E.l.f. Beauty is on a mission to upend the status quo and redefine the culture of beauty. “Our latest Impact Report demonstrates how we are creating a different kind of beauty company—one that is both purpose-led and results-driven,” said Tarang Amin, E.l.f. Beauty’s Chairman and Chief Executive Officer. “In 2023, we acted with purpose and took action to empower our communities and employees, further our sustainability initiatives and reduce our environmental footprint. At the same time, we delivered exceptional business results, reaching over $500 million in net sales and producing 219% total shareholder return (TSR) this past fiscal year.”
Diversity and Inclusion
E.l.f. Beauty ranked as one of only four U.S. public companies with a Board of Directors that was at least 2/3 women and 1/3 diverse—a testament to their commitment to diversity and inclusion. Their leadership team also reflects that commitment, with 68% women and 29% diversity representation.
The company has commited to donating 3% of prior year profits to drive positive impact in their communities. The report also revealed a 91% overall employee engagement rate—19 percentage points above the industry benchmark and a 2-point increase from the previous year’s survey.
Commitment to Sustainability
In 2023, E.l.f. Beauty was ranked #7 out of 75 in ESG Ratings for Personal Products companies by Sustainalytics. The brand also led the charge in clean beauty, reformulating an additional 300 SKUs to meet their stringent “e.l.f. clean” standards, surpassing FDA and EUCR regulations.
Over 75% of their products are ethically produced in Fair Trade CertifiedTM facilities and they have eliminated 2.5 million pounds of excess packaging since 2019. The brand uses Forest-Stewardship CouncilTM (FSC)-certified paper for 75% of their paper product cartons.
Finally, the company drove home their environmental commitment by achieving an impressive 94% reduction in Scope 1 and 2 greenhouse gas emissions compared to their FY 2022 baseline, successfully meeting their science-based target of a 42% reduction by 2030.
By the fiscal year 2025, the company aims to have all its paper product cartons Forest-Stewardship Council (FSC)-certified. They also plan to extend this certification to all wood brush handles. Additionally, E.l.f Beauty has its sights set on achieving 100% Roundtable for Sustainable Palm Oil Sourcing (RSPO)-certified palm oil procurement by fiscal year 2027.
E.l.f. is also focused on reducing its packaging and carbon footprint, aiming to decrease packaging intensity by 20% by fiscal year 2030. In fiscal year 2023, they successfully achieved their science-based targets for reducing Scope 1 and 2 emissions, and they plan to set similarly rigorous targets for Scope 3 emissions through the Science Based Targets initiative.
“Our commitments signal a step change in our sustainability ambitions and our intent to continue to drive positive impact in the world around us,” said Ellen Leung, E.l.f. Beauty’s Vice President of Sustainability. “By continuing to be intentional in how we live our purpose and values, we hope to inspire our employees, communities and partners to join our journey to create a more inclusive and accessible beauty industry.”
“I am proud of the e.l.f. Beauty team for the milestones we’ve achieved and look forward to continuing to share our progress as we strive to make the best of beauty accessible for all,” said Amin.