SEPHOR
A
Business scan report
Sawnri Kanhai Nuni William
22120319 22098283
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Background
This report is written to recommend Sephora on how they can be a more sustainable business for
the consumers and the workers in the supply chain. Sephora is one of the largest businesses in
the beauty and cosmetics industry. The business was launched in 1970 in Paris and is
momentarily still growing with over 30,000 people who work in more than 2700 stores all across
the globe (Pereira, 2022).
As a business in the beauty industry, Sephora claims that they are inspired and committed by the
global challenge, to create a cleaner planet. Their way of being sustainable is divided into three
main parts they focus on. Firstly, they want to care for the climate by reducing the carbon footprint
in their buildings by 50% by 2026. Secondly, they monitor suppliers that have a high ethical, social,
and environmental performance so they can partner up with Sephora. Thirdly, they want to
highlight and increase the number of packages that are natural, safe, vegan, and eco-designed.
Finally, Sephora states that they are striving to reduce waste in their stores by optimizing the end-
of-life of their products (Sustainability, n.d.).
Key Findings
What is going well in terms of sustainability?
As a global brand, Sephora has a responsibility to reevaluate its environmental impact. By
2026 they aim to decrease their carbon footprint by 50%. With this sustainability target,
they are on track. In stores and other facilities globally the company has implemented
energy-saving solutions, such as more efficient lighting. Furthermore, branches in France,
Italy, Portugal, and the United States have already achieved 100% renewable energy.
Sephora claims that they examine potential suppliers for their social, ethical, and
environmental performance before choosing to collaborate with them. Using the Ecovadis
platform they observe the progress of all strategic partners. Similarly, Sephora works
together with top supply chain specialists to monitor the supplier's practices for achieving
the same targets as the company. In terms of eco-design and transparency, the business
produces natural, safe, vegan, and eco-designed packaging. To reduce waste and
maximize the end-of-life of its products the global beauty retailer has launched its take-
back method for used cosmetic products. Since the method has been implemented
globally, over 6 million bottles have been recycled. Another example is that they have been
re-using untouched products or giving them to charity to minimize waste. At all points
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throughout their supply chain including their retail spaces and head offices, Sephora
cultivates sustainable practices (Sephora , 2022).
What could be going better in terms of sustainability?
While Sephora is doing better in terms of sustainability, the company can improve several
things. While Sephora has addressed waste issues by transitioning to eco-designed
packaging, refillable packaging, or removing packaging entirely, less visible causes of
waste and emissions remain in product supply chains (Harvard Business School, 2017).
What is going bad in terms of sustainability?
Unfortunately, Sephora is not entirely cruelty-free. Sephora has released the following
statement about their stance on animal testing, ‘Sephora does not test Sephora Collection
or Sephora Original products on animals, and we do not ask others to do so on our
behalf unless it is required by law in specific countries where we operate. We want to see
the practice of animal testing ended entirely and we are a strong advocate for the
development and implementation of alternative methods’ (Logical Harmony, n.d.). While
Sephora as a company does not test its finished products on animals, it does pay third
parties to do so where it is required by law, for example in China, where cosmetic products
produced outside the country have to be tested on animals. Therefore, Sephora is not
entirely cruelty-free. Additionally, in terms of transparency, the retailer does not mention
whether its suppliers or ingredients are subjected to animal testing (Kitty, n.d.).
Conclusion
Sephora has specific targets around sustainability. The company has put energy-saving solutions
in place, has achieved 100% renewable energy in certain countries, and observes its supplier's
practices and progress. Sephora launched methods to reduce waste and maximize the end-of-life
of its products. On the other hand, it does not address the less visible resource of emissions and
waste in product supply chains.
However, the company has failed to make its products entirely cruelty-free in countries where it is
required by law to test cosmetics produced outside of the country on animals. Additionally,
Sephora is not transparent about its suppliers and ingredients and whether it is subjected to
animal testing.
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Recommendation
Less visible resources waste and emissions are still found in the product supply chain. According
to Harvard Business School, ‘The imbalance between product composition and product production
will continue to be relevant as consumers demand more sustainable products, therefore,
companies like Sephora must be prepared to work with suppliers to ensure a more comprehensive
approach to sustainability…’. In other words, to achieve sustainability throughout all of its
practices, Sephora needs to observe whether its partners are sustainable in their practices. To
achieve sustainability in all areas, the company needs to stop collaborating with countries where it
is required by law to test cosmetic products produced outside their country on animals. Sephora
can try to produce its products within the country where this rule applies. Furthermore, Sephora
needs to be transparent about its suppliers and ingredients and whether it is tested on animals.
They can do this by publicly launching their ingredients list and including all of their ingredients and
whether it is tested on animals.
Other ways to test cosmetic products cruelty-free is by doing vitro tests and silico/chemico tests.
Vistro tests use simple living things like bacteria, or tissues and cells from humans, which shows
the compatibility between the products and humans. It is more effective due to this test being more
relevant to humans. In silico and chemical tests, cosmetic products are tested by computers or
chemical methods. (Cosmetics, n.d.)
References
Cosmetics. (n.d.). Cruelty-Free International. Retrieved October 4, 2023, from
https://crueltyfreeinternational.org/make-change/cosmetics
Pereira, D. (2022, August 23). Sephora Business Model. Business Model Analyst. Retrieved September
27, 2023, from
https://businessmodelanalyst.com/sephora-business-model/#A_brief_history_of_Sephora
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Sustainability. (n.d.). Inside Sephora. Retrieved September 27, 2023, from https://www.inside-
sephora.com/en/commitments/sustainability
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