Dive Brief:
- Coty said it was expanding its global parental leave policy on Tuesday and providing all employees, regardless of gender, access to a minimum of 14 weeks of fully paid parental leave, including employees who choose the adoption and surrogacy routes.
- The announcement from the luxury retail brand — which houses beauty and fragrance subsidiaries of Gucci, Burberry, Marc Jacobs, Calvin Klein and others — builds on its sustainability report released last month, which noted Coty had already fulfilled its 2022 pay equity goal and maintains a gender pay equity gap of less than 2% across all its global management.
- The company said the parental leave policy is an extension of its sustainability framework’s “people pillar” and would be launched in a phased approach across countries. All employees will have access to the new minimum by the end of Coty’s 2024 fiscal year.
Dive Insight:
Aside from updating its parental leave policy, the beauty and fragrance giant also announced other diversity, equity and inclusion initiatives in its sustainability report. Coty said it had set targets to achieve gender balance in leadership positions by 2025 and plans on rolling out DEI training for all employees by then.
Women currently represent 47% of leadership positions within the company and make up a majority of the company’s board and executive committee, according to the report. Coty also said it had achieved its 2022 goal to pay equitably for similar roles and performance, regardless of gender.
“Diversity and inclusion are not only moral imperatives but also business ones,” Coty’s chief procurement officer, Stephane Delbos, wrote in a letter addressed to suppliers. Delbos said DEI was “vital for the wellbeing of every employee” and “fundamental for a successful and thriving company.”
On the environmental front, the company said it had made headwinds on achieving its scope 1 and 2 emissions reduction goals, aligned with the Science Based Targets initiative, and reduced emissions by 82%, surpassing its initial goal of 50%. Coty added it had made significant progress in establishing a scope 3 emissions reduction plan and engaging with its brands to drive action. The company is looking to cut its scope 3 emissions 28% by 2030, compared to a 2019 baseline, and will launch an acceptance criteria for product innovation to accelerate scope 3 reductions in the upcoming fiscal year.
The consumer and luxury brand also reduced energy consumption by 23%, exceeding its initial objective of 20% reduction by 2030, compared to a 2019 baseline. According to its sustainability report, 94% of electricity used in company operations was sourced from renewable sources. The company’s sustainability framework is guided by the United Nations’ Sustainable Goals, which is a set of 17 goals UN member states adopted in 2015 that include expanding access to affordable clean energy and reducing inequalities.
Coty’s portfolio includes almost 40 prestige brands, and is home to celebrity-founded lines from David Beckham, Katy Perry, Kim Kardashian and Kylie Jenner.
