ESRS E5 – Resource Use and Circular Economy
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Resource Use and Circular Economy
Material Impacts, Risks, and Opportunities
In our double materiality assessment, we identified material negative impacts and one risk with regard to resource inflows, resource outflows, and waste.
IRO |
Description |
Value chain |
Time horizon |
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Resource inflows |
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A wide variety of biological materials, new fossil-based materials, and packaging are consumed in the production of our products. |
Own operations |
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Resource outflows |
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The products contribute to a significant outflow of materials and plastic packaging. |
Own operations |
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Most tesa products (e.g., adhesive tapes) cannot be recycled at the end of their life cycle, which negatively impacts the circularity of plastic flows. |
Downstream (tesa) |
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New EU regulations in the area of circular economy result in additional fees and investments in sustainable packaging innovations. |
Own operations |
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Waste |
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At the end of their life cycle, packaging waste is generated. Products are primarily packaged in plastic and/or cardboard boxes, which can be recycled but are not fully biodegradable. In countries without proper recycling infrastructure, these materials may end up being incinerated or landfilled, and in cases of improper disposal by consumers, may ultimately enter the environment. |
Downstream |
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Positive impact
Opportunity
Long termThe use of large quantities of raw materials in our products, the disposal of the products and their packaging at the end of their life cycle, as well as packaging design, can contribute to waste generation and thus have a negative impact on the environment.
The products in the Consumer and tesa Business Segments consist of various materials and differ fundamentally in their characteristics. We have established processes to design the products of both business segments, as far as possible, based on appropriate circular principles. The following criteria play a role in this context: reusability, refurbishment, recycling, return to the biological cycle, and optimization of the use phase of the product or material through other circular business models.
Regarding plastic packaging, we aim to achieve better recyclability at the end of the life cycle as well as an increased share of recycled (secondary materials) and bio-based materials. In this way, we aim to help reduce our risk arising from the requirements of new legislation, for example within the framework of the “European Green Deal,” while at the same time fulfilling our responsibility as a consumer goods company.
Policies Related to Resource Use and Circular Economy
Beiersdorf is committed within its business segments to strengthening the circularity of products, ingredients and packaging, and has addressed this in corresponding policies. We pursue a holistic approach from the selection of the substances used to the design of our products, which influences recyclability and the environmental impact of the raw materials used at the end of their life cycle. The focus areas of the policies and the underlying approaches vary by business segment, as different raw materials, other materials, and products are used to different extents.
Consumer
Topic-related content |
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The policy defines our approach to increasing circularity. One objective is to increase the share of secondary raw materials in our products, particularly for our packaging. It also addresses the sourcing of raw materials as well as the use of renewable materials in our products. Based on this policy and our targets, measures are derived and approved by the Executive Board. |
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Reference |
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For a detailed description of the “Beiersdorf Environmental Policy,” please refer to chapter “ESRS E1 – Climate Change.” |
Key content |
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The “Sustainable Paper and Cardboard Policy” aims to ensure that paper-based packaging and materials are designed to be sustainable and free from deforestation. At the same time, it is intended to serve as a lever in relation to packaging for achieving our net-zero target to mitigate climate change (see chapter “ESRS E1 – Climate Change”). The policy is based on the waste hierarchy principles “avoid, reduce, reuse and recycle” and prioritises recyclable solutions. Since the policy update in 2024, all paper-based materials must use recycled fibres or fibres certified by the Forest Stewardship Council (FSC®). The materials used for all folding boxes, blister cards and package inserts have already been recycled or FSC®-certified since 2020. |
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Scope |
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The policy covers all paper-based materials, including folding boxes and promotional materials. It applies worldwide to all products produced by the Consumer Business Segment or manufactured by third parties and distributed by Consumer. |
Responsibility |
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The Vice President Sustainability is responsible for implementing the policy. |
Third-party standards/initiatives |
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The policy does not refer to a specific standard or third-party initiative but is aligned with regulatory requirements such as the EU Regulation on deforestation-free products (EUDR). |
Consideration of stakeholder interests |
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The policy update incorporated feedback from suppliers on the previous version (2018). In addition, the revised policy was communicated to relevant stakeholders (e.g. suppliers) and discussed in direct dialogue. |
Availability |
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The policy is available to business partners via the download center on the company website. |
tesa
Topic-related content |
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This policy addresses, among other aspects, the handling of resources and waste as well as environmentally sustainable procurement, and prioritizes the waste hierarchy principles “avoid, reduce and reuse” over disposal. It requires our sites to document all waste, including its description, quantity, classification, and disposal routes. In addition, the environmentally responsible handling of resources, particularly raw materials and chemicals, is stipulated. Environmentally responsible and sustainability-oriented procurement of raw materials, for example in accordance with FSC® certification criteria, is also included. |
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Reference |
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A detailed description of the “tesa Environmental & Energy Policy” can be found in the section “ESRS E1 – Climate Change.” |
Actions Related to Resource Use and Circular Economy
Consumer
Consumer
In a cross-functional collaboration of sustainability experts, we identified long-term areas for action that relate to our material impacts and our risk regarding circular economy and resource use. The objective was to develop innovation areas that are aligned with our overarching sustainability goals and our net-zero target (see chapter “ESRS E1 – Climate change”).
The following actions supported our short-term targets for 2025 and are intended to contribute to achieving the newly defined targets by 2030.
Action |
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We have adjusted our medium-term target for reducing greenhouse gas emissions (see chapter “ESRS E1 – Climate Change”) and, based on this, defined action areas for packaging through 2030. The focus is on further increasing the use of recycled material and continuously improving recyclability. We also aim to continue working on reducing packaging material, designing it for reuse, and using bio-based plastics. We provide targeted training for our employees involved in the innovation process on these action areas so that they can develop product-related measures to ensure the successful implementation of our targets. We continuously assess regulatory developments in the field of circular economy and integrate them into our internal training as well. The effectiveness of the product-related actions is reviewed regularly by the Sustainability Council with the support of our packaging experts. |
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Scope |
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All packaging in the Consumer Business Segment (global) |
Time horizon |
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Until 2030 |
Expected outcome |
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By monitoring the implementation progress of the product-related actions using the metrics described below, we can reduce the use of fossil-based virgin plastic. In doing so, we aim to mitigate the material negative impacts identified in relation to resource outflows and resource inflows. |
Progress |
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See targets section (Consumer part) in this chapter |
Action |
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The initiative “Women in Circularity” is a socio-ecological initiative that supports four plastic recycling organizations with a social business model by providing donations from our COVID-19 relief program. Since 2023, through our partner “Haus des Stiftens,” we have supported the organizations “Delterra” in Argentina, “Recycle Up! Ghana” in Ghana, “Green Worms” in India, and “TakaTaka Solutions” in Kenya. At the end of 2024, we entered into a partnership with the Maecenata Foundation, through which we have supported four additional organizations since the beginning of the reporting year: “Sustainindo” in Indonesia, “sinba” in Peru, “Re-purpose” in South Africa, and “The Plastic Flamingo” in the Philippines. By providing a total of €8 million from 2023 and 2024, these organizations will be able to create income and development opportunities for more than 1,600 women in the waste management sector in the coming years. The initiative aims to increase the capacity of these organizations to collect and recycle plastic waste to approximately 15,000 tons per year. |
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Scope |
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Argentina, Ghana, India, Kenya, Philippines, Indonesia, South Africa, and Peru |
Time horizon |
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Ongoing |
Expected outcome |
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We expect the expansion of infrastructure to promote plastic waste recycling in emerging countries, as well as the creation of jobs and training programs to support women in waste management. The initiative therefore targets our material impact regarding waste. |
Progress |
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By the end of 2025, the first four organizations were operational. Overall, the organizations recycled more than 7,000 tons of plastic during the reporting year. |
tesa
tesa
For products in the tesa Business Segment, we are implementing actions to reduce the use of fossil primary raw materials, particularly plastics, and to increase the share of recycled and bio-based raw materials. The focus is on gradually shifting toward certified sourcing of bio-based raw materials and integrating a sustainability assessment into product development. Implementation is planned and managed within the business units.
Action |
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An ongoing program includes measures to transition our packaging to recycled and bio-based materials. The program, which was officially scheduled to run until 2025, has been extended. |
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Scope |
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All packaging of self-manufactured products in the tesa Business Segment (global) |
Time horizon |
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Until 2025 |
Expected outcome |
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The implementation of these measures was intended to reduce the use of fossil virgin plastics in our packaging by 50% by the end of 2025 compared to 2018. For the period up to 2030, we plan to define new targets in 2026. This continues to address the reduction of our material negative impacts on resource outflows. |
Progress |
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With a 63% reduction in fossil virgin plastics in our packaging, we exceeded our target by the end of 2025. |
Change vs. prior year |
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The base year has been adjusted from 2019 to 2018 due to improved data quality. |
Targets Related to Resource Use and Circular Economy
Regarding resource use and the circular economy, the Consumer and tesa Business Segments have each set voluntary global targets. These Beiersdorf targets are closely linked to the objectives of the European Green Deal, which aims for a climate-neutral, more resource-efficient, and circular economy by 2050.
Consumer
Consumer
The following circular economy targets of the Consumer Business Segment all spanned a period up to 2025 and supported the overarching objectives of the “Beiersdorf Environmental Policy.” They applied to our own operations and related to plastic packaging, with the exception of our joint venture NIVEA-Kao and the brands Chantecaille, La Prairie, and Coppertone. Specifically, they focused on: expanding circular product design, increasing the circular material use rate, minimizing primary raw materials, and sustainably sourcing and using renewable resources. Excluded were waste management, including preparation for proper disposal, and other aspects related to resource use or the circular economy.
The targets were not based on further scientific findings. While individual studies exist in the context of the circular economy, there are currently no standardized indicators that could serve as a basis for uniform measurement. Packaging experts from our brands and the Corporate Sustainability Team were involved in developing our targets. We also considered the perspectives of external stakeholders, particularly trade partners and suppliers. Key performance indicators for monitoring the targets were collected monthly (with the exception of quarterly data collection for the target on refillable, reusable, and recyclable packaging) and regularly reported to the CEO, the Sustainability Council, and participants in the innovation process.
Target |
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By 2025, the volume of virgin fossil-based plastic in our packaging is to be reduced by 50% compared to 2019. The target refers to the reduction level within the waste hierarchy. |
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Base year and baseline value |
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2019: 69,616 tons |
Progress |
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25% reduction vs. previous year; total reduction from 2019 to 2025: 37%; we therefore did not achieve our target. |
Methodologies and assumptions |
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The key performance indicator for monitoring this target indicates the extent to which the use of fossil-based plastic was reduced in percentage terms compared to the base year. The value had to be reported as an absolute percentage reduction relative to the baseline. To calculate this, we linked sales data with packaging specifications, allowing us to precisely determine the total weight of plastic packaging used and the share of recycled plastic, in both absolute and percentage terms, on an annual basis. No extrapolation for missing master data was performed for this metric. |
Changes vs. prior year |
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It was already announced in 2024 that achievement of the target would be delayed. This was primarily due to higher-than-expected growth in recent years. In addition, we determined that technical challenges and cost factors were slowing down the adoption of non-fossil virgin plastics. For this reason, we will no longer pursue this target and will instead focus on the following targets up to 2030. |
Target |
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By 2025, our plastic packaging was to consist of 30% recycled material. While we aim to prioritize recycled materials for circular economy reasons, this is not possible for all formulations due to technical requirements. In such cases, we will use renewable plastics, which can be derived from renewable raw materials and thus represent a sustainable alternative to virgin plastic. The target refers to the recycling level within the waste hierarchy. |
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Base year and baseline value |
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2019, n/a |
Progress |
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30% recycled material in 2025; target achieved |
Methodologies and assumptions |
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The KPI associated with the target documents the percentage of recycled plastic relative to total plastic use. To calculate this, we linked sales data with packaging specifications. This enabled us to precisely determine both the total weight of plastic packaging used and the share of recycled plastic in absolute numbers and percentages. No extrapolation for missing master data was performed for this metric. |
Changes vs. prior year |
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After achieving our target in the 2025 reporting period, we set a new target for the period up to 2030: to integrate 50% recycled or renewable plastic material into our plastic packaging. |
Target |
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By 2025, 100% of our packaging was intended to be refillable, reusable, or recyclable. The target refers to the waste hierarchy levels of reduction, reuse, and recycling. |
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Base year and baseline value |
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n/a |
Progress |
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In the reporting year: 82% “Design for Recycling” and 78% global recyclability; target not achieved |
Methodologies and assumptions |
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The KPI for tracking the original target indicates the share of packaging that met “Design for Recycling” criteria or was globally recyclable. The calculation was based on the circular economy model of the Ellen MacArthur Foundation. Since 2022, recyclability has been assessed digitally for all packaging types and materials (plastic, metal, glass, and paper), with the proportion of recyclable materials determined relative to the total portfolio weight. No extrapolation for missing master data was performed for this metric. |
Changes vs. prior year |
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We are collaborating with external experts to further develop our packaging. Recycling infrastructures and criteria, particularly for flexible and small-format packaging, are still being established. Therefore, achieving 100% global recyclability is currently not feasible. Consequently, we have shifted our focus: going forward, we will concentrate on “Design for Recycling.” According to this metric, a package must be recyclable in at least one country from the outset. In line with our climate goals, we aim to achieve “Design for Recycling” for more than 90% of our plastic packaging by 2030. |
tesa
tesa
The following circular economy targets for the tesa Business Segment have a time horizon up to 2030 and support the implementation of the “tesa Environmental & Energy Policy.” Both targets cover globally sourced materials and packaging for our self-manufactured products (exception: adhesives for the target of less non-recycled fossil plastic). The targets were developed based on our tracked KPIs for resource inflows and outflows. The targets are not currently based on scientific findings. Internal functions, such as packaging experts, and management, but no external stakeholders were involved in setting the targets. Compared to the previous year, there were no changes to the targets in 2025. Progress KPIs are communicated quarterly to Senior Management and the Executive Board.
Target |
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By 2030, 70% of materials for our products and packaging are to consist of recycled or bio-based materials. The target refers to the recycling level within the waste hierarchy. |
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Base year and baseline value |
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n/a |
Progress |
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32% of materials were recycled or bio-based in 2025 |
Methodologies and assumptions |
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Data on resource inflows and outflows is collected through direct measurements based on purchasing and consumption volumes. Classification of bio-based and secondary materials is conducted by experts. |
Change vs. prior year |
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For the reporting year, we were able to access a larger amount of primary data. |
Target |
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By 2030, we aim to reduce the use of non-recycled fossil plastic by 50%. The target refers to the avoidance level within the waste hierarchy. |
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Base year and baseline value |
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2018, 29,480t |
Progress |
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13% reduction in non-recycled fossil plastic in 2025 |
Methodologies and assumptions |
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Data on resource inflows and outflows is collected through direct measurements based on purchasing and consumption volumes. Material classification is conducted by experts. |
Change vs. prior year |
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For the reporting year, we were able to access a larger amount of primary data. Base year changed from 2019 to 2018. |
Metrics Related to Resource Use and Circular Economy
Since the identified material negative impact related to waste focusses on the downstream value chain rather than our own operations, no KPIs are reported in this regard.
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Metric |
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Unit |
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Consumer |
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tesa |
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Group |
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Resource inflows |
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Raw materials |
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Total raw materials used |
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Total weight of raw materials used in our products |
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kt |
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907 |
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88 |
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996 |
Share of biological raw materials sustainably sourced |
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Share of biological raw materials sustainably certified |
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% |
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5 |
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12 |
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5 |
Packaging materials |
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Total use of packaging materials |
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Total weight of packaging materials used in our products |
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kt |
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170 |
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11 |
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180 |
Share of packaging materials of biological origin, sustainably sourced |
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Share of packaging materials of biological origin, sustainably certified |
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% |
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9 |
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43 |
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11 |
Secondary material |
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Total weight of recyclates in our packaging materials |
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kt |
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50 |
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7 |
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57 |
Secondary material relative to total packaging consumption |
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Proportion of recyclates in our packaging materials |
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% |
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30 |
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68 |
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32 |
Total weight of products and technical and biological materials |
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Total weight of products and technical and biological materials |
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Sum total of packaging materials and raw materials |
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kt |
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1,077 |
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99 |
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1,176 |
Share of biological materials sustainably sourced |
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Share of packaging materials and raw materials of biological origin that are certified as sustainable |
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% |
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5 |
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15 |
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6 |
Weight of secondary reused or recycled components |
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Total weight of recyclates in our packaging materials |
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kt |
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50 |
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9 |
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59 |
Percentage of secondary reused or recycled components |
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Proportion of recyclates in the total resource inflow |
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% |
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5 |
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9 |
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5 |
Resource outflows |
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Global recyclable packaging |
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Share of recyclable packaging |
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% |
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78 |
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n/a |
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n/a |
Methods and Significant Assumptions
Consumer
Consumer
Our packaging largely consists of plastics, as they optimally meet the requirements for low weight and high stability while maintaining flexibility. Other important raw materials for our product packaging include paper, glass, and aluminum. In addition to water, we primarily use raw materials of fossil, biological, or mineral origin in the production of our products.
The tonnages of raw materials and packaging materials placed on the market are calculated automatically based on the number of units sold per calendar year. The calculation is based on product bills of materials, the composition of formulations, and the included raw and packaging materials. If, in individual cases, the available data is incomplete (e.g., missing master data), tonnages are extrapolated based on the data available. In deviation from the reporting scope defined under ESRS 2, the indicators also include the Coppertone business.
Materials of biological origin that are sustainably sourced include paper packaging with FSC® certification and palm (kernel) oil-based raw materials with RSPO® certification.
Products designed according to circular economy principles – in our case, primary packaging – are categorized into four types: plastic, paper, glass, and aluminum. Secondary materials, which we mainly use in our packaging, are sourced from external partners. Double-counting in data collection is avoided through unique internal material labeling.
The “Global Recyclable Packaging” metric is aligned with the circular‑economy model of the Ellen MacArthur Foundation. Since 2022, recyclability has been assessed digitally for all types of packaging and materials (plastic, metal, glass, and paper), determining the share of recyclable materials as a percentage of the total weight of the portfolio’s primary packaging.
Applying the cascade principle (multiple uses of raw materials across stages) to the reported KPI “Total raw material consumption of sustainably sourced biological materials” is not useful. This is because palm oil – one of our main raw materials – cannot be recycled or reused after use in cosmetic products.
tesa
tesa
Both production and packaging of tesa Business Segment products require a wide range of raw materials. Fossil and plant-based raw materials are used in product manufacturing. These are often used for plastic films that must meet high technical requirements as carrier or release liners for adhesive tapes. Additionally, some adhesive formulations, such as acrylate adhesives, are based on fossil raw materials. Bio-based raw materials, such as paper, natural rubber, and tackifying resins, are also used in adhesive tape production.
For packaging, tesa uses plastics, paper, and cardboard. Currently, many plastics are still of non-recycled origin, and some packaging is not yet recyclable. Not all paper and cardboard materials are sourced from sustainably certified sources (such as FSC-certified sources). As in product manufacturing, we are actively working to improve this.
Data on resource inflows and outflows is collected through direct measurements based on purchasing and consumption volumes. Classification of bio-based and secondary materials is performed by experts. Data gaps were filled by extrapolation based on sales volumes. For tesa, recyclability of packaging cannot yet be determined. Due to the different applications and markets of products in the business segment, no economic or technical criteria of the cascade principle are applied.