Coty to Partner With LanzaTech to Pioneer New Sustainable Fragrance Production

Rhea-AI Summary

Coty Inc. (NYSE: COTY) has signed a letter of intent with LanzaTech to integrate sustainable ethanol produced from captured carbon emissions into its fragrance products. This partnership aims to significantly lower the environmental impact of Coty’s fragrances by replacing traditional ethanol, sourced from agricultural materials, with carbon-captured ethanol, promoting biodiversity and reducing water usage. Coty aims to have the majority of its fragrance line using this sustainable ethanol by 2023. This initiative supports Coty's broader sustainability strategy, including a 30% reduction in absolute CO2 emissions by 2030.

Positive

• Partnership with LanzaTech to utilize sustainable ethanol, potentially enhancing brand reputation and customer loyalty.
• Significant reduction in environmental impact of fragrance products through carbon-captured ethanol.
• Supports Coty's sustainability strategy, aligning with consumer demand for environmentally responsible products.

Negative

• None.

Coty Inc. (NYSE: COTY), one of the world’s largest beauty companies and the global leader in fragrances, today announced it has signed a letter of intent to partner with LanzaTech to introduce sustainable ethanol made from captured-carbon emissions into its fragrance products.

LanzaTech, a leader in the production of next generation green and sustainable ingredients, captures industrial emissions (such as carbon monoxide and carbon dioxide produced in steel manufacturing) and processes the waste gases into a new, more sustainable source of ethanol. Coty’s scientists have worked alongside LanzaTech and production partners over the past two years to develop a high-purity sustainable ethanol that is suitable for use in fragrances. The proposed partnership means that Coty will incorporate this carbon-captured ethanol into its fragrance manufacturing process, with the goal of having the majority of its fragrance portfolio using ethanol sourced from carbon-capture by 2023.

Sue Y. Nabi, Chief Executive Officer of Coty, said:

“Sustainability is the ultimate driver of innovation and Coty is focused on creating outstanding products that are truly clean and green. Ethanol is the number one ingredient purchased for the fragrance category and over time this partnership with LanzaTech will significantly reduce the environmental impact of our products. It’s not only the right thing to do, but it makes commercial sense too – with today’s consumer rightly demanding that their favourite brands share their commitment to sustainability.”

Ethanol is a core ingredient in fragrance products, enabling the efficient dispersion of the scent. Coty fragrances contain ethanol sourced from a range of natural raw materials - including sugar cane and sugar beet, which use land, water and fertilizers. This new sustainable ethanol from carbon-capture utilizes near-zero water consumption and reduces the requirement for agricultural land which, in turn, supports biodiversity. Working with the independent sustainability consultancy Quantis, Coty has conducted a screening life cycle assessment which shows a significantly reduced overall environment impact.

Jennifer Holmgren, Chief Executive Officer of LanzaTech, said:

“Addressing our climate challenge requires collaboration across multiple sectors. We are proud to be developing this partnership with Coty to show that carbon recycling can enable sustainable production of fragrances. Single use carbon must be a thing of the past and this project exemplifies our vision of a CarbonSmart future where consumers are able to choose products made from recycled carbon.”

The proposed partnership with LanzaTech is an important step for Coty as it continues its journey to becoming a more circular business and creating a more sustainable and inclusive world. Coty’s ambitious ‘Beauty That Lasts’ strategy - which is guided by the United Nations Sustainable Development Goals (SDGs) - sets out a range of time-bound targets, including a 30% reduction in absolute CO2e emissions by 2030.

About Coty Inc.

Coty is one of the world’s largest beauty companies with an iconic portfolio of brands across fragrance, color cosmetics, and skin and body care. Coty is the global leader in fragrance and number three in color cosmetics. Coty’s products are sold in over 150 countries around the world. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment. For additional information about Coty Inc., please visit www.coty.com.

About LanzaTech

LanzaTech is turning our global carbon crisis into a feedstock opportunity with the potential to displace 30% of crude oil use today and reduce global CO2 emissions by 10%. By recycling carbon from industrial off-gases; syngas generated from any biomass resource and reformed biogas, LanzaTech can reduce emissions and make new products for a circular carbon economy. LanzaTech’s carbon recycling technology is like retrofitting a brewery onto an emission source like a steel mill, but instead of using sugars and yeast to make beer, pollution is converted by bacteria to fuels and chemicals! Imagine a day when your plane is powered by recycled GHG emissions, when your yoga pants started life as pollution from a steel mill. This future is possible using LanzaTech technology. Founded in New Zealand, LanzaTech is based in Illinois, USA and employs more than 200 people. Further information is available at www.lanzatech.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005157/en/

FAQ

What partnership has Coty signed related to sustainability in fragrances?

Coty has signed a letter of intent with LanzaTech to use sustainable ethanol made from captured carbon emissions in its fragrance products.

What is the goal of Coty's partnership with LanzaTech by 2023?

The goal is to have the majority of Coty's fragrance portfolio use ethanol sourced from carbon-capture.

How does the sustainable ethanol benefit Coty's fragrance products?

The sustainable ethanol reduces environmental impact by minimizing water use and agricultural land requirements.

What are Coty's targets for CO2 emissions reduction?

Coty aims for a 30% reduction in absolute CO2 emissions by 2030 as part of its sustainability strategy.

Who is the CEO of Coty and what did they say about sustainability?

Sue Y. Nabi, CEO of Coty, emphasized that sustainability drives innovation and is essential for meeting consumer demands.