Sustainability in the supply chain: challenges in the responsible sourcing of raw materials in the personal care industry

The sustainable procurement of raw materials for personal care products presents the industry with complex challenges. These include for certain raw material categories, the still limited availability of ecologically and socially acceptable alternatives, a lack of transparency in complex, global supply chains and different regulatory and ethical standards along the value chain. Another factor that should not be underestimated is the continued reluctance of many market participants to disclose or pass on existing data - whether due to economic interests, a lack of trust or a lack of regulation. Added to this are uncertainties caused by geopolitical developments and the expectations of consumers, who increasingly value traceability and ethical responsibility.

Cross-organisational mechanisms are needed to ensure responsible procurement: Codes of conduct for suppliers, sustainability assessments by external service providers and regular audits of identified high-risk suppliers are basic requirements and the basis for being able to anchor minimum environmental and social standards along the supply chain in the first place. Nevertheless, checking the actual conditions, particularly in upstream supply chains (e.g. in the mining of mica or the extraction of palm oil derivatives), remains a key challenge.

Sustainability criteria are increasingly influencing decisions along the supply chain - especially in the selection and evaluation of ingredients: The growing demand for sustainable solutions has already stimulated a large number of innovative developments in the field of alternative ingredients in recent years. It is now up to companies to actively integrate these existing solutions into sustainable product concepts. The focus is on selecting more environmentally friendly alternatives and is closely linked to regulatory requirements. These requirements have a decisive influence on decisions in the area of formulation development - with positive effects for safety and environmental standards. At the same time, targeted alternatives that have a better carbon footprint, lower water consumption or reduced land use are becoming increasingly important.

Against the backdrop of growing regulatory requirements and social expectations, the issue of transparency along the supply chain is becoming increasingly relevant - particularly with regard to ingredients and their origin. The use of technologies such as blockchain can provide fundamental support here, but their effectiveness depends crucially on the quality and completeness of the data provided - and therefore on the openness of the market players involved.

Transparency can only be ensured through an integrative approach. This includes digital tools for traceability, clear requirements for suppliers, publicly accessible information on ingredients and an open dialogue with stakeholders. Ultimately, only those market players who face up to the changing requirements and are prepared to offer a minimum level of transparency will be able to survive in the cosmetics market in the long term. Social, ecological and economic responsibility is not an optional extra, but a prerequisite for remaining credible and competitive.