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YEAR IN REVIEW 2018 PRODUCTS COUNCIL YEAR IN REVIEW 2018

TABLE OF CONTENTS A MESSAGE FROM THE PRESIDENT & CEO 1 2 3 4 For the Personal Care Products Council (PCPC), 2018 These efforts are a prelude to what will be a very MESSAGE ASSOCIATION MESSAGE MODERNIZING FROM AT A GLANCE FROM GOVERNMENT was a year of significant achievement. It was a year exciting 2019 as we prepare to celebrate PCPC's 125th PRESIDENT BOARD CHAIR POLICIES that saw vigorous debate in the public policy arena anniversary. Our contributes to the nations' & CEO as our industry worked with leading policymakers health and well-being and plays a critical role in the and advocacy groups to modernize state and federal U.S. economy. We support millions of domestic jobs, laws while working to ensure a fair and realistic invest billions in research and development to drive business environment for and personal , and generate taxes to support services care companies. and programs in the communities in which our companies operate. PCPC member companies manufacture, distribute 7 8 11 and supply the vast majority of products marketed in Looking ahead, our industry remains steadfast in its ABOUT THE PROMOTING DRIVING the U.S. Product safety, grounded in the best science commitment to a healthy future, one that continues to PERSONAL SOUND SCIENCE GLOBAL ACCESS CARE PRODUCTS available, remained a top priority for our industry be grounded in the best science available while also INDUSTRY in 2018. addressing sustainability priorities in all aspects of our businesses. Together, with the millions of families who To drive global access for our members’ products, depend on our products, we look forward to a shared PCPC worked to align domestic and international future that helps to create a more beautiful world in regulatory practices and eliminate trade barriers for all its forms. cosmetics and personal care products sold worldwide. Thank you to our member companies, sister associa- Understanding that consumers, policymakers, regula- tions, policymakers, regulators, NGOs, seasoned staff 12 14 16 17 tors, the news media and others want easily accessible and other important stakeholders who share in our MAINTAINING LOOK GOOD LOOKING FORWARD: BOARD OF information, we revamped our association website, commitment to provide consumers with access to CONSUMER FEEL BETTER CELEBRATING DIRECTORS continued updating our science and safety resource— safe products and exciting . CONFIDENCE 125 YEARS & SENIOR Cosmeticsinfo.org — and leveraged traditional and CREATING A LEADERSHIP social media to effectively communicate our industry’s MORE BEAUTIFUL WORLD commitment to safety, quality and innovation.

LEZLEE WESTINE PRESIDENT & CEO PERSONAL CARE PRODUCTS COUNCIL

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ASSOCIATION AT A GLANCE “WHEREVER YOU GO, IT IS Since 1894, the Personal Care EASY TO SEE THE IMPACT Products Council (PCPC) has served as the leading national trade association representing the PERSONAL CARE PRODUCTS most trusted and beloved brands in beauty and personal care. HAVE IN ENRICHING THE Headquartered in Washington, LIVES OF CONSUMERS. D.C., PCPC advocates on behalf of its 600 member companies to promote an effective and OUR COMPANIES STRIVE pragmatic regulatory environment that enables companies to TO EXCEED THE NEEDS OF manufacture, distribute and supply safe products to families GLOBAL CONSUMERS AND around the world who trust and enjoy them every day. Sound HELP THEM FEEL CONFIDENT science is the foundation for everything we do. IN THE SAFETY OF THE We engage with a variety of stakeholders—policymakers, PRODUCTS THEY USE.” regulators, nongovernmental organizations (NGOs), partners and the news media— GEORGE CALVERT to share the industry’s perspective CHAIR OF THE BOARD, PERSONAL CARE PRODUCTS COUNCIL and educate about the complexity AMWAY CHIEF SUPPLY CHAIN OFFICER and scientific sophistication behind our products and the importance of harmonizing global regulation of our industry. As we celebrate our 125th anniversary in 2019, we stand united and resolute in our commitment to safety, quality and innovation.

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MODERNIZING GOVERNMENT POLICIES SUNUCATE PROGRAM

PCPC represents the industry at FEDERAL PROTECTED JOBS VOC RULES: CALIFORNIA the federal, state and local levels on COSMETICS ANIMAL TESTING FRAGRANCE PROFESSIONAL PCPC partners with the American Academy REFORM LAW EXEMPTION PRODUCTS issues of interest to the cosmetics PCPC prevented more of Dermatology (AAD) and the American LABELING BILL and personal care sector. than 300 pieces of Society for Dermatologic Surgery Association Negotiations with the PCPC worked with PCPC successfully legislation in more than (ASDSA) on the SUNucate program, in Senate HELP Committee a broad coalition to advocated for the Ozone PCPC supported Major federal priorities we continue 30 states that would have collaboration with the National Council on and other key legislators build an integrated, Transport Commission California Assembly Bill to champion include Congressional negatively impacted Skin Cancer Prevention. This public health to develop a meaningful multifaceted strategy to amend its 2775, which ensures funding for the U.S. Food & Drug the industry—including initiative spreads awareness about the approach to cosmetics to reach a compromise VOC Rule to include an ingredient information Administration’s (FDA) Office more than 50 in importance of sun-protective behaviors reform continued. on SB 1249, the exemption for personal for professional use of Cosmetics and Colors and alone—and jeopardized and removes barriers that prohibit access to As part of our ongoing California Cruelty-Free fragrance products. This cosmetics is readily modernizing FDA's regulatory thousands of industry important sun-protective measures, such as commitment toward Cosmetics Act, which, change helped ensure available to every salon authority over cosmetics and jobs nationwide. sunscreen and sun-protective clothing. modernization, PCPC beginning January 1, our members’ products employee and customer personal care products. and its member 2020, bans unnecessary OVER-THE- remain compliant with after July 1, 2020. The initiative’s centerpiece is the SUNucate companies supported animal testing while COUNTER (OTC) VOC restrictions and This bill is consistent model legislation, aimed at guaranteeing We advocated for cosmetics MONOGRAPH a set of principles continuing to protect align VOC regulations with our industry’s long- children have unbarred access to sun regulatory reform legislation, REFORM to guide bipartisan human health and in a dozen northeastern standing commitment to which went before the U.S. Senate protection while at school or camp. Also legislative action. California jobs. states in the U.S. transparency and safety, Health, , Labor and We supported titled as the Reducing Cancer and Excessive We look forward to demonstrated by our UV Exposure in Children Act, the model Pensions (HELP) Committee. GREEN over-the-counter (OTC) continuing to work with voluntary program to legislation allows students and participants We continue to collaborate with CHEMISTRY drug monograph reform legislators and other proactively provide this a diverse group of interested legislation that would in youth camps to possess and use a stakeholders to create information. topical sunscreen product while on school parties and key stakeholders on In keeping with our streamline the OTC a more modernized or camp property or at an event or activity this important legislation. commitment to safety, approval process while regulatory system. sponsored by the school or camp without PCPC successfully allowing companies a physician’s note or prescription. State and local governments protected consumer to continue to innovate. increasingly make policy decisions choice by ensuring no This initiative is in response to reports of that have a global impact, affecting personal care products schools prohibiting students from possessing a wide range of industries, including were listed in 2018 as sunscreen due to its classification as an the personal care and cosmetics a “priority product” over-the-counter . To date, sectors. Legislation ranges from under California’s Safer 17 states have passed SUNucate-related product and ingredient bans to Consumer Products Law. intellectual property threats. PCPC measures, with several other states pending

advocates, through strategic action; 49 medical associations, patient partnerships, for policies based organizations and industry partners have on sound science. also signed on in support of these efforts.

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SENATOR RICARDO LARA, MANDY LEE AND MIKE THOMPSON, CALIFORNIA LOBBY DAY EXECUTIVE FLY-IN LEZLEE WESTINE, LINDA MARSHALL AND MARK POLLACK, ANNUAL MEETING ABOUT THE ALEX KOWCZ, PERSONAL CHIEF SCIENTIST, LEZLEE WESTINE ADDRESSES CARE AND SENIOR TEAM, SACRAMENTO WASHINGTON REPORT, POLICY MAKERS PRODUCTS ANNUAL MEETING INDUSTRY

PCPC is the leading national trade association representing cosmetics and personal care products companies and serving as the voice on scientific, legal, regulatory, legislative and international issues for the global industry.

PCPC’s 600 member companies represent more than 90 percent of the U.S. industry and are some of the most beloved and trusted brands in beauty and personal care today. As global leaders FRANCINE LAMORIELLO, committed to product safety, CAFFCI CHAIRMAN SHAOJUN quality and innovation, cosmetics CHEN AND ANNIE WAN, ANNUAL MEETING companies manufacture, distribute and supply the vast majority of products marketed in the U.S.

Four strategic priorities guide the association’s work on behalf of its members:

GEORGE CALVERT, • Modernizing government BOARD CHAIR policies • Promoting sound science THIA BREEN, GEORGE CALVERT, • Driving global access ALEX KEITH AND LISA POWERS, • Maintaining consumer BEAUTY EDITORS BRIEFING, ANNUAL MEETING confidence

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PROMOTING SOUND SCIENCE COSMETIC INGREDIENT REVIEW EXPERT PCPC provides critical support GLOBAL NEW GMP WORKSHOP NEW METHODS to the industry through a number ENVIRONMENTAL GUIDELINES IN SAFETY PANEL SAFETY ASSESSMENT of efforts and resources that PCPC conducted a

support cosmetics and personal PCPC Science Good PCPC launched a PCPC science staff, care products safety and build Committees completed Practices (GMP) work- The Cosmetic Ingredient Review (CIR) In 2018, the CIR Expert Panel issued 17 final multipronged global FDA officials and other consumer confidence in our two new Guidelines: shop in , Expert Panel is an independent, nonprofit reports on 278 ingredients, concluding 68 environmental initiative cosmetics regulators met companies’ products. Investigating Microbial co-facilitated by scientific body that was established in 1976 were safe as used, 180 ingredients were examining the to advance acceptance Data Deviations and industry leaders, FDA's to assess the safety of cosmetics ingredients safe with qualifications and 30 ingredients environmental risk of non-animal methods Process Verification, Director of the Office of used in the U.S. PCPC initiated the CIR had insufficient data to determine safety. assessment of cosmetics to assess cosmetics which support Pharmaceutical Quality program at the suggestion and with the Since its inception in 1976, CIR has reviewed ingredients. Beginning safety. Working within the the industry’s goal Operations and several support of the Food and Drug Administration 5,556 ingredients for safety. with the development of International Cooperation for excellence in compliance officers. (FDA) and Consumer Federation of America a computational model on Cosmetics Regulations manufacturing. The workshop provided (CFA). The Expert Panel is comprised of for risk screening, the (ICCR) framework, educational outreach world-renowned scientists and physicians Global Environmental FDA QUALITY the meeting resulted and promoted PCPC’s who have been publicly nominated by Safety Science Project METRICS in the 2018 publication REPORTING partnership on science consumer, scientific and medical groups; Team also funded of principles under- and regulatory issues. government agencies; and industry. research examining the pinning the use of new PCPC, the Consumer potential effects of UV VOLUNTARY methodologies in risk Health Products Representatives from FDA, CFA and PCPC filters on the environment FRAGRANCE assessment. These Association (CHPA) and serve as non-voting liaisons to the Panel and prepared a review ALLERGEN principles have been FDA conducted a joint DISCLOSURE and are actively involved in the comment paper concluding the subject of several webinar about FDA’s and discussion process. Panel members microplastics do not workshops advancing Quality Metrics initiative, PCPC developed must meet the same conflict of interest pose an unacceptable their adoption by providing an important and submitted to FDA requirements regarding financial interests as environmental risk. international regulatory update on the status of a commitment to special non-government advisory experts authorities. FDA’s metrics reporting voluntarily disclose to FDA. program, which impacts allergens, which is OTC products manufac- aligned with the industry’s For more than 40 years, CIR has examined turers. The recent FDA global principles and and evaluated worldwide published and initiative provides an provides consumers unpublished scientific safety data for a opportunity to educate with accurate, credible majority of ingredients used in cosmetics FDA about challenges and reliable information. and personal care products. Meeting four and opportunities times a year in Washington, D.C., the Panel companies face conducts those evaluations in an open and implementing quality expert manner. metrics reporting.

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INTERNATIONAL ASSOCIATION COLLABORATION, ANNUAL MEETING

DRIVING GLOBAL ACCESS

PCPC’s Global Strategies program US-MEXICO- CHINA TARIFFS cosmetics products focuses on harmonizing interna- AGREEMENT and inputs, and testified (USMCA) tional cosmetics regulations and Following several years PCPC mounted a strong at a public hearing to eliminating trade barriers that of industry advocacy, advocacy campaign to highlight the importance PCPC’s advocacy hinder our industry’s access to the Chinese government oppose the use of tariffs of U.S.-China trade to resulted in a highly consumers abroad. Working with made significant as a means of addressing our industry. successful Cosmetics international sister associations progress in finalizing its international trade Annex in the update and regulators globally, PCPC cosmetics regulatory concerns. In response to We expect that advocating to NAFTA. Commitments promotes best practices in reform framework. The the U.S. administration’s free trade and open by all three governments cosmetics regulations and assists most recent draft of the announcement in May of markets will continue to go further than what member companies entering law confirmed PCPC’s increased tariffs on steel be a priority for PCPC was achieved in the foreign markets. The Global objectives for a more and aluminum products, in 2019 and beyond. Trans-Pacific Partnership Strategies team manages a modern approach to PCPC met with U.S. (TPP) and will result in number of programs to engage cosmetics regulation that policymakers in the immediate, significant international regulators and assist will simplify notification executive branch and commercial benefit for our members in complying with and registration require- Congress; coordinated U.S. exports of OTC-like international laws. ments, facilitate the use action with sister products to Canada. of new ingredients, and associations in , In particular, Canada address discriminatory Canada and elsewhere committed to eliminate requirements for imported to oppose retaliatory current requirements non-special use products. tariffs on U.S. cosmetics for quarantine and It is expected the frame- and personal care retesting of OTC products work law will be finalized products; and joined at the border – the most and ratified by China’s a broad business significant barrier to State Council early in coalition effort aimed trade for U.S. exporters. 2019. We will continue at overturning the tariff This requirement adds advocacy to improve measures. PCPC also approximately $100,000 several specific areas of strongly opposed per SKU per year to the the draft law and engage separate U.S. measures cost of placing affected with Chinese regulators that increased tariffs on products on the Canadian on critical implementing imports from China. In market. Eliminating this regulations that will be August, PCPC submitted barrier would result in an necessary to realizing formal comments to the approximate savings of the benefits of the reform. U.S. Trade Representative more than $102 million highlighting the negative annually. impact of proposed U.S. measures on trade in

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PERSONAL CARE PRODUCTS COUNCIL'S NEW WEBSITE

MAINTAINING CONSUMER CONFIDENCE

PCPC remains a trusted, respected WEBSITE TRADITIONAL More than 1.5 million INTEGRATED voice and advocate for the personal REDESIGN MEDIA AND DIGITAL sessions were generated CAMPAIGNS FOOTPRINT care products industry. Staff informs, by 1.1 million users PCPC combined internal engages and acts as a credible More and more, on our science and We continued to engage resources – including source of information for key consumers look for safety resource— on social media to Communications & stakeholders including consumers, reliable information about Cosmeticsinfo.org. promote the industry’s Public Affairs, State regulators, policy makers, media the products they use. This comprehensive scientific rigor and Government Affairs, and non-governmental organiza- Our newly redesigned database provides commitment to product Legal, Science and tions (NGOs). In 2018, we made website provides easily information on cosmetics safety and help educate Global Strategies – important strides educating accessible, accurate and personal care about our member to develop, drive and about the industry’s commitment and credible information products – how they companies' Corporate execute integrated to safe and innovative products about the industry’s work, data to corroborate Social Responsibility (CSR) strategies to support and PCPC’s contributions to our innovation and scientific safety and science and philanthropic efforts. legislative efforts. These nation’s economic and social sophistication, featuring behind commonly used campaigns included well-being. a modern design and ingredients. Developed We responded to complex extensive coalition improved user experience. and maintained by media inquiries on building, message and The new site officially scientists and subject- a variety of topics, materials development, launched in January 2019. matter experts, engaging with national and earned and paid CosmeticsInfo.org is a and international media media strategies. trusted resource visited outlets to inform coverage by millions of women, about our products and men and families around our industry. The result the world each year. reflected industry's perspective and positioned PCPC as a credible source and resource. Most notable is a comprehensive article in USA Today addressing product and ingredient safety and giving significant opportunity for PCPC and CIR experts to provide comment.

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LOOK GOOD FEEL BETTER FOUNDATON

As part of the industry's philanthropic efforts, PCPC established THE LOOK GOOD accessibility and broaden BENEFIT'S BOLD the Look Good Feel Better Foundation (the Foundation) in 1989, FEEL BETTER reach beyond hospitals IS BEAUTIFUL ALLIANCE which pioneered the Look Good Feel Better (LGFB) program. and cancer centers.

This groundbreaking public service initiative improves the In May, the Foundation Introduced in October quality of life, self-esteem and confidence of people with WALGREENS partnered once again to provide the framework PARTNERSHIP cancer by helping them manage the appearance-related side with for the program’s new effects of cancer treatment. LGFB has served 1 million women and their Bold Is Beautiful delivery structure and The Foundation in the alone since its founding. In addition to campaign. The month- broadened delivery collaborated with providing financial support, the cosmetics industry donates long campaign donates channels, the Alliance Walgreens and the millions of dollars in products used by participants in the the proceeds of brow is a nationwide network Cancer Support program each year. services at Benefit of diverse organizations Community to pilot and boutiques and their and individuals united launch Walgreens’ Feel The program is offered in collaboration with the Professional retail partner locations through a common More Like You initiative, Beauty Association. In addition to the U.S. LGFB program, the (, Sephora mission to support which offers support Foundation oversees a global network of 26 licensed affiliates inside JCPenney, ULTA women in cancer to cancer patients who that deliver LGFB programs in countries across the globe. and Macy's) across the treatment through the visit their Collectively, the 27-country network has served 2 million country to six charitable delivery of the LGFB during treatment, based people living with cancer on six continents. partners, including LGFB. program. The Alliance on proprietary content creates an enhanced developed by the LORD & TAYLOR relationship with hospital Foundation. CHARITY DAY delivery partners at the community level. LGFB LIVE! For the third year, LGFB VIRTUAL WORKSHOP was selected as the A modern and efficient PILOT charitable recipient of software infrastructure Lord & Taylor’s January is being developed to The Foundation piloted all-store Charity Day. support many of the Look Good Feel Better This shopping event program’s previously Live! Virtual Workshops, raised significant funds manual processes and which provide valuable for LGFB and educated moves all volunteer and LGFB information to sales associates in all delivery partner training women who may have Lord & Taylor stores online for on-demand difficulty getting to a about the program’s group workshop, don’t access, allowing for charitable work. LORD & TAYLOR automation of many have one close by or CHARITY DAY program processes. prefer to have more The Alliance structure scheduling flexibility. also includes expanding delivery to improve 14 15 YEAR IN REVIEW 2018 PERSONAL CARE PRODUCTS COUNCIL

BOARD OF DIRECTORS & SENIOR LEADERSHIP LOOKING FORWARD CELEBRATING 125 YEARS CREATING BOARD OF DIRECTORS EX OFFICIO DIRECTORS A MORE BEAUTIFUL WORLD

ALVARO ALONSO CHRIS GOOD BART PRINS SEAN BRODERICK BEIERSDORF N.A. THE ESTÉE LAUDER COMPANIES CHURCH & DWIGHT CO, INC. PROCTER & GAMBLE

JOHN HUMPHREYS The Personal Care Products Council will honor the past and celebrate SCOTT BEATTIE DAVID GREENBERG CHRIS SAYNER L'ORÉAL USA CRODA, INC. PROCTER & GAMBLE our future as we recognize our 125th anniversary in 2019. Our industry JACK LINARD was built by entrepreneurs with very different backgrounds, skills, means SHAWN BLYTHE JOHN HAZLIN GEORGE SCHAEFFER INTERNATIONAL FLAVORS & COLGATE-PALMOLIVE COMPANY ALOXXI INTERNAIONAL and countries of origin. They included icons like , a FRAGRANCES INC. CORPORATION nurse whose red became a trademark of the women’s suffrage DAVID HOLL LAUREN PAIGE DANYELLE BOILARD-PAUL INC. JEFF SMITH L’ORÉAL USA movement, and Estée Lauder, who started her own company after learning GROUP USA, INC. JOHNSON & JOHNSON CONSUMER PRODUCTS to make beauty products from her chemist uncle. Annie Turnbo Malone, JANE IREDALE ANTHONY SANTINI COMBE INCORPORATED an orphan, and Madam C.J. Walker, a child of slaves, both built successful ESI EGGLESTON BRACEY IREDALE MINERAL UNILEVER N.A. COSMETICS LTD. ANDREW STANLEICK beauty companies making products for African-American women and COTY INC. went on to become America’s first female, self-made millionaires. Mary GEORGE CALVERT PAUL IRELAND (BOARD CHAIR) TAKASAGO INTERNATIONAL JAMES MILLER THORNTON Kay Ash started her company to create a more beautiful life for women AMWAY CORPORATION (USA) BAYER CONSUMER HEALTH SENIOR LEADERSHIP

and provide them the opportunity for personal and financial success. MARIA CHICLANA INGRID JACKEL RICHARD TOLIN LEZLEE WESTINE As an industry created by women for women, our member companies AMERICAS CORP. YES TO, INC. LUBRIZOL PERSONAL CARE PRESIDENT & CEO continue to empower and promote female leadership, including efforts KEECH COMBE SHETTY ALEX KEITH HERVE TOUTAIN KRISTEN BOGENRIEF to ensure a more inclusive workplace. COMBE INCORPORATED PROCTER & GAMBLE L'ORÉAL EVP, FINANCE & ADMINISTRATION

ANDREA D’AVACK LINDA R. MARSHALL JERRY VITTORIA During the next 125 years and well beyond, our industry will remain JOHN HURSON CHANEL, INC. ELYSÉE SCIENTIFIC COSMETICS FIRMENICH INTERNATIONAL SA steadfast in its commitment to a healthy future, one that is grounded in EVP, GOVERNMENT AFFAIRS TERRY DARLAND FELIX MAYR-HARTING HEATHER B. WALLACE the best science available and addresses sustainability priorities in all ALEXANDRA KOWCZ PARFUMS CHRISTIAN DIOR GIVAUDAN FRAGRANCES CONSUMER GOODS, INC. EVP, SCIENCE & CHIEF SCIENTIST aspects of our businesses. Consumer demand for trust, transparency, CORPORATION ROBERT J. EDMONDS JOSEPH WORKMAN authenticity and generosity has never been greater. Over the next year, FRANCINE LAMORIELLO KOLMAR LABORATORIES, INC. ADEL MEKHAIL KAO USA, INC. EVP, GLOBAL STRATEGIES PCPC will embark on a sustainability initiative that engages key stakeholders EDGEWELL PERSONAL CARE, LLC and reaffirms our commitment to making our communities better. LYNN EMMOLO TOM MYERS RODAN + FIELDS JACK NETHERCUTT EVP, GENERAL COUNSEL COSMETICS Together, with the millions of consumers worldwide who trust and depend MICHELLE FREYRE MARK POLLAK JOHNSON & JOHNSON CONSUMER GREGORY POLCER on our products every day, we look forward to a shared future grounded in SR. EVP & CHIEF OPERATING OFFICER PRODUCTS THE ESTÉE LAUDER COMPANIES safety, quality and innovation. LISA POWERS CHARLES-FRANCOIS EVP, PUBLIC AFFAIRS & GAUDEFROY COMMUNICATIONS UNILEVER

LOUANNE ROARK EXECUTIVE DIRECTOR, LOOK GOOD FEEL BETTER FOUNDATION

*AS OF 12/31/18

16 1620 L STREET, NW, SUITE 1200 PERSONALCARECOUNCIL.ORG WASHINGTON, D.C. 20036 COSMETICSINFO.ORG T 202.331.1770 F 202.331.1969