Complex supply chains and climate change make 'clean beauty' nearly impossible

EAST GARAFRAXA, Ontario — Julie Thurgood-Burnett had no idea that her COVID-19 lockdown whim of starting a lavender patch on her husband's family farm outside Toronto would turn into a small business. She had never been a farmer, but before long she had a bright purple field and a new hobby of creating lavender oil for her friends and family, who liked it so much she ran out.

And then she had a brand, Hereward Farms, which she wanted to be “authentically sustainable." To her that meant avoiding plastic packaging, even though it would have been cheaper. It also meant sourcing as many raw ingredients from Canada as possible, which turned out to be much harder than she expected. She was able to get Canadian-made beeswax and sunflower oil, and work with a Canadian supplier, but not everything comes from Canada. Most of Hereward's essential oils and all of its dried flowers (except lavender, of course) come from the United States.

“You go down this dark hole of trying to figure out where things are sourced from,” she said.

It's a challenge for small brands with environmentally friendly values because the beauty industry, worth billions of dollars and dominated by a few major brands, has an uglier underbelly. It can be nearly impossible to trace some ingredients to their source, according to supply chain experts.

The making and disposing of cosmetics contributes to planet-warming carbon emissions, deforestation, pollution and waste. Climate change in turn is exacerbating extreme weather events like heat, drought and flooding that disrupt production. And there’s little regulation governing beauty products in many countries. But despite the uphill battle, many business owners who care about being eco-friendly are trying their best to tackle these problems.

Consumers have begun demanding sustainability and transparency from their beloved multi-step skincare routines, seeking out what's popularly known as “clean beauty”. But dubious claims about “green” and “pure” products abound.

Dale Rogers, a professor in the business school at Arizona State University who studies supply chains, gave the example of “sustainable” palm oil, an ingredient commonly featured in eco-friendly cosmetics brands. “There’s sustainability certification groups that will certify ingredients. So palm oil might be sustainably sourced, for example, but then it gets blended with other palm oil and you start to lose track,” he said.

“Very few” major beauty companies are doing the kind of research needed to actually know where their materials come from, said Bindiya Vakil, CEO and founder of Resilinc, a company that maps supply chains for businesses. And Vakil said that even when big companies are willing to support the effort to trace ingredients to their origins, suppliers aren’t always willing to answer those questions. Investigating entities can then turn to public domain information to try to fill in the gaps, but it’s imperfect.

And “brands are changing their suppliers all the time,” said Homer Swei, senior vice president of healthy living science and consumer safety science at the Environmental Working Group, which offers a third-party certification for beauty products focused on human health. “So even if you spend $1 billion to define the supply chain today, tomorrow will be different and it’ll be obsolete.”

Legislation in some countries can crack down on companies, making it illegal for them to source from suppliers that, for example, use forced labor or harmful chemicals. But environmental regulations lag behind, and profit motives and the promise of sustainable branding claims “align against greater disclosure,” Vakil said.

Any third party can create their own certification or sustainability effort, including beauty companies themselves. The Estée Lauder Companies is a founding member of an initiative called the Traceability Alliance for Sustainable Cosmetics, according to Meghan Ryan, their executive director of responsible sourcing. It's not a certification, but asks suppliers to voluntarily input information about their production and “uses a variety of tools to conduct due diligence,” she said in a statement.

Major beauty retailers Sephora and Ulta Beauty both have labels on certain products calling them “Planet Aware” or “Conscious Beauty,” respectively, but neither company would answer questions from The Associated Press about why certain criteria for those designations were chosen, how many of their total product offerings get those labels and whether they have plans to expand the number of those types of products.

Swei said the best certifications on the market are fully transparent ones, but added that “climate change is moving supply chains all around the world,” making full transparency more difficult. Vakil agreed that extreme weather events fueled by climate change have been disrupting companies more and more, especially those who rely on farmed materials susceptible to heat, drought, flooding and damage from hurricanes and wildfires.

Many small brand owners have the motivation to be more transparent and selective about their ingredients, but some described spending hours tracing where things came from, having to switch manufacturers and accepting smaller profit margins. And entrepreneurs, just starting out, sometimes don't know what questions to ask their suppliers, or don't have enough leverage to demand answers.

Rina Clarke founded Buck Naked Soap Co. when her infant son developed a skin reaction to traditional cosmetics. She said she's been “constantly disappointed” to find that she can't make soaps with certain highly desired scents, such as sandalwood and strawberry, because she's determined it would be impossible to do so by her company's set sustainability and health standards. Many species of sandalwood, for instance, have been overharvested and some are now facing extinction.

“As much as I want for us, as a business, to be competitive with other businesses, it's hard,” she said. “We don’t want to be a hypocrite is basically what it comes down to.”