ESG in the Cosmetics Industry

alva’s latest analysis reveals the impact of ESG issues on the cosmetics industry

Through the lens of 16 cosmetics companies, alva has examined 3 million+ press, media analysis and social media data points to reveal how ESG-related sentiment trends have shifted across this sector, and identified the emerging concerns, opportunities and shifts arising from ESG.

Key findings of the report include:

• Parent companies are leaking ESG negativity into their brands: Consumer concern around ESG issues is fuelling a broad focus on the companies that own cosmetics brands. The negative visibility of parent companies Unilever and P&G regarding issues such as governance, health and safety and the environment is being felt at an individual cosmetics brand level – even when concerns do not relate to their cosmetics products.
• Sustainable products hit the shelves to build differentiation: Innovation around sustainable products is emerging as a new way for brands to differentiate themselves and build their ESG credentials. Such developments include an investment by LVMH in a research and development centre dedicated to developing products with greater sustainability, and product launches by Coty and Natura that focus on clean formulation and vegan certification.
• Philanthropic initiatives provide most impressive positive impact: 11 out of the 16 cosmetics companies have promoted philanthropic initiatives, having the most positive impact on the sector’s ESG performance – with the best results being gained from donations to local charities, and support for causes focused on education and women.