Credo Beauty CEO Dawn Dobras talked to Afterpay about the importance of sustainability, responsible business, and what other retailers can do to help the environment.
Catch Part I of our interview with Dobras here.
AP: We celebrate Earth Day this month, and many consumers will be reflecting on the environmental impact they make as individuals and as shoppers. Tell us more about Credo’s approach to sustainability: what does it mean for your business, and what do your consumers expect of Credo as a sustainable company?
DD: We celebrate Earth Day this month, and many consumers will be reflecting on the environmental impact they make as individuals and as shoppers.
Since Credo has defined "clean beauty" as the intersection of ingredient safety, sourcing, sustainability and ethics, all with a focus on greater transparency, sustainability isn't an afterthought. It is core to our mission and a key piece of the Credo Clean Standard. Credo prohibits dozens of ingredients because of their unsustainable environmental impacts, and we are about to launch a huge new sustainable packaging standard. We've been partnering with TerraCycle since 2017, collecting over 30,000 lbs. of hard-to-recycle beauty products that will be turned into something new rather than landfilled.
Many of our customers are directly asking for this leadership, and others assume that because of our company's mission and ethos, we will continue to push for greater sustainability in our industry…and they are absolutely right. We are, even when it is really challenging. We have to. This is our one and only planet.
AP: The beauty industry is increasingly cost competitive. How does Credo produce safe, “clean” products that compete with drug store brands? Why are consumers gravitating toward products with clean ingredients?
DD: I think it is awesome that we are seeing retailers in the mass space committing to putting safer products on their shelves. When companies like Target and CVS identify chemicals of concern and raise awareness with the kind of reach they have, it pushes contract manufacturers to start formulating using better ingredients. And, it pushes big brands to start making changes. It also lets people know there are effective and awesome options out there without sacrificing.
At Credo, the kinds of brands we source have a few primary factors. Since Credo has the highest standards in beauty retail today, that means we ban dozens of ingredients or ingredient classes that are linked to health or environmental issues. Conventional brands use these banned ingredients because they are cheap and easier to formulate with. But clean beauty brands are replacing these questionable ingredients with the highest quality natural/plant ingredients available. Couple that with the fact these brands are usually working with smaller labs that are innovative in their formula development and are working through the challenges of formulating products using safe synthetic and natural/plant ingredients.
Clean beauty brands also work diligently to have sustainable packaging options and that means not using stock plastic options. Since they are “indie” in size and don’t have the buying power that conventional brands have, this drives up the price. Credo prides itself on being welcoming to everyone and continuing to launch brands with lower price points is something we actively are seeking. As the clean space explodes and customers are voting with their wallets and allowing these brands some economies of scale, we are starting to see lower-priced, unique brand options. But again, they have to meet our Standard, and be effective.
AP: What’s next for the beauty industry? Do you see more legacy brands following Credo’s footsteps and adopting more transparent, safe, and sustainable practices?
DD: Consumer demand for transparency and better ingredients is growing fast. There is a wealth of information out there today that empowers people to know what they are consuming. The existence of parallels in other consumer categories in the industry where sustainability, ethical sourcing, environmental impact and health are already key factors in consumer decision making—food is one obvious example. The overall shift to conscientious consumption and healthy lifestyle is innate to Millennials.
There is a big risk for those who assume this movement is a niche. It is more a risk for the conventional brands and retailers who don’t adapt. They have more to lose than the disrupters and start-ups. The conventional brands and companies that are open minded and accept this change is coming and make changes to meet consumer demand will rise to the top, and others who are complacent will likely suffer the consequence of a significant loss of market share because by not adapting to a better way.
This interview has been lightly edited and condensed.
Categories