Dive Brief:
- Beauty conglomerate Coty has implemented several initiatives to reduce energy consumption across its global distribution network, according to a FY26 sustainability report.
- The company’s efforts include modernizing on-site lighting systems with LED upgrades and motion sensor technology, optimizing heating through improved insulation and lowering temperature setpoints, per the report.
- By the end of FY26, Coty, which owns or licenses cosmetic and fragrance brands including Sally Hansen, CoverGirl and Marc Jacobs, reduced its energy consumption by 19% compared to a 2019 baseline, according to the report.
Dive Insight:
Coty joins a growing roster of companies testing ways to reduce energy usage and costs within their distribution operations.
Best Buy, for instance, installed a solar field at a distribution center in California this year to power the facility. The Dinuba site is the first distribution center in Best Buy’s network to feature a solar field as part of a larger decarbonization effort. Off-price retailer Burlington has also been pushing to cut back on energy consumption and lower costs, expanding several on-site solar installations across its distribution network.
As part of its sustainability work, Coty’s recently completed an LED lighting retrofit at a distribution center in Riverside, Maryland, according to the company’s report. A total of 2,596 fixtures were upgraded in FY26. The project aims to reduce lighting-related energy consumption by 25%. The resulting 519,000 kWh in savings delivered about $80,000 in annual energy savings and $2,000 in maintenance costs.
“In addition to energy and cost benefits, the new system has improved working conditions, with LEDs providing up to 40% greater brightness at floor level, supporting better visibility,” per the report.
Besides the lighting upgrades, Coty has continued to implement smart metering tools to provide better visibility into consumption patterns and create more targeted reduction strategies, according to the report. This includes the use of energy consultancy Cotopaxi’s energy and water monitoring systems in Coty’s distribution centers in Riverside; Bielsko-Biala, Poland; and Bournemouth in the United Kingdom.
Looking ahead, Coty plans to expand heat pump technology, modernize HVAC systems, increase rooftop photovoltaic capacity — which is the maximum amount of electrical power sourced from a solar panel system — and explore zero fossil fuel programs, the company said.
Coty’s other sustainability targets across its distribution operations include sending zero waste to landfill from facilities and factories by 2030, the company reported. In terms of progress. The beauty company also aims to recycle 80% of waste generated by distribution centers and factories by 2030, compared to a 2019 baseline, per the report. The company reported that it met both targets in fiscal 2026.
Coty manages five distribution centers globally, which handle warehousing, shipments and logistics operations, per the report.
