Thought Leadership

The Future of Trust and Certification in the Organic Beauty and Wellbeing Industry: Insights from Industry Leaders

Published on
October 16, 2024
The Provenance Team

As the organic beauty and wellbeing industry continues to grow, credible certification systems like COSMOS Organic and clear regulatory frameworks like the EU Green Claims Directive will play a crucial role in ensuring that both businesses and consumers can navigate the complexities of sustainability with confidence.

Read this panel summary to understand:

  • How the EU Green Claims Directive will reshape the UK beauty industry
  • How certification is key to unlocking consumer trust and sustainable investment
  • How organic certification can drive commercial growth

As sustainability and transparency increasingly become a topic of conversation in the beauty industry, the need for credible certification systems has never been more vital. Provenance, in collaboration with Soil Association Certification, recently hosted a roundtable discussion with key industry leaders to address the evolving landscape of organic certification and the challenges surrounding green claims regulations. This timely conversation brought attention to the growing regulatory frameworks, such as the EU Green Claims Directive, and the ongoing efforts to bridge the gap between consumer trust, certification, and corporate sustainability.

Here are some of the key themes that emerged from the discussion, alongside insights from the expert panel.

How Will the EU Green Claims Directive Impact Business?

A major focus of the discussion was the anticipated impact of the EU Green Claims Directive on businesses, particularly those operating in the UK post-Brexit. Many brands are already feeling the ripple effects of new EU regulations, despite being outside the European Union. For some, the challenge lies in the UK's lack of binding legislation around green claims, leaving brands navigating a more ambiguous regulatory landscape.

Abi Weed, co-founder of Odylique, praised the EU Green Claims Directive as “excellent and long overdue,” pointing out that larger retailers will likely experience significant changes and demands will impact brands. In contrast, Jessi Baker, Founder of Provenance, the need for the UK to adopt similarly stringent regulations: "It’s inevitable that most brands will have to comply with EU regulations, and we should seize the opportunity to encourage similar action in the UK."

Several attendees echoed concerns about the UK’s slower adoption of robust green claims regulation. Richard Mason, Head of ESG at Holland & Barrett, characterised the current environment as a “wild west,” reflecting the challenges faced by businesses in navigating greenwashing accusations without strong regulatory support.

Barriers to Certification: Cost, Complexity, and Consumer Understanding

A prominent issue raised was the barriers to certification, including cost, complexity, and consumer understanding. Many smaller brands struggle to justify the investment in organic and/ or natural certification, especially when the benefits are unclear to consumers. Penny Hamilton, Head of Brand & Product at Westlab, shared insights into recent consumer research when it comes to claims such as ‘Cruelty Free’: "Only a very small percentage of consumers cared about where certification came from - whether that’s Leaping Bunny, PETA, or another certification."

However Paige Tracey of Soil Association Certification had a different insight from one of Soil Association’s leading COSMOS Organic certified skin care brands. In a survey with their consumers, 94% of respondents said the COSMOS Organic certification of the brand was important to them, coming out as the second most important certification after Cruelty Free. In contrast, B Corp certification was noted as important by 74% of consumers, and Vegan certifications by only 61%. In Tracey’s view, there is a captive audience for COSMOS Organic or Natural certification, and an exciting opportunity particularly to be unlocked when the certifications are explained to consumers in a digestible way.

Laura Rudoe, Founder of Evolve, emphasised that while certifications like COSMOS Organic address a range of concerns, they are not widely understood by consumers: "Consumers are busy, they need things to be simple - there’s a gap in understanding between the labels they see and the actual benefits those certifications offer." She noted that Evolve’s consumers were primarily shopping with the brand due to a desire for “cleaner” formulations and avoiding certain ingredients perceived as “toxic”, but they were not making the connection to how COSMOS can provide a guarantee on this. 

The lack of consumer clarity also presents a challenge for brands in retailer relationships, as it was felt that retailers may only accept certifications as proof of a claim instead of evidence. Thomas Laird, Owner & Managing Director of Salt of the Earth, highlighted one of the reasons the brand adopted COSMOS Natural certification, despite their products already being 100% natural, was in response to a retailer who wanted certification as a mark of proof.  "Stockists don’t have the time to research whether a brand is certified or not. It’s easier to be certified."

Efficiency and Opportunities Through Certification

Despite these challenges, many attendees saw significant efficiencies and commercial opportunities in certification. Particularly as businesses prepare for more stringent green claims regulations, brands will increasingly view certification as a commercial asset rather than simply a compliance burden.

For example, certified brands can leverage their credentials for competitive advantage. Holly Thallon Steenson, Managing Director at Viridian Nutrition, pointed out the potential for media campaigns that clearly link COSMOS Organic to broader environmental and social issues: “A media campaign could make COSMOS synonymous with climate action, educating consumers about the deeper benefits of organic products, such as carbon sequestration in organic soil."

Brands like DAME are already capitalising on certification to gain consumer trust and visibility. Alec Mills, Co-Founder of DAME, emphasised the need for clear, accessible information on packaging: "There’s a missing link between data and greenwashing. We need to simplify the communication of certifications so consumers can easily verify claims."

One of the more forward-looking topics covered was how certification ties into corporate sustainability regulations. The Corporate Sustainability Reporting Directive (CSRD) is set to transform how businesses report on sustainability, making certification a crucial part of that process. Attendees agreed that certification could help brands measure their impact more effectively, aligning with wider corporate sustainability goals.

Maximising the Value of Certification in Commerce and Consumer Education

While certification adds value, the panellists agreed that it also requires effective consumer education. Brands need to better communicate what certification means in terms of product quality, environmental impact, and ethical practices. Paige Tracey, Partnerships Manager at Soil Association Certification, noted that Soil Association is already working on campaigns to educate consumers: "It’s not just about what goes into a product, but about what’s kept out—no controversial synthetic chemicals, no unethical sourcing."

Several panellists suggested that retailer-driven media campaigns could help raise awareness. Stephanie Matson Head of Marketing at Dr Organic, noted that a collaborative approach between certified brands could maximise the impact: "By working together, brands can launch stronger campaigns to promote the benefits of COSMOS certification, helping consumers understand why it matters."

Ultimately, there’s a clear need for a simplified, more visible certification system that resonates with both retailers and consumers. This would not only build consumer trust but also support retailers in making better purchasing decisions.

What’s next?

The roundtable discussion brought forward several actionable insights for businesses navigating organic certification and green claims regulation:

  1. EU Green Claims Directive: Brands should prepare for compliance, regardless of Brexit, as these regulations will influence the entire market, especially for those selling in Europe.
  2. Education and Communication: Simplify the message of certification for consumers, highlighting the benefits in terms of environmental impact and product safety.
  3. Collaboration for Awareness: Collective media campaigns between brands can help elevate the recognition of certification labels, such as COSMOS Organic, among consumers.

The Provenance Team

Provenance is setting a new global standard for consumer sustainability, by validating and amplifying sustainability credentials throughout the customer journey. Provenance’s platform enables businesses to be transparent about their impact, so that they can reduce the risk of greenwashing, realise their sustainability ambitions and future-proof their market share. 200+ leading CPG businesses are using Provenance to communicate their sustainability credentials, including Cult Beauty, The Ordinary, The Nue Co, Shiseido, BELU, Arla and Napolina.

The Provenance Team

Provenance powers sustainability claims you can trust. The global leader in sustainability marketing technology, Provenance helps brands and retailers share credible, compelling and fact-checked social and environmental impact information at the point of sale. Provenance’s technology is already increasing conversion rates, brand value and market share for customers including Cult Beauty, Douglas, GANNI, Napolina, Arla and Unilever

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