Coty Reports 83% Emissions Cut and 30% Water Reduction in FY2026 Sustainability Report

Global beauty company Coty has reported an 83% reduction in Scope 1 and 2 greenhouse gas emissions and a 30% reduction in water withdrawal compared with fiscal year 2019, according to its FY2026 Sustainability Report released on 21 October 2026. The company also reduced Scope 3 emissions by 29% and virgin plastic consumption by 53%, reporting progress across climate action, resource efficiency and sustainable packaging under its Beauty That Lasts strategy.

The report follows validation of Coty's 2050 net-zero emissions target by the Science Based Targets initiative (SBTi) in April 2026. The company has committed to reducing absolute Scope 1, 2 and 3 emissions by 90% by fiscal year 2050, using FY2019 as its baseline. Coty also reported progress in sustainability disclosures and employee development, including AI training for more than 2,000 employees across 11 countries.

 

SBTi Validates Net-Zero Target as Emissions Decline

 

Coty's updated climate targets include an 82% reduction in absolute Scope 1 and 2 emissions by 2030, increased from its previous 50% target. Its Scope 3 target remains a 28% reduction by 2030. With reported reductions of 83% in Scope 1 and 2 emissions and 29% in Scope 3 emissions, the company has reached levels beyond both near-term reduction thresholds. These achievements are measured against FY2019 rather than representing reductions achieved during FY2026 alone.

The distinction between operational and value chain emissions remains important. Scope 1 and 2 cover direct operational emissions and emissions associated with purchased energy, while Scope 3 includes emissions across areas such as product manufacturing, sourcing, transportation and packaging. Coty has identified packaging, product formulation, supplier engagement and logistics as important areas of its climate strategy. Although the latest figures indicate progress against its near-term targets, maintaining those reductions as production and business activities change will remain important.

 

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Water Withdrawal Falls 30%, Exceeding 2030 Target

 

Coty reported a 30% reduction in water withdrawal compared with FY2019, exceeding its existing target of reducing withdrawal by 25% by 2030. The result marks an improvement from FY2025, when the company reported a 16% reduction against the same baseline. Water management is a significant consideration for the beauty industry, where water is used in manufacturing processes, cleaning operations and product formulations.

Coty has previously outlined measures including water recycling, equipment upgrades and improved monitoring across manufacturing and distribution facilities. Its operational sites have developed water reduction plans intended to improve efficiency and reduce resource consumption. While the 30% reduction represents progress in managing water demand, assessing broader environmental benefits also requires consideration of local water availability and the conditions in regions where the company operates.

 

Virgin Plastic Reduction Reaches 53%

 

Packaging remains another focus of Coty's environmental strategy. The company reported a 53% reduction in virgin plastic use compared with FY2019, moving closer to its goal of a 60% reduction by 2030. This follows a reported 51% reduction in FY2025. The company is seeking to reduce dependence on newly produced plastic while incorporating recycled materials and increasing the use of refillable packaging formats.

Coty's packaging approach includes reducing material consumption, improving recyclability and developing products that can be reused or refilled. The company joined the Ellen MacArthur Foundation's 2030 Plastics Agenda for Business in FY2026, supporting its wider circular packaging commitments. However, reductions in virgin plastic use do not necessarily establish equivalent reductions in total packaging waste or lifecycle emissions. These outcomes depend on the materials used, recycling infrastructure, product design and consumer behaviour.

 

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CSRD Reporting and Workforce Development

 

The FY2026 publication is Coty's second sustainability report prepared in accordance with the European Union's Corporate Sustainability Reporting Directive (CSRD). The company also reported improvements in external sustainability assessments, including an A rating from CDP Climate, an AA rating from MSCI ESG Ratings, a Low Risk assessment from Sustainalytics and a Gold rating from EcoVadis. These assessments provide additional perspectives on the company's sustainability management, although each uses different methodologies and evaluation criteria.

Alongside its environmental initiatives, Coty expanded workforce development programmes, providing AI training to more than 2,000 employees across 11 countries and leadership development resources for managers. Markus Strobel, Executive Chairman and Interim CEO of Coty, said, "As Coty transforms, our focus remains firmly on creating long-term value through our Coty.Curated framework." The FY2026 findings show measurable progress against several environmental targets, with the next challenge involving sustained reductions across Coty's global operations and supply chain as the company works towards its longer-term net-zero commitment.

 

Source: Coty Inc.