Household and personal care products are central to our daily lives. This sector’s products, from shampoos and beauty products to detergents and disinfectants, have significantly enhanced well-being and living standards by promoting hygiene, convenience, and aesthetic appeal in daily routines and environments. The sector generates approximately $700 billion in annual revenues, which comes at a cost to nature.

Regulations requiring companies to disclose nature-related information present a unique opportunity for businesses in the household and personal care products sector to proactively manage nature-related risks, build a sustainable and resilient supply chain, and benefit from early commercial opportunities in the transition.

Commitment to sustainability in the household and personal care sector

Businesses in the household and personal care products sector have started committing to take action on sustainability issues. However, while recognizing these efforts, more needs to be done. The industry still contributes to drivers of nature loss, such as land conversion, deforestation, and plastic pollution. Its upstream production uses plant-based feedstocks, (including palm oil, coconut oil, aloe vera, and rapeseed,) and other natural raw materials like iron oxide and mica. Meanwhile, manufacturing and downstream use of products consume significant volumes of water, while improper management may lead to plastic pollution on land, water, and oceans from packaging.

Key actions for a nature-positive household and personal care products sector

Improve water stewardship throughout the value chain

To protect nature and mitigate the increasing risks associated with declining water availability and quality, it is essential to reduce water consumption and pollution. Key strategies for enhancing the stewardship of surface water and groundwater involve assessing and prioritizing water-related material risks, conducting comprehensive water audits, and upgrading direct manufacturing operations to incorporate wastewater recycling. Additionally, engaging with customers to promote reduced downstream water use and pollution, as well as restoring water basins, are critical actions that can contribute to sustainable water management and environmental protection.

Source responsibly and use sustainable bio-based materials

To source responsibly and replace feedstocks with sustainable bio-based or other renewable materials, it is essential to ensure that procurement criteria and supplier assessments address nature-related priorities such as deforestation-free commitments, using certified raw materials, and favoring raw materials that are not endangered or overexploited. Supporting suppliers and farmers and working with local communities to promote sustainable and regenerative agriculture and other practices that support biodiversity is also crucial. Companies should explore shifting to bio-based or other renewable feedstocks to help lower dependence on fossil fuels while reducing ecotoxicity and potentially synthetic allergens. To address trade-offs, an assessment of the overall environmental and social impact of bio-based versus petrochemical feedstocks is necessary, taking a balanced approach to net-zero emissions and nature-positive solutions.

Educate customers on product use and disposal impacts

To influence customer behavior on product use and disposal, companies should step up business-to-business (B2B) and business-to-consumer (B2C) engagement to take advantage of growing consumer interest in nature-positive solutions. Key levers include providing greater transparency to allow consumers to make informed decisions, producing educational information on the most sustainable use of a product (for example, volume of water or size of the dose required), contributing to public engagements to help shift behaviors and beliefs to reduce unnecessary consumption and downstream pollution, and working with downstream business partners (for companies that are producers in the B2B market).

Invest in responsible practices for nature conservation

To support nature conservation and restoration, companies can contribute through improved practices along supply chains, directly launching corporate projects or joining global initiatives such as clean-up efforts or innovative nature financing mechanisms like payment for ecosystem services or nature restoration funds. Partnerships on conservation projects with environmental NGOs, governmental agencies, and local communities are crucial to putting environmental and social safeguards in place and ensuring the effectiveness of such initiatives.

Expand circularity with sustainable products and packaging and policy advocacy

Companies should incorporate practices to expand circularity by upgrading manufacturing processes to recycle water and energy, developing innovative packaging designs and refillable products, and facilitating efficient recycling and waste management. Companies can tap into new markets by increasing investment in the research and development of nature-conscious products, such as waterless formulations or no-rinse products. Leading companies are encouraged to engage with policymakers in progressive collective action. With ongoing negotiations on a UN treaty on plastic pollution, companies can influence, pave the way, and get ahead of forthcoming regulation.

Navigating nature-related risks across industries

We partnered with the World Economic Forum to release a series of reports detailing the material impacts and dependencies on nature of 12 global industries, including the chemical industry, household and personal care products, and concrete and cement. Developed in collaboration with Business For Nature and the World Business Council For Sustainable Development, these reports outline priority actions within sectors to avoid and reduce negative impacts, mitigate nature-related risks, and unlock opportunities across value chains.