Chinese beauty brands are embracing ESG focus as consumer priorities shift

With ESG values ​​taking center stage as a focal point for consumers, companies across China are reshaping themselves to reflect their values.

“When we talked about sustainability in China six or seven years ago, we didn’t get much positive feedback. It was more of a good to know kind of thing. But now a lot has changed because we have seen that ESG has become a very important topic in China. For example, more and more listed companies are announcing their ESG objectives every year.”says Oliver Luo, Sales Director of Cargill Beauty APAC.

While this movement may be consumer-driven in many markets, Luo believes the increased awareness is attributed to the Chinese government and its steps to address environmental issues.

“Over the past five to 10 years, whenever the government talked about the importance of environmental protection, people thought it was a good thing. But now I believe people have seen its positive impact. A simple example is air pollution. Now that it is much better than before, people understand how it has a big impact on our daily lives.”he said.

Furthermore, related values ​​such as traceability resonate strongly with Chinese consumers, who are highly critical when it comes to product quality and safety.

“I don’t think it’s surprising that people have this image, because if you’re trying to improve the sustainability of your product, or even the life cycle, you’re definitely going to prioritize traceability. And for the quality control itself, traceability is very important, because you look at every process.”Luo said.