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1、 2020 ENVIRONMENTAL,SOCIAL&GOVERNANCE REPORT leaving a positivelegacy for our world 2 the possibilities are beautiful.ffj We use the to improve lives,strengthen communities and enhance the world around us.power of beauty CEO Message 4 Community 23TABLE OF Introduction 5 Environment 28CONTENTS People
2、 9 SASB Index 33 Product 16 FISCAL 2019 NET SALES BY CATEGORY OUR FOOTPRINT(as of 10/31/2020)1,262 6 13.2 million 25,000+Cosmetics 50%stores distribution centers total store square footage products in store Skincare,bath and fragrance 22%Haircare products 500+$7.4 billion 50 35,000+and styling tools
3、 19%Services 5%brands offered in fiscal 2019 states associates Other 4%net sales 50%22%4%5%19%the possibilities are beautiful.3 CEO MESSAGE What a positive legacy means to us Over the past 30 years,Ulta Beauty has earned our reputation as the most admired beauty retailer by our guests,associates and
4、 investors.And after a year like 2020,its worth reflecting on our companys role at this moment in history.While our lives have been disrupted in so many ways,we believe in the power and possibility of beauty more than ever before.During this uncertain time,beauty provides happiness,hope and renewal,
5、helping us feel a little bit like ourselves again.But Ulta Beauty aspires to be known not only for providing all things beauty to our guests.We also want to leave a positive legacy on our world through environmental and social impacts.Though we are in the early stages of our sustainability journey a
6、nd environmental,social and governance(ESG)disclosure,operating our business in a responsible manner and doing the right thing for one another has always been part of who we are as an organization.Over the past year,we have worked to bring together our ongoing efforts and track our achievements acro
7、ss four focus areas People,Product,Community and the Environmentso we can more formally share our ESG strategy with you.We are pleased to share our progress in each of these areas in this inaugural ESG report.One of the accomplishments we are extremely proud of is the launch of Conscious Beauty at U
8、lta Beauty,a first-of-its-kind initiative that will inspire more informed,conscious product choices for guests,their loved ones and the environment.Through this program,we will provide transparency around brands that use clean ingredients in their products,as well as whose products are cruelty free,
9、vegan,use sustainable packaging and have a positive impact in communitiesall practices that we know matter to our guests.With the introduction of Conscious Beauty at Ulta Beauty,we also announced a sustainable packaging commitment that will align with other company initiatives to conserve resources
10、and protect the environment.the possibilities are beautiful.Another point of pride is our long tradition of being a diversity-forward company.In my seven years as CEO,we ve worked hard to represent the wonderful diversity of our communities in everything we do,from our marketing communications to ou
11、r brand partnerships and our team of associates.As the events of 2020 showed us,systemic racism is pervasive in so many aspects of our society.While we have long been aware of and worked to counteract this harmful legacy,broader awareness and calls to action in 2020 have sharpened our focus on these
12、 issues.Now,were working to accelerate our actions in this space and continue to be an authentic leader of diversity and inclusion in corporate America.Improving the lives of women and families in our communities is another enduring focus.Reflecting this commitment,as of the end of October 2020,we r
13、aised more than$37 million to benefit life-changing research at the Breast Cancer Research Foundation,which we have supported for more than a decade,and donated more than$1 million to support the efforts of Save the Children in rural communities.The COVID-19 pandemic has brought challenges and trage
14、dies unlike any we ve ever faced.Throughout this crisis,Ulta Beauty associates,especially in our stores and distribution centers,have continued to show incredible agility,creativity and commitment to the health and safety of our guests and one another.I want to thank my leadership team and all of ou
15、r associates for not only caring for themselves and each other this year,but also helping shape the positive legacy that Ulta Beauty will leave on the world well into the future.We look forward to continuing to update you on our progress.Mary Dillon Chief Executive Offjcer 4 the possibilities are be
16、autiful.ffj INTRODUCTION 2020 ESG REPORT ESG at Ulta Beauty We believe beauty makes the world a better place.Thats why the strategic focus of our ESG work is leaving a positive legacy for our world.Our ESG priorities are aligned with and are part of our overall business strategy.This work is focused
17、 on four key pillars,which contribute to a positive legacy through the people we employ and guests we serve,the products we ofger and the impact we have on the environment and on communities.PEOPLE We want all associates to feel that they belong at Ulta Beauty and can be their true,authentic selves
18、PRODUCT We empower guests to make informed choices about the products we offer COMMUNITY We improve the lives of women and families in our communities ENVIRONMENT We want to maintain the beauty of our environment and minimize our impact on the world around us the possibilities are beautiful.Board ov
19、ersight Ulta Beautys Board of Directors and Executive Team have overall oversight and accountability for sustainability within the organization.The Board has three committeesNominating&Corporate Governance,Compensation and Auditeach of which touches ESG issues in its own way.The Nominating&Corporate
20、 Governance Committee has primary responsibility for our ESG policies and practices,as well as associated risks.Our Compensation Committee has oversight of diversity and inclusion,and the Audit Committee oversees issues of cybersecurity and data privacy.Our General Counsel is the executive sponsor o
21、f our ESG program and works with a cross-functional team of experts,including representatives from human resources,growth and development,supply chain,merchandising and store operations,who drive ESG strategy across the four pillars.In addition,we have many associates who are passionate about ESG to
22、pics.5 6 INTRODUCTION2020 ESG REPORTthe possibilities are beautiful.ffj Corporate governance Strong corporate governance allows us to deliver value for shareholders.We do this with a diverse and engaged Board of Directors and leadership team who contribute a variety of experiences and perspectives.O
23、ur Board is composed of independent directors who bring a wide variety of expertise and leadership to help guide our CEO,who is also a director,and our management team.Board diversity One of the things that makes the Ulta Beauty Board of Directors uniquely efgective is its diversity,particularly gen
24、der diversity55%of our Board members are women.We are also proud to have Board members who are racially diverse and one member who identifjes as LGBTQ+.Regular refreshment of our Board helps us incorporate new ideas and perspectives,and 36%of our directors joined the Board within the last fjve years
25、.Risk management Our Board provides guidance and oversight on risk management activities and processes across the company.To ensure understanding of the risks we face as an enterprise,the Board receives regular management updates on our business operations,fjnancial results and strategy.The Board th
26、en discusses and provides guidance with respect to risks related to those topics.Since relaunching an enhanced enterprise risk management(ERM)program in 2016,we have successfully raised and improved risk awareness across the organization.In addition to sharing ERM results with our Board and leadersh
27、ip,we also share feedback with participating associates,who appreciate knowing their input is making a difgerence.We take a practical approach that incorporates the input of associates at all levels of the company,with special emphasis on the in-store and distribution center associates who know our
28、guests and operations best.Through this process,we engage approximately 150 associates per year.We are increasingly using technology to improve our approach,such as facilitating live voting and real-time data analysis of results.DIRECTORS BY RACE 82%18%White 82%Black 18%Women 55%Men 45%7.3 years dir
29、ectors average tenure 62 years directors average age Learn more about our business and governance:Overview for Investors Board of Directors listing Board Committee composition Governance documents Investor FAQs DIRECTORS BY GENDER 55%45%7 INTRODUCTION2020 ESG REPORTthe possibilities are beautiful.ff
30、j Data stewardship We value our guests and associates and the data they entrust to us,and treat their information and other fjnancial data with care and respect.We manage data security and privacy at the highest levels.Our Board of Directors has always actively engaged in oversight of cybersecurity,
31、and we recently highlighted this formal oversight role in the charter of our Audit Committee.Our CEO keeps the Board informed on a wide variety of cybersecurity and privacy matters via monthly reporting,regular reports in the Audit Committee and full Board discussions throughout the year.Ulta Beauty
32、s General Counsel also serves as our Chief Privacy Offjcer,and works closely with our internal data stewardship committee,including our Chief Information Offjcer and our IT Risk Management team,to ensure we take a holistic approach to caring for guest,associate and fjnancial data.Data stewardship in
33、cludes three primary focus areas:Personalization and privacy As a retailer,we use data to drive demand via targeted marketing,develop merchandise insights and strategies,support member recognition through our loyalty program and provide guest insights to drive business objectives across our company.
34、We safeguard this data by monitoring and complying with all privacy laws.In addition,we dont sell guest data,and we share aggregated and anonymized data with our brand partners and third-party vendors for our own use.Oversight and enablement Our Security and Network Operations Center(SNOC)constantly
35、 and proactively monitors our network and application landscape for threats and anomalies.We have established processes for sharing data and performing third-party risk assessment.Other recent improvements include disaster recovery planning and testing.Security All Ulta Beauty associates have a role
36、 as stewards of company data,and its essential that we educate them on how to keep data safe.As part of our annual Code of Business Conduct training,we train associates on how to keep devices and data safe in public places;how to avoid security threats and phishing scams;how to maintain a secure wor
37、kplace;and everyday practices that help maintain the security of corporate digital devices,data and systems.Our security approach also includes multiple layers of defense and testing of controls.All Ulta Beauty associates have a role as stewards of our data.8 INTRODUCTION2020 ESG REPORTthe possibili
38、ties are beautiful.ffj Ethics&compliance Its not only our products and services that make us the most loved beauty destinationits also the way we conduct business.Integrity inspires our actions and strengthens our reputation with guests,associates,communities,partners and investors.The Ulta Beauty C
39、ode of Business Conduct helps us work ethically and transparently in support of our mission,vision and values.All associates,offjcers and members of our Board of Directors are expected to act in accordance with the Code of Business Conduct.It is included in new hire materials for all associates,who
40、must read and acknowledge this policy each year.We also maintain Ulta Vendor Standards,which are shared with,and outline our expectations of,all Ulta Beauty vendors.These cover the ethical conduct and social and environmental compliance standards that are required of a responsible workplace.The Code
41、 of Business Conduct provides guidance on topics including diversity and inclusion,employee relations,fair competition,human rights,community involvement,environmental protection and more.We encourage associates to speak up to report any violations of the Code of Business Conduct.There are several w
42、ays to report a concern:Speaking with ones own manager or another manager Speaking to a Human Resources(HR)Business Partner Contacting the We Care!Lets Talk line,by email or phone Calling our third-party Ethics Hotline anonymously online or by phone Emailing Legal Services to reach our Chief Complia
43、nce Offjcer Our Ethics Hotline is managed by HR,but our General Counsel and Chief Compliance Offjcer also reviews all concerns.Each quarter,a cross-functional team meets to discuss reporting trends and share status of investigations and outcomes.The most commonly reported concerns are general HR-rel
44、ated matters.We continually improve our approach to compliance through the Ulta Compliance Network(UCN).UCN is a group of associates who regularly focus on compliance.The group meets quarterly and provides a way for these associates to share best practices,discuss challenges and identify useful tool
45、s or resources.Ulta Beauty Ethics&Compliance Policies Americans with Disabilities Act Policy Anti-Harassment Discrimination Policy Confjdentiality Policy Employment-At-Will Policy Ethics and Business in Business Transactions Policy Inappropriate Relationship Policy Insider Trading Policy Offjcial Go
46、vernment Inspections Policy and Procedure Open Door Policy Privacy Policy Ulta Beauty Gift&Gratis Policy the possibilities are beautiful.ffj people We want all associates to feel that they belong at Ulta Beauty and can be their true,authentic selves.Inclusive teams.82%of associates say their teams c
47、reate a diverse and inclusive working environment A place to learn and grow.A majority of promotions are internal Being exactly who you are.6,000+women elevated to management roles in the past fjve years 9 peoplePEOPLEthe possibilities are beautiful.ffj 2020 ESG REPORT Beauty from the inside out Our
48、 Ulta Beauty Culture Theres no place quite like Ulta Beauty.Were on a mission to use the power of beauty to bring out the possibilities within every person,and that work begins with our associates.While we are diverse in so many ways,our people share a passion for redefjning beauty and retailand a d
49、esire to build fulfjlling careers.The associate experience is grounded Annually,we receive feedback from deeper on specifjc topics.In 2020,the We build upon and reinforce our culture in our mission,vision and values.the majority of our associate base survey and roundtables zeroed in on our at every
50、level.Our CEO Mary Dillon We work as a team to give“wow”(approximately 78%)and follow a specifjc COVID-19 response and diversity and and other executives regularly make experiences to our guests,in service of process to make changes based on those inclusion work.We were pleased to themselves availab
51、le for open dialogue our vision of becoming the most loved insights.Our results often put us in the discover that 75%of associates surveyed in a variety of forums,including Town beauty destination and the most top global quartile of companies surveyed feel supported at Ulta Beauty,even amid Halls,st
52、ore and distribution center visits,admired retailer.for associate engagement globally.We the shifts and challenges of the past year.special small group gatherings and more.also hold roundtable sessions to dive We dont take our strong culture for granted.As a guest-centric company,we put a special fo
53、cus on the experiences and feedback of our in-store associates those who know our guests the best.We regularly conduct an associate engagement survey to take the pulse of associates satisfaction with their role,their leader and the company as a whole.“Without question,2020 has reinforced the power o
54、f building a highly engaged,diverse culture.Our long-term commitment to creating an environment where all associates feel they belong and all perspectives are valued is a focus for us as we do whats rightfor our people and our business.Diversity is a cornerstone of Ulta Beauty and will continue to s
55、et the tone for how we operate,grow and collaborate,in good times and challenging times alike.”Dave Kimbell,President,Ulta Beauty 10 PEOPLEthe possibilities are beautiful.ffj 2020 ESG REPORT Growing with us Training&development Ulta Beauty ofgers inspiring career paths for professionals at every lev
56、el.We provide opportunities to gain new expertise not only through traditional training programs,but also through participation in cross-functional projects.We fjnd new associates by meeting them where they are.Many associates learn about Ulta Beauty through word of mouth,but we also recruit through
57、 job postings,on campuses and online.For associates working in salon services,we often connect through professional platforms and licensing programs.While scaled back in 2020,our corporate internship program is typically another source of promising talent.We waste no time welcoming new associates to
58、 the Ulta Beauty team.Orientation takes a variety of forms across our stores,distribution centers and corporate offjce.For corporate associates,we organize a one-day event called the Ultamate Foundation,during which all new hires learn about the company and responsibilities of each department and en
59、gage with the Executive Team.Our CEO and Executive Team participate in this event.In-store associates take part in a structured onboarding program during which they engage in learning on specifjc tracks based on their role.All new store managers participate in a customized,role-based training progra
60、m known as Ultamate Pathways.Topics covered include store operations,guest service expectations and inventory control processes.Managers also get a full introduction to Ulta Beautys mission,vision and values,along with our commitment to diversity and inclusion.Given our value of Improve Always,ongoi
61、ng training is an important part of the associate experience.And theres always something new to learn.For example,in-store associates use a digital workplace tool for microtraining on new product lines,sales skills and,this past year,COVID-19 safety practices.The Ulta Beauty work experience is chall
62、enging,rewarding and fun.Associates have the opportunity to build individual development plans to help them work toward career goals,and to use a learning management system that houses training on role-specifjc skills,interpersonal skills and more.In 2020,even more training was delivered virtually,w
63、hich had the unexpected benefjt of allowing us to reach more associates than ever before.Our leadership development programs prepare promising future leaders for new levels of responsibility.Each year,we organize a training program that focuses on high-potential talent at the director level and abov
64、e.In 2019,we rolled out a new program through which offjcers mentor high-potential directors,with a specifjc focus on diverse talent.Across the company,the majority of our promotions are internal.As we continue to promote and develop from within,were building a bench of associates and leaders who kn
65、ow our company inside and out.11 PEOPLEthe possibilities are beautiful.ffjXX%2020 ESG REPORT Changing how the world sees beauty Diversity&Inclusion As a leader in the beauty industry,we have a responsibility to shape how the world sees and experiences beauty.Beauty can be fun,approachable and empowe
66、ring,and were committed to using the power of beauty to create a more inclusive world.While diversity and inclusion(D&I)have always been part of Ulta Beautys DNA,these beliefs informed purposeful work on our formal D&I program,which began in 2018.The programs goal is to create an inclusive environme
67、nt where every associate feels they can fully contribute and every guest is optimally served,regardless of difgerences.Throughout 2020,we took specifjc actions to embed D&I for associates and guests,through a journey to learn and develop awareness,understanding and celebration.Leveraging the power o
68、f diverse perspectives Celebrating diversity everywhere starts with a diverse workforce.With fjfty percent of our Executive Team made up of women,were proud to be a place where women arent only in the room;theyre at the head of the table.We know we have an opportunity to increase representation of p
69、eople of color across Ulta Beauty,particularly in leadership positions.Together,were building a workforce that refmects the available talent where we work,live and do business and one that mirrors our guest community.D&I is more than representation.Its also about creating an environment where associ
70、ates feel they belong and can be their authentic selves.A critical way we achieve this is by educating all associates on the lived experiences of their peers and key moments in time that have cultural or heritage signifjcanceas well as the unconscious beliefs and biases that shape our behavior today
71、.During fjscal year 2019,we welcomed the Check Your Blind Spots unconscious bias tour,hosted by the CEO Action for Diversity&Inclusion,that provided associates with an opportunity to learn about and explore ways to mitigate unconscious bias in their everyday lives.In 2020,we leaned into the national
72、 conversation on race through the Race Matters series.The series featured Ulta Beauty leaders and included sessions on being Black in America,white privilege and allyship.Participation was required of our 8,800+leaders,who had the option of attending a live session or completing the training on thei
73、r own.We concluded the experience by encouraging each associate to take ownership of their role to be an inclusive leader and colleague.To transform these lessons into action,attendees received support materials to promote open dialogue,awareness and greater understanding.ULTA BEAUTY ASSOCIATES Wome
74、n 92%Men 8%92%8%EXECUTIVE TEAM Women 50%Men 50%50%50%BOARD OF DIRECTORS Women 55%Men 45%55%45%12 13 PEOPLEthe possibilities are beautiful.ffj 2020 ESG REPORT Diversity&Inclusion(continued)Our D&I Champions Network also helps us promote D&I across our daily work and experiences.This team of enthusias
75、tic associates has committed to promoting the value and practice of a diverse and inclusive workplace by creating interactive educational experiences for their peers.They also identify opportunities for Ulta Beauty to engage with communities on D&I-related work.Launched in October 2019,the network h
76、as approximately 100 members and has organized numerous initiatives,including our celebrations of special days including:Martin Luther King,Jr.Day Lunar New Year Black History Month International Womens Day Asian Pacifjc American Heritage Month Pride Month Juneteenth Latinx Heritage Month National D
77、isabilities Employment Awareness Month Coming Out Day Veterans Day Transgender Day of Remembrance Offering beauty at its most inclusive From the products and services we ofger,to the people who appear in our marketing and advertising,were in a powerful position to shape societys meeting the moment c
78、alls for action against racism and police brutality in 2020 gave this work a special urgency.As a society,we began confronting racism and its presence in everyday systems,and stakeholders demanded more than statements of support from businesses.When UOMA Beauty CEO Sharon Chuter launched Pull Up or
79、Shut Up,challenging beauty brands to share posts on social media disclosing the number of Black employees they have in leadership roles,we responded quickly.Eighteen percent of Ultas Board of Directors,and 13%of our Executive Team leaders,identify as Black.Knowing that our associates were also looki
80、ng for ways to support the movement,we announced Double Up for Justice,a special gift-matching opportunity where the Ulta Beauty Charitable Foundation matched associate donations to organizations dedicated to racial equality.The program ran for two months and supported the Equal Justice Initiative,Y
81、WCA USA,Chicago Area Urban League and Skills for Chicagolands Future.64%18%While Ulta Beautys D&I program has been underway for some time,growing ULTA BEAUTY LEADERSHIP*women people of color*Leadership is defjned as director and above.14 PEOPLEthe possibilities are beautiful.ffj 2020 ESG REPORT Dive
82、rsity&Inclusion(continued)standards of beauty.Ulta Beautys goal is to respect and represent every guest through our words and our actions.Services training is one way were putting our commitments into action.In 2021,we plan to equip all stylists with foundational technical skills to support future p
83、lans in certifying our stylists in the art of textured hair.Externally,we are enhancing our multicultural marketing and communications strategies,such as amplifying BIPOC(or Black,Indigenous and people of color)-owned brands,founders,creatives and artists.In addition,we aim to ensure that all in-sto
84、re experiences are equitable,fair and unbiased.Were taking action to support this goal by conducting mandatory trainings for in-store associates and providing weekly bite-sized learning opportunities to focus on guest perspectives and reinforce key takeaways.We are ofgering similar training across t
85、he organization to help key decision-makers and associates in their own learning journeys and support our Champion Diversity value and inclusion competency.Exploring the possibilities We cant do it all on our own.Ulta Beauty aspires to be recognized as a D&I leader both inside and outside the retail
86、 industry,and is engaging with communities and external partners to scale up our impact.Were increasing our investments in organizations focused on addressing inequality and creating opportunity,such as YWCAs Until Justice campaign as a founding member of the Racial Justice League.Other opportunitie
87、s were exploring include increasing our spend with diverse suppliers and forming partnerships with infmuencers and brands who share our mission and values.This work is a journey,and we have a plan to hold ourselves accountable.Our D&I program is supported by a strong governance structure that keeps
88、our work moving forward.Working groups lead our efgorts to create more diverse and inclusive recruiting and development practices,in-store experiences and external partnerships.Next,we are localizing this work,incorporating D&I Councils at stores and distribution centers.D&I recognition Forbes 2019
89、Best Employers for Diversity Forbes 2019 Best Employers for Women Forbes 2020 Best Employers for Diversity Forbes 2020 Best Employers for Women Diversity Inc.Noteworthy Companies for Diversity PEOPLEthe possibilities are beautiful.ffj PEOPLE 2020 ESG REPORT Taking care of each other Safety,wellness&
90、benefits Our commitment to our associates and their well-beinginside and outside of workis one of our highest priorities.Ulta Beauty has carefully assembled a suite of benefjts that affjrms and supports all that our associates contribute each and every day.Well-being begins with health care for all
91、eligible associates,which includes those who work more than 30 hours a week for Ulta Beauty in any position.Coverage extends to eligible dependents,including spouses,same-sex partners and children under 26.Our healthcare plans are above market for retailers and other service industry companies.Our m
92、edical plans provide above-average levels of health care coverage,with less cost share placed on associates,compared to many other retailers.We ofger comprehensive medical plans that empower employees to choose the coverage that best suits them.Other key benefjts include:401(k)plan with up to a 4%co
93、mpany match Disability and life insurance Company-paid short-term disability pay at 80%of pay Additional insurance options,including legal,pet,home and auto Tuition reimbursement program Paid time ofg,including an extended illness bank Discounts on retail products and salon services And because well
94、ness,like beauty,is more than skin deep,we ofger mental health resources,such as counseling services and access to apps;fjnancial wellness planning and guidance;and health apps and educational resources for soon-to-be parents.These and other benefjts helped ease some of the hardships created by COVI
95、D-19.The Ulta Beauty Charitable Foundation maintains an Associate Relief Program through which we provide grants to associates facing unforeseen fjnancial setbacks.For associates who care for children who are learning from home,due to the COVID-19 pandemic,we also provided access to discounts for on
96、line educational resources.Across all locations,associates receive instruction on how to keep themselves and guests safe.Many associates receive training that is specifjc to their rolesfor example,salon professionals are trained in the safe handling of chemicals.bundles of joy The Ulta Beauty family
97、 is always growing.At any given time across our workforce,we typically have about 250 associates who are expecting a child.We help associates celebrate and prepare for this joyful milestone with information and resources.We also ofger adoption assistance for associates seeking to grow their families
98、 by adopting a child.15 the possibilities are beautiful.ffj product We empower guests to make informed choices about the products we offer.Limitless assortment.25,000+SKUs across 500+brands The power of choice.Transparent information about product ingredientsso guests can choose whats right for them
99、 A clean-beauty destination.200+brands certifjed by the Conscious Beauty at Ulta Beauty platform 16 product 17 PRODUCTthe possibilities are beautiful.ffj 2020 ESG REPORT All Things Beauty.All In One Place.We have been visionaries since day one.When Ulta Beauty was founded in 1990,prestige,mass and s
100、alon beauty products were sold through distinct channels.There was no single place that beauty lovers could go to meet all of their needs.We envisioned a new specialty re-tail concept that brought together a wide range of products,styles and price points:ofgering All Things Beauty.All in One Place.T
101、oday,our assortment continues to refmect the diversity of our guests.At our stores and at ,youll fjnd more than 25,000 products across all categories and price points,including our private label,Ulta Beauty Collection.Product stewardship Our breadth of products is made possible by more than 500 bran
102、d partnerships.We work closely with these partners to understand,not just their products,but also their businesses,so that we can curate an assortment that meets the needs of our guests and helps brand partners succeed.A copy of our Ulta Vendor Standards is provided to all suppliers.This document ou
103、tlines our expectations for ethical business conduct,worker safety,environmental protection and product standards.Our supplier relations team onboards new brands and vendors,using webinars and other tools to educate them on how to succeed with us.This level of engagement allows us to work successful
104、ly with beauty brands that have well-established supply chain infrastructures,as well as up-and-coming brands that may need extra guidance.Our products and services PRODUCTS Cosmetics Fragrance Haircare Skincare Bath and body products Salon styling tools SALON SERVICES Hair cut,color,treatment and s
105、tyling Lash applications Makeup Brow and wax services PRODUCTthe possibilities are beautiful.ffj2020 ESG REPORT All Things Beauty.All In One Place.(continued)Ulta Beauty Collection Beyond our brand partners products,were proud to ofger the Ulta Beauty Collection,our private label.This collection ofg
106、ers essential products in key categories such as cosmetics,skincare and bath.We market the collection in an engaging and approachable way to connect with our guests and help strengthen their perception of Ulta Beauty as a contemporary beauty destination and authority on all things beauty.These on-tr
107、end products appeal to guests of all ages,particularly those who may not be beauty experts but are looking for high-quality products for everyday use.We manage the full development cycle of these products in partnership with a network of approximately 60 suppliers worldwide.The process begins with p
108、roduct briefs that we develop based on our research into emerging trends and guests needs.We present a product brief to a vendor,who then develops a unique formulation based on our specifjcations for color,fragrance and performance.The Ulta Beauty Collection team then evaluates and provides feedback
109、 on products and packaging,from confjrming that mascara brushes resist clumps to ensuring that pump bottles dispense just the right amount of product.Our formulas and packaging are thoroughly tested to validate the product concept and ensure it meets safety standards.We hold our vendors to the highe
110、st of industry standards.We expect all suppliers to sign a manufacturing agreement as well as a social compliance agreement.In addition,factory visits and third-party audits are conducted to evaluate work practices as appropriate.Ulta Beauty Collection is currently a part of the Clean Ingredients an
111、d Cruelty Free pillars within the Conscious Beauty at Ulta Beauty program,with goals of being added to the Sustainable Packaging pillar by 2025(learn more about Conscious Beauty at Ulta Beauty.)helping guests shop safely in unprecedented times To create safer shopping environments in stores followin
112、g the outbreak of COVID-19,we followed government and health guidance and were recognized for our industry leadership in keeping guests safe.In addition,we allowed guests to make purchases online for in-store pickup and curbside pickup as a contactless and convenient option for guests to meet their
113、beauty needs.As a result of these and other practices,Ulta Beauty was named one of the top retailers in NAPCO Researchs new report,Retailer Readiness:COVID-19 In-Store Safety Index.We collaborated with the Retail Industry Leaders Association(RILA)to share best practices across the industry.The resul
114、ting practices are known as our Shop Safe Standards,and include:Mandatory face coverings Suspension of for associates and guests product testers Visual cues to reinforce Increased protocols for social distancing cleaning and disinfecting Added safety measures Daily wellness checks for salon services
115、 for associates Hand sanitizer throughout the store 18 19 PRODUCTthe possibilities are beautiful.ffj PRODUCT 2020 ESG REPORT A clean beauty evolution Todays consumers are more interested than ever in choosing products that will support their overall health and wellness.They are also paying attention
116、 to the connection between their personal well-being and the well-being of workers,animals,communities and the environment.And they are increasingly supporting brands whose actions align with their own values.In the beauty space,this translates As the premier destination for all things into a desire
117、 for“clean beauty,”which beauty,Ulta Beauty is stepping into can refer to products that have fewer this opportunity.We have long ofgered ingredients and are free from potentially products that incorporate clean harmful substances.While there is clear ingredients,ethical practices and consumer demand
118、 for cleaner products,environmental benefjts.Now,we are there is no broadly agreed-upon creating a holistic solution that will defjnition of what clean beauty really educate,guide and simplify this complex means.Nor has there been a good way landscape for guests as they choose the to evaluate clean
119、ingredients alongside beauty products that meet their needs other priorities,such as animal welfare and align to their personal values.or environmental sustainability.BASED ON ULTA BEAUTY CONSUMER RESEARCH:63%90%75%of those who seek out clean of Gen Zers intend to buy of customers wish it were beaut
120、y products say“safer clean beauty products easier to know which for the planet”options are over the next 12 months products are truly clean important to them 20 PRODUCTthe possibilities are beautiful.ffj PRODUCT 2020 ESG REPORT Introducing Conscious Beauty at Ulta Beauty.TM POSITIVEIMPACT CLEANINGRE
121、DIENTS CRUELTYFREE VEGAN SUSTAINABLEPACKAGING CLEAN INGREDIENTS Brands whose products exclude parabens,phthalates and other ingredients on our Made Without List,which was developed with consideration for the human and environmental health impact of ingredients.We will evolve the Made Without List ov
122、er time with input from experts and brand partners.CRUELTY FREE SUSTAINABLE PACKAGING Brands that do not conduct animal testing.Our definition will be tied to existing cruelty-free certifications,including PETA,Leaping Bunny or Choose Cruelty Free.Many of our brand partners already possess these des
123、ignations.VEGAN Product packaging is one of the most tangible and obvious aspects of Conscious Beauty at Ulta Beauty for guests.At least 50%of the packaging from certified brands must be made from recycled or biosourced materials or be recyclable or refillable.Vegan is an area of importance POSITIVE
124、 IMPACT for many consumers today.We have adopted the standard Beauty brands give back in so definition of vegan:products many ways,and we will use that are free of animal products,this pillar to highlight brands animal byproducts and whose philanthropic efforts animal derivatives.are critical to the
125、ir DNA.PRODUCTthe possibilities are beautiful.ffj 2020 ESG REPORT A clean beauty evolution(continued)How we bring Conscious Beauty at Ulta Beauty to life Certification Brands are certifjed to the Conscious Beauty at Ulta Beauty pillars through an online portal powered by ClearForMe,our strategic par
126、tner.ClearForMe is a leader in the clean beauty space that manages the most comprehensive ingredient database on the market,and will both onboard brands into the Conscious Beauty at Ulta Beauty program and support us in bringing ingredient transparency to life for our guests.To date,over 200 brands
127、have been certifjed in one or more pillars.Education The program launched in stores and on in October 2020,with more than 200 certifjed brands.We celebrated and began to educate guests,infmuencers and the press with virtual events and in-store endcaps made with sustainable and recyclable materials.T
128、raining for in-store associates will allow them to help guests make informed choices about clean beauty products.Partnership Strong partnerships through Conscious Beauty at Ulta Beauty will allow us to evolve the program with leading experts across the space.In tandem with the Conscious Beauty at Ul
129、ta Beauty launch,we are collaborating with clean beauty pioneer Credo to introduce the Credo Collection at Ulta Beauty.This curated collection will feature a rotation of clean beauty brands,available in select stores and online,that will allow us to continuously introduce customers to new brands.Con
130、scious Beauty Advisory Council We are also planning and expect to convene a Conscious Beauty Advisory Council made up of a diverse set of leaders at the forefront of product development,packaging sustainability,trends and insights.This forum of leading beauty brands and experts will collectively evo
131、lve Conscious Beauty at Ulta Beauty.the beauty of giving back Brands that do good deserve a special spotlight.Thats the purpose of our Positive Impact pillar,which many of our brand partners,including Kreyl Essence,embody perfectly.The Kreyl Essence team began working with Haitian farmers and cooper
132、atives in 2014 to plant 100,000 castor trees,which help reduce deforestation,soil erosion and greenhouse gases.Kreyl Essence has a goal of supporting 30,000 families in the next fjve years and cultivating over 1,000 hectares of land.21 PRODUCTthe possibilities are beautiful.ffj 2020 ESG REPORT Our s
133、ustainable packaging commitment Sending less to the landfjll means good things for the planet.According to Zero Waste Week,the global cosmetics industry produces 120 billion units of packaging annually.Much of that packaging is plastic,and the majority of it is not recycled.Thats why Sustainable Pac
134、kaging is a key pillar of Conscious Beauty at Ulta Beauty.To qualify for our Sustainable Packaging pillar,at least 50%of a brands product packaging must be made from recycled or biosourced materials or be recyclable or refjllable.To date,more than 90 brands have already qualifjed.These leaders will
135、help us meet our goal of 50%of owned and non-owned brand packaging being made from recycled or biosourced materials,recyclable or refjllable by 2025.This goal aligns with targets being set by other brands and retailers,and has the potential to make a major impact on our industrys waste challenge.Sev
136、eral key partnerships and memberships will allow us to amplify our Sustainable Packaging work:Loop Loop,a reusable packaging pioneer owned by TerraCycle,eliminates waste by delivering consumer products in durable,reusable containers rather than single-use disposables.In early 2021,we will give guest
137、s the opportunity to order their favorite products for home delivery in Loops waste-free containers.How2Recycle Standardized labels on Ulta Beauty Collection products and select Ulta Beauty print materials will educate guests on how best to recycle.How2Recycles clear labels take the guesswork out of
138、 recycling,and allow us to track and measure recyclability across our portfolio.Sustainable Packaging Coalition(SPC)We support the SPCs mission of making actionable improvements to packaging systems.Through our membership,we will have the opportunity to learn from fellow retailers and other leaders
139、in the sustainable packaging space.Ulta Beautys Sustainable Packaging Goal 50%of packaging sold at Ulta Beauty will be recyclable,refillable,or made from recycled or bio-sourced materials by 2025 Including both Ulta Beauty Collection and other brands sold HOW LOOP ORDERING WORKS Guest shops via an U
140、lta Beauty x Guest is shipped a Loop microsite reusable container Cleaned container is refjlled to be distributed again After use,empty container is shipped to Loop for cleaning 22 the possibilities are beautiful.ffj community We improve the lives of women and families in our communities.Life-changi
141、ng research.Support for 25 researchers affjliated with the Breast Cancer Research Foundation Surpassing our goals.$1.2 million raised for Save the Children in just two weeks in 2020 Caring for people.Helping 750 associates dealing with COVID-19-related hardship through our Associate Relief Program 2
142、3 24 COMMUNITYthe possibilities are beautiful.ffj 2020 ESG REPORT The power to improve lives We strive to make a positive difgerence in the communities where we live and work.Thats why,in 2016,we created the Ulta Beauty Charitable Foundation(UBCF)to enhance the well-being and education of women and
143、families.Women make up the majority of our guests and our associates,and our donations help women across the country live to their fullest potential.Our philanthropic efgorts began in 2009,when we began our partnership with the Breast Cancer Research Foundation.Since then,we have broadened our focus
144、 to support other organizations that help women and families thrive.We have since added two more national partners,Save the Children and Dress for Success Worldwide,who we support each year with monetary and in-kind donations,board leadership and volunteer service.UBCF has its own board made up of U
145、lta Beauty executives who help set policy and direction for the Foundation.MEET OUR NATIONAL PARTNERS WHAT THEY DO PARTNER SINCE 2009 Works to prevent and cure breast cancer by supporting clinical and translational research at medical institutions across the world.PARTNER SINCE 2016 Works to give vu
146、lnerable children in the U.S.and around the world a healthy start in life and the opportunity to learn.PARTNER SINCE 2017 Empowers women to achieve economic independence by providing a network of support,professional attire and the tools to help them thrive in work and in life.HOW WE HELP Our donati
147、ons fund the work of a diverse group of researchers.This support covers the entire spectrum of breast cancer researchfrom understanding metastatic disease to identifying new targets and treatments.We implement a program once a year at the in-store point of sale.Associates also wore red in 2020 to ra
148、ise awareness with guests,and associates had the opportu-nity to write letters to children in vulnerable communities.UBCF provides Dress for Success Worldwide with financial support,products and associate volunteer time.We adjusted to provide services virtually in 2020.OUR IMPACT$37 million+raised s
149、ince 2009$5.5 million raised in 2019,supporting 110,000 research hours for 25 researchers$2.3 million raised since 2016 for education and emergency response programs$1.2 million raised in two weeks in 2020,impacting 750,000 kids$500,000 donated since 2017 22,000+women impacted in 35 U.S.cities 25 CO
150、MMUNITYthe possibilities are beautiful.ffj cancer.This work earned him the 2019 Nobel Prize in Physiology or Medicine.There are so many angles from which were helping researchers get closer to ending this disease.Ulta Beautys support is helping the research community with grants in a range of areas:
151、14%7%Tumor Biology 38%Metastasis 14%Treatment 38%Heredity&Ethnicity 7%Lifestyle&Prevention 3%38%2020 ESG REPORT The power to improve lives(continued)Wherever possible,we engage associates and guests in programs for giving back.During a typical year,associates will donate their time and talents to,fo
152、r example,create hair and makeup styles for women looking to fjnd employment or undergoing treatment for breast cancer,organize donation drives or participate in fundraising races.Meanwhile,guests can make contributions to our national partners at the register or online,and participate in Cut for a
153、Cause,where the cost of a service is donated to the Breast Cancer Research Foundation.Due to COVID-19,many of these in-person events have been temporarily suspended,and,as a result,we have shifted to focus on matching gifts for associates and reaching guests and our nonprofjt partners clients online
154、.In late 2020,we organized Beauty on the Move,a virtual fjtness event benefjting BCRF and open to all associates.Associates pledged to get moving by running,walking,swimming or biking,and raised funds through donations from family and friends.More than 450 associates took part in the event and colle
155、ctively raised nearly$110,000 for BCRF.funding research that matters While we review our BCRF funding portfolio annually,we try to fund projects and investigators whom we can support in growing their research programs over time.One of our grantees is Dr.William Kaelin,who works to rapidly apply know
156、ledge gained from studying other cancers to the treatment of breast 38%In 2019,we featured Steph Aiello,a makeup artist,influencer and wheelchair user,in one of our advertisements.The ad caught the eye of young Maren Anderson,whose mother,Carolyn,captured this photo and posted it on Facebook along w
157、ith this caption:“Well Ulta,you absolutely stopped my girl in her tracks this evening.It was mesmerizing to watch her stop,turn and gaze at this poster.”3%26 COMMUNITYthe possibilities are beautiful.ffj 2020 ESG REPORT Hometown giving Ulta Beautys corporate headquarters are located just outside the
158、city of Chicago,and supporting organizations that support the area is one of our priorities.Were also building partnerships with nonprofjts that empower underserved individuals in Chicago and beyond.For the past few years,we have developed relationships with the Chicago Area Urban League,which works
159、 to achieve equity for Black families and communities through social and economic empowerment;and Skills for Chicagolands Future,which helps unemployed job-seekers re-enter the workforce.Our support takes the form of donations,board service,volunteer time and even hands-on training on topics like in
160、terview skills.We increased our support for both of these organizations in 2020.We have hired more than 170 Chicagoans since we formed our partnership with Skills for Chicagolands Future,and the organization named us the 2020 Champion for the Unemployed for our efgorts to hire the underserved and em
161、power even more individuals to use their talents and skills to build a better future.Other Chicago-based organizations with which Ulta Beauty supports through cash,products,volunteerism and/or board leadership include:Communities in Schools of Chicago After School Matters Big Brothers Big Sisters of
162、 Metropolitan Chicago Metropolitan Family Services Youth Guidance Start Early(formerly known as Ounce of Prevention)Step Up Were also proud to partner with organizations that are helping women and girls fjnd the beauty within.Project Glimmer helps young women,particularly women of color,grow persona
163、l confjdence and build their professional networks.And GLAM4GOOD is on a mission to create“social change through style,”providing makeovers and gifts to everyday heroes and people in need.Over the past year,we have supported both of these organizations with in-kind donations of product.Standing up f
164、or justice Systemic racism,unfortunately,affects every community we serve.Ulta Beauty has responded in meaningful ways to growing calls to address racial inequities in the U.S.,including donating nearly$150,000 to organizations focused on racial justice and equality.Read more about how were champion
165、ing diversity inside and outside our company.27 COMMUNITYthe possibilities are beautiful.ffj 2020 ESG REPORT Comfort in an uncertain time With the ongoing physical,social and economic toll of COVID-19,many of us have needed a little extra care.Ulta Beauty has given back where we can throughout this
166、challenging time.Our support began early in the pandemic with products for front-line workers.We donated 450,000 medical gloves,as well as products like moisturizers,sanitizers and balms needed by health care professionals putting in long,diffjcult hours,whose skin often got chafed from personal pro
167、tective equipment.In total,we donated$1.2 million worth of product to 25 organizations.To further show our appreciation for health care heroes tireless efgorts,we ofgered a half price haircut and style for health care workers with ID during the fjrst month that their local Ulta Beauty store reopened
168、.Connecting COVID-19 relief with support for our national partners,we began selling a branded face mask in stores and online to raise funds for Dress for Success Worldwide toward their pandemic response efgorts.Given the unique challenges presented by COVID-19,we have given all of our community part
169、ners greater fmexibility to spend planned fjnancial support from Ulta Beauty as they see fjt.We also reimagined the way we care for associates.Since 2017,the Associate Relief Fund has provided monetary grants to associates facing personal hardship.We expanded the criteria for receiving funding to in
170、clude those in need of extra assistance as a result of COVID-19.Thanks to the generosity of our senior management team,Board of Directors and associates across the company,we raised$750,000 for the fund,allowing us to support 750 associates.the possibilities are beautiful.ffj environment We want to
171、maintain the beauty of our environment and minimize our impact on the world around us.Industry leadership.#16 among the U.S.EPAs top Retail Green Power Partners Doing more with less.An estimated 486 tons of plastic saved,thanks to new,smaller shopping bags Getting better all the time.Comparable stor
172、e electricity consumption reduced by over 5 million kWh in the last four years 28 environmentENVIRONMENTthe possibilities are beautiful.ffj 2020 ESG REPORT How we manage our footprint Ulta Beauty strives to operate in an environmentally responsible manner.We have been implementing sustainability ini
173、tiatives in our stores,distribution centers and corporate offjces for years.We have a dedicated Corporate Energy&Sustainability Team that focuses on managing our energy use and conserving resources across millions of square feet of real estate.The average Ulta Beauty store is approximately 10,000 sq
174、uare feet,with roughly 950 square feet devoted to full-service salon space.Like many companies,we face the challenge of minimizing our environmental footprint as our business grows.As we open new stores,increase foot traffjc and expand salon services,we incorporate effjcient technology and apply bes
175、t practices for continuous improvement.INSIDE AN ULTA BEAUTY STORE Some sustainability challenges we face are uniquely tied to our business modela comprehensive beauty destination with salon stations in close proximity to shopping areas.Here are a few of the factors we consider as we manage our stor
176、es footprint:FRESH INDOOR AIR Our salons make use of a range of products,including hairsprays,dyes and more.We run exhaust fans continuously during business hours to ensure safe management of any volatile organic compounds(VOCs)that could enter the air.GLAM-WORTHY LIGHTING To ensure products look th
177、eir best,we use more lighting per square foot than most retailers.Over the past several years,weve undertaken a gradual transition to highly efficient LED lighting.TEMPERATURE MANAGEMENT We use state-of-the-art HVAC systems to maintain a comfortable temperature for guests throughout the yeartaking i
178、nto account changing weather,open-concept store designs,and guests who may have wet hair or have removed layers for salon treatments.MANAGING WATER USE Water is an essential part of many salon services.We are committed to using efficient practices in our salons where feasible.29 30 ENVIRONMENTthe po
179、ssibilities are beautiful.ffj 2020 ESG REPORT Minimizing our impact on the world Energy&emissions Our retail stores are the focus of our energy reduction efgorts.Up to 99%of stores make use of an energy management system(EMS),which helps us actively conserve energy while saving on annual operating c
180、osts.The EMS precisely controls temperature and ensures minimal lighting is in use outside of retail hours.The system also detects malfunctioning equipment before it impacts the store environment and wastes energy.An EMS allows Ulta Beauty stores to participate in automated demand response programs
181、by shifting or reducing electricity usage during peak periods,helping to stabilize the electric grid.We also utilize peak load management,or demand-limiting,strategies to reduce peak demand and save on utility bills.Since 2018,Ulta Beauty has earned recognition as a Green Lease Leader,a voluntary pr
182、ogram led by the Institute for Market Transformation and the U.S.Department of Energy Better Buildings Alliance that recognizes landlords and tenants for following practices that promote high-performance,healthy buildings.We earned Gold status in 2020(up from Silver in 2018),making us the fjrst smal
183、l-box retail tenant to earn this designation.Our green lease option tracks energy and water usage,requests whole-building Energy Star scores,implements energy management best practices and accepts a cost recovery clause for energy effjciency upgrades.5 million*kWh of electricity usage reduced since
184、2016 Equivalent to avoiding 3,600 metric tons*of GHG emissions*This data has not been assured.31 ENVIRONMENTthe possibilities are beautiful.ffj 2020 ESG REPORT Energy&emissions(continued)Bright solutions Lighting is an important part of the Ulta Beauty experience.We use lights to showcase our produc
185、ts and to enable our salon stylists to provide the best possible service to guests.Since 2015,we have used LED lighting in new-store construction and remodels to showcase All Things Beauty for our guests.LEDs use 54%less energy than the fjxtures they replaced.We also use 100%LED lighting at our corp
186、orate headquarters in Bolingbrook,Illinois.Balancing comfort and efficiency High-effjciency HVAC systems are critical to providing a consistent environment to accommodate the range of shopping and experiences that typically happen in-store.All new stores are equipped with HVAC units that exceed indu
187、stry effjciency standards,and we identify opportunities for early retirement of aging and ineffjcient equipment at existing stores on an annual basis.We were recognized with the 2017 Advanced RTU Campaign Award by the U.S.Department of Energy for having the highest percentage of our portfolio upgrad
188、ed with high-effjciency RTU installations in a four-year period.Supporting clean energy Ulta Beauty is a proud user of renewable energy,purchasing more than 22,000 megawatt-hours of wind energy through renewable energy credits in 2019.This represented 7%of our total company annual electricity usage,
189、more than double our purchases in 2018.These efgorts have earned us recognition as a Green Power Partner by the U.S.Environmental Protection Agency(EPA).The Green Power Partnership is a voluntary program that encourages organizations to use green power as a way to reduce the environmental impacts as
190、sociated with conventional electricity use.We ranked#16 among the EPAs Top 30 Retail Partners in 2020,three spots up from our 2019 ranking.Ulta Beauty continues to explore additional renewable energy opportunities to strengthen our overall portfolio.Beauty on the move Reducing the overall energy and
191、 emissions impact of our business goes beyond what happens in our stores.We are beginning to explore ways to decrease the impact of transporting products among our distribution centers,fast fulfjllment centers and retail stores.Solutions could include consolidating deliveries into fewer shipments an
192、d sourcing our transportation needs from sustainable carriers.ENERGY CONSUMPTION FY16-FY19 Comp Store*Net kWh Reduction in Millions FY19 ENERGY CONSUMPTION GRID VS.RENEWABLE As of October 31,2020 3.11.72.8fiflffffi-fiflff4-ff-93%7%Grid 93%Renewable 7%0.9 fiffffi-FY16 FY19 Total:5,176,181 FY18 ENERGY
193、 CONSUMPTION GRID VS.RENEWABLE FY18 SCOPE 1,2 AND 3(LIMITED)EMISSIONS*tCO2e 91.6%3.7%4.7%Direct Emissions(Scope 1):7,385.9 97%3%Grid 97%Renewable 3%Indirect Emissions(Scope 2):143,618.8 Indirect Other Emissions(Scope 3):5,809.2*Electricity consumption in comparable stores.This compares annual electr
194、icity consumption against the same stores prior performance(i.e.,increased consumption from additional store openings is removed from this comparison).*For 2018,we completed our fjrst emissions report covering Scope 1,2,and limited Scope 3 categories.This data is not assured.2019 emissions reporting
195、 is not yet complete at this time but will expand to all relevant Scope 3 categories.ENVIRONMENTthe possibilities are beautiful.ffj 2020 ESG REPORT Maintaining the beauty of our environment Water&waste We are continually improving and looking for new ways to reduce our impact as our business grows.T
196、his includes recognizing our responsibility to conserve water and minimize waste where possible.Making water go further allows them to recycle certain types of While retailing is generally not a water-plastic.We estimate that about 40%intensive business,our demand for water of our waste is diverted
197、for recycling,has increased in recent years as our and in 2018,our stores and distribution salon services have grown.We continue centers recycled more than 13,200 tons to seek out ways to manage our stores of cardboard and plastic shrink wrap.footprint,such as by installing effjcient A unique waste
198、stream we must manage motion-activated toilets and bathroom is beauty products that,for a variety of sinks.Ulta Beauty also engages a vendor that proactively identifjes potential leaks or malfunctioning equipment by comparing water consumption year over year,enabling us to identify issues and make r
199、epairs more quickly.Sending less to landfill All Ulta Beauty stores have the ability to dispose general waste and recycle cardboard.While plastic recycling capabilities vary across the country,110 stores are currently participating in a single-stream recycling pilot that reasons,cannot be sold and m
200、ust be disposed.Certain products are considered hazardous waste,due to the possibility of chemicals mixing and potentially creating a harmful substance.Ulta Beauty complies with all local,state and federal environmental laws for the responsible management of these materials.Items that are regulated
201、as hazardous waste are not sent to a landfjll.In 2019,stores and distribution centers diverted 1,649,466 pounds of hazardous waste from landfjlls.Weve decreased our demand for materialsand by extension,the waste we generateby reducing the size of our plastic shopping bags,leading to an estimated avo
202、idance of 486 tons of plastic across our system.As of early 2020,76 of our stores use only paper bags due to local regulations.Given the focus on Sustainable Packaging as part of the Conscious Beauty at Ulta Beauty program,we continue to evaluate other environmentally friendly bag options,such as a
203、reusable bag.Other future improvements may include transitioning to more sustainable and recyclable packaging for e-commerce orders.TONS OF WASTE DIVERTED FROM LANDFILL Thousands 17.714.411.6 2018 2020 YTD The Ulta Beauty Green Group Our associates are passionate about much more than beauty.The Ulta
204、 Beauty Green Group is an opportunity for corporate associate volunteers to connect and help us all be better environmental stewards across our stores,distribution centers and the corporate offjce.Initiatives the group has undertaken include replacing disposable cofgee cups with reusable mugs in off
205、jces,hosting electronics recycling drives,encouraging paperless work practices,improving recycling systems and sharing monthly tips with fellow associates about how to live more sustainably.32 ffSASBfi INDEX2020 ESG REPORTthe possibilities are beautiful.ffj Below is Ulta Beautys response to the SASB
206、 Index,an industry-specifjc reporting framework that allows investors to more easily compare ESG performance across industry peers.Ulta Beauty reports under the Multiline and Specialty Retailers&Distributors industry,Consumer Goods sector.Responses in the far-right column of this table indicate wher
207、e you can fjnd more information about each of these topics.(1)Total energy consumed,(2)percentage grid electricity,(3)percentage renewable Quantitative Gigajoules(GJ),Percentage(%)CG-MR-130a.1(1)Environment/Minimizing our impact on the world/Energy Consumption FY16-FY19(2)93%(3)7%Description of appr
208、oach to identifying and addressing data security risks Discussion and analysis n/a CG-MR-230a.1 Introduction/Data stewardship(1)Number of data breaches,(2)percentage involving personally identifiable information(PII),(3)number of customers affected Quantitative Number,Percentage(%)CG-MR-230a.2 Ulta
209、Beauty experienced no data breaches in the past year and has not had a data breach since the companys founding in 1990.ENERGY MANAGEMENT IN RETAIL&DISTRIBUTION DATA SECURITY ACCOUNTING METRICS METRIC CATEGORY UNIT OF MEASURE CODE RESPONSE/COMMENT 33 Sustainability Accounting Standards Board(SASB)Ind
210、ex ffSASBfi INDEX2020 ESG REPORTthe possibilities are beautiful.ffj ACCOUNTING METRICS METRIC CATEGORY UNIT OF MEASURE CODE RESPONSE/COMMENT LABOR PRACTICES(1)Average hourly wage and Quantitative(2)percentage of in-store employees earning minimum wage,by region(1)Voluntary and(2)involuntary turnover
211、 rate for in-store Quantitative employees Total amount of monetary losses as a result of legal Quantitative proceedings associated with labor law violations Reporting currency,Percentage(%)Rate Reporting currency CG-MR-310a.1 CG-MR-310a.2 CG-MR-310a.3(1)The median hourly wage of in-store,full-time r
212、egular employees(excluding seasonal,temporary and commissioned employees as determined by employment class)as of December 2,2020 was$18.42.(2)Percentage of in-store employees earning minimum wage,by region Total%Above Min.Total%at Min.Region Wage within Region Wage within Region California 85.0 15.0
213、 Central East 91.5 8.5 Central West 92.2 7.8 Mid East 96.8 3.2 MidAtlantic 96.4 3.6 Northeast 80.4 19.6 Pacifjc Northwest 84.8 15.2 South 94.7 5.3 Southwest 94.2 5.8 Full-time regular employees(excluding seasonal,temporary and commissioned employees as determined by employment class)as of December 2
214、,2020 Annualized TurnoverAll Types:29.2%Annualized TurnoverVoluntary:25.0%No material monetary losses have resulted from legal proceedings associated with labor law violations in 2019 or 2020.34 Sustainability AccountingStandards Board(SASB)Index ffSASBfi INDEX2020 ESG REPORTthe possibilities are be
215、autiful.ffj (1)Management Directors:82%White 18%Black 55%Women 45%Men Executive Team:50%Women 50%Men Ulta Leadership:64%Women 36%Men 18%People of Color(2)All other employees Ulta Associates:92%Women 8%Men WORKFORCE DIVERSITY&INCLUSION Percentage of gender and racial/ethnic group representation for(1
216、)management and(2)all other employees Quantitative Percentage(%)CG-MR-330a.1 Total amount of monetary losses as a result of legal proceedings associated with employment discrimination Quantitative Reporting currency CG-MR-330a.2 No material monetary losses have resulted from legal proceedings associ
217、ated with employment discrimination in 2019 or 2020.ACCOUNTING METRICS METRIC CATEGORY UNIT OF MEASURE CODE RESPONSE/COMMENT 35 Sustainability AccountingStandards Board(SASB)Index ffSASBfi INDEX2020 ESG REPORTthe possibilities are beautiful.ffj Revenue from products third-party certified to environm
218、ental and/or social sustainability standards Quantitative Reporting currency CG-MR-410a.1 Data unavailable for 2019 and 2020.We are evaluating potential disclosure on this topic in the future.Discussion of processes to assess and manage risks and/or hazards associated with chemicals in products Disc
219、ussion and analysis n/a CG-MR-410a.2 We train associates who handle hazardous materials so they can do so safely and in compliance with applicable laws,rules and regulations.Discussion of strategies to reduce the environmental impact of packaging Discussion and Analysis n/a CG-MR-410a.3 Products/Int
220、roducing Conscious Beauty at Ulta Beauty,Our sustainable packaging commitment ACTIVITY METRIC PRODUCT SOURCING,PACKAGING&MARKETING ACCOUNTING METRICS METRIC CATEGORY UNIT OF MEASURE CODE RESPONSE/COMMENT Number of:(1)retail locations and(2)distribution centers Total area of:(1)retail space and(2)dis
221、tribution centers Quantitative Quantitative Number Square meters(m2)CG-MR-000.A CG-MR-000.B(1)1,262 stores(2)6 distribution centers(1)13,193,076 square feet(2)3,000,000 square feet 36 Sustainability AccountingStandards Board(SASB)Index 2020 ESG REPORTthe possibilities are beautiful.ffj APPENDIX Appe
222、ndix THE PERCENTAGE OF EACH GENDER CATEGORY FOR U.S.OPERATIONS U.S.Operations,Regular Employees by Gender(less seasonal and temporary employees)as of Dec 2,2020 GENDER COUNT PERCENTGE Female 28,635 94.0%Male 1,823 6.0%Unknown 2 0.0%Grand Total 30,460 100.0%STANDARD EEO-1 RACIAL AND ETHNIC GROUP CATE
223、GORIES FOR U.S.OPERATIONS FOR MANAGEMENT U.S.Operations,Regular Managerial Employees by Ethnicity&Gender(less seasonal and temporary employees)as of Dec 2,2020 37 ETHNICITY FEMALE MALE UNKNOWN TOTAL Count Percentage Count Percentage Count Percentage Count Percentage American Indian/Alaskan Native 44
224、 0.7%1 0.02%45 0.7%Asian 127 1.9%12 0.2%139 2.1%458 6.9%32 0.5%490 7.4%Black or African American Hispanic or Latino 1,305 19.7%117 1.8%1,422 21.5%Native Hawaiian or Other Pacific Island 23 0.3%3 0.05%26 0.4%Two or More Races 218 3.3%16 0.2%234 3.5%White 3,960 59.8%268 4.0%4,228 63.9%Unknown 2 0.03%2
225、 0.03%4 0.1%I do not wish to provide 26 0.4%5 0.1%31 0.5%Grand Total 6,163 93.1%454 6.9%2 0.03%6,619 100.0%the possibilities are beautiful.ffj2020 ESG REPORTthe possibilities are beautiful.ffj APPENDIX Appendix STANDARD EEO-1 RACIAL AND ETHNIC GROUP CATEGORIES FOR U.S.OPERATIONS FOR NON-MANAGEMENT U
226、.S.Operations,Regular Non-Managerial Employees by Ethnicity&Gender(less seasonal and temporary employees)as of Dec 2,2020 ETHNICITY FEMALE MALE TOTAL Count Percentage Count Percentage Count Percentage American Indian/Alaskan Native 177 0.7%11 0.05%188 0.8%Asian 685 2.9%45 0.2%730 3.1%2,316 9.7%122 0
227、.5%2,438 10.2%Black or African American Hispanic or Latino 6,238 26.2%469 2.0%6,707 28.1%Native Hawaiian or Other Pacific Island 84 0.4%11 0.05%95 0.4%Two or More Races 952 4.0%62 0.3%1,014 4.3%White 11,928 50.0%645 2.7%12,573 52.7%Unknown 11 0.05%11 0.05%I do not wish to provide 81 0.3%4 0.02%85 0.4%Grand Total 22,472 94.3%1,369 5.7%23,841 100.0%38 Thank you for your interest in Ulta Beauty.If you have any questions about this report,please contact our General Counsel,Chief Compliance Offjcer&Corporate Secretary,Jodi Caro,at