|---|---|---|---|
50% less fossil-based virgin plastic in our packaging by 2025. |
|
— |
|
2019 |
|
69,616 |
|
–50% (in relative terms) |
|
–16% |
Incorporation of 30% recycled material in our plastic packaging by 2025. |
|
Recycling |
|
2019 |
|
— |
|
30% (in relative terms) |
|
16% |
Make 100% of our packaging refillable, reusable or recyclable by 2025. |
|
Preparation for reuse |
|
— |
|
— |
|
100% (in absolute terms) |
|
“Design for recycling”: 83% |
|
|
|
|
|
“Global recyclability”: 79% |
As announced last year, we now expect to reach our target for reducing fossil-based virgin plastic in 2026 rather than in 2025. This development is due to longer lead times for molds and equipment, as well as volume growth that was above expectations.
Our target to make 100% of our packaging refillable, reusable, or recyclable by the end of 2025 relates to the end of the packaging life cycle. Since 2021, in order to make our progress with respect to recyclability measurable, we have been using the circular economy model promulgated by the “Ellen MacArthur Foundation.” We also established “Design for Recycling,” a further metric that requires packaging to be recyclable in at least one country from the outset, even if this is not yet globally possible given today’s infrastructure. This means that all packaging that is already globally recyclable today also meets the “Design for Recycling” criteria. Both indicators – “Design for Recycling” and global recyclability – have been applied to all types of packaging and materials we use (plastic, metal, glass, and paper) since 2022. We assess the recyclability of our products and the “Design for Recycling” digitally using a methodology developed by an independent certification body; the analysis relates to the proportion of recyclable materials in the total packaging weight. We then use these individual analyses to determine the recyclability of the overall portfolio.
Together with leading recycling experts, we are continuing to work on redesigning the packaging of our entire product portfolio. In order to make the most progress, we are focusing on the most impactful improvements. However, the global recycling infrastructure and assessment criteria for recyclability are still evolving and beyond our control. This applies, for example, to products with flexible packaging and small-format packaging, and is resulting in a delay in achieving the goal of 100% recyclable, refillable, or reusable packaging by 2025.
We have therefore now adjusted our existing target: In addition to the proven packaging solutions of reuse and refill, we now aim to design 100% of our packaging in accordance with the “Design for Recycling” criteria by 2032. In the reporting year, 83% of the packaging in our product portfolio met the “Design for Recycling” criteria.
For the 2032 time horizon, we have set ourselves ambitious targets that further demonstrate our motivation to design products with maximum circularity beyond their useful lives. These are detailed in the chapter entitled “ESRS 2 — General Disclosures.”
tesa
tesa
Target |
|
Level of the waste hierarchy |
|
Base year |
|
Base value (t) |
|
Target |
|
2024 |
|---|---|---|---|---|---|---|---|---|---|---|
70% of the materials used in our products and packaging to be made from recycled or bio-based material by 2030. |
|
Recycling |
|
— |
|
— |
|
70% |
|
25% |
Reduce the use of non-recycled fossil plastics (excluding adhesive masses and packaging) by a half by 2030. |
|
Avoidance |
|
2018 |
|
26,931 |
|
–50% (in absolute terms) |
|
14% |
Metrics Related to Resource Use and Circular Economy
Consumer
Consumer
Most of our packaging is made of plastic as this material is not only light and extremely stable, but also flexible. This means that some of the materials we use are based on finite fossil resources and are often not recycled. Our targets and actions focus on optimizing our plastic packaging according to the principles of “avoid, reduce, reuse and recycle,” thus helping to sustain the circular economy. To ensure that our actions are measurable, we have set ourselves global targets which can be found in the table in the section “Targets related to Resource Use and Circular Economy.” Other important raw materials used in the packaging for our products are paper, glass, and aluminum.
We mainly use raw materials of natural origin, along with minerals in the manufacture of our products. The total amount of raw materials used in our cosmetic products and the raw materials of natural origin are listed in the table below. The total weight of raw materials used is divided into two components: raw materials of natural origin as measured by the “Natural Origin Index” and raw materials of natural origin that are sustainably sourced and subject to a certification system.
tesa
tesa
Many different raw materials are needed to manufacture and package the products of the tesa Business Segment.
Both fossil and plant-based raw materials are used in the manufacture of the products. These materials are often used for plastic foils that must satisfy stringent technical requirements when used as carriers or cover film for adhesive tapes. In addition, some adhesive formulae, such as acrylate-based adhesives, are based on fossil raw materials. Bio-based raw materials such as paper, natural rubber, and adhesive resins are also used in the production of adhesive tapes. Through certifications such as FSC®, PEFC and comparable standards, we are committed to verifiably certified responsible sourcing of these raw materials. We want to increase the proportion of recycled or bio-based raw materials in the manufacture of our products, while reducing the use of non-recycled fossil plastics (excluding adhesive masses). To ensure that our actions are measurable, we have set ourselves global targets which can be found in the table in the section “Targets related to Resource Use and Circular Economy.”
tesa uses plastics as well as paper and cardboard in its packaging. Currently, many plastics are not yet of recycled origin and some of the packaging itself cannot, as yet, be recycled. What is more, not all paper and cardboard is procured from sustainably certified sources. As is the case in product manufacturing, we are working hard to improve this situation.
Resource inflows |
|
Metric |
|
Unit |
|
Consumer |
|
tesa |
|
Total |
|---|---|---|---|---|---|---|---|---|---|---|
Raw materials |
|
|
|
|
|
|
|
|
|
|
Total raw materials used |
|
Total weight of raw materials used in our products |
|
Kt |
|
851 |
|
103 |
|
954 |
Total consumption of raw materials of natural origin |
|
Total weight of raw materials of natural origin in our products |
|
% |
|
87 |
|
19 |
|
78 |
Total consumption of raw materials of biological origin, sustainably certified |
|
Total weight of raw materials of natural origin, sustainably certified, in our invoiced products |
|
kt |
|
39 |
|
10 |
|
49 |
Packaging materials |
|
|
|
|
|
|
|
|
|
|
Total use of packaging materials |
|
Total amount of packaging materials used in our products |
|
kt |
|
173 |
|
14 |
|
187 |
Total use of packaging materials from non-fossil sources |
|
Proportion of non-fossil raw materials used in our packaging materials |
|
% |
|
59 |
|
60 |
|
59 |
Total use of packaging materials from non-fossil sources, sustainably certified |
|
Proportion of non-fossil raw materials used in our packaging materials that are certified as sustainable |
|
% |
|
3 |
|
51 |
|
7 |
Secondary material relative to total packaging consumption |
|
Proportion of recyclates in our packaging materials |
|
% |
|
19 |
|
7 |
|
18 |
Sum of raw materials and packaging (fossil-based) |
|
Sum total of packaging materials and raw materials of fossil origin |
|
kt |
|
922 |
|
89 |
|
1,011 |
Sum of raw materials and packaging (non-fossil-based) |
|
Sum total of packaging materials and raw materials of non-fossil origin |
|
kt |
|
954 |
|
28 |
|
982 |
Resource outflows |
|
|
|
|
|
|
|
|
|
|
Proportion of recyclable packaging |
|
Global recyclable packaging |
|
% |
|
79 |
|
— |
|
— |
Methods and significant assumptions
As the negative impacts identified as material are concentrated in the downstream value chain and not in our own operations, no waste metrics are reported.
Consumer
Consumer
The data on resource inflows and outflows are derived from direct measurements conducted by us on the basis of quantities purchased and consumed.
We used the following criteria to classify products designed according to circular principles (in our case, primary packaging):
- all plastic packaging
- all paper packaging
- all glass packaging
- all aluminum packaging
The secondary materials, which we mainly use in our packaging, are provided by external partners. Double counting of materials during data collection is avoided by clearly labeling the materials internally.
Our targets aim, in particular, to expand circularity in product design, increase the volume of recyclable materials used, minimize the use of primary raw materials, and source and utilize renewable resources sustainably.
Our objectives do not take account of: waste management, including preparations for the proper treatment of waste, and other aspects relating to the use of resources or the circular economy.
The “Natural Origin Index,” which quantifies the proportion of natural components in a given raw material, is based on ISO 16128-1:2017 and ISO 16128-2:2017. The index is defined by raw-material suppliers and is used to determine the natural content of the raw materials used in our recipes. Due to product differences, the non-fossil proportion of raw materials used for the tesa Business Segment is determined using a different method.
The application of the cascade principle to the reported key figure “Total raw material consumption of biological origin, sustainably certified” is not meaningful, as palm oil cannot be materially recycled or used multiple times after being used in cosmetic products.
tesa
tesa
The data on resource inflows and outflows are derived from direct measurements conducted by us on the basis of quantities purchased and consumed. The classification of bio-based and secondary materials is carried out by experts. Any gaps in data were filled using estimates extrapolated from sales figures. It is not yet possible to determine the recyclability of packaging for the tesa Business Segment. Due to the different applications and markets of the products in the tesa business segment, no economic or technical criteria of cascade utilization are applied.