Consumption- Home and Personal Care
This is a methodological document aimed at clarifying how Mirova takes into account sustainable development issues in the framework of the environmental, social and governance analysis of each sub-sector of activity.
For companies in these sectors, there is a growing demand from consumers for products they know to be safe and sustainable. As such, there are opportunities for companies to respond to this demand.
However, they face certain barriers.
One is that there is no widely-accepted definition of what makes a product sustainable. Sustainable certifications have increasingly been helpful in directing companies where to focus their investments and efforts. Additionally, these certifications can have a positive effect on consumer choice. Another aspect of opportunity is through inclusive business models, i.e. providing products to cater to the basic needs in health and hygiene of low income populations. More than affordability, it also includes increasing awareness. In terms of risk, product safety is not only a social risk but also poses a significant financial risk as consumers readily change their preferences when certain ingredients are no longer deemed safe. Furthermore, the list of “bad” ingredients enlarges faster than the list of “better” ingredients that they could be substituted with. There’s also been an increasing awareness towards the use of plastic packaging in their products and should thus be addressed by the company. Other risks are linked to water and waste management and the sustainable sourcing of raw materials.
Sectors: Personal products, household products