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Corporate Responsibility Report 2010-2011

Corporate Responsibility Report Avon Products, Inc. recognized the beauty of "corporate responsibility" nearly a century before the term became part of the cultural lexicon. From the very beginning, in 1886, forwardthinking Avon Founder David H. McConnell committed his company "to meet fully the obligations of corporate citizenship by contributing to the wellbeing of society and the environment in which it functions" words that still guide the company 125 years later.

Avon is committed to the mission to "do well by doing good," managing its business enterprise to the highest standards while leveraging its unique capacity to mobilize and engage people to be agents of change in their lives, communities and the world.

The core content of this Corporate Responsibility Report represents the "three pillars" of Avon's corporate mission and the focus of the company's corporate responsibility efforts and achievements: the empowerment of women, sustainability and philanthropy. Also covered are the key areas imbedded in the business enterprise that form the foundation of a good corporate citizen: governance, ethics, stakeholder engagement, public policy efforts, workplace safety and commitment to diversity.

As Avon helps women the world over to look, feel and be their best, the company also brings beauty of a different kind to people, places and issues around the globe.

Empowering Women Empowering women to achieve economic independence and inspiring them to serve as agents of change.

Sustainability Addressing our environmental impact through sustainable operations and mobilization efforts to help end deforestation.

Philanthropy Improving the lives of women by supporting issues important to them and providing opportunities, tools and resources so they can take personal action.

Message from Avon Chief Executive Officer Sheri McCoy Welcome to Avon's Corporate Responsibility Report. This report is organized around the three pillars underpinning Avon's corporate citizenship priorities: Women's Empowerment, Sustainability and Philanthropy. These three priorities reflect a commitment Avon founder David H. McConnell made more than 125 years ago, that Avon would "contribute to the wellbeing of society and the environment in which it functions." This is why we engage and mobilize our more than 6 million Sales Representatives, 40,000 Associates and millions of customers to make a meaningful impact around the world. And we are guided by our mission, principles and values, which includes earning the trust of our stakeholders by exhibiting integrity and embracing transparency.

At Avon, the priority to empower women starts with helping our independent Sales Representatives to achieve economic independence. We are there to support them because each Avon Representative is in business for herself, but not by herself.

When it comes to our second pillar, sustainability, the company has made strong commitments to environmental stewardship, both externally and internally. Since 2010, Hello Green Tomorrow has driven worldwide mobilization in more than 50 countries to help end deforestation. Our most recent internal efforts include the Avon Paper Promise, Palm Oil Promise and Green Building Promise, which all address impacts in areas of material importance to our business and the planet.

The third element of Avon's Corporate Responsibility is global philanthropy, which is focused on the critical issues of breast cancer and violence against women as well as disaster relief. Through the efforts of our corporate philanthropy and the U.S.based Avon Foundation for Women, we have raised and donated more than U.S. $860 million worldwide, making the Avon Foundation the largest corporatesupported foundation dedicated to women's causes globally.

Looking ahead, we have many ambitious goals. For global philanthropy, we hope to reach $1 billion by 2013. In sustainability, we are targeting a 20% absolute reduction in green house gas emissions by 2020. And we will continue to offer economic empowerment to millions of women worldwide.

Through this report, you will learn about our progress and our goals. We encourage you to share feedback at [email protected].

Your input will help us meet the expectations of our stakeholders and address the topics that matter most in an open and transparent manner.

Thank you for your interest in Avon. We look forward to hearing from you.

Sheri McCoy Chief Executive Officer Avon Products, Inc.

Vision & Mission Vision & Commitment | Values | Principles | Mission

Avon maintains the same vision, mission, values and principles today that have earned the company trust and respect over the past 125 years.

Avon's Vision

To be the company that best understands and satisfies the product, service and selffulfillment needs of women—globally.

Avon's Commitment

This is the company that puts mascara on lashes and food on tables. That fights wrinkles with one hand and breast cancer with the other. That knows the value of a perfect lip, but still opens its mouth and speaks out against domestic violence and for women's financial independence. This is the company that not only brings beauty to doors, but also opens them. The company that supports approximately 6.5 million Representatives in over 100 countries. This is Avon. The company that for more than 125 years has stood for beauty, innovation, optimism and, above all, for women.

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Avon's Values

l Trust means we want to live and work in an environment where communications are open where people feel free to take risks, to share their points of view and to speak the truth as they see it. Trust people to do the right thing and help them to understand the underlying reasoning and philosophy and they won't disappoint.

l Respect helps us to value differences, to appreciate each person for her or his unique qualities. Through respect, we help bring out the full potential of each person.

l Belief is the cornerstone of empowering Associates to assume responsibilities and be the very best they can be. Believe in someone and show it and that person will move mountains to prove you're right.

l Humility simply means we're not always right we don't have all the answers and we know it. We're no less human than the people who work for us, and we're not afraid to ask for help.

l Integrity should be the hallmark of every Avon Associate. In setting and observing the highest ethical standards and doing the right thing, we fulfill a duty of care, not only to our Representatives and customers in the communities we serve, but to our colleagues and ourselves.

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Avon's Principles

Established by founder David McConnell

l To provide individuals an opportunity to earn in support of their wellbeing and happiness.

l To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction.

l To render a service to customers that is outstanding in its helpfulness and courtesy.

l To give full recognition to employees and Representatives, on whose contributions Avon depends.

l To share with others the rewards of growth and success.

l To meet the obligations of corporate citizenship by contributing to the wellbeing of society and the

environment in which it functions.

l To maintain and cherish the friendly spirit of Avon.

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Avon's Mission

Avon's mission is focused on six core aspirations the company continually strives to achieve:

l Leader in global beauty: Build a unique portfolio of beauty and related brands, striving to surpass competitors in quality, innovation, and value, and elevating Avon's image to become the world's most trusted beauty company. Learn more about Avon's brands.

l Women's choice for buying: Become the shopping destination for women, providing a personal, hightouch experience that helps create lifelong customer relationships. Learn more about customer engagement at Avon.

l Premier directselling company: Expand Avon's presence in direct selling, empowering women to achieve economic independence by offering a superior earnings opportunity as well as recognition, service and support, making it easy and rewarding to be affiliated with Avon. Learn more about how Avon empowers women.

l Most admired company: Deliver superior returns to shareholders by pursuing new growth opportunities while maintaining a commitment to be a responsible, ethical company and a global corporate citizen that is held as a model of success. Learn more about recognition Avon has received.

l Best place to work: Elevate the company's leadership, including its high standards, respect for diversity, and commitment to helping Associates achieve their highest potential in a positive work environment. Read about Associate engagement, workplace safety and diversity at Avon.

l To have the largest foundation dedicated to women's causes: Be a committed global champion for the health and wellbeing of women through philanthropic efforts, with a focus on breast cancer, domestic violence and women's empowerment. Read more about Avon's global philanthropy.

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About This Report This is Avon's third corporate responsibility (CR) report. Previous reports were published in 2004 and 2009 and are available to download here. Data and case studies contained in this report pertain to calendar year 2010 (January 1 – December 31), except where otherwise indicated or where intermediary updates are made, and indicated, prior to the next full report. All references to currency are in U.S. dollars, unless otherwise noted. This report is presented in an interactive, online format to better inform and engage stakeholders and allow for more frequent updates, as well as to limit the environmental impact of a fullprinted report. The "Build My Report" function allows the creation of a customized report in PDF format for interested stakeholders.

The boundaries of this report cover the core business of Avon Products, Inc., including its manufacturing operations, administrative offices and distribution facilities. Avon sells product in more than 100 markets, with directsales operations in 64 countries and territories, and distributes products in 41 more through thirdparty distributors. The majority of Avon's core business involves products within the beauty category – including cosmetics, fragrance and toiletries (also referred to as CFT). In 2010, Avon sold its Japan business and revenue figures for 2009 and 2010 have been restated to exclude Avon Japan revenues. Updated figures can be found here.

The report covers mainly companyowned and operated operations, including manufacturing sites of the company's CFT products; unless noted, the report data does not cover contract manufacturing facilities where all nonCFT products are produced, such as jewelry, apparel, home, gifts, toys, fitness and decorative products, although these facilities are covered under the Avon Supplier Code of Conduct, which was revised and strengthened in 20102011.

The report highlights the company's CR efforts and its progress against existing goals and strategies for improving environmental, social and governance performance. Report content focuses on topics that are most material to Avon and to its stakeholders, including Associates (employees), independent Sales Representatives, customers, investors, local communities, nonprofit partners, government regulators, and special interest or advocacy groups represented by nongovernmental organizations (NGOs).

This report was produced in accordance with the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines. Avon has selfdeclared an application Level B for its 2010 report. Please refer to the GRI Content Index for a listing of all standard disclosures covered in this report.

An internal review of all data and assertions contained in this report was conducted by Avon to ensure accuracy of the content. Avon does not have a policy regarding external assurance, nor was this report externally verified by an independent third party.

The company's goal is to publish a new report every two years, while continually updating the online report content as new developments and performance data become available, or relevant news or achievements arise.

Avon encourages its stakeholders to provide feedback on the topics covered in this report. Please submit any questions or comments on the report to the company by email at [email protected].

Committed to Empowering Women The legacy of Avon Founder David H. McConnell, and the core priority of the company today, is the empowerment of women. This mission is as relevant in the 21st century as it was in 1886 when the company was founded. The "product" Avon offers is not lipstick, but economic opportunity for women. The company may be considered one of the world's largest micro lenders, with $1 billion in credit extended on virtually any day of the year and about $4 billion annually in total Sales Representative earnings.

Around the world, the Avon earnings opportunity is still a path to financial independence, selfreliance and the realization of dreams for women. Today, in more than 100 countries, approximately 6.5 million active independent Avon Sales Representatives the vast majority who are women are realizing their dreams by selling Avon products.

Economic Opportunity and Flexibility

In many parts of the world, circumstances for women are vastly different than they were in the late 19th century when Avon was born (originally as the California Perfume Company). Back then, women in general had few employment opportunities outside the home, and until well into the 20th century, it was the exception, not the rule, for women to "work." Today, women enjoy unprecedented access to educational and professional opportunities, and the economic empowerment this brings, including the opportunity for visibility and success in fields that were virtually offlimits to women in the past.

Yet, despite these strides, women in much of the world have little access to the mainstream economy or to credit. In fact, women account for twothirds of the population living below the poverty line worldwide, and 600 million women are living on a $1 or less per day. These are serious numbers and serious issues. For many women, the Avon Sales Representative earnings opportunity is a lifeline, an opportunity to support themselves and their families. It helps put food on the table and provide other necessities and, sometimes, a few luxuries.

The Avon Sales Representative earnings opportunity offers another benefit: a flexible alternative to traditional employment, without set hours and a set workplace. As an independent entrepreneur, an Avon Sales Representative sets her own hours and goals, and enjoys a schedule that is adaptable to other priorities, such as family or education, or even another job. Whether in Moscow or Kansas City or Sao Paolo, women worldwide leverage this flexibility to drive their Avon businesses in the context of other responsibilities the ultimate "work life balance."

Recession Resistance: Powering On

Today, the direct selling opportunity is especially relevant. Between 2008 and 2010, the ranks of Avon Representatives grew by half a million. The global economic turmoil has driven unemployment and underemployment to almost unprecedented levels, with many women and families facing unexpected financial difficulties. Both the World Bank and the International Labor Organization expect the continued economic recession to drive more female unemployment than male. The Avon earnings opportunity provides a source of income, or additional income, that can help reestablish financial viability after a job loss or income reduction. Another benefit is the efficiency of the process: the Sales Representative opportunity requires no special training, lengthy interviews or extensive onboarding.

When a woman is an Avon Representative, she's the head of her own business; she cannot be fired or downsized particularly appealing given that unemployment continues to increase in this longlasting economic crisis. The beauty of the Avon earnings opportunity is that a woman controls her own economic and employment

destiny the very definition of empowerment.

Advancing Women Associates

Avon is committed to advancing female Associates (employees) around the world and through the leadership ranks. To learn more about Avon's commitment to women within the company, as well as the broader focus on diversity and inclusion, click here.

Empowered to Achieve Power of MicroEnterprise | High Touch / High Tech | Support | Training | Leadership

Avon wants its Representatives to succeed, supporting the efforts of each of its more than 6 million Representatives to achieve her own definition of "success." The company's directselling model is designed to stack the deck in the Representative's favor, with "winning cards" in the forms of a low cost of entry, a wide range of training and development opportunities, the support of District or Zone Managers, and pioneering hightech, directselling tools which enable Representatives to manage and grow their businesses as never before.

In addition to tactical tools, the trusted Avon name provides empowerment to the Sales Representatives as well. As a top global brand, with a reputation for quality, affordable products, the name "Avon" can be a "door opener" for both experienced and new Sales Representatives.

Power of MicroEnterprise All it takes to become an Avon Sales Representative and launch a business is the nominal cost of an appointment fee. These fees vary for each country according to the local economic standards in the more than 100 countries in which Avon operates. For example, in the U.S. the appointment fee is $10.00, and in the Philippines it is equivalent to U.S. $1.00.

Once appointed, an Avon Sales Representative has flexibility over her schedule and is her own boss, setting the parameters and goals for her business. For some Representatives, selling Avon is a fulltime business. Others sell Avon to supplement income from a fulltime job, or for a set period of time to achieve a certain financial goal, such as a child's college tuition or a family vacation. Depending upon the level of sales, the earnings of an Avon Sales Representative vary from about 20 percent to 50 percent, providing greater incentive and earnings to those who are committed to personal success.

In virtually every market, crediteligible Sales Representatives do not pay Avon until their customers pay them directly, meaning a Representative does not have to make a cash outlay to cover the cost of her customers' orders. In fact, Avon may be considered among the largest microlenders to women in the world, and on any given day the company extends nearly $1 billion in credit.

Avon's business model enables many women, who otherwise might not have access to credit, to pursue and attain their personal financial goals.

High Touch / High Tech Connectivity and community have always been critical to Avon's directselling model as well as its corporate culture. Avon is committed to a "High Touch, High Tech" approach. When the company was founded 125 years ago, it pioneered relationship marketing, with Representatives personally marketing products to their customers the original "social network." Today the oneonone relationship, defined by high quality, personalized service, is still at the core of Avon's directselling business, including the relationship between the Sales Representatives and her customers, and between the District Sales Manager and the many Sales Representatives she manages, mentors and supports.

Sales Tools 2.0: High Touch Meets High Tech

Starting in the 1990s, Avon faced the challenge of melding facetoface contact with virtual interaction, adapting to new technologies in the way people connect, communicate, share and shop. By innovating the directselling sales channel, Avon found a way to meet both of these needs and help its Sales Representatives succeed and thrive with technology as a tool, not a replacement.

Avon offers many tools to help Representatives in their business, including:

l Customized social media environments for Representatives to reach customers and other Representatives.

l A personalized eBrochure widget to ensure that customers are never more than a few clicks away from ordering, sharing the eBrochure with friends and creating a viral sensation.

l A new application for Sales Leadership Representatives to more effectively monitor their "downline" Representatives' orders.

l Intelligent Ordering program, which makes it easier for Representatives to place their orders with Avon and ensure that they receive special product offers that are relevant to them.

l A widget which lets Representatives embed the latest Avon TV advertisements and videos into their own social media platforms.

Avon has created its own social network site – Avon Connects – which is being piloted in two countries in Europe. Avon Connects is a networking site for Representatives, Customers, Sales Leaders and all empowered women.

In addition, in 2011, Avon has 55 Facebook pages, 20 Twitter feeds and 20 YouTube channels globally reaching a combined base of two million followers and fans.

eRepresentatives

The U.S. offers an Avon "eRep" program, which provides customers 24/7 shopping access via the Independent Sales Representatives' personalized ecommerce websites, merging technology with highquality service and oneonone attention. Each Avon eRepresentative has a customized web page, which allows her to conduct and manage her business online, track customers and orders, and serve customers across time zones and geographies. The "eRep" program also gives a Representative the freedom to post her own specials offers and promotions to drive her business.

Wide Ranging Support One of Avon's priorities is to offer all its Sales Representatives as much support as possible to grow their businesses. At Avon, a Representative is in business for herself, but never by herself.

Specific resources offered to Representatives vary by country according to the needs, size and nature of the local Avon business, but the comprehensive menu of materials and resources offered in the U.S. is a good example and includes the following:

l A dedicated intranet website (youravon.com).

l Templates and IT support for personal sales websites.

l A unique Representative email and telephone support line.

l Regular "eNews" updates (biweekly newsletter to Representatives).

l A targeted communications and information portal tailored to Avon Leadership Representatives (those with a "downline" of Sales Representatives they support).

l A regular cascade of communications for all Sales Leaders.

l Support and training from District Sales Managers (also known as Zone Managers in some countries)

l Regular sales meetings and special events for Sales Representatives, which include exposure to Avon's top sales and marketing management.

l Educational online training opportunities specializing in sales and beauty.

l Various conferences for field sales management and top Sales Leaders, which focus on recognition, information sharing and skill enhancement.

l Advertising and public relations campaigns about the Sales Representative earnings opportunity and about individual Sales Representatives.

Unique Savings and Health Insurance Opportunities

Avon also supports Sales Representatives with opportunities that are unusual for the directselling industry. Although they are independent contractors, not employees, in 2001 Avon began making available model individual savings plans to the U.S. Sales Representatives – the first of its kind in the directsales industry. U.S. Avon independent Sales Representatives who qualify can also take advantage of a life and health insurance program.

Training for Success Avon Representatives represent a wide range of work and educational experiences. Some Representatives have advanced degrees and extensive professional work experience, and others have never worked outside the home. No matter what the level of education and work experience a Representative may have, Avon provides the tools and support Representatives may use to succeed.

To this end, Avon offers numerous training opportunities for Representatives, including an online training curriculum called "the Beauty of Knowledge." This eLearning program offers 24 free, selfpaced training courses on marketing topics, including selling skincare, makeup, hair care, and sales topics such as recruiting, selling skills, appointing and training new Representatives, sales leadership and finding and servicing customers.

Mentoring is also a key component of training. The company offers onetoone workshop training and development, leadership seminars and monthly zone meetings.

Leadership Opportunities An Avon Sales Representative can earn in two ways. The first is by selling Avon products as a traditional Representative, and the second is by selling and recruiting others to become Representatives and sell Avon as part of her team. The latter is known as the Avon Sales Leadership program. Sales Leader Representatives prospect, appoint, train and develop a team, called a "downline" of Representatives.

The Sales Leadership program is expanding worldwide, giving Sales Representatives enhanced earnings and leadership opportunities. Unlike some multilevel sales plans, Avon Sales Leader Representatives must continue to maintain their own Avon businesses and customers in addition to supporting and mentoring the Sales Representatives in their downlines.

Empowered to Make an Impact Unique to Avon is our womantowoman network of more than 6 million Avon Sales Representatives worldwide combined with our capacity to educate, engage and mobilize. These women don't just sell Avon products; they are also a veritable army for good communicators, educators and fundraisers for the causes of breast cancer, domestic violence and deforestation.

In short, Avon's Sales Representatives make up a powerful grassroots movement that reaches across continents and time zones to raise awareness and funds for issues of health, safety and wellbeing that are important to women. Mobilizing Avon's Representatives is about leveraging Avon's strength to reach and engage people to take action in support of important causes.

For the Avon Breast Cancer Crusade and Speak Out Against Domestic Violence programs, Sales Representatives have distributed millions of educational materials and raised hundreds of millions of dollars through sales of special products and personal participation in walks, runs and other events worldwide. For the Hello Green Tomorrow project, Avon Sales Representatives raised over $2 million in just two years to help restore endangered rain forests in Brazil and Indonesia.

Avon Sales Representatives have also responded quickly to national and international emergencies. Their passionate fundraising efforts, combined with corporate donations, have allowed Avon to respond rapidly and effectively to natural disasters and emergency events in countries around the world in which Avon has a significant presence.

In addition to raising funds for Avon's core mission areas of breast cancer, domestic violence and environmental causes, Sales Representatives in North America can also organize their own fundraisers for local accredited nonprofit organizations in their communities. Special product promotions drive a portion of proceeds to the selected organization, extending the impact of Avon at the community level and providing the Sales Representative the opportunity to be a "local hero."

Profiles of Success Below are a few examples of successful Avon Sales Representatives around the world. To read more contemporary profiles, click here, or read about "The Avon Lady Through the Years."

Building a Family Tradition

Vondell

Los Banos, CA, USA

In 1991, having moved to California, Vondell started her Avon business with her husband, who was an engineer at the time with IBM. She approached her Avon business with incredible tenacity and discipline, setting goals, establishing a plan to achieve them, and raising the bar when those goals were met all while building her downline (Sales team). Now, Avon is a family tradition. All three of Vondell’s children, and one of her grandsons, have launched their own Avon businesses. Vondell has continually earned a

sixfigure salary through her business and is a mentor and inspiration within Avon and her community.

Using Social Media to Open New Doors

Jo'El

Novi, MI, USA

Jo'El, mother of three, has battled Crohn's disease for more than 26 years. Although her disability prevented her from following the traditional doortodoor selling approach at Avon, a new door opened for her through the use of social media. In 2009, Jo'El and her mom, already an Avon Representative, decided to pursue an Avon opportunity together, leveraging each other's strengths. Jo'El had a solid working knowledge of social media and her mom knew the Avon brand. This winning combination helped them connect with both

existing and new customers.

Due to her health condition, Jo'El chose to use Avon's online selling tools to become an Avon eRep. "As an Avon eRep, once I've made the initial delivery, people are more inclined to email, Facebook, or tweet me with their orders." This has helped Jo'El build a large and diverse customer base of more than 1,000+ customers with just the click of a button.

Reaching Unexpected Heights

Aurora

Rio Grande Valley, TX, USA

After having her third child, Aurora was looking for an opportunity to earn extra money while maintaining a flexible schedule and started her Avon business in 1977. She sold doortodoor in her community and joined Avon's Leadership program, where she recruited, trained and mentored other Representatives. Her hard work and dedication helped her become the first Executive Unit Leader (Avon's second highest level of Leadership) in her district in 1995. Aurora continues to grow her business and has achieved Avon's top Leadership

Level as a Senior Executive Unit Leader and is one of the most successful Leadership Representatives in the U.S.

Paying for College and More

Lisa "Angel"

Chula Vista, CA, USA

Lisa joined Avon in 2003 at age 18 with the goal of paying for her college education. Prior to Avon, Lisa had performed various parttime jobs and wanted to find an opportunity where she could maintain flexible hours that would accommodate her course schedule. Her boyfriend's mother was an Avon Representative and suggested Lisa try selling Avon. In just one year, Lisa achieved her goal of paying for her education, and has chosen to continue her Avon business. Lisa's favorite aspect of working with Avon is that she gets to create her

own work schedule, take vacations when she wants and be her own boss.

Finding Her Strength through Avon

Lisa

New Hampshire, USA

Lisa was 18 years old when she started her own parttime Avon business. Struggling to pay the bills and keep food on the table, Lisa moved from place to place, taking odd jobs which provided little financial compensation or selffulfillment. Lisa was laid off from her job in 1987 and, while unsure of her future, decided to turn misfortune into opportunity by investing more time and energy into growing her Avon business.

Working as a fulltime independent Avon Representative, Lisa honed her skills and learned she had a knack for sales, selling $75,000 in product during her first year. Not only has Lisa's experience with Avon provided her with a stable source of income, but it has helped improve her selfesteem and confidence. She is often invited to share her story with Avon Representatives and other women to inspire them to reach their potential. This newfound financial freedom and confidence empowered Lisa to walk away from an unhealthy relationship, build a new house, adopt her daughter as a single parent, and publish three books. "I have always had to battle with my selfesteem. There was a time when I had none, but it's quite a boost when you get a check in the mail for $10,000 for two weeks," said Lisa. "It's very empowering to know that I have the knowledge and the ability to earn a lot of money. It has helped me in many different areas of my life."

Over the years, Lisa has sold $4 million in Avon products. Her financial goal is to reach $1 million in annual sales to show her daughter that anything is possible.

Financial Success and Friendships

Olivia

Raszyn, Poland

Avon has been a part of Olivia's life for nearly 20 years. Her mother became one of the first Avon Representatives when the company expanded to Poland in 1992. Olivia chose to leverage her familiarity with the products and followed in her mother's footsteps, becoming an Avon Representative in 2006.

Olivia has achieved many sales levels, including membership in the "Avon Club" in Poland, and her friends have become interested in what influenced her and helped her to achieve these successes. Olivia enjoys the friendships and connections she's made through Avon, and the opportunity to share the experience and professional knowledge she's gained from extensive Avon training.

Olivia's success with Avon has changed her outlook. "Avon inspires me to do things, and offers a philosophy for being a woman. In it, I find the essence of femininity, a way to live my life. To me, Avon means joy! Now I know that success in life is dependent only on me!"

Economic Independence and Confidence

Kyoung

Korea

Kyoung decided to start her Avon business because she was drawn to the directselling model, and recognized an opportunity to help build Avon's brand awareness in Korea. With the leadership opportunities and professional development Avon provided, Kyoung was able to develop her business and reach her personal financial goals. "This Avon business is especially meaningful and rewarding in that it shares beauty and confidence that can be obtained by any woman who uses the product, while at the same time promoting economic

independence and recognition."

Her increased confidence empowered her to help others strive for success as well. "It is a great feeling to be able to help many other Korean women to attain economic independence."

Committed to Sustainability Avon is best known for its leadership in empowering women for 125 years and driving global philanthropy for decades. Avon's founding principles also address the company's role and impact in the world, driven by the promise, dating back to 1886, to "contribute to the wellbeing of society and the environment in which it functions."

The two pathways of the Avon sustainability commitment are internal authenticity and external mobilization. Across these two core platforms, Avon's commitment to environmental stewardship is called Hello Green Tomorrow.

Internal Environmental Management

Avon has a longstanding commitment to managing its environmental footprint. The company addresses key impacts across its business enterprise and focuses on continuous improvement, with particular emphasis on the areas that are most material to the company and of importance to society and the planet. Global policies, processes and goals are supported by a worldwide network of Associates who are dedicated every day to environmental stewardship. This includes the global environmental management team and Associates across various disciplines who apply the principles of sustainability to their daily work.

External "Green" Mobilization

To expand the impact of its environmental commitment, Avon leverages its unique asset the ability to educate, engage and mobilize its more than six million Sales Representatives and over 40,000 Associates to create a veritable global green army.

The mobilization aspect of Hello Green Tomorrow launched internally among Avon's worldwide Associates in 2009, and in 2010 rolled out externally to engage Avon Sales Representatives and customers worldwide. The mission of Hello Green Tomorrow is to help end deforestation by empowering a global women's environmental movement to nurture nature, with programs in place to raise funds and awareness for reforestation efforts in critically endangered tropical forests.

The impact of Hello Green Tomorrow has been captured in a brief video. English Spanish

Helping End Deforestation Learn more about Avon Hello Green Tomorrow global mobilization initiative to help end deforestation, as well as two key global policies: The Paper Promise and Palm Oil Promise.

Minimizing Avon's Operational Footprint Read about Avon's environmental goals to reduce the company's operational footprint.

Taking a Holistic Approach to the Product Lifecycle Read about what Avon does to ensure quality and safety throughout the product lifecycle, while also safeguarding the environment.

Helping End Deforestation As a direct seller whose 'store' is the brochure and printed materials, with virtually no bricks and mortar stores, Avon is a significant user of paper. The issue of deforestation is especially material to the company given its reliance on paper. In response, Avon has committed to helping end deforestation through Hello Green Tomorrow, a bold commitment with two key areas of action: internal policies specific to sustainable sourcing of paper and external activation to mobilize a green army to plant a future.

The policies include the 2010 Avon Paper Promise, followed by the Avon Palm Oil Promise which was launched in early 2011. These policies ensure that internal sourcing and operational practices are aligned with the focus on ending deforestation.

The company also launched the Avon Green Building Promise, formalizing its long commitment to green buildings and requiring that all new or retrofitted facilities meet certified green building standards.

Mobilizing a Green Army

External activation is driven by Avon's unique power to mobilize for meaningful causes, and takes the form of the Hello Green Tomorrow fundraising and education program that was launched in March 2010. The program enlisted the expert partnership of The Nature Conservancy and the fundraising and tree planting efforts supported the United Nations Environment Programme's Plant for the Planet: Billion Tree Campaign. Both the fundraising and education focused on the restoration of the South American Atlantic Rainforest, a critically endangered ecosystem.

Launched with an initial company donation of $1 million, the inaugural Hello Green Tomorrow program debuted in nearly 60 countries, ranging from Australia to Mexico to Russia. Donations generated by Avon Sales Representatives $1 at a time raised an additional $1.1 million, more than doubling the company's initial commitment.

Educational materials and messages, distributed by Avon Sales Representatives and global Hello Green Tomorrow websites, drove the mission of "Five Simple Things" for personal environmental action: Reduce, Reuse, Recycle, Rethink and Replant.

The $2.1 million total contributed by Avon Hello Green Tomorrow in 2010 will allow The Nature Conservancy to replant and restore some 5,000 acres of the Atlantic Rainforest. Tropical forests serve as the lungs of the earth, support important biodiversity and provide clean water for millions. No tropical forest on Earth is closer to complete destruction than the Atlantic Rainforest, which stretches across parts of Brazil, Argentina and Paraguay. The area once covered approximately 330 million acres, and today only seven percent of this precious rainforest remains intact.

Continuing the Hello Green Tomorrow Activation

Hello Green Tomorrow fundraising and education is ongoing, with more than 50 countries continuing the

View a snapshot of the impact of Hello Green Tomorrow in a brief video. English Spanish

commitment in 2011 despite global economic challenges. Avon worldwide developed environmentally conscious fundraising products sold by Avon Sales Representatives, with all proceeds contributed to two partners: The Nature Conservancy, once again for the Atlantic Rain Forest, and World Wildlife Fund, to support reforestation efforts in the Indonesian islands of Borneo and Sumatra, another critically endangered region. These Indonesian islands are home to some of the richest and most diverse tropical forests on the planet and house thousands of unique species, including the world's last remaining Sumatran tigers, orangutans, pygmy elephants and Sumatran rhinos.

The Avon product collection created for 2011 includes a variety of reusable shopping bags, shirts and other unique, affordable items available around the world. In the U.S., a sleek recyclable aluminum Avon Hello Green Tomorrow Water Bottle can be purchased through Avon Sales Representatives or online at hellogreentomorrow.com

Engaging Avon Associates as Green Ambassadors

Hello Green Tomorrow is also providing Avon with an opportunity to educate and engage its Associates through the Green Ambassadors program. Starting in 2009, over 100 volunteer Green Ambassadors in Avon offices, manufacturing sites and distribution centers across 65 countries develop and implement grassroots environmental initiatives and education campaigns. Supporting their efforts are global communications on green news and activities, as well as blogs and tips on the Hello Green Tomorrow website.

Green Ambassadors have championed efforts such as planting of trees and gardens at Avon sites and in public places, and the installation of improved recycling systems and programmable thermostats to reduce the company's local environmental impact. Each year, the Green Ambassadors lead local efforts of the annual Avon Green Week, a full week of daily "green" events in Avon offices worldwide, including Associates, their families and communities, that coincides with the UN World Environment Day on June 5. Photos from some of the 2010 activities are found on the Hello Green Tomorrow online Press Room.

"Of all the places WWF works, the rate of destruction in Borneo and Sumatra defies the imagination. Devising a solution equal to the weight of humanity's pressure on this rich place will take persistence, creativity and collaboration. We are grateful for the support and leadership of partners like Avon who realize we all have an important role to play in meeting this challenge."

Carter Roberts, President and CEO, World Wildlife Fund

Avon Paper Promise Avon is in a position to contribute to the development of solutions that conserve, protect and restore forests, and it has taken action to do so. As a significant consumer of paper products, the company can influence both supply and demand in the market.

In March 2010, in alignment with the external launch of Hello Green Tomorrow, Avon announced the Avon Paper Promise, a comprehensive policy for promoting responsible forest use and protecting forests. The policy was developed with input from several leading environmental NGOs, including World Wildlife Fund (WWF). In October 2010 Avon

joined (by invitation) the Global Forest & Trade Network (GFTN), WWF's initiative to eliminate illegal logging and drive improvements in the world's most valuable and threatened forests.

The key goals of the Avon Paper Promise are:

l Promote sustainable Forest Use. Protect Forests. Protect Old Growth, High Conservation or Endangered Forests and ecosystems.

l Reduce demands on Forests.

l Promote clean production practices.

l Promote continuous improvement

l Remain transparent to customers, shareholders, and other stakeholders.

Avon has set a target to purchase 100 percent of its paper from certified and/or postconsumer recycled content sources by 2020 with a certification preference of Forest Stewardship Council (FSC). As of 2011, 74

percent of Avon's brochure paper met the Avon Paper Promise commitments, and approximately 25 percent of paper used in Avon's product brochures is sourced from FSC certified forests.

Avon Paper Promise: Complete Text I. VISION & PREAMBLE

Avon Products, Inc. recognizes that business leadership carries a responsibility to the environment and the world's forests. The global pulp and paper industry is associated with significant environmental impacts, from forest degradation and destruction, to water and air pollution, including carbon dioxide and other greenhouse gases that contribute to climate change. At the same time, wood and paper are renewable natural resources that, when sourced under a responsible program, can represent a sustainable material choice. It is Avon's vision to achieve just this – sustainable use of forest resources. Because Avon is a significant consumer of paper products, Avon is positioned to influence both supply and demand in the market, and thus contribute to the development of environmental solutions that conserve, protect and restore forests.

"Avon's commitment to purchase responsibly sourced paper demonstrates its leadership in responding to the alarming rate of deforestation driven by demand for timber, paper and agricultural products. We are eager to combine Avon's global presence with WWF's experience to protect the world's forests and as a result, our planet, biodiversity and people's wellbeing."

Suzanne Apple, WWF's VP for Business & Industry

Avon fully supports those responsible forest management practices that both protect biodiversity and ecosystem integrity and result in longterm social and economic benefits to communities.

One of the principles that guide Avon is the commitment to meet fully the obligations of corporate citizenship by contributing to the wellbeing of society and the environment in which it functions. In support of this principle, and in particular to responsible brochure paper procurement, the Avon Paper Promise is to procure paper in a way that:

l Promotes sustainable Forest Use. Purchase 100% of our paper from certified and or post consumer recycled content sources by 2020 with a certification preference of FSC (Forest Stewardship Council); effectively not contributing to deforestation

l Protects Forests. Protect Old Growth, High Conservation or Endangered Forests and ecosystems.

l Reduces demands on Forests.

l Promotes clean production practices.

l Promotes continuous improvement, and is transparent to customers, shareholders, and other stakeholders.

Though we do not own or manage forests, we have a responsibility through our procurement practices to ensure sustainability of the world's forest resources. As such, we are committed to understanding the sources of our pulp fiber, transparency in sourcing, and ensuring that sustainable forest management practices are used. We realize the field of paper sourcing and certification is evolving and we are committed to working with our paper and other forest product suppliers and other stakeholders, on a continuous improvement basis, to ensure that all paper and forest products used in our operations originate from sources that are managed in a manner that is consistent with the conservation of natural resources, environmental protection, and the protection of the rights of indigenous peoples in local communities.

As a decentralized company, much of Avon's paper procurement is carried out by individual Regions. In some regions and countries where we operate, preferable sustainably certified options for paper will be limited, not yet available, or costprohibitive. Therefore, this policy is designed to be broad and flexible enough to accommodate the different paper options offered to individual Regions. That said, all Regions will be expected to analyze available options, conform to the intent of this policy, and reevaluate options to improve performance over time. In these regions, through our sourcing strategies, we will influence the creation of certified sources to fulfill future needs in support of our Paper Promise.

Avon hereby establishes the following policy commitments that sets forth our vision and provides principles that will guide our purchasing decisions, to ensure the sustainability of our business, and to promote the development of markets for environmentally responsible forest products. Our vision supports the entire paper and forest products lifecycle, from commercial timber management to manufacturing to reuse and recycling. Our scope includes all paper purchased by Avon with an immediate prioritization on our brochure paper purchasing given its significance relative to our other purchasing streams. Our practices are grounded within a framework of pragmatic and sound business disciplines.

II. SUSTAINABLE FOREST USE

Avon is committed to the following principles related to sustainable forestry:

l Procure paper from forests with independent 3rd party certification of responsible forest management, and from mills and distributors with chainofcustody certification.

l Forest growth at a rate equal to or faster than the rate at which it is being harvested in support of our paper needs.

l Independent verification that nonFSC papers from outside the priority conservation areas referenced in section III do not come from old growth, Endangered Forests, and the other types of controversial sources recognized by this paper promise.

l Postconsumer recycled content use.

In support of our vision, Avon has a goal of purchasing 100% of our wood fiber from an environmentally preferred mix of recycled fiber and or certified fiber by 2020 where available and cost effective (effectively not contributing to

deforestation). Avon will give preference to wood fiber from forests certified under FSC standards (Forest Stewardship Council) with a specific purchasing preference for paper that contains fiber from FSC FM certified forests (paper bearing the FSC "pure" label). The next level of preference will be given to paper that is partially from FSC FM certified forests (paper bearing the FSC "mixed sources" label) and or from mills or paper distributors or printers with independent FSC chainofcustody (CoC) certification. To support our vision, Avon will as necessary participate in socially and environmentally responsible afforestation and reforestation initiatives including REDD (reducing emissions from deforestation and forest degradation).

For purposes of this policy, "certified fiber" will mean the following five schemes: Forest Stewardship Council (FSC); Sustainable Forest Initiative (SFI); Canadian Standards Association's National Sustainable Forest Management Standards (CSA); Sistema Brasileiro de Certificacao Florestal (CERFLOR) in Brazil; and Program for the Endorsement of Forest Certification Schemes (PEFC) and other forest certification schemes meeting broadly recognized performance based criteria.

Sourcing recycled fiber can reduce overall pressure on natural forests and other important natural resources, especially when fibers from postconsumer wastes are used in paper production. Avon regards recycled fiber as an environmentally responsible fiber and will pursue opportunities to increase the use of recycled fiber as appropriate. In selecting recycled fiber, Avon's intent will be to only purchase postconsumer sources of recycled fiber. Avon will support efforts of suppliers, governmental authorities and nongovernmental organizations to increase wastepaper collection rates and improve recycled fiber quality.

Paper manufacturing is a resourceintensive process that can lead to air and water emissions that impact overall environmental quality.

l Avon will purchase paper only from suppliers that meet or go beyond legal environmental performance requirements for pollution control.

l Avon encourages its suppliers to monitor and reduce overall emissions by adopting the latest technologies that minimize pollution impacts.

l Avon will not purchase papers manufactured using elemental chlorine bleaching processes and encourages its suppliers to move toward process chlorine free, elemental chlorine free, and or totally chlorine free bleaching.

III. PROTECTING FORESTS

Avon recognizes the need to support and encourage the adoption of environmentally and socially responsible practices to ensure that fiber used in our paper is sourced from well managed timberlands, and that land use choices and management practices contribute to the conservation of natural resources and environmental protection. Avon will use commercially viable, environmentally responsible suppliers.

l Conservation of Endangered Forests and Protection of Biodiversity and Ecosystems: Avon will give preference to suppliers who work toward conservation of endangered forests and the protection of biodiversity and ecosystems contained within these forests. Avon will source paper only from suppliers that are believed to share the corporations respect for fundamental human rights. Avon also recognizes that certain regions have been identified as priority regions for forest conservation and biodiversity by the conservation science community and other stakeholders, and will work toward phasing out and finding suitable alternatives to any fiber sourced from these regions, specifically:

n Endangered Forests and ecosystems.

n Forests harboring a rich array of biodiversity that have been heavily impacted by human activity

n Global forest types that are naturally rare and threatened and mapped as "G1" (globally ranked criticlly imperiled) or "G2" (globally ranked imperiled) communities by NatureServe/Natural Heritage Network

n Forested wilderness areas, including those that are rich in species diversity, contain threatened species , or provide critical ecosystem services

n Old growth forests that have not previously been subject to commercial logging and conversion of natural forests to plantations and nonforest land uses

n Areas mapped by the government as park or conservation reserve where commercial logging is prohibited

n Illegally harvested wood

n Conflict timber

Avon is committed to work with suppliers that do not have 3rd party independent certification to ensure the source of the paper does not come from the aforementioned areas. Additionally, Avon will help protect endangered forests in regions where its suppliers source forest and paper products, and recognizes the following conservation priority regions: Canadian boreal forests, U.S. National Forests, Canadian and U.S. coastal and inland temperate rainforests, Indonesia, Chile, Atlantic forests of Brazil, and the Cumberland Plateau of the U.S. where commercial fiber production for pulp and paper plays a defining role in land use choices and natural resource management. In these conservation priority regions, it is Avon's intent to only use FSC certified material.

Avon will give preference to paper suppliers who supplement their land management plans with natural forest restoration and recovery initiatives, particularly in areas where most of the original extent of habitat has been lost and where continuing deforestation pressures threaten large numbers of species with extinction.

IV. REDUCING DEMANDS ON FORESTS

Avon is committed to reducing demand on the world's forests and other resources. Avon is focused on source reduction in the long term.

Avon is committed to continue to optimize our overall use of paper in every area of our business. Our options includes optimizing distribution methodologies, basis weight reductions, reductions in brochure size, and increasing the use of electronic media as a replacement for paper based products. To this end, we will continue to leverage technology and establish paperless processes wherever possible.

As part of our continuous improvement, Avon has already implemented several key initiatives designed to significantly reduce paper usage at our locations worldwide including:

l Conversion to online and mobile phone product orders from paper order forms, with an average of nearly 42% of orders being placed on line in 2009. In North American in 2009, approximately 75% of 2009 orders have been placed online, saving over 350 tons of paper, followed by Central and Eastern Europe at 71%.

l Double sided printing for paperwork such as reports and invoices, and double sided printers installed in offices

Additionally, Avon encourages suppliers to conduct research into the use of alternate fiber sources.

V. REPORTING & IMPLEMENTATION

Over the next three years, Avon will report on its activities to implement this policy to interested stakeholders through Avon's Sustainability report. Avon will implement a verification system for its wood fiber procurement activities to meet the objective of using environmentally responsible fiber and applying its stated preferences in accordance with this policy. Over the next three years, Avon will track and report the amount of wood fiber it purchases from suppliers certified under each of the forest certification systems. Avon will conduct periodic consultations with external stakeholders to review emerging issues related to environmentally responsible fiber and Avon's implementation of its Paper Promise.

Avon will encourage its suppliers to adopt the FSC forest certification scheme and to take other actions to increase the availability of wood fiber certified to FSC standards. Avon will review the integrity of environmental and social responsibility practices followed by its paper suppliers and consider the supplier's practices as part of the initial supplier selection process and when supply agreements are renewed. Avon will inspect its wood fiber suppliers periodically and require its suppliers to report regularly concerning their compliance with this policy. In the event that a supplier to Avon does not have certification of its forest lands or wood fiber procurement activities or the supplier is sourcing material in conflict with our protecting forests objectives, that supplier will be given reasonable time to achieve certification. If a supplier is not in compliance with any applicable provisions of this policy, Avon will

take appropriate action to address noncompliance, which may include (i) an action plan for compliance or (ii) termination or nonrenewal of the supply contract.

Avon Palm Oil Promise Another issue impacting deforestation is the rapid expansion in the production of palm oil, driven by an increase in global demand for the ingredient for use in a variety of industries. Development of new palm oil plantations has resulted in the destruction and conversion of large areas of tropical forests and peatlands, especially in parts of Malaysia and Indonesia, the source of 85 percent of the world’s palm oil, where the indigenous forests and peat lands are vital to the ecosystem.

Though more than 80 percent of palm oil is used in food, it is also one of the natural oils used in cosmetics and personal care products.

Palm oil is produced from the fruit flesh of palm trees which grow in tropical regions. It is the most efficient source of oil per hectare of cultivated land by a significant margin, followed by coconut, which produces less than half as much oil per hectare. Palm oil is the most produced vegetable oil in the world in terms of production, with approximately 46 million tons per year, and palm kernel oil, derived from the palm fruit kernel, is an additional 5 million tons per year.

In response to the urgent and pressing global call for sustainable palm oil production, the Roundtable on Sustainable Palm Oil (RSPO) was formed in 2004 with the objective of promoting the growth and use of sustainable palm oil products through credible global sustainability standards developed through involvement of all stakeholders.

Although Avon is not a significant user of palm oil, the company recognizes the threat palm oil production poses and is committed to playing a leadership role and driving influence within its sphere. In March 2011, Avon adopted the Avon Palm Oil Promise, which outlines the company's guidelines for purchasing sustainably sourced palm oil.

The goals are to:

l Help drive demand for sustainable palm oil

l Increase the supply for sustainable palm oil

l Help maintain biodiversity and habitat for endangered species

l Support the current moratorium on the conversion of primary forests and peatland into palm oil plantations

Avon joined the RSPO to help continue the development, implementation and verification of credible global standards for sustainable palm oil. Through the Palm Oil Promise, Avon has become the first major beauty company to commit to 100 percent RSPOcertified palm oil through "book and claim" certificates designed to advance the production of sustainable palm oil.

In 2011, Avon will have supported 13,000 metric tons of sustainable palm kernel oil production through the purchase of "book and claim" certificates which were estimated to be

equivalent to 100 percent of the palm kernel oil and palm kernel oil derivatives it used in 2010.

Avon Palm Oil Promise: Complete Text I. VISION & PREAMBLE

At Avon Products, Inc. we believe business is responsible for "contributing to the wellbeing of society and the

environments in which it operates," as stated in our founding principles of 1886, and also for taking a leadership role where it can have positive influence on environmental and social issues relevant to its stakeholders.

Avon has worked internally to reduce the environmental impact of its operations, including the issues of energy consumption, water, waste, recycling, greenhouse gas emissions and paper use, along with a commitment to green building design. Externally, Avon has created the Hello Green Tomorrow program to empower and mobilize a "green army" to help end deforestation through fundraising and education, following the successful model of the company's leadership in the causes of breast cancer and domestic violence.

The issue of palm oil provides an opportunity for Avon to make a difference. Palm oil production has come under criticism for destroying rain forests and peatland across Southeast Asia, leading to habitat destruction and high carbon emissions. Although more than 80 percent of palm oil is used for food products, it is also one of many natural oils used in personal care products. While Avon is not a significant user of palm oil, the company has made the commitment to take a leadership position by purchasing GreenPalm certificates covering 100 percent of its global palm oil use. This will help drive demand for sustainable palm oil, increase the supply for sustainable palm oil, and help maintain biodiversity and habitat for endangered species.

GreenPalm is a certificate trading program endorsed by the Roundtable on Sustainable Palm Oil (RSPO), which seeks to increase the sustainable production of palm oil. In support of this commitment, Avon has joined the RSPO (http://rspo.org/) to help continue the development, implementation and verification of credible global standards for sustainable palm oil.

In line with our commitment to raising awareness and driving positive environmental and social change, Avon has developed the Palm Oil Promise, which comprises corporate guidelines for purchasing sustainably sourced palm oil.

II. THE PALM OIL PROMISE

The Avon Palm Oil Promise ensures that:

l Avon will source sustainable palm oil through the purchase of "book and claim" certificates estimated to be equivalent to 100 percent of the palm oil and palm oil derivatives it uses.

l Avon supports the current moratorium on the conversion of primary forests and peatland into palm oil plantations.

For more information visit www.hellogreentomorrow.com

Minimizing the Operational Footprint Avon strives to minimize the environmental impacts resulting from its operations across the business enterprise. There is a focus on:

l Greenhouse gas reduction and energy conservation

l Material reuse, waste minimization and recycling practices

l Water use reduction

l Sustainable building practices

The company also works to minimize its impacts through the design and construction of green facilities, as captured by the company's Green Building Promise, which ensures that all new facilities are constructed to certified green standards, such as the Shanghai R&D Center shown here.

In 2008, Avon met or exceeded nearly every one of its 2004 environmental goals. Moving forward, Avon established new shortterm goals for 2012 and longterm targets for 2020.

Avon also voluntarily files each year with the Carbon Disclosure Project, and these filings have been available for public review for several years.

Avon is also committed to the highest standards of operations in our Supply Chain.

Avon's Key Environmental Goals

2012 (base year 2008)

2020 (base year 2005)

GHG/Carbon Emissions 10% intensity reduction 20% absolute reduction

Recycling 5% increase (through manufacturing,

distribution and

administrative facilities)

Zero waste to landfills

Waste Management 10% intensity reduction 40% intensity reduction

Water Use 7% overall intensity reduction

40% overall intensity reduction Zero waste water discharge in water stressed regions

Energy & Greenhouse Gas Emissions Reduction Efforts Many scientists, as well as environmental and conservation organizations, agree that climate change is one of the greatest environmental issues today. Numerous factors contribute to climate change, from fossil fuel use to the burning and clearing of tropical forests. Understanding the role companies can play in addressing this issue, Avon became one of the first beauty companies to prioritize a focus on the reduction of greenhouse gas (GHG) emissions through its operations. This commitment began in 1994 when Avon joined the U.S. Environmental Protection Agency's Green Lights program and retrofitted many U.S. manufacturing and distribution sites with energyefficient lighting.

Avon aspires to achieve zero emissions by using 100 percent clean energy, and on the journey to this goal the company is proud to have achieved a leadership position in our industry in absolute GHG emission reductions.

In 2004, Avon reported in its first Corporate Responsibility Report the goal to achieve a 25 percent reduction of GHG emissions per unit produced by 2012 (from 2002 levels) at global manufacturing facilities. The company exceeded this goal four years early in 2008 with a 31 percent reduction. Recognizing that it needs to continually cut GHG emissions, Avon established a new 10 percent reduction goal to be achieved by by the end of 2012, and 20 percent reduction by 2020. This long term goal represents a 40 percent overall reduction of GHG emissions from 2002 levels among the company's global manufacturing locations.

The Avon Green Building Promise contributes to the downward trend in energy and GHG emissions since it commits Avon to LEED (or local equivalent) certification for all new construction or major renovations. Facilities in Brazil, China, Colombia, US and UK are among those at “Gold” or higher levels.

Avon's GHG emission estimates are compiled by First Environment, an independent environmental management consultant that is a leader in the GHG field. First Environment is a signatory to the CERES principles (Coalition for Environmentally Responsible Economies) and also maintains ISO 14001 certification.

Greenhouse Gas Efforts

GHG Emission Per Unit (CO2e) Global Manufacturing

Absolute reduction: Reducing overall total GHG emissions by a specified quantity over a specific time period regardless of the level of production or other factors. Intensity reduction: Reducing the ratio of emissions relative to a unit of production over time, reflecting greater efficiency in the production process.

In 2011 compared to 2005 baseline levels, Avon achieved 26 percent greenhouse gas emissions reduction per million units produced at global manufacturing locations, exceeding the 25 percent target. However, there was a slight increase (7.4 percent) from 2010 to 2011 due to several factors, including weather impacts and unit production changes in some locations.

Absolute GHG Emissions (CO2e) Global Operations

Avon achieved an absolute 13.7 percent reduction in greenhouse gas per metric tonnes in 2011 from 2005 baseline levels at global manufacturing and distribution center locations.

Challenges and Opportunities

Absolute Greenhouse Gas Emissions (GHG) from global manufacturing and branch operations have been reduced by 13.7 percent from 2005 baseline levels, which represents a leadership position in the industry. Using 2005 as the baseline year, emissions on a per unit basis saw a 26 percent reduction, exceeding Avon’s target of 25 percent reduction per unit. However, the per unit emissions increased slightly from 2010 to 2011, and Avon will continue to drive further reductions towards longer term goals for both absolute and per unit set for 2020.

Energy Efforts

Understanding that 75 percent of total energy usage in the world today is from buildings, Avon continues to focus on energy conservation best practices and implementation of cost saving projects to drive an overall reduction. Total energy consumption at Avon’s manufacturing facilities in 2011 decreased by 23,460 MM BTU from 2010 levels – 995,327 MM BTU to 971,867 MM BTU – representing a 2.4 percent reduction year over year as well

as an 11 percent decrease from 2005 levels. While per unit energy increased 2 percent in 2011 over 2010, the per unit energy has decreased 20 percent from the 2005 baseline.

Total Energy (MM BTU's)

After a significant reduction in 2008, Avon's total energy use decreased by 2.4 percent on an absolute basis in 2011 compared to 2010 and a total of 11 percent reduction from the 2005 baseline.

Moving Forward

Avon will continue to focus on energy efficiency as a critical measure for achieving the company's 10year GHG emissions reduction strategy. New facilities that are LEED certified help drive this goal, and for existing facilities the company has implemented energy best practices under the leadership of engineering and environmental teams worldwide. These teams continue to seek or develop additional opportunities, such as renewable and clean energy sources; replacing older, less energyefficient equipment; and utilizing energy meters to better understand consumption patterns and identify new reduction opportunities.

Material Use, Waste Reduction & Recycling Practices With more than 50 manufacturing and distribution centers worldwide, minimizing material use and recycling continue to be a strong focus for Avon as it strives to reduce waste along the production cycle. This reduction has a meaningful cost savings as well as reduced environmental impact.

In 2011 Avon’s overall combined recycling rate for manufacturing and distribution centers was 81.1 percent. Recycling rates in manufacturing has been tracked since 2005, and for distribution centers since 2008.

Recycling increased 5.4 percent in global manufacturing locations in 2011, resulting in an overall recycling rate of 79.6 percent. This is an all time high for Avon manufacturing operations. The achievement is due to innovative ideas such as finding reuse options for sludge generated by wastewater treatment. Several facilities have recycling rates near 95 percent, and all sites are focused on achieving zero waste to landfill.

Recycling at our global distribution centers was also at an all time high in 2011, reaching 83 percent through a 3.8 percent increase from 2010.

Total waste generated is on a downward trend after a spike in 2007, and there will be continued focused attention to drive further reductions and achieve targets. The 2011 total waste dropped 7.5 percent from 2010 and is slightly (4 percent) above the 2005 baseline. Waste per unit dropped 3.5 percent year over year and is 6 percent below the baseline level. Within the downward trend, the slight increase in waste registered in the previous years 2010 over 2009 was partly due to an unforeseen increase in obsolete and expired inventory, which are categorized as waste.

Recycling Efficiency (% materials recycled) Global Manufacturing Locations

Avon’s overall recycling rate for 2011 increased by 5.4 percent to nearly 80 percent at the company’s global manufacturing sites, a historic high for the company.

Total Absolute Waste (in thousands of pounds) Global Manufacturing Locations

Total waste generation (absolute) in Avon's manufacturing facilities in 2011 dropped 7.5 percent from 2010.

Waste Index (Pounds/000 Units) Global Manufacturing Locations

Waste generated in 2011 on a poundsperunit basis in Avon's manufacturing facilities dropped 3.5 percent from 2010.

Challenges and Opportunities

Even though Avon's 81.1 percent recycling rate is the highest ever, continued focus will help drive towards the goal of zero waste to landfill. Avon will also continue to work towards a target of 30 percent reduction in waste per unit against the 2005 level, which is one KPI that continues to fall short. While in 2011 Avon only reached 6 percent below baseline, and a year over year drop of just 3.5 percent, the current level is a meaningful reduction from the 20062008 levels.

Moving Forward

Avon will continue to explore new ways to increase recycling at its facilities and reduce the amount of waste generated. Initiatives the company is currently working on include:

l Exploring options for reusing corrugated cardboard

l Offering customer discounts on excess products

l Donating product surplus to nonprofit organizations and charities

l Moving excess saleable products to countries with an approved waste disposal solution

Avon is committed to a 10 percent poundsperunit waste reduction at its global manufacturing facilities by 2012, which supports the company's longterm goal of 40 percent waste reduction by 2020. Avon aims to increase recycling in manufacturing, distribution and administrative facilities by five percent by 2012, and is striving toward a zero wastetolandfill goal by 2020.

Brazil Solid Waste Law

In January 2011, Brazil passed a solid waste law modeled after packaging waste legislation implemented in the European Union more than 10 years ago. The law requires producers to provide mechanisms for recovering product packaging from consumers after use. The intent is to capture more recyclable waste and prevent this waste from going to landfills. As such, companies pay an annual fee for a thirdparty vendor to collect and recycle packaging waste. Avon Brazil is collaborating with other cosmetic companies and local trade organizations to explore and develop operational solutions to achieve compliance with this new legislation. The company is also gleaning best practices from Avon facilities in other regions where this legislation is already in place.

Water Use Reduction As issues around water scarcity remain on the sustainability forefront, Avon continues to take steps to use water wisely and conserve this precious resource, especially in water stressed parts of the world. From 2005 through 2011, Avon has made significant water reductions throughout the company's operations, reducing water use by a total of 146 million gallons in manufacturing facilities and 5 million gallons in distribution centers.

Some examples of Avon's annualized global efforts to reduce water consumption in 20102011 are included below. These initiatives reflect the commitment of the Avon Green Building Promise to minimize the environmental impacts of the company's facilities by achieving LEED certification in all new construction and major renovations.

l The Zanesville, Ohio (U.S.) Distribution Center saves about 5.5 million gallons a year due to green design elements such as rainwater harvesting and watersaving plumbing fixtures.

l By using aircooling compressors, operations in Canada conserve 5 million gallons a year.

l Operations in Poland conserve 14 million gallons each year by optimizing cleaning processes.

l The manufacturing facility in Morton Grove, Illinois (U.S.) saves some 12 million gallons annually by monitoring consumption, increasing employee awareness and using more grey water, which is wastewater that can be recycled onsite for uses such as landscaping.

l The LEED Gold certified U.S. Headquarters in New York City includes high efficiency faucets and toilets, 35 percent more efficient than standard, as well as Energy Star dishwashers for silverware and mugs used in place of disposable utensils.

In 2011, Avon reduced overall water usage by 7.5 percent in manufacturing operations in absolute terms and 3.8 percent on a per unit basis from 2010 levels. Against the 2005 baseline, total water consumed has been reduced 27 percent on an absolute basis and reduced 34 percent on a per unit basis – exceeding Avon’s target of 20 percent reduction.

Water Consumption Index (Gallons/000's Units) Global Manufacturing Locations

In 2011, Avon’s consumption decreased by 3.8 percent at its manufacturing locations per unit from 2010 levels.

Total Water Consumption Global Manufacturing Facilities

In 2011, Avon’s total water consumption was reduced 7.5 percent from 2010 levels.

Moving forward

As a multinational company, Avon realizes its impact on the global community and continues to implement projects to achieve zero water waste discharge in waterscarce countries where the company operates, particularly in India, China and Brazil. The Avon manufacturing facility in China has been designated a National Environmental Protection Operative Technology Demonstration Project and has received an Environmental Protection Award for waste water expansion project from the Guangdong Environmental Protection Industry Association. Also in China, the new Avon R&D Center in Shanghai achieved LEED Platinum certification.

Avon has also set a shortterm target to reduce water consumption by 7 percent per unit by the close of 2012 as part of the company's longterm goal to reduce water intensity by 40 percent by 2020.

Avon Green Building Promise As part of the company's efforts to manage its environmental impacts, Avon strongly supports sustainable building practices. The company announced its Green Building Promise to formalize a longheld commitment to design and build all new major buildings in accordance with the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ certification standards. The Green Promise also applies to extensive renovations to existing facilities.

The LEED certification system promotes a comprehensive, holistic approach to sustainability, focusing on energy savings, water efficiency, carbon emissions reduction, and stewardship of natural resources. Every new Avon facility will meet "Green" LEED certification standards, and the company will target higher certification, such as "Gold," when possible. In countries where LEED certification does not exist, construction and renovation projects will meet equivalent standards. Through this Promise, Avon aims to mitigate and reduce its environmental impacts worldwide.

In April 2010, Avon's new distribution center in Zanesville, Ohio (U.S.) achieved LEED Gold certification, which is the company's first facility to achieve LEED certification. Goldlevel features of the facility include:

l Energyefficient features, such as lighting, equipment and solar hot water, which reduce energy consumption by more than 35 percent, avoiding 6,900 metric tons of CO2 annually

l Water conservation measures, including reuse of grey water and efficient landscaping, which are expected to reduce water consumption by 60 percent

l Use of recycled building materials, as well as recycling materials and waste during construction

l Purchase of renewable energy credits to offset 50 percent of annual emissions from estimated power consumption

l Installation of systems to achieve facilitywide recycling rate of 8085 percent

In addition to the Zanesville facility, the company has achieved or is targeting LEED certification or equivalent local standards for the following facilities:

l Northampton, United Kingdom –administrative headquarters; new construction achieved BREEAM Very Good New Build and awarded the U.K. Green Apple Award

l Sao Paulo, Brazil – Avon's largest distribution center worldwide; new construction received LEED Gold

l Guarne, Colombia – distribution center; new construction received LEED Gold, the first ever in the country

l Shanghai, China – research & development center; received LEED Platinum for interiors

l New York, NY – U.S. headquarters; retrofit of 777 Third Avenue; awarded LEED Gold for interiors in April 2012

Click here to read a recent press release about Avon's green buildings.

Click here to read about the new Shanghai R&D center.

For a video on the Avon Green Building Promise, please click here.

Moving forward

Avon will continue to adhere to LEED building standards for all new facilities and to identify, evaluate and apply opportunities to incorporate environmental improvements into existing buildings where feasible.

"Avon's LEED Gold certification of the Zanesville facility demonstrates tremendous green building leadership. The urgency of USGBC's mission has challenged the industry to move faster and reach further than ever before, and this serves as a prime example with just how much we can accomplish."

Rick Fedrizzi, President, CEO & Founding Chair of U.S. Green Building Council (USGBC)

Managing Our Product Lifecycle Avon carefully manages the development, testing, manufacturing and distribution of its products. This ensures that its products meet the company's high standards for safety, and are of the quality consumers have come to expect. At various stages of the product lifecycle, Avon assesses whether environmental impacts exist and, if so, seeks solutions to address them.

Research & Development

Product & Ingredient Safety

Manufacturing & Supply Chain

Packaging

Distribution

End of Life

Research & Development Global Product Safety Standard | R&D Green Team | Animal Welfare

Though regulatory requirements differ among the more than 100 markets in which Avon conducts business, the company maintains a single Global Product Safety Standard for the nearly 1,000 beauty products developed in Avon labs every year. Through this commitment, Avon is proud of its safety record.

When evaluating a new cosmetic or personal care product, the scientists of Avon's Product Safety and Integrity team based in Suffern, N.Y. (U.S) conduct a thorough evaluation to determine safe and effective ingredients as well as the appropriate concentrations of every ingredient. The safety evaluation process includes the following steps:

l Every ingredient must undergo a careful review of available safety information, including scientific literature by toxicologists, before it is considered

for use in a product formulation.

l A review of ingredients used in previously approved products is also conducted. Avon maintains a comprehensive database of product information to assist with this process.

l All products are carefully formulated (e.g., through the use of effective preservative systems) to ensure that they present no risk of contamination by microorganisms. Each production batch must be tested and must meet stringent product specifications as part of routine manufacturing quality assurance procedures.

l Product safety substantiation includes assessment of skin compatibility, including determination that the final product formulation will not cause irritation.

l Clinical testing is conducted to confirm skin compatibility (mildness) and to substantiate product clinical claims.

l All finished products must comply with applicable cosmetic and/or other (e.g., drug) regulations, including those governing product composition (e.g., ingredient restrictions, volatile organic compound (VOC) content, etc.) and special packaging requirements (e.g., childresistant packaging for certain products.

l Avon scientists participate in industrywide and professional scientific organizations to access and evaluate the latest information to ensure the continued safe use of individual ingredients.

l In addition to internal safety reviews, Avon consults with independent, recognized experts in relevant scientific fields on specific questions related to ingredient and product safety.

To read about Avon's position on the Precautionary Principle.

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Environmental Considerations from the Start

Avon Global Product Safety Standard The safety of every beauty product must be substantiated prior to product introduction. We are vigilant in monitoring the safety of our beauty products in the hands of consumers. We will remove any ingredient from our cosmetic products should new evidence emerge that would no longer support its safe use.

During the research and development (R&D) phase, Avon also evaluates the potential environmental impacts of a product. In 2009, Avon formally assembled its "Green Team," a group of Associates representing various areas of R&D, to explore the evolving landscape of sustainability in the cosmetic industry.

An important first step was meeting with Avon suppliers to learn how each supplier defines "sustainability" for ingredients, and to identify which suppliers (selfdeclared) offer ingredients a reduced environmental impact. The Green Team compiled and maintains this database for use when exploring ingredient options

that may help further reduce the environmental impact of Avon products.

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Commitment to Animal Welfare

Avon is known for its leading efforts to eliminate animal testing. On June 2, 1989, Avon became the first major cosmetic company to announce a permanent end to animal testing on all Avonmanufactured products. Avon independently substantiates the safety of its products without any animal testing.

In place of animal testing, Avon's safety evaluation process uses data from invitro tests (nonanimal test tube/cell culture methods) or clinical tests (on human volunteers), and references any existing external animaltesting data. Avon does not require its suppliers to conduct animal testing on raw ingredients or finished products.

Avon has for decades worked to advance alternatives to animal testing, partnering with scientific organizations, other cosmetic companies and trade organizations such as the Personal Care Products Council.

l Avon's Vice President of Product Safety & Integrity serves on the Scientific Advisory Panel of the Institute of the In Vitro Sciences, Inc., a nonprofit research and testing organization dedicated to the advancement of in vitro (nonanimal) methods worldwide.

l Avon continues to support research into alternatives conducted by the Fund for the Replacement of Animals in Medical Experiments (FRAME) in the U.K., the Center for Alternatives to Animal Testing at Johns Hopkins University in the U.S., and the European Partnership for Alternative Approaches to Animal Testing.

l Avon recently became a Founding Sponsor of the American Society for Cellular Computational Toxicology.

Avon will conduct animal testing when required by law, at the request of government health or medical authorities, and only after having first attempted to persuade the requesting authority to accept nonanimal test data. In 2011, less than 0.3 percent of the more than 9,000 products sold by Avon were tested as required by law in a small handful of countries. Avon's goal is to get this number to zero.

Click here for more details

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Product and Ingredient Safety At Avon, product safety is the top priority and the company continually works to ensure that the ingredients used meet stringent internal safety standards and that the safety and efficacy claims regarding all of its beauty products are substantiated. Avon has a 125year track record of safety, as well as a 100%satisfaction guarantee for all products.

To ensure the safety of consumers, Avon has a policy in place for recalls, should a situation merit recalling products from the marketplace.

To read more about our commitment to worldwide product safety, please see the Research & Development and Manufacturing & Product Compliance pages.

Click here for position statements on some of the key ingredients and issues of importance to Avon and its stakeholders.

General product ingredient information can be found at cosmeticsinfo.org.

Manufacturing and Supply Chain Supplier Code of Conduct | Supplier Audits | Challenges and Opportunities | Moving forward

Avon utilizes both companyowned manufacturing facilities and thirdparty manufacturers (TPMs) to produce its products around the world. Avon's beauty products comprise 73 percent of its business, including cosmetics, fragrances and toiletries (CFT). In any year, on average, 85 percent of the company's beauty products are manufactured in Avonowned facilities, and the company works closely with TPMs to supply the remaining 15 percent.

The same universal standard of quality and safety applies to all Avon beauty products regardless of where they are manufactured or marketed, ensuring consumers worldwide receive the same product quality, safety and efficacy.

Avon's nonbeauty products, including jewelry, accessories, home, gift, toys, fitness and decorative products, represent approximately 27 percent of the company's total sales. These products are sourced through TPMs in 39 countries across five continents. The company has established a robust global safety and quality assurance policy and process specifically for these products, including stringent standards for raw materials.

"Nonbeauty" products must also comply with all local regulations and all internal safety requirements prior to production approval. Avon has also established an additional layer of guidelines for products that are intended for, or may be attractive to, children.

Supplier Code of Conduct

Avon's manufacturing processes are guided by a global Supplier Code of Conduct, that applies to both Avon facilities and thirdparty manufacturers. This helps the company ensure compliance with applicable local and federal laws and regulations, as well as alignment with the company's internal standards, regarding product safety and quality, environmental performance and human rights. Avon uses the Code to promote best practices and improvement throughout facilities where Avon merchandise is manufactured.

Avon is progressing along its journey to raise awareness and educate Associates within the company about the Supplier Code. Through 2011 approximately 40 percent of Supply Chain Associates have participated in formal training on the Code, with priority for those most directly responsible for relevant activities. Externally, Avon has conducted training sessions and seminars on the Code with 31 percent of factories, with a focus on the most critical partners. The company is developing a more formal web based training program for both Associates and Suppliers, and implementation of the web program is expected in early 2013.

Listed below are the key topics covered under Avon's Supplier Code of Conduct:

l Local laws and regulations

l Child labor

l Forced labor

l Working hours

l Fair wages and benefits

l Monitoring and compliance

l Health and safety

l Environmental management

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Supplier Audits

Auditing suppliers is a key element of managing the Supply Chain and working towards adherence to our standards. Avon collaborates with external compliance and auditing firms hired to provide expertise to the supplier auditing process, including communication with suppliers and the scheduling of audits and reaudits.

If an audit reveals an instance of noncompliance, Avon works with the supplier to develop a corrective action plan, with key action points and deadlines.

Suppliers are responsible for reviewing their corrective action reports and managing the improvement process under the guidance of Avon. In the event of noncompliance, reaudits are required to verify that corrective actions have been implemented accordingly. Avon prefers remediation rather than termination, which delivers improved conditions that offer a longerterm benefit to the supplier and the community. Avon will, however, discontinue a relationship with any supplier who fails to address critical issues, such as child labor, or fails to make the necessary

corrections requested within a specified, reasonable time period.

In 2008, Avon committed to ensuring every supplier receives a biannual audit, followed by reaudits as necessary. The company has made progress in this area and continues to build internal capacity to manage this program. To start, Avon identified and prioritized its "significant suppliers," based on a risk assessment associated with geography, production volume or product categories of the specific facility.

In 2011, Avon conducted 1,303 audits on contract manufacturers in 39 countries. This is nearly a 200% increase year over year, and represents 31 percent of TPMs, working towards a 2015 target of 95 percent. Health and Safety, Wages and Benefits, and Hours of Work remain the top three finding categories. High risk issues continue to diminish from initial audits through second follow up audits, dropping from 54 percent to 13 percent respectively, with ongoing remediation for remaining issues. In 2011 there were 19 “Denied Access” audits, of which ten suppliers were inactive, four were ultimately audited and approved, and five are still in process.

Supply Chain Audits Conducted 2011 (1,303 Total)

2011 Supply Chain Audits by Factory Location (1,303 Total)

2011 Supply Chain Audits by Avon Business Unit (1,303 Total)

2011 Supply Chain Audit Results (1,303 Total)

*In 2010 Avon acquired Silpada Designs, Inc., a direct seller of sterling silver jewelry with operations in the U.S., Canada and the UK.

2011 Supply Chain Audits Major NonConformities

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Challenges and Opportunities

Avon continues to make progress towards the audit goals, in particular 95 percent of contract manufacturers audited by 2015, but the company has not yet reached the target of biannual audits for all significant suppliers. Avon's broad product portfolio encompasses beauty and "nonbeauty" products, supported by thousands of vendors and suppliers in nearly 40 countries. The complexity and scope of the supplier base, and the array of TPMs, makes supply chain management both a top priority and a challenge.

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Moving forward

As the company continues to rely more on TPMs, Avon recognizes a need to evolve the supplier identification and selection process, as well as implement ongoing and consistent monitoring systems. Moving forward, the company aims to conduct audits for all priority supplier facilities by year end 2015.

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Packaging Avon uses a variety of plastic, glass, paper and cardboard packaging materials in its products. As a directselling company, Avon is in a fortunate position in that it requires less packaging than other companies that sell through traditional retail outlets. Nonetheless, the company aims to continually reduce the environmental impact of its packaging through strategic focus on its new product development process and ongoing business operation. Critical to any sustainable success story is the assurance of a high quality product. All sustainable initiatives are designed to ensure that the package is safe, suitable for consumer use, and meets all legal guidelines.

Avon addresses the environmental impact of packaging through two key areas: the amount of packaging, and the materials and processes required to produce the packaging. The company continuously evaluates opportunities to lightweight and/or

reduce the size of product packaging, reduce or eliminate secondary packaging (the cartons) and implement the use of alternative materials or measures, including the initiatives below:

l Carton elimination: Many products and product categories are offered without outer cartons, including lipsticks, body lotions, bath products, personal care products, such as deodorants, haircare and other categories.

l Carton production: Avon's North American carton suppliers have committed to using renewable energy sources to produce product cartons for Avon products. In 2008, approximately 48 percent of the cartons the company purchased depended on renewable energy.

l Packaging materials: Avon is continuously seeking the best options for packaging, and as one example, it has made a firm commitment to discontinue the use of PVC (Polyvinyl chloride) in beauty packaging across all markets by 2015.

l Refillable packaging: The mark™ brand has integrated refillable packaging solutions into five of their cosmetic compact products. Every time a consumer refills these packages, an average of 0.15 pounds of materials is saved. Avon is exploring other opportunities for refillable packageing.

l Lightweighting: Many plastic packaging and caps are "lightweighted" to reduce the overall amount of materials they contain while still providing the necessary strength. One example is the SkinSoSoft cap weight, which was reduced by three grams, saving almost 250,000 pounds of material each year worldwide.

l Scalability: Avon's new distribution facility in Zanesville, Ohio offers an expanded range of sizes of package options to allow for proper sizing of the shipper depending on the mix of products ordered.

Product Labeling

An important part of packaging for consumers is the product labeling. Consumers trust Avon's products to be safe and of high quality, and Avon aims to maintain that trust through accurate labeling in compliance with regulatory guidelines. To ensure that consumers know what ingredients are used in products, as well as how to safely use and dispose of them, Avon provides information for 100 percent of the beauty products both online at avon.com and directly on the packages.

Moving forward

Avon's package engineering team will continue to identify areas for further reductions in package material use, will work toward the incorporation of new, more environmentally sensitive materials and processes. The company also continues to explore additional lightweighting possibilities through conversion of plastic bottles from highdensity polyethylene (HDPE) resin to polyethylene (PET) resin for the right brands.

Distribution While Avon does not have the environmental footprint of a "brick and mortar" store, with approximately 6.5 million independent Sales Representatives in more than 100 countries, Avon ships hundreds of thousands of products every day. Over the past decade, Avon has introduced efficient shipping practices to reduce the environmental impacts of distributing its products, often partnering with transportation and logistics partners to leverage the best options and expertise.

The production and consumption of fuels is a significant contributor to global greenhouse gas emissions and other environmental impacts. Where possible, Avon urges its supply chain partners to minimize consumption of fuel and to focus on sourcing fuel with the lowest environmental impacts and embedded carbon footprints. By doing so, Avon increases fuel efficiency, decreases transport miles and related emissions, and reduces costs.

The company continues to evolve its service model to meet customers' needs and explore new ways to further reduce the environmental impacts of product distribution.

l Regional distribution: All Avon orders are shipped from regional distribution centers to reduce the distance that products travel to reach customers. This includes the newly constructed LEED certified (or equivalent) distribution centers in Zanesville, Ohio and Cabreuva, Brazil.

l Improved shipping options: In the United States, Avon's distribution system flags small orders those consisting of five or fewer smallsized items that have a specified cubic volume and packs them into padded envelopes, which use less material and require less shipping space than cartons used for larger items.

l Optimizing shipping logistics: Partnering with local shippers, Avon logistics teams, such as those in Brazil, have undertaken a comprehensive analysis of shipping routes, developed optimization plans and substantially reduced the mileage, fuel and time expended on shipments.

Avon distribution centers in Zanesville, Ohio (U.S.), Brazil and Colombia are all LEED Gold certified, reinforcing Avon's commitment to sustainable distribution.

Committed to Philanthropy Philanthropy is core to Avon's mission and an important part of the company's "DNA," brought to life by the unique ability to educate and mobilize people worldwide for issues that are of vital importance to women. The power of the individual and the collective power of Avon's worldwide network create an incredible philanthropic force, making Avon and the Avon Foundation for Women (Avon Products Foundation, Inc., referred to as the Avon Foundation), a U.S.based 501(c)

(3) public charity, global leaders in philanthropy.

This unique partnership of corporate philanthropy and a public charity is focused on the core mission areas of breast cancer and domestic violence, and data shows why these remain top issues: every three minutes a woman is diagnosed with breast cancer, and nearly one billion women around the globe will be affected by domestic and gender violence. Avon and the Avon Foundation work to eradicate breast cancer and domestic violence by raising funds and awareness through two signature global programs: the Avon Breast Cancer Crusade , launched in 1992, and Speak Out Against Domestic Violence, launched in 2004.

As a global citizen, Avon also responds to major natural disasters and emergencies in areas where the company has a presence. In many instances, the core mission is combined with the relief program for meaningful impact, such as the introduction of breast cancer services in China and support for domestic violence services in New Orleans after natural disasters struck.

In 2007, awardwinning actress Reese Witherspoon became honorary cochair of the Avon Foundation, and she continues to participate in many events, awareness campaigns and educational programs worldwide in support of the Avon Breast Cancer Crusade and Speak Out Against Domestic Violence.

Avon Foundation for Women

Programs are implemented locally, in more than 50 countries, but driving the strategy and mission of global philanthropy is the Avon Foundation for Women, a 501(c)(3) public charity. Founded in 1955 with the goal of improving women's lives, the Avon Foundation was initially focused on women's economic and educational empowerment, launching with a scholarship of $400. Today, the Avon Foundation is the largest corporateaffiliated philanthropy focused on women's issues globally, awarding tens of millions of dollars a year in grants through a rigorous selection process. Click here to learn more.

Powerful Fundraising

Through the end of 2010, Avon global philanthropy had raised and donated more than $800 million through

Hello Green Tomorrow

In 2010, Avon Products, Inc. applied its unique capacity to drive education, mobilization and fundraising to a new cause: sustainability, specifically the mission to help end deforestation. The program, called Hello Green Tomorrow, is a corporate initiative in more than 50 countries that in its first two years generated over $3.5 million to help restore critically endangered tropical forests. While Hello Green Tomorrow functions independently of the Avon Foundation, it leverages the same power of mobilization to create a “global green army.”

programs in over 50 countries, with the majority raised since the 1992 launch of the Avon Breast Cancer Crusade. Of this total, $73 million was raised in 2010 alone, including $24 million contributed by Avon Products, Inc. The goal is to reach $1 billion in total funds donated by 2013.

In a commitment to transparency, details of its fundraising and grantmaking can be found on the Avon Foundation website for its U.S. philanthropy. Funds are raised in the U.S. through the sale of unique products by Avon Sales Representatives, with 100 percent of net proceeds donated to the Avon Foundation, as well as through events such as the Avon Walk for Breast Cancer, and the Avon Walk Around the World for Breast Cancer series and Walk the Course Against Domestic Violence and the Avon Foundation Awards Gala. These events attract tens of thousands of participants each year, and funds raised are announced and grants awarded at the close of each event.

As an example, the Avon Walk for Breast Cancer series in the U.S. and Avon Walks Around The World For Breast Cancer in more than 55 countries have attracted more than 1.5 million participants who have raised over $435 Million from 2003 through 2011.

The Avon Foundation Awards Gala which takes place in New York City each fall, raises $2 million. Click here for the 2010 Avon Foundation Gala video.

In addition to substantial public fundraising, Avon Products, Inc. provides inkind and financial support to the operations of the Avon Foundation and to events such as the Avon Walk for Breast Cancer and the annual Avon Foundation Gala. Detailed financial reports showing Avon Products' donations to the Avon Foundation, funds raised, grants awarded

and more details, can be found on the Avon Foundation financials page.

Read more about how Avon empowers its independent Sales Representatives to make an impact in causes most important to women here, and click here for a timeline of key events and achievements of Avon philanthropy.

Avon Breast Cancer Crusade Avon Walk for Breast Cancer | Avon Walk Around the World | Fundraising Products | Forums, Summits and Congress | Love/Avon Army of Women

In 1992, Avon launched the Avon Breast Cancer Crusade, and today Avon is proudly the largest corporate supporter of the breast cancer cause, with more than $700 million raised and awarded globally through the end of 2010. Avon is proud to build awareness and raise funds through global mobilization created by a network of fundraising events produced by Avon and the Avon Foundation, and sales of

unique pink ribbon products by Avon Sales Representatives in more than 50 countries. Avon donates proceeds from the fundraising Pink Ribbon product sales, ensuring the maximum amount supports the cause, and through 2010 more than $265 million in net proceeds has been raised globally through the sale of Avon fundraising Pink Ribbon products.

To drive awareness and education, all Avon pink ribbon products sold in the U.S. come with an educational Breast Health Resource Guide brochure, which is also available online at no cost.

The Avon Breast Cancer Crusade goes beyond grantmaking. It has built a network of programs that cover the full spectrum of the breast cancer cause from access to care to finding a cure with a special focus on helping the medically underserved, including the disadvantaged, elderly, minorities and those without adequate insurance. Grants for research focus on the cause of breast cancer and ways to prevent it.

The Avon Foundation partners with hundreds of experts and organizations to maximize the impact of the funds raised. Grants are awarded through a competitive process for research that may someday lead to prevention or a cure; outreach and education; screening and diagnostics for early detection; improved access to quality care for all; and support services. The hundreds of grant recipients include a wide range of organizations and institutions, including local nonprofit breast cancer programs, which receive funds plus technical support from the

Avon Breast Health Outreach Program, and leading cancer centers that drive research and patient care. The Avon Foundation has created and funded eight Avon Foundation Breast Centers in the U.S. Additional countries such as Brazil and the Philippines have created comprehensive breast cancer

care at leading medical centers.

As just one metric of impact, through the end of 2010, more than 14 million women around the world had received free breast cancer screenings as a result of Avon's breast cancer programs, helping improve rates of early detection and survival.

The Avon Breast Cancer Crusade includes a variety of events and programs, highlighted below:

Avon Walk for Breast Cancer

The Avon Walk for Breast Cancer series in the U.S. is the Avon Foundation's largest annual fundraising initiative. The Avon Walks are currently held in nine cities annually from April to October, with participants spending a weekend walking either 26 or 39 miles (a marathon or marathon and a half).

Each walker raises a minimum of $1800, and in 2010, more than 21,000 people participated as walkers and crew, and the series raised $56 million. To ensure immediate impact, grants are presented to local and national organizations at the closing ceremony of each walk. The grants are also announced in press materials and online. Avon partners, such as Reese Witherspoon, Fergie, Patrick Dempsey and Suze Orman, have lent their support by appearing at the Avon Walks.

Click here to see the video of Fergie at 2010 Avon Walk for Breast Cancer Santa Barbara, California

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Avon Walk Around the World for Breast Cancer

The 2005 launch of the Walk Around the World for Breast Cancer series extended Avon's breast cancer mobilization efforts on a global level as part of the celebration of the 50th anniversary of the Avon Foundation. These events bring together hundreds of thousands of people in more than 50 countries around the world to raise money and build awareness, with the funds awarded in the local country to address critical needs, from mammography equipment to cuttingedge research and patient care. In many countries, the Avon Walks bring together many generations and break cultural and social barriers that previously stood as obstacles to women and men taking a public

stand against breast cancer.

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Breast Cancer Crusade Pink Ribbon Fundraising Products

Avon Sales Representatives around the world sell specially designed and affordably priced "Pink Ribbon" products, such as jewelry, hats, and other items to provide the opportunity for everyone to participate in the fight against breast cancer. The items are affordably priced from about $2.00 to around $10. All proceeds are awarded to organizations and institutions to help eradicate breast cancer, with grants made within the country in which the funds are raised. Through 2010, these sales generated $265 million. To drive breast cancer education, all fundraising products in the U.S. come with an educational Breast Health Resource Guide, with important breast cancer information and local resources for help, and this brochure is also available online.

Avon Foundation Grants for Breast Cancer in 2010 ($35 million total)

Fundraising Through Avon Breast Cancer Crusade Programs

Avon Walk for Breast Cancer series in the U.S. raised $55 million in 2010, totaling $380 million since launching in 2003.

Avon Walk around the World for Breast Cancer fundraising totaled $10 million todate, and approximately 1 million people have participated.

Global Sales of Avon Breast Cancer Crusade pink ribbon fundraising products totaled $26 million in 2010, $265 million todate.

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Breast Cancer Forums, Summits and Congress

The Avon Foundation annually convenes experts from its funded organizations. These events foster innovation, encourage collaboration and share best practices in the areas of breast cancer research, prevention strategies and patient services, emphasizing its unique collaborative approach to grant making. The Breast Cancer Forums and Summits alternate each year between convening representatives from communitybased programs that provide outreach, education and early detection, and those from cancer centers engaged in scientific research and treatment.

The 2010 Forum focused on issues of access to highquality breast health care for all, and brought together more than 275 community health educators, patient navigators, nurses and physicians from all 50 states. Click here to learn more about the 2010 Avon Foundation Breast Cancer Forum.

The Avon Breast Cancer Global Congress, produced in fall 2011 with the U.S. Department of State, builds on the first collaborative breast cancer congress in 2008. Over 150 attendees from 37 countries include breast cancer advocates, NGOs, health policy leaders, physicians and scientists.

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The Love/Avon Army of Women

The Avon Foundation and the Dr. Susan Love Research Foundation partnered to create the Love/Avon Army of Women in 2008. The goal is to accelerate breast cancer prevention research by enlisting women both survivors and women who have never had breast cancer in research studies in place of traditional research using animals or in vitro methods. As of the end of 2010, the Army of Women had recruited 340,000 members, launched 35 research studies, and linked more than 43,000 Army of Women volunteers to research projects.

Avon Speak Out Against Domestic Violence Nearly one billion women worldwide are affected by domestic and partner violence – one in three women around the world, and these annual events are recapped in the Avon Empowerment Booklet. Men can be victims of partner violence, too, but the vast majority of those affected are women, making this an issue of vital importance to all families worldwide.

To help end this devastating cycle, Avon launched Speak Out Against Domestic Violence in 2004 to raise awareness and funds to develop and implement prevention and directservice programs for victims of domestic violence. Now expanded to nearly 50 countries, the company also empowers its network of Associates, Representatives and customers to get involved through events, fundraising initiatives and advocacy efforts aimed at reducing and preventing domestic violence. Resources available in the U.S. to support these efforts include the Domestic Violence & Dating Abuse Resource Guide, offered at no charge online, and various educational videos created by the Avon Foundation and partner organizations and available on the Avon Foundation website.

In the U.S., the Avon mark. brand launched the m.powerment by mark. program in 2008, dedicated to breaking the cycle of dating abuse and partner violence for young women. All funds raised through the sale of m.powerment products are awarded as grants to programs and organizations that are working to break this cycle. Since 2008 almost $1 million has been raised and grant recipients include a network of some two dozen colleges nationwide for programs that will provide preventative training and education.

Expanding the Mission Globally

Avon Speak Out Against Domestic Violence programs in nearly 50 countries worldwide have included an awardwinning public service campaign and domestic violence short film competition in Mexico; educational events in Chile; a national petition presented to Parliament in the U.K.; two weeks of activities in Poland, led by a well known journalist; and an education campaign in Brazil, which received an award from the Brazilian government.

Expanding the mission beyond helping the victims to the goal of prevention, Avon has developed partnerships with key expert organizations, such as the U.S. Department of State, UNIFEM, Vital Voices and the International Association of Women Judges, to seek collaborative solutions and drive change to help end violence.

Speak Out and Empowerment Fundraising Products

Fundraising and awareness are achieved through the sale of unique Avon Speak Out Against Domestic Violence and "Empowerment" fundraising products, including bracelets and necklaces that feature the infinity symbol, representing unlimited possibilities for all women, once they are free from violence. The Avon mark. brand also offers special m.powerment fundraising products to support the cause, focused on women 1824 years old. In the U.S., all Avon fundraising products come with important information on the issue of domestic violence and resources for those seeking help. Sales of Speak Out and Empowerment fundraising products in the U.S. totaled almost $3 million in 2010 and $10 million todate.

Walk the Course Against Domestic Violence

In the U.S., the Avon Foundation's annual Walk the Course Against Domestic Violence series was held in 2009 2011, in collaboration with the (Professional Golf Association) PGA TOUR Wives Association to raise funds and awareness. The event series included a unique fundraising walk on some of the most prestigious golf courses in the US.

Avon Foundation Grants for Domestic Violence and Violence Against Women in 2010 ($5.2 million total)

Global Partnerships

Avon launched a multiplatform initiative in honor of International Women's Day March 2007, and these annual events are recapped in the Avon Empowerment Booklet. Avon cohosted its first Global Summit for a Better Tomorrow at the United Nations, focused on empowering women, in partnership with UNIFEM, UNDESA, and The Virtue Foundation. The 2008 Global Summit, also held at the UN, which focused on ending violence against women and included a $1 million commitment from the Avon Foundation to the UN Trust Fund to End Violence Against Women. In this same year, Avon also supported a Senior Roundtable for Women & Justice at the U.S. Department of State for women judges from around the world, to find global solutions to improve women's safety and access to justice.

Reese Witherspoon, First Lady Michelle Obama, Secretary of State Hillary Clinton and Avon's Andrea Jung at the

Global Summit

In 2009, a $1.5 million grant by the Avon Foundation for Women launched the Avon Global Center for Women and Justice at Cornell Law School, focused on working with judges, legal professionals, governmental and nongovernmental organizations to improve access to justice in an effort to eliminate violence against women and girls. Avon also made a new commitment of $250,000 for the UN Trust Fund to End Violence against Women.

In 2010, The Avon Foundation for Women, Vital Voices, and the U.S. State Department launched The Global Partnership to End Violence Against Women, an innovative publicprivate partnership to foster the creation of crosssector collaborations to reduce violence against women. Avon and the Avon Foundation for Women donated $1.2 million to Vital Voices to bring together 15 country delegations from diverse sectors in a global forum to create and share innovative solutions. The Avon Foundation also donated $500,000 to the U.S. Department of State Secretary's Fund for Global Women's Leadership for grants to NGOs around the world working on domestic and gender violence, including organizations from the 15 countries represented in the Global Partnership.

Emergency and Disaster Relief In times of major natural disasters and emergencies, Avon and the Avon Foundation for Women extend their commitment to women by helping them and assisting their communities with support for relief and recovery efforts. A special focus is placed on the mission areas of breast cancer and domestic violence as well as helping women and girls. Funding for the relief efforts include direct donations from Avon Products, Inc., as well as fundraising through global mobilization of Avon's network of Sales Representatives.

From 2001 through 2010, Avon and the Avon Foundation raised and donated nearly $19 million to areas affected by natural disaster or other emergencies, starting with response to the terrorist attacks in New York City in 2001 and including events such as Hurricane Katrina and the earthquakes in China and Haiti. In 2010, Avon Products, Inc. contributed $2.1 million to the Avon Foundation to support disaster and emergency efforts, as well as inkind donations of products, to aid victims of the earthquake in Haiti.

For the Haiti relief efforts, Avon Products Inc. made an initial $1 million donation to the Avon Foundation to support relief efforts, divided between the American Red Cross and Doctors Without Borders.

Avon North American Sales Representatives raised more than $1 million more through sales of the popular SkinSoSoft products and online direct donations. Four grants were made with the funds raised, including funding for Partners in Health to support the development of a breast cancer program and MADRE to

launch a new women's center for victims of violence.

Creating Impact Around the World Avon and the Avon Foundation for Women provide its global community of Representatives, Associates and customers in more that 50 countries with information, tools and resources to help them mobilize their networks to support causes they care about. The result is a global scope with tangible impact at the local level, often through partnerships, programming and advocacy efforts that support the global mission to help eradicate breast cancer and violence against women.

Creating Greater Impact: Highlights from Selected Avon Markets

Africa and Middle East

Avon South Africa supports UNIFEM's "Safer Cities" program in South Africa, and aims to reduce and prevent genderbased violence by developing urban spaces that promote the rights of women and advocating for public policies to recognize these rights. The Avon South Africa iThemba Crusade of Hope program partnered with Breast Health Foundation and Curves to launch the first Mobile Breast Health Education Unit in the Western Cape in 2010.

Avon Saudi Arabia partnered with Zahra Breast Cancer Association to organize the first female Avon Breast Cancer Walk in Saudi Arabia in 2010. More than 6,000 women walked proudly together to raise awareness for the breast cancer cause. To help raise awareness, Avon Saudi Arabia Associates and friends created the world's largest human pink ribbon.

Asia

Avon India reached more than 1.5 million people with a multipart campaign in 2010 that was designed to chip away at the lack of awareness, which is believed to be the leading cause of death in breast cancer cases in India. Through the sale of pink ribbon products, Avon India raised more than $80,000 from 2008 to 2010, and the funds have been donated to the Cancer Patients Aid Association.

Avon Philippines partners with the Women's Crisis Center to support a domestic violence hotline. Avon's contributions have resulted in a 30 percent increase in phone counseling sessions and have built the capacity of WCC to provide legal and medical referrals and temporary shelter for victims.

Avon Taiwan offers free mammograms and breast cancerrelated educational activities at Avon Service Centers nationwide to raise awareness about the disease and educate women about the importance of routine examinations.

Europe

Avon Croatia conducts a mobile mammography tour each year. In the first year, 77 percent of the 850 women examined received a mammogram for the first time. In 2011, the Avon Walk for Life launched in the capital city of Zagreb to raise awareness and funds for breast cancer.

Avon Hungary hosted its 8th annual Walk for Life in 2010 in the heart of Budapest and broke previous attendance records, with 10,000 walkers participating, including more than 3,000 Avon Sales Leaders and Representatives. The walk was followed by a concert and family programs, and the event raised a total of U.S. $270,000 for the Hungarian Cancer League.

Avon Serbia conducts a "We Need Each Other" campaign and provides vouchers good for a free breast cancer screening for two people, so women can go for a screening with a friend, sister or mother.

Avon Slovenia collaborated with Women's Counseling Service to launch a mobile counseling service, helping counselors provide education and support to victims of domestic violence in remote areas of the country.

Avon Spain partners with Fundacion Mujer to develop educational materials to teach genderequality in schools, and also supports Florencia Foundation, a local shelter for women and children who are victims of domestic violence.

Avon U.K. supports several annual events, including the Crazy Hats walk, which reached its first £1 million in 2010, including a donation from Avon of £20,000 to purchase a new van to support breast cancer patients in the local community of Northampton, where Avon is based. Avon UK Sales Representatives also hosted two Crocus Walks in aid of longstanding charity partner Breakthrough Breast Cancer. In 2010, Avon UK associates and their partner, Refuge, presented to members of Parliament a petition for increased support for domestic

violence services.

Latin America

Avon Brazil received government recognition for its support of the groundbreaking Maria da Penha Act, which classifies domestic violence as a human rights violation, provides a new measure of protection for women in danger and requires the active participation of law enforcement and justice officials. In the breast cancer area, Avon Brazil has also donated more than $5 million to Barretos Cancer hospital, beginning with funds for the hospital's first mobile mammography unit in 2002, and in 2010 more than $1 million was donated to help support the Avon Institute Breast Cancer Prevention Center.

Avon Chile financed a 2010 citizens' action program "Young Leaders For Nonviolence Against Women," developed by Centro de Desarrollo para la Mujer Domos (Women's Development Center, DOMOS) through the first competitive grant awarded in Chile by the Avon Speak Out Against Domestic Violence/UNIFEM program.

Avon Mexico joined forces with the Expresion en Corto International Film Festival to host the Speak Out Against Domestic Violence Short Film Contest. In 2009 and 2010, the competition launched at the Cannes Film Festival, attracting 200+ films from more than 30 countries.

Timeline of Selected Highlights of Avon Philanthropy 1886 Avon is founded on the belief of advancing women.

1955 Avon creates the Avon Products Foundation, Inc. (later named the Avon Foundation for Women) to advance the mission of improving the lives of women and their families. The first grant is a single $400 scholarship.

1992 The Avon Breast Cancer Crusade launches in the United Kingdom with the sale of a pink ribbon pin.

1993 The Avon Breast Cancer Crusade launches in the United States and starts its global expansion, utilizing fundraising products and educational literature.

The Crusade also launches in Canada and Taiwan.

1994 Avon Breast Cancer Crusade launches in Mexico and Venezuela.

1995 Avon Breast Cancer Crusade launches in Guatemala, Italy and Spain.

1996 Avon Breast Cancer Crusade launches in El Salvador, Panama and Turkey.

1997 Avon Breast Cancer Crusade launches in Chile, Czech Republic and Honduras.

1998 The first Avon multiday breast cancer fundraising walk debuts in southern California and raises $4 million. Avon Breast Cancer Crusade launches in Argentina, Estonia, Hungary, Ireland, Poland, Slovakia and Thailand.

1999 Avon Foundation launches its first annual Breast Cancer Forum to drive collaboration among institutions funded by Foundation grants.

Avon Breast Cancer Crusade launches in Australia, Brazil, Ecuador.

2000 Avon Breast Cancer Crusade launches in the Dominican Republic.

2001 First globally coordinated fundraising effort, Kiss Goodbye to Breast Cancer, launches in 50 countries.

The first disaster/emergency program is launched in response to the terrorist attacks of September 11 with the sale of a pin; in three months more than $7 million is raised for the families of the victims.

The first annual Avon Foundation Fundraising Gala takes place in New York City just weeks after the terrorist attacks, to continue the Kiss Goodbye to Breast Cancer commitment.

Avon Breast Cancer Crusade launches in China, Nicaragua, Puerto Rico, South Africa and Ukraine.

2002 Avon Breast Cancer Crusade launches in Bolivia, France, Germany, Greece, Latvia, Lithuania, Philippines, Portugal, Romania, Russia and the United Arab Emirates

2003 The Avon Walk for Breast Cancer series launches in the U.S. Avon Breast Cancer Crusade launches in Bulgaria and Peru

2004 The Speak Out Against Domestic Violence program launches with the support of actress Salma Hayek in the US and Mexico.

The Avon Foundation awards $550,000 for relief efforts in response to the Tsunami in Asia and sales of a fundraising pin bring the total to $1 million.

Avon Breast Cancer Crusade launches in Croatia, Serbia and Slovenia.

2005 The Avon Foundation celebrates its 50th anniversary with the launch of the Walk Around the World for Breast Cancer series, expanding and coordinating Avon’s breast cancer events and mobilization globally.

In response to Hurricane Katrina, Avon and the Avon Foundation donate more than $1 million and 20 truckloads of products. Sales of the fundraising keychain raises $758,000 (of the total $1 million) to help breast cancer and domestic violence victims in the affected area.

Avon Breast Cancer Crusade launches in Colombia and the Former Yugoslavian Republic of Macedonia.

Avon Speak Out Against Domestic Violence launches in Puerto Rico.

2006 The Need for Speed Against Domestic Violence Relay Series is launched to raise funds and awareness for domestic violence.

Avon Breast Cancer Crusade launches in Kazakhstan.

Avon Speak Out Against Domestic Violence launches in Dominican Republic.

2007 Awardwinning actress Reese Witherspoon is named Honorary Chair of the Avon Foundation.

Avon cohosts its first Global Summit for a Better Tomorrow to celebrate International Women's Day at the United Nations with UNIFEM, UNDESA, and The Virtue Foundation, to advance women's empowerment.

Avon Breast Cancer Crusade launches in Bosnia and Herzegovina, Finland and Montenegro.

Avon Speak Out Against Domestic Violence launches in Honduras.

2008 Avon hosts its second Global Summit for A Better Tomorrow at the UN for International Women's Day, and the Avon Foundation commits $1 million to the UN Trust Fund to End Violence against Women.

Avon supports a Senior Roundtable for Women & Justice at the U.S. State Department, with participants from around the world, to find global solutions that address women's safety and access to justice.

The Avon Foundation partners with the U.S. State Department to pioneer an expert symposium:

"Breast Cancer Global Congress: Forming Alliances to Combat the Growing Global Burden of Breast Cancer."

Avon Foundation and the Dr. Susan Love Research Foundation create the Love/Avon Army of Women initiative to advance breast cancer prevention research, and the program receives the "Best Health Charity" award from PETA.

Avon Breast Cancer Crusade launches in Egypt and India.

Avon Speak Out Against Domestic Violence launches in Argentina, Australia, Bolivia, Bosnia and Herzegovina, Brazil, Canada, Chile, China, Colombia, Czech Republic, Ecuador, El Salvador, Estonia, France, Germany, Greece, Honduras, Hungary, Italy, Kazakhstan, Lithuania, Montenegro, Nicaragua, Panama, Portugal, Romania, Serbia, Slovakia, Slovenia, South Africa, Spain, Taiwan, Turkey and the UK.

2009 Avon moves its annual celebration of International Women's Day to Washington, DC and launches the Global Forum for Women and Justice to advance solutions to help end violence against women.

Avon Global Center for Women and Justice at Cornell Law School launches with a $1.5 million grant from the Avon Foundation for Women.

Avon and the PGA Tour Wives Association in the U.S. partner to create the Walk the Course Against Domestic Violence fundraising event.

The Avon Foundation is retitled the "Avon Foundation for Women" to better reflect its mission to improve the lives of women.

Avon launches Hello Green Tomorrow internally, an education and engagement program for Associates worldwide to drive green processes and behavior throughout the business.

Avon Speak Out Against Domestic Violence launches in Croatia, Finland, Former Yugoslavian Republic of Macedonia, Guatemala, Latvia, Malaysia, Peru, Philippines, Poland, Thailand, Ukraine and Venezuela

2010 Avon launches Hello Green Tomorrow externally, a fundraising and mobilization campaign in more than 50 countries to empower a global women’s environmental movement to help end deforestation, kicked off with an initial donation from Avon of $1 million to The Nature Conservancy to help restore the Atlantic Rainforest.

The Avon Foundation for Women, Vital Voices, and the U.S. State Department collaborate to create The Global Partnership to End Violence Against Women, launched in Washington, D.C.

The Avon Foundation held the Breast Cancer Forum in February.

The annual Avon Foundation Awards Gala is hosted by Reese Witherspoon, with a special musical performance by Melissa Etheridge and presenters including Patrick and Jillian Dempsey and Christy Turlington Burns. $2.2 million is raised.

Avon Breast Cancer Crusade launches in Saudi Arabia.

Avon Speak Out Against Domestic Violence launches in Bulgaria and Russia.

Grant Making The Avon Foundation for Women awarded a total of $43.6 million for grants and programs in 2010 to advance breast cancer research and access to care programs; fund domestic violence education, direct service and prevention programs; and fund emergency and disaster relief. Grants in the mission areas of breast cancer and domestic violence are awarded through a selective application process guided by external experts. The Scientific Advisory Board of the Avon Breast Cancer Crusade provides assessments and recommendations on breast cancer grant proposals while the Avon Breast Health Outreach Program manages the grants for communitybased education and outreach efforts with advice from a diverse panel of community experts. Grants for the Speak Out Against Domestic Violence program are reviewed and assessed by the Domestic Violence Advisory Committee.

Strategic guidance for the Avon Foundation, fiduciary responsibility and final decisions on grant making are among the responsibilities of the Avon Foundation Board of Directors.

Current and past independent financial audits, IRS forms 990, and complete lists of grants for the Avon Foundation are available on the Avon Foundation website.

To maximize the impact of funds and encourage collaboration among its grantees, the Avon Foundation for Women stipulates the need for research recipients to share knowledge and best practices with others. To drive the success of the outreach and education programs, ongoing technical assistance is provided through the Avon Breast Health Outreach Program to communitybased grant recipients.

View Avon's 2010 grants by program area, as well as grants of prior years and by quarter for the current year, by clicking here.

Avon Foundation honorary cochair, Reese Witherspoon with the CancerCare representative.

Corporate Responsibility Practices In addition to the core pillars of economic empowerment, sustainability and philanthropy, Avon is committed to corporate responsibility throughout the practices of the business enterprise. Click the links below to read about key areas of commitment.

l Materiality: Key Impact, Risks & Opportunities

l Corporate Governance

l Ethics & Compliance

l Manufacturing & Product Compliance

l Stakeholder Engagement

l Public Policy

l Workplace

l Diversity & Inclusion

Materiality: Key Impact, Risks & Opportunities To determine the most material topics for its 2010 Corporate Responsibility Report, Avon reviewed the items covered in its previous Corporate Responsibility reports to see which ones were still relevant to the company and its stakeholders. Avon also gathered input from various internal and external sources, which is a continual process, and then identified and prioritized its most material topics in 2010. The sources used in this process included:

l Internal documents and plans that articulated the company's business objectives and strategies, policies, programs and risk factors

l Communications prepared by the company for external release

l Feedback and insights from Associates, Sales Representatives and customers

l Shareholder communications

l Traditional media coverage

l Online and social media outlets

l Industry trade groups

l Trending and emerging issues of relevance

l Stakeholder engagement

After reviewing these sources, Avon compiled a matrix of items and prioritized each one based on the following criteria:

l The importance of the topic to and potential impact on

n the planet and people

n the company

n Avon's stakeholders

l The amount of reasonable control Avon has over a particular matter or action

Material Topics Based on the assessment and a review of the GRI Guidelines, we believe that the material topics of greatest importance to Avon and its stakeholders, of which the company has a reasonable level of control over, fall into the following areas:

l Impacts on climate change, including energy and deforestation, with a focus on paper and palm oil

l Responsible use and management of resources, including water, raw materials and ingredients, packaging materials and waste reduction

l Supply chain responsibility, including supplier code of conduct, auditing and monitoring

l Product quality and safety

l Economic opportunities for women

l Continuity of Avon's commitment to philanthropy, with a focus on the causes of breast cancer and domestic violence

l Corporate ethics and compliance

l Transparency and communication

Key Impacts, Risks and Opportunities Economic | Environmental | Social

Economic

As a directselling company, Avon depends on its global base of approximately 6.5 million active Sales Representatives. Avon was founded in 1886, and the first official sales agent was a woman – Mrs. P.F.E. Albee. Today, the vast majority of Avon's Sales Representatives are women, all of whom are independent entrepreneurs managing their own Avon businesses. Avon is committed to providing its Sales Representatives with the materials and tools to succeed and does not require an outlay of personal capital to cover the cost of customers' orders. Rather, Avon provides product inventory to Sales Representatives on credit, and generally, the company does not receive payment until after it is collected from the Sales Representative's customers. As such, the company may be considered one of the largest microlenders to women in the world, with approximately U.S. $1 billion extended in credit on any given day. For more information, see Empowering Women.

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Environmental

Avon's core business is focused on cosmetics, fragrances, skincare and personal care (beauty products), which represented 71 percent of the business in 2010. In addition, Avon develops and markets a range of other products, including apparel, accessories and jewelry as well as home and decorative items. Avon manufactures virtually all of its beauty products in Avonowned or managedfacilities, while all "nonbeauty" products are manufactured by third parties.

Managing the impacts associated with developing, manufacturing, distributing and marketing its core products involves:

l Designing products to be safe, effective and of the quality consumers expect from Avon. This includes testing all ingredients and raw materials used in the products to ensure they are safe for personal use and the environment.

l Manufacturing products in a manner that is consistent with the company's Code of Conduct, global quality and safety standards, and environmental initiatives and policies. This includes implementing manufacturing processes to avoid unnecessary usage of energy, water and raw materials; and employing energy and waterefficient technologies and practices that reduce the company's environmental impact. In addition, the company seeks to employ best practices for the disposal of its various waste streams. The risks associated with manufacturing products in its companyowned and operated plants are minimal. The manufacturing of its products in contract factories poses more potential risk, which therefore requires the company's oversight and ongoing engagement with its suppliers to ensure compliance with its policies and expectations. All actions of both Avon suppliers and Avonowned facilities are guided by the Avon Supplier Code of Conduct.

l Distributing products in an efficient manner to minimize fuel usage and costs. This includes maintaining centrally located distribution centers around the world to streamline the process of shipping inventory to Sales Representatives; partnering with shippers on route optimization; as well as designing products with minimal packaging so more product can be consolidated and shipped in smaller packaging.

l Minimizing the impacts of marketing materials and brochures, which are essential tools for Avon's directselling model that does not have a "bricks and mortar" presence. A global focus on leveraging technology has enabled many Sales Representatives and customers to conduct business transactions online, but Avon continues to utilize a good deal of printed sales materials. The greatest impact associated with marketing Avon's products is the volume of paper used to create the product sales brochure – the catalog that serves as the "store." The company has adopted the Avon Paper Promise to address this impact.

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Social

Avon has a long history of supporting philanthropy, which was formalized with the creation of the Avon Foundation in 1955. Avon philanthropy is a unique partnership between the corporation and the Avon Foundation for Women, a U.S.based public charity and an independent entity. The signature programs today, supported by both Avon and the Avon Foundation, are the Avon Breast Cancer Crusade and Speak Out Against Domestic Violence, addressing two causes of great importance to women around the globe, including Avon's community of Sales Representatives, Associates and customers. Avon is the leading corporate supporter of the breast cancer cause and since 2004 has been expanding its support to help end violence against women.

The company's enduring commitment to these causes, both through the sale of Avon fundraising products and contributions to The Avon Foundation for Women, has served to strengthen the bonds women have to the brand. Avon's longterm ability to sustain its support for these causes is an opportunity to continue engendering brand loyalty while driving meaningful change worldwide.

As with any corporate philanthropy, fundraising can be impacted by broader social and economic circumstances. For example, while Avon remains committed to philanthropy, an economic downturn or high unemployment rate can affect the level of fundraising product sales and the success of Avon Foundation events such as the Avon Walk for Breast Cancer series.

If such a decrease occurs in charitable giving, it can directly impact the amount of money a company has available to donate to philanthropy. And therein lies a risk of disappointing stakeholders should a company's support for its dedicated causes decrease due to external forces.

More information on Avon's philanthropic programs is available here.

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Corporate Governance Board of Directors & Committees | CG Guidelines | CR & Sustainability Management

Avon believes good governance serves as a foundation for corporate responsibility and is committed to continually improving policies and practices to ensure transparency and accountability of the company's management. Avon takes a tailored and meaningful approach to corporate governance matters. We strive to:

l Consider longterm strategic and business objectives

l Seek robust discussion, rather than a "onesizefitsall" checklist approach

l Proactively monitor developments in corporate governance

l Engage in frequent communications with thought leaders and seek advice from outside experts for timely guidance and broad perspectives

Board of Directors and Committees

Avon's Board of Directors is elected by shareholders to oversee management and protect shareholders' longterm interests in the Company. The Board of Directors oversees management development, including CEO performance, compensation and succession planning, among other items.

The Board of Directors assesses the independence of its nonmanagement members at least annually in accordance with the listing standards of the New York Stock Exchange, the SarbanesOxley Act of 2002 and the regulations of the Securities and Exchange Commission, as well as Avon's Corporate Governance Guidelines. In accordance with these standards and guidelines, the Board has determined that each nonmanagement director currently serving is independent. The Board presently consists of five men and five women and includes the following four standing committees:

l Audit Committee

l Compensation Committee

l Finance Committee

l Nominating and Corporate Governance Committee

Each committee has a charter that sets forth its purpose, structure and operations, and responsibilities. The charters and current composition of each committee are available on Avon's corporate website.

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Corporate Governance Guidelines

Avon's Corporate Governance Guidelines describe the Board of Directors' governance policies and practices, including, for example, standards for Board independence, qualifications for Board and Committee membership, and the process for evaluating Board and CEO performance. The Corporate Governance Guidelines are intended to set a proper "tone at the top," by promoting good corporate citizenship and responsible business practices, and to establish a common set of expectations to assist the Board in performing its duties in accordance with applicable requirements, and thereby build longterm value for the company's shareholders.

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Corporate Responsibility and Sustainability Management

In 2009, the company created the role of Vice President, Sustainability and Corporate Responsibility, to enhance the management and coordination of the corporate responsibility

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and sustainability strategy and agenda. This position reports to the Senior Vice President, Human Resources and Corporate Responsibility, who is a member of Avon's Executive Committee, which reports directly to the CEO. The Vice President works in a matrix structure in partnership with many teams and executives to help create and drive strategies, policies and processes across the business.

Ethics & Compliance Code of Conduct | Global AntiCorruption Policy

Ethics and compliance are core priorities at Avon, and the company's Board of Directors and senior management team continually support the company's Global Ethics & Compliance Program.

The Compliance Committee, which includes senior management, has a responsibility to ensure the effectiveness of the Global Ethics & Compliance program. The committee is continually focused on ensuring a riskbased approach to program enhancements, includingthrough oversight of policies and procedures designed to ensure that Associates comply with the law, Avon's Code of Business Conduct & Ethics (the "Code") and other policies. The Compliance Committee operates in accordance with a written charter, approved by the Audit Committee of the Board of Directors. Please see Corporate Governance for further information.

In 2010, the company also established the Global Ethics & Compliance Council, with a Vice Presidentlevel nominee from each executive committee member. The Council is a visible, companywide and multifunctional committee that helps drive the "Tone in the Middle." Each Council member supports his or her business unit's or function's commitment to further embed the program into our daytoday operations.

Code of Conduct Avon's comprehensive Code of Business Conduct & Ethics (the "Code") describes certain Avon policies and practices, which are intended to promote ethical and lawful behavior and proper conduct. The Code also provides information about how to appropriately ask questions and report instances of possible noncompliance.

Avon has translated the Code into 22 languages and made it accessible to all Associates. The company also conducts an annual survey that asks specific questions regarding compliance with the Code and requires certification of compliance with the Code.

All Avon Associates are required to report ethics and compliance violations. Options for reporting include speaking with their managers or a member of the Compliance Committee and/or reporting violations, anonymously if they choose, directly via email or the Avon Integrity Helpline. The appropriate investigation will be undertaken and, under the Code, any Associate who commits a violation will be subject to disciplinary action, up to and including dismissal. Associates who are aware of a violation but do not report it are also held accountable.

Avon does not tolerate any retaliation whatsoever by a director, officer, or other Associate, or by any outside vendor or contractor, against anyone who has reported an incident or suspected incident.

Global AntiCorruption Program One key global compliance program is Avon's AntiCorruption Program. In 2010, Avon launched its current Global AntiCorruption Policy, which outlines Avon's commitment to comply with anticorruption laws, both in the U.S. and abroad. The Policy focuses on compliance with the U.S. Foreign Corrupt Practices Act (the "FCPA"), as well as other anticorruption laws, and provides Avon Associates with specific guidance on appropriate interactions with nonU.S. Government Officials.

A key component of this Policy is Avon's ThirdParty AntiCorruption Review Procedure, which evaluates anticorruption risks associated with Avon's use and retention of certain third parties, and ensures Avon's continued compliance with the FCPA and other anticorruption laws. This procedure requires certain third parties to undergo an extensive due diligence process with multiple levels of approval before the third party can be retained by Avon.

To drive Avon's commitment to its AntiCorruption Program, many Associates worldwide have participated in mandatory, inperson training, focused on Avon's policies and procedures, and compliance with the FCPA and other anticorruption laws. Depending on the Associates' job functions and responsibilities, this indepth training took place over one or two days and provided the Associates with guidance regarding the law, its application to Avon and their specific job functions, and resources for additional information and further guidance. The training covered a crosssection of Avon policies, procedures, and internal controls designed to detect and prevent violations of the FCPA and other laws.

By the end of 2011, Avon will have conducted indepth, inperson training sessions on the AntiCorruption Program for select Associates in almost every direct market worldwide. In addition, more than 99 percent of Associates with Avon email accounts have completed the company's tailored online anticorruption etraining module. This module and other compliance etraining courses are now automated as part of Avon's onboarding process for new Associates. Additional indepth, inperson compliance training and etraining is planned for 2012.

Manufacturing & Product Compliance Supplier Code of Conduct

Avon's manufacturing enterprise is committed to operating under the highest standards. The manufacturing processes are guided by a global Supplier Code of Conduct, which helps the company ensure that its own facilities and suppliers comply with applicable local and federal laws and regulations regarding environmental performance and human rights, as well as universal standards set by Avon. With input of a crossfunctional management team, the Supplier Code of Conduct was revised and strengthened in 20102011, and new strategies were put in place for increased auditing of thirdparty manufacturers.

To read more about manufacturing, supply chain and auditing click here.

Product Safety Compliance

Avon conducts rigorous tests throughout its research and product development process to ensure the safety and quality of its ingredients and products. Avon also complies with regulatory requirements in the more than 100 countries where it maintains operations and continuously monitors products for safety.

If Avon determines through scientific inquiry that an ingredient can no longer be considered to be used safely, or if ever prohibited by law, the company would discontinue its use. Although Avon does not have a formal policy regarding the Precautionary Principle, the company's approach is designed to ensure it

complies with all laws and, in some cases, goes beyond to ensure safety. Avon will also take into account consumer preference and provide formulation options when safe and effective alternatives are available.

Examples:

l Because some consumers have a preference for products without parabens, starting in 2002, Avon began eliminating parabens from some products where there are safe alternatives. Today, many of Avon's products are parabenfree, including lip products, women's body care products, antiperspirants and deodorants, and children's products.

l Prior to 2004, Avon used dibutyl phthalate (DBP) in some of its nail polish product formulations. Following a 2004 change in European Union (EU) regulatory requirements, the company removed DBP from all of its beauty products, including those nail polishes that contained it, even though the ingredient was banned only in the EU and the action in the EU was not based on an assessment specific to cosmetic products safety.

l Although diethyl phthalate (DEP) has been extensively studied and evidence supports its safe use in cosmetic products, Avon announced in 2005 that the company would no longer use DEP in the development of new fragrances, as an effort to address consumer concern.

Avon's formal position on the use of these ingredients, among others, can be found here.

Stakeholder Engagement Associates | Sales Representatives | Customers | Shareholders | Advocacy Groups

Avon values the input of its stakeholders, from Sales Representatives, Associates and customers to advocacy groups, philanthropic partners and investors. For example, Avon integrates stakeholder feedback into business strategies and operations to foster improvement in the areas of sustainability and corporate responsibility.

Avon's key stakeholder groups, and the steps the company takes to engage them, are outlined below:

Associates

To keep employees around the world engaged and informed, Avon offers Associates an active global intranet, regional newsletters and frequent email communication, which provide the latest company news, spotlight achievements and update Associates on relevant matters. Avon undertakes an Engagement Survey, with changes in scores tracked by department and country, and action plans to address results, as appropriate. For more information on Associate Engagement & Training, click here.

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Independent Sales Representatives

As the foundation of the company's business, Avon maintains frequent contact with independent Sales Representatives to gain feedback to help ensure that the Avon earnings opportunity meets their needs. The company provides independent Sales Representatives with tools and resources to develop and enhance their Avon businesses, including regular emails, a weekly electronic update, a Facebook page, and dedicated Customer Service email and phone lines. Throughout the business, focus is on the "Representative Value Proposition" – the quality of the Sales Representative experience – and key to this is an ongoing dialogue and understanding of the changing needs of the Sales Representatives. For more information on Avon's effort to Empower Women, click here.

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Customers

Avon has a 100 percent satisfaction guarantee, and provides numerous options for contacting the company about products or other experiences. Since Avon is a directselling company, consumers often provide feedback through their Sales Representatives, who in turn share feedback with Avon's management. Online shoppers frequently use the local avon.com ecommerce site to provide feedback, while other customers contact the Avon telephone customer call center through tollfree numbers (such as 8004452866 or 800FORAVON in the U.S.) as well as an email address ([email protected] in the U.S.). These contact points are printed on product packaging and made available on the company's websites and other portals.

New to Customer Care is an online "matching" system that will locate a new Sales Representative to serve Customers when the current Sales Representative leaves Avon. This program enables seamless transition for the customer and supports the business of other Sales Representatives in the area.

Avon's standard for customer care requires that all inquiries receive a timely response and that feedback is shared with the appropriate Associates so they are able to track and respond to issues and/or recommendations.

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Shareholders

Avon believes that strong shareholder communications are a key part of the corporate governance process and maintains an open line of communication with its shareholders and prospective investors. For example, Avon hosts quarterly conference calls and webcasts coincident with its quarterly/annual earnings announcements. Avon also regularly participates in, or hosts its own, conferences and meetings with the investment community. We strive to:

l Have ongoing dialogue with shareholders

l Stay current on leading governance trends and understand shareholder views

l Identify shareholder priorities

l Be responsive to shareholder inquiries

l Work to achieve a mutually beneficial resolution with respect to shareholder proposals, as appropriate

Shareholders may contact the company via email (investor relations and individual investor) or telephone (2122825320 and 2122825623). Additional information is provided on Avon's corporate website, here.

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NonProfit and Advocacy Groups

Avon is committed to open dialogue with external organizations and advocacy groups on key relevant matters. Responses to requests from advocacy organizations are typically addressed either by Avon's corporate management or management in the local country, or through trade organizations such as the Direct Selling Association or the Personal Care Products Council for topics relevant to the industry as a whole.

Avon and the Avon Foundation for Women have engaged in dialogue with a broad range of groups representing health, environmental and other relevant matters, such as PETA (People for the Ethical Treatment of Animals), and Forest Ethics and Breast Cancer Action. Recently, Avon worked with environmental organizations, including The Nature Conservancy, to develop its Hello Green Tomorrow program; with the World Wildlife Fund (WWF) and many other environmental groups to formulate the Avon Paper Promise; and with Roundtable on Sustainable Palm Oil and GreenPalm to help craft the Avon Palm Oil Promise. Avon is also a participant in groups such as the WWF Global Forest and Trade Network, WWF's initiative to drive improvements in the world's most valuable and threatened forests, in order to work with the groups as well as other likeminded companies to address common causes.

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Public Policy Avon's Code of Business Conduct and Ethics prohibits political contributions by or on behalf of the company without the prior approval of Avon's Global Government Affairs office. Associates in the U.S. may make personal contributions to the Avon Fund for Responsible Government Political Action Committee in support of U.S. federal candidates for public office.

Avon may advocate its positions on matters that relate to its business, such as directselling legislation that may impact the ability of Sales Representatives to run their businesses, including independent contractor status, taxes, licensing, and registration requirements. Avon also engages on matters that may impact the sale or formulation of beauty and nonbeauty products.

Examples of legislation affecting Avon Sales Representatives on which Avon worked independently or took an active role in conjunction with its trade association include:

l Proposed legislation in various municipalities which would require Representatives to undergo background checks, fingerprinting and licensing to sell products in a doortodoor manner. Avon opposes regulations of this type

l Proposals in California to require withholding taxes on independent contractors

Avon is a member of various trade associations, which provide information and assistance to governing bodies or interested parties on items of importance to the company.

Each year, Avon discloses on its website the recipients and portion of Avon dues or payments used for political contributions and expenditures by U.S. trade associations and taxexempt groups of which Avon is a member that receive such dues or payments from Avon in excess of $100,000 per year. To learn more, please see Avon's Current Political Contributions and Expenditures Report.

Avon is a member of many organizations related to the company's business and mission, such as the European Direct Selling Association (SELDIA); United States Council for International Business (USCIB); the Toy Industry Association (TIA); American Chamber of Commerce to the European Union (AmCham EU); and, starting in 2011, Avon will be a member of Business for Innovative Climate & Energy Policy (BICEP). For a list of memberships that Avon belongs to, click here.

Avon also takes a leadership role in supporting and enhancing the ethical performance of both the cosmetic and directselling industries, working with other companies through trade organizations such as the Personal Care Products Council (PCPC) and the Direct Selling Association (DSA). For example, Avon played a leadership role in strengthening the World Federation of Direct Selling Associations (WFDSA) Code of Ethics in 2008 and developing a WFDSA Ethics Toolkit for use by companies in the directselling industry as well as DSAs around the globe.

Workplace Avon is committed to its employees around the world, whether located in urban headquarters or rural manufacturing facilities. Associates are provided a safe and healthy workplace, competitive benefits and the opportunity to engage with management and peers, with the goal of supporting and representing the needs of Avon's diverse workforce.

l Global Safety Strategy

l Employee Benefits

l Associate Engagement & Training

Global Safety Strategy Management | Goals and Measurement | Communications and Awareness | Increasing Competence | Global Standards

Avon is committed to providing a safe and healthy workplace for Associates, contract employees and visitors. To underscore this commitment, in 2006 the company developed and implemented the Global Safety Strategy, which has six dimensions, outlined below.

Click here to enlarge

Increase Management Involvement

Avon considers management involvement to be of critical importance in furthering safety and health throughout the company's operations. Managers, supervisors and team leaders at its manufacturing and distribution centers participate in a twohour Safety Leadership session to gain insight into safety basics and their individual and collective role in promoting safety in their areas of responsibility. Since 2007, more than 50 sessions have been conducted at 30 Avon sites, and more than 600 people have participated. We believe this has been a significant contributor to improved safety at Avon. In addition, safety is included as a performance metric and reward system for management.

Strengthening Basic Safety

The foundation of Avon's safety and health programs at individual sites is ensured through compliance with local regulations, and by conducting risk assessments of tasks performed; developing safe operating procedures (SOP); and providing new hire safety orientations, job training, and training for specific topics such as ergonomics, electrical and chemical safety, among others. The company works to identify improvement needs and incorporate proper safety and fire protection features into new designs from the beginning. Avon facilities also have robust fire protection and prevention programs, as well as emergency plans with routine drills conducted. Safety and housekeeping inspections by local teams and periodic site visits by regional and global staff also help identify improvement needs.

Associates participate in an evacuation drill at an Avon facility in Turkey.

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Setting goals and measuring performance

In 2007, Avon established measures to consistently capture and report workplace accident information across global manufacturing plants and distribution centers. The company uses this data to publish quarterly global safety reports, allowing leadership to recognize excellent performance and identify areas for improvement.

In 2010, Avon accomplished its goal of a total recordable case (TRC) rate of "below 1.0" for the Supply Chain operation overall. As a result, the company established a new goal to achieve a TRC rate of 0.5. As of the second quarter in 2011, Avon achieved an overall TRC rate of 0.6 for the global supply chain operation. This trend shows a 78 percent reduction in TRC from 2007 through the second quarter of 2011 and reflects nearly 350 fewer injuries every year. Additionally, the number of Avon sites reporting a TRC rate below 1.0 increased from 72 percent in 2009 to 85 percent in 2010. Despite all safety efforts, Avon experienced one trafficrelated fatality in 2010, involving an Associate on the Sales Team in Brazil.

TRC Supply Chain Overall

In 2010, Avon introduced the Site Safety Programs Review (SSPR), a selfassessment safety review, with weighted scores to reflect the relative importance of 22 individual topics. This annual program provides Avon with a systematic means for continuous improvement and helps ensure that a minimum level of safety programs is established at Avon sites in all countries. Beginning in 2012, SSPR scores will supplement TRC rates in measuring and comparing safety performance across Avon sites.

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Communications and Awareness

Frequent communication is one approach Avon takes to raise safety awareness among Associates. The company ensures extensive communication through the Global Safety Network, comprised of 130 Safety & Health (S&H) staff at global, regional and site levels, as well as the group of site leaders, to encourage sharing of knowledge and best practices. Updates and training are often conducted through webinar sessions and an internal Global Safety & Health website can be accessed for safety information or downloadable forms, checklists and relevant articles for S&H staff.

The TRC rate indicates the total number of "Avon Reportable" cases (lost time plus medical treatment beyond firstaid), per 100 fulltime

Associates.

At the site level, extensive safety communications are provided during group meetings, weekly minimeetings held by supervisors, and through digital display screens and bulletin boards. Employee suggestion programs are encouraged at Avon sites and there have been times when the safety committees have developed creative approaches to promoting safety. For instance, Associates at a U.S.based manufacturing facility created an entertaining video called "Safety Never Sleeps" to communicate the importance of safety and several sites have programs called "Caught in the Act Doing Something Right" to focus on the positive aspects of safety awareness.

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Increasing safety and health competence

All Avon Associates, from management to technical staff, are required to know the company’s general safety policies as well as jobspecific safety practices. Avon also works to build the capacity and capabilities of the S&H team, by providing professional development resources, guidelines and checklists on the intranet. Periodic conferences are held to provide networking opportunities to the S&H staff. Several of the S&H staff at Avon hold degrees in Occupational Safety & Health, professional certifications such as Certified Safety Professional (CSP), and variety of technical licenses and certifications. Avon encourages continuous learning for S&H professionals to ensure they are most effective in guiding their teams in improving safety.

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Establishing global standards

As a global company, Avon works to ensure all sites meet regulatory safety standards. However, these regulations can vary by region and country. Avon is establishing stringent internal safety requirements to address these differences and ensure consistency in safety processes across the company's global operations. The company has published 20 "S&H Bulletins" to convey its global minimum standards. In addition, Avon works closely with property loss control consultants to incorporate adequate fire and property protection features in design and construction of new buildings, based on international standards such as the National Fire Protection Association (NFPA) in the USA and Atmospheres Explosives (ATEX) from the European Union (EU). Five Avon facilities have achieved internationally recognized OHSAS 18001 certification.

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Employee Benefits To recruit and retain a competitive talent pool, Avon provides competitive benefits and compensation packages for its more than 40,000 Associates (employees) around the world. In the U.S., the company offers the Total Rewards Program to fulltime Associates, and varied benefits packages are offered in countries worldwide according to the standards and expectations of each market.

Avon's Total Rewards Program currently includes:

l Medical, dental and vision coverage

l Life insurance

l Disability benefits

l Flexible spending accounts/health savings accounts

l Employee assistance program, including health and wellness resources

l Subsidized gym memberships

l Paid time off

l Product discounts

l Transit incentive programs

l Tuition assistance

l Parental leave

l Child care benefits

l Adoption benefits

l Pension plan

l 401(k) plan

l Equivalency in spousal and partner benefits

Associate Engagement & Training Global Intranet | Leadership Events | Education & Training | Associate Engagement Survey

Avon understands the importance of employee engagement as a driver of job satisfaction, retention and company success. The company works diligently to engage its more than 40,000 Associates around the world and provides avenues for feedback through its comprehensive global intranet, an Engagement Survey, education on core leadership behaviors and career paths, and events hosted by company leadership. At the individual level, Associates participate in midyear and annual performance reviews, which focus on sharing career aspirations, outlining clear performance and development goals to support the aspirations, providing relevant feedback, and establishing action plans.

Global Intranet

Avon's extensive global intranet, supported by regular email alerts, provides frequent updates and news about the company, industry and Associates around the world, with content submitted from all countries for inclusion. Materials submitted include reports on events and achievements, photos and videos featuring, and often made by, local Associates of every level. Some regions also publish print or online magazines to provide customized local content for Associates. In addition, the company uses email regularly to communicate company information, ranging from financial performance to key new hires.

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Leadership Events

Avon hosts events that connect senior management with Associates for the purposes of delivering updates on local and global news and eliciting Associate feedback. These events include quarterly "town hall" meetings, teleconferences and executive road shows. Senior management will also meet with their teams to communicate key information, such as the highlights of the annual World Wide Management Conference and quarterly public financial reports, and provide tools for them to effectively cascade information and ensure all associates have access to the same information. In 2011, Andrea Jung took a 16city global "world tour" to mark the company's 125th anniversary.

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Education and Training

In 2010, Avon launched new efforts to support career development defined by the seven leadership behaviors that drive success at Avon, creating a blueprint for Associates that is supported with broadbased training. A global Career Month program occurs in October and offers a variety of tools, including webinars, videos and live trainings to promote Career Principles, Development Planning, Avon's Opportunities, and Career Conversations.

More than 3,600 Associates took part in Career Month during October 2010, during which time they benefited from the involvement of more than 65 leaders who represent different regions and functions. Afterwards, 82 percent of Associates reported a better understanding of Avon's approach to career development. In 2011, regional versions of the program will be developed to provide additional focused training and development.

Avon also offers functional training based on global core curricula, with a special focus on the key commercial areas such as sales and marketing, to build a strong foundation for individual and company success.

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Associate Engagement Survey

Avon conducts an Associate Engagement Survey, which is open to every Associate around the world. The confidential survey provides an opportunity for Associates to candidly share feedback about their experiences at Avon, which helps the company understand what is working well and identifies areas for improvement. Results are reported by country and by department, across markets, to give both geographic and functional insight. Senior leaders review survey results with their teams and develop and implement action plans, with quantifiable goals, to address matters that surface through the survey.

In 2010, 92 percent of Associates participated in the annual survey. The results indicated a onepoint increase over 2009 scores, achieving a 72 percent engagement score among Avon Associates. An engagement score of 70 percent is considered extremely highperforming.

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Diversity & Inclusion Avon has a rich heritage of embracing diversity and inclusion, with a particular focus on its vision to be "the company for women." The company is committed to developing a workplace environment that attracts, develops, retains, and advances a culturally diverse workforce throughout its global operations. This commitment also extends to supporting and working with suppliers that are owned and operated by diverse groups. The company has reaffirmed this commitment by integrating diversity and inclusion as a core business strategy aligned with the company's values.

In 2010, Avon established a global inclusion office as a center of excellence to oversee all aspects of this work across the company. The office focuses on driving business results through inclusion, empowerment and the advancement of top talent everywhere Avon operates using the four key strategies, outlined below:

l Embedding diversity and inclusion into core talent processes at all levels

l Cultivating an inclusive environment to maximize Associate contributions

l Leveraging diversity and inclusion as a business growth accelerator

l Enhancing the Avon brand and reputation through a strong diversity and inclusion commitment

Avon's Associate Resource Groups (ARGs) are important enablers to advancing the company's diversity and inclusion commitment as well. ARGs serve as liaisons between Associates and management to share best practices, increase awareness about the business need for and impacts of a diverse workforce, and develop a more inclusive workplace.

Workforce Diversity at Avon Avon's commitment to diversity and inclusion attracts and retains a broad pool of top talent. At midyear 2012, women comprise 60 percent of the total Avon workforce, 57 percent of managers, and 44 percent of senior leaders. In the U.S., people of color comprise 34 percent of Avon's total workforce, 24 percent of directors and above. People of color comprise 37 percent of the Avon Board of Directors, while women comprise 55 percent. Some Avon markets have an especially high level of women at the director and above level, including:

l Canada 60 percent

l Eastern Europe 67 percent

l Turkey 100 percent

All numbers are as of May 2012

Female Workforce

Global Associate Distribution (37,866)

Avon Associates by Employment Type (Global)

Employment type * Number of Associates Percentage

Exempt 4,013 10.6

Nonexempt 33,780 89.2

Not Applicable 73 0.2

Total 37,866 100

*Includes 73 neither exempt nor nonexempt

Avon Associate Composition (U.S.) Percentage

White 60.4

Hispanic 14.8

African American 12.9

Asian 9.7

Other, including Native Hawaiians, American Indians, two or more, and not specified

2.1

Avon Associate Composition Director and Above (U.S.) Percentage

White 73.0

Hispanic 7.7

African American 4.6

Asian 9.7

Other, including Native Hawaiians, American Indians, two or more, and not specified

5.0

Commitment to Women Avon is fully committed to living up to its mission to be "the company for women" worldwide. In addition to providing economic opportunity for its Sales Representatives, Avon is committed to recognizing, empowering and advancing women within its own ranks. The company's strategic focus on women's empowerment aligns with the nature of its products and expectations of its diverse customers and stakeholders, as well as with its core mission. In 2010 a new Vice President of Global Inclusion joined Avon's executive management with the mandate to drive business results by further embedding a commitment to women throughout the business and developing a pipeline of talent and a path to success for female Associates.

Women in Leadership

At midyear 2012, women held four of the eleven positions on Avon's Executive Committee: Chief Executive Officer, Chief Financial Officer, General Counsel, Global Communications. Worldwide, women hold 37 percent of the Vice President and above positions, including the CEO and Executive Chairman, and 46 percent of Executive Director and Director roles.

Women also maintain leadership positions within Avon's functional and geographic operations around the world. For example, women are responsible for leading Avon business in the following regions and countries: Colombia, Continental Europe, Eastern Europe, Ecuador, Korea, Malaysia, Middle East, North Africa, Peru, and Taiwan.

Avon has been consistently rated among the Top Companies for Female Executives by the U.S.based National Association of Female Executives. Avon’s top female leaders have been named among the world's most powerful women by media such as Financial Times, Forbes and Fortune.

In June 2010, Avon's Andrea Jung was among the 39 lead signers of the CEO Statement of Support for the United Nations Women's Empowerment Principles – Equality Means Business, developed to guide businesses on how to empower women in the workplace, marketplace and community.

Associate Resource Groups Associate Resource Groups (ARGs) are voluntary groups, led by Associates and sanctioned by the company. Avon’s ARGs are change agents for greater engagement, business improvement, and talent development across the organization. They have proven to be an important business resource to the company and serve as a collective influence for organizational change and

leadership development. Avon's first ARG, then called an employee network, was launched in 1971, when the "Concerned Women of Avon" approached senior management to discuss representation and advancement.

Currently, Avon has four Associate Resource Groups in the US: the Asian Network, Black Professionals Association (BPA), AHORA Latino Network and the PRIDE LGBT (Lesbian, Gay, Bisexual, Transgender) Network. The Global Inclusion Office, which manages the ARGs, is actively working to expand the networks and locations of the groups to other Avon geographies.

The ARGs’ plans and goals are aligned with both Avon's overall global inclusion strategy and the company’s broader business goals to ensure both the company and participants gain the greatest benefit and opportunities from their efforts. These groups partner with leadership teams to identify opportunities that positively impact the business and the engagement of employees.

Avon’s ARG goals include four areas of focus:

l Marketplace: Providing insights and support on growing multicultural market segments, product development and design

l Workplace: Creating opportunities to engage Avon Associates and enhance the work environment

l Talent: Providing professional and personal growth opportunities for Associates

l Community: Enhancing our brand, promoting societal trust, and increasing Associate morale by giving back to the communities we serve.

New this year, the ARGs have begun offering a series of jointly sponsored “All4One" projects aimed at leveraging the united power of the groups. The first projects include an ARG awareness campaign to broadly share the value of membership, a Speaker Series, which brings in external thought leaders for dialogue with Associates on topics of major interest, and a number of valuable skillbuilding and leadership development workshops.

Supplier Diversity More than 30 years ago, Avon implemented its first supplier diversity initiative. Today, the company does business with a broad range of women and minorityowned suppliers in North America and continually seeks out new vendors to add to its diverse supplier network.

In 2010, Avon sourced products and services from more than 200 small and diverse businesses and awarded $20 million in contracts to diverse suppliers in North America. The company continues to adopt a more centralized supply chain process, which strengthens its capability to accurately assess the services, commodities and regions in which growth and opportunities may exist for more diverse suppliers. While Avon remains committed to supplier diversity, continuing global economic challenges have impacted supply chain processes around the world.

For information on the Avon Supplier Code of Conduct, click here.

GRI Index GRI Disclosure Description Type Section

Strategy and Analysis

1.1 CEO statement Core Message from Our CEO

1.2 Description of key impacts, risks, and opportunities

Core Materiality: Key Impacts, Risks & Opportunities

Organizational Profile

2.1 Name of the organization

Core Company Profile & Financials

2.2 Primary brands, products, and services

Core Company Profile & Financials

2.3 Operational structure Core Company Profile & Financials

2.4 Headquarters location

Core Company Profile & Financials

2.5 Countries of operation

Core Company Profile & Financials

2.6 Nature of ownership and legal form

Core Company Profile & Financials

2.7 Markets served Core Company Profile & Financials

2.8 Scale of organization Core Company Profile & Financials

2.9 Significant changes during the reporting period regarding size, structure, or ownership

Core Annual Report

2.10 Awards received during the reporting period

Core Company Profile & Financials

Report Parameters

Report Profile

3.1 Reporting period Core About This Report

3.2 Date of most recent previous report

Core About This Report

3.3 Reporting cycle Core About This Report

3.4 Contact Core About This Report; Message from Our CEO

Report Scope and Boundary

3.5 Process for defining report content

Core Materiality: Key Impacts, Risks & Opportunities

3.6 Boundary of the report

Core About This Report

3.7 Limitations of the scope or boundary of the report

Core About This Report

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that could affect comparability

Core Avon does not report on joint ventures, subsidiaries, leased facilities, outsourced operations or other entities that could affect comparability

3.9 Data measurement techniques and assumptions

Core Minimizing the Operational Footprint; Workplace: Global Safety Strategy; Diversity & Inclusion: Workforce Diversity

3.10 Explanation of the effect of any restatements of information provided in earlier reports

Core About This Report

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report

Core Minimizing the Operational Footprint; Workplace: Global Safety Strategy; Diversity & Inclusion: Workforce

Diversity

GRI Content Index

3.12 GRI content index Core GRI Index

Assurance

3.13 Policy and current practice with regard to seeking external assurance for the report

Core GRI Index

Governance, Commitments and Engagement

Governance

4.1 Governance structure

Core Corporate Governance: Board of Directors & Committees

4.2 Indicate whether the Chair of the highest governance body is also an executive officer

Core Corporate Governance: Board of Directors & Committees

4.3 State the number of members of the highest governance body that are independent and/or nonexecutive members

Core Corporate Governance: Board of Directors & Committees

4.4 Mechanism for shareholders and employees to provide recommendations or direction to the board

Core Stakeholder Engagement: Associates; Shareholders

4.5 Linkage between compensation for members of the board, senior managers, and executives and the organization's performance

Core Corporate Governance: Board of Directors & Committees, Corporate Governance Guidelines

4.6 Processes in place for the board to ensure conflicts of interest are avoided

Core Corporate Governance: Board of Directors & Committees, Corporate Governance Guidelines

4.7 Process for determining the qualifications and expertise of the members of the

Core Corporate Governance: Board of Directors & Committees,

board for guiding the organization's strategy on economic, environmental, and social topics

Corporate Governance Guidelines

4.8 Statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

Core Vision & Mission; Ethics & Compliance: Code of Ethics; Manufacturing & Product Compliance

4.9 Board procedures for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles

Core Corporate Governance: Corporate Governance Guidelines

4.10 Processes for evaluating the board’s own performance

Core Corporate Governance: Corporate Governance Guidelines

Commitments to External Initiatives

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization

Core Manufacturing & Product Compliance

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses

Core Ethics & Compliance: Code of Ethics; AntiCorruption Policy; Manufacturing & Product Compliance

4.13 Memberships in associations and/or national/international advocacy organizations in which the

Core Public Policy

organization has positions in governance bodies; participates in projects or committees; provides substantive funding beyond routine dues; or views membership as strategic

Stakeholder Engagement

4.14 List of stakeholder groups engaged by the organization

Core Stakeholder Engagement

4.15 Basis for identification and selection of stakeholders with whom to engage

Core Stakeholder Engagement

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

Core Stakeholder Engagement

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

Core Stakeholder Engagement Corporate Responsibility Advocacy Groups

Economic Performance Indicators

DMA Disclosure on Management Approach

Core Empowering Women; Materiality: Key Impacts, Risks & Opportunities

Economic Performance

EC1 Economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

Core Annual Report

EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change

Core Materiality: Key Impacts, Risks & Opportunities: Environmental

EC3 Coverage of the organization's defined benefit plan obligations

Core Annual Report

EC4 Significant financial assistance received from government

Core NA

Market Presence

EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation

Additional NR

EC6 Policy, practices, and proportion of spending on locally based suppliers at significant locations of operation

Core Diversity & Inclusion: Supplier Diversity

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation

Core NR

Indirect Economic Impacts

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, inkind, or probono engagement

Core NR

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts

Additional NR

Environmental Performance Indicators

DMA Disclosure on Management Approach

Core Sustainability; Materiality: Key Impacts, Risks

& Opportunities

Materials

EN1 Materials used by weight or volume

Core NR

EN2 Percentage of materials used that are recycled input materials

Core NR

Energy

EN3 Direct energy consumption by primary energy source

Core Sustainability: Energy & Greenhouse Gas Reduction

EN4 Indirect energy consumption by primary energy source

Core NR

EN5 Energy saved due to conservation and efficiency improvements

Additional Sustainability: Energy & Greenhouse Gas Reduction

EN6 Initiatives to provide energyefficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives

Additional NR

EN7 Initiatives to reduce indirect energy consumption and reductions achieved

Additional NR

Water

EN8 Total water withdrawal

Core Sustainability: Water Use Reduction

EN9 Water sources significantly affected by withdrawal of water

Additional NR

EN10 Percentage and total volume of water recycled and reused

Additional NR

Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value

Core NA

outside protected areas

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

Core NR

EN13 Habitats protected or restored

Additional NR

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity

Additional NR

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk

Additional NR

Emissions, Effluents and Waste

EN16 Total direct and indirect greenhouse gas emissions by weight

Core Sustainability: Energy & Greenhouse Gas Reduction

EN17 Other relevant indirect greenhouse gas emissions by weight

Core NR

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved

Additional Sustainability: Avon Green Building Promise

EN19 Emissions of ozonedepleting substances by weight

Core NR

EN20 NOx, SOx, and other significant air emissions by type and weight

Core NR

EN21 Total water discharge by quality and destination

Core NR

EN22 Total weight of waste Core Sustainability: Materials Use

& Waste Reduction

EN23 Total number and volume of significant spills

Core NR

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally

Additional NR

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff

Additional NR

Products and Services

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

Core Managing Our Product Lifecycle: Research & Development

EN27 Percentage of products sold and their packaging materials that are reclaimed by category

Core NR

Compliance

EN28 Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental laws and regulations

Core NR

Transport

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and

Additional NR

transporting members of the workforce

Overall

EN30 Total environmental protection expenditures and investments by type

Additional NR

Labor Practices Performance Indicators

DMA Disclosure on Management Approach

Core Workplace; Diversity & Inclusion

Employment

LA1 Total workforce by employment type, employment contract, and region

Core Diversity & Inclusion: Workforce Diversity

LA2 Total number and rate of employee turnover by age group, gender, and region

Core NR

LA3 Benefits provided to fulltime employees that are not provided to temporary or parttime employees

Additional Workplace: Employee Benefits

Labor Management/Relations

LA4 Percentage of employees covered by collective bargaining agreements

Core NR

LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements

Core NR

Occupational Health and Safety

LA6 Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advise on occupational health and safety programs

Additional NR

LA7 Rates of injury, Core Workplace:

occupational diseases, lost days, and absenteeism, and number of workrelated fatalities by region

Global Safety Strategy

LA8 Education, training, counseling, prevention, and riskcontrol programs in place to assist workforce members, their families, or community members regarding serious diseases

Core Workplace: Employee Benefits

LA9 Health and safety topics covered in formal agreements with trade unions

Additional NR

Training and Education

LA10 Average hours of training per year per employee

Core NR

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Additional Workplace: Associate Engagement & Training

LA12 Percentage of employees receiving regular performance and career development reviews

Additional NR

Diversity and Equal Opportunity

LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity

Core Diversity & Inclusion: Workforce Diversity; Corporate Governance: Board of Directors & Committees

LA14 Ratio of basic salary of men to women by employee category

Core NR

Human Rights Performance Indicators

DMA Disclosure on Management Approach

Core Ethics & Compliance; Manufacturing

& Product Compliance; Managing Our Product Lifecycle: Manufacturing & Supply Chain

Investment and Procurement Practices

HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening

Core NR

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken

Core Managing Our Product Lifecycle: Manufacturing & Supply Chain

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

Additional Managing Our Product Lifecycle: Manufacturing & Supply Chain

Nondiscrimination

HR4 Total number of incidents of discrimination and actions taken

Core NR

Freedom of Association and Collective Bargaining

HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights

Core NR

Child Labor

HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor

Core NR

Forced and Compulsory Labor

HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor

Core NR

Security Practices

HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations

Additional NR

Indigenous Rights

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken

Additional NR

Society Performance Indicators

DMA Disclosure on Management Approach

Core Philanthropy; Ethics & Compliance

Community

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

Core NR

Corruption

SO2 Percentage and total number of business units analyzed for risks related to corruption

Core NR

SO3 Percentage of employees trained in organization's anticorruption policies and procedures

Core NR

SO4 Actions taken in response to incidents of corruption

Core NR

Public Policy

SO5 Public policy positions and participation in public policy development and lobbying

Core Public Policy

SO6 Total value of financial and inkind contributions to political parties, politicians, and related institutions by country

Additional Public Policy

Anticompetitive Behavior

SO7 Total number of legal actions for anticompetitive behavior, antitrust, and monopoly practices and their outcomes

Additional NR

Compliance

SO8 Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with laws and regulations

Core NR

Product Responsibility Performance Indicators

DMA Disclosure on Management Approach

Core Managing Our Product Lifecycle

Customer Health and Safety

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

Core Sustainability: Managing Our Product Lifecycle

PR2 Total number of incidents of noncompliance with regulations and voluntary codes

Additional NR

concerning health and safety impacts of products and services during their life cycle, by type of outcome

Product and Service Labeling

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

Core NR

PR4 Total number of incidents of noncompliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

Additional NR

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction

Additional Stakeholder Engagement: Customers

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship

Core NR

PR7 Total number of incidents of noncompliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes

Additional NR

PR8 Total number of Additional NR

substantiated complaints regarding breaches of customer privacy and losses of customer data

PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services

Core NR

Company Profile & Financials Avon Products, Inc. (Avon) was founded in 1886 and has grown to become the world's largest direct seller of beauty and beautyrelated products, with more than $11 billion in annual revenue in 2011. Headquartered in New York City, where the company was founded, Avon markets its products to women in more than 100 countries through more than 6 million active independent Sales Representatives in regions around the world. In 2010, these regions included Latin America; North America; Central and Eastern Europe; Western Europe, Middle East and Africa; Asia Pacific; and China. Effective in 2011, China is included in the Asia Pacific region.

Avon maintains directsales operations in 64 countries and territories. The company also conducts business through distribution partners and licensees to drive growth in emerging and developed markets, distributing products in 41 additional countries and territories through these secondary channels. View the complete list of Avon markets here.

*In 2010, Avon sold its Japan business. Revenue numbers for 2010 have been restated to exclude Avon Japan revenues. Effective in first quarter 2011, Asia Pacific and China are managed as a single operating segment. Accordingly, the 2010 and 2011 Asia Pacific revenues include the results of China.

For Avon's recent financial and company information, read the company's financial earnings releases and Annual Report.

Avon's core beauty products and related brands, such as Avon Color, ANEW, SkinSoSoft, Advance Techniques, Avon Naturals, and mark., represent 71 percent of the company's business. Also, Avon offers a growing line of fashion, jewelry, accessories, home and children's products. In addition to the extensive Avon costume jewelry offerings, in 2010, Avon acquired Silpada Designs, Inc., the largest direct seller of sterling silver jewelry, with operations in the U.S., Canada and the U.K. In the same year Avon also acquired the U.K.based company Liz Earle Beauty Co. Limited, a privately held brand of naturally active skincare products sold primarily through directtoconsumer channels.

Region Revenues (millions)*

2011 2010

Latin America $5,116.0 $4,589.5

North America 2,110.4 2,244.0

Central & Eastern Europe 1,580.6 1,585.8

Western Europe, Middle East & Africa 1,542.2 1,462.1

Asia Pacific 942.4 981.4

Total $11,291.6 $10,862.8

Avon's current product offerings are categorized by Beauty, Fashion and Home:

Learn more about Avon's global products and brands.

Awards & Recognition

Avon is proud to be recognized for impact on the key areas of empowerment, philanthropy and sustainability, as well as general recognition of excellence of the company and top executives.

Specific initiatives in many countries have received national and local awards, and the company was included in the 2011 Newsweek Green Rankings of the top 500 largest U.S. companies. Avon ranked #16 on the 2011 "100 Best Corporate Citizens List," which is published by CRO Magazine, and was included in the Corporate Social Responsibility Top 50 by Boston College (U.S.) Center for Corporate Citizenship. A list of select global awards and recognition is found here.

Beauty Fashion Home

Color Cosmetics Jewelry Home Products

Fragrances Watches Gifts and Decorative Products

Skincare Apparel

Toiletries/Personal Care Footwear

Accessories

Resource Center This information is provided as a resource to aid in research related to Avon's corporate responsibility. If you have questions after reviewing this information, please contact us.

l Glossary

l Avon Positions & Policies

l Memberships

l Videos & Presentations

l Awards and Recognition

l News Room

l Avon Corporate & Foundation Reports

l Take Our Online Survey

l Contact Us

Glossary This glossary is provided to help readers understand the meaning of words specific to the Avon business or not in common use among the general public. If you identify additional unique words found in this report that are not readily understood, please see the Contact Us page and submit your idea.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

A Top

Absolute Reduction Reduction of total emissions or other metric over time, regardless of other factors such as increase in sites or production

Associate An employee of Avon Products, Inc.

Avon Foundation for Women

Also known as Avon Products, Inc. Foundation, it was founded in 1955 and is the largest corporate philanthropy dedicated to women's causes globally. Today, the Avon Foundation focuses on the issues of breast cancer and domestic violence, as well as emergency and disaster relief. http://www.avonfoundation.org/

Avon Green Building Promise

Avon's commitment to design and build all new major construction and significant renovation projects to achieve LEED green certification or equivalent local standards. Avon facilities constructed under green standards are in Brazil, China, Colombia, the UK and US.

Avon Leadership Representative

Category of topselling Representatives who also recruit, train and manage other Sales Representatives and earn commission based on sales made by this "downline" as well as their own sales of Avon products.

Avon Palm Oil Promise Avon's commitment to help drive the demand and supply for sustainable palm oil to reduce deforestation, protect biodiversity and habitat through a leadership position in the purchase of GreenPalm certificates.

Avon Paper Promise Avon's commitment to promote sustainable forest use and protect forests, targeting to purchase 100% of its paper from certified and or postconsumer recycled content sources by 2020.

B Top

Beauty Products Cosmetics, fragrances, toiletries, and skincare products. Also referred to as CFT (for cosmetics, fragrance and toiletries).

BeautyRelated Products Avon's beautyrelated products include fashion products, jewelry, watches, apparel and accessories.

"Book and Claim" Certificates

A new way to promote sustainable production of essential commodities whereby suppliers produce sustainably created goods and receive certificates of proof which they can sell to other businesses who want to assure that they use sustainable raw

materials to create their own finished goods. http://www.bookandclaim.co.uk/

British Thermal Unit (BTU) The amount of heat energy required to raise the temperature of 1 pound of water by 1 degree Fahrenheit.

C Top

Carbon Footprint A term used to represent the energy and greenhouse gas impact of a person, place or thing.

Climate Change Refers to associated temperature changes, biodiversity loss, increased or decreased occurrence of natural cycles (precipitation and seasonal patterns) and changes in weather patterns

Corporate Responsibility Avon's commitment to environmental, social and governance excellence throughout the business

Corrective Action Plan A detailed list of activities, including timelines, that a vendor will perform to correct violations of Avon's Supplier Code of Conduct.

D Top

Deforestation The process of converting forested land for nonforest uses

Direct Selling A type of sales channel, where products are marketed directly to customers through sales Representatives rather than stores or other third parties

Domestic Violence Behaviors used by one person in a relationship to control the other. Examples include: name calling or put downs, withholding money, stopping a partner from seeing family and friends, and threatened or actual physical harm.

Downline The Sales Representatives in a unit who are recruited, trained, and mentored by an Avon Leadership Representative.

E Top

Ecosystem The living and non living interactions of a biological community

Emission Discharges into the atmosphere from smokestacks, vents, and surface areas of commercial or industrial facilities; from residential chimneys; and from motor vehicle, locomotive, or aircraft exhausts

Environmental Impact The effect of an activity on the physical environment, including land, water, air, and living creatures

Environmental Stewardship

The careful and responsible management of the environment and behaviors that impact the environment

F Top

Forest Stewardship Council (FSC)

A council created to drive the practice of sustainable forestry worldwide, in which loggers, foresters, environmentalists and sociologist come together to promote sustainable forestry

Fossil Fuels Fuel derived from ancient organic remains; e.g. peat, coal, crude oil, and natural gas

G Top

Global Forest and Trade Network (GFTN)

A network that links hundreds of companies, communities, NGO's and entrepreneurs together to form a positive force to save the world's most valuable and threatened forests

Global Product Safety Standard

Avon's universal standard and approach to ensuring the safety of its nearly 1,000 products made each year and marketed in more than 100 countries around the world

Green Ambassador A volunteer Avon employees chosen to develop and implement environmental initiatives in Avon offices, distribution centers and manufacturing facilities in addition to their fulltime responsibilities

Green Building Promise See Avon Green Building Promise

Greenhouse gas (GHG) A gas, such as carbon dioxide or methane, which contributes to potential climate change. Named for the impact of creating a greenhouse effect on the earth that traps heat.

H Top

Hello Green Tomorrow Avon's name for the company's commitment to environmental stewardship, including (1) internal environmental management programs and (2) external mobilization and fundraising to help end deforestation through the restoration of critically endangered tropical forests.

High Density Polyethylene (HDPE)

Dense plastic that delivers good moisture barrier and chemical resistance but allows gases to escape the product into the surrounding area easily, making it excellent for product packaging.

I Top

Intensity Reduction Reducing the ratio of emissions relative to a business metric over time (e.g., a specific number of units or tonnes of a product)

Intranet A privately maintained computer network that can be accessed only by authorized persons. Avon offers intranet systems for associates and for Sales Representatives to share information, news and updates.

L Top

Leadership Representative

See Avon Leadership Representative

LEED (Leadership in Energy and Environmental Design)

an internationally recognized green building certification system of the U.S. Green Building Council

M Top

Machine Guarding A barrier placed on machinery to prevent reaching into moving parts to prevent injuries

Moratorium A legally authorized period of delay in the performance of an action. As an example, Avon supports the moratorium on the creation of new

palm oil plantations in place of indigenous forests.

N Top

NonCFT Products Avon products that do not fall under the cosmetics, toiletries and fragrance (beauty) categories, including home, gift, toys, videos, fitness and decorative products

O Top

Old growth forests A forest significantly past the age of maturity of its dominant species

Operational Footprint The impact of the entire operation of the business, including manufacturing, distribution, and administration.

P Top

Palm Oil A yellow, fatty oil obtained from the crushed nuts of palm plants that mainly grow in Indonesia. It is a leading ingredient in food worldwide, and to a lesser degree is used in personal care products

Palm Oil Promise See Avon Palm Oil Promise

Paper Promise see Avon Paper Promise

Paraben A class of preservatives used since the 1920s in food, pharmaceuticals and personal care products to prevent fungal and bacterial contamination.

Post Consumer The final stage of the life cycle of a product when it is discarded by an end consumer. Materials are often recovered "post consumer" and recycled, including paper and plastics, and reused in the production of new products.

Product Lifecycle The stages a product goes through from the initial sourcing of raw materials to final disposal

R Top

Rainwater Harvesting The collection of rain water, from building roofs or elsewhere, for use in residential and/or commercial practices

Recycle The conversion of waste into useful material

Renewable Energy Credits (RECs)

Tradable commodities that represent proof that one megawatt hour of electricity was generated from a renewable source

Renewable Energy Source Energy resources that are able to restore themselves over a short period of time and do not diminish (examples: sun, wind, moving water, organic plant material, geothermal and waste products)

Roundtable on Sustainable Palm Oil (RSPO)

Formed in 2004, RSPO functions to promote the growth and use of sustainable palm oil products and links producers, processers, manufactures, retailers, banks, investors and environmental or nature conservation NGO's to the same common goal of promoting sustainable palm oil

S Top

Sales Representative An independent sales agent for Avon, who runs an

entrepreneurial business and sells direct to customers, but is not an employee of the company Solar Hot Water water that is heated using the energy captured from the sun

South American Atlantic Rainforest

Critically endangered rainforest on the eastern seaboard of South America, encompassing parts of Brazil, Paraguay and Argentina.

Stakeholder A person with an interest or concern in an organization, issue or action, for Avon, this includes, but is not limited to, associates, Sales Representatives, customers, shareholders, NGOs and governing bodies.

Sustainable The ability to meet society's present needs without compromising the ability of future generations to meet their own needs

T Top

Total Recordable Case (TRC)

The metric used to identify and manage the circumstances in which injuries and illness may occur, (Calculation: Division of all recordable cases/ number of hours worked)

Toxicology The study of the nature, effects, and detection of potentially undesirable chemicals and the promotion of subsequent safety standards

Trade Association Individuals and companies in a specific business or industry organized to promote common interest, such as Personal Care Products Council, COLIPA and Direct Selling Association.

U Top

Upline A Sales Representative who is participating in the Avon Leadership Opportunity and is recruiting, training, and mentoring a team of Representatives (downline). The Sales Leadership Representative who personally recruited and appointed another Representative is known as that Representative's upline.

V Top

Volatile Organic Compound (VOC)

Compounds that tend to easily enter the atmosphere and may influence climate change

Avon Positions & Policies Avon Products, Inc. is committed to offering safe and effective products and operating as a responsible corporate citizen in the more than 100 markets in which it does business. The company is proud of its 125year safety record and commitment to corporate responsibility.

Avon has the same universal standards of quality and safety worldwide and is fully compliant with all regulations established by scientific bodies and government agencies that oversee product ingredients and safety. Only ingredients that can be used safely are used in Avon products. Consumers can be assured that any product that carries the Avon name has undergone the most rigorous and thorough safety evaluation and can be used with the utmost confidence.

Across the business enterprise, Avon is committed to functioning in a responsible manner and to reducing its environmental impact. Policies have been developed in areas of sustainability that are especially material to the company's business.

Below are position statements and policies on some key issues of interest to Avon customers, Sales Representatives, associates and other stakeholders.

l Product Safety

l Aluminum

l Animal Welfare

l China Manufacturing

l Fragrance

l Green Buildings

l Jewelry

l Lipstick

l Nanotechnology

l Palm Oil

l Paper

l Parabens

l Phthalates

l Triclosan

If you have questions on topics not covered here please send an inquiry to [email protected].

The Safety of Avon Products: More than a Century of Safety, Quality and Effectiveness

Click here for a pdf of this statement.

Avon Products, Inc. is committed to offering safe and effective products in the more than 100 markets in which it does business around the world, and it is proud of its more than 125year safety record. Avon has the same universal standards of quality and safety worldwide and is fully compliant with all regulations established by scientific bodies and government agencies that oversee beauty and personal care product ingredients and safety. Avon customers can use the products with confidence.

Avon is aware of claims that certain cosmetic ingredients are harmful, or that trace contaminants are of an unsafe level, and some of the claims carry alarmist tones. When rumors circulate about an ingredient being unsafe, they spread quickly and can concern people unnecessarily. It is very easy for an individual or group to misunderstand a piece of data or take it out of context.

Only ingredients that can be used safely are used in Avon products. Every ingredient in every product must undergo a thorough and formal review, and the safety of every product is substantiated prior to product introduction. The Avon multidisciplinary team of scientists behind the process includes toxicologists, microbiologists and chemists, each of whom are experts in their field.

Equally important, Avon scientists evaluate any new information relevant to the safe use of its existing ingredients. If Avon determines through scientific inquiry that an ingredient could no longer be considered to be used safely, or if ever prohibited by law, the company would discontinue its use.

External scientific and government bodies that have issued statements or positions on the safety of ingredients over the years include the World Health Organization, US FDA, US Environmental Protection Agency, Health Canada, European Commission, Cosmetic Ingredient Review and many others. Studies supporting the safety of various ingredients have been published in peerreviewed journals such as Critical Reviews in Toxicology, the Journal of Applied Toxicology and Toxicology and Applied Pharmacology.

Consumers can be assured that any product that carries the Avon name has undergone rigorous and thorough safety evaluation and can be used with the utmost confidence.

Product ingredient information can be found at http://cosmeticsinfo.org/

For inquiries about the safety of Avon products, please contact [email protected].

Avon Products, Inc. and Consumer Safety: Antiperspirants and Aluminum Click here for a pdf of this statement.

Avon is committed to offering safe and effective products, and we offer a wide variety of product formulations to serve the needs of consumers in the more than 100 countries in which we do business. There is no evidence that aluminum, or any other ingredient used in Avon antiperspirants, cause adverse health effects. The ingredients in Avon’s antiperspirant and deodorant products comply with applicable government safety requirements in every country in which they are sold.

Aluminumbased raw materials are used extensively in cosmetics, pharmaceuticals and overthecounter (OTC) drug products. Many antiperspirant/deodorant products contain aluminumbased active ingredients such as aluminum chlorohydrate. These materials have been used safely for decades with no adverse effects. These ingredients been subjected to intense scrutiny and determined as safe by the U.S. Food and Drug Administration (FDA), the Japanese Ministry of Health and Welfare (MHW) and the Scientific Committee on Cosmetology and NonFood Products (SCCNFP) in the European Union.

According to the U.S. National Cancer Institute, "researchers at the NCI, a part of the National Institutes of Health, are not aware of any conclusive evidence linking the use of underarm antiperspirants or deodorants and the subsequent development of breast cancer. The U.S. Food and Drug Administration (FDA), which regulates food, cosmetics, medicines, and medical devices, also does not have any evidence or research data that ingredients in underarm antiperspirants or deodorants cause cancer." http://www.cancer.gov/cancertopics/factsheet/risk/apdeo

Aluminum is one of the most common elements in land, air, water. People are exposed to aluminum from a variety of sources on a daily basis. The primary route of human exposure is from ingestion of food and drink. By comparison, exposure from consumer products such as antiperspirants is negligible. There is no conclusive evidence that this exposure is of concern.

Consumers can be assured that any cosmetic or personal care product that carries the Avon name has undergone thorough safety evaluation and can be used with the utmost confidence.

Product ingredient information can be found at http://cosmeticsinfo.org/

For inquiries about the safety of Avon products, please contact [email protected].

Avon Products, Inc. & Consumer Safety: Commitment to Science…Respect for Animal Welfare Click here for a pdf of this statement.

The safety of our consumers is of primary concern to Avon. We are committed to selling only safe products, using only safe ingredients in our cosmetics products and complying with applicable regulations in the more than 100 countries in which Avon products are sold. Within this commitment, we also have a deep respect for animal welfare.

l In June 1989 Avon announced a permanent end to animal testing of our products, including testing done in outside laboratories. Avon was the first major cosmetic company in the world to end animal testing.

l For more than 20 years Avon has independently substantiated the safety of its products without animal testing.

l Avon does not conduct nor request animal testing in order to substantiate the safety or efficacy of any of its products or raw ingredients.

l Our approach to safety evaluation utilizes data from computational modeling, in vitro (test tube/cell culture) evaluation and clinical tests on human volunteers, as well as utilization of preexisting data.

l Some select products may be required by law in a few countries to undergo additional safety testing, which potentially includes animal testing, under the directive of a government or health agency. In these instances, Avon will first attempt to persuade the requesting authority to accept nonanimal test data. When those attempts are unsuccessful, Avon must abide by local laws and submit the products for additional testing. In 2011, this affected three tenths of one percent of Avon's products.

l Avon’s commitment is to work within a country, in partnership with other organizations, to help bring about positive change and the acceptance of nonanimal testing methods. Abandoning a market would deny us the opportunity to help drive towards a long term solution.

l Avon has been active in the development, implementation and acceptance of alternative test methods since the 1980's, working to identify and develop new testing alternatives with other cosmetic companies and with external organizations. Avon's Vice President, Product Safety & Integrity serves on the Scientific Advisory Panel of The Institute of In Vitro Sciences, Inc., a nonprofit research and testing organization dedicated to the advancement of in vitro (nonanimal) methods worldwide. Recently Avon became a Founding Sponsor of the American Society for Cellular Computational Toxicology. Similarly, Avon continues to support the Fund for the Replacement of Animals in Medical Experiments (FRAME) in the UK, the Center for Alternatives to Animal Testing at Johns Hopkins University in the US, and the European Partnership for Alternative Approaches to Animal Testing.

l Our efforts were recognized as far back as 1993 at the World Congress on Alternatives and Animal Use in the Life Sciences: Education, Research and Testing. Also in 1993, Avon was presented with a Recognition Award from the Johns Hopkins University Center for Alternatives to Animal Testing in the US for our dedication to the principles of the 3 R's (refinement, reduction, replacement) and the use of alternative tests for safety evaluation.

l Reflecting the same commitment to animal welfare, the Avon Foundation Breast Cancer Crusade does not fund medical research utilizing animals. Through 2011, the Avon Crusade raised more than $740 million for access to care and finding a cure for breast cancer.

Click here for a pdf of Q&A below.

Q&A Regarding Avon's Commitment to Animal Welfare

1. I thought Avon doesn’t conduct animal testing. Why has PETA put Avon’s name on the list of companies that do test on animals?

Avon’s commitment not to test on animals is the same as it has been for over twenty years – Avon neither conducts nor requests animal testing. Nothing has changed, and we continue to be in communication with PETA on the issue. Avon does business in over 100 countries, and some select products may be required by law in a few countries to undergo additional safety testing, which potentially includes animal testing, under the directive of a government or health agency. In these instances, Avon will first attempt to persuade the requesting authority to accept nonanimal test data. When those attempts are unsuccessful, Avon must abide by local laws and submit the products for additional testing. This is not part of Avon’s product safety testing process.

2. How many of your products are tested on animals?

In 2011, Avon offered approximately 9,000 products in over 100 countries, and in that year less than 0.3% of these products were tested on animals under the directives of the law in a few countries. Our goal is to get that number to zero. It is important to reinforce that Avon independently substantiates the safety of its products without any animal testing. The company’s entire global product safety program is built on the foundational principle of opposition to unnecessary animal testing and respect for animal welfare. In 1989 Avon was the first major cosmetic company in the world to establish a policy of no animal testing. The only reason any product is tested on animals is because some governments have yet to accept the use of scientifically valid alternative approaches to safety assessment.

3. If these legal requirements in a few countries are not new, and Avon’s position has not changed, why is the issue being raised now, and why has Avon moved from the PETA list of companies that do NOT test on animals to the list of companies that do?

Although we cannot speak for PETA, we believe they have decided to become more aggressive advocates in the global arena with a focus on changing laws in the handful of countries which require animal testing for some cosmetics. Avon and PETA share a common objective to persuade governments to accept scientifically valid alternative approaches to animal testing. Avon is working together with other global beauty companies to gain acceptance of alternatives to animal testing throughout the world. Avon is just one of a long list of global beauty companies that face the same issue. The only companies that do not are those which market their products in a limited number of countries.

4. Why doesn’t Avon stop selling products where animal testing may be required?

Over our more than 125 year history Avon has served as an agent of positive change for critical issues, including women’s empowerment, human rights, environmental sustainability, diversity, animal welfare and much more. When faced with challenging situations around the world, our commitment is to remain in the countries affected and work to bring about change, such as the acceptance of nonanimal testing methods. Abandoning a market does not help bring about a solution.

5. What is Avon doing globally to address this issue?

Avon has worked to advance alternatives to animal testing for decades. Avon’s Vice President of Product Safety & Integrity serves on the Scientific Advisory Panel of The Institute of the In Vitro Sciences, Inc., a nonprofit research and testing organization dedicated to the advancement of in vitro (nonanimal) methods worldwide (PETA is also a supporter of IIVS). Similarly, Avon continues to support research into alternatives conducted by the Fund for the Replacement of Animals in Medical Experiments (FRAME) in the United Kingdom, the Center for Alternatives to Animal Testing at Johns Hopkins University in the US, and the European Partnership for Alternative Approaches to Animal Testing. Recently, Avon became a Founding Sponsor of the American Society for Cellular Computational Toxicology. In addition, Avon works closely on this issue with other companies in the Beauty industry through the US Personal Care Products Council.

6. Can you specify which countries require animal testing?

As an individual corporation doing business responsibly around the world, Avon does not believe it is in a position to call out specific countries and governments. However, this information is available through various animal rights organizations such as the Humane Society and PETA.

7. I am opposed to animal testing. Can I still use Avon products with confidence?

You can be confident that Avon shares your commitment. Opposition to animal testing and respect for animal welfare has been a cornerstone of Avon’s product safety program since 1989. Avon does not conduct nor request animal testing, and Avon continues to actively work to advance the use of alternatives to animal testing worldwide. As noted, in 2011 less than 0.3% of our approximately 9,000 products were impacted by the government product testing requirements in a few markets, which is not part of Avon’s safety substantiation process. Our shared goal is to permanently end all requirements for animal testing wherever they exist, around the world.

For inquiries about the safety of Avon products, please contact [email protected].

Avon Products, Inc. and China Manufacturing Click here for a pdf of this statement.

Avon manufactures many cosmetic products in China in an Avonowned and operated facility. We maintain the same strict control over Avon’s China facility as we do with all our manufacturing sites throughout the world.

As one of the world’s leading beauty companies, operating for 125 years, consumer safety is Avon’s numberone priority. We are committed to selling only safe products, using only safe ingredients in our cosmetics products, and complying with applicable regulations in every country in which Avon products are sold.

The safety of every Avon product must be substantiated prior to introduction and sale to consumers. Every ingredient and product must be approved for safety prior to the product being sold, and every one of our manufacturing facilities is required to ensure that its products are manufactured in accordance with written specifications set by the Avon Research & Development Centre in the US for the raw ingredients, the manufacturing process and finished products. These products also undergo quality assurance testing.

All Avon products worldwide comply with the requirements of governing bodies. Our products only contain approved substances at their specified levels of use.

We continually evaluate information relevant to the safe use of ingredients. If we determined that an ingredient could no longer be considered safe, we would discontinue its use. In addition to our own safety reviews, we also consult with independent recognized experts in relevant scientific fields to ensure that our evaluations are appropriate and stateoftheart.

Consumers can be assured that any cosmetic or personal care product that carries the Avon name has undergone thorough safety evaluation and can be used with the utmost confidence.

Product ingredient information can be found at http://cosmeticsinfo.org/

For inquiries about the safety of Avon products, please contact [email protected].

Avon Products, Inc. and Consumer Safety: Fragrances and Fragrance Ingredients Click here for a pdf of this statement.

At Avon Products, Inc. a fundamental principle is to ensure that all products, including those that contain fragrances, are safe for consumer use. Fragrance ingredients are evaluated for safety prior to their use in consumer products. Various associations, including the International Fragrance Association (IFRA) and the Research Institute for Fragrance Materials (RIFM), develop, review and disseminate scientific data on the safe use of fragrance ingredients.

Avon has established fragrance guidelines that carefully limits the type of ingredients used, as well as the amounts and manner in which they are used in a cosmetic product. Avon only uses fragrances at concentrations and conditions which have been shown to be safe. We are confident that Avon products, when used as intended, do not present a health risk to the consumer.

As with all products, personal preference plays a role in determining the product of choice, including fragrance. Regardless of individual preferences, the safety of all Avon products, including those that are fragranced, is always the first priority. Avon products have been, and will continue to be, safe for consumers in the more than 100 markets in which we do business.

Consumers can be assured that any cosmetic, personal care or fragrance product that carries the Avon name has undergone thorough safety evaluation and can be used with the utmost confidence.

Product ingredient information can be found at http://cosmeticsinfo.org/

For inquiries about the safety of Avon products, please contact [email protected].

Avon Green Building Promise As part of the company's efforts to manage its environmental impacts, Avon strongly supports sustainable building practices. The company announced its Green Building Promise to formalize a longheld commitment to design and build all new major buildings in accordance with the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ certification standards. The Green Promise also applies to extensive renovations to existing facilities.

The LEED certification system promotes a comprehensive, holistic approach to sustainability, focusing on energy savings, water efficiency, carbon emissions reduction, and stewardship of natural resources. Every new Avon facility will meet "Green" LEED certification standards, and the company will target higher certification, such as "Gold," when possible. In countries where LEED certification does not exist, construction and renovation projects will meet equivalent standards. Through this Promise, Avon aims to mitigate and reduce its environmental impacts worldwide.

In April 2010, Avon's new distribution center in Zanesville, Ohio (U.S.) achieved LEED Gold certification, which is the company's first facility to achieve LEED certification. Goldlevel features of the facility include:

l Energyefficient features, such as lighting, equipment and solar hot water, which reduce energy consumption by more than 35 percent, avoiding 6,900 metric tons of CO2 annually

l Water conservation measures, including reuse of grey water and efficient landscaping, which are expected to reduce water consumption by 60 percent

l Use of recycled building materials, as well as recycling materials and waste during construction

l Purchase of renewable energy credits to offset 50 percent of annual emissions from estimated power consumption

l Installation of systems to achieve facilitywide recycling rate of 8085 percent

In addition to the Zanesville facility, the company has achieved or is targeting LEED certification or equivalent local standards for the following facilities:

l Northampton, United Kingdom –administrative headquarters; new construction achieved BREEAM Very Good New Build and awarded the U.K. Green Apple Award

l Sao Paulo, Brazil – Avon's largest distribution center worldwide; new construction received LEED Gold

l Guarne, Colombia – distribution center; new construction received LEED Gold, the first ever in the country

l Shanghai, China – research & development center; received LEED Platinum for interiors

l New York, NY – U.S. headquarters; retrofit of 777 Third Avenue; awarded LEED Gold for interiors in April 2012

Click here to read a recent press release about Avon's green buildings.

Click here to read about the new Shanghai R&D center.

For a video on the Avon Green Building Promise, please click here.

Moving forward

Avon will continue to adhere to LEED building standards for all new facilities and to identify, evaluate and apply opportunities to incorporate environmental improvements into existing buildings where feasible.

"Avon's LEED Gold certification of the Zanesville facility demonstrates tremendous green building leadership. The urgency of USGBC's mission has challenged the industry to move faster and reach further than ever before, and this serves as a prime example with just how much we can accomplish."

Rick Fedrizzi, President, CEO & Founding Chair of U.S. Green Building Council (USGBC)

Avon Products, Inc. and Consumer Safety: Jewelry & Cadmium Click here for a pdf of this statement.

Avon Products, Inc. jewelry is safe and consumers can wear it with confidence. In recent years claims have been circulated expressing concerns about the safety of cadmium in children's jewelry made in China. In 2009, before cadmium was regulated within the jewelry industry, Avon was proactive in developing a voluntary standard we believe offers protection to both children and adults

Cadmium is a natural element in the earth's crust that is usually found as a mineral combined with other elements. All soils and rocks contain some cadmium. Cadmium does not corrode easily and has many uses, including batteries, pigments, metal coatings, and plastics. Low levels are found in all foods.

The standard Avon set for cadmium is 70 to 98% less than other jewelry that was reported available for retail purchase at the time we took action. Avon chose this level based on testing jewelry items through a method used to evaluate coatings by the toy industry, which did have regulations for cadmium. The results yielded a level in Avon jewelry nearly 50% below the standard allowed for toys.

Every Avon jewelry product is evaluated for cadmium, and no product is permitted to go into production unless it meets our standards. For 125 years, Avon has offered consumers products that are effective and safe. We are continually evaluating our safety requirements and will continue to partner with the industry and our government to do what's best and safest for our valued customers.

Consumers can be assured that any cosmetic, personal care or fragrance product that carries the Avon name has undergone thorough safety evaluation and can be used with the utmost confidence.

Product ingredient information can be found at http://cosmeticsinfo.org/

For inquiries about the safety of Avon products, please contact [email protected]

Avon Products, Inc. and Consumer Safety: Lipstick Formulation Safety Click here for a pdf of this statement.

Avon lipsticks and all Avon products are safe and are formulated with the highest quality ingredients that are stringently evaluated for safety. Avon is proud of its more than125year safety record.

The ingredients used in Avon lipsticks meet or exceed all cosmetic quality standards, including those of the US Food &Drug Administration (FDA) and all relevant governing bodies in the more than 100 countries in which we conduct business.

Claims continue to circulate about the safety of lipstick, in particular the presence of lead, driven by a 2007 report from the US group "Campaign for Safe Cosmetics" (CSC). The concerns have been directly refuted twice by the US FDA.

In 2007 CSC tested about 20 lipsticks for the presence of lead. Many were found to have levels that were "undetectable," and some registered trace levels below the daily safe consumption level established by the World Health Organization for food. Nonetheless, CSC issued statements challenging the safety of lipstick and making alarming statements about lead.

The safety of lipsticks has been reconfirmed in twice since the 2007 report:

l In response to the CSC claims, the FDA tested the same lipsticks and found them to be completely safe. These findings were published in the July/August 2009 issue of the peerreviewed Journal of Cosmetic Science. Click here to view link

l The FDA repeated the tests and in December 2011 issued a report including this statement: In response to a number of inquiries FDA has received regarding reports of lead contamination in lipstick, we have developed and validated a method for analyzing lead content in currently marketed lipstick. Our results do not show levels of lead in lipstick that would pose a safety concern. Click here to view link

In color cosmetics such as lipstick, Avon uses only colors approved by the FDA and governing bodies, which assures consumers that our products comply with all relevant standards. Avon continually reviews our raw materials, and the same standards for quality and safety are applied worldwide.

Lead is found naturally in air, water and soil. Consequently, lead may also be found at extremely low trace levels in the raw ingredients used in formulating cosmetics. Lead is not intentionally added to cosmetics. To put this in perspective, the amount of lead to which a woman is exposed when using lipstick is hundreds of times less than the amount from eating, breathing or drinking water that meets drinking water standards of the US Environmental Protection Agency. These are truly insignificant amounts of lead.

Consumers can be assured that any cosmetic or personal care product that carries the Avon name has undergone thorough safety evaluation and can be used with the utmost confidence.

Product ingredient information can be found at http://cosmeticsinfo.org/

For information or questions about Avon visit responsibility.avoncompany.com or email [email protected].

Avon Products, Inc. and Consumer Safety: Nanotechnology Click here for a pdf of this statement.

Avon Products, Inc. uses a limited number of ingredients characterized as nanomaterials, each with an average particle size of less than 100 nanometers. These are primarily titanium dioxide or zinc oxide, which are used in a wide range of cosmetic products to provide protection against the ultraviolet (UV) rays of the sun.

Nanopigments, when used in sun products, protect the skin by deflecting UV light more effectively than larger sized particles. Sunscreens can now also rub in clear without leaving white marks thanks to nanotechnology making staying safe in the sun much more appealing to people and ultimately improved protection against UVinduced damage.

The safety of titanium dioxide and zinc oxide has long been established. Both are specifically approved for use in cosmetics by the European Commission, following their stringent rules surrounding manufacture and safety assessments. In addition, in 2006, Australia’s Therapeutic Goods Administration (TGA) conducted a comprehensive safety assessment of the use of titanium dioxide and zinc oxide nanoparticles in sunscreens and concluded there was no public health concern.

The safety of each of the ingredients characterized as a nanomaterial currently used by Avon has been individually and fully evaluated by our scientists before being permitted for use in cosmetic products. Avon's evaluation included a specific assessment of the potential for nanosized particles of these materials to be absorbed through the skin. We will continue to closely monitor the scientific literature on nanoparticles and, if we determine that a particular ingredient can no longer be considered to be used safely, we will discontinue its use.

Europe approved an updated cosmetic regulation [referred to as the recast to EU Cosmetic Directive] that will introduce new reporting requirements for all cosmetic products containing nanomaterials. This new regulation will be effective starting in 2013 and Avon will of course fully comply with the new EU requirements.

Consumers can be assured that any cosmetic or personal care product that carries the Avon name has undergone thorough safety evaluation and can be used with the utmost confidence.

Product ingredient information can be found at http://cosmeticsinfo.org/

For inquiries about the safety of Avon products, please contact [email protected].

Avon Palm Oil Promise Another issue impacting deforestation is the rapid expansion in the production of palm oil, driven by an increase in global demand for the ingredient for use in a variety of industries. Development of new palm oil plantations has resulted in the destruction and conversion of large areas of tropical forests and peatlands, especially in parts of Malaysia and Indonesia, the source of 85 percent of the world’s palm oil, where the indigenous forests and peat lands are vital to the ecosystem.

Though more than 80 percent of palm oil is used in food, it is also one of the natural oils used in cosmetics and personal care products.

Palm oil is produced from the fruit flesh of palm trees which grow in tropical regions. It is the most efficient source of oil per hectare of cultivated land by a significant margin, followed by coconut, which produces less than half as much oil per hectare. Palm oil is the most produced vegetable oil in the world in terms of production, with approximately 46 million tons per year, and palm kernel oil, derived from the palm fruit kernel, is an additional 5 million tons per year.

In response to the urgent and pressing global call for sustainable palm oil production, the Roundtable on Sustainable Palm Oil (RSPO) was formed in 2004 with the objective of promoting the growth and use of sustainable palm oil products through credible global sustainability standards developed through involvement of all stakeholders.

Although Avon is not a significant user of palm oil, the company recognizes the threat palm oil production poses and is committed to playing a leadership role and driving influence within its sphere. In March 2011, Avon adopted the Avon Palm Oil Promise, which outlines the company's guidelines for purchasing sustainably sourced palm oil.

The goals are to:

l Help drive demand for sustainable palm oil

l Increase the supply for sustainable palm oil

l Help maintain biodiversity and habitat for endangered species

l Support the current moratorium on the conversion of primary forests and peatland into palm oil plantations

Avon joined the RSPO to help continue the development, implementation and verification of credible global standards for sustainable palm oil. Through the Palm Oil Promise, Avon has become the first major beauty company to commit to 100 percent RSPOcertified palm oil through "book and claim" certificates designed to advance the production of sustainable palm oil.

In 2011, Avon will have supported 13,000 metric tons of sustainable palm kernel oil production through the purchase of "book and claim" certificates which were estimated to be

equivalent to 100 percent of the palm kernel oil and palm kernel oil derivatives it used in 2010.

Avon Palm Oil Promise: Complete Text I. VISION & PREAMBLE

At Avon Products, Inc. we believe business is responsible for "contributing to the wellbeing of society and the

environments in which it operates," as stated in our founding principles of 1886, and also for taking a leadership role where it can have positive influence on environmental and social issues relevant to its stakeholders.

Avon has worked internally to reduce the environmental impact of its operations, including the issues of energy consumption, water, waste, recycling, greenhouse gas emissions and paper use, along with a commitment to green building design. Externally, Avon has created the Hello Green Tomorrow program to empower and mobilize a "green army" to help end deforestation through fundraising and education, following the successful model of the company's leadership in the causes of breast cancer and domestic violence.

The issue of palm oil provides an opportunity for Avon to make a difference. Palm oil production has come under criticism for destroying rain forests and peatland across Southeast Asia, leading to habitat destruction and high carbon emissions. Although more than 80 percent of palm oil is used for food products, it is also one of many natural oils used in personal care products. While Avon is not a significant user of palm oil, the company has made the commitment to take a leadership position by purchasing GreenPalm certificates covering 100 percent of its global palm oil use. This will help drive demand for sustainable palm oil, increase the supply for sustainable palm oil, and help maintain biodiversity and habitat for endangered species.

GreenPalm is a certificate trading program endorsed by the Roundtable on Sustainable Palm Oil (RSPO), which seeks to increase the sustainable production of palm oil. In support of this commitment, Avon has joined the RSPO (http://rspo.org/) to help continue the development, implementation and verification of credible global standards for sustainable palm oil.

In line with our commitment to raising awareness and driving positive environmental and social change, Avon has developed the Palm Oil Promise, which comprises corporate guidelines for purchasing sustainably sourced palm oil.

II. THE PALM OIL PROMISE

The Avon Palm Oil Promise ensures that:

l Avon will source sustainable palm oil through the purchase of "book and claim" certificates estimated to be equivalent to 100 percent of the palm oil and palm oil derivatives it uses.

l Avon supports the current moratorium on the conversion of primary forests and peatland into palm oil plantations.

For more information visit www.hellogreentomorrow.com

Avon Paper Promise Avon is in a position to contribute to the development of solutions that conserve, protect and restore forests, and it has taken action to do so. As a significant consumer of paper products, the company can influence both supply and demand in the market.

In March 2010, in alignment with the external launch of Hello Green Tomorrow, Avon announced the Avon Paper Promise, a comprehensive policy for promoting responsible forest use and protecting forests. The policy was developed with input from several leading environmental NGOs, including World Wildlife Fund (WWF). In October 2010 Avon

joined (by invitation) the Global Forest & Trade Network (GFTN), WWF's initiative to eliminate illegal logging and drive improvements in the world's most valuable and threatened forests.

The key goals of the Avon Paper Promise are:

l Promote sustainable Forest Use. Protect Forests. Protect Old Growth, High Conservation or Endangered Forests and ecosystems.

l Reduce demands on Forests.

l Promote clean production practices.

l Promote continuous improvement

l Remain transparent to customers, shareholders, and other stakeholders.

Avon has set a target to purchase 100 percent of its paper from certified and/or postconsumer recycled content sources by 2020 with a certification preference of Forest Stewardship Council (FSC). As of 2011, 74

percent of Avon's brochure paper met the Avon Paper Promise commitments, and approximately 25 percent of paper used in Avon's product brochures is sourced from FSC certified forests.

Avon Paper Promise: Complete Text I. VISION & PREAMBLE

Avon Products, Inc. recognizes that business leadership carries a responsibility to the environment and the world's forests. The global pulp and paper industry is associated with significant environmental impacts, from forest degradation and destruction, to water and air pollution, including carbon dioxide and other greenhouse gases that contribute to climate change. At the same time, wood and paper are renewable natural resources that, when sourced under a responsible program, can represent a sustainable material choice. It is Avon's vision to achieve just this – sustainable use of forest resources. Because Avon is a significant consumer of paper products, Avon is positioned to influence both supply and demand in the market, and thus contribute to the development of environmental solutions that conserve, protect and restore forests.

"Avon's commitment to purchase responsibly sourced paper demonstrates its leadership in responding to the alarming rate of deforestation driven by demand for timber, paper and agricultural products. We are eager to combine Avon's global presence with WWF's experience to protect the world's forests and as a result, our planet, biodiversity and people's wellbeing."

Suzanne Apple, WWF's VP for Business & Industry

Avon fully supports those responsible forest management practices that both protect biodiversity and ecosystem integrity and result in longterm social and economic benefits to communities.

One of the principles that guide Avon is the commitment to meet fully the obligations of corporate citizenship by contributing to the wellbeing of society and the environment in which it functions. In support of this principle, and in particular to responsible brochure paper procurement, the Avon Paper Promise is to procure paper in a way that:

l Promotes sustainable Forest Use. Purchase 100% of our paper from certified and or post consumer recycled content sources by 2020 with a certification preference of FSC (Forest Stewardship Council); effectively not contributing to deforestation

l Protects Forests. Protect Old Growth, High Conservation or Endangered Forests and ecosystems.

l Reduces demands on Forests.

l Promotes clean production practices.

l Promotes continuous improvement, and is transparent to customers, shareholders, and other stakeholders.

Though we do not own or manage forests, we have a responsibility through our procurement practices to ensure sustainability of the world's forest resources. As such, we are committed to understanding the sources of our pulp fiber, transparency in sourcing, and ensuring that sustainable forest management practices are used. We realize the field of paper sourcing and certification is evolving and we are committed to working with our paper and other forest product suppliers and other stakeholders, on a continuous improvement basis, to ensure that all paper and forest products used in our operations originate from sources that are managed in a manner that is consistent with the conservation of natural resources, environmental protection, and the protection of the rights of indigenous peoples in local communities.

As a decentralized company, much of Avon's paper procurement is carried out by individual Regions. In some regions and countries where we operate, preferable sustainably certified options for paper will be limited, not yet available, or costprohibitive. Therefore, this policy is designed to be broad and flexible enough to accommodate the different paper options offered to individual Regions. That said, all Regions will be expected to analyze available options, conform to the intent of this policy, and reevaluate options to improve performance over time. In these regions, through our sourcing strategies, we will influence the creation of certified sources to fulfill future needs in support of our Paper Promise.

Avon hereby establishes the following policy commitments that sets forth our vision and provides principles that will guide our purchasing decisions, to ensure the sustainability of our business, and to promote the development of markets for environmentally responsible forest products. Our vision supports the entire paper and forest products lifecycle, from commercial timber management to manufacturing to reuse and recycling. Our scope includes all paper purchased by Avon with an immediate prioritization on our brochure paper purchasing given its significance relative to our other purchasing streams. Our practices are grounded within a framework of pragmatic and sound business disciplines.

II. SUSTAINABLE FOREST USE

Avon is committed to the following principles related to sustainable forestry:

l Procure paper from forests with independent 3rd party certification of responsible forest management, and from mills and distributors with chainofcustody certification.

l Forest growth at a rate equal to or faster than the rate at which it is being harvested in support of our paper needs.

l Independent verification that nonFSC papers from outside the priority conservation areas referenced in section III do not come from old growth, Endangered Forests, and the other types of controversial sources recognized by this paper promise.

l Postconsumer recycled content use.

In support of our vision, Avon has a goal of purchasing 100% of our wood fiber from an environmentally preferred mix of recycled fiber and or certified fiber by 2020 where available and cost effective (effectively not contributing to

deforestation). Avon will give preference to wood fiber from forests certified under FSC standards (Forest Stewardship Council) with a specific purchasing preference for paper that contains fiber from FSC FM certified forests (paper bearing the FSC "pure" label). The next level of preference will be given to paper that is partially from FSC FM certified forests (paper bearing the FSC "mixed sources" label) and or from mills or paper distributors or printers with independent FSC chainofcustody (CoC) certification. To support our vision, Avon will as necessary participate in socially and environmentally responsible afforestation and reforestation initiatives including REDD (reducing emissions from deforestation and forest degradation).

For purposes of this policy, "certified fiber" will mean the following five schemes: Forest Stewardship Council (FSC); Sustainable Forest Initiative (SFI); Canadian Standards Association's National Sustainable Forest Management Standards (CSA); Sistema Brasileiro de Certificacao Florestal (CERFLOR) in Brazil; and Program for the Endorsement of Forest Certification Schemes (PEFC) and other forest certification schemes meeting broadly recognized performance based criteria.

Sourcing recycled fiber can reduce overall pressure on natural forests and other important natural resources, especially when fibers from postconsumer wastes are used in paper production. Avon regards recycled fiber as an environmentally responsible fiber and will pursue opportunities to increase the use of recycled fiber as appropriate. In selecting recycled fiber, Avon's intent will be to only purchase postconsumer sources of recycled fiber. Avon will support efforts of suppliers, governmental authorities and nongovernmental organizations to increase wastepaper collection rates and improve recycled fiber quality.

Paper manufacturing is a resourceintensive process that can lead to air and water emissions that impact overall environmental quality.

l Avon will purchase paper only from suppliers that meet or go beyond legal environmental performance requirements for pollution control.

l Avon encourages its suppliers to monitor and reduce overall emissions by adopting the latest technologies that minimize pollution impacts.

l Avon will not purchase papers manufactured using elemental chlorine bleaching processes and encourages its suppliers to move toward process chlorine free, elemental chlorine free, and or totally chlorine free bleaching.

III. PROTECTING FORESTS

Avon recognizes the need to support and encourage the adoption of environmentally and socially responsible practices to ensure that fiber used in our paper is sourced from well managed timberlands, and that land use choices and management practices contribute to the conservation of natural resources and environmental protection. Avon will use commercially viable, environmentally responsible suppliers.

l Conservation of Endangered Forests and Protection of Biodiversity and Ecosystems: Avon will give preference to suppliers who work toward conservation of endangered forests and the protection of biodiversity and ecosystems contained within these forests. Avon will source paper only from suppliers that are believed to share the corporations respect for fundamental human rights. Avon also recognizes that certain regions have been identified as priority regions for forest conservation and biodiversity by the conservation science community and other stakeholders, and will work toward phasing out and finding suitable alternatives to any fiber sourced from these regions, specifically:

n Endangered Forests and ecosystems.

n Forests harboring a rich array of biodiversity that have been heavily impacted by human activity

n Global forest types that are naturally rare and threatened and mapped as "G1" (globally ranked criticlly imperiled) or "G2" (globally ranked imperiled) communities by NatureServe/Natural Heritage Network

n Forested wilderness areas, including those that are rich in species diversity, contain threatened species , or provide critical ecosystem services

n Old growth forests that have not previously been subject to commercial logging and conversion of natural forests to plantations and nonforest land uses

n Areas mapped by the government as park or conservation reserve where commercial logging is prohibited

n Illegally harvested wood

n Conflict timber

Avon is committed to work with suppliers that do not have 3rd party independent certification to ensure the source of the paper does not come from the aforementioned areas. Additionally, Avon will help protect endangered forests in regions where its suppliers source forest and paper products, and recognizes the following conservation priority regions: Canadian boreal forests, U.S. National Forests, Canadian and U.S. coastal and inland temperate rainforests, Indonesia, Chile, Atlantic forests of Brazil, and the Cumberland Plateau of the U.S. where commercial fiber production for pulp and paper plays a defining role in land use choices and natural resource management. In these conservation priority regions, it is Avon's intent to only use FSC certified material.

Avon will give preference to paper suppliers who supplement their land management plans with natural forest restoration and recovery initiatives, particularly in areas where most of the original extent of habitat has been lost and where continuing deforestation pressures threaten large numbers of species with extinction.

IV. REDUCING DEMANDS ON FORESTS

Avon is committed to reducing demand on the world's forests and other resources. Avon is focused on source reduction in the long term.

Avon is committed to continue to optimize our overall use of paper in every area of our business. Our options includes optimizing distribution methodologies, basis weight reductions, reductions in brochure size, and increasing the use of electronic media as a replacement for paper based products. To this end, we will continue to leverage technology and establish paperless processes wherever possible.

As part of our continuous improvement, Avon has already implemented several key initiatives designed to significantly reduce paper usage at our locations worldwide including:

l Conversion to online and mobile phone product orders from paper order forms, with an average of nearly 42% of orders being placed on line in 2009. In North American in 2009, approximately 75% of 2009 orders have been placed online, saving over 350 tons of paper, followed by Central and Eastern Europe at 71%.

l Double sided printing for paperwork such as reports and invoices, and double sided printers installed in offices

Additionally, Avon encourages suppliers to conduct research into the use of alternate fiber sources.

V. REPORTING & IMPLEMENTATION

Over the next three years, Avon will report on its activities to implement this policy to interested stakeholders through Avon's Sustainability report. Avon will implement a verification system for its wood fiber procurement activities to meet the objective of using environmentally responsible fiber and applying its stated preferences in accordance with this policy. Over the next three years, Avon will track and report the amount of wood fiber it purchases from suppliers certified under each of the forest certification systems. Avon will conduct periodic consultations with external stakeholders to review emerging issues related to environmentally responsible fiber and Avon's implementation of its Paper Promise.

Avon will encourage its suppliers to adopt the FSC forest certification scheme and to take other actions to increase the availability of wood fiber certified to FSC standards. Avon will review the integrity of environmental and social responsibility practices followed by its paper suppliers and consider the supplier's practices as part of the initial supplier selection process and when supply agreements are renewed. Avon will inspect its wood fiber suppliers periodically and require its suppliers to report regularly concerning their compliance with this policy. In the event that a supplier to Avon does not have certification of its forest lands or wood fiber procurement activities or the supplier is sourcing material in conflict with our protecting forests objectives, that supplier will be given reasonable time to achieve certification. If a supplier is not in compliance with any applicable provisions of this policy, Avon will

take appropriate action to address noncompliance, which may include (i) an action plan for compliance or (ii) termination or nonrenewal of the supply contract.

Avon Products, Inc. and Consumer Safety: Parabens Click here for a pdf of this statement.

For 125 years, Avon has led the way in beauty product research and development, with an impressive track record for safety – the longest in the industry. No ingredient is added to an Avon product unless it is safe.

Parabens are a family of compounds which help prevent fungal and bacterial contamination that have been used safely since the 1920s in a wide variety of consumer products, including food, drugs, cosmetics and personal care products. Because of their long established history of safe use, parabens are used by the vast majority of global cosmetics companies as an important health and safety precaution. Some attributes that make parabens especially safe include the fact that they are poorly absorbed through the skin, have low toxicity and are excreted quickly.

A few studies have suggested that parabens may have very weak "estrogenic" activity. Separately, some naturallyoccurring estrogens, such as estradiol, are known to increase the growth of tumors. While it is understandable how people might interpret this as a link between parabens and cancer, there is no widelyaccepted scientific evidence to support this. Numerous studies have shown that parabens do not act like estrogen in the body. Parabens are 10,000 to 100,000 times less active than estrogens produced in the human body. By comparison, plant estrogens (phytoestrogens) found in dozens of foods such as broccoli, grapes, oats, coffee and potatoes are 1,000 to 10,000 times more active than the parabens in cosmetics.

The main parabens used as preservatives in cosmetics come in two forms: "short chain" (methyland ethyl paraben) and "long chain" (propyl and butyl paraben). There is also some limited use of isobutyl and isopropyl parabens, also known as "branched chain parabens".

Government scientists and other experts have concluded that scientific evidence unequivocally supports the safety of parabens. The organizations that have investigated the safety of parabens include the World Health Organization, the U.S. Food and Drug Administration, Anvisa in Brazil, and the EU Scientific Committee on Consumer Safety (SCCS), a committee of experts that advises the European Commission. Each of these organizations has concluded that parabens can be used safely and are important ingredients in preventing fungal and bacterial contamination of cosmetics.

Avon will not compromise our 125year history of safety. We will continue to take appropriate action to protect the safety of our consumers and the quality of our products, as well as offer consumer choice. Consistent with our unwavering commitment to safety but in recognition of the fact that some consumers have a preference for products without parabens, Avon has taken several steps:

l Starting in 2002, Avon began eliminating parabens from some of our products where there are safe alternatives. Today, these parabenfree products include lip products; women's body care; antiperspirants and deodorants; and children's products.

l Beginning in 2006, Avon made the decision to develop new products without using isobutyl and isopropyl parabens. In 2010, Avon made the decision to no longer use propyl and butyl parabens in new product development.

Consumers can continue to use Avon products with confidence, and can make their own choices regarding parabens (or any other ingredients) by reading the label of Avon products. Products containing parabens are clearly labeled in the ingredient listing, which is strictly guided by law.

Product ingredient information can be found at http://cosmeticsinfo.org/ For inquiries about the safety of Avon products, please contact [email protected]

Avon Products, Inc. and Consumer Safety: Phthalates Click here for a pdf of this statement.

Avon Products, Inc. is committed to offering safe and effective products in the more than 100 markets in which it does business around the world, and it is proud of its 125year safety record.

Phthalates refers to a class of chemicals that are used as plasticizers and solvents in a wide variety of products. Two of these are diethyl phthalate (DEP) and dibutyl phthalate (DBP). Avon has taken action regarding both of these.

Avon used DEP in the past in very small amounts as components of fragrance oils. Although DEP has been extensively studied and there is a large body of evidence to support its safe use in cosmetic products, Avon announced in 2005 that the company would no longer use DEP in the development of new fragrances.

Avon had used DBP in some of its nail polishes, but the vast majority of Avon nail product formulations never contained phthalates, including Avon Color NailWear and Speed Dry. As per 2004 European Union (EU) regulatory requirements, Avon removed DBP from all of its products. It is important to understand that the European ban on DBP was not based on a specific risk assessment for cosmetic products.

This policy regarding phthalates is driven by a wish to allay public concern and does not reflect concern with the safe use of the ingredients. The US Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), Health Canada, various other scientific bodies in Europe and Japan as well as the U.S. Cosmetic Ingredient Review Board have examined the use of phthalates in cosmetics and have not restricted their use.

Consumers can be assured that any cosmetic or personal care product that carries the Avon name has undergone thorough safety evaluation and can be used with the utmost confidence.

Product ingredient information can be found at http://cosmeticsinfo.org/

For inquiries about the safety of Avon products, please contact [email protected].

Avon Products, Inc. and Consumer Safety: Triclosan Click here for a pdf of this statement.

Avon is committed to offering safe and effective products in the more than 100 markets in which we do business around the world, and the same standards for quality and safety are applied worldwide. We are proud of our 125year safety record.

Triclosan is an antimicrobial used as an active ingredient in skin and oral care overthecounter (OTC) drug products and as a preservative in waterbased formulations of a range of skin, bath, and hair care products. It effectively inhibits the growth of bacteria and helps prevent the spread of germs, reduces the risk of infections, controls odors, and can prevent certain dental diseases. Avon adheres to product labeling regulations and clearly lists triclosan on the products in which it is used, allowing consumers to make an informed decision on their product choices when seeking antimicrobial products. Triclosan and its applications have undergone reviews and evaluations by regulatory authorities around the world and have been thoroughly investigated for safety by Avon. The U.S. Food and Drug Administration (FDA) permits the use of triclosan in antibacterial soaps and as an antiseptic drug preparation. The European Scientific Steering Committee (SSC) concluded that triclosan has been safely used for many years across a broad range of dental, medical, cosmetic and household products.

In 2008, the U.S. Environmental Protection Agency (EPA) evaluated the existing scientific data and concluded that there were no risks of concern from the exposures considered in their review.

The U.S. FDA has announced that they are engaged in an ongoing scientific and regulatory review of the use of triclosan in FDAregulated products and expect to communicate their finding to the public in winter 2012. In their announcement, the FDA noted that “triclosan is not currently known to be hazardous to humans” and the FDA “does not have sufficient safety evidence to recommend changing consumer use of products that contain triclosan at this time.”

Avon will continue to closely monitor the FDA’s review and the scientific literature on triclosan and, if we determine that it can no longer be considered to be used safely, we will discontinue its use. Avon will implement whatever measures necessary to protect the safety of our customers. Consumers can continue to use Avon products with confidence. Consumers can be assured that any cosmetic or personal care product that carries the Avon name has undergone thorough safety evaluation and can be used with the utmost confidence.

Product ingredient information can be found at http://cosmeticsinfo.org/

For inquiries about the safety of Avon products, please contact [email protected].

Memberships Avon Products, Inc. is a corporate member or sponsor of organizations including:

l American Chamber of Commerce to the European Union (AmCham EU)

l American Society of Testing and Materials

l Boston College Center for Corporate Citizenship

l Business for Innovative Climate & Energy Policy (BICEP).

l Business for Social Responsibility (BSR)

l Chief Responsibility Officer Association (CROA)

l Direct Selling Association

l European Direct Selling Association (SELDIA)

l Fashion Jewelry Trade Association

l Fragrance Foundation

l National Association for Female Executives

l Net Impact

l O.R.C. Workforce Opportunity Network

l O.C.A. Organization for Asian Pacific Americans

l Personal Care Products Council

l Roundtable for Sustainable Palm Oil

l Sustainable Packaging Coalition

l Toy Industry Association

l U.S. Chamber of Commerce

l U.S. Council for International Business (USCIB)

l U.S. Green Building Council

l Women's Network For A Sustainable Future

l World Federation of Direct Selling Associations

l World Wildlife Fund Global Forest &Trade Network

Avon associates play leadership roles in organizations that relate to the company's industry or mission, such as:

l Accessory Council

l Catalyst

l Cosmetic Executive Women (CEW) and CEW Foundation

l Cotton Board

l Fashion Group International

l Forte Foundation

l Girl Scout Council of Greater New York

l Harlem (NY) YMCA

l Industry Trade Advisory Committee on Textile and Clothing

l Laboratory Institute of Merchandising (NY)

l Partnership Against Domestic Violence (Atlanta)

l Rockland County (NY) Economic Development Corporation

l Sanctuary for Families (NY)

l Society of Chemical Industry

l TRI/Princeton (independent, nonprofit research organization)

Videos and Presentations Andrea Jung highlights – Business for Social Responsibility Conference, November 2010

Avon Empowerment Booklet

Avon Foundation Video 2010

Avon Foundation Gala Video 2010

Avon Global Ambassador Reese Witherspoon Signs Petition to Call for Better Services for Women Experiencing Domestic Violence at the Houses of Parliament (U.K.)

Avon’s Global Research and Development Center in Suffern, New York

Avon Walk for Breast Cancer

Avon Walk "Thank You" Video 2011

Family Justice Center Partnership (U.S.)

Feed the Children Video 2010

Fergie at the Avon Walk for Breast Cancer Santa Barbara, CA September 2010

Green Building Promise Video 2012

Hello Green Tomorrow Impact Video 2012 English Spanish

Hello Green Tomorrow Global Video 2010

Hello Green Tomorrow Philippines

Hello Green Tomorrow Photo Gallery: Associate Engagement Events 2010

International Women’s Day, Washington D.C., 2009: New Partnerships to End Violence Against Women

International Women's Day, Washington, D.C., 2010: Avon and the U.S. Department of State

International Women's Day, Washington, D.C., 2010: Avon and Vital Voices

mark Fair Trade Body Collection

San Francisco General Hospital, 2009: Reese Witherspoon Promotes Breast Cancer Research and Care

Speak Out Against Domestic Violence

Success Without Limits: the Avon Opportunity

UNIFESP’s Gynecology Department, São Paulo, Brazil, 2010: Patrick Dempsey Announces Donation by the Instituto Avon of a Digital Mammography Unit

Awards and Recognition fOur success is measured by our leadership in the global marketplace and in the human spirit: how many lives we change, how many doors we open.

Avon strives to be an industry leader in many facets of corporate responsibility. The following table lists some of our acknowledgments in just a few of the more than 100 countries in which we do business:

Award Name Year(s) Presenting Organization

United States and Corporate Awards

Global Corporate Reputation Index Top 25 2012 BursonMarsteller and others. Presented at the 2012 World Economic Forum in Davos.

Best Global Brands (#71 in 2012)

20012012 Interbrand (in collaboration with Businessweek through 2009)

Best Global Green Brands (#37 in 2012)

20112012 Interbrand/Deloitte

100 Most Innovative Companies (#47 in 2011)

2011 Forbes magazine

100 Best Corporate Citizens (#16 in 2011)

2005, 2007, 2008, 2009, 2010, 2011

The CRO magazine

World's 20 Most Powerful Women in Business (Avon CEO Sheri McCoy, #15 in 2012)

2012 Forbes magazine

World's 100 Most Powerful Women (Avon CEO Sheri McCoy, #39 in 2012)

2012 Forbes magazine

50 Most Powerful Women in Business (Avon CEO Sheri McCoy, #17 in 2012)

2005–2012 Fortune magazine

Most Powerful Moms of 2012 (Avon CEO Sheri McCoy)

2012 Working Mother magazine

Corporate Equality Index (Rated 100%, qualifying as one of the Human Rights Campaign Foundation's "Best Places to Work")

20122013 Human Rights Campaign Foundation

Clinton Global Citizen Award in the Corporate Sector 2010 President Bill Clinton and the Clinton Global Initiative

Top 50 Women in World Business (Avon Chairman and CEO Andrea Jung, #2 in 2010)

20092010 Financial Times

Included in the “Green Ranking” of the largest 500 American companies

20092012 Newsweek magazine

Corporate Social Responsibility Index Top 50 2010, 2011 Boston College Center for Corporate Citizenship and Reputation Institute

America’s Most Admired Companies 2006, 2007 Fortune magazine

Top Companies for Female Executives 2004, 2005, 2009, 2010

National Association of Female Executives (NAFE)

Working Mother 100 Best Companies 2005, 2006 Working Mother magazine

50 Best Companies for Latinas 2005, 2006 Latina Style magazine

50 Best Companies for Minorities 2005 Fortune magazine

50 Women to Watch (Avon Chairman and CEO Andrea Jung)

2005–2007 Wall Street Journal

Do Good Award for Avon Hello Green Tomorrow 2010 Ladies Home Journal magazine

Halo Award for Avon Hello Green Tomorrow 2011 Cause Marketing Forum

Argentina

Recognition for commitment to “Look Good… Feel Better,” a program helping women living with cancer to maintain their selfesteem and selfconfidence during treatment

2005 The Cosmetics, Toiletry, and Fragrance Association

Australia

Evolution Award: for efforts to reduce paper waste, use recyclable materials and cut unnecessary packaging

2006 Packaging magazine

Brazil

Brazilian Benchmarking Environmental Program 2008 Mais Projetos

Best Practices in the Dissemination or Application of the Maria da Penha Act. See press release

2010 Government of Brazil

Bulgaria

BAPRA Award for Breast Cancer Awareness Campaign. For more information, click here

2010 Bulgarian Association of Public Relations Agencies

China

Top 100 Best Employers in China 2008 World Executive Weekly magazine

The Most Chinese Heart Multinational Company Award 2007 China Foreign Capital magazine

Leading Business Example in China Award 2005 Economy Observe Research Institute

100 Best Employers in Ten Industries, Annual HR Award 2005 AsiaPacific Human Resources Research Association in association with New Fortune and Wisdom magazine

Environmental Protection Award: for Avon’s waste water expansion project. For more information,

2005, 2010 Guangdong Environmental Protection Industry Association

China National Environmental Protection Operative Technology Demonstration Project.

2005 Guangdong Environmental Protection Industry Association

Czech Republic

Grand Prix for Breast Cancer Campaign "Fight" 2008 FLE Media Award

Finland

Direct Selling Company of the Year [See press release] 2009 Finland Direct Selling Association

Ireland

High Commendation: for corporate social responsibility 2008 Allianz Business to Arts Awards

Most Inspirational Direct Selling Company 2007 Direct Selling Association of Ireland

Lithuania

Swedish Business Award (See press release ) 2009 Swedish Trade Council and the Embassy of Sweden

Malaysia

Certificate of Commendation: for Advocacy of Ethical Business Practices

2006 Malaysian Ministry of Domestic Trade and Consumer Affairs

Mexico

Corporate Social Responsibility Award 2009, 2010 CSR Alliance and the Mexican Philanthropy Center

Best Product Innovation and Social Responsibility – Direct Marketing Category

2009 NEO magazine

Senate of the Republic Medal: for Avon’s commitment to fighting breast cancer in Mexico

2007 LX Legislature of the Mexican Congress

Silver Shell Award: Domestic Violence Campaign “Golpe” (Punch)

2006 VI Latin American Awards for Social Work

Peru

Company of the Year: based on six criteria including performance and sustainability

2005, 2007, 2008

Civil Association of Peruvian Enterprises

Romania

Oskar Award: recognition for contributing positively to the business, educational, and social welfare of Romania

2005 Capital, Romania’s most influential financial publication

Russia

Avon Russia Manufacturing named “Best Labour Safety and Occupational Health Organization” among industrial companies in Moscow region ( click here to read more)

2009 Labour and Social Service Ministry of Moscow

Integrated Management System (IMS) certification granted to Avon Russia Manufacturing ( click here to read more)

2009 ISO 9001:2008/ Bureau Veritas Certification

Brand Index Award: for top social program 2005 The Brand Design Media Group

South Africa

TGI Icon Brands 20112012 Target Group Index South Africa

Generation Next Awards 20112012 Sunday Times (From the Sunday Times Generation Next Brand Survey)

#1 Beauty and Cosmetics Brand, Sunday Times Top Brands Awards

20112012 Sunday Times (From the Sunday Times Top Brands Survey)

Vision for Tomorrow Award (*Avon Justine in South Africa received two awards in 2012, one for the

iThemba Crusade of Hope and one for its Speak Out Against Domestic

Violence program.)

20082012 The Direct Selling Association of South Africa

Business Ethics Award 2007, 2008 Direct Selling Association of South Africa

Education for Life Award: for investment in Representative education and training programs

2008 Direct Selling Association of South Africa

Spain

Best Place to Work 20052007 Great Place to Work Institute

Award for best corporate social responsibility communication strategy

2008 Internal Communication Observatory

Thailand

Trophy for aid to impoverished breast cancer patients 2006 Thai Ministry of Public Health

Breast Cancer Recognition Award 2005 Thai National Cancer Institute

Turkey

Golden Quality Award 2008 Consumer magazine and fikrimuhim.com

Most Popular Social Responsibility Projects: Avon ranked 9th 2007 Capital magazine

Respect for Human Award 2006, 2007 Kariyer.net

Ukraine

"Brand of the Year" (Ukraine) 20082010 AllUkrainian Competition "Brand of the Year"

United Kingdom

Silver Jubilee Big Tick Award for longterm sustainable business partnership

2007 Business in the Community

Venezuela

Arturo Uslar Pietri Award for social responsibility (See press release)

2010 Venezuelan National Journalist Organization and the Casa Arturo Uslar Pietri Foundation

Corporate Responsibility News 2010 | 2009

November 30, 2012 Avon and Vital Voices Convene Global Partnership to End Violence Against Women Summit to Foster Collaboration and Solutions

November 27, 2012 Avon Foundationfunded ‘Communications XChange’ Goes Live: A Global Digital Library on Ending Violence Against Women and Children

November 26, 2012 Avon Part of the “New Normal” in Corporate America when It Comes to LGBT Equality in the Workplace

November 14, 2012 Four Winners of Avon FoundationFunded Global App Challenge to Prevent Domestic Violence Announced

October 28, 2012 Annual Charlotte Avon Walk for Breast Cancer Raises More Than $1.75 Million

October 22, 2012 10th Annual New York Avon Walk for Breast Cancer Raises More Than $8.3 Million

October 4, 2012 Avon Named to "100 Best Global Brands" List

October 2, 2012 Inaugural Class of Avon Global Breast Cancer Clinical Scholars Arrive in U.S. to Learn Advanced Skills and Techniques to help Women in Home Countries

October 1, 2012 Five Ways You Can Get Involved During Breast Cancer Awareness Month

September 24, 2012 AwardWinning Singer Fergie Cheers on Thousands of Participants at the Avon Walk for Breast Cancer Santa Barbara

September 10, 2012 Avon Among Best AdoptionFriendly Workplaces

September 5, 2012 Avon Hello Green Tomorrow Makes $1 Million Contribution, Bringing Program Total to More Than $4.5 million since 2010

July 31, 2012 Avon, Women & the Olympics: Driving a Marathon Revolution

July 8, 2012 10th Annual Avon Walk for Breast Cancer San Francisco Raises $4.8 Million

June 27, 2012 Avon Products, Inc. Launches Corporate Responsibility Blog

June 25, 2012 Avon Ranked One of Top 50 Global Green Brands

June 24, 2012 Eighth Annual Avon Walk for Breast Cancer Rocky Mountains Raises More Than $1.7 Million

June 3, 2012 Tenth Annual Avon Walk for Breast Cancer Chicago Raises $6.3 Million

May 31, 2012 Avon Hello Green Tomorrow Marks World Environment Day with New Fundraising Products to Help End Deforestation

May 21, 2012 Avon CEO Sheri McCoy Named to Working Mother's "Most Powerful Moms" List

May 20, 2012 Tenth Annual Avon Walk for Breast Cancer Boston Raises $4.8 Million

May 15, 2012 Leading Cosmetics Companies Launch Sustainable Packaging Roundtable

May 6, 2012 Tenth Annual Avon Walk for Breast Cancer Washington, D.C. Raises $5 Million

April 23, 2012 Avon Saudi Arabia Holds First Speak Out Against Domestic Violence Event

April 22, 2012 Fifth Annual Avon Walk for Breast Cancer Houston Raises $2 Million

April 20, 2012 New Hello Green Tomorrow Impact Video marks Earth Day English Spanish

April 19, 2012 U.S. Cosmetic Companies Support Groundbreaking Safety Legislation

April 12 and March 28, 2012

Cosmetics Design 2part interview on Avon sustainability Part 1 Part 2

April 9, 2012 Avon Board of Directors Announces Appointment of Sherilyn S. (Sheri) McCoy as Chief Executive Officer of Avon

Mar 21, 2012 Study on Racial Disparity in Breast Cancer Mortality Presented at Avon Foundation Breast Cancer Forum

March 7, 2012 m.powerment by mark. Reaches $1 Million in Funds Raised

March 5, 2012 Reese Witherspoon Announces New Avon Empowerment Necklace to Raise Funds to End Violence Against Women in Recognition of International Women's Day

February 28, 2012 Reese Witherspoon Presents Avon Global Communications Awards for Speaking Out About Violence Against Women

January 11, 2012 Avon Receives “Best Places to Work for LGBT Equality” Designation

December 28, 2011 Avon Foundation for Women Announces Avon Walk for Breast Cancer’s 10th Birthday Season

December 22, 2011 Avon interview featured in Natural Resources Defense Council OnEarth online magazine

October 17, 2011 Reese Witherspoon Recognizes Breast Cancer Awareness Month in New York; Announces Avon Global Breast Cancer Scholars Program

October 11, 2011 Avon Foundation for Women and U.S. Department of State Convene Second Breast Cancer Global Congress

October 1, 2011 Avon Marks Nearly 20 Years of Fighting Breast Cancer

September 18, 2011 Avon Walk for Breast Cancer Santa Barbara Raises $4.6 Million

September 14, 2011 Avon Products Debuts “Green” U.S. Headquarters in New York City

September 13, 2011 Avon Foundation for Women Donates $100,000 to Five ChicagoArea Domestic Violence Agencies at 1st Chicago Walk the Course Against Domestic ViolenceChicagoland

August 30, 2011 Avon's Distribution Centers in Colombia and Brazil Receive LEED® Gold Certification

July 10, 2011 Ninth Annual Avon Walk for Breast Cancer San Francisco Raises $4.2 Million

June 30, 2011 $60, 000 Avon Global Believe Fund Grant Awarded to Domestic Violence Agency in Argentina

June 28, 2011 Avon Global Believe Fund Grants Awarded to Two Brazil NGOs that Support Victims of Domestic Violence

June 26, 2011 Seventh Annual Avon Walk for Breast Cancer Rocky Mountains Raises More Than $1.9 Million

June 15, 2011 Avon Foundation for Women Speak Out Against Domestic Violence Program Awards $500,000 to fund 51 Domestic Violence Organizations Across the United States and Puerto Rico

June 5, 2011 Ninth Annual Avon Walk for Breast Cancer Chicago Raises $6.1 Million

June 3, 2011 Avon Products, Inc. Honored for Doing Well by Doing Good at Annual Cause Marketing Forum

May 23, 2011 Avon Responds to Local Communities Affected by Southern Tornado Disasters with Avon Cares Tour

May 15, 2011 Ninth Annual Avon Walk for Breast Cancer Boston Raises More Than $5.2 Million

May 12, 2011 Avon U.K. Adds to Its Green Credentials with Environmental Award

May 3, 2011 Third Annual Walk the Course Against Domestic Violence Brings Out More than 1,000 CharlotteArea Walkers and Raises More than $100,000

May 1, 2011 Ninth Annual Avon Walk for Breast Cancer Washington, D.C. Raises More Than $5 Million

April 17, 2011 Fourth Annual Avon Walk for Breast Cancer Houston Raises More Than $1.8 Million

March 31, 2011 Avon Hello Green Tomorrow Marks Earth Month With New Fundraising Product and “Palm Oil Promise” to Help “Plant a Future”

March 3, 2011 Corporate Responsibility Magazine's "100 Best Corporate Citizens List" Chronicles New Rules for a New Market, Avon Ranked #16

February 9, 2011 Avon Foundation for Women Awards $60,000 Grant to Haven Hills in California's San Fernando Valley

February 3, 2011 Avon Receives Bronze Award from Trust Across America for Being One of New York's Most Trustworthy Companies

January 25, 2011 Avon Launches YearLong 125th Anniversary Celebration New $1 Million Commitment to End Violence Against Women

January 25, 2011 Avon Foundation for Women Awards $60,000 Grant to Atlanta’s Partnership Against Domestic Violence

January 19, 2011 Avon Walk for Breast Cancer Announces 2011 Walk Schedule in Nine Cities Across the United States

Corporate and Foundation Reports Corporate Responsibility

The 2009 online Corporate Responsibility Report reflecting all edits and updates through December 2010 is available here in PDF format.

The 2009 online Corporate Responsibility Report content as it appeared in July 2009 is available here in PDF format

The 2004 Corporate Responsibility Report is available here in PDF format.

Annual Reports

Avon's current and archived annual reports and other financial reports are available here in PDF format

Avon Foundation

Avon Foundation Financial Reports are available here.

Contact Us We appreciate your interest in Avon and hope you find value in the information provided in our Corporate Responsibility report. We invite feedback and input by our constituents, and offer many ways to contact the appropriate teams at Avon.

Corporate Responsibility and Sustainability inquiries only: To share questions or comments about the topics of Avon corporate responsibility and sustainability addressed in this website, or to request regular updates, please click here. We will make every effort to respond if an email address is provided. (Updates will only be sent when there is substantial new information or changes.)

You may take our ONLINE SURVEY to provide feedback on this online Report and your thoughts on the issues addressed. click here.

Members of the PRESS can click here to access a list of media contacts.

For ALL OTHER inquiries, including Customer Service, click here.

Avon Positions & Policies Avon Products, Inc. is committed to offering safe and effective products and operating as a responsible corporate citizen in the more than 100 markets in which it does business. The company is proud of its 125year safety record and commitment to corporate responsibility.

Avon has the same universal standards of quality and safety worldwide and is fully compliant with all regulations established by scientific bodies and government agencies that oversee product ingredients and safety. Only ingredients that can be used safely are used in Avon products. Consumers can be assured that any product that carries the Avon name has undergone the most rigorous and thorough safety evaluation and can be used with the utmost confidence.

Across the business enterprise, Avon is committed to functioning in a responsible manner and to reducing its environmental impact. Policies have been developed in areas of sustainability that are especially material to the company's business.

Below are position statements and policies on some key issues of interest to Avon customers, Sales Representatives, associates and other stakeholders.

l Product Safety

l Aluminum

l Animal Welfare

l China Manufacturing

l Fragrance

l Green Buildings

l Jewelry

l Lipstick

l Nanotechnology

l Palm Oil

l Paper

l Parabens

l Phthalates

l Triclosan

If you have questions on topics not covered here please send an inquiry to [email protected].

Corporate Responsibility News 2010 | 2009

November 30, 2012 Avon and Vital Voices Convene Global Partnership to End Violence Against Women Summit to Foster Collaboration and Solutions

November 27, 2012 Avon Foundationfunded ‘Communications XChange’ Goes Live: A Global Digital Library on Ending Violence Against Women and Children

November 26, 2012 Avon Part of the “New Normal” in Corporate America when It Comes to LGBT Equality in the Workplace

November 14, 2012 Four Winners of Avon FoundationFunded Global App Challenge to Prevent Domestic Violence Announced

October 28, 2012 Annual Charlotte Avon Walk for Breast Cancer Raises More Than $1.75 Million

October 22, 2012 10th Annual New York Avon Walk for Breast Cancer Raises More Than $8.3 Million

October 4, 2012 Avon Named to "100 Best Global Brands" List

October 2, 2012 Inaugural Class of Avon Global Breast Cancer Clinical Scholars Arrive in U.S. to Learn Advanced Skills and Techniques to help Women in Home Countries

October 1, 2012 Five Ways You Can Get Involved During Breast Cancer Awareness Month

September 24, 2012 AwardWinning Singer Fergie Cheers on Thousands of Participants at the Avon Walk for Breast Cancer Santa Barbara

September 10, 2012 Avon Among Best AdoptionFriendly Workplaces

September 5, 2012 Avon Hello Green Tomorrow Makes $1 Million Contribution, Bringing Program Total to More Than $4.5 million since 2010

July 31, 2012 Avon, Women & the Olympics: Driving a Marathon Revolution

July 8, 2012 10th Annual Avon Walk for Breast Cancer San Francisco Raises $4.8 Million

June 27, 2012 Avon Products, Inc. Launches Corporate Responsibility Blog

June 25, 2012 Avon Ranked One of Top 50 Global Green Brands

June 24, 2012 Eighth Annual Avon Walk for Breast Cancer Rocky Mountains Raises More Than $1.7 Million

June 3, 2012 Tenth Annual Avon Walk for Breast Cancer Chicago Raises $6.3 Million

May 31, 2012 Avon Hello Green Tomorrow Marks World Environment Day with New Fundraising Products to Help End Deforestation

May 21, 2012 Avon CEO Sheri McCoy Named to Working Mother's "Most Powerful Moms" List

May 20, 2012 Tenth Annual Avon Walk for Breast Cancer Boston Raises $4.8 Million

May 15, 2012 Leading Cosmetics Companies Launch Sustainable Packaging Roundtable

May 6, 2012 Tenth Annual Avon Walk for Breast Cancer Washington, D.C. Raises $5 Million

April 23, 2012 Avon Saudi Arabia Holds First Speak Out Against Domestic Violence Event

April 22, 2012 Fifth Annual Avon Walk for Breast Cancer Houston Raises $2 Million

April 20, 2012 New Hello Green Tomorrow Impact Video marks Earth Day English Spanish

April 19, 2012 U.S. Cosmetic Companies Support Groundbreaking Safety Legislation

April 12 and March 28, 2012

Cosmetics Design 2part interview on Avon sustainability Part 1 Part 2

April 9, 2012 Avon Board of Directors Announces Appointment of Sherilyn S. (Sheri) McCoy as Chief Executive Officer of Avon

Mar 21, 2012 Study on Racial Disparity in Breast Cancer Mortality Presented at Avon Foundation Breast Cancer Forum

March 7, 2012 m.powerment by mark. Reaches $1 Million in Funds Raised

March 5, 2012 Reese Witherspoon Announces New Avon Empowerment Necklace to Raise Funds to End Violence Against Women in Recognition of International Women's Day

February 28, 2012 Reese Witherspoon Presents Avon Global Communications Awards for Speaking Out About Violence Against Women

January 11, 2012 Avon Receives “Best Places to Work for LGBT Equality” Designation

December 28, 2011 Avon Foundation for Women Announces Avon Walk for Breast Cancer’s 10th Birthday Season

December 22, 2011 Avon interview featured in Natural Resources Defense Council OnEarth online magazine

October 17, 2011 Reese Witherspoon Recognizes Breast Cancer Awareness Month in New York; Announces Avon Global Breast Cancer Scholars Program

October 11, 2011 Avon Foundation for Women and U.S. Department of State Convene Second Breast Cancer Global Congress

October 1, 2011 Avon Marks Nearly 20 Years of Fighting Breast Cancer

September 18, 2011 Avon Walk for Breast Cancer Santa Barbara Raises $4.6 Million

September 14, 2011 Avon Products Debuts “Green” U.S. Headquarters in New York City

September 13, 2011 Avon Foundation for Women Donates $100,000 to Five ChicagoArea Domestic Violence Agencies at 1st Chicago Walk the Course Against Domestic ViolenceChicagoland

August 30, 2011 Avon's Distribution Centers in Colombia and Brazil Receive LEED® Gold Certification

July 10, 2011 Ninth Annual Avon Walk for Breast Cancer San Francisco Raises $4.2 Million

June 30, 2011 $60, 000 Avon Global Believe Fund Grant Awarded to Domestic Violence Agency in Argentina

June 28, 2011 Avon Global Believe Fund Grants Awarded to Two Brazil NGOs that Support Victims of Domestic Violence

June 26, 2011 Seventh Annual Avon Walk for Breast Cancer Rocky Mountains Raises More Than $1.9 Million

June 15, 2011 Avon Foundation for Women Speak Out Against Domestic Violence Program Awards $500,000 to fund 51 Domestic Violence Organizations Across the United States and Puerto Rico

June 5, 2011 Ninth Annual Avon Walk for Breast Cancer Chicago Raises $6.1 Million

June 3, 2011 Avon Products, Inc. Honored for Doing Well by Doing Good at Annual Cause Marketing Forum

May 23, 2011 Avon Responds to Local Communities Affected by Southern Tornado Disasters with Avon Cares Tour

May 15, 2011 Ninth Annual Avon Walk for Breast Cancer Boston Raises More Than $5.2 Million

May 12, 2011 Avon U.K. Adds to Its Green Credentials with Environmental Award

May 3, 2011 Third Annual Walk the Course Against Domestic Violence Brings Out More than 1,000 CharlotteArea Walkers and Raises More than $100,000

May 1, 2011 Ninth Annual Avon Walk for Breast Cancer Washington, D.C. Raises More Than $5 Million

April 17, 2011 Fourth Annual Avon Walk for Breast Cancer Houston Raises More Than $1.8 Million

March 31, 2011 Avon Hello Green Tomorrow Marks Earth Month With New Fundraising Product and “Palm Oil Promise” to Help “Plant a Future”

March 3, 2011 Corporate Responsibility Magazine's "100 Best Corporate Citizens List" Chronicles New Rules for a New Market, Avon Ranked #16

February 9, 2011 Avon Foundation for Women Awards $60,000 Grant to Haven Hills in California's San Fernando Valley

February 3, 2011 Avon Receives Bronze Award from Trust Across America for Being One of New York's Most Trustworthy Companies

January 25, 2011 Avon Launches YearLong 125th Anniversary Celebration New $1 Million Commitment to End Violence Against Women

January 25, 2011 Avon Foundation for Women Awards $60,000 Grant to Atlanta’s Partnership Against Domestic Violence

January 19, 2011 Avon Walk for Breast Cancer Announces 2011 Walk Schedule in Nine Cities Across the United States

Corporate Responsibility Sitemap l Corporate Responsibility Report

n Message from our CEO

n Vision & Mission

n Vision & Commitment

n Values

n Principles

n Mission

n About This Report

n Empowering Women

n Empowered to Achieve

n Power of Microlending

n High Touch / High Tech

n Support

n Training

n Leadership

n Empowered to Make an Impact

n Profiles of Success

n Sustainability

n Helping End Deforestation

n Avon Paper Promise

n Avon Palm Oil Promise

n Minimizing the Operational Footprint

n Energy & Greenhouse Gas Reduction

n Material Use & Waste Reduction

n Water Use Reduction

n Avon Green Building Promise

n Managing Our Product Lifecycle

n Research & Development

n Product & Ingredient Safety

n Manufacturing & Supply Chain

n Packaging

n Distribution

n Philanthropy

n Avon Breast Cancer Crusade

n Speak Out Against Domenstic Violence

n Emergency & Disaster Relief

n Creating Impact Around the World

n Philanthropy Timeline

n Grant Making

n Corporate Responsibility Practices

n Materiality: Key Impacts, Risks & Opportunities

n Material Topics

n Key Impacts, Risks & Opportunities

n Corporate Governance

n Board of Directors & Committees

n CG Guidelines

n CR & Sustainability Management

n Ethics & Compliance

n Code of Conduct

n AntiCorruption Program

n Manufacturing & Product Compliance

n Stakeholder Engagement

n Associates

n Sales Representatives

n Customers

n Shareholders

n Advocacy Groups

n Public Policy

n Workplace

n Global Safety Strategy

n Employee Benefits

n Associate Engagement & Training

n Diversity & Inclusion

n Workforce Diversity

n Commitment to Women

n Associate Resource Groups

n Supplier Diversity

n GRI Index

n Company Profile & Financials

n Resource Center

n Glossary

n Avon Positions & Policies

n Memberships

n Video & Presentations

n Awards and Recognition

n News Room

n Avon Corporate & Foundation Reports

n Take Our Online Survey

n Contact Us

n Build Your Own Report

responsibility.avoncompany.com

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