HIGHLIGHTS

BREAST CANCER AWARENESS CAMPAIGNMore than $53 million to support global research, education and medical services for breast health and early detectionLaunched in 1992 by the late Mrs. Evelyn H. Lauder, the mission of ELC's Breast Cancer Awareness (BCA) Campaign is to defeat breast cancer through education and medical research.

M·A·C AIDS FUNDMore than $340 million raised since 1994 for life-saving treatment, daily support and to stop new infectionsM·A·C AIDS Fund is the largest U.S. corporate foundation for HIV/AIDS causes, supporting prevention and treatment in high-risk communities around the world. Every cent from sales of VIVA GLAM Lipstick and Lipglass goes to the Fund. AVEDA PARTNERS WITH INGREDIENT OWNERS IN INDIA 800 villagers receive access to clean water supply year roundAVEDA partners with Nisarga, an organic herbs producer, to provide financing for development groups to install clean water supply infrastructures to remote villages in rural India.

BOBBI BROWN PRETTY POWERFUL AND GIRL RISING$200,000 donated to support Girl Rising in 2014Bobbi Brown is committed to empowering women of all ages and advocates through the Bobbi Brown Pretty Powerful Campaign for Women and Girls. Among its activities, the Campaign supports Girl Rising, a global social action initiative to educate young girls and help them break the cycle of poverty. LA MER HELPS CONSERVE OUR OCEANS$2 million donated to help protect ocean habitats since 2008Many of the key ingredients used in La Mer products come from the sea. As well as funding habitat protection, the brand partners with the National Geographic Society and its Explorer in Residence Dr. Sylvia Earle to promote ocean conservation.

MILLION$53

THOUSAND$200

MILLION$2

MILLION$340

VILLAGERS 800

At The Estée Lauder Companies, we see beauty in responsibility

because it helps us create long-term business value while better

serving our consumers and supporting our employees, business

partners and the communities we touch.

We value diversity of thought and of people, and encourage

our employees to embrace creativity, innovation and integrity in

everything they do.

Our approach to Corporate Responsibility (CR) applies across

our business and brands. Driven by leadership from the top, we

focus on product safety and sustainable innovation, responsible

sourcing, efficient operations, social impact and employee safety

and development.

To learn more about how we instill The Beauty of Responsibility

in all aspects of our business, please see our latest Corporate

Responsibility Report, available online at elcompanies.com.

CORPOR ATE RESPONSIB IL ITY 2014

Corporate Responsibility is about how we do business. How we create long-term value and continually deliver a sustainable business model. How we identify opportunities and risks in a fast-changing world and continue to innovate to meet global consumer needs. How we listen and respond to our employees and consumers, as well as our business and community partners."

WILLIAM P. LAUDER EXECUTIVE CHAIRMANTHE EST{E LAUDER COMPANIES

"

THE

OF

POSITIVE IMPACTS

Our Company is only as strong, healthy, developed and diverse as the communities where we live and work. We invite our employees, brands and consumers around the world to help create positive, lasting social impacts. Our philanthropic priorities include protecting the environment and supporting inclusion and diversity, the arts, women’s health and empowerment, education, health and human services, and emergency disaster relief.

EMPLOYEE VOLUNTEERISM

Our volunteer programs are guided by the belief that one person can make a difference. Each year, thousands of employees donate their time to support our global brand philanthropy programs and the needs of our local communities (see back cover).

BEAUTY IS . . .MANAGING FOR THE LONG-TERM

BEAUTY IS . . .CREATING EXCEPTIONAL PRODUC TS

BEAUTY IS . . .RESPEC TING OUR RESOURCES

BEAUTY IS . . .INSPIRING PEOPLE AND COMMUNITIES

RESPONSIBILITY BY THE NUMBERS

DIVERSITY IN OUR U.S. WORKFORCE

SOURCING RESPONSIBLY

We rely on nature for some of the key ingredients in our unique products. Partnering with suppliers, we source raw materials with respect for biodiversity, using only as much as we need, and with respect for local communities. We are working to increase traceability and better understand where our ingredients come from, especially in complex supply chains. Suppliers also have human rights obligations and must abide by our Supplier Code of Conduct. We use sustainability scorecards to track the business practices and environmental and social impacts of companies with whom we do business.

OPERATING EFFICIENTLY

Respecting natural resources requires us to be as efficient as possible. Our facilities around the world respond by conserving energy, curbing greenhouse gas emissions and minimizing waste. We have achieved zero waste-to-landfill at all of our wholly owned manufacturing and distribution sites and are working to improve our recycling rates. Waste that cannot be recycled is converted to energy.

Our consumers trust our products to deliver superior beauty performance, safely and sustainably. We combine creativity, innovation and science with high-quality ingredients and exacting standards to create exceptional products.

SAFETY AND QUALITY

We are uncompromising on safety and quality. Our promise to consumers is that every product we design, make and sell, anywhere in the world, is safe to use as intended. Scientists review, evaluate and test ingredients and formulas before public release, and we closely monitor consumer feedback.

SUSTAINABLE DESIGN

We strive to design and package our products responsibly. We analyze raw materials for environmental impact and pursue packaging innovations that reduce our footprint. Our packaging suppliers are creative partners in using recycled and recyclable materials, such as post-consumer recyclable (PCR) plastics, glass, metal and paper.

Conducting business with integrity contributes to our global leadership and is why our brands are so trusted. Our family values set the tone for what is expected from every employee: to act with integrity and abide by our Code of Conduct and anti-corruption policies.

Acting responsibly in everything we do requires leadership, planning, execution and excellence. Our Global Corporate Responsibility team leads our efforts to capture our employees' creativity, innovation and passion in initiatives that benefit our business, stakeholders, communities and the planet. Our Sustainability Committee, made up of leaders from across the Company, ensures that these initiatives are aligned with our corporate strategy.

Our long-term success depends on our respect for and conservation of natural and human resources. We are committed to understanding and managing our economic, environmental and social impacts throughout our entire value chain.

82%Recycling rate in FY2014

of our workforce is female

78%

35%Reduction of Scope 1 and Scope 2 greenhouse gas emissions*

of Senior Vice President positions and above are held by women

51%

of Senior Vice President positions and above are held by minorities*

15%.54Total Incident Rate among our employees in 2014, a 33% improvement in two years

* In the U.S., minority is defined as any of the following: African American,Hispanic/Latino, Asian, Pacific Islander, American Indian, or two or more races.* Per unit of revenue in FY2014 from a 2008 baseline.