Progress not perfection. It’s a journey, not a destination. These phrases perfectly describe sustainability and ethical sourcing. In 2022, brands of all sizes are making greater commitments to Corporate Social Responsibility (CSR) and Environmental, Social and Corporate Governance (ESG). Thousands of brands are vowing to be more sustainable and responsible when it comes to the impact of their products on people and the planet. If brands want to win over consumers buying their products now and for years to come, CSR and ESG must be part of their strategy.

From Millennials through to Gen Z, consumers want products that are sustainable and brands that operate fairly when it comes to Mother Earth. In Piper Sandler’s recent Taking Stock with Teens survey for fall 2022, the environment was respondents’ No. 1 social cause, ahead of controversial issues like abortion, racial equality and gun control. According to NielsenIQ reporting, consumers are shifting their focus to embrace clean and green and brands that do their part to protect the environment through sustainable efforts. The most progressive consumers are taking things further, demanding companies be ethically minded as well—and will look toward ethical treatment of workers and fair wages, too.

Earlier this year, Fair Trade USA released a consumer insights report, Taking Action: Now is the Time For Conscious Consumerism and Fair Trade, which the non-profit says highlights data showing a continuing shift in preference and motivation among consumers that promises “continued rewards for brands and companies who are committed to making a difference in communities around the world.” According to the report, 76% of Millennials recognize the Fair Trade Certified label and 83% of Millennials indicated increased trustworthiness of the Fair Trade Certified label.

What’s more, 50% of Gen Z will pay a premium for Fair Trade Certified products.

“This research tells us that people are intentionally gravitating toward products that make a positive impact, and that Fair Trade Certified goods allow them to meet that demand more than ever,” said Paul Rice, founder and CEO of Fair Trade USA. “The data clearly show that this surge in conscious consumerism is being led by younger generations. They care about their future, the environment and the people behind the products they buy.”

Table Stakes

“Concerns surrounding the environment and climate change are growing, and having sustainable practices in place is no longer a ‘nice to have,’ but an expectation. In fact, three in four adults who use beauty products agree that keeping the planet safe is just as important as keeping people safe,” Lauren Goodsitt, associate director of beauty and personal care at Mintel, told Happi.

According to Mintel, as consumers across the globe begin to feel the impacts of climate change, they will look for companies to provide them with climate-friendly options.

But Goodsitt issued a warning: overuse of vague terms and intangible goals have impacted consumer trust, with 63% of Americans agreeing with the statement, “I don’t always believe mainstream brands that say they are sustainable or eco-friendly.”

“As a result, consumers want to see brands commit to the environment in a way that is both tangible and measurable,” she said.

According to Goodsitt, by sharing details of environmental progress/sustainability initiatives, brands “open doors to engage in conversations with consumers. Offering more transparency surrounding goals enables brands to build deeper connections with consumers by allowing room for nuance and accountability.”

For companies like Dr. Bronner’s, the California-based natural soap company, there is no other way of doing business.

“In 2005, Dr. Bronner’s set out to ensure all of our major raw materials were certified to the USDA organic standard and to Fair for Life, the most meaningful fair trade standard. Importantly, our Fair for Life certified (fair trade) supply chains have been designed and audited for fair and safe working conditions at our projects around the world,” said Gero Leson, VP-special operations, Dr. Bronner’s, Vista, CA.

The company co-created the Regenerative Organic Certified (ROC) standard with Rodale Institute and Patagonia, and committed to transition all major raw materials to ROC by the end of 2023.

“We were drawn into regenerative organic practices due to concerns about climate change and on the ground needs at our supplier projects to improve soil health. Regenerative organic represents a holistic approach to farming that focuses on soil health, climate resiliency and economic diversification, objectives critical to the future of smallholder farming on non-irrigated lands,” Leson said.

According to Leson, the three pillars of soil health, fair trade and animal welfare that ROC “looks after are critical to the idea of responsible sourcing.”

“For our ingredients, which are animal product free, ROC builds on and goes beyond organic certification by emphasizing soil health, while requiring farmer and worker welfare as central to its definition of ‘regenerative.’ Dr. Bronner’s supports the transition of our projects to regenerative practices by funding and promoting large-scale compost operations, dynamic agroforestry, capacity building and developing new market opportunities for farmers,” he said.

Leson—who is author of “Honor Thy Label: Dr. Bronner’s Unconventional Journey to a Clean, Green, and Ethical Supply Chain”—also pointed to Dr. Bronner’s projects and partners that are taking the practice of “sustainable and fair” further by initiating, investing in and supporting social initiatives such as plastic collection and recycling in Ghana, wastewater treatment and recycling in Sri Lanka and more.

“Expanding and deepening our scope beyond farmers and workers ensures we can use business as a force for good for the communities and regions where we work,” he said.

In April, Bronner’s partnered with Ecosia to finance the expansion of dynamic agroforestry in Ghana. Coordinated with on-the-ground support from Serendipalm, the project will convert 200 acres of arable land to a mixed dynamic agroforestry model for product and full-scale demonstration of the concept to farmers and visitors. The land will be used to cultivate cocoa, palm trees and other crops. It will empower the rural community to diversify crops, expand farmer incomes and improve food security while sequestering carbon in soil and trees and mitigating climate change impacts.

From The Beginning

New brands benefit by having sustainability principles built into their operations.

Deepak Dugar is a co-founder of Ameva, a skin biotech company that harnesses the power of cellular biosystems to fuel what they say is “true carbon negative production” of mevalonic acid.

Ameva produces the component through the upcycling of residual biomass, like sawdust, corn stover or woodchips.

“This by-product biomass is produced through various agricultural processes like crop harvesting and lumber production. Normally these byproducts would be burned or sent to landfills to biodegrade over time, both of which release a large amount of GHGs into the atmosphere,” said Dugar.

Ameva transforms the biomass into mevalonic acid through a proprietary process involving precision fermentation.

“Since our technology allows us to take these by-products that would normally be burned or sent to landfill, and upcycle them to create ingredients – it makes this ingredient carbon negative. As an example, the processing of wood for lumber or pulp produces unused sawdust, bark, branches, and leaves/needles. We take these byproducts and perform a processing step to release sugars that are fed to our microbes and a soil amendment that stores carbon and enhances soil performance. Our proprietary microbes use these sugars to produce mevalonic acid via precision fermentation. Once the mevalonic acid is produced, we incorporate it into our formulas and finished goods,” noted Dugar.

This process results in an overall negative carbon impact, according to the brand. For every kilogram of mevalonic acid produced, Ameva says it traps up to three kilograms of CO2.
“Compare this to other active ingredients, like retinol produced from coal/petroleum in China or petroleum in Europe, where for every kilogram of retinol that is produced, there can be up to 40 kilograms of CO2 emitted into the atmosphere,” Dugar said.

Ameva is the exclusive owner of the upcycling technology to produce mevalonic acid for skin care; it owns the full supply chain from production to providing fully formulated products.
Ameva officials said the precision fermentation process is very energy efficient compared to other modes of ingredient extraction and the company strives to use renewable energy at each stage of the process, and it offsets the carbon emission caused by the shipping of finished products to consumers.

“Beauty like any other industry has been strongly and positively impacted by the consumers’ concerns about climate change. In a few years, we went from “clean” to vegan/plant based to responsible packaging to sustainable manufacturing practices. What was the green “raison d’etre” of some brands a few years back is now mainstream and expected by the consumer,” said Dugar. “We believe the next frontier to be biotechnology and upcycling as it can generate high performance and innovative ingredients while using agricultural by-products. Hence, not only limiting the impact on Mother Nature but help restore it.”

Attitude Living, a 10-year old company based in Canada, last month launched Oceanly, a brand which it contends is out define new standards for efficacy and sustainability. Attitude says it is first complete line of solid, 100% plastic-free and entirely EWG-verified skin care. The 19 Oceanly products feature marine-sourced ingredients and are housed in packaging that is biodegradable and made with FSC certified cardboard.

“At Attitude, everything is intentional; we control everything. We select ingredients based on their origin, safety and performance. Our ingredients are made from vegetable or mineral sources. Our ingredients are rated the safest score by the EWG and are selected to have minimal impact on people and the planet health. In our lab, we assess each formula to ensure safety and performance,” said Hans Drouin, PhD, vice president of R&D at Attitude. “Moreover, our factory was built considering three principals: sustainable development, technology and wellness of our employees. We have developed our own process and control every aspect to ensure the highest quality products. Quality ingredients, process, people and sustainable packaging, it is our secret to be innovative in the clean beauty sector.”

Drouin highlighted Oceanly’s star ingredient, phytoglycogen, which is 100% plant-derived and eliminates the need to extract glycogen from shellfish, helping preserve marine ecosystems.
“It is extracted from plants harvested in Canada, from non-GMO corn and in a non-nano form,” he told Happi.

Progress Made

In April, Amika announced that it was Climate Neutral Certified.

“It is part of our ethos to take responsibility for our carbon footprint, so when it came to Climate Neutral Certification it was honestly one of the easiest decisions to make for Amika,” said Jamie Richards, Amika’s CSR and sustainability lead.

According to Richards, Amika had been collecting supply chain impact data throughout the entirety of its operations.

“It was important for Amika to take the extra step and go through Climate Neutral Certification because there is no standard in claiming carbon neutrality. Climate Neutral creates an industry standard of measuring and offsetting scope 1-3 emissions and setting a reduction plan, which is important to us and our consumers.”

Big Names in Beauty

Boldface names in the beauty space—from luxury to DTC to mass—have made new commitments.

In April, YSL Beauty announced a global program called “Rewild Our Earth” in partnership with global NGO Re:wild, reflecting what it says is its broader commitment to making a positive impact on the planet and its people. The program aims to protect and restore 100,000 hectares by 2030––a surface area that is almost 10 times the size of Paris––and to safeguard biodiversity in priority areas affected by climate change where YSL Beauty’s ingredients are sourced.

For 2022, YSL Beauty’s Rewild Our Earth will focus on the following priority areas such as The Ourika Valley in Morocco (where it cultivates a range of ingredients such as pomegranate, marshmallow, iris, jasmine, walnut and saffron); Haiti (vetiver sourcing, which is used in L’Homme, La Nuit de ‘Homme and Opium); Madagascar (vanilla and geranium sourcing, which is used in Black Opium, Libre, Le Vestiaire des Parfums, and Y); and Indonesia (patchouli sourcing, which is found in Mon Paris, Black Opium and Le Vestiaire de Parfums). 

In addition, YSL Beauty plans to reduce its impact by prioritizing bio-based ingredients, too.

ELF Beauty announced that one of its third-party manufacturing facilities is now Fair Trade Certified, a first for the category. The certification extends across products from ELF’s entire portfolio, which includes Well People and Keys Soulcare.

More recently, ELF Beauty released its first Impact Report, detailing its ESG initiatives and accomplishments in fiscal year 2022. Amin said the report underscores how ELF has always been an “inherently purpose-driven company.”

A leader in the clean beauty space, Beautycounter is focused on safety, and that drives the company’s sourcing and NPD, according to Jen Lee, chief impact officer.

“Our mission is to get safer products into the hands of everyone, and safety starts at the source,” Lee said. “At Beautycounter, we are constantly thinking about ways to make our products more effective, sustainable and safe, from sourcing to formula development and beyond. As part of this, we are always evaluating our current supply chain and ingredient sourcing policies to ensure that our industry-leading practices continue to work for the good of the planet and people.”

According to Lee, Beautycounter is dedicated to developing best-in-class responsible sourcing guidelines and policies and has implemented its own responsible sourcing program. It works with credible third-party auditors to continually address high-risk ingredients, she said.

“One way this program comes to life is through our sourcing of mica,” said Lee. “Beautycounter is the first beauty brand to have completed in-person audits of all of our trusted mica suppliers to have transparency in how its sourced to ensure it meets our rigorous safety standards.”

Beautycounter is also a member of the Roundtable on Sustainable Palm Oil (RSPO).

“Our participation in RSPO enables us to have more visibility into the palm oil we are sourcing, as well as third-party accountability with over 5,000 global companies who are members of RSPO. We work closely with our suppliers and contract manufacturers to better their palm oil sourcing practices,” Lee said.

Beautycounter works with a women-owned supplier in Madagascar to source high-quality vanilla, which Lee says “works to improve the quality of life for their community of farmers. We’re also in the process of auditing a new, additional sustainable vanilla supply. Given vanilla sourcing is notorious for human rights issues such as child labor and wage theft, we feel passionate about finding partners that protect the farmers who harvest vanilla.”

Nu Skin recently joined the EcoBeautyScore Consortium, the group developing an industry-wide environmental impact assessment and scoring system for cosmetics products.

“An increasing number of shoppers are basing their purchasing decisions on the environmental impact of products,” Ruth Todd, senior vice president and chief reputation officer at Nu Skin, said in a statement. “It’s time to provide customers with even more clarity and transparency into the environmental impact of their beauty products.”

Purse Strings v. Convictions

More brands are committing to sustainability principles and ethical sourcing—but in today’s inflationary environment, will consumers hold tighter to their purse strings or their convictions?

“As it currently stands, environmental claims can actually encourage consumers to trade-up. While brand name, product quality and price are all key purchase drivers, eco claims have become increasingly more important –especially among younger adults. In fact, 36% of Gen Z adults who buy their own beauty or personal care products say they would be willing spend more on a product with ‘eco-friendly’ claims,” said Goodsitt of Mintel.

“However, as more mass/masstige brands incorporate elements of sustainability into products and manufacturing, sustainable brands charging a premium will have to work harder to justify costs and prove value to consumers,” said Goodsitt. “It’s possible more brands will adopt transparent pricing models to highlight the quality of raw materials used. Furthermore, since durability and longevity are often linked with quality, there may be opportunities for brands charging a premium for sustainable beauty products to encourage purchases by offering long-lasting products and/or refillable/reusable packaging.”

For Lee of Beautycounter, ethical and sustainable sourcing goes hand in hand with clean beauty.

“It is our view that you cannot separate ethical, sustainable sourcing from the development of a clean product. Responsible sourcing ensures that brands—and ultimately, consumers—can mitigate the detrimental environmental and human impact of their end result products. This is really hard work, and we are committed to it for the long haul,” she said.

“What needs to happen sooner than later is for all brands to make sure their major raw materials all come from responsible sources, “ noted Leson of Dr. Bronner’s. “It must become common knowledge that responsible sourcing equals organic, fair trade and Regenerative Organic Certified and it must become common practice to be certified to these standards.”  

Retinol vs Encapsulated retinol: Encapsulation technologies for more effective cosmetic actives Retinol is a “hero” ingredient, famous for its multifunctional activity, however formulating with it has some drawbacks. Sederma’s new encapsulated retinol provides an effective cosmetic solution that addresses the specific challenges associated with retinol. What is retinol? Retinol, also known as vitamin A, is a liposoluble retinoid, a group of natural and synthetic derivatives of vitamin A. It is an essential nutrient involved in many biological functions such as embryogenesis, bone growth, immune system, reproduction, eyesight and cell cycle. In its natural form, vitamin A exists in animal sources as preformed vitamin A (retinol and retinyl esters) and as provitamin A (carotenoids and specifically beta-carotene, alpha-carotene, and beta-cryptoxanthin) in vegetable sources. How does retinol work in the skin? Retinol’s multi-functional activity helps skin appear healthy, glowy and smooth. It speeds up cell renewal, modulates cell metabolism, enhances the neosynthesis of extracellular matrix components (collagen, GAG…) and reduces the production of ECM degradation enzymes and melanin. As a result, this “hero ingredient” reinforces the skin’s barrier, visibly reduces wrinkles and blemishes, brightens skin and promotes hair growth. Retinol: a tricky ingredient. Retinol is highly subject to various chemical changes and depending on the environmental conditions (light, temperature, oxygen, pH, solvents…), it can breakdown, form free radicals, reactive oxygen species, and other metabolites, that diminish its efficacy. What retinol issues does the Sederma’s encapsulated retinol solve? Under certain conditions retinol is unstable and must be handled and stored under specific conditions. This instability reduces its bioavailability and efficacy. There is also a skin irritation potential commonly known as retinol burn or retinisation. Depending on the skin type and concentration retinol burn may occur when first used, resulting in irritant contact dermatitis, also known as retinoid dermatitis. Sederma’s new hero encapsulated retinol, ReVitAlide™, is a water dispersible suspension designed to respond to the market demand for a stable, easy-to-formulate, highly bioavailable and well-tolerated retinol.  SPONSORED CONTENT