SUSTAINABILITY
Navigating EU cosmetics sustainability legislation
Milena Stamova, Lisette Townsend – AAK Personal Care
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Over the last decade, the cosmetics industry has undergone a significant transformation in terms of sustainability, primarily driven by increased consumer awareness and demand for more natural products with eco-ethical credentials. The introduction of more demanding sustainability regulations will accelerate this trajectory and affect all industry players to a greater or lesser extent. The European Green Deal aims for a
transformation to a carbon-neutral, resource- efficient and just economy.1
It offers suppliers,
manufacturers, and beauty brands opportunities for innovation, differentiation, and growth by mandating sustainable practices and accelerating the development of environmentally friendly ingredients and products. Measures will not only empower the end
consumer to choose products that align with their sustainability values but also impact the smallholder farmers and collectives at the beginning of the supply chain and everyone in between. However, this landmark initiative and the impending wave of new legislation in the European Union pose significant challenges to businesses across the EU as they navigate incoming directives and regulations. It will significantly impact the cosmetics industry and have a ripple effect throughout the entire value chain.
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The background for the new sustainability legislation Before considering how the different stakeholders can manage and benefit from the raft of new regulations, it is worth taking a step back to look at the historical context. The 2000 United Nations Global Compact was a significant milestone in the sustainability movement.2 This initiative, which remains the largest
corporate sustainability effort to date, encouraged businesses and organizations to adopt sustainable and socially responsible policies and report on their implementation, thereby laying the groundwork for the new sustainability developments in legislation. Introduced in 2015, the seventeen
interconnected Sustainable Development Goals (SDGs) address humanity's most pressing issues, including climate change, poverty, inequality, and biodiversity loss.3 They provide a comprehensive framework for advancing economic, social, and environmental sustainability. Although companies are not legally
obligated to adopt the SDGs, United Nations Global Compact members are actively encouraged to align their strategies, operations, and reporting with the goals. Many companies, including AAK, have voluntarily integrated them
ABSTRACT
The beauty and personal care sector is undergoing a significant shift, driven by tightening legislation to increase transparency around sustainability reporting and address the most critical environmental and social issues, such as carbon emissions, pollution, resource use, human rights, and forced labor within global supply chains. While the legislation aims to transform the EU into a sustainable, carbon-neutral, and just economy and offers opportunities for innovation and growth, it also presents challenges. Cosmetic companies face increasing pressure to move to more sustainable practices, and while new regulation is undoubtedly needed, ensuring compliance requires significant money, time, and effort from suppliers and manufacturers.
into their business models. The Paris Agreement signed in the same
year, further reinforced these goals by aiming “to limit the increase in global average temperatures to below two degrees Celsius above pre-industrial levels”.4
signed by 196 parties, represents a binding October 2024 PERSONAL CARE This agreement,
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