Within the beauty industry, French personal care company L’Oréal has singled itself out as a relentless purveyor for eco-conscious solutions — both in packaging and product development — and as a result, the brand has decided to give access to its sustainable procurement program to 20% of its strategic suppliers. This move ensures that the cosmetic company is doing its part and taking collective action in the quest to battle climate change.
EcoVadis, which is a global CSR rating agency that "assesses supplier performance on environmental, social and ethical criteria" will play a key role in this process as it will work to streamline the buyer-supplier collaboration on improvements such as ones that pertain to the agenda of sustainability.
Sustainable Procurement Programs
L’Oréal Has Pledged to Help Its Partners Improve Their Processes
Trend Themes
1. Eco-conscious Packaging - There is an opportunity for disruptive innovation in developing sustainable packaging solutions in the beauty industry.
2. Supplier Sustainability Assessment - The trend of conducting comprehensive assessments of suppliers' environmental, social, and ethical performance creates opportunities for organizations specializing in supplier sustainability consulting.
3. Collaborative Buyer-supplier Sustainability Programs - Organizations can develop innovative platforms and tools to facilitate collaborative initiatives between buyers and suppliers for improved sustainability practices.
Industry Implications
1. Beauty and Personal Care - Companies within the beauty and personal care industry can explore sustainable packaging innovations and processes to align with growing consumer demand for eco-conscious products.
2. CSR Rating Agencies - Opportunities exist for CSR rating agencies to expand their services and collaborate with organizations in assessing supplier sustainability performance.
3. Supplier Sustainability Consulting - The need for expertise in assessing and improving supplier sustainability presents opportunities for consulting firms specializing in this area.