Good Sustainability practice (GSP) FOr the industry Summary

3 Executive Summary 4 Introduction 5 Background 6 Life Cycle Thinking and Life Cycle Assessment 7 The Three Pillars of Sustainability

7 4.1 Environmental aspects

9 4.2 Social aspects

10 4.3 Economic aspects 11 GSP in the cosmetics industry: practical guidance

12 5.1 Life Cycle Assessment

14 5.2 Environmental aspects of the main phases in a cosmetic product’s life cycle

14 5.2.1

14 5.2.2 Product formulation

16 5.2.3 Packaging

18 5.2.4 Distribution

19 5.2.5 Product use phase (consumption)

20 5.2.6 Post-use phase: collection, reuse, recovery and disposal of packaging

21 5.3 Sustainability information and communication

23 5.4 Social and economic dimensions

23 5.4.1 Employees wellbeing

24 5.4.2 Empowering knowledge

25 5.4.3 Diversity at work

28 5.5 Measuring, target setting and reporting 30 List of references 31 Cosmetics Europe’s STRATEGIC PROJECT TEAM ‘SUSTAINABLE DEVELOPMENT’

2 2 EXECUTIVE SUMMARY

The cosmetics industry aims to serve consumers Life cycle thinking and life cycle assessment are quickly, safely and efficiently with the most widely used in analysing product impacts and the sustainable solutions. Cosmetics manufacturers resultant contribution to the company footprint. are striving to maximise their positive impact Understanding how to improve the footprint of a and minimise any negative ‘footprint’ on the company is vital in improving the overall business environment, economy and society in general. sustainability but the temptation to reduce Business strategies are being re-assessed through everything to one measure must be resisted. a sustainability lens to analyse their contribution to The most suitable and the most sustainable this overall impact. product is the one that fulfils the requested function and minimises the total impact over the full life cycle The entire cosmetics supply chain, from the initial in all three pillars. Choosing the right combination sourcing of raw materials through to consumer use of indicators is crucial. and disposal can have an impact on sustainability. This document, supported by global expert opinion The chapter on practical guidance suggests steps from within and outside the cosmetics industry that can be taken to analyse, evaluate and report value chain, offers a catalogue of suggestions a company’s current sustainability strategy and how to integrate sustainability into a company’s makes practical suggestions how to optimise it for overall strategy. the future. To achieve this, it is vital to work with partners up and down the value chain and with It recalls the fundamental roles that cosmetic Cosmetics Europe and other industry associations to products and the cosmetics industry play in our identify how to achieve the most sustainable impact. society. It explores, through life cycle thinking, the many approaches and tools used to evaluate the Optimising sustainability may require investment. life cycle impact of a cosmetic product category, Over time, however, a positive return can be stressing the importance of taking all three pillars expected since good sustainability practice is good of sustainability into account. business practice. This document will help any cosmetic company to achieve that. The role of sustainability in a company’s overall strategy is then explored further, with information on how to optimise the role it plays in the overall value chain.

The document gives practical advice on how senior decision makers in a small, medium or large cosmetics company can develop and implement a sustainability strategy.

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 3 Introduction

Members of Cosmetics Europe have been actively The objective of this document is, therefore, to involved in initiatives supporting the sustainable provide information and guidance to cosmetic consumption and production (SCP) of cosmetic manufacturers and to assist them in their efforts products for many years, some even for decades. toward the sustainable production and consumption The commitment of Cosmetics Europe’s member of cosmetic products. companies to sustainability is embedded in the Cosmetics Europe mission statement: to support Cosmetics Europe proposes to take a responsible the development of an innovative, sustainable, and thoughtful step-wise approach, with each stage competitive and respected industry in Europe, growing in complexity and depth, as its members’ which best serves consumers and society. collective understanding of sustainability develops.

Besides these individual company initiatives, The first step is to get started: consider and Cosmetics Europe has identified the need to understand life cycle thinking, select priorities increase industry’s awareness in the field of relevant to the individual company. For example, sustainability, and to provide some tools that companies starting on the journey can take will enable all cosmetic companies who are advantage of published life cycle analyses for interested to develop, implement and report their relevant product categories to guide their strategies. own sustainability initiatives and programmes. This document and the supporting references Bearing in mind compliance with competition rules, contain many pragmatic suggestions which common initiatives at trade association level will, companies of all sizes can readily implement. however, be limited to exchanging information It will be supported by a training programme led and providing advice. by Cosmetics Europe.

4 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY Background

The viability of companies depends on the viability goals. This includes doing business in an ethical and of markets. The globalisation of companies and legal manner and is inseparably linked with respect for markets goes hand in hand with a globalisation human rights, the customs, traditions and the social of social, environmental and economic problems values of the countries in which they operate. and the emergence of global approaches to solving Products and technologies are designed to make these problems. a valuable contribution to society.

The concept of Sustainable Development was defined In this way, cosmetic companies have been active in by the Brundtland Commission in 1987 as ‘development helping to move the sustainability debate forward. that meets the needs of the present without Companies have increasingly broadened their voluntary compromising the ability of future generations to meet efforts from individual environmental aspects to a their own needs’. It contains the concept of needs, holistic sustainability approach by extending their in particular the essential needs of the world’s poor, work into the field of Corporate Social Responsibility to which overriding priority should be given, and the (CSR). This means that their focus has shifted to the idea of limitations imposed by the state of technology implementation of sustainable concepts throughout and social organisation on the environment’s ability their organization and their sphere of influence including to meet present and future needs (World Commission their supply chain. Guidance on how to do this has, for on Environment and Development, 1987). It is built example, been produced by the World Business Council. on a balanced consideration of the three pillars of In its report entitled ‘Sustainability Through the economic development, social responsibility, and Market: Seven Keys to Success’7, it offers businesses environmental protection. a roadmap to implementing and benefiting from sustainable practices. The report can be found The Brundtland Report1 formed the basis for the UN at www.wbcsd.org. Summit in Rio de Janeiro in 1992 which produced concrete agreements on putting Sustainable In order to move towards even more sustainable Development into action. Industry and governments consumption patterns, a partnership approach between all played a part in trying to advance the agenda industry, regulators, consumers and other stakeholders and progress was reviewed at the subsequent UN is required. This partnership should aim not only Johannesburg Sustainable Development Conference at providing environmental information on product in 2002. The European Commission has led the way categories and related processes but also at educating in attempting to integrate economic, environmental consumers to behave more sustainably in order to cover and social concerns into all areas of policy-making. the whole life cycle of products. Publications such as the Green Paper2 and the Communication3 on Integrated Product Policy and the In order to use sustainability as a success factor Communication on the Sustainable Consumption and in the market, companies are faced with the challenge Production and Sustainable Industrial Policy Action of translating their sustainability performance into Plan4 focus on the biggest challenges to sustainability. credible communication. This includes ensuring a In addition, the REACH Regulation5 is also a substantive fit between ‘acting’ and ‘communicating’ at product contributor to the sustainability agenda. As evidence as well as at corporate level.Moreover, sustainable of the EU’s commitment, Sustainable Development is development is a challenge involving all stakeholders. enshrined in the EU Treaty as one of the ‘overarching’ Individual companies, whether large or small, principles of all EU policies and a major guiding must maintain an open dialogue with society principle of the recently published EU 2020 strategy6. about past achievements and future priorities The need to move towards more sustainable patterns of on the road to sustainability, harmonising the consumption and production is more pressing than ever. needs of business and society in the long term. For companies, contributing to sustainable development Cosmetics Europe therefore supports an approach means being responsible and committed members of based on life cycle thinking and involving the three society, harmonizing economic, ecological and social pillars of sustainability.

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 5 Life Cycle Thinking and life cycle assessment

As part of Cosmetics Europe’s Good Sustainability > Life Cycle Assessment (LCA) is a structured, Practice (GSP), Life Cycle Thinking is taken as a internationally standardised concept for starting principle, recognising that a balanced quantifying the emissions, resources consumed, approach is necessary across the three pillars of as well as potential environmental and health sustainable development: economic, environmental impacts that are associated with goods and and social. Life Cycle Assessment is the science services (products). LCA takes into account the underpinning the life cycle thinking. product’s full life cycle: from the extraction of resources, production, consumption and Life Cycle Thinking and Life Cycle Assessment have up to the disposal of remaining waste been defined by the Joint Research Centre of the European Commission* as follows: Standard LCA methods are not always available or easily applicable to cosmetic products, and will need

> The concept of Life Cycle Thinking (LCT) aims at some refinement in this sense. supporting decisions in public policy and in the private sectors by considering effects along the Both Life Cycle Thinking and Life Cycle Assessment supply-chain and during the use and end-of-life are most advanced on the environmental aspects management of products. The purpose of this and have the potential to include economic and approach is to avoid adverse effects that may social aspects, the other two pillars of sustainability. counteract improvements made in other life cycle stages.

* lct.jrc.ec.europa.eu

6 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY THE THREE PILLARS OF SUSTAINABILITY

4.1 Environmental aspects

A number of tools are available to support are the guidance documents published by ECHA assessments within the environmental pillar of (the European Chemicals Agency*) for REACH sustainability. These tools have been designed with assessments (Guidance on information requirements specific objectives and needs in mind and have and chemical safety assessment8). different scopes and data requirements. Environmental Risk Assessment (ERA) provides an assessment on EMS combines regulatory requirements in terms of the safety of product ingredients for humans and identified risk management (e.g. personal protection the environment. An environmental management equipment) and systems to identify and track wastes system (EMS) ensures optimisation of resource use and emissions in order to define controls to reduce and manufacturing outputs in terms of wastes and these loses. A properly designed EMS will not only emissions, whilst protecting employees’ safety. be good for employees and the environment, but will also reduce wastes and other costs and thus ERA is the fundamental tool used by producers, increase profits. There are a number of reference users and regulators around the globe to materials to help design a proper EMS, however determine the objective environmental safety of an ISO 14000/140019 is probably the best starting ingredient. ERA assesses the various environmental point. These tools have a focus on a particular compartments which are relevant for the product stage of a product life cycle, with ERA looking at type in a framework that compares environmental consumer use and disposal and EMS often focused loading (exposure or relevant concentration after on manufacturing only. LCA, however, provides a any mitigating effects such as holistic impact assessment and integration of the or wastewater treatment) to potential hazards resource use and environmental burdens associated (potential effects from the material or its breakdown with a product over its whole life cycle. LCA is components) to define the margin of safety. designed for a comparative purpose based on The biggest challenge for environmental environmental impacts, whereas ERA is designed assessments is that the assessor often not only in a precise and conservative manner for the risk needs to consider a particular product formula assessment of a substance. use, but rather the total volume potentially used of the material in question within a specified country Society has become concerned about issues such or region and environmental compartment (e.g. as natural resource depletion or environmental wastewater, air, landfill). Why? The environment degradation. The environmental performance does not get exposed to formulations, but rather the of products and processes has become a key ingredients get disassociated from the formulation consideration. Many businesses have responded and the environment experiences the potential to this awareness by assessing how their activities combined impact of the total volume released from affect the environment, reducing non-renewable all sources. For example, ultimately resources, using ‘greener’ processes and end up going down the drain, and their ingredients investigating ways to improve their environmental as well as all other products go through waste performance in a holistic way. Many companies water treatment and discharge in mass versus on have engaged in exploring ways of moving beyond a product by product basis. There are a number of compliance using pollution prevention strategies published standards for doing these assessments, however, the one which will be of most value * www.echa.europa.eu

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 7 and environmental management systems to improve An LCA covering the entire life cycle evaluates all environmental performance. Member companies stages of a product’s life from the perspective of Cosmetics Europe have contributed significantly that they are interdependent, meaning that one to the development of LCA through bodies like the operation impacts the next and at the same time Society for Environmental Toxicology and Chemistry is impacted by the one before. By including the (SETAC) and subsequently to ISO in the development impacts throughout the product life cycle, LCA of ISO standards for LCA. provides a comprehensive view of the environmental aspects of the product or process and a more LCA comprises basically three parts: accurate picture of the true environmental trade-offs

> definition of goal (why the LCA is carried out, e.g. in product and process selection, from raw materials marketing claim documentation, benchmarking to disposal. Therefore, Cosmetics Europe takes existing product for eco-design improvement, the view that the LCT / LCA approach for product etc.), scope (functional system) and process design and communication to the consumer or system boundaries (e.g. infrastructure may be other stakeholders should include all stages of the included or not, only energy may be considered for product’s life cycle, including the use phase and end the study, material recycling benefits allocation to of life (‘cradle to grave’). avoid double counting, account for carbon uptake by plants growth (in for example), account The whole life cycle approach carries with it a for land use or not, etc.) degree of variability and uncertainty. For example the impacts of raw materials transport or of

> the construction of a Life Cycle Inventory (LCI) water usage can vary greatly due to geographical which identifies the important inputs (resources location. Therefore, care must be taken in the use and energy) and outputs (emissions, wastes and and presentation of LCA outcomes as an absolute discharges) over the whole Life Cycle result. However, within a specific study context, the comparative nature of LCA based on product

> impact assessment to evaluate the relative categories can be a strength that is unique to this impacts from each of the Life Cycle phases and environmental assessment tool. However, life the establishment of areas for improvement. cycle thinking is absolutely fundamental to making progress on sustainability.

8 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 4.2 Social aspects

Cosmetic products play an essential role in In addition, social engagement plays an important everyone’s life. Each day, 450 million Europeans role in the culture of many cosmetic companies, use a variety of cosmetic products such as soap, involving their employees and retirees, customers , conditioner, deodorant, toothpaste, and consumers, to meet social challenges. Through cream, skin care, , perfume, make- volunteer projects, often in cooperation with local or up, etc. In a competitive and stressful world that international organisations, cosmetic companies and demands vitality, energy and good health, cosmetics their employees make contributions to improving are increasingly performing an important role for sustainability. Encouraging volunteer work benefits individuals and for the society as a whole. everyone involved: communities, the company and the employees themselves. Through this, employees The most obvious societal aspect of cosmetic not only expect companies to benefit society; they products is their contribution to good hygiene, also want to make a contribution themselves. In this acceptance by others and to self-esteem10, which are way, companies significantly contribute to a positive essential for the population’s sanitary conditions, social development, independent of the products health and well-being. Safe and efficient cosmetic produced or the processes managed. products provide consumers with daily benefits: soap, shampoo and toothpaste keep the skin, scalp The working conditions of employees, including and teeth respectively clean and healthy, sun care safety in the workplace throughout each step of the products protect against the harmful effects of UV supply chain in the life cycle, are another important rays. In addition, a robust and competitive industry social aspect addressed by our industry. Permanent contributes directly to the wealth of the communities improvements are key to delivering positive impacts in which it operates by e.g. providing employment, for employees. paying taxes and engaging in social developments that ensure good working conditions. Suitable training to enable employees to meet their responsibilities, fair compensation, as well as a The fact that the cosmetics industry has a strong positive work climate are essential, as are respecting sense of social responsibility is reflected in many the personal dignity and safeguarding the privacy projects and programmes such as the worldwide rights and equality of all employees. Continuously collaborative initiative ‘Look Good Feel Better’ improving occupational health and safety and (www.lookgoodfeelbetter.co.uk). This is a cancer ensuring the employees’ long-term motivation and support charity that helps women manage the capacity to work are also fundamental. visible and emotional side effects of cancer treatment through the use of cosmetic products.

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 9 4.3 Economic aspects

Economically secure and sustainable enterprises are This includes competing fairly and making decisions essential to promoting effective protection of the on the basis of rational economic criteria, within environment and to driving social progress. the bounds of relevant laws, standards and norms. Companies are judged not only by their short term Through all their offices, operations and along the profit but also in the way that they interact with supply chain, cosmetic companies stimulate the shareholders, employees, customers, suppliers, economic development at the local level. In many competitors, government, communities and the places, companies are an important employer and environment. The good sustainability practice of local business partner. Beyond the creation of jobs, a company is crucial to its long-term success. significant portions of the sales revenue flow back into the local economy, both directly and indirectly. The cosmetics industry represents an important economic sector with several thousand companies, To be economically successful, companies must be and direct and indirect employment of more than flexible and innovative in the allocation of resources 500,000 people. Over five billion units of cosmetic and the development of their activities, wherever products are sold in the European Union every year. they operate. Employees and management staff The European Commission’s Directorate General are subject to a variety of cultures, local laws and Enterprise and Industry quotes total annual sales regulations in operating their diverse businesses. of € 63 billion, almost half the global total Within companies, business ethics set standards (http://ec.europa.eu/enterprise/e_i/news/ of conduct to be respected by all employees. article_6940_en.htm).

10 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY Good Sustainability Practice practical guidance

Cosmetics manufacturers must comply with the If companies do not have yet a Management System, legal requirements of relevant legislation, including they can consult the ISO Management Standards competition law. Additional voluntary initiatives can as an option for guidance (www.iso.org/iso_14000_ provide more benefit to the industry, its employees essentials.htm). Guidance can also be obtained from and its consumers, and can contribute to the the Eco-Management and Audit Scheme, EMAS, sustainability of the industry and of its products. the European Union’s voluntary scheme designed for companies and other organisations committing Broadly speaking, individual companies can take themselves to evaluate, manage and improve the following action steps: their environmental performance11. Unlike for ISO,

> Define the company strategy and its individual compliance with EMAS can be recognised by a point of focus specific logo.

> Define long term and short term objectives

> Identify and take actions In the following sections, practical suggestions

> Measure the achieved results (Key Performance are made to companies with regard to actions that Indicators – see section 5.4) they may want to take in order to move towards a

> Assess the achieved results against objectives more sustainable consumption and production of

> Report cosmetic products.

> Define corrective actions, where needed.

To assist in this process, if not yet done so far, individual companies should have their own Management System approach to the environmental aspects of their business. A proper Environmental Management System is a management tool enabling an organization of any size or type to:

> identify and control the environmental impact of its activities, products or services,

> improve its environmental performance continually,

> implement a systematic approach to setting environmental objectives and targets, to achieving these and to demonstrating that they have been achieved.

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 11 5.1 Life Cycle Assessment

Practical guidance on how to apply LCA is available Quality of data from various sources. Here reference is made to the requirements for the quality of data, level of guidance developed by EUROPEN, the European technology (to be comparable with data from other Association for Packaging and the Environment12. participants and data sources), validity period of It contains helpful suggestions, which can be useful data and validity period of the study must to any company. be defined;

Before participating in an LCA study or sharing Energy model* data, the following items should be addressed and the energy model must be relevant and discussed discussed in an open and transparent procedure by with all stakeholders; when evaluating electrical all participants: energy consumption, the relevant grid production mix shall be used. Transparency one of the most important ISO requirements; Allocation models it applies to all stages of the life cycle study, allocation models must be transparent and and especially to all assumptions and value sensitivity tests are necessary for all major choices involved; allocation models;

Scope Impact categories the scope of the study must be clearly defined, the the chosen impact categories must be defined. limitations clearly stated; the names of participants So far, there is only a broad international agreement in the study should be listed; on impact assessment methods for the categories of ‘climate change’ and ‘ozone depletion’. Significant Objective uncertainty exists regarding aquatic pollution the objective of the study must be clearly stated, impact assessment methodologies and, so far, the discussed with and commonly understood by all the EU Ecolabel for shampoos, shower gel and hair involved stakeholders; the decisions which should conditioner uses two complementary methods, be taken on the basis of the study’s results should namely the VCDTox** and the DPD (former Dangerous be defined; Preparations Directive) to assess the aquatic pollution. Recent activities under the SETAC/UNEP Critical review Life Cycle Initiative umbrella achieved good progress when the LCA study is intended to be used for an in the development of a consensus model (USEtox). environmental claim to be disclosed to the public Any prioritisation and weighting of impact categories for purposes of comparative assertion, ISO requires should be transparent and clearly state and justify a critical review of the study; this is to allow an the value choices involved. Preferably, these steps independent review of the study by external experts; should be defined at the beginning of the study.

System boundaries and functional unit * Electrical energy is produced from different sources in different countries and the system boundaries and the functional consequently has significantly different environmental impact. Although the unit must be defined and related to the overall European electrical grids are linked, the transport capacity between national grids is limited. service provided; ** Critical Dilution Volume toxicity

12 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY In comparative studies disclosed to the public, Communication of results needs to be carefully weighting (aggregation of results across impact considered due to a number of factors categories to achieve a single score figure) is > Assumptions are typically needed to define the not ISO compliant. model. Hence, these need to be communicated with the results. Interpretation of results > Comparisons between LCAs, due to assumptions > the results of the Life Cycle Inventory (LCI) and, and different background data, are fraught with if conducted, the Life Cycle Impact Assessment potential complications. It is very difficult to (LCIA) need to be qualified, checked and evaluated get a true like-to-like comparison. Again, these as a basis for conclusions and decision-making; differences need to be fully understood and be the interpretation should include: part of the communication.

. identification of significant issues, such as > The LCA process yields a number of metrics versus inventory categories (e.g. energy use, emissions, a single result and, hence, all elements need to be waste), impact categories (e.g. climate change) communicated as there are potential tradeoffs.

or essential contributions from processes or life > LCA is not a totally perfect sustainability cycle stages (e.g. transport, energy generation); assessment as there are factors which are not . completeness check to verify whether the part of the modelling, e.g. habitat impacts gained information is sufficient to justify (e.g. rainforest deforestation), renewable the conclusions; versus non-renewable sourcing, etc. . consistency check to verify that assumptions, methods and data are consistently applied Further information and guidance can be found on throughout the study; the European Commission’s Joint Research Centre . sensitivity check to verify the reliability of the Life Cycle website (http://lct.jrc.ec.europa.eu/ final results and conclusions by determining publications), including the International Reference uncertainties in all steps of the study. Life Cycle Data System (ILCD) Handbook13.

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 13 5.2 Environmental aspects of the main phases in a cosmetic product’s life cycle

5.2.1 > Explore options for optimisation of cleaning Manufacturing procedures with the aim of using less washing Manufacturing of cosmetic products is an integral water and/or reducing its temperature.

part of their life cycle, from raw material extraction to > Consider insulation measures for buildings (walls, product manufacture, distribution, use and disposal. windows) to reduce energy consumption for heating Many initiatives have been already instrumental and air conditioning; same for hot water piping;

to reducing its environmental impact. > Explore options for optimisation of production planning (sequence of batches produced using However, reducing the cosmetics industry same equipment), ideal sequence may save some manufacturing impact to a larger extent is possible washing steps;

and remains a critical element to respect the planet > Consider replacement of old equipment by and, therefore, to comply with the commitment to new, energy efficient electrical devices (e.g. address the environmental pillar of sustainable pumps, extruders).

development. Any new voluntary initiative in this > Consider ‘energy recycling’ from hot waste water or air. area would provide even more benefit than simply complying with the related legislation. 5.2.2 Individual company goals should take into Product formulation consideration cutting water and energy consumption Cosmetic products must comply with the as well as waste, generally reducing carbon footprint requirements of the cosmetics legislation: Directive and obtaining more materials from sustainable 76/768/EC14 and the new Regulation 1223/200915. sources. Sustainability reports from individual companies show that real achievements have already Mandatory requirements to ensure human safety been made and that opportunities still exist to of cosmetic products:

further reduce the cosmetics industry’s impact > Ingredients used must be in compliance with on the environment. the Annexes of the EU cosmetics legislation;

> The ingredients and the final formulation have to Further tips for progress: undergo an expert safety assessment regarding

> Review current input, manufacturing processes human safety in accordance with the EU cosmetics and output legislation and the SCCP Notes of Guidance16

> Identify risks and risk management measures

> Keep abreast of state-of-the art technologies Mandatory requirements to ensure products’

> Seek internal and external advice on how environmental safety:

to progress > Respect the CITES Regulation (EC) N° 338/97 17 > Form partnerships with suppliers. (endangered/protected species) for raw materials 5 > Ensure compliance with the REACH regulation

In more concrete terms: > Ensure compliance with occupational safety

> Consider reducing temperature during requirements for raw materials manufacturing or filling by application of new technologies such as cold emulsification In addition to complying with the legal requirements, technology. companies may consider taking voluntary action to

14 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY enter the field of sustainability or to progress further, of Intentions on the ECHA website (http://echa. if starting from a more advanced level, for example: europa.eu/chem_data/reg_intentions_en.asp)

> Consider the entire life cycle of your raw materials to check for substances which may become and products. under scrutiny;

> Assess the environmental profile of substances > Look into environmental and/or human health used as ingredients in cosmetic products: hazards of your ingredients and decide for suitable . Define a threshold value for a PEC/PNEC* ratio alternatives with a lower hazard level for a specific as described in the COLIPA guidelines for function if available; assessing the environmental impact of cosmetics (requires a comprehensive set of data for the Look into the question of the extent of using respective substance)18. limited resources:

. Request from suppliers or investigate the > Consider the use of chemicals derived from degree of biodegradability, the bioaccumulation renewable resources (originating from biological potential and the aquatic toxicity of raw materials organisms), risk of transmission of diseases in the used; calculations on the formula level give of animal derived materials, the CITES list of an opportunity to optimize each product for endangered or protected species19 or responsible environmental impact; consider compliance with land use in case of plant derived materials;

EU regulation also in countries/regions where this > Reduce concentration of ingredients with is not mandatory; environmental profiles of concern by formula . In the case of volatile substances, consider their optimization at sustained performance;

potential to induce ground-level ozone formation > If compatible with company policy, criteria for and optimize your product’s environmental profile organic ingredients or fulfilling principles of by selecting appropriate ingredients; sustainable agriculture may be considered for . Define criteria in order to select raw materials with plant-derived materials used in specifically respect to their environmental balance (energy positioned products;

and water consumption, emission to water and > Energy consumption / carbon footprint for the air, waste formation). manufacturing and transport of ingredients can be requested from suppliers or calculated on When carrying out a preliminary risk-assessment the basis of proprietary data from them or from at the stage of selecting ingredients, consider publicly accessible sources; knowledge provides the environmental and/or human health hazard opportunity for optimisation by supplier selection associated with substances used as ingredients (e.g. by geographical proximity); in cosmetic products: > In the case of products for cleansing/conditioning

> Ensure full compliance with requirements of the skin or hair, consider optimization of products chemical and cosmetics legislation, respectively; for reduced volume of rinsing water (chemical

> Define criteria in order to identify substances that composition of formula, product form); non-rinse you will not employ as ingredients, e.g. you could products for particular purposes (e.g. wipes);

use the criteria for the identification of PBT / vPvB > Reduction of energy consumption during substances (REACH, Annex XIII); check the Registry manufacturing by optimization of formula and/ or manufacturing instructions (e.g. reduced

* Predicted Environmental Concentration / Predicted No-Effect Concentration temperature or no heating at all);

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 15 Explore options to contribute to human health by 5.2.3 providing innovative / optimized cosmetic products Packaging (watch-outs: borderline discussion Packaging makes a valuable contribution to to pharmaceuticals or biocides): economic, environmental and social sustainability

> Oral care products with improved profiles through protecting products, thus preventing product concerning preventive characteristics; loss and degradation, enabling efficient business

> Cleansing products which can contribute to conduct and by providing consumers with the improved hygiene; benefits of the product it contains. Its fundamental

> Innovative/optimized products for protection role is to deliver the product to the consumer of skin or hair from damage by UV-light. in perfect condition. In many cosmetic products, Explore options to improve consumer’s quality the packaging is also critical to the application and of life by providing innovative cosmetic products function of the product in use. For some products, it (e.g. with an improved performance for less impact also performs a key role in making the whole product/ on the environment): package attractive, desirable and acceptable to the

> Consider formulating and marketing of cost- consumer, contributing to their sense of self-image optimized products of all types for value-offers and well-being. The challenge for the packaging distributed in countries with a lower average designer is to maintain or enhance the consumer income level; acceptance and impact of the packaging, while

> Consider formulating and marketing of products supporting sustainability objectives. which are suitable for special consumer target groups (sensitive skin, patients under In the European Union, packaging is mainly regulated chemotherapy, consumers with a tendency to under the Packaging and Directive19 exaggerated sweating); which establishes common rules for packaging. Its objectives are to help prevent obstacles to Apply sustainability criteria in the selection trade and to reduce the environmental impact of raw material suppliers: of packaging. The Directive contains Essential

> Consider cooperation with fair-trade organizations; Requirements, the purpose of which is to:

> Consider contributing to reduction of land use e.g. > keep packaging weight and volume to the minimum by cooperation with the Roundtable on Sustainable amount needed for the safety, hygiene and Palm Oil (RSPO*) consumer acceptance of the packed product,

> Consider selection of suppliers which have > keep noxious or hazardous constituents to established and are publishing a sustainability policy. minimum, and

> ensure that packaging can be re-used and/or Consider the Green Chemistry approach, which recovered once it has been used. consists in chemicals and chemical processes designed to reduce or to eliminate negative A suite of CEN standards for demonstrating compliance environmental impacts. The use and production of with the Essential Requirements is published and these chemicals may involve reduced waste products, formally recognised by a European Commission non-toxic components and improved efficiency. Communication 2005/C 44/1320. The standards provide a practical and effective route to compliance. Further information, including the 12 Principles of EUROPEN, the European Organisation for Packaging Green Chemistry can be found at www.epa.gov/ and the Environment, has developed a document greenchemistry/pubs/about_gc.html which can be referred to ‘Essential Requirements for Packaging in Europe: a Practical Guide to Using the CEN Standards’21.

Practical guidance on how companies could build * www.rspo.org a sustainability strategy for packaging has also

16 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY been developed by EUROPEN: Packaging in the 1 Does the package protect the product from Sustainability Agenda: a guide for corporate decision- degradation, contamination, losses, etc. during makers’22. The guide applies the Deming PDCA (Plan, storage, shipment and use? Do, Check, Act) cycle23 a model that can guide the 2 Does it deliver the product in a form that is usable process of developing a sustainability strategy. It is and desirable by the end user? intended to be a repeated and continuous cycle: 3 Is the design cost effective? 4 Does it meet or exceed the regulatory and trade Plan requirements where it will be offered for sale? recognise an opportunity and plan ahead for change; Labelling elements should be considered as well design or revise business process components to here, such as green dot and recycle symbols. One improve results; big element to consider is the packaging usage at the minimum required to deliver the product in a Do it safe, protected and usable form (e.g. headspace execute the plan, taking small steps in controlled has been reduced to the minimum needed). circumstances and measure its performance; 5 Is the packaging designed to allow optimized use of shipping? Check study the results; assess the measurements In addition to these functional or technical design and report the results to decision makers; criteria there is another performance element: appearance. The cosmetics industry recognises that Act consumer frequently have aesthetic expectations take action to standardise and continually improve relating to cosmetic packaging which needs to process performance; repeat the cycle. be designed in such a way that it communicates to and meets the expectations of the consumer In order to make a positive difference, a holistic regarding product performance and design. approach along the entire packaging value chain This aspect of consumer acceptance is important is needed. and, consequently, Good Sustainability Practice will apply differently to different product types Another guide can be obtained from and market segments. For some categories, the Coalition might be most appropriate to convey the (http://www.sustainablepackaging.org/ message of excellence expected by consumers, while content/?type=5&id=design-guidelines). in others light weight plastics would be consumer EUROPEN and the SPC are the two leading advisors to preferred. Secondary may be required for the Global CEO Forum for Packaged Consumer Goods. providing labelling text or to protect the product Overall, the packaging designer needs to make from damage or theft, whereas this is less of a its package functional, consumer acceptable concern for other channels of distribution or product and to minimise the impact on the environment, types. Additionally, professional use packaging may taking account of all of the phases of life cycle have to be, for instance, more robustly designed than thinking. Among the main considerations in consumer use packaging. packaging design are: Material Choice Performance While material choice is often driven by performance This is likely the most obvious element. Any package or regulatory needs, there are other factors which design must have some specific technical function should be considered. and performance elements designed in or it will 1 Has the use of recycle plastic been considered neither meet the requirements of regulations nor or optimized? One caveat here is that careful be acceptable to consumers. The main questions to consideration on performance and safety needs address are: to factored in.

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 17 2 Does material sourcing consider transport? increasing pressure to reduce CO2 emissions, there 3 Does the supply chain practice good environmental is a real opportunity to drive improved fuel economy stewardship in terms of waste reduction, social and within existing fleets and assets through the economic elements? application of some simple principles, such as:

4 Are the materials and dyes/pigments/inks safe for > maintain correct tyre pressures and replace consumers and the environment? Food grade dyes worn tyres;

are often one way to ensure this. Are there REACH > correctly maintain the vehicle fleet;

defined substance of very high concern in the > manage the aerodynamics of the vehicle;

material at greater than 0.1% which will need to > choose the appropriate route;

be communicated throughout the supply chain. > cut-down on unnecessary wheel load;

> implement driver training, performance monitoring Resource Recovery and improvement programmes; 1 Is the packaging designed in a manner which > manage the aerodynamics of the load. allows ready recycling or recovery by the user consistent with the infrastructure available? A greater use of technology in industry’s logistics 2 Is the packaged clearly marked such that recycling operations can help reduce fuel consumption, is encouraged. improve planning, monitor vehicle and driver 3 If using a renewable or biodegradable material, it performance and reduce operation costs and is important to understand whether this is actually environmental impacts. An online resource is relevant in how the package will be recovered or available from ECR UK Technology Workgroup to disposed. For example, having a biodegradable provide a practical support guide to help companies package which ends up in a landfill may have decide which solutions, potentially supported by minimal environmental value as degradation in technology best suit their needs (http://www.igd.com/ landfills is limited. index.asp?id=1&fid=5&sid=43&tid=59&foid=52). 4 If considering reuse, the suitability of the product form for such reuse needs to be carefully Increasingly, the drive for lean and agile supply considered. Once primary concern here is safety chains, and the move to stockless and flow-through due to potential contamination. operations, is driving stock back up the supply chain and resulting in the need for smaller, more In this work, one should not simply focus on the frequent deliveries. This can lead to additional costs elements of the primary package, but should consider and result in sub-optimal deliveries for suppliers, the secondary and tertiary packages as these can large and small, decreasing the level of vehicle fill. also be an impact and hence an opportunity area. The use of consolidated distribution networks can For example, shipper can often comprise be an important means to achieve a sustainable even higher recycle content and if designed properly distribution. One significant area of opportunity with the primary containers, be of lighter weight. is in increasing load utilisation – ‘filling the cube’. The most commonly used methods for quantifying Both EUROPEN and SPC have projects and how ‘full’ vehicles are tend to be based on the guidelines which can help in these and other number of (or other shipping unit) footprints aspects of sustainability. that are carried by the vehicle.

Further information on sustainable distribution can 5.2.4 be found on the website of The Food and Grocery Distribution Experts, www.igd.com. Transportation of ingredients, materials, packaging and products can be an important component of Companies can establish and maintain control cosmetic products’ life cycle. With fuel accounting arrangements for the safety evaluation of their for at least 30% of transport operating costs, and products to ensure that they are safe throughout the

18 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY distribution chain, from manufacturer to consumer, and hair conditioners by members of Cosmetics and survive in acceptable condition. This can be Europe and, in addition, by the Chalmers University* achieved by: in Sweden and the consultancy Ecobilan** in France. . evaluating the safety of product during distribution All the LCAs have been carried out according to the in terms of foreseeable mishandling and accidents SETAC*** Guidelines for Life Cycle Analysis and the ISO as well as intended handling; standard series 1404025. The LCAs have examined . verifying that the product is in compliance with the whole supply chain from the production of raw the legislation governing the Transport of materials to the use and final disposal of the product, Dangerous Goods. with some very consistent conclusions:

> the most important phase, from the environmental Delivery of the packaged product in an acceptable point of view, is the consumer use of the condition to retail premises and then to consumers product, since the majority of the energy used is the very first function of packaging. Stability (approximately 90%) is associated with heating the of secondary and tertiary packaging is a key water to shower, to bathe or to wash hair. contributors to sustainable consumption by > since generally energy generation is often preventing product damage during distribution. responsible for the emission of pollutant gases such as CO2, SO2 and NOx and for the production Transport occurs at all levels in the product system of solid waste, it is also evident that the use phase and is under high pressure for fuel-related emissions. may be responsible for the largest contribution to The European Parliament and Council Regulation solid waste and air emissions. 24 715/2007 contains common requirements for > since products are discharged down the drain after emissions from motor vehicles and their specific use, the impact on the aquatic environment can replacement parts (Euro 5 and Euro 6 standards). be largely associated with the toxicological and In order to limit as much as possible the negative degradation properties of the ingredients. impact of road vehicles on the environment and health, the Regulation covers a wide range of These LCAs have concluded that the most significant pollutant emissions: carbon monoxide (CO), non- reduction in the environmental impact of a shower methane hydrocarbons and total hydrocarbons, gel, shampoo or will derive from nitrogen oxides (NOx) and particulates (PM). the reduction of energy consumption during the showering/washing process. Whilst it is unrealistic to Euro 5 is in force since 1 September 2009 for the expect that consumers would wash in cold water, there approval of vehicles, and will enter into force on are opportunities to educate consumers in how best to 1 January 2011 for the registration and sale of new use products in a systematic way and thus, overall, to types of cars. Euro 6 standard will come into force reduce the energy consumption. on 1 September 2014 for the approval of vehicles, and on 1 January 2015 for the registration and sale The provision of products which satisfy consumers’ of new types of cars. expectations more efficiently and optimise ingredient use with respect to concentration and compatibility, is not sufficient in itself. The achievement of a 5.2.5 reduction in the environmental impact of the process Product use phase (consumption) has a very distinct consumer dimension. However, The primary impacts of cosmetic products differ responsibilities also remain with producers to improve by category sectors. It has been well documented their processes for manufacturing the finished that for cleansing products including shampoos, products; often these come with cost reductions. soaps, hand washes, etc., the use phase can be a significant contributor that cannot be overlooked for a product’s environmental impact. For example, LCAs * www.chalmers.se/en ** www.ecobilan.com have been carried out on shower gels, shampoos *** www.setac.org/node/365

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 19 Information provided to consumers about simple 5.2.6 actions that they can take, such as: Post-use phase: > spending less time in the shower, collection, reuse, recovery and > reducing water temperature by 1° or 2°C, disposal of packaging > turning off the tap during tooth-brushing; There is no unique solution for the management

> dosing the correct amount of product for of packaging waste. The optimum mix of waste the purpose, management techniques (reuse, recycling,

> drying hair using a lower setting on a hair drier or incinerating with energy recovery or composting) naturally without a dryer, which will also benefit will depend upon a variety of factors including the health of the hair, will help them engage infrastructure and consumer habits, the degree in sustainable behaviours and yield significant of investment made in modern separation and reductions in the environmental footprint of products processing systems, as well as the type and makeup such as shampoos and shower gels. of the packaging itself. Hence, considerations between market capabilities and norms and As shown above, the use phase of consumer appropriate packaging choices need to be factored products is often shown to be very critical for the into impact analyses. final LCA result. LCA studies measure environmental differences between alternatives that perform the In order to be efficient and environmentally sound, same function. Typically, the use pattern of products all recovery systems need to achieve high collection defines the performance delivered. It is, therefore, rates of packaging waste. Manufacturers must essential to have good insight on use patterns for a offer products which meet any local regulatory fair comparison. It is also important to understand if requirements for post-use collection and disposal. an average use pattern is realistic or if products tend The material choices and design should be such that to have segmented use patterns. encourage and enable consumers and municipalities to maximise appropriate collection and disposal at the Information on use pattern may include: market level. However, collection depends on several

> amount per use: recommended vs. actual dose; factors outside the packaging supply chain’s control:

> use frequency: is use frequency only impacted by consumer awareness, proper stock rotation in stores, the function under study or could alternative uses efficient promotional management, forecasting and with the same product increase usage figures? inventory control, local demographics, availability

> in case of product available in different sizes, are of efficient recovery and recycling technologies, etc. use patterns the same for small and larger sizes? Variations in the performance of collection schemes

> additional processes with product use: what is the often correlate with complaints of lack of information relative importance of these processes in the total? or of confusion. Companies can support higher For example, in hot water applications (as with awareness by participating in or initiating education shampoo), it is important to know temperature campaigns. They need to work together with national differences, amount of hot water used and heating associations, politicians, municipalities, waste appliance efficiency (gas vs. electrical boiler) management companies, retailers and packaging manufacturers to design the most appropriate solution to any particular problem in any given region.

20 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 5.3 Sustainability information and communication

European Union’s Waste Framework Directive All societal actors, including the cosmetics industry 2008/98/EC26 aims to prevent and reduce the and its customers (retailers and consumers), have generation of waste. Given that packaging their role to play in developing and implementing prevents product wastage, it is making a significant the overall sustainability agenda. The cosmetics contribution to that goal. industry’s responsibility is not only to work on improving its own sustainability practices, but For some cosmetic product categories, where also to inform consumers about the sustainability product quality can be assured, reuse of packaging and the sustainable use of cosmetic products. can be considered. This is most commonly In Cosmetics Europe’s view, sustainability-related achieved through offering of refills. If applicable, information about products, communicated to the packaging needs to be designed such that it consumers, must be withstands a number of such rotations within its life > based on risk and underpinned by sound science cycle before being recovered, when it can no longer and harmonised methodologies; be used. There is no general preference for reusable > LCT (Life Cycle Thinking)-based; or non-; the choice depends > simple, easy to understand and credible (see first entirely on the local supply chain and market. two items above);

> meaningful and helpful in achieving the targeted Recycling plays a key role in the environmental goals; performance of many materials. For example, > truthful (not misleading) recycling aluminium saves up to 95% of the energy required for virgin materials; recycling PET saves and it must also around 50% of the energy. Recycling should be > reflect the broad consensus of stakeholders adopted when it results in lower environmental (regulators, manufacturers, retailers impacts than alternative recovery options and where and consumers) other requirements, such as safety, are met. Some > respect competition law. types of recovered material are also a valuable source of energy (incineration with energy recovery). Provision of information on the sustainability of Therefore, recycling needs to be considered within products should be part of a holistic approach, a balanced approach to packaging recovery. including education campaigns, in order to influence consumer behaviour in general and purchasing There is no unique solution for managing packaging decisions in particular. It should, in any case, waste. The best mix of options depends on local be in compliance with the various pieces of conditions, especially the demographics and the relevant legislation: degree of investment made in modern processing > Cosmetic Products Regulation (1223/2009); systems. Determining the best mix of options for > Unfair Commercial Practices Directive (Directive managing packaging waste thus requires a careful 2005/29/EC) consideration of both package design and external > Misleading and Comparative Advertising Directive factors, where life cycle assessments can give (Directive 2006/114/EC) valuable decision support.

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 21 > Audiovisual Media Services Directive (2007/65/ The UCPD prohibits certain misleading EC amending 89/552/EEC, setting claims quality environmental claims; these are listed in Annex I standards for advertising on TV) of the Directive.

> Electronic Commerce Directive (Directive 2000/31/EC) Product comparisons involving environmental claims

> Article 3 of the EC Treaty (Principle of free must be assessed under the criteria set out by the movement of goods: national rules on claims may Directive on Misleading and Comparative Advertising not impede intra-EU trade). 2006/114/EC28.

There are many ways of communicating with The European cosmetics industry is committed to consumers including off-pack leaflets, in-store providing consumers with information on all relevant information, websites, advertising, product , characteristics of cosmetic products. Specifically, education campaigns, etc. it supports factual, transparent communication to consumers about genuine and meaningful product The European Commission has published guidance impacts related to greenhouse gas emissions and on environmental claims27, as part of its guidance other environmental indicators in order to shape on the implementation / application of Directive consumer behaviour towards appropriate and 2005/29/EC on unfair commercial practices, also responsible choices. Carbon footprinting can be known as the UCPD. In this document, it is explained an important tool to identify the most meaningful that ‘environmental claims’ or ‘green claims’ refer greenhouse gases reduction opportunities for a to the practice of suggesting or otherwise creating given product or category of products. However, the impression (in the context of a commercial communication of a product’s carbon footprint via, communication, marketing of advertising) that a for example, on-pack labels and without addressing product or a service is environmentally friendly (i.e. all other significant environmental impacts is a it has a positive impact on the environment) or is source of significant debate, as it only gives part less damaging to the environment than competing of the overall picture. Placing a singular focus on goods or services. The UCPD does not discourage carbon could be misleading or result in shifting the use of green claims and provides a legal basis to environmental burdens to other indicators. Product make sure that traders use green claims in a credible assessments need to be holistic and consider all and responsible manner. The application of the relevant impacts, as measured across a range of provisions of the Directive to environmental claims environmental indicators, throughout the full life can be summarised in two main principles: cycle of the product.

> based on the Directive’s general clause, traders must, above all, present their green claims in a specific, accurate and unambiguous manner;

> traders must have scientific evidence to support their claims and be ready to provide it in an understandable way in case that the claim is challenged.

22 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 5.4 Social and economic dimensions

The world is facing huge sustainability challenges How can companies handle these sustainability that can be categorised in many ways. For instance, challenges? By inventing new business models to the world can no longer be considered as a single be responsive to new needs and aspirations! Start market place. Globalization today must face up (as always) with innovation (eco-design, green to the reality of our multi-polar and multi-cultural chemistry), supply chain (integrating financial and world, where the most robust economic growth is social cost assessment, and fair trade). Diversity in emerging markets. As a new worldwide political should not be endorsed as a ‘politically correct’ order slowly (but surely) emerges, issues such as corporate attitude, but managed as a competitive security of access to raw materials are becoming asset. Finally, transparent communication (not green ever more strategic and increasingly at the origin of washing) and dialogue with stakeholders are a must. tension throughout the globe. The inclusive financial and social crises have been widely debated using Social and socio-economic impacts found along universal communication platforms, connecting/ the life cycle of a product can be assessed through informing people on an unprecedented scale. In a Social-LCA (S-LCA). The Guidelines for Social Life the face of these crises the risk of popular backlash Cycle Assessment of Products, developed by UNEP is ever present and we are witnessing a range of and SETAC under the Life Cycle Initiative29, provide a new international regulations and a raise in local map which describes the context, the key concepts, protectionism. Under the impact of climate change, the broader field in which tools and techniques are coupled with burgeoning demographic challenges getting developed, and their scope of application. (overpopulation and ageing), we see the creation of They provide guidance for the goal and scope, divergent consumption models very different from inventory, impact assessment and interpretation traditional ones. phases of a social life cycle assessment; they also provide the necessary basis for the development of So what does all of this mean for companies? databases and the design of software that will ease Firstly, they must not forget that they are operating the practice of S-LCA. The guidelines are in line with not only on markets, but in societies… They must the ISO 14040-44 standards for LCA. assume their roles as local corporate citizen and demonstrate what their business is worth for local development. Above all, they must respect diversity 5.4.1 and local values within a global ethical approach to Employees wellbeing doing business. Secondly, they must work to build Physical, mental health and general wellbeing trust-based relationships able to generate long term at work are increasingly impacted by the fast local acceptance of the business practices, if only economical context changes and play a major role to protect their license to operate… However, by in fostering the workforce productivity. doing so they will most certainly benefit from less scrutiny and pressure, and are more likely to get The European Commission has endorsed in June support in case of issues and crisis. Furthermore, 2008 the European Pact for Mental Health and the will develop competitive advantage and be more Wellbeing* that considers mental health and successful in attracting (and retaining) local talents. wellbeing as key factors of European growth and

* ec.europa.eu/health/ph_determinants/life_style/mental/docs/pact_en.pdf

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 23 competitiveness. The Pact highlights the important incorporate within site objectives and business plan)

role that EU companies play in promoting health and > Identify and assess the root causes of poor wellbeing at work as well as a productive Europe. wellbeing and promote and support best practices The European Mental health and Wellbeing Pact of good wellbeing

focuses on four priorities for actions to be taken > Train managers and employees on risk factors by stakeholders including the business: (e.g. work organization, management style, the

> Prevention of suicide and depression, external environment in which the business

> Mental Health in youth and Education, operates wellbeing and individual resilience)

> Mental health in workplace settings, appropriate for the organization, in order to

> Mental health in older people. facilitate prevention, early detection, awareness- raising at all levels. Manage with the applicable By providing EU citizens with hygiene and personal organizational processes and tools.

care products, the , plays a major > Provide independent and confidential role in ensuring a safer and healthier daily life. communication channels through which Therefore the cosmetic industry is also careful about employees can report on wellbeing issues

maintaining and enhancing the health and wellbeing > Be aware of culturally appropriate terminology and of its employees. To achieve these objectives adjust communication accordingly (e.g. Wellbeing companies can refer to the CSR Europe guidance versus Mental Health) * document Wellbeing in the Workplace . It includes > Include questions about wellbeing in company tips to implement a successful wellbeing strategy**, surveys and provide employees with feedback best practices collected from various companies in on aggregate findings and proposed measures the field of prevention, identification and support for improvement

and re-integration of employees. Member companies > Ensure at all times confidentiality of individual of Cosmetics Europe will find concrete examples on employee data

how to implement > Ensure full organizational engagement of

> Global tobacco free workplace policy outsourced occupational health and wellbeing

> Employee’s diabetes screening campaign services (where applicable) in alignment with the

> Healthy nutrition and prevention of obesity service level agreement and business needs

programmes or > Recognize that employee responsibility and

> Mental health promotion campaigns including involvement forms a key element of a successful

> Stress assessment and management programmes wellbeing program

Companies can take the following actions: The CSR Europe guide has also developed a list of

> Ensure top level management understanding, references to support companies in mainstreaming endorsement and engagement in the wellbeing at work including documents from the establishment of a global wellbeing strategy European Commission, the European Agency for

> Fully inform and involve employee representative Health and Safety at Work (OSHA); the European bodies/trade unions as partners in the Network for Workplace Health Promotion; World development and actions of the wellbeing policy Health Organization (WHO); International Labour

> Implement the global wellbeing policy locally Organization (ILO) by addressing the needs of the employees and respecting the country culture and legislation > Mainstream wellbeing in daily business operations 5.4.2 by making it cross-departmental and operational; Empowering knowledge (e.g. move beyond HR/Health & Safety and Education stimulates employment. Companies have a major role to play in this field by raising employability skills and ensuring long term learning * www.csreurope.org/data/files/toolbox/wellbeing_guide.pdf ** www.csreurope.org/data/files/toolbox/wellbeing_tips1.pdf of its employees. Companies’ investments in

24 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY human capital will, at the same time, drive growth job – is key to developing and sustaining a thriving and competitiveness by building new skills and economy and cohesive society. competences. The development of the cosmetic industry depends for most on its ability to generate Among the actions already taken by various innovation. To be fully effective, the investment businesses some key needs have been identified: by the cosmetic industry in science should ideally > Targeting the next generation: Focus on low-skilled start before internal R&D plans. The business young people – business education programmes could therefore enhance science education at target these groups because they are the next school and should actively participate in increasing generation of customers, clients and employees. the attractiveness of mathematics, science and > Developing entrepreneurs technology among pupils. The expected objective > Promoting life-long learning would be to increase the number of graduates > Improving corporate talent retention, increasing entering careers in science and engineering. Under motivation and satisfaction. the umbrella of CSR Europe a Science in Schools Network* has been created across ten European CSR Europe also developed a good practice countries and gathers companies and education document that identifies pathways by which stakeholders. The network identified three businesses could support entrepreneurship main priorities: education and the creation of a more entrepreneurial *** **** > Providing teachers with opportunities to gain first mindset . Among the good practices across Europe , hand experience of how mathematics, science and the establishment of horizontal Initiatives to promote technology are applied in a wide range of jobs business-education links, complementary courses and

> Fostering curiosity and interest in science among training, awareness-raising tools, campaigns and event primary students organisations have been identified.

> Focusing on developing girls’ interests in MST subjects 5.4.3 In this context the cosmetic industry can: Diversity at Work

> Participate in national science/engineering weeks Diversity inclusion (DI) is a key factor of growth to increase the visibility of these important events and long term performances for companies.

> Cataloguing existing industry education resources Diversity management recovers various aspects that to let teachers know what is available enterprises have to integrate in their strategies to

> Developing podcast for teachers: A series of be compliant with the legal requirement but also to industry podcasts highlighting everyday science generate innovation and bring new talent into the and presenting scientists as role models. company, investigate new market opportunities or

> Develop placement of teachers in the industry build the company’s reputation. Enterprises should promote an ethical model of working life by fighting CSR Europe has developed other tools to discrimination and exclusion on the basis of gender, guide companies in generating knowledge and racial or ethnic origin, religion or belief, disability, employment. The Skills for Employability Report** age or sexual orientation. highlights the role of employee community engagement and makes recommendations to Since 2005, the European Commission has been the business for improving the skills amongst very active in promoting good practices to fight disadvantaged and socially excluded groups discrimination in the work place. In 2010 the of people within the EU. Ensuring people with European Commission is planning to provide disadvantaged backgrounds enhance their basic support to voluntary initiatives taken by business skills – the skills essential to gaining and keeping a and organization working with business that

* www.csreurope.org/data/files/toolbox/science_in_schools_booklet.pdf *** www.csreurope.org/data/files/toolbox/Entrepreneurship_Best_Practice_Guide.pdf ** www.csreurope.org/data/files/toolbox/skills_for_employability_report.pdf **** www.csreurope.org/data/files/toolbox/entrepreneurship_FLYER.pdf

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 25 promotes diversity management at the workplace furthers established governmental policies across the EU. These initiatives should cover race which specifically promote greater equality of and ethnic origin, religion or belief, age, disability, employment opportunity or relates to the inherent sexual orientation and gender equity. The European requirements of a job

Commission is planning to: > Provide information to employee representatives

> Organise and maintain a platform for EU-level which is needed for meaningful negotiations on exchange between organisations promoting and conditions of employment.

implementing national and regional diversity > Promote consultation and co-operation charters between employers and employees and their

> Develop a European diversity award and/or index representatives on matters of mutual concern

scheme at the workplace > Provide information to employees and their

> Develop diversity benchmark data for and with representatives which enables them to obtain a business true and fair view of the performance of the entity or, where appropriate, the enterprise as a whole

In order facilitate the diversity mainstream > Observe standards of employment and industrial at workplace Member companies of Cosmetics relations not less favourable than those observed Europe can refer to existing guidelines developed by comparable employers in the host country

at international and European levels. > Enable authorized representatives of their The OECD has developed in 2000 the OECD employees to negotiate on collective bargaining or Guidelines for Multinational Enterprises* that makes labour-management relations issues and allow the recommendations addressed by governments to parties to consult on matters of mutual concern multinational enterprises. This guide provides with representatives of management who are general and voluntary principles and standards authorised to take decisions on these matters. for business to implement including in the field of employment, industrial relations and human CSR Europe has worked on a toolkit for companies rights. Enterprises should take fully into account on diversity mainstreaming, explained in the established policies in the countries in which brochure ‘What you need to know to fight they operate, and consider the views of other discrimination and make diversity work in your stakeholders. company’. This toolkit also provides a complete On employment and industrial relations, list of Do’s and Don’ts for HR managers** to ensure enterprises should: equity in recruitment, insertion, integration, worklife

> Respect the right of their employees to be balance, communication, evaluation and mobility, represented by trade unions and other bona supplier diversity and training. fide representatives of employees, and engage in constructive negotiations, either individually On recruitment activities, companies can make the or through employers’ associations, with following recommendations to their HR managers: such representatives with a view to reaching For the sourcing activities:

agreements on employment conditions. > Stress involvement in favor of diversity

> Contribute to the effective abolition of child labour > Put job descriptions in writing

> Contribute to the elimination of all forms of forced > Use different methods of sourcing (not just online or compulsory labour but in newspapers and also using recruiting firms)

> Not discriminate against their employees with > Educate your interim agencies/head hunters respect to employment or occupation on such in diversity

grounds as race, colour, sex, religion, political > Define the sourcing/recruiting process

opinion, national extraction or social origin, unless > Include at least one diverse source when selectivity concerning employee characteristics posting a job

* www.oecd.org/dataoecd/56/36/1922428.pdf ** www.csreurope.org/data/files/toolbox/diversity_dos_and_donts_COMPLETE.pdf

26 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY > Erase the name of the university when passing Companies can promote initiatives for a better resumes from HR to managers integration of disabled in the workplace in order

> Mix the recruiting team to ensure equality among all employees. All the

> Analyze where candidates come from to find other services in a company should be accessible. potential/diverse sourcing opportunities For instance deaf or orally deficient workers have

> Identify success stories and share best practices the right to be integrated into key meeting or

> Start by publishing all job openings internally having their annual appraisal. In this specific case companies could provide the necessary tools such For the selection methods and interviews: as a sign language interpreter in order to facilitate

> put procedures in writing their integration.

> make it transparent

> train recruiters D&I does not just refers to HR activities but has to

> have recruiters use a written list of questions be integrated though the entire organization and

> survey applicants, especially rejected applicants, working process. Companies have to communicate for their feedback on the process to their employees about the internal policies and

> make sure any written test is given in the also have to engage the top managers in trainings candidates native language to give them responsibilities in implementing the

> have an observer in the interview group’s diversity policy. These types of events could

> create a handbook of question you are allowed be an opportunity to clarify the diversity concept and to ask and not ask issues by helping participants to identify barriers

> have a written decision for each candidate – on a personnel and organisational level and by why they did or did not get chosen providing participants with tools to construct

> give feedback to all rejected candidates an action plan.

CRS Europe is also sharing best practices on diversity mainstreaming*.They provide diverse examples of initiatives launched by different companies that members of Cosmetics Europe could also set at their workplace.

* www.csreurope.org/pages/en/best_practices_on_mainstreaming_diversity.html

27 5.5 Measuring, target setting and reporting

It is widely understood that one of the major The progress assessment versus these KPIs can be contributors to positive change in any activity measured considering one or several business units. is to measure where a company is today, set For European or Global Companies, it is advisable to improvement goals and then report progress. report as a whole organisation. Continuing to build an innovative and sustainable cosmetics industry requires this. Reporting is an Highlight measures which contribute to the social important aspect of transparency and assurance and economic well-being of your stakeholders. of environmental sustainability data helps to Common ‘soft measures’ supported by the cosmetics build trust with stakeholders. Many individual industry include:

companies have been publishing Corporate Social > Look Good, Feel Better campaigns

Responsibility (CSR) reports for several years. > Responsible sourcing of raw materials

> Charitable contributions

At this stage, there is no plan for an EU-wide > Support for vulnerable individuals and groups cosmetics industry system for measuring, target in locations where you operate or depend upon setting and reporting. for supplies

The following guidance highlights the key points Develop and publish goals to drive improvement of effective CSR reporting. in each of the key measures.

> Publish charts which show trends and progress Select key measures which are most relevant to you towards each goal and your particular product line, supply chain and market. Common measures to track include: Review all of the previous sections in these Good

> Energy usage in manufacturing per quantity of Sustainability Practices to select areas which you product produced will measure and track

> Energy usage from sustainable sources > Select and prioritise your measures

> Waste from manufacturing sites

> Quantity of CO2 emitted in manufacturing or Describe how you are organised, and who takes in the broader supply chain responsibility for your Sustainability programme

> > Quantity of CO2 emitted per quantity of Include statements by key leadership product produced > Include joint work and co-operation with

> Quantity of water – potable and non potable – key Commercial, Governmental and consumed per quantity of product produced Non-Governmental partners

> Quantity of waste – hazardous and non hazardous – produced per quantity of product produced Publicise your Corporate Sustainability Report inside

> Quantity of hazardous waste sent off-site per your organisation to:

quantity of product produced > Provide satisfaction and motivate to your

> Safety performance in operating sites employees

> Use of recycled material > Prompt employees to create and implement local

> Savings in distribution and logistics Sustainability initiatives above and beyond your

> Post consumer recycling initiatives company goals

28 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY Publicise your Corporate Sustainability Report Links to further guidance outside your organisation to: For more details on how to report your Sustainability

> Attract future employees activities, you can go to the Global Reporting

> Demonstrate your commitment to current and Initiative, whose mission is to create conditions future investors – studies have shown that for the transparent and reliable exchange of companies who demonstrate a high commitment sustainability information through the development to Sustainability create higher financial returns and continuous improvement of the GRI for investors Sustainability Reporting Framework. www.globalreporting.org/Home Publicise your Corporate Sustainability Report in business to business opportunities to: For access to the UN Global Compact, which is a

> Build productive customer-supplier relationships both a policy platform and a practical framework for

> Magnify your own efforts by stimulating demand companies that are committed to sustainability and for and supply of sustainable products, for the responsible business practices. benefit of everyone www.unglobalcompact.org/

> A number of packaging suppliers to the Cosmetics Industry are already actively engaged in For information on the EU’s voluntary scheme Sustainability, engage with them designed for companies and other organisations

> Retail partners are also very active committing themselves to evaluate, manage and improve their environmental performance. Publicise your Corporate Sustainability Report ec.europa.eu/environment/emas/pdf/factsheet/ through Industry Associations and in contacts with fs_iso_en.pdf Governmental and Non-Governmental Agencies to:

> Demonstrate that the cosmetics industry is For access to the Dow Jones Sustainability Index actively pursuing and progressing Sustainability www.sustainability-index.com/

> Maintain an influential voice with law makers and opinion formers

Your Corporate Sustainability Report should be available to stakeholders in convenient formats – hard copy, e-mail, web-site, booklet summary etc.

Choose a meaningful period to update your progress:

> Most companies choose an annual update, or biennial at the beginning

Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY 29 List of References

1 United Nations World Commission on Environment and 15 Regulation (EC) N° 1223/2009 of the European Parliament and Development (WCED), Our Common Future, also known as the of the Council of 30 November 2009 on cosmetic products, Brundtland Report, 1987. OJ L342, 22 December 2009. 2 Commission of the European Communities, Green Paper on 16 SCCP Notes of Guidance for the testing of cosmetic ingredients Integrated Product Policy, COM(2001)68; http://ec.europa.eu/ and their safety evaluation, 6th revision, 19 December 2006. environment/ipp/2001developments.htm 17 Council Regulation (EC) N° 338/97 of 9 December 1996 on 3 Communication from the Commission to the Council and the protection of species of wild fauna and flora by regulating the European Parliament: Integrated Product Policy, Building trade therein, OJ L 61, 3 March 1997; http://ec.europa.eu/ on Environmental Life-Cycle Thinking, COM(2003) 302 final, environment/cites/legis_wildlife_en.htm 18 June 2003. 18 Colipa guidelines for assessing the environmental impact of 4 Communication from the Commission to the European cosmetics, December 2008; www.cosmeticseurope.eu Parliament, the Council, the European Economic and Social 19 European Parliament and Council Directive 94/62/EC of 20 Committee and the Committee of the Regions on the December 1994 on packaging and packaging waste, OJ L 365, Sustainable Consumption and Production and Sustainable 31 December 1994 http://eur-lex.europa.eu/LexUriServ/ Industrial Policy Action Plan, COM(2008)397 final, 16 July 2008. LexUriServ.do?uri=CELEX:31994L0062:EN:NOT 5 Regulation (EC) N° 1907/2006 of the European Parliament 20 Commission communication in the framework of the and of the Council of 18 December 2006 concerning the implementation of the European Parliament and Council Registration, Evaluation, Authorisation and Restriction of Directive 94/62/EC of 20 December 1994 on packaging and Chemicals (REACH), establishing a European Chemicals packaging waste, OJ C 044, 19 February 2005 Agency, amending Directive 1999/45/EC and repealing Council 21 EUROPEN, Essential Requirements for Packaging in Europe: Regulation (EEC) N° 793/93 and Commission Regulation (EC) a Practical Guide to Using the CEN Standards, 2005; N° 1488/94 as well as Council Directive 76/769/EEC and www.europen.be Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC 22 EUROPEN, Packaging in the sustainability agenda: a Guide and 2000/21/EC. for corporate decision-makers, 2009; www.europen.be 6 Communication from the Commission: Europe 2020 – 23 Gabor A., The Man Who Discovered Quality, London, A strategy for smart, sustainable and inclusive growth, Penguin Books, 1990. COM(2010) 2020, 3 March 2010. 24 Regulation (EC) N° 715/2007 of the European Parliament 7 World Business Council for Sustainability, Sustainability and of the Council of 20 June 2007 on type approval of motor Through the Market: seven keys to success, 1 April 2001; vehicles with respect to emissions from light passenger and www.wbcsd.org commercial vehicles (Euro 5 and Euro 6) and on access to 8 ECHA Guidance on Information Requirements and Chemical vehicle repair and maintenance information, OJ L 171, Safety Assessment, updated in March 2010, http:// 29 June 2007. guidance.echa.europa.eu/docs/guidance_document/ 25 ISO 14040:2006 – Environmental management – Life cycle information_requirements_en assessment; www.iso.org 9 ISO 14000/14001 – Environmental management systems- 26 Directive 2008/98/EC of the European Parliament and Requirements with guidance for use, http://www.iso14000- of the Council of 19 November 2008 on waste, OJ L 312, iso14001-environmental-management.com/ 22 November 2008. 10 Andy Westwood, The Work , and CTPA, the UK 27 Commission Staff Working Document, Guidance on the Cosmetics, Toiletries and Perfumery Association: Me, Myself implementation / application of Directive 2005/29/EC and Work, Self-esteem in the UK Labour Market, October on Unfair Commercial Practices, SEC (2009) final, 2004; www.ctpa.org.uk. 4 December 2009. 11 European Eco-Management and Audit Scheme, 28 Directive 2006/114/EC of the European Parliament and of http://ec.europa.eu/environment/emas/index_en.htm the Council of 12 December 2006 concerning misleading and 12 Life cycle assessment (LCA): guidance for packaging chain comparative advertising, OJ L 376, 27 December 2006. companies, EUROPEN, September 2001, www.europen.be 29 UNEP, SETAC, CIRAIG, FAQDD and the Belgian Federal Public 13 International Reference Life Cycle Data System (ILCD) Planning Service Sustainable Development: Guidelines for Handbook; http://lct.jrc.ec.europa.eu/publications social life cycle assessment of products, 2009, www.unep.org 14 Council Directive 76/768/EEC of 27 July 1976, OJ L262, 27 September 1976 and its amendments and adaptations to technical progress.

30 Cosmetics Europe GOOD SUSTAINABILITY PRACTICE FOR THE COSMETICS INDUSTRY Cosmetics Europe’S STRATEGIC PROJECT TEAM ‘SUSTAINABLE DEVELOPMENT’

Current members (2012)

C.F. Gaudefroy Unilever N. Hotham Procter & Gamble Chairman H. Katsukura Kanebo - Kao Group W. Schuh Henkel Vice-Chairman J. Kaumanns Procter & Gamble

C. Astugueville Johnson & Johnson M. Kuhn Beiersdorf

N. Cachin LVMH H. Kuwahara Kanebo - Kao Group

J.F. Campion L’Oréal G. Maranes Johnson & Johnson

P. Crawford CTPA J. Mélédié FEBEA

J. Cucala Procter & Gamble F. Stickel Chanel

J. de Graaf NCV F. van Tiggelen DETIC

Y. Endo-Malamant F. Warzee DETIC

M. Friend Colgate Palmolive M. Coroama Cosmetics Europe

Former members 2010 who contributed to the writing of the guidelines (2010)

D. Duncan Unilever M. Ota Kanebo Kao Group Chairman F. Quinn L’Oréal B. Gannon Johnson & Johnson Vice-Chairman H. Rebollo FEBEA D. Alert Beiersdorf B. Stroemer IKW R. Bartolo Procter & Gamble M. Suka Kanebo Kao Group M. Julemont Colgate - Palmolive

K. Kaskeala Unilever G. Waby Estée Lauder Design by www.karakas.be

Cosmetics Europe is the European trade association representing the interests of the cosmetics, toiletry and perfumery industry.

Cosmetics Europe ­­– the personal care association Avenue Herrmann-Debroux 40, 1160 Brussels T. +32 2 227 66 10, F. +32 2 227 66 27 www.cosmeticseurope.eu Responsible Editor: E. Tuddenham, Cosmetics Europe, Avenue Hermann-Debroux 40, B-1160 Brussels Hermann-Debroux Avenue Cosmetics Europe, Responsible Editor: E. Tuddenham, Published 2012