The European Union on Wednesday gave the green light to the Nature Restoration Act. This new regulation approved by the European body aims to restore the marine ecosystem by at least 20% by 2030 and to recover it completely by 2050. This law has been approved with the aim of mitigating the effects of climate change and natural disasters, which are becoming increasingly frequent.
But how does this new law affect the cosmetics industry and the cosmetics sector?
One of the main areas that will be impacted by this recent directive will be the sourcing of raw materials. Companies involved in the development of ingredients and actives will have to comply with sustainability requirements, which are likely to increase the criteria and become stricter in terms of sourcing to ensure the protection of biodiversity in the sourcing areas.
Adjustments in the supply chain, as this new law may require greater transparency from companies in the sector in terms of the traceability of their supply chains, as well as regular audits of supply chains.
In terms of product formulation, companies specialising in the production and manufacture of cosmetic ingredients and active ingredients may be forced to use ingredients with a lower impact on the environment in their formulas, and this may lead to a move towards innovation to develop new substances that comply with the standards that follow the line of this directive.
On the other hand, the regulation, which enters into force after being published in the Official Journal of the European Union, will result in more bureaucracy for companies. Industry could face stricter documentation and reporting requirements to ensure compliance with the new environmental standards. In addition to the non-compliance penalties that the EU will impose on non-compliant entities, which may affect their financial situation. Your financial situation may also be affected by the costs that may initially be involved in adapting to the new regulations. Some companies may be forced to invest in new technologies, product reformulation or supplier changes.
The law was proposed in June 2022 under the strategic framework of restoring biodevirsity by 2030, which is part of the industry-recognised Green Deal.