Environment

As the nation’s leading beauty retailer, we take seriously our responsibility to be good environmental stewards by reducing our direct and indirect emissions.

Climate scientists and world leaders agree on the need to limit global temperature rise to 1.5°C to avoid the worst effects of climate change. The Science Based Targets initiative (SBTi) is the gold standard for climate goal setting, requiring companies to reduce their carbon emissions in a manner backed by data and in line with science. Ulta Beauty has submitted a target, covering Scope 1, 2 and 3 emissions, to SBTi for approval. In the meantime, we’re moving forward with important next steps for emissions reduction both within and beyond our business, including investing in renewable energy and engaging with suppliers and other key stakeholders on Scope 3 emissions.

• ~1.5% Annual estiamted energy reduction due to efficiency investments.
• ↓19% Scope 1 & 2 same-store emissions change 2021-2022.

Investing in clean energy

Ulta Beauty is growing responsibly through investments in energy efficiency and renewable energy to power our stores, DCs and offices.

To lower Scope 1 and 2 emissions, we procure renewable energy and invest in efficiency to reduce our overall energy demand. We estimate that energy efficiency investments will allow us to reduce our energy use by ~1.5% year over year.

We also continually seek out new technology and upgrade equipment as needed. In 2022, we upgraded energy management systems at 97 Ulta Beauty retail stores. These systems not only help our stores operate more efficiently, but also make building information available remotely so that we can troubleshoot and adjust without having to dispatch a technician. In addition to energy management systems, we retrofitted 100 stores with new LED lights and upgraded to more efficient HVAC systems at 16 stores. The performance of HVAC units can decrease significantly by the end of life, especially when compared to new high-efficiency units. Proactive replacement can result in significant energy savings, in addition to improving comfort for guests and associates.

Renewable energy investments allow us to decrease our overall emissions, even as we open more stores. We continue to purchase renewable energy credits (RECs) and have purchased future RECs out to 2026. Every year since 2020, our annual electricity usage met through RECs has roughly doubled, totaling 34% in 2022. In addition, we are collaborating with landlords on onsite solar installations and have invested in residential solar projects that offer tax credits to homeowners.

The Ulta Beauty Green Group

Our associates are passionate about much more than beauty. The Ulta Beauty Green Group is an opportunity for corporate associate volunteers to connect and help us all be better environmental stewards across our stores, distribution centers and the corporate office. Initiatives the group has undertaken include replacing disposable coffee cups with reusable mugs in offices, hosting electronics recycling drives, encouraging paperless work practices, improving recycling systems and sharing monthly tips with fellow associates about how to live more sustainably.