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Real Time Spend · Source: Supply Chain Dive

Coty Cuts Distribution Energy Use with Warehouse LED Upgrades

Coty reduced energy consumption across its logistics network by 19% in FY26, leveraging warehouse LED retrofits and smart metering.

Coty Cuts Distribution Energy Use with Warehouse LED Upgrades

Key takeaways

  • Coty reduced total energy consumption across its operations by 19% in FY26 relative to a 2019 baseline.
  • Replacing 2,596 fixtures with LEDs at its Maryland distribution center generated $80,000 in annual energy savings.
  • Coty deployed Cotopaxi smart metering systems at distribution centers in the U.S., Poland, and the U.K.
  • The company met its 2030 waste goals in FY26, achieving zero landfill waste and an 80% recycling rate at facilities.

Global Facility Efficiency Upgrades

Beauty conglomerate Coty reduced its total energy consumption by 19% in fiscal year 2026 compared to a 2019 baseline, according to company reporting covered by Supply Chain Dive. Coty operates five global distribution centers supporting logistics, warehousing, and shipping operations for cosmetic and fragrance brands including CoverGirl, Sally Hansen, and Marc Jacobs. The reductions stem from targeted facility modernizations, smart monitoring technology, and updated temperature controls across its network.

LED Upgrades and Smart Metering Results

A key component of Coty's facility overhaul involved retrofitting its distribution center in Riverside, Maryland. During FY26, the company replaced 2,596 fixtures with modern LED lighting and motion sensors. The retrofits aim to cut lighting energy usage at the location by 25%. The resulting 519,000 kWh reduction yields roughly $80,000 in annual energy cost savings alongside $2,000 in lower annual maintenance expenses. In addition, the company reported that the LED fixtures increased floor-level illumination by up to 40%, enhancing workplace visibility.

Coty also integrated smart metering technology to improve visibility into energy and water use. Using monitoring systems from energy consultancy Cotopaxi, Coty established real-time consumption tracking across facilities in Riverside, Maryland; Bielsko-Biala, Poland; and Bournemouth, United Kingdom. Other heating improvements included optimizing insulation and adjusting facility temperature setpoints downward to minimize unnecessary fuel and electricity use.

Forward Targets and Logistics Strategy

Coty joins other major retailers, such as Best Buy and Burlington, that are introducing solar installations and efficiency upgrades into distribution operations. Looking forward, Coty plans to expand heat pump technology, upgrade HVAC systems, expand rooftop solar photovoltaic capacity, and explore zero fossil fuel initiatives across its sites.

Beyond energy conservation, Coty achieved its fiscal 2026 targets of sending zero waste to landfills and recycling 80% of waste from factories and distribution centers, goals originally set for 2030 relative to a 2019 baseline. To address indirect transport emissions, Coty is actively shifting freight transport away from air cargo toward ocean and rail routes across its global supply network.

  • #supply-chain
  • #distribution-centers
  • #energy-efficiency
  • #logistics

Original source: Supply Chain Dive

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