Top executives in beauty are pushing for greater influence on EU policies that impact the industry.
Leaders from the Value of Beauty – an alliance that includes beauty giants L’Oréal Groupe, Beiersdorf, Puig and Givaudan – met in Brussels, Belgium, this week to highlight among policymakers the contribution the sector makes to the economy.
The alliance is calling for the EU to have regular dialogue with the beauty and personal care industry which adds €180bn to GDP in the EU and supports 3.2m jobs.
These businesses export €26bn worth of goods, making it the biggest exporter in the world in this sector, according to a new The Value of Beauty report from Oxford Economics published to coincide with the meeting.
“The Value of Beauty Alliance calls on EU policymakers to engage in a constructive dialogue to ensure proposed legislation reflects our value chain’s unique characteristics, challenges and vital contribution to the EU economy,” said Nicolas Hieronimus, CEO of L'Oréal Groupe.
“This will enable us to continue to drive innovation, develop new sustainable solutions and maintain our leadership position on the global stage.”
Key issues the group are proposing the EU prioritises include REACH regulations, the EU law protecting human health and the environment from the risks of chemicals.
Leaders want a focus on consumer safety and environmental protection based on robust risk assessment and real-world ingredient use, maintaining high scientific standards.
The regulation first came into force in 2007 and is currently undergoing revisions which are expected to tackle the presence of Perfluoroalkyl substances (PFAS) – also known as “forever chemicals”.
Trade agreements are also a priority area, with the group calling for a reduction to regulatory barriers and support for the export of high-quality European products.
It also wants stronger customs checks and rigorous enforcement of environmental and sustainability requirements on imported products, both online and offline “to ensure a level playing field”.
In the area of sustainability, the group is calling for policies that support sustainable ingredient manufacturing, address the “green premium” for sustainable technologies, and secure a reliable long-term supply of sustainable feedstock.
Vincent Warnery, CEO of Beiersdorf, said the alliance is “fully committed to the EU’s objective of achieving net zero by 2050 with many companies in the sector on track to achieve this by 2045”.
But a “reasonable implementation of the EU sustainability framework within appropriate transition periods” is needed to balance the transition to an economy with less climate impact while remaining competitive, he said.
The group is also calling for a review of the recently implemented EU rules on wastewater.
They argue that the costs of the legislation, which is designed to protect the environment from harmful wastewater discharge, disproportionately fall on the cosmetics industry.
Meanwhile, Value of Beauty has called on the EU to partner with the industry to develop targeted training programmes and investment instruments for upskilling the workforce to meet the evolving needs of the sector.
The cosmetics sector spends €2bn on R&D and roles are three times more likely to be R&D-centric compared to the average online job posting, according to Oxford Economics’ analysis.
“The beauty and personal care industry is a vital pillar of Europe’s society and economy,” said Gilles Andrier, CEO of Givaudan.
“Contributing €180bn to EU27 GDP and supporting 3.2 million jobs, our sector is a sophisticated, science-driven and dynamic industry, deeply committed to sustainability and innovation throughout its entire supply chain.
“On average €2bn is invested into R&D by our sector each year and not only are we driving business growth but we are also creating high-skilled jobs and reinforcing Europe's position as a global leader in the sector.
“However, in this dynamic landscape, a coherent and predictable regulatory environment, grounded in robust scientific principles, is essential for our value chain to continue to thrive.”