Avoiding Greenwashing in Beauty in 2024 and Beyond: A Definitive Guide for Beauty Brands
Green and ethics-focused cosmetics brands are more in demand than ever.
But with widespread greenwashing, consumers are becoming increasingly skeptical – and government regulating bodies are taking note.
So how can you make positive steps in a sustainable direction that will be recognized under the law and earn the trust of your potential customers?
Genie Supply is here to help!
Our in-depth guide below outlines the three key steps to building a genuinely green and ethical brand and avoiding greenwashing.
Plus, we discuss the evolving greenwashing legal landscape, why you must choose your ingredient suppliers carefully, and reveal the one key ingredient that you must reduce in your packaging to become a green brand.
Consumers Demand Green Products – But How Do They Know They’re The Real Deal?
There’s a growing demand for more sustainability and ethics in the beauty industry. According to an Accenture survey, 72% of consumers claim they intentionally purchased more environmentally friendly products in 2019 relative to the five years prior.
Brands know the environmentally-friendly niche is lucrative – but making ethical products doesn’t come cheap. These additional costs encourage brands to cut corners and loosen their commitment to genuine sustainability practices.
The result is predictable: a 2020 European Commission product study found that 53.3% of environmental claims were vague, misleading, or unfounded, while 40% were unsubstantiated. This doesn’t go unnoticed by consumers – a recent Zippia report revealed 88% of Gen Z don’t trust brands’ claims related to the environment.
Green claims are not tightly regulated, and while some third parties have stepped in to act as an unofficial regulator, they are not always reliable.
The EU Introduced Legislation To Tackle Greenwashing
Recognizing the situation and how it can mislead consumers, the EU took a firm stance on greenwashing and introduced a new piece of legislation called the ‘Directive on Empowering Consumers for the Green Transition’, which will come into full enforcement in 2026.
The directive states that companies must substantiate all claims such as ‘green’ ‘environmentally friendly’ or ‘ethical’ with evidence, and it also forbids the display of unreliable sustainability logos.
Where the EU leads on regulation, the US soon follows. For example, the US government recently introduced The Modernization of Cosmetics Regulation Act (MoCRA) to harmonize its cosmetic policies with the rest of the world. Learn more about MoCRA in our full blog post here.
Given this trend, we can expect similar legislation regulating green claims in the US soon.
So how can a small beauty brand that values sustainability and ethics prepare for potential legislation tackling greenwashing?
To claim ‘clean’ or ‘sustainable’ beauty with confidence, follow our three-step process: evaluate the ethical and environmental impact of your Ingredients, packaging, and company-wide ethics.
Sourcing Green & Ethical Ingredients For Your Products
There is a worrying lack of transparency around the origins of cosmetic ingredients and this information gap facilitates greenwashing.
Some larger brands are taking big steps in the right direction. For example, in 2024, Clarins announced it is buying up farms and vertically integrating to improve transparency.
Naturally, moves like this are too expensive for smaller businesses.
If you want to make green claims about your products, what you truly need is proof to back them up.
Make the process easier by dedicating time and effort to vetting your ingredient suppliers and product manufacturers closely from the beginning.
Sustainable / Ethical Manufacturing & Ingredient Sourcing
To avoid greenwashing, make sustainability and ethics part of your selection criteria for both manufacturers and ingredient suppliers:
Choose those who are focused on improving the ethical aspects of their supply chains. This includes ethical labor standards, transparency into the feedstock, manufacturing methods, and purity of final ingredients.
Source domestically where possible to reduce emissions from shipping materials and goods. Did you know that this is typically brands’ largest carbon emission?
Consider MacroOceans (sustainably harvested Alaskan kelp) or biotech ingredients, which reduce reliance on farmland.
Select ingredients with the most documentation in terms of feedstock, manufacturing methods, practices, and impurities.
Opt for upcycled ingredients as often as possible.
Reduce SKUs in your line by combining products. The fewer products manufactured, the smaller the carbon footprint and less risk of general waste due to product spoilage.
Potential Regulations & Standards To Apply For
Choose a manufacturer that can formulate specific regulations and standards. We recommend:
EU Formulating Standards - no mark
EWG or Natural Products Association Seal - choose one or both
Biodegradability - the EPA standard is in the pilot phase right now, but run ASTM D6400 for biodegradability and OECD 301B for ecotoxicity, and consider applying with the EPA ($3,500/product)
Leaping Bunny or Peta or 3rd Party Vegan Cert - choose one (est. $500-5k/year)
Ecocert or USDA Organic - if applicable (this is the hardest to get)
Upcycling - Consider joining groups like the Upcycled Food Association to stay at the forefront of regulation and push positive change
Additionally, always ask for certification or statements from vendors to ensure the supply chain is free of animal products (if necessary), forced labor, and child labor.
At Genie Supply, we’re experts at formulating clean, sustainable, cruelty-free, and vegan cosmetics for small beauty brands like yours. We can formulate to specific certifications and standards. Learn more about certifications at Genie Supply here.
Sourcing Sustainable & Reduced Plastic Packaging
Once you have collaborated with a sustainable and ethical lab to develop products using green ingredients, it’s time to turn your attention to the effects of other facets of your business.
To create a genuinely sustainable beauty brand, you need to take a serious look at the environmental impact of your packaging.
Cutting plastic from the production process, especially virgin plastic, is the best place to start.
Look for suppliers that offer reduced plastic packaging solutions such as post-consumer resin (PCR), biostone labels, kraft paper tubes, wax-lined paper/cardboard options, non-laminated options, and FSC paper.
Many seals and standards require at least 50% of all materials to be recycled or biodegradable, and expect continuous improvement over time, with less and less reliance on petrochemicals and plastics year after year.
How To Become Plastic Neutral (Or Better)
Thankfully, there are resources available to make the transition to more sustainable packaging easier for your brand.
Organizations like Clean Hub can help estimate your company’s contribution to global plastics, by calculating your annual plastic usage by weight.
Armed with this knowledge, offset your usage by committing to recovering and diverting the weight of your plastic waste each year to be plastic-neutral certified (or more to be plastic-neutral+ certified).
Plus, companies like RePurpose offer paths to invest in plastic neutrality projects that are specific to your local economy.
All plastic reduction and general carbon footprint reduction initiatives should be shared with customers via an end-of-year (EOY) impact report.
Impact reports showcase not only completed efforts but also ongoing efforts and targets, as well as future targets.
How To Become A Holistically Ethical/Green Brand
Choosing a green formula and reduced-plastic packaging is important, but holistic business ethics should be at the forefront of your efforts to avoid greenwashing.
Audit your entire supply chain from beginning to end to identify weak points and areas for improvement:
Are all stages in the supply chain free of animal cruelty, child labor, and forced labor and are the people working on your products treated and paid ethically?
Prioritize climate neutrality. Try tools like Bluebird (owned by rePurpose) or Change Climate (specifically its forthcoming 2025 standards) to analyze your overall carbon footprint and identify areas where it can be improved.
Apply For Certifications To Bolster Your ‘Green’ Or ‘Ethical’ Claims
Consider applying for the following certifications as proof of your efforts and to communicate your ethical stances with potential customers:
Women / LGBT / Minority-owned certifications - Your business may qualify for one of these certifications. Check your state’s policy to learn more about the process.
1% For the Planet - Consider committing to continuous improvement and giving back 1% of top-line revenue (if you aren’t already via programs like RePurpose, or in addition to what you are already giving).
B-Corporation - an intense process that involves ongoing commitments to change. Admittedly, this can be difficult for smaller businesses.
Don’t forget about the green Initiatives that are currently not regulated but are likely to be in the future:
Upcycled Ingredient Certification - Upcycled ingredients are rising in popularity each year. Although there’s no verification or certification process available just yet… watch this space!
Biodegradability Certification - the EPA is working on it, and yes, there’s a test, but it’s not being discussed enough.
Plastic-Free / Micro-Plastic-Free - Products that contain zero plastic components - in packaging and formula - deserve to shine.
Anti-Greenwashing Rules - We expect the US to follow suit with the EU, meaning many of the above certifications discussed might be at risk. That doesn’t mean don’t get certified! It means do the most. Document, verify, track and audit. The EU requires third-party auditing to back claims, so act as if you will be audited any time and you should be able to adapt quickly if and when things change in the US.
Waste Plans - What will you do with goods that don’t meet QC standards? Expired goods? How will you more accurately predict sales to reduce over-manufacturing and therefore waste?
Announcing Your Green & Clean Efforts To The World
Once you have made significant efforts to become more green, ethical, and clean through your formulas, your packaging, and the day-to-day operations of your business, it’s time to let the world know!
Moving in a more ethical direction isn’t just the right thing to do, it can also inspire change in competing brands and act as a significant selling point for consumers.
Keep your target market in the loop through announcements on your website, on social media, via email marketing, and in advertising campaigns.
Remember – it’s crucial to ensure that all claims are substantiated with solid evidence, otherwise, you will fall into the ‘greenwashing’ trap, which could have serious legal ramifications (even in the US) in the not-so-distant future.
In sum, there are three key elements to creating a genuinely green & sustainable brand and avoiding greenwashing:
Choosing a green & ethical manufacturer to create your products using ethically sourced and sustainable ingredients
Reevaluating your current packaging and finding reduced plastic alternatives
Adopting a holistic ethical approach for your entire business from the ground up, including fair treatment of all workers and a company-wide climate neutrality policy
Ready to create your own range of genuinely green & ethical cosmetics? Genie Supply has got your back! Get in contact via email: customerservice@geniesupply.com or call: +18123291105 to learn more.
