LONDON—The beauty industry is cleaning up its image by investing in a raft of CSR and sustainability initiatives. Cosmetic companies have long received criticism for unethical and non-environmentally friendly business practices. Organic Monitor’s research found the industry is cleaning up, with some beauty companies and ingredient firms falling over themselves to communicate their green and ethical credentials.
In its new Strategic Insights report, Organic Monitor assesses CSR and sustainability initiatives in the beauty industry. The research found most investment is going into reducing the environmental footprint of cosmetic products by using greener formulations and sustainable packaging.
Packaging is receiving high interest because of its high ecological impact; companies are looking at biodegradable plastics, recycled materials and innovative ways to reduce packaging. The report gives case studies of companies undertaking novel techniques such as upcycling and lightweighting, as well as those using new packaging materials such as biopolymers and bamboo.
A major finding is natural a d organic cosmetic companies—many of which have sustainability built into their corporate DNA—are leading the way in terms of CSR and sustainability initiatives. The report highlights the achievements of the Brazilian company Natura, which has been championing environmental causes since its formation in 1969. It was the first major cosmetics company to become carbon neutral, offsetting its carbon emissions by reforestation of native tree species. Beraca, another Brazilian company, is also commended for its social and biodiversity investment projects in the Amazon. The report found although natural and organic product companies are typically pioneers, larger conventional firms are stealing the limelight by more aggressive communication of their CSR and sustainability activities.
By the use of case studies, Organic Monitor highlights the various methods of reducing the environmental and social impacts of cosmetics products and ingredients. The importance of ethical sourcing is making fair trade prominent, with a growing number of natural cosmetic and ingredient firms investing in grower projects in developing countries. Certification is a major barrier however, with many companies preferring to take the non-certified route because of bureaucracy and the limitations of fair trade standards. Corporate philanthropy is another area becoming important for some beauty companies wishing to ‘invest back’ into society.
Details are given of the various standards, certifications, labels and indexes for CSR and sustainability in the beauty industry. Natural and organic cosmetic standards have received most attention; however new schemes are emerging that look at the various dimensions of sustainability. Cradle to Cradle certification is becoming popular for companies such as Aveda and Kiehl’s as it gives a life-cycle analysis of cosmetic products.