THE WHAT? A new study on the business impact of the EU Commission’s proposed Chemicals Strategy for Sustainability is said to have put the fragrance industry at crossroads, with ‘transformations needed to safeguard and promote prosperity of the sector in Europe.’
THE DETAILS The study, conducted by independent research consultancy Ricardo Energy & Environment on behalf of The International Fragrance Association (IFRA), suggests a negative impact on the industry of up to €2 billion per year resulting from proposals made in the European Union’s Chemical Strategy for Sustainability (CSS).
According to IFRA, the study assessed the impacts against baseline projections for industry growth. It suggests that more than a quarter of the industry’s portfolio in turnover terms would be affected in some way by the proposed changes.
The report suggests that this impact would be felt by consumers, with a reduction in choice of products that people consider important to their mental and physical wellbeing.
The research focuses on how specific proposals within the CSS, launched in October 2020, may affect fragrance companies and the wider industry in Europe.
THE WHY? Martina Bianchini, IFRA President, said, “From the beginning, IFRA has stated its support for the overall objectives of the EU Green Deal, and is ready to contribute positively to the Transition Pathway for Chemicals. But the transition can only be successful if it promotes sustainable growth, covering social, economic, environmental, and cultural dimensions.
“The study highlights the challenges posed by the current plans to the long-term socio-economic sustainability of our sector, especially for small businesses, which make up half of all companies in the European fragrance industry.
“At a time of uncertainty, we should be wary of the unintended consequences of policies and how they may negatively impact innovation, employment, and growth. We want to make sure these important sustainability policies have a positive impact in these areas, as well as enhancing consumer choice, encouraging investment, and reinforcing fragrance’s place as a key part of Europe’s cultural heritage, as well as its future.”