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Company: Avon
Subject: Toxic Chemicals Policy
Year: 2006
Sector: Cosmetics Manufacture
Lead Filer: Domini Social Investments
Cofiler(s): Evangelical Lutheran Church in America, As You Sow Foundation
Outcome: Vote: 4.4%

Annual Meeting: Thursday May 4, 2006

The Company is informed that Domini Social Investments LLC, with the co-sponsorship of the Board of Pensions of the Evangelical Lutheran Church in America and the As You Sow Foundation, whose addresses and share ownership will be furnished promptly upon receipt of any oral or written request therefor, intends to introduce at the Annual Meeting the following resolution:

WHEREAS:

In February 2003, European Union Directive 2003/15/EC (amending Cosmetics Directive 76/768/EEC) banned the sale in Europe of cosmetics or personal care products that contain any ingredients on a list of chemicals known or suspected of causing cancer, genetic mutation, or birth defects.

Concern about safe cosmetics is growing among consumers, as reflected in existing and projected growth in the market for natural- and organic-based cosmetics and a concomitant expansion of product choices to meet this demand.

Further indicative of the need to respond to this public concern, over 200 cosmetics companies have informed the Campaign for Safe Cosmetics, a coalition of health, consumer, and advocacy groups, that they will inventory their products for ingredients that are suspected carcinogens, mutagens, and reproductive toxicants, as well as for chemicals that affect the endocrine system, accumulate in the body or persist in the environment. These companies will proactively seek safe alternatives for these chemicals, and publicly report on their progress.

Resolved: Shareholders request the Board to prepare a report analyzing and articulating Avon’s policy on using safer substitutes for chemicals that are known or suspected carcinogens, mutagens, and reproductive toxicants, as well as chemicals that affect the endocrine system, accumulate in the body, or persist in the environment. The report, prepared at reasonable cost and omitting proprietary information, should be made available to shareholders by November 1, 2006.”

The proponents have furnished the following statement in support of the resolution:

“Known as ‘the company for women,’ Avon deserves praise for its global leadership in funding screening and treatment of breast cancer. But women are increasingly concerned about preventing cancer and other health disorders in the first instance by avoiding exposures to suspect chemicals in personal care and other consumer products. Companies around the globe increasingly are adopting safer alternatives policies to build public trust, protect brand reputation, and anticipate prospective regulation. Such companies specify to their suppliers acceptable and unacceptable chemicals, and deadlines for compliance. Avon has declared that it requires that all its products are safe; by disclosing how it systematically reviews suspect chemicals and encourages safer substitutes, Avon can enhance its reputation among its health- and safety-conscious customers.

The proponents believe the report should include the following:


1. An inventory of chemicals of concern in Avon’s and suppliers’ products (using internationally recognized lists) that are known or suspected carcinogens, mutagens, and reproductive toxicants, as well as chemicals that affect the endocrine system, accumulate in the body, or persist in the environment.


2. A prioritization scheme for identifying safer substitutes for these chemicals.


3. A description of procedures for ongoing reviews of toxicity information as new scientific studies become available.


4. A description of how the company ensures that its policies are implemented throughout its supply chain.”


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