The vision of the European industry on cosmetics reputation and social value

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1 The vision of the European industry on cosmetics reputation and social value Bologna 17 March 2017

2 Cosmetics Europe Corporate Members

3 National Associations Austria -FCIO Belgium -DETIC Bulgaria - BNAEOPC Czech Republic - CSZV Denmark -SPT Estonia - FECI Finland - TY France - FEBEA Germany - IKW Greece - PSVAK Hungary - KOZMOS Ireland - ICDA Italy COSMETICA ITALIA Latvia - LAKIFA Lithuania - LIKOCHEMA Luxembourg - DETIC Netherlands - NCV Norway KLF Poland - PACHCP Poland - PUCI Portugal - AIC Romania - RUCODEM Russia - APCoHM Russia - PCAR Serbia - KOZMODET Slovakia -SZZV Slovenia - KPC Spain -STANPA Sweden - KTF Switzerland - SKW Turkey - KTSD United Kingdom -CTPA

4 Cosmetics is a key European industry

5

6 SMEs are key drivers of innovation and economic growth in the industry.

7 The industry supports millions of jobs throughout the European value chain.

8 The industry is a science-driven and highly innovative sector.

9 The industry is about taking care of people.

10 Surveying the EU Scene We have recently seen a number of key developments: Aspects of animal testing ban before the EU Court; Cosmetics drawn into the debate around the regulation of endocrine modulating substances; A report from the European Commission on Cosmetic claims; Legislative initiatives in EU Member States on Microplastics; An EU DG Competition enquiry into e-commerce, touching on selective distribution in our sector; A new EU Commission approach to risk/hazard for some substances [CMRs]; Continued pressure on ingredients;

11 How are we doing? Animal Testing decision upheld industry understanding of framework for secondary use substances; Report on Claims found the self-regulatory approach in EU to be effective; New approach to CMR substances strengthens risk based approaches over hazard based approaches; CE launches pro-active product preservation strategy.

12 Strategic Priorities for Cosmetics Europe Promote proportionate regulation risk based, not hazard based approach; Defend the ingredients palette; Promote International convergence; Protect omnichannel distribution environment; Defend self regulation in advertising; Encourage validation and acceptance of alternative methods; Promote Sustainability; Enhance trust and reputation.

13 Imagine a world without cosmetics.. Our industry is too often perceived as futile and superficial; This can make our industry an easy target for disproportionate restriction; There is however growing evidence that cosmetics play an important role in people s lives; Cosmetics do contribute to well being in the broadest sense; In 2017 Cosmetics will undertakes a consumer perception study to investigate how consumers perceive and assess the benefits of cosmetics; The industry probably needs to be more proactive on the issue of cosmetics benefits.

14 Rising to reputational challenges.. However, consumers have the right to expect the highest standards from our industry when it comes to safety and sustainability; Because of the nature of beauty and hygiene, consumers will only accept very limited trade offs between ethics and products [this is not the same for many other industries]; So the industry cannot afford to be complacent in the area; The success of the voluntary measures on microbeads, the continuing heavy investment in finding alternatives to animal testing, and the effectiveness of self regulation in the claims area show the way forward.

15 Looking Forward Our industry is growing in Europe economic outlook; - we can be optimistic about the It is vital that we maintain and develop a regulatory framework that both protects and consumers and supports innovation, and therefore growth; Our industry makes a huge contribution both to the economy and to people s lives - we need to talk about this more. We cannot be complacent in the face of the reputational challenges which, to an extent, are inherent in the nature of our industry.

16 Thank You

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