BOOZT SUSTAINABILITY CRITERIA - BEAUTY 2022 - Boozt Group
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Boozt Group Sustainability Criteria – Beauty 2022 Table of Contents 1. Purpose Statement..........................................................................................................................................................................................................3 List of Abbreviations..................................................................................................................................................................................................4 2. Background ......................................................................................................................................................................................................................5 2.1. Sustainability at Boozt.......................................................................................................................................................................................5 2.1.1. Care-For Strategy...................................................................................................................................................................................5 2.1.2. Made with Care Assortment..............................................................................................................................................................5 2.2. Stakeholder involvement for a responsible and sustainable transition..........................................................................................6 3. Beauty Criteria Overview ............................................................................................................................................................................................ 7 4. Ingredients transparency.............................................................................................................................................................................................9 4.1. Cosmetic Ingredients’ Toxicity ......................................................................................................................................................................9 4.2. Prohibited Ingredients......................................................................................................................................................................................11 4.3. Conditionally Accepted Ingredients.......................................................................................................................................................... 13 4.3.1. Vegan ...................................................................................................................................................................................................... 13 4.3.2. Not tested on Animals....................................................................................................................................................................... 14 4.3.3. Natural ................................................................................................................................................................................................... 14 4.3.4. No Plastic............................................................................................................................................................................................... 15 4.3.5. Marine Safe........................................................................................................................................................................................... 15 4.4. Accepted Ingredients..................................................................................................................................................................................... 16 4.5. Ingredients Classification - Summary Table........................................................................................................................................... 16 5. Eco designed Packaging........................................................................................................................................................................................... 18 5.1. Packaging design............................................................................................................................................................................................. 18 5.2. Packaging Environmental Claims............................................................................................................................................................... 18 5.2.1. Compostable (Clause 7.2)................................................................................................................................................................. 19 5.2.2. Recyclable (Clause 7.7)..................................................................................................................................................................... 19 5.2.3. Recycled Content (Clause 7.8)....................................................................................................................................................... 19 5.2.4. Reusable and refillable (Clause 7.12)........................................................................................................................................... 20 5.3. Packaging Classification - Summary Table (See table on the following page).......................................................................... 21 6. Social Compliance....................................................................................................................................................................................................... 23 6.1. Risk countries.................................................................................................................................................................................................... 24 6.2. Low Risk countries......................................................................................................................................................................................... 25 6.3. Health and Chemical Safety ...................................................................................................................................................................... 26 6.4. Fair trade............................................................................................................................................................................................................ 26 6.5. Social Compliance Classification - Summary Table.............................................................................................................................27 7. References and Resources....................................................................................................................................................................................... 28 7.1. Ingredient Transparency Sources............................................................................................................................................................... 28 7.2. Ecodesigned packaging Sources.............................................................................................................................................................. 30 7.3. Social Compliance Sources.......................................................................................................................................................................... 31 2
Boozt Group Sustainability Criteria – Beauty 2022 1. Purpose Statement Boozt Sustainability Criteria is a set of guidelines that form the basis for our Made with Care assortment. Every product meeting the criteria listed below will be able to be part of this assortment, as it promotes a more responsible form of production and consumption. Throughout the Sustainability Criteria, we aim at describing in more details what a sustainable product and assortment means to us. 3
Boozt Group Sustainability Criteria – Beauty 2022 List of Abbreviations BSCI Business Social Compliance Initiative BHA Butylated Hydroxyanisole BHT Butylated Hydroxytoluene CAP Corrective Action Plan CEA Cambridge Environmental Assessments CIR Cosmetic Ingredient Review CLP Classification, Labelling and Packaging CMR Carcinogenic, Mutagenic or Toxic to reproduction DEA Diethanolamine ECHA European Chemical Agency ETI Ethical Trade Initiative EWG Environmental Working Group FSC Forest Stewardship Council GRS Global Recycled Standard IARC International Agency for Research on Cancer ILO International Labour Organization ISO International Organization for Standardization KoHF Swedish Cosmetics, Toiletries and Detergents Association LCA Life cycle Assessment OHS Occupational Health and Safety PEG Poly(ethylene glycol) PBT Persistent, Bioaccumulative and Toxic PEFC Programme for the Endorsement of Forest Certification PETA People for the Ethical Treatment of Animals PMT Persistent, Mobile and Toxic PPE Personal Protective Equipment RCS Recycled Content Standard SCIL Safer Chemical Ingredient list SIN Substitute It Now! SLES Sodium Laureth Sulfate SLS Sodium Lauryl Sulfate SMETA Sedex Members Ethical Trade Audit SVHC Substances of Very High Concerns TCS Triclosan UNEP United Nations Environmental Program vPvB very Persistent and very Bioaccumulative vPvM very Persistent and very Mobile WHO World Health Organisation 4
Boozt Group Sustainability Criteria – Beauty 2022 2. Background 2.1. Sustainability at Boozt 2.1.1. Care-For Strategy Our vision is to use our local Nordic position and our technology platforms to make sustainable choices easy for our customers and our partners. By taking responsibility for our direct and indirect footprint on the value chain, and empowering people to act consciously, we strive to build a more sustainable future for fashion. Our Care-For strategy is our roadmap to becoming the leading responsible e-commerce company in the Nordics by 2025, using our business as a catalyst for change. Achieving this means setting actionable goals for the next five years that will keep us on track to reaching our vision, including going climate-neutral across our operations and becoming the first B Corp certified E-tailer in the Nordics. For further information on our Care-For strategy, please see our 2020 Annual Report here. 2.1.2. Made with Care Assortment Our Made with Care assortment combines all cosmetics that meet the sustainability criteria listed in the present document. At Boozt, it is crucial that this category represents a genuine systemic change in production patterns that educates the customer about the socio-environmental impact of cosmetic production and consumption. Therefore, to ensure a reliable, transparent, traceable, and genuine assortment, we rely intensely on globally recognized certifications, as well as extensive data collection. 5
Boozt Group Sustainability Criteria – Beauty 2022 2.2. Stakeholder involvement for a responsible and sustainable transition. Beyond a buzzword, sustainability is becoming increasingly a necessity for all of us, across the industry and across countries. Globally governments and industry leaders are creating new frameworks and standards that ensure a more responsible production and consumption. The Paris agreement and the B Corp Movement are a few examples among others that strive to ease the transitions to more responsible practices. Most recently the European Commission is creating policies to empower customers for a green transition, forcing companies to be more transparent and precise when making environmental claims. At Boozt, we are committed to decreasing our direct and indirect impact on the environment (air, biodiversity, water, and soil) and the people (Our Partners, Our People). Our partners play a key role in this transition, hence the role of the Sustainability Criteria is also to support all of our partners with resources to produce more responsibly. 6
Boozt Group Sustainability Criteria – Beauty 2022 3. Beauty Criteria Overview For a product to be called a cosmetic three conditions need to be met: - the purpose (clean, perfume, change appearance, correct body odor, protect, and/or keep in good condition). - the site of application (epidermis, hair system, nails, lips, external genital organs, teeth, mucous membrane of the oral cavity). - the composition (ingredients that are prohibited or restricted in cosmetic use conform with the EU cosmetic regulations). To be part of our Made with Care category, a cosmetic product needs to prove that its environmental and social impacts are closely monitored and have a reduced impact. In the three following sections we will describe in detail the specific requirements in terms of ingredients transparency, eco designed packaging, and social compliance that brands need to comply with (on a product level) to be part of this category. Like the cosmetic industry, our Care-For strategy at Boozt is about taking care of people and improving the overall quality of life. Therefore, it is crucial for us to ensure the cosmetic products, highlighted in the Made with Care category, present no risk to human health and the environment. For AW22 and SS23, we accept beauty products in the Made with Care category when: - Ingredients are safe for human and environmental health (more details in 4. Ingredients transparency) AND - Packaging is compostable, recyclable, recycled or reusable or refillable (more details in 5. Ecodesigned Packaging) AND - Manufacturing is socially responsible, respecting the workers rights, health, and safety (more details in 6. Social Compliance) On a general note, other certifications that are not mentioned on the following lists can be subject to the Made with Care category. We invite you to shape Boozt sustainability criteria by sharing your knowledge and expertise, as well as other scientific information, so that we can expand the lists of recommendations and resources, to strive for a better future industry wide. 7
Boozt Group Sustainability Criteria – Beauty 2022 Please also note that none of the companies mentioned below are sponsored by/sponsoring Boozt. All certifications, suppliers, recommendations, and resources mentioned are always listed in an alphabetical order to show no sign of preference. Those lists are simply meant to provide further information to facilitate the transition to a more responsible production and encourage brands to incorporate those aspects in their strategies and operations. As research advances and technologies grow, this document will be reviewed on a yearly basis, after the publication of Boozt’s Sustainability report. To ensure its relevance and promote best practices, a new update will be presented, after the revision is deemed complete and aligned with Boozt's updated sustainability strategy and goals, ensuring a smooth start of the buying season. This means that the criterias are not fixed and solely represent Boozt’s strategy at a specific point in time. As part of our Care-For strategy, we will make those criterias stricter in time. Therefore, we always recommend brands to follow industry best practices. Please contact madewithcare@boozt.com for more information. 8
Boozt Group Sustainability Criteria – Beauty 2022 4. Ingredients transparency 4.1.Cosmetic Ingredients’ Toxicity Human Toxicity As cosmetic products are applied directly onto the skin, it is important for us at Boozt to remain transparent about the ingredient list to ensure products sold in the Made with Care category represent a curated selection of products that are not composed of controversial ingredients. It is important to note that in every case the dose makes the ingredient toxic (e.g drinking too much water can also cause serious health risks), and that some of the ingredients mentioned below may be safe to a certain extent. Some of those ingredients may be used to fit consumer needs, however, conflicting results from scientific studies do not allow us at this time to prove that they are entirely safe with no impact on human health. The European Union already protects customers from the most toxic ingredients by limiting their use or banning them. However, some ingredients still present some risks to human health. Those risks can be classified into four main types: allergen, carcinogen, endocrine disruptor, and/or irritant. The European Chemical Agency (ECHA) classifies those SVHC (Substances of Very High Concerns) into multiple categories, such as CMR substances (Carcinogenic, Mutagenic or Toxic to reproduction), PMT substances (Persistent, Mobile, and Toxic) or vPvM substances (very Persistent and very Mobile). CLP (Classification, Labelling, and Packaging) by ECHA regulates and classifies CMR substances in category 1A (Known human carcinogen (H340), mutagen (H350) or reproductive toxicant (H360) based on human evidence) or 1B (Presumed human carcinogen (H340), mutagen (H350) or reproductive toxicant (H360) based on animal studies). Ecotoxicity Ecotoxicity looks at ecologic toxicology, meaning the potential biological, chemical or physical aspects of toxicants and how they can affect ecosystems and their health. Some ingredients used in cosmetics, like phthalates, are common environmental toxicants. The ECHA classifies those SVHC as PBT substances (Persistent, Bioaccumulative, and Toxic) or vPvB (very Persistent and very Bioaccumulative). Those substances can lead to serious and long term irreversible consequences on the environment, specifically aquatic life, indirectly affecting human health and quality of life. 9
Boozt Group Sustainability Criteria – Beauty 2022 Bioaccumulation is one of the most significant environmental issues within cosmetics. Substances that are bioaccumulative are hard to break down and consequently enter the food chain and magnify at every level, putting all animals at risk. The top predators particularly, including humans, end up with the highest concentrations of these substances. For instance, primary microplastics (microplastics that are manufactured, in opposition to secondary microplastics which are a result of plastic breaking down in the environment) used in cosmetics, particularly as physical exfoliators, bioaccumulate easily and lead to disastrous consequences. Other ecotoxic consequences from cosmetics ingredients include poor freshwater quality, biodiversity loss, coral bleaching, etc. It is also crucial to note that those substances can be transported globally and reach remote parts of the world, affecting other biomes and communities. Products are eligible for the Made with Care when they are certified by the following internationally recognized certifications. Those certifications include, but are not limited to: - EWG Certification - Nordic Swan Ecolabel - EU Ecolabel Boozt also recommends brands to: - Develop transparency on ingredients with the help of consulting companies, such as Novi, Provenance or Skinfo. - Join the Responsible Beauty Initiative - Join the Sustainable Beauty Coalition from the British Beauty Council. - Rely on Life Cycle Assessments (LCAs) to understand the impact of the manufacturing but also the use and disposal of cosmetics - Test products under dermatological control More resources for responsible practices on cosmetic ingredients’ toxicity can be found on: - Beat the Microbead by the Plastic Soup - Cambridge Environmental Assessments (CEA) - ChemForward - Convention for the protection of the marine environment - The Helsinki Convention - Cosmetic Europe - Cosmetic Ingredient Review (CIR) - European union cosmetic directive 10
Boozt Group Sustainability Criteria – Beauty 2022 - Kemi, Swedish Chemicals Agency - Safer Chemical Ingredient list (SCIL) by US EPA (Environmental Protection Agency) - Society Of Cosmetics Scientist - The Swedish Cosmetics, Toiletries and Detergents Association (KoHF) - UNEP: An Assessment Report on Issues of Concern: Chemicals and Waste Issues Posing Risks to Human Health and the Environment 4.2. Prohibited Ingredients Ingredients that are considered risky or toxic towards human health and/or the environment (see section above 4.1. Cosmetic Ingredients’ Toxicity) cannot be included in the Made with Care category. At Boozt, we believe that beauty products labelled “Clean Beauty” should be safe for the consumer and the environment, and demonstrate a superiority in terms of transparency and accountability. For a product to be part of the Made with Care category, the ingredient list cannot contain any of the following synthetic ingredients: - Aluminum salts - BHA & BHT - Coal Tar dyes - (CI - 00000) - Diethanolamine - DEA related ingredients - Formaldehyde releasing - Palm oil - Parabens - Phthalates - Propylene glycol (alcohol) - PEG Compounds - polyethylene glycols - Mineral Oils / Petrolatum - Siloxanes (incl. Silicones) - Sulfates - SLS & SLES - Talc - Talcum - Triclosan - TCS Fragrances are not included in the list above, despite having proven multiple times to be irritant or allergen potentials. However fragrances are often not disclosed on the ingredient 11
Boozt Group Sustainability Criteria – Beauty 2022 list, as they are considered a trade secret. As a third party retailer, we at Boozt, do not have the legal possibility to track the fragrances used in the cosmetics we sell. Therefore, we are not able to track fragrances and make it part of the prohibited list of ingredients. As research on ingredients is ongoing, the list will be updated according to scientific findings, meaning that some ingredients may be deleted or added to the list during the next updates. Boozt also recommends brands to: - Follow scientific studies on those ingredients closely. - Look for natural ingredients as alternatives to synthetics (to ensure their lower levels of toxicity) - Test products containing the above ingredients more frequently or with higher dermatological standards. More resources on prohibited ingredients in can be found on: - Chemsec’s (International Chemical Secretariat) SIN List - European commission on endocrine disruptors - International agency for research on cancer (IARC) by WHO - Substances of very high concerns (SVHC), part of REACH, created by the European Chemical Agency (ECHA) 12
Boozt Group Sustainability Criteria – Beauty 2022 4.3. Conditionally Accepted Ingredients 4.3.1. Vegan For a product to be labeled “Vegan” none of the following ingredients can appear in the ingredients list: • Beeswax - cera alba • Biotin - Vitamin B7 • Caprylic Acid • Carmine - cochineal, natural red 4, E120, CI 75470 • Casein - sodium caseinate, caseinate • Collagen • Elastin • Gelatin • Glucosamine • Glycerine • Guanine - CI 75170 • Keratin • Lanolin • Oleic acid • Panthenol - Vitamin B5 • Retinol • Royal Jelly • Shellac • Squalene • Stearic Acid • Tallow - Animal fat • Urea - Carbamide If the ingredient has the same name and is proven to come from a vegetal alternative, a proof or certification is required to prove the authenticity of the ingredient origin. In most cases the product can come from animals or other sources. As it is currently really hard to know and trace back the origin of the ingredients, especially, to see whether it could be from an animal, all products containing ingredients listed above will not be labelled "Vegan". Therefore, to enter the Made with Care category and be labelled as “Vegan”, Boozt requires all products to be certified with at least one of the certifications below: 13
Boozt Group Sustainability Criteria – Beauty 2022 - Certified Vegan by vegan.org - Vegan Approved by the Vegetarian Society - VeganOK - Vegan Trademark by Vegan Society 4.3.2. Not tested on Animals For a product to be labeled “Not tested on Animals”, the products cannot be tested on animals at any manufacturing stage. Therefore, to enter the Made with Care category and be labelled as “Not tested on Animals”, Boozt requires all products to be certified with at least one of the certifications below: - Certified Vegan by vegan.org - Cruelty free by PETA - Leaping Bunny by PETA More resources on cosmetics Not tested on Animals can be found on: - European Comission - Ban on animal testing (in progress) - People for the Ethical Treatment of Animals (PETA) 4.3.3. Natural For a product to be labeled “Natural”, the origins of the ingredients need to be of a natural origin, in opposition to synthetic. Therefore, to enter the Made with Care category and be labelled as “Natural”, Boozt requires all products to be certified with at least one of the certifications below: - Bioagricert - Cosmos by Ecocert - Natrue by the Natural and Organic Cosmetic Association - Natural Product Association - Soil Association It is also important to note that mineral ingredients (e.g. titanium dioxide, iron oxide, etc.) and water (often displayed as “Aqua”), despite being natural, cannot be labelled as organic, since there will always be inorganic substances present. 14
Boozt Group Sustainability Criteria – Beauty 2022 4.3.4. No Plastic Many cosmetics contain microplastics, whether primary or secondary. Those microplastics have tremendous impacts on both people and the environment. Due to their extremely small size, most microplastics cannot be filtered and therefore end up reaching out water bodies, affecting the fauna and flora. Essentially, microplastics are coming back to us, humans, through food and water consumption. As of now, it is still unclear how microplastics impact human health. However it is clear that the concentration of microplastics in the ocean for instance is increasing drastically. Therefore, to enter the Made with Care category and be labelled as “No Plastic”, Boozt requires all products to be certified with at least one of the certification below: - Look for the Zero Boozt also recommends brands to: - Avoid using primary microplastics in ingredients. More resources on microplastics in can be found on: - European Chemical Agency - Annex XV Restriction Report Proposal For A Restriction. - Plastic Soup. 4.3.5. Marine Safe In the Nordics people enjoy bathing and spending time outdoors throughout the year. However, some cosmetics harm the environment, particularly the aquatic environment, when in direct contact with it. The UV filters are placed in sunscreen and other cosmetics, such as moisturizer or foundation. Therefore, it is important for us at Boozt to communicate what products can be used safely when customers enjoy the outdoors. For a product to be labeled “Marine Safe”, the products need to be certified: ◦ Protect Land + Sea OR • Cannot contain one of the following Ingredients (HEL List): ◦ Oxybenzone ◦ Octinoxate ◦ Octocrylene 15
Boozt Group Sustainability Criteria – Beauty 2022 ◦ Homosalate ◦ 4-methylbenzylidene camphor ◦ PABA ◦ Parabens ◦ Triclosan ◦ Any nanoparticles or “nano-sized” zinc or titanium ◦ Any form of microplastic Boozt also recommends brands to: - Avoid labelling cosmetics “Reef safe” as this is not regulated and misleading. - Favor mineral sunscreen over chemical sunscreen, as they are made without hormone disrupting chemicals, are safer for the aquatic environment and are better for babies and kids. 4.4. Accepted Ingredients All other ingredients not mentioned in the 2 categories above (4.2. Prohibited ingredients and 4.3. Conditionally accepted ingredients) are not reviewed, as they do not present any risk for us at Boozt. This means that they are not prohibited or do not require any certification and will not block the access of the product to the Made with Care category. Those ingredients are mostly ingredients that are not presenting any risks towards human health or the environment, regardless of their origins (natural or synthetic). 4.5. Ingredients Classification - Summary Table See table on the following page 16
Boozt Group Sustainability Criteria – Beauty 2022 CURRENTLY SUFFICIENT BEST IN CLASS BANNED INGREDIENTS (Minimum standard for NOT SUFFICIENT (Preferred) (Not on Boozt) Made with Care) EWG (V) Overall EU Ecolabel VeganOK (V, T) Oxybenzone Octinoxate Octocrylene Homosalate 4-methylbenzylidene camphor Marine Safe NA Protect Land + Sea (V, T) PABA NA Parabens Triclosan Any nanoparticles or “nano- sized” zinc or titanium Any form of microplastic "Reef Safe" Cosmos, by Ecocert Bioagricert (V) Natrue (V, T) Natural Not certified NA Natural Product Association Soil Association (V, T) No Plastics NA Look for the Zero (V, T) NA Certified Vegan, by vegan. org (V) Cruelty free, by PETA Not tested on Animals NA Not certified NA (V) Leaping Bunny, by PETA (V, T) Aluminum salts BHA & BHT Coal Tar dyes - (CI - 00000) Diethanolamine - DEA related ingredients Formaldehyde releasing Parabens All Other Synthetic Phthalates Synthetics NA NA Ingredients Propylene glycol (alcohol) Sulfates - SLS & SLES PEG Compounds - polyethylene glycols Mineral Oils / Petrolatum Siloxanes (incl. Silicones) Talc - Talcum Triclosan - TCS Beeswax - cera alba Biotin - Vitamin B7 Caprylic Acid Carmine - cochineal, natural red 4, E120, CI 75470 Casein - sodium caseinate, caseinate Collagen Elastin Gelatin Certified Vegan, by vegan. Glucosamine org (V) Vegan Approved, by Glycerine Vegan NA the Vegetarian Society (V, T) NA Guanine - CI 75170 Vegan Trademark, by Vegan Keratin Society (V, T) Lanolin Oleic acid Panthenol - Vitamin B5 Retinol Royal Jelly Shellac Squalene Stearic Acid Tallow Urea - Carbamide For more information or questions regarding the criterias, as well as other suggestions, please contact madewithcare@boozt.com. 17
Boozt Group Sustainability Criteria – Beauty 2022 5. Eco designed Packaging 5.1. Packaging design Packaging is often a center of discussion in sustainability, as most of it is used for a very short period of time. Hence, this leads to a high level of waste of resources, as well as waste creation. Most packaging is made out of plastics that are either hard to recycle or impossible to break down, impacting the environment for a very long time (in average 400 years). Plastic often breaks down creating microplastics that enter the food chain and cause serious environmental and health problems. While paper packaging is often considered as a better option, since it is more degradable, it has been shown that the amount of resources used can be far greater than the one used for plastic packaging. Both paper and plastic packaging have very different attributes and are therefore hard to compare. At Boozt, we have instead decided to highlight packaging that is designed to have an extended life, such as recycled, recyclable, refillable or reusable packaging, or in other word ecodesigned packaging. Ecodesign is simply ensuring that new designs have circularity in mind and that they innovate their use of resources efficiently and reduce waste throughout the lifecycle of the product (e.g. refill, reuse, recycle…). As all cosmetics sold on Boozt are wrapped in packaging for hygienic and efficiency purposes, it is important to look at the impact of their packaging. As of now, Boozt does not have any products that are packaging free and therefore do not consider this as an option. Here is a list of a few cosmetics companies that have reinvented their products to limit packaging waste, highlighted by the Reuse, rethinking packaging by Ellen MacArthur Foundation: - All things hair refillery Refillable shampoos - Cozie Refillable, reusable packaging (for all cosmetics) - Signal Toothpaste in tablets 5.2. Packaging Environmental Claims For the following requirements, we at Boozt, use ISO 14021:2016 (Environmental labels and declarations - Self declared environmental claims) and ISO 18603:2013 (Packaging and the environment - Reuse). 18
Boozt Group Sustainability Criteria – Beauty 2022 As per ISO 14021:2016, a packaging is described as a “material that is used to protect or contain a product during transportation, storage, marketing or use.” Particular attention should be given to the intended use and function of the packaging. We would like to emphasize that for the following packaging criteria, both the cosmetic container and the outer packaging need to be certified to enter the Made with Care category. In addition, the following claims need to be compliant with ISO 14021:2016 to be considered in our Made with Care category: 5.2.1. Compostable (Clause 7.2) - Ability to biodegrade, generating a homogeneous substance. - A packaging cannot claim to be compostable if it has negative consequences on the quality of the compost, releases substances that can be harmful towards the environment, or decreases the rate of composting. - A packaging can claim to be compostable if it specifies the type of composting required (home vs industrial), if it indicates what part of the product is compostable, how the customer should act, and if it identifies the eventual risks of composting. - Please note that home composting claims need to follow additional requirements. 5.2.2. Recyclable (Clause 7.7) - A packaging can claim to be recyclable if it is made of components that can be sorted out and diverted from the waste stream. Collection and sorting methods need to be available in a reasonable amount to ensure the packaging can be made into a new raw material or product. 5.2.3. Recycled Content (Clause 7.8) - A packaging can only claim to be made of recycled content if it displays clearly the percentage of recycled material. - Only pre-consumer material (diverted from the waste stream during manufacturing process) and post-consumer material (generated by household or by commercial, industrial, and institutional facilities) should be considered. 19
Boozt Group Sustainability Criteria – Beauty 2022 5.2.4. Reusable and refillable (Clause 7.12) - A packaging can claim to be reusable if it has been designed for an extended lifecycle, meaning that it can be used more than one time for the exact same purpose it was conceived. - A packaging can claim to be refillable if the same product can be filled numerous times in the same packaging, without the need of additional processing. - A packaging cannot claim to be reusable or refillable unless there is a collection program available. - Packaging can be reused on two levels: - B2B - using a redistribution system - B2C - using a collection system (collect, clean, reuse) For more information regarding ISO 14021:2016, please download the entire document here Therefore, to enter the Made with Care category and be labelled as “Ecodesigned Packaging”, Boozt requires all products to be compliant with the above definition and/or certified with at least one of the certifications below: - Ecologo - EN 13432 bioplastics - FSC (not mix) cellulosic based packaging - GRS recycled content - OKCompost - PEFC cellulosic based packaging - RCS recycled content Boozt also recommends brands to: - Build an accessible reuse/refill distribution network - Collaborate with competitors to reduce packaging waste or any other waste with initiatives such as #Weareallies by Ren cosmetics - Develop ecodesigned packaging with SPICE Tool - Eliminate harmful chemicals in packaging to avoid unnecessary toxicity. - Eliminate the plastic items that are not necessary. - Ensure transparency, through packaging LCAs. 20
Boozt Group Sustainability Criteria – Beauty 2022 - Establish local reverse logistics to collect reusable packaging and optimize logistics. - Invest in packaging innovation; they are designed to be safely reused, recycled, or composted. - Partner with RePack or other companies with reused solutions for transport packaging. - Reuse packaging to cut costs, optimize operations, and improve brand loyalty and user experience. - Sign the New Plastic Economy Global Commitment by the Ellen MacArthur Foundation. - Take actions (big and small) at all levels of the packaging life cycle. More resources on ecodesigned packaging can be found on: - Community of Ocean Action established by the UN. - EU Ecodesign Directive - EU’s strategy for plastics in a circular economy. - G7 Ocean Plastics Charter. - ISO 14021:2016 Environmental labels and declarations - Self declared environmental claims - ISO 18603:2013 Packaging and the environment - Reuse - New plastic economy by Ellen McArthur. - Reuse, rethinking packaging - report by Ellen McArthur (list of reuse examples). - TerraCycle 5.3. Packaging Classification - Summary Table See table on the following page 21
Boozt Group Sustainability Criteria – Beauty 2022 CURRENTLY SUFFICIENT BEST IN CLASS PACKAGING (Minimum standard for NOT SUFFICIENT NOT ACCEPTED (Preferred) Made with Care) Compostable claims that do not specify: - the type of composting, Compostable NA OKCompost (V) - the compostable part of the NA product - how the customer should act Ecologo Eco designed FSC100% FSC Recycled (V, T) FSC Mix NA PEFC Reycled content claims that Gloabl Recycled Standard Recycled Claim Standard do not specificy clearly the Recycled Content NA (GRS) (RCS) (V, T) percentage of recycled material Recyclable claims made when there is no Recyclable NA NA collection centers available NA conveniently to most purchasers Refillable/Reusable claims that do not guarantee the Refillable / Reusable NA NA packaging will be reused NA or refilled for its original purpose For more information or questions regarding the criterias, as well as other suggestions, please contact madewithcare@boozt.com. 22
Boozt Group Sustainability Criteria – Beauty 2022 6. Social Compliance Paired with the previous criterias regarding ingredient transparency and eco design packaging, the following social criterias need to be respected in order to have a product in the Made with Care category. As a general manner, we require all brands that wish to have cosmetics in the Made with Care category to confirm they have read and agree, through our supplier assessment, to the following internal policies: - Boozt Child Labour Policy - Boozt Code of Cooperation - Boozt Supplier Code of Conduct (based on the UN and ILO standards) It is important for us to ensure that workers throughout the supply chain have the following rights and treatments (this list contains the core labour rights, identified in amfori BSCI Code of Conduct, drawing on ILO, UN, and OECD standards): - The right of freedom of association - Fair remuneration - Occupational health and safety (OHS) - Special Protection for young workers - No bonded labor - Ethical business behavior - No Discrimination - Decent working hours - No Child labour - No precarious employment For further information, please see the original code of conduct here. Other standards that work with workers’ labour conditions often follow the same principles. At Boozt, we accept audit certificates from the following institutions: - Amfori BSCI - SA8000 - SMETA More details on the requirements for auditing (type of audits, audits validity, etc.) are explained in the following sections. 23
Boozt Group Sustainability Criteria – Beauty 2022 To best identify the need for external auditing and the requirements needed, we have decided to follow amfori BSCI “Countries Risk Classification” that rely on the Worldwide Governance Indicators by the World Bank. Each country is assessed on six dimensions of governance and then given a score, ranging between 0 and 100. Countries with a score lower than 60 are considered “Risk countries”, whereas countries scoring higher than 60 are considered “Low risk countries”. As governance shifts overtime, the classification is updated frequently. This means that some countries may shift from one category to another. This is particularly frequent for countries scoring very close to 60, and/or countries that have relatively low political stability. The version used in this document relies on the 2021 version, which is valid from 1st of January 2021 until the next version is available. For further information on the “Country Risk Classification”, please see here. Please refer to it if the manufacturing country you are using is not listed below. 6.1. Risk countries In 2021 risk countries (124) are: - China - … and 123 other countries (including 52 additional high risk countries*) *Countries with a score below 30. Production in those countries should be monitored more frequently, as governance is extremely poor and risks are therefore the highest. For risk countries, Boozt requires audits certifications if you wish to have a product in the Made with Care category. For consistency purposes, countries with a score ranging from 30 to 60 are considered medium risk and require audits every 2 years, whereas countries with a score below 30 are considered high risk and require audits every year. Boozt accepts audits from the following standards: - BSCI by amfori - factory level - Passing Grade: A, B & C. - Failing Grade: D, E & Zero tolerance. - SA8000 by Social Accountability International (SAI) - factory level - Passing Grade: 5, 4 & 3 - Failing Grade: 2 & 1: - SMETA by Sedex - factory level 24
Boozt Group Sustainability Criteria – Beauty 2022 - Preferably 4 pillars audit. - Any other auditing which is in line with APSCA (Association of Professional Social Compliance Auditors), as it represents a high level of credibility and consistency in social compliance audits. In case of non compliance or poor results (failing grade) after the audit has been completed, a corrective action plan (CAP) needs to be presented. If no CAP is presented, the products will not/ no longer be shown in the Made with Care category. Boozt also recommends brands to: - Join Ethical Trade Initiative (ETI) to establish ethical trade, while enhancing brand integrity and building a more resilient supply chain. - Sign a partnership with the Danish Institute for Human Rights. - Visit the manufacturing labs on a regular basis. More resources on human rights can be found on: - International Labour Organization (ILO). - Convention 190 - Violence and harassment convention - Shiftproject.org - providing expertise on the UN Guiding Principles on Business and Human Rights. 6.2. Low Risk countries In 2021 low risk countries (71) are: - EU 27 (Bulgaria*) - except Romania (risk country) - Hong Kong - Japan - Singapore - South Korea - Taiwan - United Kingdom - United States - … and 39 other countries (including 7 additional countries to monitor closely*) *Countries with a score between 60 and 65. Production in those countries should be monitored closely, as they are most likely to become a risk country in 2022 if no improvements are being made. 25
Boozt Group Sustainability Criteria – Beauty 2022 When manufacturing occurs in low risk countries, Boozt does not require external auditing to have a product in the Made with Care category. However, we strongly recommend all brands to look closely at labour conditions in their supply chains by either practicing internal auditing or using external audits. Moreover, we suggest brands keep close ties with their suppliers to be able to better trace their production, understand the challenges suppliers may face, and support suppliers when needed to avoid repercussions on workers. It is crucial to keep in mind that poor labour conditions can still be present in low risk countries. 6.3. Health and Chemical Safety As cosmetics are made in laboratories, we at Boozt believe that it is important to also ensure there is a necessary amount of safety training provided in terms of chemical handling. It is also crucial to ensure the necessary Personal Protective Equipment (PPE) is available and used at all times by all workers. Boozt also recommends brands to: - Ensure all their manufacturers have lab safety guidelines that are well communicated with all workers. More resources on Health and Chemical safety can be found on: - ILO - Exposure to hazardous chemicals at work and resulting health impacts: A global review. 6.4. Fair trade Fair trade is an important and well recognized certification that also proves superior in terms of criterias such as human rights and labour conditions. However, Fair trade does not provide social auditing, that allows us to see potential risks in the supply chain. Therefore, Boozt recognizes Faire Trade as a valid certification, but strongly encourages brands to have audits alongside to ensure compliance with international human rights. 26
Boozt Group Sustainability Criteria – Beauty 2022 6.5. Social Compliance Classification - Summary Table CURRENTLY SUFFICIENT BEST IN CLASS SOCIAL AUDITING (Minimum standard for NOT SUFFICIENT NOT ACCEPTED (Preferred) Made with Care) SA8000 5 4&3 2 1 BSCI A B&C D E & Zero Tolerance SMETA 4 pillars 2 pillars NA No audit For more information or questions regarding the criterias, as well as other suggestions, please contact madewithcare@boozt.com. 27
Boozt Group Sustainability Criteria – Beauty 2022 7. References and Resources 7.1. Ingredient Transparency Sources • Beat the Microbead - Available at https://www.beatthemicrobead.org/ • Beauty Products In Sweden Flanders in Investment - Available at https://www.flandersinvestmentandtrade.com/export/ sites/trade/files/market_studies/2020-Cosmetics%20and%20Branding%20Sweden.pdf • Bioagricert - Available at https://www.bioagricert.org/en/certification/other-certification-services/cosmetic.html • Cambridge Environmental Assessment (CEA) - Available at https://www.cea.adas.co.uk/ • ChemForward - Available at https://www.chemforward.org/about-us • Chemsec’s (International Chemical Secretariat) SIN List - Available at https://sinlist.chemsec.org/ • Convention for the protection of the marine environment - The Helsinki Convention - Available at https://helcom.fi/ about-us/convention/ • Cosmetics Europe - Available at https://Cosmeticseurope.Eu/Cosmetics-industry/Understanding-cosmetics-regulation/ • Cosmetic Ingredient Review (CIR) - Available at https://www.cir-safety.org/ingredients • Cosmos - Available at https://www.cosmos-standard.org/ • European Chemical Agency - Annex XV Restriction Report Proposal For A Restriction - https://echa.europa.eu/ documents/10162/05bd96e3-b969-0a7c-c6d0-441182893720 • European union commission - Ban on animal testing - Available at https://ec.europa.eu/growth/sectors/cosmetics/ animal-testing_en • European union commission on endocrine disruptors - Available at https://ec.europa.eu/environment/chemicals/ endocrine/index_en.htm#:~:text=The%20EU%20has%20introduced%20specific,substances%20of%20very%20 high%20concern. • European union cosmetic directive - Available at https://ec.europa.eu/growth/sectors/cosmetics/legislation_en • EWG Certification - Available at https://www.ewg.org/ewgverified/about-the-mark.php • Good on you - Ingredients in Mineral Makeup You Should Know About - Available at https://goodonyou.eco/ ingredients-mineral-makeup-know/ • Haereticus Environmental Laboratory - Available at https://haereticus-lab.org/protect-land-sea-certification-3/ • International agency for research on cancer (IARC) - Available at https://www.iarc.who.int/ • Kemi - Available at https://www.kemi.se/en/about-the-swedish-chemicals-agency/our-task • Look for the Zero - https://www.beatthemicrobead.org/zero-products/ • MDPI - Cosmetic Ingredients as Emerging Pollutants of Environmental and Health Concern. A Mini-Review - Available at https://www.mdpi.com/2079-9284/4/2/11 • Natrue - Available at https://www.natrue.org/ • Natural Product Association - Available at https://www.npanational.org/ 28
Boozt Group Sustainability Criteria – Beauty 2022 • Nordic swan ecolabel - Available at https://www.nordic-ecolabel.org/product-groups/group/?productGroupCode=090 • Novi - Available at https://www.noviconnect.com/about-us • People for the Ethical Treatment of Animals (PETA) - Available at https://www.peta.org/ • PETA - Animal Derived Ingredients List - Available at https://www.peta.org/living/food/animal-ingredients-list/ • Plastic Soup - https://www.plasticsoupfoundation.org/en/ • Protect Land + Sea - Available at http://haereticus-lab.org/protect-land-sea-certification-3/ • Provenance - Available at https://www.provenance.org/framework • Responsible Beauty Initiative - Available at https://responsiblebeautyinitiative.com/about-us/#mbr • Safer Chemical Ingredient list (SCIL), by US EPA (Environmental Protection Agency) - Available at https://www.epa.gov/ saferchoice/safer-ingredients • Scientific Committee on Consumer Safety (SCCS) - The SCCS notes of guidance for the testing of cosmetic ingredients and their safety evaluation - 11th Revision - Available at https://ec.europa.eu/health/sites/default/files/scientific_ committees/consumer_safety/docs/sccs_o_250.pdf • Skinfo - Available at https://skinfo.se/ • Society Of Cosmetics Scientists - Available at https://www.scs.org.uk/content.aspx?pageid=264 • Soil association - Available at https://www.soilassociation.org/certification/ • Substances of very high concerns (SVHC) - Available at https://echa.europa.eu/candidate-list-table • Sustainable Beauty Coalition - Available at https://britishbeautycouncil.com/sustainable-beauty-coalition/ • The Swedish Cosmetics, Toiletries and Detergents Association (KoHF) - Available at https://www.kohf.se/om-kohf/kohf- in-english • Vegan Action - Available at https://vegan.org/certification/ • VeganOK - Available at https://www.veganok.com/en/about-us/ • Vegan Trademark - Available at https://www.vegansociety.com/the-vegan-trademark • Vegetarian Society - Available at https://vegsoc.org/vegetarian-and-vegan-trademarks-2/ • UNEP - An Assessment Report on Issues of Concern: Chemicals and Waste Issues Posing Risks to Human Health and the Environment - Available at https://wedocs.unep.org/bitstream/handle/20.500.11822/33807/ARIC. pdf?sequence=1&isAllowed=y • WWF - Which Everyday Products Contain Palm Oil? - Available at https://www.worldwildlife.org/pages/which-everyday- products-contain-palm-oil 29
Boozt Group Sustainability Criteria – Beauty 2022 7.2. Ecodesigned packaging Sources • Community of Ocean Action, established by the UN - Available at https://sdgs.un.org/topics/oceans-and-seas/coas • Ecologo - Available at https://www.ul.com/resources/ecologo-certification-program • EN 13432 - Certified Bioplastics - Available at https://docs.european-bioplastics.org/publications/bp/EUBP_BP_ En_13432.pdf • EU Ecodesign Directive - Available athttps://ec.europa.eu/growth/industry/sustainability/product-policy-and- ecodesign_en • EU’s strategy for plastics in a circular economy - Available at https://www.europarc.org/wp-content/ uploads/2018/01/Eu-plastics-strategy-brochure.pdf • FSC - Available at https://fsc.org/en • G7 Ocean Plastics Charter - Available at https://www.consilium.europa.eu/media/40516/charlevoix_oceans_plastic_ charter_en.pdf • GRS - Available at www.globalrecycled.org • ISO 14021:2016 Environmental labels and declarations - Self declared environmental claims - Available at https:// www.iso.org/standard/66652.html • ISO 18603:2013 Packaging and the environment - Reuse - Available at https://www.iso.org/standard/55871.html • New plastic economy, by Ellen McArthur - Available at https://plastics.ellenmacarthurfoundation.org/breaking-the- plastic-wave-perspective?gclid=CjwKCAjwxo6IBhBKEiwAXSYBsxVSa95mGCqp9VJMreMgOhCStf2FnfVbGt2C0saL 7V9cb4AshJEbCBoCYvcQAvD_BwE OKCompost - Available at https://www.tuv-at.be/green-marks/certifications/ok-compost-seedling/ • PEFC - Available at www.pefc.org • RCS - Available at www.recycledclaim.org • Ren Clean Skincare - #WeAreAllies - Available at https://usa.renskincare.com/blogs/clean-thoughts/weareallies • RePack - Available at https://www.repack.com/ • Reuse, rethinking packaging - report by Ellen McArthur - Available at https://www.ellenmacarthurfoundation.org/ publications/reuse#:~:text=Based%20on%20an%20evaluation%20of,well%20as%20typical%20implementation%20 challenges. • SPICE tool - Available at https://open-spice.com/tool/#:~:text=An%20ecodesign%20tool%20to%20drive,to%20 develop%20more%20resilient%20packaging. • TerraCycle - Available at https://www.terracycle.com/en-GB/ 30
Boozt Group Sustainability Criteria – Beauty 2022 7.3. Social Compliance Sources • Amfori BSCI - Available at https://www.amfori.org/ • Amfori BSCI - Code of Conduct - Available at https://www.amfori.org/content/amfori-bsci-code-conduct- • Association of Professional Social Compliance Auditors (APSCA) - Available at https://www.theapsca.org/ • Boozt Supplier Code of Conduct - Available at https://www.booztgroup.com/policies • Countries risk classification amfori BSCI 2021 - Available at https://www.amfori.org/sites/default/files/amfori-2020-11- 12-Country-Risk-Classification-2021_0.pdf • Danish Institute for Human Rights - Available at https://www.humanrights.dk/ • Ethical Trade Initiative (ETI) - Available at https://www.ethicaltrade.org/ • Fair Labor Association - Available at https://www.fairlabor.org/ • Fair Trade - Available at https://www.fairtrade.net/ • International Labour Organization (ILO) - Available at https://www.ilo.org/global/lang--en/index.htm • International Labour Organization - Exposure to hazardous chemicals at work and resulting health impacts: A global review - Available athttps://www.ilo.org/global/topics/safety-and-health-at-work/resources-library/publications/ WCMS_790104/lang--en/index.htm • SA8000 - Available at http://www.saasaccreditation.org/certification • Shift - Available at https://shiftproject.org/ • SMETA - Available at https://www.sedex.com/our-services/smeta-audit/ For more information or questions regarding the criterias, as well as other suggestions, please contact madewithcare@boozt.com. 31
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