Sustainability in Cosmetics: Insights from HAPPI

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The Importance of Sustainability in the Cosmetic Industry: A Key Focus for Suppliers, Formulators, and Consumers Alike

In a recent survey conducted by the IBM Institute for Business Value, it was revealed that a significant shift has occurred in consumer attitudes towards environmental sustainability. The survey, which included responses from 16,000 individuals globally, showed that over half (51%) of participants believe that sustainability has become more crucial in their purchasing decisions compared to the previous year. Furthermore, the same survey indicated that consumers are not just voicing their concerns but are also taking actionable steps. Approximately 50% of respondents reported they are willing to pay a premium—averaging a remarkable 59% more—on products that are marketed as sustainable or socially responsible within the last year.

Given this compelling trend, the New York Chapter of the Society of Cosmetic Chemists (NYSCC) organized an extensive seminar dedicated to exploring the theme of sustainability. This pivotal event was co-chaired by industry experts Stacey House from KDC/One and Ben Blinder from Gattefossé.

House emphasized the significance of the topic, stating, “Each year, the NYSCC Chair outlines the monthly event program, and the event chairs collaborate to select the optimal venue and speakers that align with our focus. We choose themes that resonate with our members and the industry, ensuring everyone stays engaged with contemporary issues.” She further elaborated that sustainability is not merely a passing trend but presents an urgent challenge that influences our choices, beginning from the conceptualization of products to our ultimate purchasing decisions. The commitment to sustainability is becoming ever more critical across the industry.

Blinder expressed that NYSCC Chair Giorgio Dell’Acqua is deeply dedicated to exploring sustainability, circularity, and naturality within the industry.

“While he provided a broad topic, it was up to Stacey and me to curate the speakers and the program,” Blinder noted. “We were fortunate to receive substantial assistance from the NYSCC team, who managed logistical aspects like venue booking, publicity, and registration. This support allowed us to concentrate on curating meaningful content and selecting impactful speakers.”

House shared her satisfaction with the event’s success, highlighting that it was sold out and confirmed that sustainability will again be a focal point in the NYSCC Seminar agenda for 2023.

Blinder commented that many people often simplify sustainability to mere concepts like “recycling” and “waste reduction,” but it encompasses far more than those notions.

“There’s a vast amount of work to be done to enhance sustainability in our sector, and the speakers provided us with invaluable insights,” Blinder reflected. “They also made the subject relatable; beyond large-scale initiatives that companies can adopt, speakers offered practical suggestions for individuals to incorporate sustainability into their lives, linking it to broader themes like diversity, equity, and inclusion.”

Empowering Sustainability Initiatives: A Call to Action

The concept of reuse is a pivotal aspect of sustainability, yet it often receives insufficient attention in discussions surrounding the reduce-reuse-recycle framework. Sandra Goldmark from Barnard College/Columbia Climate School shifted this narrative by referencing a study from the World Resources Institute, which indicated that if global circularity were to double over the next decade, greenhouse gas (GHG) emissions could see a significant reduction of 39%, along with a 28% decrease in the total material footprint.

Goldmark brought the conversation to the forefront by showcasing a compelling case study involving stage scenery at Barnard College, where she observed that thousands of pounds of stage props and materials were discarded as waste.

“We found that sourcing all new scenery materials would cost around $10,000,” she recalled, “but by using a combination of half new and half reused materials, the cost could be cut down to $5,000. Remarkably, utilizing entirely reused scenery could lower the expenditure to just $2,000.” Goldmark took her findings a step further by launching Fixup, a series of pop-up repair workshops throughout New York City, initially staffed by skilled stagehands.

“Stagehands possess a remarkable ability to repair just about anything,” she emphasized.

Since its inception, Fixup has successfully repaired a wide array of items, including lamps, small appliances, jewelry, clothing, and more. The initiative collaborates with renowned brands like Patagonia and Darling Coffee, as well as community organizations such as the YMCA.

Goldmark later authored a book detailing her experiences, titled Fixation: How to Have Stuff Without Breaking the Planet.

“The wave of circularity is gaining momentum,” Goldmark asserted, highlighting that by 2040, Target aims for 100% of its owned brand products to be designed with circularity in mind.

Uncovering Sustainability Trends: Insights from Spate and Google

Spate leverages Google search data to identify emerging trends across various industries, including cosmetics. Interestingly, Yarden Horwitz, Google Co-Founder, noted that while consumers express a growing interest in sustainability, they often do not use that specific terminology when discussing beauty products.

“In the beauty sector, the language surrounding sustainability is evolving, with certain categories rising to prominence,” she explained.

For instance, there has been a notable 36.7% year-over-year increase in Google searches for “sustainable soap” and related keywords. Even more striking, searches for “sustainable nails” surged by 62.4%. Meanwhile, interest in “sustainable sunscreen” also rose by 32.2% as consumers increasingly seek out terms like “reef-safe sunscreen,” showing a clear trend towards environmentally responsible beauty products.

Horwitz also highlighted the burgeoning clean beauty movement, revealing that the leading clean beauty brands based on Google search data include:

• The Ordinary

• Olaplex

• Beautycounter

• Supergoop

• Tatcha

• Fast-growing newcomers in the clean beauty space include Merit Beauty, boasting a 144.7% year-over-year growth, and Topicals, with an impressive 134.8% increase.

“While being labeled as a clean beauty brand does not guarantee success, it significantly aids in establishing trust with consumers,” she concluded.

The Future of Cosmetics: Embracing Biotechnology as a Core Solution

The NYSCC might need to adopt a new name reflecting the changes in the industry. Biotechnology is fundamentally transforming the cosmetics landscape, according to Jasmina Aganovic from Arcaea. She praised the industry’s shift towards a plant-based supply chain but pointed out that if a giant like Procter & Gamble were to transition entirely to plant-based manufacturing, they would struggle to find sufficient feedstock in the market. Instead, Aganovic proposes biotechnology as a more viable solution.

Aganovic explored various common beauty ingredients and illustrated how biotechnology can enhance their production. For example, panthenol was historically sourced from petroleum, but now it can be produced through bacterial fermentation. Similarly, squalene, once derived from sharks, can now be synthesized through yeast fermentation. Even hyaluronic acid, a popular humectant, which was previously extracted from rooster combs, is now produced via bacteria.

“Imagine the possibilities if we could design products based on biotechnology,” she emphasized. “The future lies in expressive biology, offering a new palette of ingredients inspired by the Tree of Life!”

Ginkgo Bioworks exemplifies this vision by programming cells to create everything from food to materials to therapeutics.

Arcaea was incubated within Ginkgo Bioworks and is rapidly becoming a significant player in the beauty industry. Earlier this year, Arcaea acquired Gadusol Laboratories, a spinout from Oregon State University that aims to synthetically produce UV-absorbing compounds found in marine organisms. Although a launch date has yet to be announced, Aganovic has expressed her ambition to develop the “cosmetic lab of the future” and establish a “biology-first beauty company.”

Which companies are making strides in biotechnology? Aganovic utilized a graph to categorize leaders and laggards in the sector. Within the realm of global consumer packaged goods (CPG), Natura and L’Oréal stand out. Indie beauty pioneers include The New and Beautycounter, while top biotech startups such as Amyris and Checkerspot are making their mark. On the supply front, Givaudan, Croda, and Firmenich are leading the charge.

How do these companies gauge their sustainability progress? Aganovic stated that multinational corporations and their suppliers depend on globally recognized, science-based metrics. For multinationals, this includes lifecycle assessment (LCA)-based targets encompassing Scope 3 emissions and consumer-use phases. Leading suppliers are also focusing on Scope 3 emissions. Conversely, Aganovic pointed out that only Beautycounter, among indie brands, mentions mapping 53 emissions and engaging their suppliers in sustainability initiatives. Other key takeaways include that among multinationals, claims of zero deforestation are widespread, while specific ingredient-related targets, such as 100% biobased (L’Oréal) and 100% biodegradable (Unilever), are beginning to gain traction. Among suppliers, terminology like “bio-based” and “no deforestation” is becoming increasingly common. Indie brands are uniquely positioned to focus on locally sourced materials and reducing transportation impacts, a feasible approach for smaller companies, as noted by Aganovic, who referenced third-party landscape assessments.

To embark on a sustainability journey, Aganovic recommends the following actionable steps:

• Conduct a thorough material assessment;

• Establish clear target setting and reporting frameworks;

• Design products with a lifecycle perspective (prioritizing environmental considerations);

• Engage suppliers in sustainability practices; and

• Foster external partnerships.

Aganovic highlighted that materiality is vital for identifying what actions can significantly impact an organization’s activities and its ability to create value for both itself and its stakeholders. She advocates for utilizing a globally recognized reporting framework and standards to enhance credibility and provide guidance on impact. Aganovic considers the Global Reporting Initiative (GRI) to be the most esteemed reporting framework within the industry.

“To achieve net positive impact, the product design process must incorporate lifecycle thinking,” she stated. “Industry leaders are already establishing targets for 2030 that encompass the entire product lifecycle.”

However, to genuinely attain net-zero or net-positive status, marketers must collaborate closely with suppliers. Organizations like the Carbon Disclosure Project and Ecovadis are invaluable resources that assist suppliers in reaching their sustainability objectives. Aganovic pointed out that Arcaea, as a supplier, will be subject to the ESG assessments that many major retailers require. Walmart’s Supplier Sustainability Assessment Questionnaire serves as a prime example.

Building Connections: Formulators and Suppliers Unite for Sustainability

What steps can formulators take to connect with suppliers who share their sustainability values? Yashi Shrestha from Novi guided attendees through the evolving terminology, emphasizing that “clean beauty” has progressed beyond basic “free of” claims. The market now requires comprehensive safety and efficacy information, along with detailed sourcing and end-of-life data. Concurrently, it is essential that ingredients and formulations have minimal impact on climate and social structures.

She highlighted popular certifications such as USDA Organic, Ecocert, and Credo, and pointed out that as consumers demand greater transparency, retailers are updating their policies and urging brands to delve deeper into their supply chains.

“Enhancing industry collaboration is crucial for improving transparency,” Shrestha explained. “Novi facilitates data-driven formula development.”

The company extracts thousands of data points from supplier documentation, feeding internal algorithms that assess ingredients and products. Novi’s comprehensive workflow aids regulatory departments in evaluating every ingredient against sustainability standards and claims, while providing access to supporting documentation necessary for validation and product registration. For procurement teams, Novi offers real-time access to supplier quotes and availability, streamlining purchase orders, shipping, and transaction reporting. Research and Development (R&D) departments can utilize Novi’s marketplace to discover innovative ingredients that align with product briefs, complete with readily available technical data.

“We collaborate directly with retailers, brands, and suppliers to ensure all parties are informed and aligned. Industry cooperation is key to enhancing transparency,” Shrestha concluded.

Redefining Beauty: The Shift to Sustainable Packaging Solutions

Adrian Apodaca from HCT Packaging took to the stage and candidly admitted, “I am a plastic addict. It is functional, inexpensive, and incredibly versatile.”

However, he quickly acknowledged the damaging impact of plastic on the environment. According to Apodaca, the new standard for beauty packaging must prioritize functionality while being sustainable, utilizing recyclable and/or recycled materials, and incorporating refillable options when feasible.

“Our primary objective for new packaging is to minimize single-use plastics as much as possible,” Apodaca asserted.

He showcased various cosmetic products that exemplify this principle. For instance, Fenty’s Icon lipstick features outer components made from post-consumer recycled (PCR) materials, is refillable, and designed for durability to enable multiple uses. Similarly, the packaging for Skkn by Kim is crafted from PCR material, with refillable polypropylene components and cartons made from recycled paper pulp. The Humanrace sun care line incorporates up to 60% PCR in its outer components, facilitating effective reuse.

Despite these advancements, it is clear that plastics will continue to play a significant role in beauty packaging. To enhance sustainability profiles, a key goal is to transition most, if not all, components of a product to a single material type. Traditionally, manufacturers have used a variety of plastics and materials to optimize functionality and aesthetics for each part. While simplifying materials is more manageable for straightforward components like bottles, it becomes a greater challenge for complex mechanical assemblies such as pumps and lipstick mechanisms, Apodaca noted.

Some marketers are making strides in this area. For example, NuSkin’s Nutricentials Hyaluronic Acid Pump features outer components made from polypropylene with PCR content, complemented by a refillable inner chamber crafted from 100% polypropylene.

However, manufacturers and suppliers are not the only parties responsible for the plastic issue. Apodaca pointed out that consumers must also exercise diligence in properly recycling components—yet adequate recycling infrastructure is still lacking in many parts of the United States.

“Even with proper recycling methods, there is a limit to the amount of PCR plastic that can be utilized and the number of times it can be recycled,” Apodaca explained.

Moreover, plastic is not the sole concern for recyclers. Many cardboard pallets are coated with plastic, impeding their recyclability. The best approach is to utilize uncoated cardboard. To further mitigate recycling challenges, Apodaca proposed using tin jars as an alternative to outer plastic packaging, while keeping the inner container made from polypropylene for recyclability. While these innovations may not entirely resolve the beauty industry’s plastic dependency, they can help to mitigate its impact.

Enhancing Consumer Understanding: Transparency, Traceability, and Green Chemistry

Shaun Barker from Estée Lauder Companies (ELC) emphasized that sustainability has been integral to the operations of ELC and its brand portfolio. However, he acknowledged the prevalent issue of consumers attributing false claims and greenwashing to the cosmetics industry. Barker attributes this disconnect to a gap between cosmetic labeling and consumer comprehension. He referenced a Mintel survey revealing that:

• 68% of respondents consider ingredient transparency important or extremely important in their purchasing decisions;

• Only 2% of respondents fully understand cosmetic labels;

• 45% of consumers frequently find ingredient lists confusing; and

• 80% of U.S. consumers express confusion regarding overall product labeling.

To enhance transparency at ELC, the company has developed glossaries detailing over 100 key ingredients across 11 brands, along with a corporate glossary that highlights the functionality and, in some cases, sourcing of these ingredients.

“We implement blockchain technology for traceability,” Barker added.

He noted that Aveda was a pioneer in the beauty industry, being among the first to utilize commercial blockchain technology. This initiative started in 2019, focusing on tracing the Madagascan vanilla supply chain. Consumers can access online mapping tools to track the journey of vanilla from Madagascar to France and ultimately to Minnesota. This technology is now being expanded to include other key ingredients in their product lines.
Incorporating principles of green chemistry into product development is also a priority for ELC.

“We invested ten years to develop this system,” Barker explained, detailing the extensive collaboration with industry experts, assessment of internal capabilities, and the creation of tools to enable ELC teams to integrate green chemistry effectively into their daily operations.

The cornerstone of ELC’s strategy is the Green Score Program, which offers a measurable framework for formulators to evaluate their ingredient choices against green chemistry principles.

Data from the Green Score can inform future innovations, Barker noted, as specific ingredient selections can significantly affect the overall Green Scores of formulations. The impact of formulation complexity and the respective Green Scores of ingredients, along with their usage levels and effectiveness, are all taken into account. This tool will be subject to continuous updates to maintain its relevance.

Barker also outlined several of ELC’s packaging objectives. For instance, by 2025, the company aims for 75-100% of its packaging to be recyclable, refillable, reusable, recycled, or recoverable. Additionally, ELC plans to increase the proportion of PCR material in its packaging to 25% or more by the same year. He shared the company’s achievements in climate initiatives, including sourcing 100% renewable electricity for its direct operations globally. ELC has undertaken solar projects in locations such as New York, Minnesota, and Switzerland. Regarding social responsibility, 95% of ELC brands identify causes they are passionate about, exemplified by the ELC Breast Cancer Campaign and Charitable Foundation, which has raised over $108 million globally since its inception in 1992.

Leading the Way: The Cradle to Cradle Certified Movement

Monica Becker from the Cradle to Cradle Products Innovation Institute addressed the audience by highlighting the critical need for formulating products within a circular economy, noting that a staggering 95% of packaging in the cosmetics industry is discarded.

“Currently, only 8.6% of the global economy operates on circular principles,” she stated. “To make a meaningful impact, we must aim for a target of 17%.”

The Institute envisions a world where safe materials and products are designed and manufactured within a prosperous, circular economy that maximizes both human health and planetary wellbeing.

“Transitioning to renewable energy can only mitigate 55% of the world’s greenhouse gas emissions,” Becker explained. “The remaining 45% requires a fundamental transformation in how we produce and utilize products.”

The Cradle-to-Cradle principles offer a robust design framework characterized by three core tenets derived from nature:

• Everything serves as a resource for something else;

• Utilize clean and renewable energy sources; and

• Embrace diversity.

According to the Institute, cosmetics that are safe, circular, and responsibly manufactured must consider three key areas:

• Ingredients that prioritize safety for both people and the environment, derived from renewable, upcycled sources, and relying on regenerative agricultural practices, alongside responsible sourcing;

• Manufacturing processes that embrace renewable energy, water efficiency, material conservation, and uphold human rights while promoting fair and equitable business practices; and

• Packaging that employs safe chemicals and materials, incorporates PCR and renewable content, and is designed for refill, recycling, and composting, along with supporting infrastructure for circular systems.

Becker described the Cradle to Cradle Certified program as the most ambitious and actionable standard available for designing and producing products and packaging that are safe, circular, and responsibly made. This program addresses aspects like material health, product circularity, clean air, climate protection, water and soil stewardship, and social fairness. It provides a structured pathway for measurable improvements and innovative solutions. The certification applies to products, packaging, or both.

Brands that have achieved Cradle to Cradle certification include: Beauty Kitchen, Blueland, Frosch, L’Oréal hair care lines (including Carol’s Daughter, Garnier, L’Oréal Paris Elvive, Ever Pure, Pureology, and Redken), Maybelline, and Nu by YSL.

Continuing the Conversation: Going Beyond RSPO for Sustainable Palm Oil

The Roundtable for Sustainable Palm Oil (RSPO) initiated essential discussions surrounding a significant cosmetic ingredient. But what steps are being taken next? Laurent Schubnel from Gattefossé SAS elaborated on Action on Sustainable Derivatives (ASD), an industry-led platform that unites companies from the home and personal care, as well as oleochemicals sectors, to collaboratively address supply chain challenges linked to palm oil and palm kernel oil derivatives.

This collective endeavor includes suppliers and formulators who share a common goal: to drive transformation within the intricate palm derivatives sector.
ASD is guided by three primary objectives:

• Ensuring no deforestation occurs;

• Respecting human rights; and

• Supporting livelihoods.

The ASD action framework encompasses transparency and monitoring, as well as market and supply transformation, all aimed at generating positive impacts. ASD actively monitors plantations, mills, refineries, and crushing facilities to ensure compliance and ethical practices.

“Through ASD, we can better address grievances and rectify issues,” Schubnel explained. “Individually, we would lack access to this wealth of information. We invite you to join our initiative!”

Membership in ASD fosters positive impacts and positions brands as trusted entities among consumers. Additionally, it ensures a sustainable supply chain and enhances internal quality control and accountability measures.

Since its inception in 2019, a total of 25 companies have joined ASD, including notable names such as Beiersdorf,