Sustainable business – sustainability in the cosmetic industry*

Last month I was invited to join the jury that would evaluate cases presented by members of the Brazilian Industry Association of Toiletries, Perfumes and Cosmetics (ABIHPEC) for their annual Award. As a sustainability expert, my task was to check how those companies were dealing with the societies demands in terms of economic, social and environmental pillar. I had two categories to evaluate: hair treatment and best company of the year. Among those more than 10 projects I read, something that called my attention: most of the companies, until now, are not considering sustainable development in their strategy or have no link of the topic to their products (at least in the cases they applied to the award). As Brazil is the third largest consumer market of beauty products in the world, I got curious to learn a little bit more about how national and multinational companies are working with it.

First of all, I decided to check the topics of the sustainable cosmetics summits. The discussions were around green materials or ingredients, environmental impacts, digital marketing, sustainable packaging, sustainable metrics and also about the 3 pillars of sustainability (yes, sustainability is not only about environment, but also about economic and social)! After that, I started checking the websites of some companies. And from the 10 companies visited (I know it is a small number), I noticed that the reality is the same if we compare national or multinational companies. I can divide them in three groups:

1. Clear positioning, with clear targets (goals and time to reach them) and annual reports presenting the results;
2. Clear positioning, but no clear targets (at least I could not find in the website), but reports presenting results;
3. No positioning, no target, but an intention to take care of our house (planet) or to have more natural products.

In the companies from group 1, I read something that I really enjoyed, one of their goals for the near future, is to support consumers make better choice, be more conscious. How¿ By disclosuring and communicating the environment and social impact of their products. When customers understand the impact of their choices and behaviors, this reality will not be exclusive from one or another company, it will be the reality of a whole market and it will foster even more innovation in the sector.

Also in line with conscious consumption, companies from group 1 and 2 are worried about their packaging and are investing in reducing packages, using materials that can be recycled or even produce their packages with recycled materials sometimes from their own products. They stimulate the collection and the right destination for their empty package.

Last but not least, the same companies already have realized that you cannot be sustainable if you do not look for your suppliers. Most of them want to engage their suppliers (sometimes only the strategic ones) by evaluating their environment and social impact.

Unfortunately, the number of companies presented in group 1 and 2 are smaller than in group 3 (and I am talking about a total of 20 – 25 companies). Associations with its discussion groups and awards have to bring this topic to the table and look for government support to engage your members more and more. As I mentioned before, Brazil is the third largest consumer of cosmetics, so we have a big chance to be the pioneers to discuss and internalize this new way of doing business. This is an opportunity to be ready for the future and to explore new markets.

* I prefered not to mention the names of the companies as the prize will be awarded only in october.