60 SUSTAINABILITY
commitment for its signatories to submit climate action plans outlining their targets and actions to reduce greenhouse gas emissions (GHG) and adapt to the impacts of climate change. The Science Based Targets initiative (SBTi) is
a voluntary initiative led by several international organizations, including the UN Global Compact, to provide a practical tool and guidance for companies to set targets for reducing their greenhouse gas (GHG) emissions that are consistent with the goals of the Paris Agreement.5 AAK has secured approval from the SBTi for
its ambitious GHG reduction targets, covering both sourcing practices and operational activities. We are one of the first companies to receive approval for our Forest, Land, and Agriculture (FLAG) targets, which commit us to a 33.3% reduction in GHG emissions by 2030, compared to our 2019 baseline. The FLAG sector, which accounts for almost
25% of global GHG emissions, is the second- largest emitting sector after energy and is also highly vulnerable to climate change effects, as the greatest percentage of emissions occur during the initial production stage when growing the crops. The 2019 EU Green Deal builds on earlier
foundations and aims to align EU policies and investments with the objectives of the Paris Agreement. It provides a long-term road map for Europe to become the first carbon-neutral continent by 2050 and includes actions on biodiversity preservation, economic growth decoupled from resource use, and enhancing a circular economy. Its many policies are supported by the Just Transition Mechanism6 Finance Strategy7
and the Sustainable and are implemented
through EU legislation. While some measures have already been initiated, achieving the full objectives is expected to take many years and is still evolving. It is crucial to understand that the European
Green Deal has global implications. Companies operating within the EU or exporting cosmetics to the EU must comply with the legislation, including those related to product safety, ingredient restrictions, and environmental standards.
An overview of the most essential new pieces of legislation EU Deforestation Regulation (EUDR) The EUDR comes into effect on December
30, 2024. Deforestation is known to be a major contributor to greenhouse gas emissions, so this regulation is an integral part of the EU strategy to achieve climate neutrality by 2050. The objective is to prevent deforestation linked to agricultural commodities by requiring importers to perform due diligence and submit evidence that the products brought to the EU market are deforestation-free and are legally produced. AAK has long been committed to establishing 100% deforestation-free and conversion-free supply chains, and we are on track to achieve this by 2025. Cocoa, palm, and soy are commodities that
fall under the EUDR and are widely used in the cosmetics industry. All businesses importing or using these ingredients in their products
PERSONAL CARE October 2024
Figure 1: AAK has implemented a climate performance platform to collect verified farmer-level emissions data from the Swedish cooperatives we use for our canola (rapeseed) sourcing. The platform enables us to calculate emissions for the canola we source and simultaneously build GHG reduction initiatives with our suppliers, including setting key performance indicators for tracking regenerative agricultural practices, such as buffer strips, soil organic carbon, and crop rotation. This integrated approach is expected to result in an increase in yields, which reduces the CO2 per metric ton of canola seeds.
must ensure that their supply chains are not contributing to deforestation and that raw materials are traceable back to their origin. For ingredient suppliers who are first importers, that means establishing traceability of the supply chain down to farm level and providing geolocation data in the form of GeoJson polygon mapping for products entering the EU. By linking polygons from individual farms or
plantations to the products sold, entire supply chains can be mapped and visualized, showing the journey of raw materials from source to final product. This creates a more transparent, traceable, and verifiable system ensuring deforestation-free supply chains. However, although the EUDR's focus on
legality and due diligence aims to protect smallholder rights, it is difficult for smallholders to comply without technical assistance and financial support. These challenges need further consideration within the framework. Otherwise, it results in a two-tier market for compliant and non-compliant players and misses the fundamental principle of improvement, the opportunity to transform for impact.
Corporate Sustainability Reporting Directive (CSRD) The CSRD is another crucial initiative that elevates sustainability reporting to a new
level by significantly expanding the scope of companies required to report on sustainability topics. The directive sets specific criteria based on company size, market presence, and financial indicators, and the number of companies affected is expected to rise substantially, increasing from around 12,000 to more than 50,000 across Europe by 2026. A cornerstone of the CSRD is the
requirement for a double materiality assessment, which helps companies identify the material topics they must report on under this directive. The double materiality assessment requires companies to evaluate not only their impact on the environment, society and economy but also how the environment, society and economy could financially affect their business, i.e. their environmental, social & governance (ESG) related material impacts, risks and opportunities. The directive comes with 85 disclosure
requirements and 1,100 data points, and companies must report on topics that come as material for their business and integrate the sustainability report into the annual report. Additionally, the report must include digital tagging and undergo audit assurance, elevating sustainability reporting to the same level of importance as financial reporting. The implementation timeline for CSRD
www.personalcaremagazine.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108
