Ecocert Natural & Organic cosmetics certification

1. Ecocert Natural & Organic cosmetics certification Jorge Larrañaga, PhD Ecocert Japan

2. INDEX • Overview of Ecocert • Natural and Organic Cosmetic Market • The Ecocert Cosmetic Standards • The Certification Process • Cosmos Standard

3. 1. Overview of Ecocert 1.1 Description of Ecocert • COMPANY BACKGROUND • Ecocert is a pioneering company founded in 1991 on strong ethical values, and have offered certification services for 18 years • Ecocert is a control and certification organization, whose activities are governed accordingly by the public authorities and legislation • Ecocert is notably accredited by USDA for NOP certification and by MAFF for JAS certification • Since 2000, Ecocert extended its certification scope to non food products (cosmetics, textiles…) • Ecocert carries out inspections and certification services in 85 countries on all continents • Ecocert has c.450 employees in the world By building the support of players and consumers alike, ECOCERT has become a leading reference in organic certification around the world

4. 1. Overview of Ecocert 1.1 Description of Ecocert • Organic Farming • Eco-Products: • Natural and Organic cosmetics • Organic Textiles • Natural Detergents • Organic Home Perfumes • Fair Trade • Certification of system : ISO 9000, ISO 14001, ISO 22000

6. 1. Overview of Ecocert 1.2 Focus on the Cosmetic Certification Division Ecocert Cosmetic Certification Division • Ecocert is the world leader in cosmetics certification • Ecocert pioneered in organic and natural cosmetics standards writing, setting up standards in partnership with professionals, and has now become the reference in the industry • Ecocert has earned a worldwide recognition from customers: the Ecocert seal is a true guarantee and a strong commercial tool • Over 10 000 products certified worldwide • 97% with the Ecocert Organic Cosmetic label • 3% with Ecocert Natural Cosmetic label • More than 1300 companies certified

7. 1. Overview of Ecocert 1.2 Focus on the Cosmetic Certification Division Competences • Technical knowledge • Certification committee • Technical follow up committee • International presence • Inspectors in 85 countries • Offices around the world • Wide range of products1: • Face care Creams • Body care products: milks et massage oils • Foaming products (shampoos, shower gel and bath) • Soaps • Make up • Parfums • NOTE • Some products are still difficult to create = conditioners, nail care products….

8. 2. Natural and Organic Cosmetics Market 2.1 A Booming Market: Focus on the European Market Market Dynamics Cosmetics Sales - 2007 • €770 m of sales of organic cosmetics in Europe in 2007 for a total conventional market of €37 bn (i.e. : 2,1% market share) • Top countries are France, Germany, Italy, Spain, etc. • Forecasted annual growth rate of 40% in organic cosmetics vs. 5% in conventional cosmetics • Organic cosmetics will reach a 10% of the total cosmetic market in 2010 which estimated revenues of 2 billion euros. Asian market for natural and organic personal care continues to grow at a healthy rate of 7-12%

9. 2. Natural and Organic Cosmetics Market 2.2 Ecocert: A Central Role in This Booming Market Ecocert Key Figures1 # Companies Certified by Ecocert • Certification in 40 countries: France, Germany, USA, Italy, Spain, Switzerland, Brazil, Australia, Japan, Korea, China, Malaysia, etc. • Over 10 000 products • Over 1500 certified companies • Expected increase of 25% of the number of certified companies in 2010

10. 2. Natural and Organic Cosmetics Market 2.3 Market trends

11. 2. Natural and Organic Cosmetics Market 2.4 Main certified companies Stella McCartney

12. 2. Natural and Organic Cosmetics Market 2.5 Recent global certified companies

13. 2. Natural and Organic Cosmetics Market 2.6 Main Certified Korean Companies

14. 2. Natural and Organic Cosmetics Market 2.7 Main certified raw materials suppliers Plantes Aromatiques du Diois Development of Organic Cultures YR Development strategies that aim to secure organic raw materials supplies

15. 2. Natural and Organic Cosmetics Market 2.8 Organic standards for cosmetics in the world • Standards are the most widely adopted in Europe where almost two-thirds of all natural and organic cosmetic products are certified. • Market value of certified products is estimated to exceed € 1 billion this year • Almost all (98 percent) of consumers feel the term “natural” on a beauty product is meaningless or gives them little confidence and trust – with 72 percent of consumers stating the use of the term “natural” means nothing to them. • 77 percent of consumers feel third-party “certified organic” logos on a product gives them good to complete trust and confidence in the product, and 68 percent of consumers actively look for a third-party certification logo on beauty products.

16. 2. Natural and Organic Cosmetics Market 2.8 Organic standards for cosmetics in the world 100% Organic green tea - Real certified organic green tea? -% of organic ingredient in the final formula? - Harmful chemicals used for green tea extraction? - Chemical preservatives?

18. 3. The Ecocert Cosmetic Standards 3.1 The Creation of the Ecocert Standards Origin of the Standards • Difficulty for consumers to distinguish real natural cosmetics products • =>By developing its Natural and Organic Cosmetic standards, Ecocert defined a requirement level that is superior to the conventional regulation governing cosmetics, thereby guaranteeing the genuine practice of environmental respect throughout the production line, respect for the consumer and the promotion of natural substances of a superior ecological quality • Ecocert Standards have been validated by the sector’s actors and the DGCCRF (French organism against frauds) and have been approved by the French Ministry of Industry • In France, certification can be issued only by a certification body that has been approved by the authorities The ECOCERT label is recognized by consumers around the world, who, through their confidence in us, are helping to uphold a symbol of professionalism, consistency and commitment.

19. 3. The Ecocert Cosmetic Standards 3.1 The Creation of the Ecocert Standards A tool for professional use : Ecocert Standards • To elaborate these Standards, ECOCERT has: • Relied on its competences in Organic Agriculture: respect of our environment, consumers, and traceability • Relied on a group of professionals • Looked for impartiality by inducing independent scientific expertise • Looked for quality by being selective, but not restrictive • => Progressive System according to scientific progress, and regulations modifications

20. 3. The Ecocert Cosmetic Standards 3.2 Description of the Ecocert Standards Requirements for the Product • List of compliant ingredients • Checking of manufacturing processes • Minimum % of natural origin ingredient and of organic ingredient • No irradiation, no GMO • Packaging (recyclable material) • Labeling (Certification mentions)

21. 3. The Ecocert Cosmetic Standards 3.2 Description of the Ecocert Standards Synthetic ingredients Natural Origin ingredients Physical process Vegetal ingredients Vegetal origin Chemical process Mineral origin Ingredients from natural origin Marin origin Animal production

22. 3. The Ecocert Cosmetic Standards 3.2 Description of the Ecocert Standards Two Labels 5% minimum of organic ingredients 50% of plant ingredients are certified organic 10% minimum of organic ingredients 95% of plant ingredients are certified organic For both Labels: 95% of the total ingredients are of natural origin

23. 3. The Ecocert Cosmetic Standards 3.2 Description of the Ecocert Standards Diagram of the Required Proportions – Organic Cosmetic Certification

24. 3. The Ecocert Cosmetic Standards 3.2 Description of the Ecocert Standards Example of an Emulsion • Requirements: • No emulsifiers like PEG • No mineral oils, or silicones • No gelling agent like carbomer • No preservatives like Phenoxyethanol, parabens, DMDM,… • No synthetic perfumes • No synthetic dies • Active : No solvents like Propylene Glycol • Solutions: • Emulsifier : Sucro Ester, Polyglycerol Ester,… • Emollient : vegetable oil, or esters of natural origin (C8C10TG) • Gelling agent : Xanthane, Starch, Cellulose • Preservative : positive list (sorbic acid and its salts, benzylic alcohol /DHA…) • Perfume : e.o. or fractions from e.o. • Natural Dyes • Active : no solvents, no unauthorized preservatives

25. 3. The Ecocert Cosmetic Standards 3.3 The Choice of Ingredients Raw Materials Coming From Organic Farming • Certified according to the norm EC 2092/91, NOP, JAS or cosmetic standards ?

26. 3. The Ecocert Cosmetic Standards 3.3 The Choice of Ingredients Raw Materials Coming From Organic Farming • Type of ingredients : • Aqueous extracts (including hydrolats) • Dry extracts • Hydro glycerin extracts • Alcoholic extracts • Essential oils • Extracts for perfumes • Oiled macerate • Vegetable oils, butters, waxes…

27. 3. The Ecocert Cosmetic Standards 3.3 The Choice of Ingredients Ingredients Verification • Meticulous referencing job of raw materials • =>Ecocert questionnaire to be filled by the supplier, and to be validated by Ecocert • Ecocert offers to suppliers the verification of theirs products’ compliance with the Standards • The list of authorized products appears on Ecocert website • www.ecocert.com • => In this way the meticulous referencing job of raw materials for the formulators is much easier

28. 3. The Ecocert Cosmetic Standards 3.4 Requirements Formulas Validation Process • Gather all elements on raw materials (MSDS, TDS, certificates, attestations, and questionnaires) • Validate the raw materials if they are not in the authorized ingredients list • Validate the % of natural ingredients, and the % of organic to be written on the label • Specific format with integrated calculation of %

29. 3. The Ecocert Cosmetic Standards 3.4 Requirements Production Requirement • Raw material reception • Transport, storing • Manufacturing process, hygiene, and cleaning procedure • Energy, waste, discharge management (selective sorting, and recycling) • Global quality system evaluation (traceability)

30. 3. The Ecocert Cosmetic Standards 3.4 Requirements Transparency Towards the Consumer: Labeling Rules • Natural and Organic Cosmetic certified by ECOCERT Greenlife according to ECOCERT Standard available at • http://cosmetics.ecocert.com • ECOCERT logo : • Asterisk in the INCI list: • (*) ingredients coming from Organic Agriculture • Translation in common language of the INCI list • Reference to the certified characteristics: % of natural origin ingredients, and % of organic ingredients

31. 3. The Ecocert Cosmetic Standards 3.4 Requirements

32. 3. The Ecocert Cosmetic Standards 3.4 Requirements Certificate

33. 4. The Certification Process 4.1 Services • Finished Products certification • 3-4 months • Starting from 5,000,000 won • Factory and/or office Audit • Raw materials registry • 1 month • Starting from 650,000 won

34. 4. The Certification Process 4.2 Brand owners and distributors

35. 4. The Certification Process 4.3 Subcontracted manufacturers OEM Ecocert Licensed OEM

36. 4. The Certification Process 4.4 Importers Korea Foreign Country Korean label

37. 5. Cosmos Standard 5.1 Ecocert, a leading organization working in EU regulations • COSMetics Organic and natural Standard • European Cosmetics Standards Working Group: • BDIH from Germany • BIOFORUM from Belgium • COSMEBIO & ECOCERT from France • ICEA from Italy • SOIL ASSOCIATION from UK Standard available on website : www.cosmos-standard.org

38. 5. Cosmos Standard 5.2 Introduction to the Standard • Initiative started at Biofach in 2002 • A group with common objectives: • Transparency for consumers • Protection of man and environment • Set-up of a European standard to define rules and minimum requirements for organic and natural cosmetics • Consensus after 6 years: COSMOS-standard

39. 5. Cosmos Standard 5.2 Introduction to the Standard • Principle of prevention and safety at all levels of the chain from production of raw materials to distribution of finished products • Promoting the use of products from organic agriculture and respecting biodiversity • Using natural resources responsibly, and respecting the environment • Using processing and manufacturing that are clean and respectful of human health and environment • Integrating and developing the concept of "Green Chemistry" instead of using petrochemicals • ·; • ·; • ·;

40. 5. Cosmos Standard 5.2 Introduction to the Standard • Transition period of three years • Until 1st September 2012 operators may continue to manufacture products according to the standards of their organization.

41. ECOCERT JAPAN Jorge Larrañaga, PhD jorge.larranaga@ecocert.com +81 3 5413 7330