Honesty and trust needed to wash away the greenwash

30 Sep 2021 --- Provenance technology helps brands communicate messages about social and environmental impact with shoppers, online and in-store, by connecting claims to supply chain data and third-party evidence. In doing so, the software solutions brand enables beauty and personal care (BPC) shoppers to drive progress through what they buy, while generating rewards for those brands making a positive impact on people and the planet.

Click to EnlargeJessi Baker is on a mission to sustainability messaging being fact based. Source: Provenance.Describing how the inspiration behind Provenance was “simple”, Jessi Baker, Founder and CEO, details: “I wanted to be able to buy products that matched my values, to use my purchase power to support brands that are making genuine efforts to benefit people and the planet. The problem was that it was impossible to make positive purchasing decisions without any of the information required, and without being able to trust what little information I could find.”

Provenance saw that there were internal supply chain and impact management tools for businesses, and there were a handful of consumer apps trying to support sustainable purchases but with inaccurate, open data. “There was no way of enabling trustworthy, consistent brand claims about social and environmental impact,” observes Baker.

The software solutions founder first started working on Provenance as an answer to this problem in 2013. “Since then, shopper demand for credible proof of impact has increased astronomically,” stresses Baker. Today, sustainability is a communications must-have for marketers. The latest data from the NYU Stern Center for Sustainable Business estimated that sustainability-marketed products grew 7.1 times faster than products not marketed as sustainable from 2015-19.

Beauty can make the biggest impact

The global beauty industry produces more than 120 billion units of packaging every year, findings from Zero Waste Week reveal. It is also responsible for 14,000 tons of sunscreen that collects every year in the world’s reefs, insights from the British Beauty Council’s The Courage To Change report shows. 

Provenance saw that the beauty industry provides an opportunity to mitigate impact at scale. The end goal is to benefit people and the planet by enabling more sustainable consumer goods brands to prosper in their respective markets. “With that in mind, the vast social and environmental impact that the beauty industry is responsible for made it an obvious target,” emphasizes Baker. 

Click to EnlargeConsumer interest in product ethics is hindered by a lack of trust. Source: Provenance.Beauty is also a key vertical for Provenance as the brand recognizes the strong demand from shoppers for greater transparency. In 2020, the British Beauty Council found 86% of beauty shoppers want more information around ingredient supply chains. “By extension, there is an acute commercial need for brands to respond with credible, consistent sustainability communications,” Baker details.

“We are seeing an increasing number of beauty brands and retailers - many of whom might not have come to market with an ethical focus - developing sustainable edits and collections,” highlights Baker. “Brands are clearly increasingly aware that shoppers want their help to reduce their personal impact on people and planet, and I see ‘sustainable’, ‘responsible’ or ‘transparent’ edits as a practical attempt to serve this need.” 

Increasingly, stories about sustainability are growing throughout the BPC industry. Tangible, proactive actions are proving formidable and popular with today’s consumers, especially as greenwashing - whereby brands convey misleading information to boost the environmental credentials of their products and services - has been identified and efforts are being made to eliminate it from claims, labelling and marketing. 

“In time, of course, it is my hope that every product will come with consistent, credible information about social and environmental impact, but these select edits are an encouraging first step,” says Baker.

Practical vs. theoretical

Despite the progress in removing greenwashing and improving the authenticity of sustainability claims in beauty, there are gaps in what the industry is talking about regarding environmental consciousness. “Although it is a present focus for brands and retailers, the beauty industry still has a way to go in terms of communicating on-packaging recyclability,” Baker confirms.

Recyclability in many instances relies on shoppers dismantling complex packaging and recycling different components in different destinations. “At the moment, this sort of packaging is really only recyclable in a technical sense. Precious few people actually recycle in this way, and brands simply aren’t giving shoppers clear instructions on how to recycle,” explains Baker.

Click to EnlargeCertification that is accepted and understood is vital if the industry is to gain consumer confidence. Source: Provenance.Extended Producer Responsibility is a piece of UK legislation set to come into effect in 2023, which will see the full cost of collecting household waste shift from the taxpayer to producers. As a result, it will be more crucial than ever that brands ensure the recyclability of their packaging. “Not only in terms of material composition, but also giving clear, shopper-friendly instructions around how to recycle packaging components in specific localities,” Baker relays.

Sustainability communication has shifted, spurring change and shaping the BPC industry. For one, shopper expectations around sustainability communications have changed “massively” in recent years, Baker reveals. “When I started Provenance, a number of brands told me it would be ludicrous to reveal the suppliers, ingredients and impact behind their products.”

However, with 79% of shoppers now changing their purchase preferences based on environmental impact, social responsibility and inclusiveness - according to Capgemini - and with Greta Thunberg on the front cover of Vogue, Baker details: “Brand marketers and communication leaders know that sustainability is no longer just a hygiene factor.”

That said, the practice of communicating environmental concerns in beauty is lacking. “In terms of how communication has actually evolved in practice, the simple answer is not enough,” says Baker. “We have seen a proliferation of new claims and certifications on social and environmental impact, but consumer understanding remains low.”

Today, one in five beauty shoppers don’t know how to check a product’s sustainability credentials, the British Beauty Council’s The Courage To Change report reveals. Moving the sustainability narrative forward in the BPC industry is vital. 

“Moving out of 2021, I would also expect to see regulation play a more crucial role in ensuring the integrity of beauty brands’ sustainability communications,” Baker anticipates. 

“We are currently seeing a concerted attempt from European regulators (notably the UK’s Competition and Markets Authority) to clamp down on greenwashing, which has the potential to level the playing field and enable legitimately ‘green’ businesses the chance to increase their market share.” 

By Natasha Spencer-Jolliffe, BPC Insights Senior Journalist