GLOSSARY OF ENVIRONMENTAL SUSTINABILITY TERMS Fact Sheet benefit sharing A business partnership built upon the fair and equitable sharing of benefits. Aveda sources tamanu oil for its skincare and hair care products from the Industrial Botanicals Corporation on Vanuatu, in the Pacific islands. The partnership is an example of benefit sharing: five percent of all Industrial Botanicals’ sales (cost of goods) is placed in the Vanuatu Convention on Biological Diversity Trust Fund (VCBDTF) to support local schools. biological nutrients Renewable resources that can either recycled or composted at the end of their lifetime—returning nutrients to the soil. For example, plant material (leaves, wood, paper) are biodegradable; petroleum is not. Aveda designs products and packaging that are as biodegradable as possible. From non-petroleum based ingredients in our formulas to packaging materials that can be recycled or composted, Aveda designs with the end of product life in mind. biodiversity Short for biological diversity; the United Nations Environment Program defines biodiversity as “the variety of life in all its forms, levels and combinations.” Attention to biodiversity generally refers to the increasing loss of biodiversity when natural habitats threatened by construction, pollution, or other human activity. Aveda is dedicated to helping preserve biodiversity. For example, the Company’s Earth Month 2000 initiatives focused on “Habitat and Biodiversity” and raised funds and collected signatures in a petition to protect biodiversity. biodynamic A holistic farming system that treats all aspects of a farm—mineral, plant, animal, and human—as part of a self-contained ecosystem. Going beyond organics, biodynamic farming considers the impact that plant growth has on the earth and universe. Aveda’s Pure Essence line is made with biodynamic essential oils. In the Company’s search for the highest quality essential oils, Aveda has found that biodynamic raw materials are rare and difficult to find. Aveda has limited the use of biodynamic essential oils to The Pure Essences line due to this extremely limited supply—and is sourcing globally in an effort to increase this capacity. carbon dioxide A heavy, colorless, odorless gas that is a normal part of ambient air. CO2 is a (CO2) bi-product of fossil fuel combustion and although it does not directly impair human health, it is a greenhouse gas that significantly contributes to global warming. The U.S. releases approximately 40,000 pounds of CO2 per person each year. Glossary of Environmental Sustainability Terms Over the past decade, Aveda has initiated a number of energy conservation projects to help reduce CO2 emissions. As of July 1st, 2006, one hundred percent of the electrical usage at Aveda’s distribution center and primary manufacturing facility in Blaine, MN is offset by its wind energy purchase. By using 100% certified wind energy, Aveda helps keep 7.2 million pounds of carbon dioxide, the primary contributor to global warming, out of the atmosphere each year. carbon offset A service that reduces the net greenhouse gas ("carbon") emissions of a party by reducing the greenhouse gas emissions—or increasing the carbon dioxide absorption—of another party. The goal of carbon offsets is to combat global warming. One hundred percent of the electrical usage at Aveda’s distribution center and primary manufacturing facility in Blaine, Minn. is now offset by its wind energy purchase. certified organic A food or cosmetic ingredient that has been grown according to strict uniform standards which have been verified by a third party, independent state or private organization. For raw materials, certification includes inspections of farm fields and processing facilities, detailed record keeping and periodic testing of soil and water to ensure that growers and handlers are meeting the set standards. Aveda defines “certified organic” in accordance with US and international organic certification standards. Since 1996, the Aveda Production Facility in Minnesota has been certified according to organic food certification standards (by Quality Assurance International, www.qai-inc.com). CERES The Coalition for Environmentally Responsible Economies, a U.S. coalition of environmental, investor, and advocacy groups working together for a sustainable future. Members are a community of forward-looking companies that have committed to continuous environmental improvement by endorsing the CERES Principles, a ten-point code of environmental conduct. Aveda is the first privately held company to endorse the CERES Principles (then called the Valdez Principles). www.ceres.org Corporate Social CSR is a corporate commitment to improving quality of life alongside Responsibility (CSR) economic development. From creating a healthy work environment for employees to caring for families, the local community and society at large, CSR is based upon capacity building for sustainable livelihoods. CSR ensures the respect of cultural differences, ethical behavior and a connection to society that “gives back”. (Source: World Business Council for Sustainable Development). 2 Glossary of Environmental Sustainability Terms closing the loop Creating a strong market for recycled products is key to completing the (of recycling) recycling process or “closing the loop.” Consumers close the loop when they purchase products made from recycled materials. Businesses and governments can promote buying recycled products through their own purchasing programs. Manufacturers can participate by using recycled materials in their products. cradle-to-cradle A manufacturing process in which the waste of one system becomes the raw materials of another. Aveda has worked with consultant and environmental watchdog, Michael Braungart, author of the book “Cradle to Cradle” to create a seamless system for the company. Braungart is a chemist and founder of the Environmental Protection Encouragement Agency (EPEA) in Hamburg. cradle-to-grave An assessment considering environmental impact at each stage of a product’s life cycle. Assessment begins when natural resources are extracted from the ground, continuing through each subsequent stage of manufacturing, transportation, produce use, and disposal. decompose See biodegradable. endangered species Species that are in imminent danger of extinction, due typically to loss of habitat, loss of food sources, pollution, increase in predators or dramatic shifts in climate. Studies show that 50 to 100 species become extinct every day, and the extinction of a single plant species may result in the disappearance of 30 other plant and animal species. Aveda’s 2005-2006 Earth Month campaigns focused on Endangered Plant Species, raising $2.5 million dollars to help protect plants from extinction. Forest Stewardship An independent, non-profit, non-governmental organization that supports Council (FSC) environmentally appropriate, socially beneficial and economically viable management of the world’s forests. The FSC evaluates and accredits certifiers, encouraging the development of national and regional forest management standards. The organization also provides public education and information about independent, third-party certification as a tool for ensuring that the world's forests are protected for future generations. The FSC was founded in 1993 by environmental and conservation groups, the timber industry, the forestry profession, indigenous peoples' organizations, community forestry groups and forest product certification organizations from 25 countries. www.fscus.org Aveda sources FSC certified pallets for international shipments and is working to source the pallets for all of its shipping needs. Aveda also sources FSC certified wood for building materials and makeup pencils. 3 Glossary of Environmental Sustainability Terms GE/GMOs Genetically engineered or genetically modified organisms that have had genes from other species transferred into their genetic material. The use of GMOs is prohibited in organic certification. high-density A type of plastic commonly used in the USA to make milk jugs and other rigid polyethylene plastic bottles. HDPE is the most frequently recycled plastic. (HDPE) Aveda uses HDPE for most shampoo and conditioner bottles, much of which is post-consumer material that can also be recycled after use. indigenous lands The total environment of land, air, water, sea, sea-ice, flora and fauna, and and territories other resources which indigenous peoples have traditionally owned or occupied. (Source: Draft Declaration of the Rights of Indigenous Peoples: Part IV). indigenous peoples The existing descendants of peoples who originally inhabited the territory of a country that has been threatened by conquest, settlement, or other means. Indigenous peoples’ livelihood and culture have been overcome by a group of different culture or ethnic origin, who attempt to reduce them to a nondominant or colonial situation. As a result, indigenous peoples often live more in conformity with other social, economic and cultural customs and traditions than their own. Source: UN Working Group on Indigenous Peoples natural The term “natural” can be confusing; anything derived from natural sources is considered “natural”—even crude oil, a non-renewable resource. Aveda uses the term “plant based” to avoid confusion. Aveda products are made with sustainable, plant-derived raw materials. non-governmental An organization mobilized to achieve a certain goal within a given system–– organization social, environmental, political, and economic. Non-governmental (NGO) organizations are international, national, regional or local in scope. They are similar in function to for-profit businesses except they do not have owners and do not declare profits. Revenue available after normal operating expenses is channeled to programs. Most NGO’s are also independent of government. Aveda partners with NGO’s around the world committed to challenges such as: biodiversity preservation, the protection of indigenous cultures and the development of environmental leaders. non-renewable Natural resources that can be used up completely or to such a degree that it resources is economically impractical to obtain more. Examples include: coal, crude oil, and metal ores. organic A substance derived naturally from a living organism. The term organic, used alone, does not guarantee that it is certified organic. 4 Glossary of Environmental Sustainability Terms petrochemicals Chemicals obtained by refining (i.e., distilling) crude oil. Petrochemicals are used as raw materials in the manufacture of most industrial chemicals, fertilizers, pesticides, plastics, synthetic fibers, paints, medicines, and many other products. polyethylene A type of plastic commonly used in plastic soda and water bottles. terephthalate (PET or PETE) Aveda uses 100% PCR PET in its makeup clamshells and certain other packaging. post-consumer recycled Material that has served its intended purpose and been placed into the material (PCR) recycling stream to be reused. For example, a used shampoo bottle that is recycled and remanufactured into a new bottle. Aveda has increased the amount of PCR content in its shampoo bottles from 20% in 1990 to a minimum of 80% in 2007. Aveda sells approximately 15 million shampoo bottles each year; switching to PCR has reduced the company’s need for over 300 tons of virgin high density polyethylene annually. pre-consumer recycled Material that has not served its intended purpose but has been placed into the material recycling stream for reuse. Example: An overrun of a magazine that was never sold, but comes back for recycling and is remanufactured into other paper products. product life cycle The complete, life cycle of a product cycle, including: extraction of raw materials, manufacture, packaging, transportation, use and disposal. recyclable Material that can be recycled and reused in place of a raw or virgin material in the manufacturing of a product (for example, paper, plastic and used oil are recyclable materials). recycled content Product content which is made from recycled materials diverted from the waste stream. Recycled content is usually stated as a percentage by weight (and does not distinguish between pre- and post- consumer recycled material). Aveda’s makeup outer clamshell/package cartons for Lip Concentrate, Lip Glaze and Lip Liner are molded from 100% PCR newsprint—resulting in 70% less energy consumption and 73% less air pollution than if virgin paper were used. recycling The process by which materials that might otherwise be destined for disposal are instead used to manufacture new products. In basic terms, successful recycling requires four sequential steps: 1) collection of recyclable materials; 2) intermediate processing to remove contaminants and sort and compact materials for shipping; 3) manufacture of new products; and 4) purchase of products containing recycled materials by businesses and individual consumers. 5 Glossary of Environmental Sustainability Terms renewable resource A natural resource, such as wind, solar energy, geothermal energy, trees and fish, whose supply can (in theory) is never exhausted, usually because it is continually produced. Even renewable resources can be depleted if used unsustainably (e.g., over fishing, clearcutting in forests). sustainable development Defined by the Brundtland Commission as: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Aveda believes that concepts of sustainability are still evolving and that stakeholders have yet to adopt a consensus understanding of the term. sustainably harvested A plant or resource has been harvested so that the resource can regenerate itself and its habitat has not been depleted or destroyed. traceability Certified organic ingredients that can be traced directly to its source. Aveda’s “chain of custody” refers to a deep knowledge of our ingredients’ integrity from Soil to BottleSM. Sources Definitions for glossary terms were derived from the following: Business Guide to Waste Reduction and Recycling Business Guide for Reducing Solid Waste, 1993. Environment Canada: Fresh Water Glossary Environmental Protection Agency (EPA) Terms of the Environment http://www.epa.gov/OCEPAterms EPA Paper Task Force EPA WasteWise Tip Sheet, “Recycling Collection” and “Buying or Manufacturing Recycled Products” January 1994 European Environment Agency Glossary http://glossary.eea.eu.int/EEAGlossary Forest Stewardship Council (FSC) Glossary of Terms International Institute for Sustainable Development (IISD) Idea Digest: Word Watch Glossary http://www.iisd.org/didigest/glossary.htm Organic Alliance St. Paul Neighborhood Energy Consortium Resourceful Waste Management: A Guide for Minnesota Metropolitan Area Businesses and Industries 6