EU’s Green Deal complicates the future of fragrance industry, IFRA study finds
23 Jun 2022 --- The fragrance industry is facing a critical juncture as the European (EU) Green Deal’s Chemical Strategy for Sustainability (CSS) requires substituting chemicals and reformulating products. This may pose an annual €2 billion (US$2.1 billion) industry loss, flags the association.
A study was conducted by Ricardo Energy & Environment, on behalf of The International Fragrance Association (IFRA). The research focuses on the proposals made by the European Union’s Chemical Strategy for Sustainability (CSS).
These proposals include an extension of the General Approach to Risk Management (GRA) which does not take into account the narrow range of substances fragrances have to achieve their function.
For instance, adding in hazard classes to the EU Classification, Labelling and Packaging Regulation and a ‘mixture assessment factor’ for assessing chemicals, complicates the use of certain chemicals in fragrances.
The independent researcher suggests that more than a quarter of the industry’s portfolio in turnover terms would be affected in some way by the proposed changes. Consumers are likely to witness a reduction in product choice, which will then in turn influence their mental and physical well-being, the report says.
What is the CSS?
The EU’s Green Deal, launched in December 2019, aims to reduce the toxicity within the environment. The CSS was presented on October 14 2020 and provides a detailed strategy for how this vision can be implemented. The CSS promises to remove dangerous chemicals from everyday products, such as toys and food contact materials and packaging, with a specific focus on endocrine-disrupting chemicals.
Endocrines are glands that emit hormones directly into the circulatory system. When this process is disturbed and the body does not respond to hormones the way it is supposed to, severe health issues may develop.
Considering this an important point of avoidance, the CSS put forward 56 actions to achieve a non-toxic environment.
Consequences and concerns
IFRA president, Martini Bianchi expresses her support for the overall objectives of the EU Green Deal after the study’s findings were made known.
“IFRA is ready to contribute positively to the aims of the CSS. But the transition can only be successful if it promotes [environmentally] sustainable growth, covering social, economic, environmental and cultural dimensions.”
She adds that the study highlights the socio-economic challenges that the sustainability of the fragrance sector will face. Small businesses, which make up half of the companies in the European fragrance industry, will be most influenced.
“At a time of uncertainty, we should be wary of the unintended consequences of policies and how they may negatively impact innovation, employment, and growth,” she continues.
“We want to make sure these important sustainability policies have a positive impact in these areas, as well as enhancing consumer choice, encouraging investment, and reinforcing fragrance’s place as a key part of Europe’s cultural heritage, as well as its future.”
The future of fragrance
Apart from the impact these programs will have on the fragrance industry, the study also highlights the ripple effect it will have on other sectors of the industry. According to the findings, the need to substitute ingredients and reformulate products will influence the suppliers of raw materials, the manufacturers, consumer goods companies and retailers.
IFRA says it intends on presenting the results of the study to the European decision-makers as the progress CSS makes increases.
“We believe that by working together to address some of our concerns about the proposed rules, and by giving more time to develop and modify portfolios, we can achieve an outcome that gives Europeans the high level of consumer and environmental protection they deserve, and the choice and innovative products they desire,” Hans Holger Gliewe, IFRA chairman, says.
“We’ve already shown willingness to change. We have embarked on a green transmission and green chemistry is an emerging practice in our industry. It will contribute towards establishing products that are safe and sustainable by design,” he concludes.
The fragrance industry is keen to contribute to the aims of CSS that support value chains, nurture and promote innovation, and have clear and sensible implementation procedures.
The scent of Europe
Created in partnership with the International Society of Perfumer-Creators, IFRA developed a demo fragrance called the Green Deal. IFRA says it serves as a symbol for the fragrance industry in Europe and its contributed value to the continent in all sectors: from sourcing raw materials to retail.
The demo fragrance features ingredients derived from both natural raw materials as well as synthetic elements, found in 12 different countries in the EU. This is said to serve as an indication of the complementary approach sustainability requirements and value for money should reflect.
Edited by Mieke Meintjes
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