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Subscribers also get: Ethical Consumer magazine £4.25 - helping you choose the most ethical brands • Customise scores to reflect the issues you care most about • Website is updated daily by our team of dedicated researchers • The latest scores for the brands in all the Buyers’ Guide Plus Reports EC121 November/December 2009 Unlimited, 24 hour access to our website www.ethicalconsumer.org - keeping you up to date with all the latest ethical news and analysis • Unique buyers’ guides with detailed ratings tables, Best Buys advice, company profiles, news, boycotts, comment and more • Online back issues archive • Available in print through the post or as a digital download Revealing the dark heart of the chocolate industry Toys & games consoles – play fair, not dirty Razors & shavers – cutting the environmental costs Rating Brand (out of 20) Equal Exchange tea [F,O] 17 Hampstead Tea & Coffee Co tea [F,O] 17 Purely Organic tea [F,O] 17 Steenbergs English breakfast tea [F,O] 17 Access all these print and web products for just 58p a week. razors & shavers been a contributor to carbon emissions which had a damaging effect on the environment. (ref: 3) Sign up and unlock all our content for the introductory offer price of just £29.95 a year. You can cancel at any time in the first four weeks for a full refund. Subscribe via our website (click the sign up tab below), or call us on 0161 226 2929 (Monday to Friday). No palm oil policy (July 2009) A search was made Sustainabl of the Walmart website (www.walmartstores. e forestry com) on 8th July 2009. No policy on palm oil could be found. Wal-Mart policy did notfor climate Walmart received for negative marks (2008)impact on respond change, the company’s to a request endangered species and habitat destruction, were all results The company’s policywhich byaECRA of unsustainable in palm oil production. oilthe is used in vast in websitePalmon November sustainable Ocober contacted, (www.walm 2008, array of consumer products. (ref: 4) stated Global 123 had artstores.cosourcing of 2008 meat. Forest that Wal-Mart wood. & Trade It said admitted m), Pollution &ofwebsite, Toxicsthis commited Network to selling had joinedwhen viewed concerned Sea Shepherd where coated with Teflon in July public whale had been Sold children’s clothes (May 2007) the company the WWF’s and to its wood 2008. and/or legal withhold to contact urging furniture to completing The ASDA websiteand waswell-manag visited in May 2007 found According to their custom.the Wal-Mart its members dolphin was and was to the the company an assessment and the ed. Once website be selling children’s clothes coated with Teflon.coming Chemicals (ref: 12) fromsuch and unknown was commited to complain, Sale of and as Teflon, belonging to the “non-stick” familythis of assessment perfluorinated whther it meat not also eliminate sources to eliminating was Wal-Mart was completed, labelled chemicals (PFCs) had beenwood classified as cancer-causing by the within did not as free their environmen wood five for the from forests range comapny’s respond to US Environmental Agency and hadyears. been The found in from illegal or organic values. Protection a request commitmen tal, socio-econ animal of critical ECRA including a wide range of species bears, dolphins company and by ECRA (2008) t to stocking welfare sustainable considered polar omic, importance would could biodiversity humans worldwide. Environmental campaigners had called for organic policy. No suchin October 2008 sourcing this due to com) be found on many or free be a positive the company’s wood of wood. toespecially policy, or landscape when PFCs to be replaced with alternatives in clothing range andsafer nor any FSC considered it was viewed paper-base However, step towards certified, website meat, poultry and othermark consumer products. PFCs such as Teflon the were used in d products (www.walm or eggs and therefore company the from factoryit likely that in November in this and that many school trousers skirts to givethethem durability and are still the company 2008. artstores. category. farmed As company were not labelledsold animals. was selling a result, ECRA frequently labelled “non-iron”.(ref: (ref:229) 5) received Middle ECRA rating for environmental report (August (ref: 3) as People meat products a negative No policy for reduction of harmful chemicals (2008) 2008) Animal Human to a request made by ECRA in October In May/June 2009, ECRA contacted Asda and a copy of the Wal-Mart did not respond Conflict Rights Animal s on its policies for dealing with harmful company’s environment report was requested. The company did 2008 for information Testing In May Diamond Survey Worst 2007 Amnesty its products. A statement naming three priority not respond. On 8th July 2009, a search of the company website chemicals inECRA Results a report 2009) rating Internation (May 2007) entitled for animal by Wal-Mart in 2006, was was made. Under the section “Sustainability”, information chemicals of concern, identified not “Conflict According doing al testing in enough.” about the company’s environmental activities was found. The found on the company’s Diamonds,and Global to the FAQwebsite (www.walmartstores.com) policy co.uk, Witness The report Asda were (Septembe UK viewed section 2008. The document stated that Wal-Mart had worked section contained at least 2 future, dated, quantified targets. November released was on 4th mentioned jewellery retailers testing of the ASDA r leading September the wesite suppliers and developed a timeline for the eradication of No evidence of independent verification of the section could with retailers. based on findings in this still funds website, adhere 2009, date was report. The report stated However, researchof concern. from a givenwww.asda. nor any to be found. The website had a copyright date of 2008 and the these “ASDA noASDA stated this chemicals questionna into was against are not the industry’s was implemente is againstwas on furtheralternatives research the company undertaking to effective section text appeared to be current. No mention of the issue of information minimal that “although ire sent animal year rolling more needs .” However animal in preventing system to most companies dchemicals. testing i.e. other harmful ECRA did not consider this to the business being dependent, at the time of writing, on customer identify rule through of relevant it did not self regulation, and no longer to be done and the the information fixed demonstrate any real commitment reduction car use, could be found. Although the section covered several Naturewatc company to athe state how policy fuel conflict.”by industry trade in blood cut-offof chemicals these did . ASDA products, and pesticides in the company’s as such,date it received environmental aspects, there was no mention of pesticides and company Adsa itselfleaders to ensure diamonds, h Compassio supply or five had and other measures was also notand and any additional no policy that diamonds a negativesold markbranded in this category. (ref: not 3) endorsed nate Shopping other agricultural impacts that occur as a result of producing household taken failed to disclose on of any in the jewellery its company to combat goods for the company, therefore the company was not deemed testing cosmetics, productsand fine Guide. Water pollution (2004) 2008 conflict its auditing website trade association their products made by toiletries, In addition diamonds. to have a reasonable understanding of the main environmental rating and According to an article posted on Sustainablemedicines Business (www. companies the It s. (ref: it was not a for animal on animals. Dropped impacts of its business. The company was given ECRA’s middle sustainablebusiness.com) member 13) which titledASDA ‘Wal-Mart: Every Day Low... and testing Factory According from Norwegian received were toactively rating for environmental reporting. (ref: 1) Wal-Mart hadpolicy. been accused (ref: 7) of indifference farming ECRA’s evidence to to issue SaleImpact,’ pension of factory worst that pesticides and fertilisers were escaping into waterways from Earth magazine, 71 (November fund Poor independent rating on CSR in supermarkets According (2006) farmed Wal-Mart Norway 2006) gardening products turkey stored unprotected in its car parks. It was (November 2006) to ‘Supermark Standard’ had announcedof Indonesia’s systematic Stores from (2006) finedpublished $3.1 million inets2004 by the US Environmental Protection Ethical Performance November 2006 reported that Asda received & Farm violations its Governmen in 2006, Down that 15) by the Animal (ref: 6) over 90% for Clean water Act violations. t Pension it was dropping a poor rating (rated as a ‘D’) in a report by the National Consumer of human Compassio Welfare farmed.Agency Fund rights In addition,of the turkeys n in World - Raising Workers Council on supermarkets’ progress on corporate responsibility.also The and labour for “serious, the majoritysold by ASDA Farming the Workers’ ’ Rights rights”. rating covered supermarkets progress on CSR factors including: intensively reared. Trust (ref: Factory & Resources (ref: 10) of ducks sold were intensively According rights abuses commitment to stocking seasonal food and organics, sustainable Habitats Accordingfarmed chicken by ASDA in Banglades to a story sourcing policies and attempts at cutting waste. (ref: 2) were website (www.busin to ‘Supermark (2006) dated 9 the Standard’ October h (October buying Voters say no toets Wal-Mart (March 2004) essweek.co school 2008) 2008 on published Trust in & Farm Climate Change uniforms conditions The Ecologist reported that voters from Inglewood in Los Angeles the m), Animal 2006, intensively Policy on stocking local produce (October 2008) over 90% by the Compassio Welfare at a factory that were Wal-Mart had BusinessWeek had voted in March 2003 not to let Wal-Mart build a store inSweatFree their made been of the n in World - Raising in maximum farmed. Wal-Mart did not respond to a request made by ECRA in October Communiti in Bangladesh under extreme accused chickens The report neighbourhood. According to thesold Ecologist, Wal-Mart to Bangor, of stocking Farming wanted es, an anti-sweats. The of floor sweatchop 2008 for details on its policy towards stocking locally produced who conducted stated the report ASDA build theguideline store on a piece of land theby size of nearly 20 football space, maximum were to factory. The which food. ECRA searched the company’s website (www.walmartstores. of 38kg that ASDA interviews hop activist came from report pitches, yetexceeded didn’t see the need for an environmental impact finish study the had birdstated group with over chickens per-metre-s set a to com) in November 2008 and found a page entitled ‘Locally Grown of 34kg bird-per-m the governmen that based stand public hearings. The Ecologist said localsquared voted 61 to 39 per for Wal-Mart’s wereorbred justlocally etre-square orders they worked 90 workers from Products’, which stated that Wal-Mart noted that buying t guidelines hours 6 weeks. cent to grow were frequently up under against the project. (ref: 227) to as d 19 punishmen of quickly tight deadlines; hour CIWF of a Allegedly, grown produce was “a hot marketplace trend”. However,and no figures they suffered shifts argue so they floor space. Broiler subject that of sustainable fishing policy (2006) reached were made to verbal t for arrivng some their were given for the percentage of Wal-Mart’s salesAccording accounted Announcement painful which bones late to was even workers earned abuse and According toand the crippling March 2006could issue ofslaughter ENDS Report, Wal-Mart were ‘fast-growi work; for by local produce. ECRA also downloaded a document withto CIWF, in $24 not keep and the majority as little kickings or per month. less than that it waslameness implementing a pace policy on sourcing ng’ announced the title “Wal-Mart makes national commitment toAnimal buy locally had strains. of chickens (ref: 16) the country’s as $20 each beatings. Lawsuitthat a result. (ref: of sustainable fish. wasassaid to have claimed per month, legal minimum Rights grown produce”, but again, this contained no figuresSea for sales and 10)The companysold over Banglades According by American Shepherd within three to five years all fish in North ASDA stores would wage of set no targets to increase sales of local produce. ECRA did not Boycott to an h working According news in line with Marine Stewardship Council guidelines, website article dated (5 March conditions to the be sourced consider that this constituted a real commitment to encouraging accessed 16th August New a lawsuit Sea Shepherd 2004) ASDA would be following (2006) and that UK subsidiary suit after on had been Nation, nation.ittef 2006 sales of locally produced products, and as a result company forthe Conservati worst supermarket inFund a boycott 12th being on March taken thisinarea by California 2004, the country’s received a negative mark in this category. It hadthemselves been noted by aq.com, the Bangladesh of Wal-Martnamed with internation against out by the the societyon Society i was said to cover frozen and Internation in August storesThe announcement environmental campaigners that the issue of ‘food -ofthetheirGreenpeace. chainmiles’ had been website, in supplier al labour Wal-Mart, for untilfish al Labour 2006 called 37%wild-caught fresh no mention was made of operations theybut shares distance travelled by a product from supplier todolphin consumer -Seiyu had Ltd, calling had have chosenfactories in standards and alleged non-complRights in the either meat. or convinced outside the USA and Japanese UK. (ref: 228)divested Bangladesh its own 2 that labour to use US iance It said Code of supermarke . The organisatio it to stop alien that the Conduct rights selling recently t hearing US Environme campaignetort law for n whale and Gender in Bangladesh rs could the suit on was said to inquire hired a researcher ntal Investigatio the if they not be discrimina . (ref: 17) 3 to call sold whale guaranteedgrounds According n Agency tion lawsuits or dolphin 202 Seiyu a fair to information (March meat, and retail outletshad huffingtonp to to oppose ost.com), datedon the Huffington2009) of the 202 stores a class 23 March and 2 million Post website action (www. female lawsuit. The 2009, Wal-Mart employees lawsuit involved was trying who claimed Betty Dukes the company had ASDA Owned by Asda Group Ltd Asda Group Ltd, Corporate Social Responsibility, Asda, ASDA House, Southbank, Great Wilson Street, Leeds, LS11 5AD, England Asda Group Ltd is owned by Wal-Mart Stores Inc Wal-Mart Stores Inc, PO Box 1039, Bentonville, Arkansas, 72716-8611, USA Wal-Mart Stores Inc also owns ASDA Extra Special chocolate [O] Environment Environmental Reporting trial sign up “Ethical Consumer helps me know the real story of what I’m buying.” Mr Cassy, Suffolk Copyright notice: © Ethical Consumer Research Association Ltd. Not-for-profit organisations may normally reproduce without charge any of the material appearing in Ethical Consumer, providing that all such material is credited and providing that written permission has been sought prior to publication. No part of this publication may be produced by commercial organisations without written permission from Ethical Consumer Research Association Ltd. Cosmetics & Toiletries © Okea | Dreamstime.com www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 Special Report on Cosmetics & Toiletries W elcome to our Special Report on Cosmetics & Toiletries. Over the following pages we’ll provide you with all you need to know to help you make the most ethical choices across most of the products you’re likely to find in your bathroom. We’ve produced score tables and best buy information for eight products listed below. We’ve also got heaps of information on the usual issues you’d expect to find such as corporate profiteering and problem ingredients. But, as you’ll see from the tables, there are a host of truly environmental alternatives available, so finding ethical products should be relatively easy. Score Tables and Best Buys Other Issues Toiletries: Fluoride or non-fluoride toothpaste page 15 • Toothpaste 14 • Sunscreen 18 • Soap, handwash and shower gel 20 • Deodorant 23 • Shampoo 24 • Shaving foam and gel 30 Cosmetics: • Make-up 28 • Skincare 31 Company profiles page 16 Nanotechnology in sunscreens page 18 Animal testing page 22 A word on palm oil page 25 Ingredients to avoid page 26 Women reflect on make-up page 28 Marketing to men page 30 This report was researched, written and compiled in July 2012 by Tim Hunt, Jane Turner, Heather Webb, Bryony Moore, Katy Brown and Leonie Nimmo. 11 Cosmetics & Toiletries SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org Selling soap There was once a time when the most basic of soaps was a luxury for most people. Now many of us bathe daily in a complex mixture petrochemicals, choosing to cover our chemicallydependent skin in ever increasing quantities of expensive products. The European market for perfumery and cosmetics is the largest in the world with sales of €67 billion per year. The UK is the third largest market in the EU accounting for £6.7 billion.2 Even with the recession, the market is expected to grow at approximately 4.4% per year.2 Marketing insecurity To move such a gargantuan mass of potions and snake oils the ad men remorselessly target our perceived imperfections and insecurities. While the names and claims of the products they hawk change with dizzying regularity to match changing market fads, the basic premise always remains the same: ‘No wrinkle too small or blemish too big that our cream/ointment/balm cannot render it invisible to the naked eye.’ The sensory bombardment reaps big financial rewards but can have a dramatic impact on consumers and society. This is discussed more by our readers on page 28 and Simon Birch on page 30. To sell the impossible dream of perfection, companies in the UK spent a total of £466 million on advertising in 2011. Procter & Gamble was the biggest spender (£138 million) with L’Oréal coming in second (£123 million) and Johnson & Johnson third (£37 million).1 The multinationals definition of ‘natural’ and organic.7 Almost half of women don’t check the The companies with this eye watering ingredients of the brands they use and a ad spend are among a small coterie of quarter of women don’t feel the need to multinationals that dominate the market. check ingredients if a product claims to Procter & Gamble is the largest of these be natural or organic. Market research with over 250 brands. Its beauty division company Mintel says, “This allows brings about 18% manufacturers to With more than 4,000 of its income to the exploit consumer group.3 L’Oréal is perceptions of companies operating in the second largest natural by using the EU cosmetics industry, player with 23 brand names and global brands and two thirds being Smallpackaging to imply it is present in 130 that a product is Medium Enterprises, direct countries.4 Colgatemore natural or and indirect employment is Palmolive is the organic than it third major player actually is.”7 estimated to be 1.7 million in the industry. Unfortunately, people. In the UK alone Unilever is the unlike organic largest company there are at least UK 277 food, there are no by annual sales, 2 legal standards companies. although more for organic beauty than half of its products. Therefore a company can label revenue comes from food products.2 You or name a beauty product ‘organic’ even can find out more about these companies if it only contains 1% organic ingredients. on page 16. And the description ‘natural’ has no protection at all. In 2011 the Soil Association and other European organic certification To stay ahead of the competition, bodies launched a new ‘harmonised’ companies are looking to tap into people’s certification system – called Cosmetics desire for more ‘environmentally-friendly’ Organic Standard or COSMOS standard and less toxic products. The market for – for organic and natural claims on ‘natural’ products is estimated to be cosmetics. Companies voluntarily apply growing in Europe at a rate of 20% a for certification. year, and the ‘Environmental Approach’ The ‘COSMOS Natural’ has been seized upon by producers with standard will ensure that 40% of new products launched in 2010 no more than 5% of the incorporating environmental claims.3 total product is synthetic This trend has meant, according with the list of permitted the industry body COLIPA, that synthetics very short and only permitting mainstream producers have reduced their biodegradable and non-toxic substances.3 environmental impacts by minimising The ‘COSMOS Organic’ water consumption, waste minimization standard will ensure that and increases in transportation efficiency.6 at least 95% of processed Our own research found the evidence agro-ingredients in a product of environmental improvements to be are organic and that where more of a mixed bag. L’Oréal for instance an organic version of an scored best for its environmental policy ingredient is available it must be used. It but worst for its palm oil policy. Johnson also states that at least 20% of the total & Johnson, Colgate-Palmolive and Procter product must be organic and, like the & Gamble all scored middle for their natural standard, no more than 5% of the environmental reports but only Johnson product can be synthetic.3 & Johnson had an adequate policy on Until such time as organic claims palm oil. (Read more about palm oil on around beauty products can be regulated page 25). as they should be, consumers will need to look out for certification labels to make sure they’re not being taken for a ride. We give certified organic products an extra Three in ten women say they only use Product Sustainability mark on the score natural and organic products where tables in this report. possible but there is little clarity over ‘Natural’ products? Misleading claims 12 Cosmetics & Toiletries www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 A ‘free from’ labelling ban? Big cosmetics brands are apparently pressuring EU authorities to ban ‘free from’ and ‘no’ claims on natural and organic beauty products – such as ‘Free from Parabens’ and ‘No SLS’. Peter Kindersley, owner of Neal’s Yard Remedies, writing in Natural Products News explains that the ban is being driven by larger companies and consumer groups in an attempt to strike a blow against greenwash, but would penalise companies who go beyond baseline compliance. Kindersely suggests that a more likely motivation for the proposed amendment of the EU Cosmetics Directive is that ‘free from’ labelling casts big brands in a poor light by highlighting their failure to remove ingredients of concern. If the big brands get away with banning ‘free from’ and ‘no’ labelling it would mean that at the point of purchase consumers would be deprived of information on health compromising ingredients and, potentially, claims like ‘no animal testing’ that are so important to growing numbers of consumers. We discuss six ‘Ingredients to avoid’ on page 26 and SLS specifically at page 25. Animal testing Richard Liptrot The globalisation of markets has made national bans on the animal testing of cosmetics (such as we have in the UK) very difficult to enforce in reality. Wendy Higgins from the HSI explains more about how this issue is still not going away, and what consumers can do about it, on page 22. Packaging Much of the environmental impact of shampoo and soap comes from its disposable packaging, and some companies have policies in place to address this. Lush are probably the main pioneer in this regard with 46% of its product range (such as solid shampoo bars) formulated so as not to require packaging. The packaging problems stemming from a general trend towards buying soap as liquid in bottles rather than as soap bars is discussed on page 21 . Links • Environmental Working Group www.ewg.org • Safer Cosmetics Campaign www.safecosmetics.org • Women’s Environmental Network factsheets available from www.wen.org.uk • Animal Aid www.animalaid.org.uk • BUAV www.buav.org • Naturewatch www.naturewatch.org • Humane Society International www.hsi.org References (all website visited July 2012) 1 http://www.bradtop100.co.uk/05-Cosmetics-Toiletries/ 2 Revision of European Ecolabel Criteria for Soaps, Shampoos and Hair Conditioners. Albert Ferrer et al January 2012 3 www.pg.com 4 www.loreal.com 5 A Study of the European Cosmetics Industry. Global Insight. European Commission, Directorate General for Enterprise and Industry. November 2007. 6 Colipa – The European Cosmetics Association. Colipa activity report 2010. Science, Beauty and Care Innovating for a Sustainable Future. 7 Mintel. Natural and Organic Personal Care Report – Europe. December 2010 8 http://www.ctpa.org.uk/content.aspx?pageid=430 9 http://www.plasticdisclosure. org/disclosers.html 13 Cosmetics & Toiletries SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org Toothpaste Weleda [S,V,O] Lush solid [Vg] Lavera [S,O,Vg] Urtekram [O] Supply Chain Management +ve H 13.5 H h h H 12.5 H h h h h h H h h h H Anti-Social Finance Political Activity Boycott Call Genetic Engineering h 10 h h h H h h H 9.5 H h h H h H Arm & Hammer 8 H h h H h H Theramed * 6 H H h h h H H H h h h h H H H H H h h H h h h H H H H H H h H Aquafresh * 5.5 h 5 Rainbow Wholefoods 2 Bioforce AG e E e Clinomyn Tom’s of Maine [S,V] Green People Company Ltd 1 E JASON [S,V] * h e E 3 e H h • Company Ethos: Product Sustainability h USING THE TABLES E e H 13 Politics Positive ratings (+ve): Irresponsible Marketing Workers’ Rights Human Rights Factory Farming Animal Rights People Animal Testing Animals h 14.5 H 14 Colgate-Palmolive began removing triclosan, a pesticide and fungicide, from its Palmolive washing-up liquid in 2011 amid growing consumer, regulatory and legislative scrutiny of the antibacterial ingredient. But it’s still the key active ingredient to fight gingivitis in Colgate Total toothpaste, a billion-dollar-plus global brand. Company Ethos A. Vogel [O,S] * Habitats & Resources 16 = middle rating, empty = top rating (no criticisms). Pollution & Toxics 17 Kingfisher [S,Vg] = bottom rating, Climate Change Green People [O,S,Vg] H h Environmental Reporting BRAND Ethiscore (out of 20) Ethiscore: the higher the score, the better the company across the criticism categories. Nuclear Power Environment USING THE TABLES Triclosan in Colgate Total Arms & Military Supply T his buyers’ guide covers toothpastes and gels, and also most mouthwashes and rinses, toothbrushes and a few denture cleaners. Colgate toothpaste accounts for nearly half of all UK sales and pharmaceutical giant GlaxoSmithKline (Macleans, Aquafresh and Sensodyne) takes most of the rest. These companies are discussed in more detail in the Company profiles on page 16. = full mark, = half mark. • Product Sustainability: Maximum of five positive marks. COMPANY GROUP 2 Weleda AG 1 Lush Cosmetics Ltd 3 Laverana Gmbh 1 Urtekram International 1 Hain Celestial Group Lornamead H h Church & Dwight h h Henkel KGaA h 1 Colgate-Palmolive GlaxoSmithKline Steradent 5 H h H h H H H h h H H Reckitt Benckiser Colgate * 4.5 h h h h H H H H H h h H h Colgate-Palmolive H KKR & Co. L.P. Boots 4 H h h h h H H H h H H Euthymol 3.5 h Superdrug * 2.5 H Mentadent, Signal 1.5 Oral B * Crest 0.5 h H H H H H H H H H H H h H h H h h H H H H H H Johnson and Johnson Cheung Kong Holdings h H H H H H H H H h h H H H Unilever h H h H H H H H H H H H H H Procter & Gamble Company [Vg] = Vegan [V] = Vegetarian [S] = lower toxic chemicals [O] = organic * = also mouthwash All the research behind these ratings is on www.ethicalconsumer.org Other toothpaste brands not on the table GlaxoSmithKline also makes: Biotene, Corsodyl, Macleans, Sensodyne. Plus Biotene, Corsodyl and Sensodyne mouthwash and Poligrip and Dentu-Creme denture cleaners. Johnson & Johnson also makes: Rembrandt, Listerine mouthwash. Church & Dwight also makes: Pearl Drops. 14 Cosmetics & Toiletries Alternative toothpaste brands tend to avoid fluoride in their formulations. Why is this? We have asked the opinions of three different parties in this recurring debate. FOR: The British Dental Health Foundation Fluoride comes from a number of different sources including toothpaste, specific fluoride applications and perhaps the drinking water in your area. These can all help to prevent tooth decay. If you are unsure about using fluoride toothpaste ask your dentist, health visitor or health authority. All children up to 3 years old, should use a toothpaste with a fluoride level of at least 1000ppm (parts per million). After three years old, they should use a toothpaste that contains 1350ppm-1500ppm. You can check the level of fluoride on the packaging of the toothpaste. Children should be supervised up to the age of 7, and you should on su mer m e th BE Whilst we acknowledge that fluoride is essential for the proper development of teeth and bones, and plays an important role in the reduction of tooth decay, we do not believe that adding fluoride compounds to toothpaste is a suitable route of administration. This is largely due to the huge variations in dosage levels that can result from this method. For instance, some people use a small amount of toothpaste whilst others may use a lot. Some people spit out the toothpaste and some swallow it. This applies to adults as well as babies and children. These differences mean that the amount of fluoride received each time the teeth are brushed can vary wildly. On top of that, some people brush their teeth just once a day, whilst others may brush three times or more in a day. Taking these variables into account, the dosage of fluoride achieved by this route of administration is highly unpredictable. Since an excess of fluoride causes mottling of teeth (dental fluorosis) and has been linked to brittle bone disease (skeletal fluorosis) we believe that a more carefully controlled dosage is required. We advise that people who are concerned about fluoride deficiency should consider taking fluoride tablets or drops from a pharmacy. IN THE MIDDLE: Richard Austin from Kingfisher Broadly, the dental profession is almost completely in its favour and recommends the use of fluoride especially by young people. There is a small but vociferous lobby against fluoride and they believe that its use is both unnecessary and motivated by business interests. You can find lots of information about both views on the web. It’s worth remembering that fluoride is a poison and needs treating with respect. There are many poisons that we use to our benefit that are harmful if misused. So the topical use of fluoride might be viewed as good by those who feel that the fluoridation of water is not. When I started Kingfisher in 1988 I asked the advice of one of the health advisers to the Labour Party. He gave me a lot of reading to do and strongly recommended that we make our toothpaste with fluoride. This we did but after a year or so, when we S T BU Y AGAINST: Ian Taylor from Green People The Best Buys for fluoride-free toothpaste are Green People, Kingfisher, Lush, A. Vogel, Lavera, Urtekram and Weleda. azine Should I use fluoride toothpaste? make sure that they spit out the toothpaste and don’t swallow any if possible. ag The US Food and Drug Administration approved use of triclosan as safe and effective for the prevention of gingivitis in Colgate Total in 1997, and that hasn’t changed. The FDA is currently reviewing the safety of the chemical. There’s been a notable shift away from triclosan in formulations by most manufacturers of consumer products. For example, GlaxoSmithKline adopted a cautious approach, withdrawing triclosan from its Aquafresh, Sensodyne and Corsodyl range in response to consumer concerns in 2010. Colgate-Palmolive takes the view that the benefits of adding triclosan to its Total range outweigh the risk. The concern is based on studies about the possible health impacts of triclosan, which the FDA said in 2010 “raise valid concerns about the effect of repetitive daily human exposure to these antiseptic ingredients.” Several studies have shown that triclosan disrupts the thyroid hormone in frogs and rats, while others have shown that triclosan alters the sex hormones of laboratory animals. Others studies have shown that triclosan can cause some bacteria to become resistant to antibiotics.1 We also found triclosan listed as an ingredient in Mentadent P and Mentadent Sensitive – two Unilever brands. i c al c www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 17 The Best Buy for fluoride toothpaste is Kingfisher. 16 Lush’s ‘Toothy Tabs’ are solid toothpaste in recycled cardboard rather than plastic or aluminium tubes. 13.5 could afford it, we introduced a fluoridefree alternative. These days we offer a range as fluoride-free but offer the two basic varieties, Fennel and Mint, with fluoride options. Fluoride-free brands The following brands are exclusively fluoride free: A. Vogel, Green People, Euthymol, Lavera, Lush, Urtekram, Weleda. The following brands make fluoridefree varieties: JASON, Kingfisher, Sensodyne Original, Tom’s of Maine. All the other brands in the report contain fluoride. Make it yourself Dissolve a teaspoon of baking soda in a glass of water to make your own toothpaste (undiluted baking soda can be tough on your enamel). Reference 1 http://www.nytimes.com/2011/08/20/business/ triclosan-an-antibacterial-chemical-in-consumerproducts-raises-safety-issues.html?pagewanted=all 15 Cosmetics & Toiletries SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org Company profiles Procter & Gamble own a host of brands in the sector. These include Head and Shoulders, Oral B and Gillette. The company is the subject of a boycott call from campaign groups PETA and Uncaged over its use of animal testing. Last year, following a complaint submitted by Uncaged, the company was forced to withdraw an advert for its ‘Herbal Essences’ hair care range which falsely claimed ‘we don’t test on animals’. When challenged by the Advertising Standards Authority, P&G admitted the statement contradicted thousands of chemical poisoning tests that they still carried out on animals for the sake of Herbal Essences and other beauty brands.1 L’Oréal, which is part owned by Nestlé, also has a number of brands in this sector and beyond. The company is the subject of a boycott call from Uncaged, again over animal testing. It is heavily involved in nanotechnology and is the top nanotechnology patent-holder in the United States.2 The company also has operations in 11 oppressive regimes and 4 tax havens. L’Oréal also owns the Body Shop. This subsidiary scores well for its own policies but still receives a low ethiscore as it picks up marks from both L’Oréal and Nestlé. Johnson and Johnson is best known for its baby lotion and shampoos. The company is conducting research into modified organisms for medical purposes and they concede that some cosmetics products contain GM material.3 It is also the subject of a boycott call from Uncaged over its use of animal testing. Bollywood star Rozlyn Khan protesting against animal testing with People for the Ethical Treatment of Animals (PETA) India on the eve of World Day for Animals in Laboratories earlier this year. 16 In April this year Johnson and Johnson and its subsidiary company Janssen were ordered to pay more than $1.1 billion in fines after a judge ruled that the company’s officials misled doctors and patients about the risks of the antipsychotic drug Risperdal. The company marketed the drug for ‘unapproved uses’, including to treat various symptoms in children and the elderly’ after being warned by federal authorities to halt such sales.4 Unilever owns a number of brands in the sector including Dove and Pears. It is the subject of a boycott call from Uncaged over its animal testing policy and we give the company a worst rating for this. Last year ActionAid uncovered that Unilever had 696 subsidiaries 26% of which were in tax havens. The company receives our worst rating for its palm oil policy. Last year it was reported that one of the company’s suppliers of palm oil had seized land by force in Indonesia. According to Rainforest Rescue, the small village of Sungai Beruang on the Indonesian island of Sumatra had been stormed by 700 armed soldiers from the notorious special forces unit Brimob, and the Wilmar Group’s security forces. The raid on Sungai Beruang was reported to result in hundreds of people fleeing “to escape the guns and bulldozers” and much of the village being destroyed. 40 people from the ethnic group of the Suku Anak Dalam, which had lived in the area for generations, were reported to be missing.7 GlaxoSmithKline, owner of the Aquafresh brand, was recently fined $3bn (£1.9bn) in the largest healthcare fraud settlement in US history. The drug giant pleaded guilty to promoting two drugs for unapproved uses and failing to report safety data about a diabetes drug to the Food and Drug Administration (FDA).5 In addition, GSK has been found guilty of paying kickbacks to doctors,5 and of using unethical drug trials in Argentina and India.8,9 The company has been researching nanotechnology and genetically modified organisms and was recently accused of cutting secret tax deals with authorities in Luxembourg to avoid millions in corporation tax in Britain.6 Estée Lauder is under a boycott call from Uncaged over its weak animal testing policy. It also scores worst in all the policy areas that we have rated companies on in this issue (palm oil, animal testing, supply chain management and environmental reporting). Revlon also scores worst for the above policies and is the subject of a boycott call from PETA due to animal testing. Superdrug is under a boycott call from Ethical Consumer due to the involvement of its parent group in the Canadian tar sands. Across the company group it has worst rating in all the policy areas researched for this buyers’ guide. It also has operations in eleven oppressive regimes (Burma, China, India, Israel, Libya, Pakistan, Saudi Arabia, Sri Lanka, Philippines, Russia, Thailand and Vietnam). Boots is owned by private equity firm KKR. The latter has subsidiaries in seven tax havens and, on taking over Boots, moved its headquarters to Switzerland to avoid the UK’s higher rate of corporation tax. Boots also scores badly for all the policies rated in this report (palm oil, animal testing, supply chain management and environmental reporting). Nivea, owned by Beiersdorf, scores worst in all the policy sectors rated in this buyers’ guide. It has subsidiaries in several oppressive regimes (Russia, China, India, Kazakhstan, Thailand, Vietnam, Colombia, and Venezuela) and six tax havens (Ireland, Singapore, British Virgin Islands, Guatemala, Panama and Uruguay). It is also the subject of a boycott call from Uncaged over its animal testing policy. Cosmetics & Toiletries www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 A L’Oreal subvert from the Animal Liberation Front. Reckett Benkiser and Coty both score worst across all the policy areas researched for this buyers’ guide. They were also both listed as companies to boycott due to their poor animal testing policies. Colgate-Palmolive scores worst for its palm oil policy, animal testing policy and supply chain management and middle for its environmental reporting. It is the subject of a boycott call from Uncaged over its animal testing policy. It also has subsidiaries in six oppressive regimes (China, Colombia, Honduras, India, Philippines and Venezuela) and seven tax havens (Costa Rica, Hong Kong, Ireland, Panama, Philippines, Singapore and Uruguay). Church & Dwight, owner of the Arm and Hammer toothpaste brand, falls down due to its lack of policies. It scores worst for supply chain management, environmental reporting and palm oil policy. The company was also the subject of a boycott call from PETA over its use of animal testing. Avon was, earlier this year, forced to withdraw claims that its cosmetics weren’t tested on animals.10 The company had long stated that it was the first major beauty company to do away with animal experiments. According to its website, it stopped animal testing more than 20 years ago. Now, following a complaint to the Advertising Standards Authority from Uncaged, it has removed all traces of the claim from its UK website. The John Freida brand is owned by the Kao Corporation of Japan. This company scores well for its environmental reporting but worst for the other policy areas researched in this report (palm oil, animal testing and supply chain management). It also has subsidiaries in tax havens (Switzerland, the Philippines and Singapore) and operations in 4 oppressive regimes (China, Vietnam, the Philippines and Thailand). Despite Dr Hauschka’s credentials as an ethical brand, its parent company Wala Heilmittal, scores badly for both its environmental reporting and its supply chain management. Lush are a company that grew out of being a supplier to the Body Shop in its early years, and in many ways they retain the deliberately-unconventional spirit of the Body Shop far better than the current L’Oréal subsidiary. They delight in funding unpopular causes such as Plane Stupid’s anti-flying campaigns and asylum seekers (‘no-one is illegal’ campaign). Although they are industry-leading in some environmental areas (e.g packaging) their lack of formal policies and poor communication over some of these initiatives mean they receive ECRA’s worst rating for environmental reporting. Bioforce, owner of the A. Vogel brand, scores relatively well with the exception of environmental reporting and supply chain management where it scores worst. It also scores middle for animal testing policy for not having a fixed cut-off date. Inika only loses marks for its poor supply chain management. Badger, Yaoh, Pure Nuff Stuff, Rainbow Wholefoods (Kingfisher toothpaste), Caurnie, Essential Care, Faith in Nature, Honesty all score well across all categories. JASON Natural Products is owned by Hain Celestial. This company also produces Linda McCartney vegetarian foods but also other brands that contain meat products not marked as free range and organic. All JASON branded products have the leaping bunny logo from BUAV but it scores worst for environmental reporting and supply chain management. Suma, a workers’ co-op based in the UK, scores best for its animal testing policy, middle for its environmental policy and worst for its supply chain management, although it does “aim to avoid buying from countries or companies with proven poor human rights records”. Despite their ethical branding the larger alternative companies Urtekram, Neal’s Yard, Lavera and Living Nature score worst under our policy categories: environmental reporting, palm oil policy and supply chain management. They are still best buys for some products however. References (all websites viewed July 2012) 1 www.uncaged.co.uk 2 http://bx.businessweek. com/loreal-group/news/ 3 Genetically Modified Organisms. Found out www.jnj.com 4 Bloomberg News. J&J ordered to pay $1.1 billion penalty over Risperdal. April 2012 5 http://www.bbc.co.uk/news/ world-us-canada-18673220 6 Major UK companies cut secret tax deals in Luxembourg. BBC website 7 The bloody products from the house of Unilever. Rettet Den Regenwald. 8 From tragedy to travesty. The Independent. 15th November 2011 9 GSK fined over drug trial in Argentina. Sky News. 6th January 2012 10 Avon withdraws animal test claim from website after complaints. Daily Mail. March. 2012. 17 Cosmetics & Toiletries SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org Sunscreens Supply Chain Management 16.5 Pure Nuff Stuff [S,Vg] 16.5 Neal’s Yard [O,Vg,S] 13.5 H The active ingredients in physical sunscreens are zinc oxide and titanium dioxide. These ingredients can occur as nano-particles – microscopic particles about 1/50,000 the width of a human hair. Safety concerns regarding the use of nano-particles are as yet unresolved, and Politics +ve h h H 13 H h h h JASON [S,V] 10 h h Avon 8.5 h Clarins 8.5 H h Nivea 6.5 H h h h H H H h Origins, Clinique 6.5 H h h h H H H h Ambre Solaire * 4.5 H Company Ethos Product Sustainability Anti-Social Finance Boycott Call Genetic Engineering Arms & Military Supply Yaoh Ltd 2 WS Badger 3.5 h Superdrug 2.5 H H e E 2.5 1.5 2 = full mark, = half mark. • Product Sustainability: Maximum of five positive marks. COMPANY GROUP Green People Company Ltd Pure Nuff Stuff Neal’s Yard Remedies 3 Laverana Gmbh 1 Hain Celestial Group h h H H h H H h H h h h h H h H h Financiere H h Beiersdorf AG H h Estée Lauder Companies H h H H H H H h h h h H H H h H H Piz Buin e E H h h h h • Company Ethos: 3 e h USING THE TABLES e E h Lavera [S,O,Vg] 4 Physical sunscreens and the nano factor e Green People [O,S,V] Boots 15. Consequently, very high SPF products are disappearing from the shelves along with products that claim to give complete protection, such as sun block. Products that offer broad-spectrum protection are recommended, and both chemical and physical sunscreens can provide this. However, a number of ingredients found in chemical sunscreens have raised safety concerns. Positive ratings (+ve): Irresponsible Marketing Workers’ Rights Factory Farming Human Rights People Animal Rights Animals Animal Testing Habitats & Resources 17 Pollution & Toxics 18 Badger [O,S] = middle rating, empty = top rating (no criticisms). Climate Change Ethiscore (out of 20) Yaoh [O,S,Vg] = bottom rating, Environmental Reporting BRAND H h Nuclear Power Environment USING THE TABLES Ethiscore: the higher the score, the better the company across the criticism categories. recently the significance of UVA rays was not fully known. This, coupled with research that indicated some companies claimed their products provided more sun protection than was the case, led to changes in non-legally binding recommendations from the European Commission in 2006. It seems that most manufacturers have voluntarily complied, leading to better sun protection being available in Europe than in the USA. A product’s sunburn protection factor (SPF) refers to the level of UVB protection that it provides. The EU guidelines now state that the level of UVA protection should be at least a third of the SPF indicated on the packaging. So, whilst a product might offer UVB protection of SPF 30, if its UVA protection is equivalent to SPF 5 it would not be able to display an SPF figure of greater than Political Activity S unscreens can be broadly categorised as either chemical, which are absorbed into the skin and which absorb ultra-violet rays, or physical (mineral), which sit on top of the skin and reflect UV rays. Whilst the mainstream brands in this report typically produce chemical sunscreens, and ‘natural products’ companies produce physical sunscreens, some products now also contain a mixture of both active ingredients. When exposed to the sun, two types of ultra-violet radiation are of concern: short-wave UVB rays, which are more intense and are the primary cause of sunburn, and long-wave UVA rays, which penetrate the skin more deeply and are the dominant tanning ray. Both types of UV are contributing factors to skin cancer, but until relatively H H H H H H H H H H h H h H h Avon Products Inc H H H L’Oréal H KKR & Co. L.P. h H H H H H H Johnson and Johnson Cheung Kong Holdings [Vg] = Vegan [V] = Vegetarian [S] = lower toxic chemicals [O] = organic * = L’Oréal also owns the Biotherm, Lancome and Vichy brands All the research behind these ratings is on www.ethicalconsumer.org 18 Cosmetics & Toiletries su mer m Non-nano suncreens: the Best Buys are Badger, Neal’s Yard, BE Pure Nuff Stuff, Yaoh. S T BU For nano suncreens, the Best Buys are Green People and Lavera. Some natural products companies still offer sunscreens with micro-sized rather than nano-sized zinc oxide or titanium dioxide. However, the EWG note that both nano and micro-sized particles can be toxic if they penetrate the skin. We have divided the Best Buy companies into those that use nano-particles and those that use micronised (non-nano). Y e th azine However, EWG stress that their position would be different if the product analysed did not protect human health like sunscreen does, and that sprays and powders containing nano-particles should be avoided. the regulatory framework for assessing their use continues to lag far behind developments in the cosmetics sector. In our last Buyers’ Guide to sunscreens we recommended that, in line with the precautionary principle, products containing nano-particles are avoided. Since then, however, the well-regarded Environmental Working Group (EWG) have begun to recommend some products that may contain nano-sized ingredients. They found that consumers using sunscreens without zinc oxide and titanium dioxide were being exposed to an average of 20% more UVA radiation, with associated health impacts. They were also being exposed to a greater number of hazardous ingredients through the use of chemical sunscreens. The study concluded: “On balance, EWG researchers found that zinc and titanium-based formulations are among the safest, most effective sunscreens on the market based on available evidence. The easy way out of the nano debate would be to steer people clear on ag of zinc and titanium sunscreens with a call for more data. In the process, such a position would implicitly recommend sunscreen ingredients that don’t work, that break down soon after they are applied, that offer only marginal UVA protection, or that absorb through the skin”.2 i c al c www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 18 17 13.5 16.5 Physical or mineral sunscreens are less likely to cause skin irritations and allergic reactions as they are not absorbed into the skin. However, this means that they can leave a residual white coating on the skin – possibly not the look you are after on the beach! The smaller the particle size the less chance there is of looking luminous. Despite the fact that they can now be Best Buys, companies that use nanoparticles in their sunscreens will still lose half a mark in our Pollution and Toxics category. The environmental impacts of nanoparticles are not fully understood, but concerns have been raised about the build up of this novel pollutant in ecological systems. Once again research seems to be lagging way behind technological developments. 16.5 13 © Sofiaworld | Dreamstime.com References (all websites viewed July 2012) 1 http://bx.businessweek.com/loreal-group/ 2 http://www.ewg.org/nanotechnology-sunscreens 3 http://www.skincancer.org/prevention/uva-and-uvb/ understanding-uva-and-uvb 4 http://breakingnews. ewg.org/2012sunscreen/ 19 Cosmetics & Toiletries SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org Essential Care [O,S,Vg] Badger [O,S] Supply Chain Management Faith in Nature [S,Vg] 16.5 Honesty [S,Vg] 16.5 Pure Nuff Stuff [S,Vg] 16.5 Neal’s Yard [F,O,V,S] 14.5 H 13.5 H Urtekram Fairtrade [F,O] 13.5 H h h H h H h h h h h H H h h h h H Avalon Organics [O,S] 10.5 h h h H h h H Wrights, Cidal, Yardley 9.5 h h H h H h h h H H H h h h H h H 9 9 H H H H h h h h H h H Nivea 6.5 H h h h H H H h H Origins 6.5 H h h h H H H h H 6 H h h h H h h H H h H H h H H Company Ethos Product Sustainability E 2 • Company Ethos: e E = full mark, = half mark. • Product Sustainability: Maximum of five positive marks. COMPANY GROUP Yaoh Ltd Essential Care (Organics) Ltd WS Badger Caurnie Soap Co 1.5 Faith Products Ltd 1.5 Honesty Cosmetics 1.5 Pure Nuff Stuff 1.5 Thos. Bentley & Son 0.5 Little Satsuma 1 Triangle Wholefoods 3 Neal’s Yard Remedies 2 Weleda AG 1 Lush Cosmetics Ltd 2 Urtekram International 1 Living Nature 1.5 Hain Celestial Group Kao Corporation h 1 H H 5.5 USING THE TABLES Lornamead h Boots Anti-Social Finance h 8.5 h e e ClarinsMen Palmolive, Sanex Political Activity Boycott Call Genetic Engineering Arms & Military Supply e h 8.5 Dettol 1.5 e Avon Body Shop e e H h H Lush [Vg] Original Source [F] 2.5 e h 14.5 h Molton Brown e e Suma [S,Vg] 11 3 e 16 14 e e 15.5 Simple bar soap +ve e Little Satsuma [Vg] Living Nature [S] Politics Positive ratings (+ve): Irresponsible Marketing Workers’ Rights Human Rights Animal Rights Animal Testing People 17 16.5 Weleda [S,V,O] Animals 17.5 Caurnie [S,Vg] Bentley Organics [O,S] Habitats & Resources = middle rating, empty = top rating (no criticisms). Pollution & Toxics 18 = bottom rating, Climate Change Yaoh [O,S,Vg] H h Environmental Reporting BRAND Ethiscore (out of 20) Ethiscore: the higher the score, the better the company across the criticism categories. Nuclear Power Environment USING THE TABLES Factory Farming Soap and shower gel H h h H PZ Cussons plc Avon Products Inc h Financiere h Beiersdorf AG h Estée Lauder Companies h h Lornamead/Unilever H H H L’Oréal 5 H h H h H H H h h H H Reckitt Benckiser 4.5 h h h h H H H H H h h H h Colgate-Palmolive 4 H h h h h H H H h H H Neutrogena, Johnson’s 3.5 h Superdrug 2.5 H Dove 1.5 Olay 0.5 h H H H H H H H H H H H h H h H h H KKR & Co. L.P. H H H H Johnson and Johnson h H H Cheung Kong Holdings h H H H H H H H H h h H H H Unilever h H h H H H H H H H H H H H Procter & Gamble Company [Vg] = Vegan [V] = Vegetarian [S] = lower toxic chemicals [O] = organic [F] = Fairtrade All the research behind these ratings is on www.ethicalconsumer.org References (websites viewed July 2012) 1 http://www.bradtop100.co.uk/05-Cosmetics-Toiletries/ 2 Revision of European Ecolabel Criteria for Soaps, Shampoos and Hair Conditioners. Albert Ferrer et al January 2012 3 http://gogreenhk.wordpress.com/2011/09/20/the-truth-bar-soap-vs-liquid-body-wash/ 4 http://www.davidsuzuki. org/issues/health/science/toxics/chemicals-in-your-cosmetics---sodium-laureth-sulfate/ 20 Cosmetics & Toiletries www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 T ag i c al c he table opposite covers bars of soap, liquid handwash, su mer m shower gel, body wash and baby bath & shampoo. on Liquid soap is king. Less than 20 per cent of Best Buys for bars of soap are Essential Care, ‘personal cleansers’ sold in Britain are now soap bars.1 Badger, Caurnie, Faith in Nature, Honesty, Tests have shown that this change in washing habits has Pure Nuff Stuff, Bentley Organics, Little BE nothing to do with hygiene, with good old fashioned soaps Satsuma, Suma, Neal’s Yard, Lush, Urtekram U S T B being just as effective than their mutated liquid offspring.2 and Weleda. Instead, some have suggested that this change has come about For handwash, shower gel or body wash Best due to clever marketing and a higher profit margin. The switch Buys are Essential Care, Yaoh, Faith in Nature, Honesty, Pure from bar soap to liquid has apparently been driven by a fear of Nuff Stuff, Bentley Organics, Neal’s Yard, Urtekram, Caurnie, other people’s bacteria lurking on bar soap. Companies have Lush and Weleda. encouraged the notion that using liquid soap was more hygienic. For baby toiletries Best Buys are Essential Care, Badger, Most liquid soaps are made from petroleum, while many Humphrey’s Corner, Pure Nuff Stuff, Bentley Organics, Little traditional bar soaps are made of ‘saponified’ animal fat and/or Satsuma, Neal’s Yard, Lush, Weleda and Urtekram. plant oils.3 A comparison carried out by US website DailyFinance showed 17 18 that washing with the recommended amount (2 teaspoons) of a branded body wash costs 11p per wash while bathing with a soap 17.5 bar costs just over 0.07p per wash. Y e th azine Sustainability 16.5 Greater use of liquid soap has been highlighted as a poor direction to be going in from a sustainability point of view for a wide range of reasons. Here are a few: Heavier: Containing lots of water, liquid soaps are likely to be heavier than bar soap, resulting in a higher carbon footprint for transportation. More packaging: Packaging for body washes and liquid soaps tend to be plastic bottles that end up in landfill or our oceans. Compared with a thin wrapper or no wrapper for soap bars this is a retrogressive step. Petrol: Most liquid soaps are made of petroleum and need emulsifying agents and stabilizers to maintain their consistency.3 Damage aquatic life: What you use on your body ends up in the water system. Detergents may contain of harmful substances that can bioaccumulate in living organisms. Who makes what? (ordered by ethiscore) Essential Care Yaoh Badger Bentley Organics Caurnie Faith in Nature Honesty Pure Nuff Stuff Little Satsuma Suma Neal’s Yard Lush Urtekram Bars of soap ü ü ü ü ü ü ü ü ü ü ü ü Weleda ü Living Nature ü Avalon Organics Wrights, Cidal Avon ClarinsMen Original Source Molton Brown Origins Handwash/ liquid soap ü ü Shower gel/ body wash ü ü ü ü ü ü ü ü ü ü ü Baby bath & shampoo ü ü ü ü* ü ü Dove Handwash/ liquid soap ü ü ü ü ü ü ü Olay ü ü ü ü ü ü ü Shower gel/ body wash ü Baby bath & shampoo ü ü ü ü ü ü ü ü ü ü ü ü ü Other brands not on the table ü ü ü ü ü ü ü ü Unilever also makes: Lux, Lynx and Radox handwash & shower gels; Pears & Lifebuoy soaps, Simple handwash. Procter & Gamble also makes: Camay soap. Estée Lauder also makes: Aveda body wash. PZ Cussons also makes: Imperial Leather soap, handwash and shower gel & Carex handwash and shower gel. Hain Celestial also makes: JASON baby & kids toilerties. ü ü ü ü ü ü ü ü ü Nivea Dettol Body Shop Palmolive/Sanex Boots Neutrogena/ Johnson’s Superdrug Bars of soap ü ü ü ü ü * = Humphrey’s Corner brand 21 Cosmetics & Toiletries One Voice SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org Wendy Higgins from Humane Society International (UK) explains why animal testing of cosmetics is still going on and what people can do to campaign against it. D One Voice espite the fact that animal tests for cosmetics ended in the United Kingdom in 1997, and have been banned by law across the European Union since 2009, laboratory animal suffering for the beauty industry still continues. In laboratories in countries such as China, the United States, India and Russia, cosmetic chemicals are still being rubbed onto the sensitive and shaved skin of guinea pigs, dripped into the eyes of rabbits and force-fed into rats’ stomachs. These tests can last for days, weeks or even months. In some countries even the widely condemned “lethal dose” test is still used, in which animals are forced to swallow massive amounts of a cosmetic chemical to find out the dose that causes death. Tests like these can cause immense suffering and distress – and are increasingly seen as a poor predictor of toxicity in humans. Across Europe, animal testing for cosmetics is banned under the EU’s Cosmetics Directive, but cosmetics companies can still test on animals in other countries and sell those products back to the EU market. The same EU Cosmetics Directive was written to contain a sales ban on the sale of cosmetics containing ingredients tested on animals in non-EU countries Originally due for implementation in 1998 and despite being passed as law, its implementation has continually been delayed. Now that it is due to come into force in March 2013, policy makers are once again considering delaying or weakening its provisions. Humane Society International has been leading a campaign in Europe to see the ban implemented in full and on schedule, and recently joined forces with Lush Handmade Cosmetics to deliver more than 350,000 petition signatures to the European Commission to save the 2013 ban. Beauty without animal cruelty Cosmetics companies can stop animal testing immediately and still produce new, safe and exciting beauty products by manufacturing the cruelty-free way. Firstly, companies can use ingredients that are already known to be safe, of which there are thousands. These ingredients don’t require any new testing. Secondly, if companies need to produce new data about an ingredient, they can use available non-animal test methods. More than 40 non-animal tests have been validated for use such as EPISKIN, EpiDerm and SkinEthic and the 3T3 neutral red uptake test. These modern alternatives can offer results that are more relevant to people, often more cheaply and efficiently too. Shopping cruelty-free Leaving animal tested cosmetics on the shop shelf is one of the simplest ways 22 you can support the Be Cruelty-Free campaign. However, there are lots of animal testing claims out there, so it can be confusing for consumers to make sense of it all. Statements like “against animal testing” could simply indicate a corporate aspiration rather than a cast-iron commitment, and a label stating that “this product has not been tested on animals” could be hiding the fact that some or all of the product’s ingredients have been animal tested even if the final product hasn’t been. One of the best ways to cut through the myriad claims is to buy cosmetics from companies whose commitment you can trust, such as those certified by the Leaping Bunny Global Shopping Guide. In the UK the leaping bunny guide is produced by the BUAV and is downloadable from www.gocrueltyfree.org/shopper. In Ethical Consumer, the buyers’ guide tables also have a column on Animal Testing which indicates whether or not companies have a credible commitment to avoiding animal testing. ‘Be Cruelty-Free’ global campaign Animal testing is a global issue, and ethical consumers from all around the world are invited to get active in the cause. HSI recently launched Be Cruelty-Free – the largest-ever global campaign to end animal testing for cosmetics. Be CrueltyFree is reaching out to consumers and policy makers in Europe, India, Australia, Canada, New Zealand, the United States and beyond to achieve a world where no animal has to suffer for the sake of cosmetics such as lipstick or shampoo. Please sign HSI’s global cruelty free pledge at www.hsi.org/becrueltyfree Cosmetics & Toiletries www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 i c al c e th T 14 Weleda [S,V,O] 14 Lush [Vg] Lavera [S,O,Vg] H 13.5 H h h h h H h h h H Urtekram [O] 12.5 H h h h H h h h Product Sustainability Anti-Social Finance Political Activity Boycott Call Genetic Engineering Company Ethos e E e e USING THE TABLES • Company Ethos: e E = full mark, = half mark. • Product Sustainability: Maximum of five positive marks. COMPANY GROUP Green People Company Ltd 1.5 Faith Products Ltd 0.5 Little Satsuma 1 Crystal Spring 2 Weleda AG 1 Lush Cosmetics Ltd 3 Laverana Gmbh 1 Neal’s Yard Remedies 1 Urtekram International 0.5 Severn Delta H h h h H 10.5 H h h h h H h 1 Wala-Stiftung h 1 Hain Celestial Group 10 h h h H h h H 9.5 H h h H h H Avon 8.5 h h H H h Mitchum 8.5 H h h H h H Arrid 8 H h h H h H Nivea 6.5 H h h h H H H h H H h h h H H H 6 5.5 Tom’s of Maine [S,V] 5.5 Garnier 4.5 Sanex, Soft & Gentle 4.5 4 Boots 3 E Amplex Body Shop Arms & Military Supply Irresponsible Marketing h JASON [S,V] Right Guard, Natrel Plus E E H 12.5 H Dr Hauschka [S] Y Supply Chain Management Workers’ Rights Human Rights h H 13.5 Positive ratings (+ve): e h 11 +ve e Neal’s Yard [V,S] PitRok [Vg] Politics h H 13 16.5 stones which are made from potassium or ammonium alum, a natural mineral salt that inhibits the growth of the bacteria responsible for body odour.3 They come as either a solid stone on its own or in a push-up stick, or in liquid form. Of our Best Buys, Faith in Nature, Little Satsuma, Salt of the Earth and Urtekram make push-up stick varieties of crystal deodorant stones. People Animal Rights 15.5 Salt of the Earth [S,Vg] The Best Buys are Green People , Faith in Nature, Little Satsuma, Salt of the Earth, Lush solid bars, Lavera, Neal’s Yard, Urtekram and Weleda. 17 Factory Farming Little Satsuma [Vg] S T BU Animals Animal Testing 16.5 Habitats & Resources Faith in Nature [S,Vg] = middle rating, empty = top rating (no criticisms). Pollution & Toxics 17 = bottom rating, Climate Change Green People [O,S,Vg] H h Environmental Reporting BRAND Ethiscore (out of 20) Ethiscore: the higher the score, the better the company across the criticism categories. Nuclear Power Environment azine BE here are two main types of deodorant: simple deodorants that eliminate odour, and antiperspirants which contain ingredients (most commonly aluminium or aluminum chlorohydrate) that block pores to reduce sweating. Some research suggests that aluminum-based compounds may be absorbed by the skin and cause oestrogen-like (hormonal) effects like breast cancer.1 Other studies suggest that blocked pores result in the spread of cancer-causing toxins.2 The following brands are aluminium free: Green People, Faith in Nature, Little Satsuma, Weleda, Neal’s Yard, Salt of the Earth, Urtekram, Lavera, Lush, Pitrok, Dr Hauschka. A natural method of deodorising is to use deodorant crystal USING THE TABLES su mer m ag Deodorants on Dove, Lynx * 1.5 Gillette ** 0.5 H h h H H h h h H H H H H h H H Lornamead h MacAndrews & Forbes H h Church & Dwight H h Beiersdorf AG h h Henkel KGaA H H H L’Oréal h H H h h H h 1 Colgate-Palmolive L’Oréal H H H H h H h h h h H H H h H H h Avon Products Inc h h H H H H h h h H H H H H h h h H h h Colgate-Palmolive H KKR & Co. L.P. h H H H H H H H H h h H H H Unilever h H h H H H H H H H H H H H Procter & Gamble Company * Unilever also makes Rexona, Simple, Sure ** Procter & Gamble also makes: Old Spice [Vg] = Vegan [V] = Vegetarian [S] = lower toxic chemicals [O] = organic All the research behind these ratings is on www.ethicalconsumer.org References 1 www.cancer.gov/cancertopics/factsheet/Risk/AP-Deo 2 www.ethicalconsumer.org/buyersguides/healthbeauty/deodorant.aspx 3 www.highlandsoaps.com/natural-deodorant-stone-160g-cat-13-subcat-64-product-598 23 Cosmetics & Toiletries SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org Yaoh [O,S,Vg] Essential Care [O,S,Vg] Green People [O,S,Vg] Caurnie [S,Vg] Pure Nuff Stuff [S,Vg] 16.5 14.5 H Suma [S,Vg] 14.5 h Supply Chain Management h H h H 13.5 H h h Urtekram Fairtrade [F,O] 13.5 H h h H h h h h h H h H 13 H Neal’s Yard [S,V] 12.5 H Logona [S] 11.5 H 11 H 10.5 h h h h E h Product Sustainability Company Ethos Anti-Social Finance Political Activity Boycott Call Genetic Engineering Arms & Military Supply e H Lush [Vg] Avalon Organics [O,S] Irresponsible Marketing Workers’ Rights Human Rights Animal Rights Animal Testing Habitats & Resources 14 14 Green People Company Ltd e H e E e E e Caurnie Soap Co 1.5 Faith Products Ltd 1.5 Honesty Cosmetics 1.5 Pure Nuff Stuff 1.5 Thos. Bentley & Son 0.5 Little Satsuma 2 Bioforce AG 1 Triangle Wholefoods 1 Crystal Spring 2 Weleda AG 1 Lush Cosmetics Ltd 2 Urtekram International 3 Laverana Gmbh 1 Neal’s Yard Remedies h h h H 1 Logocos Naturkosmetik h h h h H 1 Living Nature Natural h h H h h H h 1.5 Hain Celestial Group JASON [S,V] 10 h h h H h h H h 1 Hain Celestial Group Vosene, Finesse 9.5 H h h H h H Lornamead John Frieda 9 H H h Kao Corporation H H h H h h Avon Products Inc h h h H h H h Financiere H h h H h H H h Church & Dwight 8 H h h h H h H H 6.5 H h h h H H H h H h Estée Lauder Companies H H h h h H H H h h Henkel KGaA H H H L’Oréal h h h H Avon 8.5 h ClarinsMen 8.5 H Batiste Dry 8 Charles Worthington Origins & Aveda Schwarzkopf & Gliss 6 Body Shop 5.5 Elvive, Garnier Fructis 4.5 Palmolive 4.5 Boots 4 h h h H H h H H H H h H H H H h h h H H H H H Neutrogena, Johnson’s 3.5 h Superdrug 2.5 H TRESemmé 1.5 Pantene 0.5 H H H H H H H H H H H h H h H h h H H H H H H H H h h H H H H h H h h h h H H H h H H h H h H H H H H H H PZ Cussons plc h H h Colgate-Palmolive H KKR & Co. L.P. H H H H H L’Oréal h H Johnson and Johnson Cheung Kong Holdings h H H H Unilever H H H H Procter & Gamble Company [Vg] = Vegan [V] = Vegetarian [S] = lower toxic chemicals [O] = organic [F] = Fairtrade All the research behind these ratings is on www.ethicalconsumer.org 24 Yaoh Ltd 3 e H COMPANY GROUP 1.5 e h = half mark. • Product Sustainability: Maximum of five positive marks. e e A. Vogel [O,S] = full mark, Essential Care (Organics) Ltd e h e E 2.5 E 16 3 • Company Ethos: e e 15.5 USING THE TABLES Positive ratings (+ve): h Little Satsuma [Vg] Living Nature [S] +ve e 17 16.5 Lavera [S,O,Vg] Politics 16.5 16.5 Weleda [S,V,O] People 18 Faith in Nature [S,Vg] Natural Empathy [S,Vg] Animals 17.5 Honesty [S,Vg] Bentley Organics [O,S] Pollution & Toxics BRAND Climate Change = middle rating, empty = top rating (no criticisms). Environmental Reporting = bottom rating, Ethiscore (out of 20) H h Nuclear Power Environment USING THE TABLES Ethiscore: the higher the score, the better the company across the criticism categories. Factory Farming Shampoo Cosmetics & Toiletries www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 i c al c Y azine e th ag suppliers by targeting the high profile su mer m brands of Unilever and Nestlé on connected to these suppliers. The Best Buys are Palm oil certified as ‘sustainable’ Essential Care, Yaoh, by the RSPO came onto the Green People, Caurnie, BE market in 2008. How sustainable Faith in Nature, U S T B this Certified Sustainable Palm Honesty, Pure Nuff Stuff, Oil (CSPO) actually is, is a matter of Bentley Organics, Little debate. Critically, for example, there are Satsuma, A Vogel, Suma, Lush, no provisions for Greenhouse Gas (GHG) Urtekram Fairtrade, Lavera, Weleda emissions. The RSPO’s record in enforcing and Neal’s Yard. the standards has also been criticised. But even the RSPO’s most vocal critics 17 recognise the need to engage with the organisation and to push for strengthening the standards rather than rejecting them altogether. 14.5 Perhaps the only way to guarantee that the products you buy aren’t tainted by the impacts of palm oil production is to avoid the substance altogether. But this isn’t easy: 13.5 there are at least 30 different names for Lush make solid various substances which may have come shampoos in no from palm oil. packaging. Ingredients definitely derived from palm oil in the toiletries sector are: palm kernel oil, sodium palmate, sodium palm kernelate and Elaeis guineensis (its Latin name). Ingredients which may One of the most widely-used detergents have been derived from palm oil include and foaming agents in shampoos, liquid sodium lauryl sulphate, sodium laureth soap products and toothpaste is sodium sulphate, coco-glucoside, cetearyl alcohol, lauryl sulphate (SLS) and sodium laureth sodium palmitate, vegetable glycerin and, sulphate (SLES). There is some controversy helpfully, vegetable oil. about the safety of these ingredients but Avoiding palm oil Palm oil and its derivatives are found in a vast number of consumer products, and its use spans the cosmetics, food and household products sectors. Regular readers of Ethical Consumer will no doubt be familiar with the impacts of its production. Clearance of land to create lucrative palm-oil plantations has led to: • climate-disastrous destruction of peatland in Indonesia, • the deforestation of land crucial to the survival of the world’s remaining orang-utans in Malaysia and Indonesia, • the forced displacement of indigenous people throughout the global South. The Roundtable on Sustainable Palm Oil (RSPO) was formed in 2004 as a multistakeholder initiative to address some of these issues, but the negative impacts of palm oil production have continued. Members include NGOs such as the WWF, but also some of the worst culprits of palm-oil related abuses. Greenpeace has run some very successful campaigns against some of the worst palm oil Other shampoo brands not on the table Unilever also makes: Dove, Sunsilk, Alberto Balsam, VO5, Bedhead, Lux, Pears, Simple, Timotei. Procter & Gamble also makes: Aussie, Head & Shoulders, Herbal Essences, Wash & Go, Wella, Sassoon. PZ Cussons also makes: Imperial Leather. L’Oreal also makes: L’Oreal, Redken. SLS and SLES Palm oil rankings We rank companies on our tables as follows: • Companies score best for their palm oil polices if 100% of their palm oil is certified organic or Certified Sustainable Palm Oil (CSPO), or if they purchase Greenpalm certificates to cover 100% of their supply chain, or if they don’t use it at all. We also make an allowance for small companies (turnover below £8 million) that make some commitments to sustainable palm oil. • If none of these conditions are met we deduct half a point in the Habitats & Resources, Human Rights and Climate Change categories. All the companies without marks in these columns will have some effective policy towards palm oil. Ethical Consumer has a list of companies that we score best for their palm oil policies on our website at www. ethicalconsumer.org/shoppingethically/ palmoilfreelist.aspx. fears over its link to cancer seem to have been largely discredited, though you’ll still find many supporters of this theory on the web. The Skin Deep website gives SLS and SLES hazard ratings of 1-2 (low hazard) and 4 out of 10 (moderate hazard) respectively. The website states that research studies have found that exposure to the ingredient itself, not the products that contain it, have indicated potential health risks. Perhaps the strongest concerns linked to the substances are those of skin, lung or eye irritation, which are related to the concentrations in which they appear in products. Ammonium Lauryl Sulphate is a milder and safer form which some of the alternative producers use. It is still an irritant but only half as much as SLS and SLES and its molecule size is larger ensuring that these molecules do not penetrate the skin. We did not include SLS specifically in our list of ‘ingredients to avoid’ (see page 26) because, unlike the other six ingredients, it is not in all the products that we cover in this guide. 25 Cosmetics & Toiletries SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org T he Environmental Working Group is an excellent research and campaign organisation based in the US. It focuses on publishing information on toxic contaminants in consumer products and in the environment. It produces the Skin Deep database (www.ewg.org/skindeep) which holds information on thousands of cosmetics and their ingredients and is freely accessible to the public. There are many thousands of ingredients in this sector, but we chose six problem ones to focus on for this report as they were prevalent across all the different cosmetics and toiletries products being reviewed. We asked all the companies in this report whether they had policies on their use. On our ranking tables, companies that avoided all 6 of them were given a full Product Sustainability mark. Companies that avoided 2-5 of them were given half a Product Sustainability mark. Some consumers buying cosmetics may want to look for them on the label and try to avoid them. Parabens Found in most cosmetics, especially shampoos, they are a preservative designed to stop bacteria spoiling cosmetic products. The most common parabens used in cosmetic products are methylparaben, propylparaben, and butylparaben. Parabens are linked to cancer, endocrine disruption, reproductive toxicity, immunotoxicity, neurotoxicity and skin irritation.1 They can be absorbed through the skin, blood and digestive system and have been found in nearly all urine samples from U.S. adults.2 Methylisothiazolinone (MIT) Methylisothiazolinone (MIT) is becoming increasingly popular as a preservative to replace parabens. Big brands, like Nivea’s Pure and Natural range, may claim to be free from parabens but use methylisothiazolinone instead. Like parabens, it is a preservative that can also release detectable levels of the known human carcinogen formaldehyde.1 Even some products claiming to be 26 certified organic use this preservative, as certain percentages of non-organic material are allowed by some certifying bodies. Researchers say the early test tube evidence suggests that prolonged exposure to MIT, or exposure to the chemical at high concentrations, could damage the nervous system.3 Petrolatum and mineral oil Mineral oils listed as petrolatum (petroleum jelly) or C-18 derivatives are frequently used in personal care products such as lipsticks, lubricants, baby lotions and oils. While petrolatum on its own is not too harmful, it is often cheaply produced and the impurities/contaminants often found in petrolatum have been linked to several types of cancer.10 In the EU, all petroleum products in cosmetics must have their production process certified to ensure they don’t contain these carcinogenic impurities. Mineral oils are also known to clog pores, forming a barrier preventing skin from eliminating toxins. Repeated use can even set off skin conditions such as acne and dermatitis. It can also block the skin’s ability to moisturise itself, leading to chapped and dry skin, which are often conditions it is sold to alleviate. Plus, as an ingredient of the petroleum industry, their use contributes to the depletion of a non-renewable resource, not to mention the impacts of oil exploration, drilling, refining and transportation. Synthetic colours Synthetic colours used in cosmetics mostly come from coal tar but can also be derived from crude oil or other minerals.4,5 They contain heavy metal salts that may deposit toxins onto the skin, at the very least causing skin sensitivity and irritation. Some also contain carcinogenic arsenic and lead.6 However not all are harmful. The Skin Deep website lists a number of synthetic colours which, in their ranking system, range from 0 (safe) to 10 (very dangerous). Synthetic fragrances Synthetic fragrances are commonly used in personal care products and often contain as many as 200 ingredients. These ingredients are, however, considered to be trade secrets, so companies don’t have to tell us what they are. However, studies suggest a number of possible negative effects of the compounds used to create them including: • immune system damage • a cause and trigger asthma attacks • hormone disruption, which can affect development and fertility • a potential neurotoxin (chemicals that are toxic to the brain) • increase in the proliferation of oestrogen-responsive breast cancer cells • they have also been found to be toxic to aquatic life and can accumulate in the food chain.7 Propylene Glycol (PEG or PPG) Found in skin lotion, shampoo, conditioner, baby wipes, soap, make-up. Propylene Glycol is the main ingredient in anti-freeze and is usually listed on cosmetic labels as PEG or PPG.8 It is an alcohol which is added to beauty products that claim to hydrate skin, leaving it smooth and soft. However they are considered by many to be a toxin that causes skin rashes and persistent dry, flaky skin and eye irritation. The Environmental Working Group has also linked PEG to various forms of cancer.9 References 1 Skin Deep cosmetics database - www. cosmeticdatabase.com/ 2 Campaign for Safe Cosmetics - http://safecosmetics.org/article. php?id=291 3 http://www.lavera.com/education/ ingredient-watch/methylisothiazolinone-mit 4 http://www.lavera.com/education/ingredient-watch/ synthetic-colors 5 http://www.ewg.org/skindeep/ search.php?hq=FD%26C&search_group=everything &&showmore=everything&start=40 6 www.wen.org. uk/careful-beauty-explained/ 7 http://safecosmetics. org/article.php?id=222 8 http://www.channel4. com/4beauty/make-up-skin-care/skin-care/guide-tocosmetic-ingredients 9 http://www.lavera.com/ education/ingredient-watch/polyethylene-glycol 10 http://www.lavera.com/education/ingredient-watch/ mineral-oil-a-petroleum-jelly-petrolatum Cosmetics & Toiletries www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 Marketing to men Simon Birch explains why he’ll never fall for those male grooming ads. I’m a rubbish bloke. You want proof? Just check out my bathroom cabinet – here you’ll find a half-used bottle of shampoo, a tub of shaving cream and well, that’s about it as far as grooming products go. You see I’ve never fallen for any of the male grooming industry’s slick ad campaigns for what I consider to be nothing more than over-priced, stinky, toxic waste. Aftershave? Deodorant? Urgh! Not today or tomorrow thanks. And whilst some blokes might think that I might smell like a tramp, there’s nothing that a daily shower can’t sort out. Besides my other (big) objection to the grooming industry is the way in which their use is yet another stamp of corporate conformity. Who wants to smell exactly the same as a zillion other blokes? Excuse me but whatever happened to individuality? The bottom line is that I’d rather smell like the unique creation that is me than the product of some multi-nationals marketing and PR exercise thank you very much. The trouble is that whilst women have been targeted by the cosmetics industry ever since Cleopatra first over-used the eye-liner to hook hapless Mark Anthony, the potentially lucrative male market is now firmly on the radar of some of the biggest companies in the world and they don’t care how they hook us in. Take Unilever, the world’s third biggest consumer goods company and maker of Lynx deodorant. They’ve used their millions to establish Lynx as the leading male deodorant for teenage boys and young men. The problem is how they get their impressionable market to buy the stuff. Given what occupies the minds of most teenage blokes, Unilever have been flogging Lynx as a surefire way of making them instantly irresistible to the opposite sex. And not everyone’s been happy at some of their recent ads. Last year six raunchy Lynx adverts, one featuring lads’ mag pin-up Lucy Pinder, were banned by the Advertising Standards Authority after attracting more than 100 complaints whilst a shower gel advert, which was circulated in July 2011, attracted 113 complaints. The poster depicted a bikini-clad woman under a shower at a beach, with the headline: “The cleaner you are the dirtier you get.” The ASA said the adverts “were likely to cause serious or widespread offence”, particularly to members of the public accompanied by children, because it objectified women. Unilever defended the ads saying that Lynx advertising is tongue in cheek and that it is aimed at a youth market: “It’s how an adolescent boy would love the world to be but that everyone, including them, knows it is not going to be,” said Keith Weed, chief marketing officer at Unilever. Sure, this represents the more extreme end of the advertising market, but it typifies the lengths to which corporates are prepared to go to flog their rubbish. And it’s another reason why I’ll keep on smelling the way that nature intended. Vancouver-based anti-consumerist magazine, Adbusters, has produced a series of spoof ads like this one. 27 Cosmetics & Toiletries SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org 17.5 Inika [O,S,Vg] 16.5 Lush [Vg] 13.5 H Neal’s Yard [O,S,Vg] 13.5 H Supply Chain Management Politics +ve h h h h H Anti-Social Finance Boycott Call Genetic Engineering Arms & Military Supply e E 3.5 Essential Care (Organics) Ltd 2.5 Essential Care (Organics) Ltd 2.5 Inika e H • Company Ethos: e e h USING THE TABLES Positive ratings (+ve): Irresponsible Marketing Workers’ Rights Human Rights Animal Rights Factory Farming Animal Testing Habitats & Resources People Product Sustainability 18.5 Essential Care [O,S,Vg] Animals avoid ‘cheap’ products as often the quality of the products themselves isn’t so good. Because of my pale skin they can make me go a little orange! Marketing does try to capture the next ‘best thing’ so I do tend to try new, ‘better’ products each time as opposed to sticking to a regular brand. It is the desire to look the best and feel good about yourself that drives it, and often it feels like the cost is just something attached and that the ‘quality’ of the make-up technology is what counts – not whether it is natural or organic. Company Ethos Essential Care lipstick [F,O,S,V] Pollution & Toxics BRAND Climate Change = middle rating, empty = top rating (no criticisms). Environmental Reporting = bottom rating, Ethiscore (out of 20) H h Nuclear Power Environment USING THE TABLES Ethiscore: the higher the score, the better the company across the criticism categories. I don’t think wearing make-up is necessary but to my age group it is almost a vital necessity to ‘fit in’. I barely know any teenage girls who don’t regularly apply a layer foundation and mascara for school – some more liberally than others. I do tend to wear make-up every day except for rest days as I do suffer with ‘teenage skin’. It makes me feel a little more confident and does hide dark circles and blemishes fairly successfully! I tend to Political Activity I Emily Jackson, 18 n liberated 2012, women can do whatever they like. It’s all about choice – including the choice of whether to wear make-up or not. However, given the pressure of marketing and society’s expectations of women to look ‘good’, it’s interesting to examine women’s relationship with make-up. Does make-up feel like a necessity or a fun optional extra? We asked three young women about their relationship with make-up. E e E = full mark, = half mark. • Product Sustainability: Maximum of five positive marks. COMPANY GROUP 1 Lush Cosmetics Ltd 2 Neal’s Yard Remedies Lavera [S,O,Vg] 13 H h h h h h H Logona, Sante [S,Vg] 12 H h h h H Dr Hauschka [S,Vg] 11 H h h h h H Living Nature [S] 11 H h h h h H Avon 8.5 h Clarins 8.5 H h Revlon, Almay 8.5 H h h Rimmel 7.5 H Estée Lauder, MAC * 6.5 H h h h H Body Shop 5.5 H H h H H H Maybelline, L’Oreal * 4.5 H H h H H H H H H H L’Oréal 4 Boots 3 1.5 h 1.5 1 Laverana Gmbh Logocos Naturkosmetik Wala-Stiftung Living Nature Natural H H h H h h Avon Products Inc h h H h H h Financiere H h H h h h H h H H H h h h MacAndrews & Forbes H h Coty Inc H h Estée Lauder Companies H H H L’Oréal h H h h h h H H H h H H Superdrug 2.5 H H H H H H h H h H h Max Factor, Cover Girl 0.5 h h H h H H H H H H H H KKR & Co. L.P. H Cheung Kong Holdings H H H H Procter & Gamble Company h H * = L’Oreal also owns Garnier and Lancome. Estée Lauder also owns Origins and Aveda. [Vg] = Vegan [V] = Vegetarian [S] = lower toxic chemicals [O] = organic All the research behind these ratings is on www.ethicalconsumer.org 28 © Tina Rayna | Dreamstime.com Make-up Cosmetics & Toiletries www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 I recognise that wearing make-up isn’t necessary and I have the utmost admiration for my friend’s little sister who wears no make-up – but at the same time, I feel more attractive when i c al c azine Marnie Adamson, 16 ag Y I tend to wear make-up everyday at work to give me confidence. When you work surrounded by men you realize the best way to be listened to (and then heard if you are lucky) is to first make sure people acknowledge the way you look, and in a good way. Wearing make-up permits me to achieve this kind of feeling by hiding what I don’t want to be shown and focussing on what you want people to see. Basically, I want people to look me in the eye, so I will make my eyes more noticeable. I wouldn’t say it is totally necessary but it helps my confidence. It wouldn’t shock me if others didn’t wear it. My make-up habits change at the weekend for something more visual, with drawing and black line, and then it is more part of the clothes you are wearing, like an accessory. There seem to be two kinds of consumers: Those sensitive to special offers (e.g. ‘buy one get one free’) and those sensitive to health issues (e.g. ‘supplemented with vitamin E’). I would be more in the second category, ready to pay extra to gain something. Nowadays marketing is more and more clever, with marketing everywhere even where we least expect it. I wear make-up and that gives me su mer m confidence, which most of the time, on I severely lack. I’d almost argue that Essential Care lack of confidence can have much make-up is organic worse effects than wearing makeand mostly up every day. BE vegan and its U S T B I probably don’t worry about the lipsticks are also ethics of my make-up as much as I Fairtrade. should. I avoid products that have been tested on animals and my lip colours are 18.5 from a collection that helps to fund AIDS 16.5 and HIV treatment and research. My face wash, moisturiser and cleansing products are organic and from a company that Inika make-up is all organic seems like they would treat their workers and vegan. well. I don’t knowingly buy fair-trade Neal’s Yard make-up is organic and cosmetics but it would be nice to find out some of it is vegan. that they were. It isn’t so much advertising that sells 13.5 the product for me, but the reputation 13.5 of the company. If a company has a reputation of making good quality makeup and cosmetics, then I tend to buy their products as I trust that what I’m putting on my skin isn’t harmful or loaded with unnatural chemicals. Lush make-up is vegan except for Jackie Oates tinted moisturiser I would agree with many others that which contains honey. there is a lot of pressure, from advertising and also from the sheer weight of numbers of women and girls who do use make-up 13 in order to have ‘flawless skin’. For most, make-up is the way to achieve this. Lavera make-up On the other hand, I find is mostly organic putting make-up on fun. I guess and vegan. it is still the little girl inside me. When my friends and I go to parties or to clubs, I enjoy going to their houses and getting dressed and but simply having a good time with my doing make-up together. At friends. Would it still be a fun activity with that point, it’s not about making my friends if we didn’t all feel the need to myself prettier or feeling pressure put make-up on in the first place? e th Anne Laure, 26 L’Oréal: Get the lead out of lipstick! In the USA, in September 2007, the Campaign for Safe Cosmetics sent 33 lipsticks purchased in the US to an independent lab to be tested for lead. The two highest lead counts were both found in L’Oréal Colour Riche lipsticks. A new study by the Food and Drink Administration found lead in 400 lipsticks tested, with higher lead levels than ever reported in some of the most popular brands. The worst offender was L’Oréal USA, whose Maybelline Color Sensation and L’Oréal Color Riche lipsticks were #1 and #2 on the list. In fact, L’Oréal USA makes five of the 10 most contaminated brands in the FDA study. A brand-new report for the US Centers for Disease Control states that there is no safe level of lead exposure for children. That means we must protect women from lead exposure, since lead builds up in the body over time and easily crosses the placenta, where it can interfere with normal development of a foetus and cause irreversible health effects. According to the Campaign for Safe Cosmetics, lead is a proven neurotoxin linked to learning, language and behavioural problems such as lowered IQ, impulsiveness, reduced school performance, increased aggression, seizures and brain damage, anaemia, and, after long exposure, damage to the kidneys. Lead has also been linked to miscarriage, reduced fertility in men and women, hormonal changes, menstrual irregularities and delays in the onset of puberty in girls. You can send a message to L’Oréal demanding a public commitment to reformulate all L’Oréal and Maybelline lipsticks to ensure the lowest possible levels of lead. Go to www.safecosmetics.org 29 Cosmetics & Toiletries SEPTEMBER/OCTOBER 2012 www.ethicalconsumer.org Supply Chain Management Politics +ve Essential Care [O,S,Vg] 17 Green People [O,S,Vg] 17 Caurnie [S,Vg] 16.5 Faith in Nature [S,Vg] 16.5 Honesty [S,Vg] 16.5 Pure Nuff Stuff [S,Vg] 16.5 Bentley Organics [O,S] e e 16 14.5 H Neal’s Yard [O,F,S,Vg] 14.5 H Lavera [S,O,Vg] e e A. Vogel [O,S] Lush [Vg] E h 15.5 Weleda [S,V,O] h h e h e h 14 14 e H h h h H h h h h h h h H Urtekram [O] 12.5 H h h h H Logona [S] 11.5 H h h h H h h H h H Dr Hauschka [S,Vg] 11 H h h Living Nature [S] 11 H h h h 10.5 h Avalon Organics [O,S] E H H H e H 13.5 H 13 3 e Little Satsuma [Vg] Natural Empathy [S,Vg] e e 17.5 Badger [O,S] Product Sustainability 18 Company Ethos Anti-Social Finance Political Activity Boycott Call Genetic Engineering Arms & Military Supply SKINCARE Yaoh [O,S,Vg] h e E E e h 2.5 • Company Ethos: e E = full mark, = half mark. • Product Sustainability: Maximum of five positive marks. COMPANY GROUP Yaoh Ltd Essential Care (Organics) Ltd 2 WS Badger 3 Green People Company Ltd 1.5 Caurnie Soap Co 1.5 Faith Products Ltd 1.5 Honesty Cosmetics 1.5 Pure Nuff Stuff 1.5 Thos. Bentley & Son 0.5 Little Satsuma 2 Bioforce AG 3 Neal’s Yard Remedies 1 Crystal Spring 2 Weleda AG 1 Lush Cosmetics Ltd 3 Laverana Gmbh 1 Urtekram International 1 Logocos Naturkosmetik 1.5 Wala-Stiftung 1 Living Nature Natural h h H h h H h 1.5 Hain Celestial Group JASON [S,V] 10 h h h H h h H h 1 Hain Celestial Group Yardley, Lypsyl 9.5 H h h H h H h h h H Molton Brown 9 H H h Kao Corporation H h H h h Avon Products Inc h h H h H h Financiere h h h H H H h H h Estée Lauder Companies H H h H h Beiersdorf AG 8.5 h Clarins 8.5 H h Origins, Aveda 6.5 H Nivea 6.5 H h h h H Body Shop 5.5 H h H h H L’Oreal, Garnier Boots 5 4 h H 4.5 Lornamead H Avon E45 H H H h H H H H 3.5 h Superdrug 2.5 H Dove, Ponds, Simple 1.5 Olay 0.5 h H H h H h H H H H H h h h h H H H h H H Neutrogena, Johnson’s H H H H h H H H H H L’Oréal Reckitt Benckiser H H H L’Oréal H KKR & Co. L.P. H H H H Johnson and Johnson h H Cheung Kong Holdings h H H H H H H H H h h H H H Unilever h H h H H H H H H H H H H H Procter & Gamble Company H H H H H h H h H h H [Vg] = Vegan [V] = Vegetarian [S] = lower toxic chemicals [O] = organic [F] = Fairtrade All the research behind these ratings is on www.ethicalconsumer.org 30 USING THE TABLES Positive ratings (+ve): Irresponsible Marketing Workers’ Rights Human Rights People Animal Rights Animals Animal Testing Habitats & Resources BRAND Pollution & Toxics = middle rating, empty = top rating (no criticisms). Climate Change = bottom rating, Environmental Reporting H h Ethiscore (out of 20) Ethiscore: the higher the score, the better the company across the criticism categories. Nuclear Power Environment USING THE TABLES Factory Farming Skincare & shaving products Cosmetics & Toiletries Supply Chain Management Politics +ve Weleda [S,V,O] 14 H Lush [Vg] 13.5 H Neal’s Yard [O,S,Vg] 13.5 H Lavera [S,O] Living Nature [S] Avalon Organics [O,S] h h H h h h h H h h H h Product Sustainability 16.5 Company Ethos Anti-Social Finance Political Activity Boycott Call Genetic Engineering Arms & Military Supply SHAVING GEL AND FOAMS Pure Nuff Stuff [S,Vg] USING THE TABLES Positive ratings (+ve): Irresponsible Marketing Workers’ Rights Human Rights People Animal Rights Animals Animal Testing Habitats & Resources Pollution & Toxics BRAND Climate Change = middle rating, empty = top rating (no criticisms). Environmental Reporting = bottom rating, Ethiscore (out of 20) H h Nuclear Power Environment USING THE TABLES Ethiscore: the higher the score, the better the company across the criticism categories. Factory Farming www.ethicalconsumer.org SEPTEMBER/OCTOBER 2012 e 1.5 e E e E • Company Ethos: e E = full mark, = half mark. • Product Sustainability: Maximum of five positive marks. COMPANY GROUP Pure Nuff Stuff 2 Weleda AG 1 Lush Cosmetics Ltd 2 Neal’s Yard Remedies 2 Laverana Gmbh 12 H h h h 11 H h h h h H 1 Living Nature Natural 10.5 h h h H h h H h 1.5 Hain Celestial Group h h H h h H h 1 Hain Celestial Group H H h Kao Corporation H H h H h h Avon Products Inc h Financiere JASON [S,V] 10 Molton Brown 9 h h h h H Avon 8.5 h ClarinsMen 8.5 H h h h H h H Original Source 8 H h h h H h H H Clinique, Aveda 6.5 H h h h H H H h H h Estée Lauder Companies Nivea 6.5 H h h h H H H h H h Beiersdorf AG Body Shop 5.5 H H h H H H H H H L’Oréal L’Oreal Men Expert 4.5 H H h H H H H H H H L’Oréal Palmolive 4.5 Boots 4 Superdrug 2.5 Simple 1.5 Gillette 0.5 h h h h h H H H H H h H h h h h H H H h H H H H H H H H h H h H h h H H H H H H H H h h h H h H H H H H H H h H h H PZ Cussons plc h Colgate-Palmolive H KKR & Co. L.P. H Cheung Kong Holdings h H H H Unilever H H H H Procter & Gamble Company [Vg] = Vegan [V] = Vegetarian [S] = lower toxic chemicals [O] = organic on su mer m ag th i c al c All the research behind these ratings is on www.ethicalconsumer.org Y e azine Skincare 18 Best Buys are Yaoh, Essential Care, Badger, Green People, BE Caurnie, Faith in Nature, Honesty, S T BU Pure Nuff Stuff, Bentley Organics, Little Satsuma, A.Vogel, Neal’s Yard, Natural Empathy, Weleda, Lush, Lavera and Urtekram. Neal’s Yard and Lush have their own high street shops and the others are available from health food shops or by mail order. Lush make skincare bars with no packaging. Other brands not on the skincare table Unilever also makes: Lux, St Ives, Vaseline. Johnson & Johnson also makes: Johnson’s Baby, Aveeno, RoC. Estée Lauder also makes: Clinique, Estée Lauder. L’Oreal also makes: Biotherm, Lancome, Vichy. Kao Corporation also makes: Bioré, Jergens. 17 16.5 Shaving gel and foams The Best Buys are Pure Nuff Stuff, Neal’s Yard, Weleda, Lavera and Lush. 31 Cosmetics & Toiletries – The stories behind the company ratings A Vogel Neem Shampoo Owned by Bioforce AG Roggwil TG Bioforce AG Roggwil TG, Communications Manager, Bioforce AG, Grunaustrasse, Postfach 76, Roggwil, CH9325, Switzerland Environment Environmental Reporting Worst ECRA rating for environment report (June 2012) In June 2012 Ethical Consumer sent Bioforce AG a questionnaire including a question regarding its environmental policies. No response was received. Ethical Consumer searched its website and found no reports relating to the company’s environmental impact. Under the aims of the company it stated that it was to provide effective natural remedies which respected nature. It stated that its medicinal plants originated from its own cultivations, managed by contract farmers. The plants in its cultivation fields originated from the company’s own seeds and were cultivated according to the strict guidelines of BIO-SUISSE i.e. without the use of fertilisers, insecticides, herbicides or fungicides. However the company did not have any quantified dated environmental targets, nor was there any information regarding the company’s environmental impacts. Bioforce, therefore, did not fulfil the conditions required by ECRA for environmental reporting for a company with a turnover above £8m and therefore received a worst rating in this category. (ref: 1) Animals Animal Testing Middle ECRA rating for animal testing policy (July 2012) A search of Bioforce international website, www.bioforce.com, by Ethical Consumer in July 2012 found a statement which stated that the company did not test its products on animals nor did obtain raw materials from suppliers which had engaged in such work. Because there was no fixed cut off date, the company receives our middle rating. (ref: 1) People Human Rights Operations in oppressive regimes (information only) (June 2012) The Bioforce website, www.avogel.ch, stated that company had a partner company and a production plant in India. India at the time of writing was considered by Ethical Consumer to be an oppressive regime. (ref: 1) Positive policy regarding palm oil sourcing (July 2012) The Bioforce UK website, www.bioforce.co.uk, viewed by Ethical Consumer in July 2012, stated that A.Vogel Low Sodium Plantaforce vegetable stock concentrate had come from sustainable sources. It stated that its palm oil production was audited by ProForest, a company working with natural resource management. ProForest certified production in accordance with the Migros Criteria for environmental and social best practices for Oil Palm Plantations, which was endorsed by WWF. The company was considered to have an effective policy on palm oil sourcing. (ref: 2) Supply Chain Management Worst rating for supply chain policy (June 2012) In June 2012 Ethical Consumer sent Bioforce AG a questionnaire which asked for its policies on supply chain management. No response was received. Ethical Consumer searched its website and found no policy documents relating to the company’s supply chain management or to workers’ rights. Due to the lack of information provided by the company with regards to the company’s supply chain, it received Ethical Consumer’s worst rating for supply chain management. (ref: 1) Politics Company Ethos All ingredients from organic plants (2012) Bioforce’s website (www.avogel.co.uk), viewed in July 2012, stated “all plants from which A.Vogel products originate either from our own cultivation or from organic farmers working on contract” (Bioforce does business as “A.Vogel”). The organic accreditation was provided by Bio Suisse. The company’s products were all innovative environmental alternatives. (ref: 3) Product sustainability Organic Product Organic Product (July 2012) Bioforce’s website (www.avogel.co.uk), viewedin July 2012, stated “all plants from which A.Vogel products originate either from our own cultivation or from organic farmers working on contract” (Bioforce does business as “A.Vogel”). The organic accreditation was provided by Bio Suisse. (ref: 1) Other Sustainability Features Toxic free (July 2012) According to the Vogel website viewed by Ethical Consumer in July 2012 the company did not use the following chemicals in Neem Shampoo which potentially pose a risk to the environment and human health: * Synthetic Fragrance and Dyes * Methylchloroisothiazolinone and Methylisothiazolinone * Parabens or “-paraben” * “PEG” * Petrochemicals This product therefore received a positive mark under ECRA’s product sustainability category. (ref: 1) Aquafresh toothpaste & mouthwash Owned by GlaxoSmithKline plc GlaxoSmithKline plc, 980 Great West Road, Brentford, Middlesex, TW8 9GS GlaxoSmithKline plc is owned by BNY (Nominees) Ltd (15%) which is owned by Bank of New York Mellon (15%) Bank of New York Mellon, One Wall Street, New York, NY 10286, USA Environment Environmental Reporting Best ECRA rating for environmental reporting (June 2012) In June 2012 Ethical Consumer sent GlaxoSmithKline a questionnaire regarding its environmental reporting. No response was received. Ethical Consumer searched its website and found GSK’s Corporate Responsibility 2011 report. On page 83 the company outlined several quantified dated targets, which included targets for carbon, water, waste and environmental stewardship. One of the company’s long term goals was to make its entire value chain carbon neutral by 2050 and it was part of the Carbon Disclosure Project. The report detailed the main environmental impacts throughout the company’s supply chain. It discussed the impact of waste products, for which it had set up schemes for recycling and reusing (for example collecting old inhalers). The report was independently verified by SGS United Kingdom Ltd which included environmental data contained in the ‘our planet’ section. GlaxoSmithKline therefore received Ethical Consumer’s best rating for environmental reporting. (ref: 4) Climate Change Worst ECRA rating for palm oil policy (June 2012) In June 2012 Ethical Consumer emailed GlaxoSmithKlein and attached a questionnaire that included a request for the company’s policy in relation to palm oil sourcing. The company did not respond. No related information could be found on its website, www.gsk.com, and it was not listed as a member of the Roundtable on Sustainable Palm Oil on the organisation’s website. The company was a major manufacturer of toothpaste, which often contained Sodium Laureth Sulfate derived from palm oil. Ethical Consumer expected a company of its size to have a policy specifically addressing palm oil sourcing. In the absence of this and as a result of the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 5) Pollution & Toxics Research using nanotechnology (July 2012) The document ‘GSK Public Policy Position Statement on Nanomaterials’ was downloaded from the GlaxoSmithKline website, www.gsk.com, in July 2012. This stated that the company had no products on the market that contained deliberately engineered nanomaterials. However, the company was said to be “ actively investigating a number of opportunities that utilize nanomaterials in our Research & Development programmes”. (ref: 6) Products containing toxic and bioaccumulative chemicals (2007) According to an article in the ENDS Report issue 386 (March 2007, pp30-33) Sensodyne toothpaste made by GSK contained triclosan, an anti-bacterial organochlorine. Triclosan was found to accumulate in caged fish kept near sewage outlets in Sweden, as well as human breast milk. The substance is toxic to a range of aquatic species, especially algae. In a laboratory study it induced hormone disruption in tadpoles. An industry working group of which GlaxoSmithKline was part proposed increasing allowed toxicity levels ten fold after initial research showed 15% of samples close to or above the allowed limit. (ref: 7) Habitats & Resources (See also ‘Worst ECRA rating for palm oil policy’ in Climate Change above.) Animals Animal Testing Animal testing of products not required by law (July 2011) According to the PETA website viewed in July 2011, GlaxoSmithKline was listed in a pdf called ‘Companies that test on animals’ produced by People for the Ethical Treatment of Animals. The companies were on the list because they manufacture cosmetic and household products that were tested on animals even though it was not required by law. (ref: 8) Worst ECRA rating for animal testing policy (June 2012) A search of GlaxoSmithKline’s website, www.gsk.com, by Ethical Consumer in June 2012 found, under its Research and Development section of the website, the company’s policy on testing on animals. GSK stated that it researched, developed, and manufactured medicines, vaccines and consumer health products for humans in which research using animals was a small, yet vital, part of this process. The company accepted that it was sensititive issue and therefore applied the 3 R’s approach which was Replacing, Reducing, and Refining animal testing. It also had an ethics board which had to approve any testing. Testing was primarily carried out on rodents and rabbits however other animals included fish, ferrets, amphibians, pigs, dogs, cats, and non-human primates. Much of its work on animals involved research designed to help the company understand specific diseases and identify possible medicines and vaccines to treat and/or prevent them. GSK stated that it did not test non-medicinal products on animals unless there was a specific legal or regulatory requirement to do so. GSK therefore received Ethical Consumer’s worst rating as it clearly conducted and commissioned tests on animals and had fixed cut off date to ending the practice. (ref: 5) Use of transgenic animals in testing (2009) The GlaxoSmithKline website, www.gsk.com, viewed by ECRA April 2009, stated that the company used transgenic animals for experimentation and that they were “proving ever more vital in the discovery and development of new treatments and cures for many serious diseases by helping scientists to characterise the newlysequenced human genome. Without them, the pharmaceutical industry’s ability to discover new treatments would be significantly reduced.” The website also stated that Glaxo was involved in claiming patents on gene sequences. (ref: 9) People Human Rights Unethical drug trials in India (2011) On 15th November 2011 it was reported in the Independent, www.independent.co.uk, that medical trials were conducted at the Bhopal Memorial Hospital and Research Centre (BMHRC), the Indian hospital that treated the victims of the Bhopal gas disaster, which campaigners claimed killed 25,000 people in December 1984. It was stated that the trials were conducted on behalf of western pharmaceutical companies and that there were ‘serious ethical violations’. Six patients were said to have died during a cardiac trial of fondaparinux, which was purchased in 2004 by GlaxoSmithKline (GSK) from Sanofi-Synthelabo (which later became Sanofi-Aventis). GSK was said to have claimed that Sanofi remained responsible for the conduct of the study. The case was said to highlight the problem of assigning responsibility. In a separate article in the Independent, published on 14th November 2011, it was stated that Sanofi-Aventis was one of ten companies that had made compensation payments to the relatives of individuals that had died during or subsequent to trials in 2010. The payments were said to have been an average of just 238,000 rupees, or £3,000, for each individual. A retired physician, Dr. Gulhati, was quoted as saying: “Indians are being used by companies to make money selling expensive medicines in the West...[They are] using illiterate and poor Indians who will never be able to afford these kinds of medicines.” (ref: 10) Unethical vaccines in India (2010) On 14th November 2011 it was reported in the Independent, www.independent.co.uk, that hundreds of tribal girls living in residential schools in India had been recruited for an immunisation study without parental consent. Several girls were said to have subsequently died, one in 2010, and the study halted by the federal authorities. The trial was said to have been led by a US NGO, PATH, and to have been sponsored for millions of dollars by the Bill and Melinda Gates Foundation. Two vaccines, one of which, Cervarix, was produced by GlaxoSmithKline, were given to over 23,000 girls to prevent Human Papiloma Virus (HPV), a sexually transmitted virus that is one of the causes of cervical cancer. Whilst a government inquiry was said not to have linked the vaccines to the deaths, the failure to obtain consent was found by the enquiry panel to be a “significant deficiency in the implementation of the trial”. Officials for PATH were said to have claimed that the study was carried out after the vaccine was already licensed and therefore was not strictly a clinical trial. Regarding consent, they were quoted as saying: “The state government authorised the wardens to provide this consent for girls who were living at residential schools.” Spokespeople for the Gates foundation and GlaxoSmithKline were said to have “emphasised that the drugs involved in the studies are safe”. (ref: 11) Illegal tests of vaccines (March 2007) According to an article dated the 2nd March 2007 on the Business and Human Rights Resource Centre’s website www.businesshumanrights.org, Russian prosecutors were investigating a local hospital on suspicions it illegally tested vaccines made by GlaxoSmithKline [GSK]…on toddlers, making them ill and hampering their development…[P]rosecutors [said] Glaxo paid the clinic in southwestern Russia $50,000 to conduct the trials...GSK…denied the claims and said there was no evidence of adverse events or misconduct in the way the study had been carried out…[P]rosecutors claimed parents were not properly informed…A company spokeswoman said its own internal audit showed informed consent had been given by all parents and doctors involved in the trial had reported no signs of adverse effects. (ref: 12) Supply Chain Management Worst ECRA rating for supply chain management (June 2012) In June 2012 Ethical Consumer sent GlaxoSmithKline a questionnaire regarding its supply chain management. No response was received. Ethical Consumer searched its website and found GSK’s 3rd Party Code of Conduct. According to GSK’s Corporate Responsiblility Report 2011 GSK supplier expectations and standards for ethical conduct, labour practices and protection of human rights, EHS management systems, and interactions with GSK employees was defined in its Third Party Code of Conduct. Supply Chain Policy (inadequate) The 3rd Party Code of Conduct is for 3rd party suppliers of GSK. There was no definition of suppliers and the depth within the supply chain to which the code applied to. The code of conduct did include provisions for employment free from discrimination and forced labour. However, the provisions for child labour, working hours, wages, and freedom of association were considered to be insufficient. The provision for child labour was considered insufficient as it was not in accordance with the ILO definition of child labour. According to the code, working hours and payment of wages was left to the discretion of the supplier and freedom of association was not guaranteed, especially in countries where it is illegal. As a company working in over 100 countries around the world and in places where there is a high prevalence of child labour, low wages, long working hours and restrictions concerning freedom of association, Ethical Consumer would expect GSK to have a more rigorous supply chain policy ensuring workers’ rights were being met. Due to the reasons stated above GSK received an inadequate rating for supply chain policy. Stakeholder engagement (poor) A search of GSK website found no evidence that it was a member of a multi-stakeholder process nor was it involved with trade unions, Not For Profits, or NGO’s in helping to improve workers’ rights. GSK did offer a Confidential Reporting Line to employees and 3rd party suppliers to report violations of the code of conduct. Calls could provide anonymous feedback as the company had taken steps to remove ID caller information. It was no clear if it was independently investigated. GSK received a poor rating of stakeholder engagement. Audit and reporting (poor) GSK in its Corporate REsponsibility Report 2011 stated that it audited critical suppliers before selecting them. The audit included suppliers’ performance against the human rights clauses included in supplier contracts. GSK stated if there were significant gaps in the supplier’s performance then a number of number of options may be offered - in some cases the company may decide not to continue working with that supplier. No disclosure of audits, or a planned schedule of audits was available, nor a commitment to audit the whole supply chain, therefore GSK receieved a poor rating for auditing and reporting. Difficult issues (poor) A search of GSK’s website found no evidence that it was addressing any difficult issues within its supply chain such as payment of living wages and freedom of association, therefore the company receieved a poor rating for difficult issues. Overall the company received a worst Ethical Consumer rating for supply chain management. (ref: 13) Irresponsible Marketing Suppression of evidence re: Seroxat (2007) According to the Business & Human Rights Resource Centre’s website, www.business-humanrights.org, on the 29th of January 2007 a BBC Panorama documentary revealed secret emails showing that GlaxoSmithKline distorted trial results of an antidepressant, covering up a link with suicide in teenagers. Panorama revealed that the company attempted to show that Seroxat worked for depressed children despite failed clinical trials...GSK told Panorama: “GSK utterly rejects any suggestion that it has improperly withheld drug trial information.” (ref: 14) Massive fine for miselling and bribes (July 2012) According to the BBC website in July 2012 GlaxoSmithKline was to pay $3bn (£1.9bn) in the largest healthcare fraud settlement in US history. The drug giant pleaded guilty to promoting two drugs for unapproved uses and failing to report safety data about a diabetes drug to the Food and Drug Administration (FDA). In addition, GSK was found guilty of paying kickbacks to doctors. “The sales force bribed physicians to prescribe GSK products using every imaginable form of high-priced entertainment, from Hawaiian vacations [and] paying doctors millions of dollars to go on speaking tours, to tickets to Madonna concerts,” said US attorney Carmin Ortiz. GSK admitted to promoting antidepressants Paxil and Wellbutrin for unapproved uses, including treatment of children and adolescents. The illegal practice is known as off-label marketing. The company also conceded charges that it held back data and made unsupported safety claims over its diabetes drug Avandia. It agreed to resolve civil liability for promoting asthma drug Advair and two lesser-known drugs for unapproved uses. (ref: 15) Fine over clinical trials involving babies in Argentina (January 2012) On 6th January 2012 it was reported by Sky News, www.news.sky. com, that Glaxosmithkline had been fined £60,000 for irregularities in the recruitment of young children and babies in drugs trials. It was alleged that consent forms were signed by illiterate parents or by people who did not have custody of the children. The Buenos Aires Herald reported that 14 children died during the study, however Glaxosmithkline and the Argentine Health Officials said no link was found between the vaccine and the deaths; according to GSK the babies were given placebos. (ref: 16) Politics Genetic Engineering (See also ‘Use of transgenic animals in testing’ in Animal Testing above.) Use of Genetically Modified Micro-organisms (July 2012) A search of the GlaxoSmithKline website by Ethical Consumer in June 2012 for its policy on Genetically Modified Organisms (GMOs) found a policy document called Genetically Modified Micro-Organisms and Environment Health and Safety 2010. The company stated that it did not use genetically modified plants and crops in its activities, however, it did use Genetically Modified Micro-Organisms which is the development of entities such bateria, fungi, viruses, viroirds, animal or plant cells. In the document the company also said it used transgenic animals. GMM’s have a different level of deactivation requirement before they can be released into the environment and therefore contain a high risk to the environment if released. The company said that the strategies used for inactivating a GMM-containing waste stream are determined by the nature of the GMM being used, the concentration of the material in the waste stream, the volume of the waste stream, the ability of the GMM to survive in a natural environment, and the viability of the cells after processing. Methods to inactivate waste streams were said to include heat/ chemical treatment, physical disruption of cells, filtration, and radiation (gamma or UV). (ref: 5) Boycott Call SHAC animal testing boycott (2012) According to the Stop Huntingdon Cruelty website, www.shac. net, viewed in July 2012, GlaxoSmithKline was still a target of SHAC’s campaigns on the grounds that it still commissioned tests at vivisection laboratory Huntingdon Life Sciences. According to SHAC: “GSK (GlaxoSmithKline) are Huntingdon’s single largest customer. They use HLS for experiments every single day and have used HLS many hundreds of times. They use HLS consistently.” (ref: 17) Political Activities Membership of ICC lobby group (2009) The website of the International Chamber of Commerce (www. iccwbo.org), viewed on 20 April 2009, listed GlaxoSmithKline as a member. According to the ICC, it had “direct access to national governments all over the world through its national committees”; “speaks for world business when governments take up such issues as intellectual property rights, transport policy, trade law or the environment”; “At UN summits on sustainable development, financing for development and the information society, ICC spearheads the business contribution.” ECRA noted that the activity of lobby groups such as the ICC often meant that business interests were protected at the expense of the environment and human rights. (ref: 18) Disproportionate power over global economy (October 2011) New Scientist ran an article ‘Revealed – the capitalist network that runs the world ‘ published on its website, www.newscientist. com, October 24th 2011, which detailed research conducted by the Swiss Federal Institute of Technology in Zurich involving an analysis of the relationships between 43,000 transnational corporations. The research identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy. The researchers looked at the 43,060 TNCs and the share ownerships linking them and from that constructed a model of which companies controlled others through shareholding networks, coupled with each company’s operating revenues, to map the structure of economic power. The research revealed a core of a of 1318 companies with interlocking ownerships. The researchers further untangled the web of ownership and found much of it tracked back to a “super-entity” of 147 even more tightly linked companies which controlled 40 per cent of the total wealth in the network. They found that less than one per cent of the companies were able to control 40 per cent of the entire network. Most were financial institutions. Bank of New York Mellon Corp was ranked 16th on the list. (ref: 19) Membership of USCIB lobby group (July 2012) The website of the US Council for International Business (www. uscib.org) in July 2012 listed Bank of New York Company as a member. The USCIB described itself as “founded in 1945 to promote an open world trading system, now among the premier pro-trade, pro-market liberalization organizations ...provides unparalleled access to international policy makers and regulatory authorities.” ECRA noted that free trade lobby groups had been criticised by campaigners for lobbying for business interests at the expense of the environment, human rights and animal welfare. (ref: 20) Anti-Social Finance NGOs call for patent pooling (2009) According to the Autumn 2009 issue of Christian Aid News, Christian Aid, Unicef, Medecins sans Frontieres and 12 other organisations had written to the Guardian newspaper calling on GlaxoSmithKline to “pool its patents on HIV medicines to help save the lives of millions in developing countries”. Campaigners had long campaigned about the conduct of private sector companies in terms of the profits that they made from life-saving treatments, causing prices to be too high for people in the Majority World to afford, at least without getting into unrealistic levels of debt. (ref: 21) (See also ‘Massive fine for miselling and bribes’ in Irresponsible Marketing above.) Tax avoidance (11 May 2012) On 11 May 2012 it was reported on the BBC news website, www.bbc.co.uk, that the BBC’s Panorama programme had found that “UK-based firms cut secret tax deals with authorities in Luxembourg to avoid millions in corporation tax in Britain”. GlaxoSmithKline was reported to be one of the companies involved, and to have told the programme that they had a duty to be “tax efficient”. It was said to have set up a subsidiary in Luxembourg in 2009, which then lent £6.34bn to a GSK company in the UK, for which £124m of interest was paid, thus removing the money from the company’s profits. Tax authorities in Luxembourg were reported to have agreed to levy tax on the interest at just over £300,000, which was less than 0.5%. This resulted in GSK in the UK potentially avoiding up to £34m in UK corporation tax. GSK was said to have “negotiated a tax settlement with HMRC and closed down its £6.34bn loan operation through Luxembourg”. (ref: 22) Habitats & Resources (See also ‘No palm oil policy’ in Climate Change above.) Animals Animal Testing Animal Testing not required by law (June 2012) According to the PETA website viewed in June 2012, Church & Dwight was on a list of companies that tested on animals. The companies were on the list because they manufactured cosmetic and household products that were tested on animals. PETA encouraged consumers to boycott companies on the list. (ref: 25) People Human Rights (See also ‘No palm oil policy’ in Climate Change above.) Arm & Hammer toothpaste Owned by Church & Dwight Co Inc Church & Dwight Co Inc, 469 N. Harrison St., Princeton, NJ 08543-5297, United States Supply Chain Management Worst rating for no supply chain policy (2012) The Church & Dwight Co Inc website was searched by Ethical Consumer in June 2012 for the company’s supply chain management information. Environment Environmental Reporting Worst ECRA rating for environmental report (2012) Church & Dwight Co Inc did not respond to Ethical Consumer’s written request in June 2012 for the company’s environmental policy or report. The 2010 Sustainability Report, its most recent, was downloaded from the company’s website www.churchdwight. com. While areas of focus for 2011 were named and demonstrated a reasonable understanding of the company’s main impacts, the report did not include any dated, quantified future targets for reducing these. The document stated that external audits were conducted to assess adherence to internal policies and procedures, and local, state and federal environmental, health and safety regulations. The audits were said to cover the following issues: The website included a ‘Corporate Responsibility’ section where the following information was found. SUPPLY CHAIN POLICY (poor) No clause could be found on payment of a living wage or limiting the working week to 48 hours plus 12 hours overtime. The child labour clause was considered insufficient, stating that the minimum age for work was 16 years if not specified in law, which allowed a loophole for suppliers to employ younger children if this was stipulated by law in a country. The clauses on discrimination, forced labour and access to trade unions were sufficient. STAKEHOLDER ENAGAGEMENT (poor) 1. Air Pollution Control No mention found. 2. Hazardous Materials (EPCRA, DOT, General Management/ Permitting) AUDITING AND REPORTING (poor) 3. Potable Water 4. PCB/Asbestos 5. Hazardous Waste 6. Solid Waste 7. Spill Prevention and Control 8. Wastewater/Stormwater Management Church & Dwight stated the following on its website under the heading ‘Supply Chain Transparency’: “Church & Dwight utilise risk-based assessments when selecting new suppliers. In addition, all of our suppliers are expected to abide by the Church & Dwight Co., Inc. Global Operations Guiding Principles (“Guiding Principles”) which set out minimum standards for working conditions[...]. 9. Other (Management Programs, Pesticides, and other) Our supplier contracts require suppliers to conduct their operations in accordance with all applicable laws. The company received Ethical Consumer’s worst rating in this category. (ref: 23) In our supply contracts, Church & Dwight reserves the right to audit suppliers’ premises for compliance with the Child Labor and Forced Labor warranty. Church & Dwight’s standard quality audit protocols, applicable to scheduled audits by Church & Dwight personnel, include suppliers’ compliance with the Child Labor and Forced Labor warranty and our Guiding Principles as one of the audit items. Any supplier found to be in violation is subject to corrective action including termination of business.” Climate Change No palm oil policy (July 2012) The Church & Dwight Co Inc Annual Report 2011 was downloaded from the company’s website, www.churchdwight.com, in July 2012. This stated that the company used a palm oil fraction in its rumen bypass fats products and in some of its animal nutrition products. No information could be found on whether the company attempted to source palm oil sustainably or mitigate the harmful effects of palm oil usage. Consequently Church & Dwight Co Inc lost half marks in the categories of climate change, human rights and habitat destruction. (ref: 24) Ethical Consumer did not take the above statement to demonstrate that the company audited its entire supply chain. Nor were the audit schedule or results disclosed. It suggest that a staged approach was taken to non-compliances. No mention was made of who paid audit costs. DIFFICULT ISSUES (poor) None mentioned. The company received Ethical Consumer’s worst rating in this category. (ref: 23) Politics Boycott Call (See also ‘Animal Testing not required by law’ in Animal Testing above.) Anti-Social Finance Excessive Director’s Pay (2011) According to the Executive Pay Watch database on www.aflcio. org, the Church & Dwight Co Inc CEO was paid $3,072,804 in 2011, which equalled roughly £1,973,696 at the time of writing. Ethical Consumer deems any amount over £1 million annually to be excessive. (ref: 26) Avon deodorant Owned by Avon Products Inc Avon Products Inc, 1345 Avenue of the America, New York, NY 10105-0196, USA Environment Environmental Reporting Middle ECRA rating for environmental reporting (June 2012) In July 2012 Avon Products responded to a questionnaire with URL’s regarding where to find the company’s information on its environmental reporting. Some environmental information was found, including dated quantified targets which included; to purchase 100% of paper from certified and / or post consumer recycled sources by 2020 (currently at 74%); reduce green house gases / carbon emissions by 10% by 2012 and 20% by 2020; increase recycling by 5% by 2012 and have zero waste going to landfill by 2020; waste management to have a 10% intensity reduction by 2012 and a 40% intensity reduction by 2020; water use to be reduced by 7% by 2012 and 40% overall intensity reduction by 2020. Avon based the figures on data from 2008 for the targets in 2012 and 2005 for the targets in 2020. Avon Products had also made the commitment to discontinue the use of polyvinyl chloride (PVC) in beauty packaging by 2015. The website did include some carbon disclosure and the company participated in the Carbon Disclosure Project. However, the website made no mention of toxics, which as a perfume and cosmetic manufacturer, were a major aspect of its business. It also neglected to mention whether or not its environmental data was independently verified. As a result, it received Ethical Consumer’s middle rating in this category. (ref: 27) Pollution & Toxics Use of nanotechnology (July 2012) In July 2012 Avon Products responded to a questionnaire which requested the company’s nanotechnology policy. A URL was provided which linked to the company’s nanotechnology policy on its website. The policy stated that nanotechnology was used, which was primarily titanium dioxide or zinc oxide, in a wide range of cosmetic products to provide protection against the ultraviolet (UV) rays of the sun. However, while it was acknowledged by Ethical Consumer that there was a case for using nanotechnology to protect consumers skin against UV rays of the sun, Avon did not state that nanotechnology was not used in other products. Nanotechnology was considered by environmental campaigners to pose a significant threat to the environment and human safety and therefore the company received a mark against it for pollution and toxics. (ref: 27) Poor rating on product risk issues (2007) According to the ENDS Report issue 386 (March 2007), Avon was one of the companies which had scored poorly in relation to its peers in an analysis by Innovest Strategic Value Advisors of major firms in the personal care, household durables, multiline retail and healthcare equipment sectors. It said Innovest had rated them on their efforts to manage chemical risk, examining parameters such as policies, consumer awareness activities, internal capacity building, development of data on risks and supply chain alignment. The report had been designed to warn investors to benchmark firms on their chemical risk management strategies, pointing to the potential for damage to reputations and loss of business due to ‘toxic lockouts’ from markets where regulation was tightening. (ref: 7) Animals Animal Testing Worst ECRA rating for animal testing policy (July 2012) In July 2012 Avon Products responded to a questionnaire which requested the company’ animal testing policy. A URL was provided which linked to the animal testing policy on its website. Avon stated that in 2011 0.03 percent of its products had been tested on animals and the reasoning for this was due to different legislation within countries requiring different tests for safety. While Avon had a goal to make this zero the company had no fixed cut of date and therefore could only receive Ethical Consumer’s worst rating for its animal testing policy. Naturewatch Compassionate Shopping Guide 2010 did not endorse Avon for its lack of fixed cut off date policy. (ref: 27) Animal testing of cosmetics in China (February 2012) According to the article ‘Avon, Estee Lauder and Mary Kay Allegedly Testing Makeup On Animals’ published on the Huffington Post website, www.huffingtonpost.com, dated February 21st 2012, Avon had gone along with Chinese government requirements for animal testing of beauty products sold in the country without complaint. Another company, Mary Kay, had been trying to work with the government to come up with new testing solutions for cosmetics that didn’t involve animals. This meant that Avon could no longer be considered ‘cruelty free’. In addition to our concerns over animal testing, China was on Ethical Consumer’s list of oppressive regimes at the time of writing. (ref: 28) Forced to withdraw animal testing claims from website (2012) According to an article which appeared on the Daily Mail website (www.dailymail.co.uk) on 6 March 2012, Avon had been forced to withdraw claims its cosmetics weren’t tested on animals. The company had long stated that it was the first major beauty company to do away with animal experiments. According to its website, it stopped animal testing more than 20 years ago. Now, following a complaint to the Advertising Standards Authority, it has removed all traces of the claim from its UK website. Dr Dan Lyons, of the animal welfare group Uncaged which made the complaint, accused the firm, which makes more than £6billion a year in sales around the world, of ‘falsely trading on a cruelty-free image’. He said: ‘Whatever one’s opinion about animal testing for cosmetics, any decent person would agree that we have to have honesty in the marketplace.’ The ASA was alerted to this statement on Avon’s UK website - ‘In 1989, Avon was the first major beauty company to stop testing products and ingredients on animals. Overall Avon Product’s received a middle Ethical Consumer rating for its supply chain management. ‘Avon does not test products or ingredients on animals, nor do we request others do so on our behalf.’ Supply chain policy (rudimentary) However, the global or corporate version of its website plainly contradicts the statement, even detailing how many of its products are tested on animals. It states that Avon sells approximately 9,000 different products in over 100 countries and in 2011, under 0.3 per cent of these were tested on animals. While this equates to under 27 lotions and potions, the number of animal tests could run into thousands. Dr Lyons said: ‘Given each product or ingredient could be tested for about 15 different types of toxicity, and just one of those tests can involve poisoning and killing over 1,000 animals, they must be causing a lot of unnecessary animal suffering.’ Avon’s global website went on to state that the animal testing was only done ‘when required by law’ and its goal was to get the number to zero. It adds: ‘The only reason a product is tested on animals is because some governments have yet to accept the use of scientifically valid alternative approaches to safety assessment.’ The complaint was informally resolved by the Advertising Standards Authority – a term used when a company amends or withdraws its claims without need for a formal investigation. Avon told the ASA that the claim had been removed when the website was updated several months earlier. However, it could still be found through internet searches. At the time of writing the claim had been completely removed. In a statement, Avon described Uncaged’s interpretation of its commitment to animal welfare as ‘incorrect and misleading’. The firm said that it had a ‘long-standing, deep respect for animal welfare’ and animal testing was only done when the law demands. A spokesman added that no products sold in the UK had undergone animal testing. However, in countries outside Europe, some governments will do their own safety testing of products. (ref: 29) People Human Rights Operations in oppressive regimes (June 2012) Avon Products SEC filings exhibit 21 filed in Feburary 2012, viewed by Ethical Consumer in June 2012 listed subsidiaries in China, Colombia, Honduras, India, Kazakhstan, the Philippines, Russia, Saudi Arabia and Venezuela. All countries were considered by Ethical Consumer at the time of writing to be governed by oppressive regimes. (ref: 30) (See also ‘Animal testing of cosmetics in China’ in Animal Testing above.) Best ECRA rating for palm oil policy (July 2012) In July 2012 Avon Products responded to a questionnaire which requested the company’s palm oil policy. A URL was provided which linked to a palm oil policy on its website. The policy stated the company had made the commitment to take a leadership position by purchasing GreenPalm certificates covering 100 percent of its global palm oil use. Avon therefore received Ethical Consumer’s best rating for its palm oil policy. (ref: 27) Supply Chain Management Middle ECRA rating for supply chain management (June 2012) In July 2012 Avon Products responded to a questionnaire with URL’s regarding where to find the company’s information on its supply chain management. Avon Products website had a supplier code of conduct available to download which applied to any company, its factories, manufacturers, vendors or agents (“Suppliers”) that produced goods and/or provided services for Avon Products, Inc. or any local affiliate. The code of conduct included provisions which prohibited the use of child labour under the age of 15 (or in accordance with ILO), forced labour and allowed for employees to be free to join unions and free from discrimination. However, according to the code of conduct, working hours for employees were restricted up to 72 hours per week “in exceptional business circumstances”. These circumstances were not defined and were over the working week limit of 48 plus 12 hours overtime. The code of conduct failed to guarantee payment of a living wage to employees. Due to a lack of commitment on wages and hours Avon Products received a rudimentary rating for its supply chain policy. Stakeholder engagement (poor) A search of Avon’s website found no evidence of stakeholder or NGO engagement by the company for improving workers rights. However there was a helpline for employees to call to report ethics or compliance violations which could be done anonymously if desired, via email or through the Avon Integrity Helpline. It was not clear whether this helpline was available to speakers of other languages nor was it clear whether it was independently investigated therefore the company received a poor rating for stakeholder engagement. Auditing and reporting (reasonable) A search of Avon’s website found a section on supplier audits. Avon stated that in 2008, it committed itself to ensuring every supplier received a biannual audit, followed by re-audits as necessary. To start, Avon identified and prioritised its “significant suppliers,” based on a risk assessment associated with geography, production volume or product categories of the specific facility. In 2011, Avon had conducted 1,303 audits on contract manufacturers in 39 countries. This only represented 31 percent of Third Party Manufacturers, Avon had a target of 95 percent by 2015. Avon did not publish the names of factory locations however there was a breakdown of where the audits had taken place with over 81 percent in Asia Pacific countries. Avon stated that if an audit revealed an instance of noncompliance, it would work with the supplier to develop a corrective action plan, with key action points and deadlines. In the event of noncompliance, re-audits were required to verify that corrective actions had been implemented accordingly. Avon preferred remediation rather than termination, which delivered improved conditions that offer a longer-term benefit to the supplier and the community. Avon would, however, discontinue a relationship with any supplier who failed to address critical issues, such as child labour, or failed to make the necessary corrections requested within a specified, reasonable time period. Avon Product’s received a reasonable rating for its auditing and reporting, the company needed to disclose in more details individual factory audits and state who paid for the audits in order to receive a good A&R rating. Difficult issues (poor) A search of Avon Product’s website found no mention of difficult issues such as audit fraud, purchasing practices, living wages and homeworkers. Despite having manufacturing facilities in China there was no mention of freedom of association and how the company ensured its employees are afforded this right when not provided by local law. The company therefore received a poor rating for difficult issues. (ref: 27) Politics Boycott Call Boycott call by Uncaged (July 2012) When viewed in June 2012 the Uncaged campaign website (http://www.uncaged.co.uk/crueltyfree.htm) called for a boycott of Avon as a company that either “openly use animal-tested chemicals, or fail to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date”. (ref: 31) The W S Badger website (www.badgerbalm.com) was searched in June 2012 for the company’s environmental policy or report. WS Badgers’ website stated that it produced USDA certified organic products and that the company supported organic agriculture to help protect the environment. The website stated that its manufacturing facility had been constructed to be as environmentally friendly as possible and it used recycled paper and energy efficient compact fluorescent CF light bulbs. The manfacturing facility had plenty of ways to recycle packaging and food waste. As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for environmental reporting. (ref: 35) People Political Activities Human Rights Member of USCIB lobby group (2011) The website of the US Council for International Business (www. uscib.org) in March 2011 listed Avon Products Inc as a member. The USCIB described itself as “founded in 1945 to promote an open world trading system, now among the premier pro-trade, pro-market liberalization organizations ...provides unparalleled access to international policy makers and regulatory authorities.” ECRA noted that free trade lobby groups had been criticised by campaigners for lobbying for business interests at the expense of the environment, human rights and animal welfare. (ref: 32) Best ECRA rating on palm oil policy (July 2012) W S Badger did not respond to a written request from Ethical Consumer for information regarding its palm oil sourcing policy in June 2012. Its website stated that it was a USDA Certified Organic company and that it used 99% USDA certified organic ingredients. Palm derivatives included on the ingredients list of its products were said to be certified organic. Anti-Social Finance Subsidiaries in tax havens (June 2012) Avon Products SEC filings exhibit 21 filed in Feburary 2012, viewed by Ethical Consumer in June 2012, listed subsidiaries in Bermuda, Cayman Islands, Hong Kong, Guatemala, Ireland, Luxenbourg, Mauritius, Panama, the Philippines, Singapore and Uruguay. All territories were considered by Ethical Consumer at the time of writing as tax havens. (ref: 30) Excessive directors remuneration (2011) An article which appeared on the Star Tribune website (www. startribune.com) dated 16 March 2011 stated that Chairwoman and CEO Andrea Jung of beauty products seller Avon Products Inc., received a $9.9 million pay package in 2010, including a periodic performance bonus, according to an Associated Press analysis of a filing the company made with the Securities and Exchange Commission. Ethical Consumer deemed any amount over £1 million per year to be excessive. (ref: 33) Excessive Directors’ Remuneration (2010) In January 2011 the Proxy Statement 2010 of the company Avon Cosmetics Limited, Pursuant to Section14(a) of the Securities Exchange Act, was downloaded from the website for the US Securities Exchange Commission, www.sec.gov. The Summary Compensation Table stated that the Chairman and CEO, Andrea Jung, had been paid a total of $9,455,444 in 2009. Charles W. Comb, Vice Chairman, Chief Finance and Strategy Officer had been paid a total of $7,663,357 and Charles M Herington had been paid a total of $4,523,026 in 2009. (ref: 34) Badger Baby bath soap Owned by W S Badger W S Badger, 768 Route 10 , Gilsum, New Hampshire, 800-6036100, USA Environment Environmental Reporting Best ECRA rating for environmental reporting (June 2012) Ethical Consumer considered the company to have a positive palm oil policy. (ref: 35) Supply Chain Management Best ECRA rating for supply chain management (June 2012) The W S Badger website (www.badgerbalm.com) was searched in June 2012 for the company’s supply chain management policy. No supply chain policy could be located however the company was a small family run business with its manufacturing facilities based on the same site as the family’s home in the USA. As a company with a turnover under £8m which demonstrated a commitment to providing an ethical alternative it received Ethical Consumers best rating for supply chain policy management. (ref: 35) Politics Company Ethos All products BUAV approved and organic (July 2012) According to the Badger Balm website viewed by Ethical Consumer in July 2012, all the company’s products complied with the BUAV not tested on animals standard and were certified organic. As the company only produced such products it received positive marks in the Company Ethos category. (ref: 35) Product sustainability Organic Product Certified organic (July 2012) All of BadgerBalm’s skin care range was certified organic by the USDA organic association. (ref: 35) Other Sustainability Features toxic free (July 2012) According to the Badgerbalm website the company did not use the following chemicals which potentially pose a risk to the environment and human health: * Synthetic Fragrance and Dyes * Methylchloroisothiazolinone and Methylisothiazolinone * Parabens or “-paraben” * “PEG” and “-eth” * Petrochemicals This product therefore received a positive mark under ECRA’s product sustainability category. (ref: 35) Politics Bentley soap, body wash & baby Owned by Bentley Organics All products certified organic (July 2012) According to the Bentley Organics website, viewed by Ethical Consumer in July 2012, the company’s products were all certified organic by the Soil Association. (ref: 36) Bentley Organics, PO Box 319, Leeds, LS19 9ES, UNITED KINGDOM Product sustainability Bentley Organics is owned by Thos. Bentley & Son Ltd Organic Product Environment Environmental Reporting Best ECRA rating for environmental reporting (June 2012) In June 2012 Ethical Consumer sent Bentley Organics a questionnaire regarding its environmental reporting. No response was received. Ethical Consumer searched its website, www. bentleyorganic.com, for this information, no report could be found, however its website stated that all its philosphy was to enure that all products were certfied by the Soil Association as a guarantee to its consumers of its organic integrity. Company Ethos Certified Organic (July 2012) According to the Bentley Organics website, viewed by Ethical Consumer in July 2012, the company’s products were all certified organic by the Soil Association. (ref: 36) Other Sustainability Features Free from some toxics (July 2012) According to the Bentley Organics website the company did not use the following chemicals in its baby care range which potentially pose a risk to the environment and human health: * Synthetic Fragrance * Parabens or “-paraben” The Soil Association standards state that organic health and beauty products should be fit for their purpose, have as high as possible proportion of organic ingredients and should not be harmful to human health and the environment in manufacture and in use. This product therefore received half a positive mark under ECRA’s product sustainability category. (ref: 36) As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for environmental reporting. (ref: 36) Owned by Body Shop International plc Animals Animal Testing Best ECRA rating for animal testing (July 2012) A search of Bentley Organics website, www.bentleyorganic.com, by Ethical Consumer in June 2012, found that the company only sold products that were not tested on animals and did not contain ingredients of animal origin. Because there was no fixed cut off date, the company receives our middle rating. (ref: 36) * Petrochemicals Body Shop baby toiletries Body Shop International plc, International Sustainable Development Manager, The Body Shop International plc., Care Centre, Building 4, Hawthorn Road, Wick,, Littlehampton, West Sussex, BN17 7LT, UK Body Shop International plc is owned by L’Oréal which is owned by Liliane Bettencourt (31%) Body Shop International plc is also owned by Nestlé SA (30%) Nestlé SA, Avenue Nestlé 55, Vevey, Vaud 1800, Switzerland People Environment Human Rights Environmental Reporting positive policy regarding palm oil (July 2012) A search of Bentley Organics website, www.bentleyorganic.com, by Ethical Consumer in July 2012, found that the company stated that it only used certified organic palm oil although no certification body was mentioned. The company’s turnover was less than £8 million per year. It was considered to have a positive policy on palm oil for a company of its size. (ref: 36) Best ECRA rating for environment report (July 2012) In July 2012 Ethical Consumer rated the L’Oreal 2011 Sustainability report. This contained three future quantified targets and stated that: “As part of its 10-year environmental strategy (2005-2015), L’Oréal has set three clear targets for its plants and distribution centres: to reduce by 50% greenhouse gas emissions (in absolute value), water consumption per finished product unit and waste production per finished product unit.” Supply Chain Management Best ECRA rating for supply chain management (July 2012) In June 2012 Ethical Consumer sent Bentley Organics a questionnaire regarding its supply chain management policy. No response was received. Ethical Consumer searched its website, www.bentleyorganic.com, for this information, no report could be found, however its website stated that all its products were certified by the soil association which included provisions for workers within supply chains. As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for supply chain management. (ref: 36) Figures were published on the progress towards this target from 2011. The report also showed a good understanding of the companies main impacts. For instance the report contained information on the increased us of natural products, reduced waste including during research, an acknowledgement of high water consumption and water pollution, and the development of life cycle analysis for all its products. The report was verified by Deloitte & Associés and PricewaterhouseCoopers Audit. (ref: 37) Pollution & Toxics Top nanotechnology patent-holder in the USA (July 2012) According to a post on Bloomberg Businessweek, bx.businessweek. com, viewed by Ethical Consumer in July 2012, the L’Oréal Group was the top nanotechnology patent-holder in the United States. The 2007 Corporate Watch report ‘Nanotechnology: undersized, unregulated and already here’, documented the growing evidence that nanomaterials pose a unique but so far poorly understood range of toxicity problems, along with concerns about the wider social and economic impacts of nanotechnology. (ref: 38) Red lipstick found to contain measurable levels of lead (2008) According to The Ecologist December/January 2008 a significant quantity of US-manufactured red lipsticks, including those made by L’Oréal, had been found to contain measurable levels of lead in independent tests. The research carried out by the Campaign for Safe Cosmetics found between 0.03 and 0.65 parts per million, despite there being no mention of metal on the ingredients list. Mark Mitchell, president of the Connecticut Coalition for Environmental Justice, said: “Lead builds up over time and lead-containing lipstick applied several times a day, every day, can add up to significant exposure levels. The latest studies show there is no safe level of exposure.” (ref: 39) Lipstick contains unsafe levels of lead (October 2007) The Campaign for Safe Cosmetics (www.safecosmetics.org) published a report, “A Poison Kiss: the Problem of Lead in Lipstick,” in October 2007. According to the report one third of the lipsticks tested exceeded Food and Drug Administration’s (FDA) 0.1 ppm limit of set for lead in children’s confectionery - a standard established to protect children from directly ingesting lead. The report noted that lipstick is also ingested directly but that the FDA did not set limits for lead in cosmetics. Those listed included L’Oreal and the company’s Maybelline brand. Lead was not listed as an ingredient on the product. The report noted that “Lead is a proven neurotoxin that can cause learning, language and behavioural problems... Pregnant women and young children are particularly vulnerable to lead exposure.... Lead has also been linked to miscarriage, reduced fertility in both men and women, hormonal changes, menstrual irregularities and delays in the onset of puberty.” Furthermore lead is bio-accumulative, building up in the body with repeated exposure. (ref: 40) Animals Worst ECRA rating for animal testing (July 2012) Ethical Consumer visited the L’Oréal website, www.loreal.com, in July 2012 and searched for the company’s animal testing policy. No explicit policy could be found, although some information on research the company had done into alternatives was available. L’Oréal was however on Uncaged’s list of companies to boycott at the time, which it said included companies which either openly use animal-tested chemicals, or fail to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date. The company did state that, “We want an end to animal testing in our industry, and we contribute to the development and acceptance of alternative methods. We actively seek out and favour business partners who share our values and our ethical commitments.” but this was not considered a policy. L’Oréal was therefore awarded Ethical Consumer’s worst rating for animal testing. (ref: 42) Animal Rights Use of factory farmed meat (September 2011) According to the Nestlé website viewed in September 2011, the company produced the following products containing meat which was not free range or organic: Herta frankfurters and pet food. Pet food accounted for nearly 12% of the company’s sales in 2010, according to its Financial Statements 2010. (ref: 43) Dairy is core part of its business (September 2011) According to its 2009 Creating Shared Value report, “nearly 40% of our raw materials expenditure goes towards the procurement of three key commodities – milk, coffee and cocoa”. Of that nearly 90% went on milk. “In terms of sales value, Nestlé is the world’s largest milk company, and sources over 12 million tonnes of fresh milk equivalent from more than 30 countries including Kenya, Uganda, Mexico and China. (ref: 44) Product contained unexpected animal derived ingredients (March 2009) In March 2009 The Food Magazine reported that strawberry flavour Nestle’s Nesquik Magic Straws were coloured with cochineal, which was derived from crushed insects, but that the product was not labelled as being ‘unsuitable for vegetarians’. (ref: 45) Animal Testing People Animal testing of non medical products (July 2011) According to the PETA website viewed in July 2011, L’Oreal was listed in a document called ‘Companies that test on animals’ produced by People for the Ethical Treatment of Animals. The companies were on the list because they manufactured cosmetic and household products that were tested on animals even though it was not required by law. (ref: 8) Human Rights Use of animal test condemned as brutal (2009) The Spring 2009 issue of the Uncaged Campaigns Bulletin stated that vivisectors from L’Oréal were involved in the ‘sacrifice’ of 128 rats in a repeat poisoning test for the commonly-used chemical ingredients butylparaben and methylparaben. The test, which took place at a lab in Pennsylvania, USA, was published in 2008 in the Journal Birth Defects Research (Part B). The test involved chemicals being administered in the animals’ food everyday, plus the taking of blood samples by a method called ‘retro-orbital bleeding’. This is an extreme procedure involving the puncturing of the eye socket. According to the article, there was widespread condemnation of this method, even among some animal researchers, indicating the extreme brutality of this test. The UK National Centre for the 3Rs stated that it was a technique that can have strong consequences for the animal and, therefore, it is not recommended for use with recovery.” In other words, because of the devastating injuries caused by retro-orbital bleeding, animals should be put down before they can regain consciousness”. (ref: 41) Nestlé worker and union leader killed in Colombia (21 August 2009) According to a statement posted on the website of the Colombia Solidarity Campaign, www.colombiasolidarity.org.uk, dated August 24th 2009 and signed by Colombian trade union Sinaltrainal’s president, Luis Javier Correa Suarez, on 21 August 2009, strangers arrived at the home of Gustavo Gomez, knocked on the door and when he answered shot him 10 times. Gustavo was a worker at La Rosa SA Nestlé and a member of the trade union Sinaltrainal. He was immediately taken to a local clinic where he died hours later. Gustavo Gómez was a member of the Board of Sinaltrainal Sectional Dosquebradas from 1997 until 2000, was a cousin of Jose De Jesus Marin-Vargas, a worker at Nestlé SA Comestibles La Rosa and member of Sinaltrainal, also murdered on November 22, 2007. According to the article, unfortunately, this crime occurred at a time when Sinaltrainal had submitted a petition to Nestle Purina PetCare Company de Colombia SA. It stated that this brought the number of Nestlé Sinaltrainal members murdered in Colombia to 12 employees. Luis went on to say the union had previously reported to the authorities the constant threats of death, which Sinaltrainal members in Colombia had received, and had asked the authorities to investigate and punish those responsible. However, the murders continued while the international community was prepared to accept that unionists are offered state protection and therefore continued to accept the current regime. He went on to state: “We demand that the Colombian State, investigate and punish the perpetrators and instigators of this crime, protect the lives of members of Sinaltrainal and their families and ensure the right of union activity.” (ref: 46) Consolidation of water causing shortage for local peoples (2007) According to the Ecologist (September 2007 issue) “the bottled water culture creates its own insatiable marketplace.” Large multinational corporations such as Nestle and another major multinationals had “identified water as the new oil and are busy buying up water supplies throughout the world.” The result of this is that local people – often living in very poor parts of the world - can lose access to vital water supplies. (ref: 47) Operations in 8 oppressive regimes (July 2012) ECRA searched the L’oreal company website in July 2012 and found that the company had operations in the following regimes: China, Philippines, Venezuela, Thailand, Colombia, India, Vietnam and Russia. At the time of writing ECRA considered these to be governed by oppressive regimes. (ref: 37) Workers’ Rights Fined for death at Halifax factory (March 2012) On 9 March 2012 it was reported on the website for the Health and Safety Executive, www.hse.gov.uk, that Nestlé had been fined £180,000 for safety failures which resulted in the death of a worker at its Halifax factory in December 2008. According to the article, the company had received written advice about improving the guarding on the type of machine being used by the employee in 2002. It had not applied that advice to the machine being operated. (ref: 48) Guilty of racial discrimination (June 2009) According to an article published on the Times online website on the 25th of June 2009, L’Oréal had been found guilty, in France’s highest court, of racial discrimination for considering black, Arab and Asian women unworthy of selling its shampoo. The company had sought an all-white team of sales staff to promote one of its hair care products the court heard, with the word going out that the hostesses (shampoo saleswomen) should be ‘BBR’ - ‘bleu, blanc, rouge’ the colours of the French flag - a term widely known in the world of French recruitment as meaning white French people born to white French parents. The court said such a policy was illegal under French employment law. (ref: 49) Marketing cosmetics containing banned ingredients (2007) According to the November/December 2008 issue of Multinational Monitor, L’Oreal had been sued in 2007 by a former Director of Regulatory Affairs, Jerome Chevallier. In the lawsuit he claimed he was fired because he “voiced strong objections and complained about unlawful activities”. Chevallier said that L’Oreal marketed its Maybelline-brand lip gloss containing Debutyl phthalate (DBP) to South America, despite the fact that DBP was banned there due to its carcinogenity and risks to reproductive health. He said the company untruthfully marketed a product called Pureology as formulated with vegan inputs, and that it used a banned substance called Triclosan despite saying it wouldn’t. Chevallier said that in July 2007 he discovered that L’Oreal products in Europe contained a preservative, Kathon CG, above lawful levels, and that this information had been omitted from the company’s computer system “so as to avoid regulatory department scrutiny”. After requesting the recall of the products, Chevallier says he was prohibited from having any further communications with his counterparts in Europe. And after a dust-up with superiors over this issue, he was fired. L’Oreal however, said that he was fired for selling free L’Oreal products on eBay. It denied all Chevallier’s allegations. Chevallier admitted that he did sell free L’Oreal products on eBay, but that that was not why he was fired. (ref: 50) Supply Chain Management Best ECRA rating for Supply Chain Management (July 2012) In July 2012 Ethical Consumer rated the Body Shop’s publicly available information on its supply chain management. The document “THE BODY SHOP CODE OF CONDUCT FOR SUPPLIERS” located via a google search stated that “Since July 2005 The Body Shop International has adopted the Ethical Trading Initiative base code as its code of conduct”. This included the following clauses: Employment is freely chosen and there is no forced, bonded or involuntary prison labour. Freedom of association and the right to collective bargaining are respected Child labour shall not be used (with various clauses on age and work type) Living wages are paid Working hours are not excessive (with all the necessary clauses) No discrimination is practised No harsh or inhumane treatment is allowed The company’s supply chain policy was rated as “good”. Auditing (rudimentary) and Stakeholder engagement (good) On a seperate webpage the company stated that: “Every direct product manufacturer to [Body Shop International] is audited by an independent third-party, or by our own Ethical Trade team against the criteria set out in our Code of Conduct. This includes issues of child labor and forced labor. We may employ different audit approaches depending on the supplier, country or the nature of our business with them. For example, in higher risk countries we may chose to perform unannounced audits, or with factories where we have an ongoing relationship we may perform collaborative audits. BSI has a zero-tolerance approach to child and forced labor and it is deemed as a ‘critical’ non-compliance. This means that we would require a supplier to work immediately on remediating the issue, ideally involving local Non-Governmental Organizations (NGOs), trade unions or other worker representatives and, where appropriate, local government officials... In 2011 our Ethical Trade processes and procedures were independently verified by the Institute For Market Ecology (IMO).” It also added that “BSI has evolved its Ethical Trade program so that in some cases we work more closely with suppliers on particular issues to directly improve labor conditions. We now have a number of specialist NGO partners working with some of our suppliers on issues like health and safety, worker retention and worker engagement. We also run an ongoing program to help our direct suppliers cascade our standards down the supply chain - a key requirement of our Ethical Trade Program.” However no details of the audits could be found and no specifics on difficult issues were located either. The company therefore received Ethical Consumer’s middle rating for its supply chain management. (ref: 51) Irresponsible Marketing Claims that infant formula ‘protects’ babies (December 2010) According to the Baby Milk Action Update, Issue 43, December 2010, Nestle had come under fire for making claims that its formula ‘protects’ babies and has ‘new active immunity’ and using a ‘protect’ logo to do so. The company had attempted to justify its claims saying that ‘The ‘Protect’ logo is used on a new generation of sophisticated infant formula with a unique combination of specific strains of probiotics, long-chain polyunsaturated fatty acids, immune-nutrients and selected proteins. This unique combination has positive effects on the infant’s physiology and metabolism with other formula without these ingredients. However, we in no way suggest that the formula is equal or superior to breastmilk.’ Article 9.2 of the International Code of Marketing of Breastmilk substitutes states ‘Neither the container nor the label should have pictures of infants, nor should they have other pictures or text which may idealise the use of infant formula’ The Cochrane Library had reviewed research on ingredients that Nestle and other companies highlight such as DHA and ARA Long Chain Polyunsaturated Fatty Acids (LCPUFAs) and concluded ‘It has been suggested that low levels of long chain polyunsaturated fatty acids (LCPUFA) found in formula milk may contribute to [higher] IQ levels and vision skills in term infants. Some milk formulas with added LCPUFA are commercially available. This review found that feeding term infants with milk formula enriched with LCPUFA had no proven benefit regarding vision cognition or physical growth.’ Similarly Cochrane Library reviews have found no benefit from adding prebiotics and probiotic. After receiving thousands of emails and letters from members of the public, Nestle has finally acknowledged the Cochrane Library findings but still refused to remove the logos and stop the aggressive marketing saying ‘we do not make any claim on product labels that contradicts the Cochrane Library’s reviews’ this was despite the company’s global marketing campaign being based around the added ingredients. Baby Milk Action said that more pressure was clearly needed. (ref: 52) Abuses of Global Compact principles (December 2010) According to the Baby Milk Action Update, Issue 43, December 2010,Baby Milk Action and other campaign groups concerned about ‘egregious’ violations of the Global Compact Principles by Nestle registered a complaint with the UN Global Compact Office in 2009 under its ‘Integrity Measures’. Concerns raised in the joint report included aggressive marketing of baby milks and foods and undermining of breastfeeding, in breach of international standards, trade union busting and failing to act on related court decisions, failure to act on child labour and slavery in its cocoa supply chain, exploitation of farmers, particularly in the dairy and coffee sectors, and environmental degradation, particularly of water sources. In its responses the Global Compact Office stressed that the Global Compact was a voluntary initiative and the Office had no mandate or resources to conduct investigations, but would promote ‘dialogue’. As the campaign groups were already in ‘dialogue’ with Nestle – and finding it unwilling to stop its violations of the principles – Baby Milk Action asked the Global Compact Office to conduct a review of the communications cited in the provisions of the ‘Integrity Measures’. These give the Office the power to exclude companies and de-list them from its website. The UN Global Compact Office refused to conduct the review and continued to post Nestle’s ‘Creating Shared Value’ and other reports on its website and accepted Nestle as a Patron Sponsor for its 10th anniversary summit in New York in 2010. The UN Global Compact Office stated in a telling phrase about the initiative ‘Of course, abuses of the 10 principles do occur; however we believe that such abuses only indicate that it is important for the company to remain in the Compact and learn from its mistakes’. Baby Milk Action said that the Office had been asked for information on how Nestle had ‘learned from its mistakes’ and had provided no further information, though a briefing paper had been promised. It admitted that not a single company had been excluded from the initiative as a result of complaints being registered. Companies were only excluded if they failed to provide reports, whether misleading or not. A leading Global Officer had recently been appointed a Nestle Vice President, replacing the head of the company’s anti-boycott team. (ref: 52) United Reform Church backs boycott despite Nestlé misinformation (December 2010) According to the Baby Milk Action Update, Issue 43, December 2010 the United Reformed Church Assembly had agreed to continue supporting the Nestle boycott until the company made the required changes to its baby food marketing. The Assembly referenced the FTSE4Good criteria which are similar to the fourpoint plan which Baby Milk Action has put to Nestle, calling on it to bring its policies and practices into line with World Health Assembly standards. The Assembly rejected a proposal to end the church’s long-running support for the boycott. Nestle’s vice president had met with representatives of the URC and other churches at the Churches Investment Group and insisted that Nestle had changed its ways and accused the International Baby Food Action Network (IBFAN) of continuing to level criticisms at Nestle for publicity purposes and said that the organisation’s latest report contained only two genuine violations, which Baby Milk Action said spoke volumes about how dismissive Nestle is of complaints. (ref: 52) Politics Boycott Call Boycott call for animal testing due to L’Oreal ownership (September 2011) The Uncaged campaign website, www.uncaged.co.uk, listed Body Shop as a company to boycott when viewed by Ethical Consumer in September 2011. It was listed as either openly using animal-tested chemicals, or failing to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date. (ref: 53) Boycott call by Uncaged (September 2011) The Uncaged campaign website, www.uncaged.co.uk, listed L’Oreal as a company to boycott when viewed by Ethical Consumer in September 2011. It was listed as either openly using animal-tested chemicals, or failing to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date. (ref: 54) Boycott call by Baby Milk Action (September 2011) The Body Shop was on Baby Milk Actions boycott list when viewed on the organisation’s website, www.babymilkaction.org, by Ethical Consumer in September 2011 due to its ownership links with Nestlé. Nestlé is boycotted by the group because independent monitoring has found it has violated the International Code of Marketing for Breastmilk Substitutes more than any other company. Nestlé owned approximately 30% of L’Oreal, the Body Shop’s parent company, at the time of writing. (ref: 55) Political Activities Member of one international lobby group (February 2012) According to the organisation’s website www.wbcsd.org, viewed by Ethical Consumer on 13/02/2012, L’Oreal was a member of the World Business Council for Sustainable Development. This was regarded by Ethical Consumer as an international corporate lobby group which exerted undue corporate influence on policy-makers in favour of market solutions that were potentially detrimental to the environment and human rights. (ref: 56) Boots shower gel ‘Buying’ MP with free trips and tickets (December 2010) According to the Baby Milk Action Update, Issue 43, December 2010, the former MP covering Buxton, where Nestle bottles water, stood down at the May General Election. Mr Tom Levitt became notorious for defending Nestle after receiving free tickets to the Wimbledon tennis tournament and Lords cricket matches, and an all-expenses-paid trip to South Africa – where he failed to notice Nestle advertising formula in supermarkets, something that even its competitors labelled as a breach of the marketing requirements. Mr Levitt refused to meet with Baby Milk Action. (ref: 52) Owned by Boots UK Ltd Illegal political donations (July 2010) On 9th July 2010 it was reported on the Guardian website, www. guardian.co.uk, that Liliane Bettencourt was being investigated for claims that she had made an illegal donation to French President Nicolas Sarkozy’s 2007 campaign for the presidency, via employment minister Eric Woerth. (ref: 57) Environment Anti-Social Finance Subsidiaries in 6 tax havens (July 2012) Accoring to the L’oreal fact sheet on www.hoovers.com, viewed by ECRA in July 2012, the company had subsidiaries in the following tax havens: Monaco, Uruguay, Ireland, Hong Kong, Singapore, Switzerland. (ref: 37) Excessive director’s remuneration (July 2012) According to a document entitled “Publication of the remuneration components of L’Oréal’s Chairman & CEO made pursuant to the AFEP MEDEF code of corporate governance for listed companies of April 2010” located on the L’oreal website, the remuneration of CEO “Jean-Paul Agon had previously been set by the Board of Directors at 2,100,000 euros in respect of 2011.” (ref: 37) Fined for price fixing (January 2012) According to an article on the Edmonton Journal website, www. edmontonjournal.com, viewed by Ethical Consumer in January 2012, L’Oreal along with twelve other French perfume giants had been fined 40 million Euros for colluding to keep prices high between 1997 and 2000. In January 2012 a Parisian court of appeal upheld the fine imposed on the companies in 2006 by the French competition watchdog. The Watchdog had said that the companies involved had reached illicit agreements on price fixing; enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance. In the original ruling the price watchdog had said that the companies had arrangements with the distributors and that the agreements saw ‘price police’ ensuring distributors were sticking by the deal. The watchdog stated that the companies had applied pressure and threats of commercial reprisals for those distributors that refused to apply the prices imposed by the brands. (ref: 58) Boots UK Ltd, 1 Thane Road West, Nottingham, Notts, NG2 3AA, UK Boots UK Ltd is owned by Alliance Boots GmbH which is owned by KKR & Co. L.P. (55%) KKR & Co. L.P., 9 West 57th Street, 42nd Floor, New York, NY 10019, USA Boots UK Ltd is also owned by Walgreen Co (45%) Environmental Reporting Worst ECRA rating for environmental reporting (June 2012) Alliance Boots was sent a questionnaire in June 2012 requesting a copy of the company’s environment report. No response was received. Ethical Consumer searched the Alliance Boots website and found the company’s Corporate Social Responsibility Report 2010/11. The report contained a section on the company’s environmental impact. The report stated that the 2010/11 enviromental target was to improve sustainability in its business operations with focus on the reduction of its carbon footprint. However there were no dates or targets to go with the statement. The report contained no other targets. There was some discussion of the company’s environmental impacts including waste recycling, transport and energy. There was also a sentence on chemicals where the company stated that it had set realistic targets to monitor and manage its usage and related impact. There was no evidence that the report was independetly verified therefore Alliance Boots received Ethical Consumer’s worst rating for environmental reporting. (ref: 59) Nuclear Power ENDS report critical of environmental reporting (September 2008) It was reported in the September 2008 issue of the ENDS Report that a review of the adequacy of disclosure and transparency by private equity firms and the companies they own (‘portfolio companies’) had been commissioned by the British Private Equity and Venture Capital Association (BVCA). The report, produced by Sir David Walker, concluded that such companies should produce annual business reviews, including assessments of their environmental impact. The ENDS report had assessed 12 reports that had subsequently been produced by private equity companies and concluded that although a few firms had started to address social and environmental issues, their responses “appeared inadequate compared to reports by quoted companies... the results suggest that private equity firms are only just beginning to ask themselves what embedding responsible investment into their business actually means”. Kohlberg Kravis Roberts was said to have a disappointing record of disclosure of environmental issues. The portfolio of the firm was reported to include Energy Future Holdings (formerly TXU) which owned the Luminent power company, which had 18,300 megawatts of power generation capacity in Texas. The company was said to be building an additional 2,2000 MW of coal-fired capacity and two additional nuclear-powered units. KKR was reported not to have discussed the implications for climate change of investment in fossil fuels, or the risks of nuclear energy, in its Walker report. (ref: 60) Climate Change Worst rating for palm oil policy (July 2012) In July 2012 the document entitled ‘Our position on the use of palm oil, other vegetable oils and their derivatives’, dated January 2010, was downloaded from the Boots UK website, www. boots-uk.com. This stated that the company was a member of the Roundtable on Sustainable Palm Oil (RSPO) and the British Retail Consortium European Retailer Palm Oil Working Group. The company was said to require that its suppliers “take account of the principles of sustainable development in the products they supply and in particular safeguard biodiversity”. Steps it was said to be taking to promote the development of sustainable palm oil included: purchasing Greenpalm certificates for the palm oil used in Boots brand products, including derivatives where the starting material was known to be palm oil, and working with its suppliers to use only Certified Sustainable Palm Oil (CSPO) where palm oil was a listed ingredient by 2014, or to use alternative sustainable materials. Due to the fact that the company did not commit to purchasing CSPO or using Greenpalm certificates to cover 100% of its palm oil use, Boots UK Ltd lost half marks in the categories of climate change, habitats and resources and human rights. (ref: 61) (See also ‘ENDS report critical of environmental reporting’ in Nuclear Power above.) Listed in table of dirtiest US power stations (26 July 2007) According to an article on the Environmental News Service website (www.ens-newswire.com), dated 26th July 2007, TXU Generation Co. had appeared in the Environmental Integrity Project’s list of the 50 dirtiest US power plants. The Environmental Integrity Project was set up by former US EPA enforcement attorneys and was not-for-profit. It was said that the company’s Martin Lake power station was producing the highest mercury tonnage of all the 378 largest power stations in the US. The article pointed out that approximately 66% “of the heat energy consumed at a typical coal-fired power plant is wasted” and that considerable reduction in carbon dioxide could be achieved through conservation and energy efficiency. (ref: 62) Pollution & Toxics Use of nanoparticles in own-brand products (July 2012) In July 2012 the document entitled “Our position on nanotechnology and nanoparticles” was downloaded from the Boots UK website, www.boots-uk.com. The document was dated April 2009 and stated that the company used nanoparticles in sunscreens (titanium dioxide and zinc oxides) and toothpaste (microfine silica). (ref: 63) Elevated levels of cadmium among workers at battery manufacturer (January 2008) According to an article posted on the Wall Street Journal website, http://online.wsj.com, dated January 15th 2008, Mrs Wang, who for years worked as an engineer for a company making batteries for companies including Toys ‘R’ Us, had suffered kidney failure and become often too weak to walk. According to her doctors this was a result of cadmium poisoning from her place of work. 400 other employees of the firm had also been found to have unsafe levels of the toxic metal which, in addition to kidney failure, can also cause lung cancer and bone disease. For years factory workers had complained about illness - nausea, hair loss and exhaustion. Following a strike sparked by some workers paying for cadmium testing and finding they had elevated levels, the factory introduced cadmium testing. This resulted in around 900 workers quit their jobs, they were given compensation packages but many workers said the amount was not enough to cover their medical bills. Mrs Wang, who had much less contact with cadmium than most workers, was suing the company for $400,000 in compensation. The article also said that more than 10% of China’s arable land was contaminated with heavy metals such as cadmium and that the metals were entering the food supply. Academic studies had found unsafe levels of cadmium in fruit and vegetables grown in Chinese soil. The article stated that although the battery industry was not the only source of environmental cadmium contamination in China it was a major contributor and said that the Chinese nickel-cadmium battery industry was sickening workers and poisoning the soil and water. (ref: 64) Sale of PVC products (2009) According to a September 2009 emailed response to ECRA’s request for information on its environmental policies, Toys ‘R’ Us stated that it was ‘moving towards’ a ‘goal of offering PVC-free products’ and that it was working with manufacturers to ‘phase out’ baby feeding products, including bottles, containing PVC and Bisphenol-A. Both substances were, or contained chemicals which were, believed to have negative effects on the environment and human health, including endocrine disruption in both humans and animals. (ref: 65) Habitats & Resources (See also ‘Worst rating for palm oil policy’ in Climate Change above.) Use of endangered tropical timber (September 2008) It was reported in the September 2008 issue of the ENDS Report that a review of the adequacy of disclosure and transparency by private equity firms and the companies they own (‘portfolio companies’) had been commissioned by the British Private Equity and Venture Capital Association (BVCA). The report, produced by Sir David Walker, concluded that such companies should produce annual business reviews, including assessments of their environmental impact. The ENDS report had assessed 12 reports that had subsequently been produced by private equity companies and concluded that although a few firms had started to address social and environmental issues, their responses “appeared inadequate compared to reports by quoted companies... the results suggest that private equity firms are only just beginning to ask themselves what embedding responsible investment into their business actually means”. Kohlberg Kravis Roberts was said to have a disappointing record of disclosure of environmental issues. KKR was reported to own a 50% stake in Tarkett, which had been accused by Greenpeace of importing endangered tropical timber, but the environmental risks of such activities were not mentioned in its report. (ref: 60) Animals Animal Testing Worst ECRA rating for Animal Testing Policy (2008) According to the most recent compassionate shopping guide available (11th edition) when it was viewed by ECRA in March 2010, Boots did not have a fixed cut off date policy. The company also sold products both medical and cosmetic that were tested on animals. Boots was not endorsed by the compassionate shopping guide. The company stated that “Alliance Boots operates a policy under which we ourselves do not participate in product animal testing. No testing is undertaken on our behalf and none of our non-prescription own brand products are tested on animals. It is acknowledged that suppliers of our exclusive generic pharmaceutical products may have been compelled to undertake testing to obtain original product licenses, and that many of the formulations will have been licensed by the initial developer using animal testing in pursuit of their application for licence. As far as possible we extend our policy of not using products tested on animals to suppliers of raw materials that are used in the production of our own brand products. We are, however, unable to guarantee that all raw material suppliers do not use or have not in the past used animal testing. When selecting suppliers of own brand product we review their policy on animal testing as a factor in the selection process.” The company therefore recieved ECRA’s worst rating for animal testing. (ref: 66) Worst ECRA rating for animal testing policy (July 2012) Ethical Consumer searched Alliance Boots website, www. allianceboots.com, in July 2012 for its policy on animal testing and found this statement: ‘Alliance Boots operates a policy under which we ourselves do not participate in product animal testing. No testing is undertaken on our behalf and none of our non-prescription own brand products are tested on animals. It is acknowledged that suppliers of our exclusive generic pharmaceutical products may have been compelled to undertake testing to obtain original product licenses, and that many of the formulations will have been licensed by the initial developer using animal testing in pursuit of their application for licence. As far as possible we extend our policy of not using products tested on animals to suppliers of raw materials that are used in the production of our own brand products. We are, however, unable to guarantee that all raw material suppliers do not use or have not in the past used animal testing. When selecting suppliers of own brand product we review their policy on animal testing as a factor in the selection process.’ Ethical Consumer could not find a fixed cut off date for ingredients tested on animals. Due to the fact the company could not guarantee that raw ingredients were not tested on animals and sold animal tested costmetics, toiletries and household products the company recieved Ethical Consumer’s worst rating for its animal testing policy. (ref: 67) Factory farming Use of intensively reared chicken (2008) The Channel 4 website (www.channel4.com) contained a story dated 4 January 2008, which said that all the chicken used in Boots sandwiches was intensively reared in Brazil. (ref: 68) Animal Rights Meat ingredients in baby food (2009) The Boots website (www.boots.com), viewed by ECRA on 16 November 2009 showed that several of the company’s own brand baby foods included organic beef, chicken and ham. (ref: 69) (See also ‘Use of intensively reared chicken’ in Factory farming above.) People Human Rights (See also ‘Worst rating for palm oil policy’ in Climate Change above.) Operations in three oppressive regimes (June 2012) A search of Alliance Boots Corporate Social Responsibility Report 2010/2011 listed the company’s operations. Alliance Boots had operations in Thailand, Russia and China. Each of these terrorities were considered by Ethical Consumer as being govern by oppressive regimes at the time of writing. (ref: 59) Subsidiary in one oppressive regime (2009) According to the company’s SEC Form 10-K for the period ending January 2009, Toys ‘R’ Us had subsidiaries in Hong Kong, a territory regarded by ECRA in 2009 as having an oppressive regime and as being a tax haven. (ref: 70) Workers’ Rights Protest over use of workfare (May 2012) According to the article ‘Mayday Workfare Demos Shut Ox St. Stores - report’ posted on the Indymedia website, www.indymedia. org.uk, May 1st 2012, following London’s May Day trade union march 300 people took part in a roving anti-workfare demo with a banner reading “Workfare is Stealing Our Jobs”. Workfare is a scheme whereby Jobseeker’s Allowance claimants who haven’t found a job once they have been through a work programme will do an unpaid (save for expenses) placement in the community including for for-profit organisations, in order to receive their benefits. The protesters shut down branches of a number of companies using workfare, one of which was Boots. The protest was called by the London Solidarity Federations and supported by Occupy London. (ref: 71) (See also ‘Elevated levels of cadmium among workers at battery manufacturer’ in Pollution & Toxics above.) Government action on discrimination (2007) According to an article on the news section of the BBC website, dated 8th March 2007, in 2007 the US government’s Equal Employment Opportunities Commission had launched a lawsuit against Walgreen over allegations that it had discriminated against black employees. They were said to have been assigned to poorlyperforming shops in poorer areas, affecting their chances of later being promoted. (ref: 72) Supply Chain Management Worst ECRA rating for supply chain policy (June 2012) Alliance Boots was sent a questionnaire in June 2012 requesting its supply chain management policy. No response was received. A search by Ethical Consumer on Alliance Boots website found a Code of Conduct however it did not contain any policies relating to supplier employees and ensuring workers rights. There was a statement by Alliance Boots stating it would comply with the laws of all the countries where it did business and it was committed to ensuring compliance with the principles of the United Nations Universal Declaration of Human Rights. There was no evidence of stakeholder engagement or a schedule of audit for its supplier factories. Due to the lack of supply chain management policy Alliance Boots received Ethical Consumer’s worst rating. (ref: 59) Pulls out of Ethical Trading Initiative (June 2009) According to a Guardian report of 13 June 2009, Alliance Boots, owned by private equity firm KKR, had torn up its commitment to the retail industry-recognised ethical trading standards designed to ban suppliers from using child or forced labour. The decision of the retailer to pull out of the Ethical Trading Initiative (ETI) has been met with a barrage of criticism from unions and campaigners, who fear the highly leveraged retailer will skimp on upholding labour codes in its supply chain. “They see business as a one-dimensional financial world,” said Peter Williams, speaking for members of the ETI including Oxfam and Christian Aid. “It’s not what the consumer wants. They don’t want the cheapest product if the person at the end of the supply chain is paying the cost.” Dan Rees, director of the ETI, said: “We are deeply disappointed that Boots have taken this decision, particularly at such a crucial time for the world’s most vulnerable workers, who are bearing the brunt of the global downturn. The days when high-profile businesses could consider ethical trade as an optional extra are now gone. In our view, it is not the right time for major brands to be rolling back their commitments on labour standards, nor does it make good business sense.” Boots vehemently denied the decision to pull out was linked to being owned by an aggressive private equity firm. “Our decision not to renew our ETI membership is not connected in any way to the ownership of the business,” it said. “Boots UK was monitoring its suppliers very vigorously before taking up membership of ETI in 2003 and has received a national award for the robustness of our approach in relation to supply-chain verification. Boots UK will be broadening our approach to include many more aspects of sustainability in the future, so our approach will become even more robust.” The ETI was set up 10 years ago after a wave of sweatshop scandals provoked a consumer backlash. (ref: 73) Arms & Military Supply Provision of services to the military (February 2010) In February 2010 the website for TASC, Inc, www.tasc.com, stated that the company provided a number of services to the Department of Defense, military and intelligence agencies, including the Missile Defense Agency. These were said to include IT and information security services; acquisition management and financial services; systems engineering and integration and “solutions that turn raw data into intelligence, and intelligence into actionable information”. The website also stated that “Our technical capabilities and domain expertise support warfighters and planners alike”. (ref: 74) Politics Anti-Social Finance Campaigners argue for company tax re-think (July 2011) Boots was mentioned in a report by Actionaid in July 2011 that warned businesses they face the risk of serious reputational damage if they do not make tax planning part of their corporate responsibility programmes. The joint briefing by ActionAid, Fair Pensions and Fair Food told companies they must pro-actively commit to ‘Tax Responsibility’. was received. Ethical Consumer searched its website and found no reports relating to the company’s environmental impact. As it was company providing environmentally friendly products and had a turnover of less than £8 million per year it was exempt from Ethical Consumer’s environmental reporting requirements and therefore received a best rating in this category. (ref: 78) People Human Rights Best rating for palm oil policy (July 2012) A search of Caurnie’s website, www.caurnie.com, by Ethical Consumer in June 2012 for the company’s palm oil policy found no such policy. A search was made for its ingredients and no palm oil nor palm oil derivatives were found. The company informed Ethical Consumer during a telephone conversation on 18th July 2012 that it did not use palm oil, therefore it did not lose marks for the negative effects of palm oil production. (ref: 78) Supply Chain Management The document argues that ‘tax responsibility’ must take into account three key insights: Best rating for supply chain policy (June 2012) In June 2012 Ethical Consumer sent Caurnie Soap Co a questionnaire regarding its supply chain management. No response was received. Ethical Consumer searched its website and found no documents relating to the company’s supply chain policy. However, it was a company providing environmentally friendly products which were produced in Scotland, which demonstrated an effective if not explicitr management of the supply chain, and it had a turnover of less than £8 million per year it was exempt from Ethical Consumer’s environmental reporting requirements and therefore received a best rating in this category. (ref: 78) Compliance with the letter of the law is no longer sufficient to protect business from the risks associated with tax planning Politics Martin Hearson, ActionAid’s tax policy adviser said: “So far businesses have reacted to criticism of their tax avoidance by denying any responsibility. This is exactly how the fashion industry reacted when claims of ‘sweatshop’ abuses emerged in the 1990s. Just as fashion companies who failed to take these allegations seriously incurred major reputation damage, so businesses accused of tax avoidance need to respond with more than reflex denials.” Lack of transparency around tax planning leads to increased risk The structures and practices of tax planning are at the heart of tax responsibility, rather than the amount of tax paid, which is an outcome of these practices. (ref: 75) Tax avoidance (December 2010) In December 2010 it was reported on the Daily Mail website, www.dailymail.co.uk, that Alliance Boots shifted its legal base from the UK to Switzerland in 2008, shortly after a £12billion takeover. Switzerland’s headline rate of corporation tax was said to be 15 per cent, with companies sometimes paying just 8.8%, compared to 28% in the UK. The company’s tax bill was reported to have decreased from £89 million in the last year it was traded on the London Stock Exchange, to £9 million. The company was also said to have reduced its tax bill by offsetting debt interest payments against taxable income. (ref: 76) Subsidaries in tax havens (June 2012) According to the Hoovers factsheet for Alliance Boots viewed by Ethical Consumer in June 2012 Boots had listed subsidaries in Ireland and Luxembourg. Both countries were considered at the time of writing by Ethical Consumer to be tax havens. (ref: 77) Company Ethos Company ethos (July 2012) During a telephone call with Ethical Consumer in March 2010, a spokesperson for the Caurnie Soap Company stated that all of its products were vegan. The company was also found to be producing innovative environmental alternatives. (ref: 79) Product sustainability Other Sustainability Features Toxic free (July 2012) According to an email from the company Caurnie did not use the following chemicals in its skin care product which potentially pose a risk to the environment and human health: * Synthetic Fragrance and Dyes * Methylchloroisothiazolinone and Methylisothiazolinone * Parabens or “-paraben” * “PEG” * Petrochemicals This product therefore received a positive mark under ECRA’s product sustainability category. (ref: 78) Animal Welfare Features Caurnie skincare Owned by Caurnie Soap Co Caurnie Soap Co, The Organic Garden, Canal Lane, Kirkintilloch, G66 1QZ, UK Environment Environmental Reporting Best ECRA rating for environmental reporting (June 2012) In June 2012 Ethical Consumer sent Caurnie Soap Co a questionnaire regarding its environmental reporting. No response Vegan (July 2012) According to the Caurnie Soap Co website viewed by Ethical Consumer in 2012 all of its products were vegan. (ref: 78) Clarins make up People Owned by Clarins S.A. Human Rights Clarins S.A., 4 Rue Berteaux Dumas, F-92200, Neuilly-surSeine, France (See also ‘No palm oil policy found’ in Climate Change above.) Clarins S.A. is owned by Financière FC Supply Chain Management Environment Worst ECRA rating for supply chain policy (2012) Clarins did not respond to Ethical Consumer’s written request in June 2012 for the company’s supply chain management policy. Environmental Reporting Worst ECRA rating for environmental reporting (2012) Clarins did not respond to Ethical Consumer’s written request in June 2012 for the company’s environmental policy. The Clarins website (www.clarins.com), viewed by Ethical Consumer in June 2012, included information on the company’s environmental practices, in its ‘Responsible Development’ document. This included ten commitments, one of which was to “Help to protect biodiversity” and another to “reduce greenhouse gas emissions and optimise the use of natural resources”. However, no dated, quantified future targets were set to achieve these goals. There was no mention of chemicals and their impact on the environment and as a result, the information was not considered to demonstrate a reasonable understanding of the company’s main impacts. Nor was there any evidence that data relating to environmental performance was gathered, monitored or audited. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 80) Climate Change No palm oil policy found (July 2012) The Clarins website, www.clarins.co.uk, displayed a number of products containing palm oil when viewed by Ethical Consumer in July 2012. A document entitled “Responsible Development” was downloaded from the website, which stated that priority was given to “organically farmed ingredients, locally grown plants and, when they come from far away, fair trade plants”. However, no specific mention was made of the way in which the company sourced its palm oil and whether it sought certified sustainable sources. Due to the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 81) Habitats & Resources (See also ‘No palm oil policy found’ in Climate Change above.) Animals Animal Testing Middle ECRA rating for animal testing policy (2012) In June 2012 Ethical Consumer viewed the Clarins international company website, www.clarins.com, to obtain information on the company’s animal testing policy. It stated that “In 1987, Clarins was the first French company to cease product testing on animals”. A fixed cut off date was not mentioned. No mention was made of whether the company used products that had been tested on animals by other companies, and the sector was one in which animal testing was common. The company therefore received Ethical Consumer’s middle rating for animal testing. (ref: 82) Animal Rights Clarins make-up contains animal byproducts (2 July 2012) Clarins make-up products contain stearic acid and carmine. (ref: 83) Nor could this information be found on its website (www.clarins. com), when viewed by Ethical Consumer in June 2012. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 80) Politics Anti-Social Finance Fined for price fixing (January 2012) According to an article on the Edmonton Journal website, www. edmontonjournal.com, viewed by Ethical Consumer in January 2012, Clarins Fragrance Group along with twelve other French perfume giants had been fined 40 million Euros for colluding to keep prices high between 1997 and 2000. In January 2012 a Parisian court of appeal upheld the fine imposed on the companies in 2006 by the French competition watchdog. The Watchdog had said that the companies involved had reached illicit agreements on price fixing; enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance. In the original ruling the price watchdog had said that the companies had arrangements with the distributors and that the agreements saw ‘price police’ ensuring distributors were sticking by the deal. The watchdog stated that the companies had applied pressure and threats of commercial reprisals for those distributors that refused to apply the prices imposed by the brands. (ref: 58) Clinomyn toothpaste Owned by Lornamead UK Ltd Lornamead UK Ltd, Sabre House 377-399, London Road, Camberley, GU15 3HL, England Lornamead UK Ltd is owned by Lornamead Acquistions Ltd Environment Environmental Reporting Worst ECRA rating for environmental reporting (July 2012) A search of Lornameads website, www.lornamead.com, by Ethical Consumer in July 2012 found no environmental reporting or environmental policy by the company. A response received by the company included a copy of Lornamead’s environmental policy. The policy stated that suppliers were audited according to various quality, environmental, employment and REACH regulations. The statement talked about how the company was committed to improving energy efficiency, waste and reduce packaging. While the company showed a reasonable understanding of its environmental impacts, there was no two dated quantified future targets nor was the report independently verified. The company therefore received Ethical Consumer’s worst rating for environmental reporting. (ref: 84) Climate Change Worst ECRA rating for palm oil policy (July 2012) A search was made of Lornamead’s website, www.lornamead. com, by Ethical Consumer in July 2012 for the company’s palm oil policy. No policy was found. As palm oil was a common ingredient in the health and beauty industry Ethical Consumer would expect a company to have a policy regarding its use. Owned by Home & Personal Care Division. In a response from Lornamead, the company stated that it was committed to moving towards using sustainable palm oil in its soap bar by 2016. While Ethical Consumer acknowledged the future commitment by the company, it did not take it into account when rating companies policy due to the fact the negative effects of palm oil production had been apparent since 2005. The company therefore lost half marks in climate change, habitats and resources and human rights. (ref: 84) Stichting Administratiekantoor Unilever N.V., Claude Debussylaan 24, Amsterdam, 1082 MD, The Netherlands Dove shampoo Home & Personal Care Division is also owned by Unilever N.V. (50%) which is owned by Stichting Administratiekantoor Unilever N.V. (50%) Home & Personal Care Division is also owned by Unilever PLC (50%) Habitats & Resources Unilever PLC, Unilever House, 100 Victoria Embankment, London, EC4Y 0DY, UK (See also ‘Worst ECRA rating for palm oil policy’ in Climate Change above.) Environment Animals Animal Testing Middle ECRA rating for animal testing policy (July 2012) A search of Lornameads website, www.lornamead.com, by Ethical Consumer in July 2012 for the company’s animal testing policy and found a document called ‘Trade Partners - Conditions of Purchase for Goods and Service’. Point 8 stated ‘the supplier hereby undertakes that the supplier has not tested on animals any of the products or raw materials or components provided to or produced for the company’. However, the company did not supply a fixed cut off date and therefore the company received a middle ECRA rating for its animal testing policy. (ref: 84) People Human Rights (See also ‘Worst ECRA rating for palm oil policy’ in Climate Change above.) Operations in oppressive regimes (information only) (July 2012) A search of Lornamead’s website, www.lornamead.com, by Ethical Consumer in July 2012 found that the company had offices in India. India at the time of writing was considered by Ethical Consumer to be governed by an oppressive regime. (ref: 84) Supply Chain Management Worst ECRA rating for supply chain policy (July 2012) A search of Lornamead’s website, www.lornamead.com, by Ethical Consumer in July 2012 found no supplier code of conduct guaranteeing set standards for employees within the company’s supply chain. The website did contain a Condition of Purchase for Goods and Services for Trade Partners however there was no provisions made for employees of suppliers. Due to a lack of information the company received Ethical Consumer’s worst rating for supply chain policy. (ref: 84) Environmental Reporting Best ECRA rating for environmental report (July 2012) The Unilever Sustainable Living Plan (dated November 2010) was downloaded from the company’s website www.unilever. com in March 2012. The report discussed the following of the company’s environmental impacts: greenhouse gases, water (in relation to raw materials, manufacture and consumer use), waste, sustainable sourcing of raw materials and office waste. The company’s website stated that it would “produce an annual report on our progress towards the milestones and targets we set out in the Plan. The first report will be published in 2012.” The report contained several dated, quantified future targets for reducing these impacts. These all came under one overall target which was to half the environmental impacts of the production and use of the company’s products by 2020. Examples of the sorts of targets included were to halve waste by 2020, to halve the impact of products lifecycles by 2010 and to source 100% of agricultural raw materials sustainably by 2020. The Sustainability section of the Unilever website stated that eight of the company’s environmental claims oin the report had been audited by Deloitte LLP, namely: emissions of chemical oxygem demand, water consumption, energy use, CO2 emissions from energy use, hazardous waste, non-hazardous waste, emissions from SOx from boilers and utilities and emissions of ozone depleting potential. Unilever received Ethical Consumer’s best rating for environmental reporting. (ref: 85) Climate Change Worst ECRA rating for palm oil policy (2011) In July 2012 Ethical Consumer searched Unilever’s website, www.unilever.com, for its palm oil policy and its Sustainable Living Plan Progress Report 2011. Contained within the report was some reporting on the company’s progress on sourcing sustainable palm oil. The company stated that 64 percent of its palm oil was being sourced sustainabily and by 2015 it had a target to have all its palm oil sourced from sustainable sources. Ethical Consumer did not take into account future commitments to source sustainable palm oil due to the fact the negative effects of plam oil production had been apparent for last seven years. The RSPO first published its Principles and Criteria for sustainable palm oil production in 2005. As a result the company received marks against it for climate change, habitats and resources and human rights. (ref: 86) Use of non certified sustainable palm oil (2008) The website for the Rainforest Action Network, www.ran.org, listed Alberto-Culver Inc. as a company that used palm oil in its products, on a page with the copyright 2008. A search was made on the company’s website, www.alberto.com, but no information could be found which indicated that the company sought to use sustainably sourced palm oil. The company therefore received negative marks in the categories of climate change, habitat destruction and human rights, as a result of the negative environmental and social impacts of palm oil plantations. (ref: 87) Pollution & Toxics Fined for Polluting California Air With Deodorant Spray (February 2010) According to an article posted on the Environmental News Service website, www.ens.newswire.com, a fragrant personal care spray, sold by Conopco and designed to make men appear to be free of unpleasant body odour, polluted California air to the degree that the state fined the company more than $1 million. The California Air Resources Board penalised the company $1.3 million for illegal consumer sales of AXE Deodorant Bodyspray for Men. An Air Resources Board spokesman said that the deodorant spray contaminated California air with the volatile organic compounds used as a propellant and went on to say deodorant sprays sold in California had a very small specific level of volatile organic compounds (VOCS) that they were permitted to emit and this product exceeded that level. Between 2006 and 2008, Conopco, sold, supplied and offered for sale in California more than 2.8 million units of deodorant body spray that failed to meet the state’s clean air standards for aerosol deodorants. According to the Air Resources Board Enforcement Chief James Ryden, “Consumer products, because of their pervasive use, contribute a growing portion of VOC emissions throughout California. Therefore, it’s important that every can and bottle of product be compliant with ARB’s standards.” The violations resulted in what the Board called “significant excess emissions” from volatile organic compounds which contribute to ground-level ozone, or smog. Exposure to ozone can cause lung inflammation, impaired breathing, coughing, chest tightness, shortness of breath and worsening of asthma symptoms. Over 90 percent of Californians still breathe unhealthy air at some time during the year. (ref: 88) Shares in Vedanta (2009) The Ecologist published an article on its website, www.ecologist. org, on 19 June 2009 in which it listed several UK companies which owned shares in Vedanta Resources plc. Vedanta was behind the controversial mine in India’s Orissa state which was situated on a mountain sacred to local people. The company was given the goahead to begin mining for bauxite in May 2009. Campaign groups had warned that the 600-hectare mine would result in ecological degradation that would threaten the livelihoods of tribal people. They said that several villages had been razed to make way for the construction of a refinery, with up to 100 indigenous families evicted from their land and relocated to ‘rehabilitation colonies’ where locals claimed they felt as though they were living ‘in a jail’ with little access to land for farming. A nearby bauxite refinery which was already in existence had been blamed for causing health problems, damaging crops and killing livestock. Unilever Pension Fund was listed in the Ecologist as having shares in Vedanta. (ref: 89) Products contain triclosan (July 2012) According to the ‘What’s in our prtoducts’ section of the www. unilever.com website viewed in July 2012, Mentadent P and Mentadent Sensitive toothpastes both contained triclosan. Several studies have shown that triclosan disrupts the thyroid hormone in frogs and rats, while others have shown that triclosan alters the sex hormones of laboratory animals. Others studies have shown that triclosan can cause some bacteria to become resistant to antibiotics. (ref: 86) Habitats & Resources (See also ‘Shares in Vedanta’ in Pollution & Toxics above.) (See also ‘Worst ECRA rating for palm oil policy’ in Climate Change above.) Unsustainable water usage (August 2008) In an article published by the Economist, www.economist.com, in August 2008, it was reported that the bank JPMorgan had calculated that five big food and drink companies, including Unilever, consumed a total of almost 575 billion litres of water annually, “enough to satisfy the daily water needs of every person on the planet.” (ref: 90) Animals Animal Testing Worst ECRA rating for animal testing policy (July 2012) Unilevers website, www.unilever.com, in July 2012 by Ethical Consumer for its animal testing policy and found a statement that Unilever was committed to the elimination of animal testing. The company stated that it did not test finished products on animals unless it was demanded by the regulatory authorities in the few countries where it was the law. Due to its use of animal testing and the lack of clarity about when it was used, for example for medical or cosmetic purposes, the company received Ethical Consumer’s worst rating in this category. (ref: 86) Boycott call by Uncaged (September 2011) Unilever was listed under a list of ‘Companies to Boycott’ on the Uncaged website, www.uncaged.co.uk, when viewed by Ethical Consumer in September 2011. This was because “The following companies either openly use animal-tested chemicals, or fail to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date.” (ref: 53) Involved in animal testing not required by law (July 2011) According to the PETA website viewed in July 2011, Unilever was listed in a pdf called ‘Companies that test on animals’ produced by People for the Ethical Treatment of Animals. The companies were on the list because they manufacture cosmetic and household products that were tested on animals even though it is not required by law. (ref: 8) Factory farming Use of battery farmed eggs (2011) According to a press release by the Humane Society of the United States, dated 23rd August 2006, a campaign had been launched to ask Ben & Jerry’s to stop using eggs sourced from battery chicken farms in its ice-cream. The company was said to have given assurances over the space of a year that it would switch to free range eggs, but had failed to do so. In September 2011 the parent company’s website, www.unilever. com, was searched and the following information on their eggs sourcing policy was found: “All Ben & Jerry’s ice cream sold in Europe has used only cagefree eggs since 2004, and globally, 88.3% of all eggs used in Ben & Jerry’s production in 2009 were cage-free. In the US in 2010, all Ben & Jerry’s ice cream sold in pint containers was made with certified cage-free eggs.” However, this left some areas of the company’s business which still used eggs from caged hens. (ref: 91) Sale of intensively farmed meat (2011) The US website of Unilever brand Bertolli, www.bertolli.com, listed several ready-meals on sale when viewed in September 2011. Some of these contained meat, and this was not stated to be free range. (ref: 92) Animal Rights (See also ‘Sale of intensively farmed meat’ in Factory farming above.) Production of products containing slaughterhouse byproducts (25 November 2008) An Ethical Consumer shop survey, conducted on the 25th November 2008, found that the product Flora Extra Light, produced by Unilever, contained pork gelatine, a slaughterhouse by-product. (ref: 93) Product contained sodium tallowate (July 2007) A shop survey conducted by ECRA in July 2007 showed that Simple soap contained sodium tallowate, which is produced from rendered beef fat. (ref: 94) D’Ivoire and Togo were on ECRA’s list of oppressive regimes at the time of writing. A cocoa official was quoted as saying “The cocoa business is very dangerous for the worker”. It was also said that a cocoa inspector had been “badly beaten and left for dead”. A journalist investigating the cocoa sector was said to have received death threats and then disappeared, allegedly tortured to death, his computer was reportedly discovered at the home of the president’s brother-in-law, who was later charged with “complicity” in the murder of the journalist. It was said that a French lawyer was kidnapped in 2004, and that he had been carrying out an EU audit of the cocoa sector. A trial was held, in which the preliminary findings were said to indicate that 3 of the kidnappers were also part of the presidents private security force at the time. (ref: 97) People Workers’ Rights Human Rights Child labour likely in vanilla supply chain (May 2011) In May 2011 Dutch sustainable development NGO SOMO published an overview of Unilever’s controversial business practices that occurred in 2010. It focussed on Unilever’s use of vanilla from Madagascar in its ice cream. Vanilla production is plagued by child labour and unsustainable farm gate prices. Two thirds of EU vanilla imports come from Madagascar. Human rights abuses by palm oil supplier (23 August 2011) On 23rd August 2011 it was reported on the Rainforest Rescue website, www.rainforest-rescue.org, that the small village of Sungai Beruang on the Indonesian island of Sumatra had been stormed by 700 armed soldiers from the notorious special forces unit Brimob, and the Wilmar Group’s security forces. Wilmar International was reported to be one of the world’s biggest palm oil companies and one of the major suppliers to Unilever, one of the world’s biggest palm oil processors, which used palm oil it almost all of its products. The raid on Sungai Beruang was reported to result in hundreds of people fleeing “to escape the guns and bulldozers” and much of the village being destroyed. 40 people from the ethnic group of the Suku Anak Dalam, which had lived in the area for generations, were reported to be missing. Rainforest Rescue was calling on supporters to contact Unilever and request that they reconsider their collaboration with Wilmar and replace the palm oil in its products with native fats. (ref: 95) Located in Israeli settlement of Barkan, occupied Palestine (February 2010) When viewed by Ethical Consumer in February 2010, the Hoovers factsheet for Beigel & Beigel Food (1985) Ltd gave the address of the company as Barkan, an illegal Israeli settlement on occupied Palestinian land. (ref: 96) Criticisms relating to cocoa from Cote D’Ivoire (2007) According to the 2007 report by Global Witness; “Hot Chocolate: How Cocoa Fuelled The Conflict in Cote D’Ivoire”, a Swiss company told Global Witness that it sold chocolate to Unilever. The Swiss company was said to buy around 10% of the cocoa produced in the country and had manufacturing facilities installed there. The report explained that Cote D’Ivoire produced around 40% of the world’s cocoa in 2006. Chocolate manufacturing companies generally sold the industry blends of cocoa from various countries, so most chocolate was likely to include cocoa from Cote D’Ivoire, as it’s included in numerous blends. In 2005-2006, 60.1% of Ivorian cocoa exports were destined for the EU. From 1999 to the time of writing, the country had been very politically unstable, with power and land shared between, and often fought over by, rebels and government. Despite this, in 2004, the chairperson of one of the cocoa institutions stated that weapons had been bought with money from cocoa farmers, and supplied to the national security forces. The report also detailed corruption in the country’s cocoa institutions. The institutions fulfil a range of roles, from collecting taxes from the industry to representing companies that trade or export cocoa. The report stated that “The lucrative cocoa trade has been at the heart of the war economy.” It was also said that cocoa, unlike other goods, could “circulate freely” in the West African Economic and Monetary Union and the report detailed how some Ivorian cocoa was traded to and from Togo. Cote There are 80,000 smallholder, family-run vanilla farms in Madagascar. In 2008, growers were getting 6.6% of the export price. In 2010 it was reported that growers were earning a dollar a day. 97,000 children aged 5-17 were economically active in Sava, a region of Madagascar responsible for the vast majority of vanilla production. On the subject of child labour, Unilever responded by saying that it is satisfied that its suppliers are not sourcing from producers that resort to child labour. It made no comment on low farm income despite the fact that it sources 8% of Madagascar’s vanilla. Low farm income is related to child labour because vanilla prices have plummeted, so growers are forced to rely on their children for unpaid work in the fields. However, the report stated that the ethical standards of Unilever’s (first tier) suppliers are not effective because they cannot monitor the work of farmers further down the chain. 6,000 individual farmers might be indirectly supplying Unilever. SOMO concludes that Unilever is not taking enough responsibility for addressing both these issues, despite Unilever’s awareness of the problems in its vanilla supply chain and its influence as a major client. It was noted that it had committed too sourcing Fairtrade vanilla for the minority share of its ice cream (Ben & Jerry’s) by 2013 whilst failing to address responsible sourcing for the majority of its ice cream. (ref: 98) Workers’ rights violations in tea sector (June 2008) In a report published by SOMO in June 2008 entitled “Sustainability Issues in the Tea Sector”, Unilever was criticised for the standard of housing it provided for workers living on plantations in Kenya. It was said that houses tended to be overcrowded and “often in a deplorable condition”. Their allocation was said to be “riddled with allegations of corruption, tribalism and sexual harassment”. An employee was said to have claimed that up to six workers may have shared two roomed houses. Many tea workers in Kenya were said to have reported discrimination and that promotion and employment in tea estates was largely determined by ethnicity. The report suggested that ethnic and political tensions were fostered under such conditions: during the violence in Kenya at the time of the 2007 elections, at least 14 people were said to have been killed on Unilever’s plantations in the country. The report goes on to state that “apart from political antagonism, local Kalenjins reportedly feel disadvantaged because the migrant ethnic group (Kisii) that came to pick tea live in better conditions than them”. Unilever, in Indonesia, Malawi and Kenya, was stated to employ people on a temporary contract which resulted in them having worse pay and fewer rights, for example, to pensions and access to medical care for their children. Unilever was said to account for more than 70% of Indonesian tea exports, and it was said to be “highly likely” that the company influenced prices in the region. The global concentration of tea buying into a handful of companies was said to have been “influential in keeping world market prices low”. Other issues regarding Unilever that were raised in the report were divestment resulting in many people losing their jobs and inadequate renumeration. (ref: 99) (See also ‘Criticisms relating to cocoa from Cote D’Ivoire’ in Human Rights above.) Supply Chain Management Worst ECRA rating for supply chain management (July 2012) Unilever was sent a questionnaire in June 2012 requesting information on its supply chain management. No response was received. Ethical Consumer searched Unilevers website, www. unilever.com, and found Unilever’s supplier code. Supply chain policy (poor) The Supplier Code had adequate provisions for child and forced labour and also stated that freedom of association should be respected. However, there was no statement defining the width and depth the code applied to within its supply chain and there was no provisions relating to working hours, payment of a living wage and employment being free from discrimination. Therefore the company was considered to have a poor supply chain policy. Irresponsible Marketing Misleading marketing (March 2009) In March 2009 The Food Magazine reported that Bertolli spread, which was a Unilever product, contained only 21% olive oil, and actually contained more rapeseed and other unspecified vegetable oils than genuine olive oil. (ref: 45) Criticism for irresponsible marketing (March 2009) In March 2009 The Food Magazine reported that a number of celebrities were used in advertising campaigns for foods that would have been banned from television advertising during programmes with a high proportion of young viewers, because they contained high levels of sugar, saturated fat, fat and/or salt. The article was critical of the fact that Marco Pierre White had endorsed Knorr Stock Pot, a product high in salt, and that Gloria Hunniford and Gary Rhodes had endorsed Flora products, which were high in fat and saturated fat. Knorr and Flora were Unilever brands. (ref: 45) Contamination of milk products with melamine (October 2008) In October 2008, the Wall Street Journal published an article on its website, www. wsj.com, which stated that Unilever Hong Kong Ltd had recalled four batches of Lipton milk tea powder sold in Hong Kong and Macau after its tests found melamine in the products. The products contained Chinese-made ingredients, and the recall occurred in the wake of findings of large scale contamination of milk products in China. A representative of the company was said to have claimed that the scope of the recall was “relatively contained.” (ref: 100) Politics Genetic Engineering Stakeholder engagement (poor) A search of Unilevers website found no evidence of its involvement in multi-stakeholder initiatives or NGOs / NFPs in working to improve workers rights within its supply chain. There was a confidential ethics hotline which was available to all workers. Due to the lack of stakeholder engagement the company received a poor rating. Auditing and reporting (poor) A search of Unilever’s website there was no evidence found that there was a schedule of audits for its supplier to check conformity to its supplier code of conduct. Unilever’s website did state that it may request further verification from suppliers in the form of self-assessments or site audits to identify that operational practices meet the Code’ s requirements based on its risk assessment. If the practices do not meet our requirements, then it would seek an agreement with its suppliers to undertake the necessary actions to achieve compliance. Unilever used SEDEX platform to deploy common approach to supplier assessments that is recognised across our industry. However, due to the lack of publically available information on its suppliers Unilever received a poor rating for auditing and reporting. Difficult issues (poor) No discussion was found on Unilevers website about working towards payment of a living wage, homeworkers, and freedom of association therefore the company received a poor rating. Overall Unilever received Ethical Consumer’s worst rating for supply chain management. (ref: 86) Pro GM policy statement (July 2012) In July 2012 Ethical Consumer searched the Unilever website for the company’s policy on the use of GM ingredients. The following position statement was found on its website; “We support the responsible use of biotechnology within the framework of effective regulatory control and provision of information about its use. The use of this technology to improve food crops can bring important benefits to mankind and individual applications should be judged on their merits. “We acknowledge that the public’s view of biotechnology, such as the use of GM ingredients in foods, is still evolving and that the debate and public acceptance is at different stages in different regions of the world. “Our companies are free to use ingredients derived from modified crops, which have been approved by the regulatory authorities and which meet our own standards for quality and acceptability. “The decision whether or not such ingredients will be used is made at local or regional level, taking into account public perception, national legislation, availability and costs of alternatives and attitudes of our customers, including the retail trade.” (ref: 92) Boycott Call (See also ‘Boycott call by Uncaged’ in Animal Testing above.) Political Activities Member of WEF (January 2012) Unilever was listed as a strategic partner of the World Economic Forum, on its website www.weforum.org viewed by Ethical Consumer on 01 August 2012. The World Economic Forum was a lobby group which campaigned for greater economic liberalisation and deregulation. ECRA defined the World Economic Forum as a corporate lobby group which lobbied for free trade at the expense of the environment, animal welfare, human rights or health protection. (ref: 101) Member of four lobby groups (2011) According to the Unilever website, www.unilever.com, viewed in 2011, the company was a member of the follwing lobby groups; the European Round Table of Industrialists (ERT), the International Chamber of Commerce (ICC), TransAtlantic Business Dialogue (TABD), the World Business Council for Sustainable Development (WBCSD) and the World Economic Forum (WEF). (ref: 92) Member of NAM (2008) According to Dirt Diggers Digest “Rebuffed by Supreme Court, NAM complies with Disclosure Law-For Now” from May 2nd, 2008 by Phil Mattera, the U.S Supreme Court had denied an Emergency request from the National Association of Manufacturers (NAM) regarding disclosure. NAM had been opposed to a new law (Section 207 of P.L 110-81) that required trade associations to list member companies that were involved extensively in developing the organization’s lobbying strategies or that contributed at least $5,000 towards those efforts. NAM maintained that these activities should be confidential. NAM had sought a stay on enforcement of a portion of the Honest Leadership and Open Government Act that took effect on April 21, 2008. When DC courts turned down the request, NAM went to the Supreme Court who had also refused. When NAM submitted an amended lobbying disclosure filing to the Clerk of the House and Secretary of the Senate it responded to a question about additional affiliated organizations by providing a link to a page on its website. The page provided the names of 63 large corporations and two large trade associations (American Petroleum Institute and the Edison Electric Institute) whose lobbying involvement was ordered to be made public. Unilever United States was among the companies listed on the website. (ref: 102) Anti-Social Finance Subsidiaries in tax havens (July 2012) According to Hoovers factsheet for Unilever. viewed by Ethical Consumer in July 2012, the company had subsidaries in Costa Rica, Switzerland, Hong Kong, the Philippines, Guatemala and Luxembourg. All these countries were considered by Ethical Consumer to be tax havens at the time of writing. (ref: 103) Excessive directors’ pay (February 2012) According to an article on Foodmanufacturer.co.uk Unite the Union claimed that the CEO of Unilever earnt more than £6million a year. Unite were unhappy with this especially in the context of the company slashing pensions of the workforce by up to 40%. (ref: 104) Criticised by ActionAid for having subsidiaries in tax havens (October 2011) ActionAid published a FTSE 100 Tax Haven Tracker in October 2011 which tracked how many of the subsidiaries of the FTSE 100 companies were in tax havens. It uncovered that Unilever had 696 subsidiaries, 34% of which were in developing countries and 26% of which were in tax havens. According to ActionAid corporate tax avoidance, one of the main reasons companies use tax havens, was having a massive impact on rich and poor countries alike. Developing countries it, said currently lose three times more to tax havens than they receive in aid each year. Chris Jordan, ActionAid’s tax justice expert said: “ActionAid’s research showing the use of tax havens by Britain’s biggest companies raises serious questions they need to answer. Tax havens have a damaging impact on the UK exchequer, the stability of the international financial system, and vitally on the ability of developing countries to raise tax revenues which would lift them out of poverty and make them less dependent on aid.” The use of tax havens facilitates tax avoidance and evasion, which undermines the revenue bases of both developing and developed countries. Additional revenues are urgently needed both to invest in the fight against poverty and to tackle the deficits incurred during the financial crisis in rich countries. Chris Jordan continued: “When multinationals use tax havens to avoid paying their fair share, ordinary people in both poor and rich countries are left to pick up the bill. Spending on doctors, nurses and other essential services gets cut for those who need it most. Tax havens might provide the lure of financial secrecy and low tax rates for big companies, but at a time when all countries are desperate for revenues, the UK government can’t afford to turn a blind eye.” ActionAid was calling on the government to urgently rethink its current proposals to relax UK anti tax haven rules. The Treasury itself estimated these changes would result in an £840 million tax break for multinational companies that use tax havens. With both developing and developed countries bearing the brunt of debilitating losses, ActionAid said the UK must ensure the G20 takes the decisive action it promised on tax havens at the London summit in 2009. (ref: 105) Dr Hauschka make up Owned by Dr. Hauschka Skin Care, Inc. Dr. Hauschka Skin Care, Inc., 20 Industrial Drive East, South Deerfield, MA 01373, USA Dr. Hauschka Skin Care, Inc. is owned by WALA Heilmittel GmbH which is owned by Wala-Stiftung Environment Environmental Reporting Worst ECRA rating for environmental report (July 2012) In June 2012 Ethical Consumer sent Wala Heilmittel a questionnaire requesting the company’s environmental report. No reponse was received. Ethical Consumer searched Wala Heilmittel’s website, www.wala.de, and found the company’s environmental statement. The statement was dated 2008, although there was an update from 2010 to be added to the report. The statement contained dated and quantified targets which were set from 2008 and had a target of 2011. No new targets could be found and a request was sent to the company asking if there were new targets due to be published. No response was received. Due to the lack of up to date environmental reporting the company received a worst Ethical Consumer rating in this category. (ref: 106) Climate Change No palm oil policy (July 2012) Dr. Hauschka Skin Care, Inc. did not respond to a written request from Ethical Consumer for information regarding its palm oil sourcing policy in June 2012. No related information could be found on its website, www.drhauschka.co.uk, although palm oil and derivatives were listed on a page entitled ‘Ingredients glossary’ and as ingredients not labelled organic for specific products. Due to the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 107) Habitats & Resources (See also ‘No palm oil policy’ in Climate Change above.) Animals Animal Rights Use of silk in some products (2010) According to the Dr Hauschka website (www.drhauschka.co.uk) viewed on 3rd March 2010, some of the company’s products including rosemary foot balm and some make up products contained silk. The website stated that it could not source sufficient quantities of organic or tussah silk, so it was using commercially produced silk. Silk is produced from the cocoon of silk worms which are killed before they can develop into moths. (ref: 108) Animal ingredients (2007) According to the Dr Haschka website, www.drhauschka.co.uk, when viewed on the 4th of July 2007 some of its mascaras contained Carmine (CI 75470). The website explained that ‘Carmine red colouring is extracted from dried cochineal beetles which live in colonies on the pad of the prickly pear cactus.’ (ref: 109) People Human Rights (See also ‘No palm oil policy’ in Climate Change above.) Operations in 2 oppressive regimes (2010) Ethical Consumer searched Wala Hilmittel’s website in July 2012 and found that the company had operations in Israel and Russia. Both countries at the time of writing were considered by Ethical Consumer to be governed by oppressive regimes. (ref: 106) Supply Chain Management Worst ECRA rating for supply chain management (July 2012) Wala Heilmittel was sent a questionnaire in June 2012 requesting its supply chain management policy. No response was received. Ethical Consumer searched the company’s website and found no documents or policy relating to its supply chain and workers rights. Due to the lack of information Ethical Consumer could not assess Wala Heilmittel’s supply chain management and therefore the company received a worst Ethical Consumer rating. (ref: 106) Politics Anti-Social Finance Subsidiaries in tax havens (July 2012) A search of Wala Heilmittel website by Ethical Consumer in July 2012 found that the company had subsidiaries in Singapore, Ireland, Hong Kong and Luxembourg. All territories were considered by Ethical Consumer to be tax havens at the time of writing. (ref: 106) Product sustainability Other Sustainability Features Toxic free (17 July 2012) According to the Dr Hauschka website, viewed by Ethical Consumer in July 2012, the company did not use the following chemicals which potentially pose a risk to the environment and human health: * Synthetic Fragrance and Dyes * Methylchloroisothiazolinone and Methylisothiazolinone * Parabens or “-paraben” * “PEG” and “-eth” * Petrochemicals Essential Care Fairtrade lipstick [F,A,O,S] Owned by Essential Care (Organics) Ltd Essential Care (Organics) Ltd, Director, 26 James Carter Rd, Mildenhall, Suffolk, IP287DE Environment Environmental Reporting Best ECRA rating for environmental reporting (2012) Essential Care responded to Ethical Consumer’s written request in June 2012 for the company’s environmental policy by sending the following statement: “We support fair trade, natural farming methods and have an active commitment to the care of the environment. This encompasses organic certification of our products, choosing materials which are locally-sourced where possible, are from sustainable and renewable resources, free from chemical contaminants, and are either recycled or can be recycled safely.” All its products were manufactured in the UK. As an SME providing environmental alternatives Essential Care was awarded Ethical Consumer’s best rating for environmental reporting. (ref: 110) People Human Rights Does not use palm oil (June 2012) An article posted on the Essential Care website, www.essentialcare.co.uk, in May 2012 stated that the company did not use palm oil as a result of the deforestation that palm oil production has involved. Ethical Consumer considered this to be a positive palm oil policy. (ref: 111) Supply Chain Management Best ECRA rating for supply chain policy (2012) Essential Care responded to Ethical Consumer’s written request in June 2012 for the company’s supply chain management information. The company stated that: “Trading ethically has always been one of our priorities. When we have to source outside the EU, we always buy fair trade certified ingredients wherever they exist. In 2009 Essential Care was the first UK brand to launch skin care approved by both the Soil Association and Fairtrade Foundation. In 2011 we launched the first (and still only) Fairtrade Foundation approved makeup. We are audited and inspected by both the Soil Association and Fairtrade Foundation.” Since it was a small company whose products were still hand made by one of the owners of the family firm, and which was sourcing Fairtrade ingredients where possible, it received Ethical Consumer’s best rating in this category. (ref: 110) This product therefore received a positive mark under ECRA’s Product Sustainability category. (ref: 106) Politics Animal Welfare Features All products certified organic (2012) According to the Essential Care (Organics) Ltd response to an Ethical Consumer company questionnaire received in June 2012, all the company’s products met Soil Association organic criteria. The company was producing only innovative environmental alternatives. (ref: 110) Vegan (July 2012) According to the Dr Hauschka website (www.drhauschka.co.uk) viewd in July 2012, many of its make up products were suitable for vegans. (ref: 107) Company Ethos Product sustainability Organic Product Sustainable product (June 2012) According to the Essential Care (Organics) Ltd response to an Ethical Consumer company questionnaire received in June 2012, all the company’s products met Soil Association organic criteria. Its lipstick was also Fairtrade Foundation certified and suitable for vegetarians. The questionnaire added that all the company’s products were free from the following ingredients: Parabens Polyethylene Glycol (PEG) Synthetic Colors Synthetic Fragrances Methylisothiazolinone (MIT) Petrochemicals (ref: 110) Fairtrade Product (See also ‘Sustainable product’ in Organic Product above.) Other Sustainability Features (See also ‘Sustainable product’ in Organic Product above.) Animal Welfare Features (See also ‘Sustainable product’ in Organic Product above.) Estee Lauder make-up Owned by Estée Lauder Companies Inc Estée Lauder Companies Inc, 767 Fifth Avenue, New York, New York, 10153-0023, USA Estée Lauder Companies Inc is owned by Lauder Family (88%) Environment Environmental Reporting Worst ECRA rating for environmental reporting (2012) The Estée Lauder Companies website (www.elcompanies. com), viewed by Ethical Consumer in June 2012, included some information on the company’s environmental policy. It stated that the company was using recycled packaging in some of its products and cutting greenhouse gas emissions across its operations, as well as a few other location-specific initiatives. It also said the company was “committed to the sustainable harvesting and use of natural ingredients” although it wasn’t explained what this meant in practical terms. There was no mention of chemicals and their impact on the environment or on the use of water and as a result, the information was not considered to demonstrate a reasonable understanding of the company’s main impacts. Nor were there two or more dated and quantified future targets for reducing these impacts. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 112) Climate Change Worst rating for palm oil policy (2010) In June 2012 Ethical Consumer emailed Estée Lauder Companies Inc and attached a questionnaire that included a request for the company’s policy in relation to palm oil sourcing. The company did not respond. Its 2010 Corporate Social Responsibility report, downloaded from its corporate website www.elcompanies.com, stated: “ELC makes efforts to buy certified sustainable palm oil if stocks are available. We have begun to engage with others to find ways to increase the availability of sustainable palm oil.” Ethical Consumer noted that the company was not listed as a member of the Roundtable on Sustainable Palm Oil on that organisation’s website and that the negative effects of palm oil production had been known for at least eight years, since the founding of the RSPO. Due to the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 113) Pollution & Toxics Nanoparticles in some products (July 2012) In June 2012 a page entitled ‘Nanotechnology’ was downloaded from the ‘Viewpoints’ section of the Estée Lauder corporate website, www.elcompanies.com. This stated the following: “In our continuing efforts to keep our consumers informed, we are sharing the following updated information regarding nanotechnology. Our 2010 Corporate Responsibility report states that we do not formulate using nano particles, which we were defining at the time as ingredients intentionally processed to be nano sized. However, we have since identified a small number of products that do contain a limited number of these nano sized ingredients. The definition of “nano” terms as they relate to cosmetics ingredients continues to evolve in accordance with emerging scientific study. In the future, reference to “nano” may capture more than ingredients which are intentionally manufactured to be nano sized. We will continue to pay close attention to the dialogue on nano. We will evaluate our use of these ingredients consistent with prevailing scientific opinion, related regulations, and our commitment to bringing our consumers innovative products of the highest quality.” (ref: 114) Poor rating on product risk issues (2007) According to the ENDS Report issue 386 (March 2007), Estee Lauder was one of the companies which had scored poorly in relation to its peers in an analysis by Innovest Strategic Value Advisors of major firms in the personal care, household durables, multi-line retail and healthcare equipment sectors. It said Innovest had rated them on their efforts to manage chemical risk, examining parameters such as policies, consumer awareness activities, internal capacity building, development of data on risks and supply chain alignment. The report had been designed to warn investors to benchmark firms on their chemical risk management strategies, pointing to the potential for damage to reputations and loss of business due to ‘toxic lockouts’ from markets where regulation was tightening. (ref: 7) Habitats & Resources (See also ‘Worst rating for palm oil policy’ in Climate Change above.) Animals Animal Testing Animal testing of cosmetics in China (February 2012) According to the article ‘Avon, Estee Lauder And Mary Kay Allegedly Testing Makeup On Animals’ published on the Huffington Post website, www.huffingtonpost.com, dated February 21st 2012, Estée Lauder had gone along with Chinese government requirements for animal testing of beauty products sold in the country without complaint. Another company, Mary Kay, had been trying to work with the government to come up with new testing solutions for cosmetics that didn’t involve animals. This meant that the company could no longer be considered ‘cruelty free’. In addition to our concerns over animal testing, China was on Ethical Consumer’s list of oppressive regimes at the time of writing. (ref: 28) Used ingredients tested on animals (July 2007) Uncaged reported in Spring 2007 that a concerned consumer had enquired of Clinique whether it was involved with animal testing and was assured that the company was not involved because it did not test products on itself or “asked others to conduct animal testing on our behalf”. However, campaigners argued that such a statement meant that a company could be buying and using new ingredients that had been tested on animals by the suppliers or manufacturers and that the company therefore was still paying for and perpetuating animal testing. It was reported that the campaigner re-contacted Clinique and eventually got a refund on the product. (ref: 115) Worst ECRA rating for animal testing policy (2010) According to the 12th Edition of the Naturewatch Compassionate Shopping Guide published in 2010, Estée Lauder had neither a fixed cut-off date or five year rolling rule for animal testing. It therefore received Ethical Consumer’s worst rating in this category. (ref: 116) People Human Rights Court case over image use (June 2011) On 3rd June 2011 it was reported on the UPI website that a model was suing Estée Lauder for using an image of her without permission for an anti-aging product. The plaintiff was said to have claimed that the photo was taken during a shoot for a different product when she was not wearing make-up. The advert claimed that improvements in the appearance of the woman in two different images were as a result of a clinical test of the product, but the model said that she had never used the product or participated in a clinical test. (ref: 117) (See also ‘Worst rating for palm oil policy’ in Climate Change above.) (See also ‘Animal testing of cosmetics in China’ in Animal Testing above.) Supply Chain Management Worst ECRA rating for supply chain management (2012) SUPPLY CHAIN POLICY (poor) The Estée Lauder website (www.elcompanies.com), viewed by Ethical Consumer in June 2012, included the following information on the company’s supply chain management policy: “We expect our suppliers to comply with all local regulations and their national laws governing minimum wages, overtime compensation, hiring and occupational safety. Our suppliers must comply with our Supplier Code of Conduct. The Code outlines our expectations on quality, health and safety, enviroment, labor conditions and human rights – including our zero tolerance policy regarding prisoners,slave labor and human trafficking. We have an ongoing audit process that includes independent third party assessment.” However, since the Code did not contain stipulations on payment of a living wage, employment of children or maximum number of hours in a working week it was rated as poor. STAKEHOLDER ENGAGEMENT (poor) No mention found. AUDITING AND REPORTING (poor) The company’s latest Corporate Responsibility report (dated 2010) stated that Based on a supplier risk assessment, our current focus is on auditing suppliers in Asia that provide us directly with ingredients or packaging to ensure they meet our standards and to identify any areas of non-compliance with the Code. We plan to expand the process to Europe and the U.S. in FY2012. We have also begun to audit some second-tier suppliers (those that provide our top-tier suppliers with goods or services). We require prompt correction if we find cases of minor non-compliance. We then conduct follow-up audits to review progress. Once suppliers have passed an in-person Code of Conduct audit, we ask them to complete a self-assessment questionnaire every two years to check continued compliance. Every year we randomly pick a sample of suppliers for a follow up in-person audit, to verify the accuracy of these self-assessments.” No commitment was made to audit the entire supply chain, audit results did not appear to be disclosed, and there was no mention of a remediation strategy in instances of non-compliance, or of who paid the costs of audits. DIFFICULT ISSUES (poor) No mention found. The company received Ethical Consumer’s worst rating in this category. (ref: 113) Irresponsible Marketing (See also ‘Court case over image use’ in Human Rights above.) Politics Boycott Call Boycott Call for animal testing (2012) The Uncaged campaign website, www.uncaged.co.uk, listed Estee Lauder as a company to boycott when viewed by Ethical Consumer in July 2012. It was named as a company that either openly used animal-tested chemicals, or failed to demonstrate that the finished products and ingredients they used had not been tested on animals since a fixed cut-off date. (ref: 118) Boycott call (June 2011) In June 2011 cosmetics brand Clinique was targeted by pro Palestinian protesters over its links with an Israeli organisation that facilitates the transfer of Palestinian land to Israelis while parading as an environmental charity. Five members of performance arts collective the Rezoning Group entered a Clinque store in Istanbul, Turkey dressed as members of the Jewish National Fund (JNF) and proceeded to “plant” trees in the shop forcing it to close. This was to draw a parallel with the actions of the JNF, which has been involved in forcibly appropriating Palestinian homes before planting trees on the sites. Campaigners say that following the establishment of the state of Israel, the JNF was given responsibility for developing lands expropriated by the government - including 531 Palestinian villages destroyed in a campaign of ethnic cleansing by the Israeli state. According to the Stop The JNF campaign, parks and forests have been planted in order to cover the traces of villages destroyed in 1948 and 1967. Additionally, it is accused of aiding the illegal confiscation of Palestinian lands on the basis that the owners were “absent”. Clinique’s chairman Ron Lauder is also chair of the (JNF). Activists have now called on consumers to boycott Clinique as part of the Boycott, Divestments and Sanctions (BDS) campaign against companies involved with or profiting from the violation of Palestinian rights. (ref: 119) Anti-Social Finance Fined for price fixing (January 2012) According to an article on Edmonton Journal website, www. edmontonjournal.com, viewed by Ethical Consumer in January 2012, Estee Lauder along with twelve other French perfume giants had been fined 40 million Euros for colluding to keep prices high between 1997 and 2000. In January 2012 a Parisian court of appeal upheld the fine imposed on the companies in 2006 by the French competition watchdog. The Watchdog had said that the companies involved had reached illicit agreements on price fixing; enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance. In the original ruling the price watchdog had said that the companies had arrangements with the distributors and that the agreements saw ‘price police’ ensuring distributors were sticking by the deal. The watchdog stated that the companies had applied pressure and threats of commercial reprisals for those distributors that refused to apply the prices imposed by the brands. (ref: 58) Fined for price fixing (January 2012) According to an article on the Edmonton Journal website, www. edmontonjournal.com, viewed by Ethical Consumer in January 2012, Clinique along with twelve other French perfume giants had been fined 40 million Euros for colluding to keep prices high between 1997 and 2000. In January 2012 a Parisian court of appeal upheld the fine imposed on the companies in 2006 by the French competition watchdog. The Watchdog had said that the companies involved had reached illicit agreements on price fixing; enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance. In the original ruling the price watchdog had said that the companies had arrangements with the distributors and that the agreements saw ‘price police’ ensuring distributors were sticking by the deal. The watchdog stated that the companies had applied pressure and threats of commercial reprisals for those distributors that refused to apply the prices imposed by the brands. (ref: 58) Subsidiaries in tax havens (2012) The company’s website (www.elcompanies.com) viewed June 2012 showed business offices in Hong Kong and Singapore. Both these countries were considered to be corporate tax havens by ECRA at the time of the report. (ref: 112) Euthymol toothpaste Owned by Johnson & Johnson Johnson & Johnson, One Johnson & Johnson Plaza, New Brunswick, NJ 08933 0001, USA Environment Environmental Reporting MIddle ECRA rating for environment report (June 2012) In June 2012 Ethical Consumer sent Johnson and Johnson a questionnaire asking for its environmental report. No response was received. Ethical Consumer searched Johnson and Johnson’s website for its environmental policy. The company had set goals relating to the environment in its Healthy Future 2015 policy. The goals were based on 2010 baseline figures and included 20 percent absolute reduction in facility CO2 emissions; increased onsite renewable and clean-technology energy capacity to 50 megawatts; 20 percent decrease in fleet CO2 emissions per kilometre driven; 10 percent absolute reduction in water consumption and a 10 percent absolute reduction in total waste disposal. The company had been reporting to the Carbon Disclosure Project and there was some meaningful carbon data on its website. Johnson and Johnson also reported to the World Resources Institute (WRI) Greenhouse Gas Reporting protocol. The company’s headquarters had received a LEED Gold Certification for Existing Buildings. While the company did have environmental targets which were dated and quantified, it was not felt the company showed reasonable understanding of its impacts especially making no mention of chemicals as a pharmaceutical manufacturer, it was also unclear whether the data had been independently verified. Therefore Johnson and Johnson received Ethical Consumer middle rating for its environmental reporting. (ref: 120) Pollution & Toxics Banned ingredient found in medicine (January 2007) According to the January/March issue of the Food Magazine (issue 76), a survey of 41 children’s medicines found that Johnson & Johnson’s Sudafed Children’s Syrup, contained azo dyes. The magazine stated that these dyes were ‘banned from food and drink specifically designed for consumption by children under three years old [...as they] may cause allergic reactions, including asthma’. (ref: 121) Use of nanotechnology (June 2012) The document “Johnson & Johnson Guidelines: Responsible Use of Nanotechnology” was downloaded from the Johnson & Johson website, www.jnj.com, in June 2012. This provided guidelines for the way in which Johnson & Johnson operating companies should use nanotechnology responsibly. The 2007 Corporate Watch report ‘Nanotechnology: undersized, unregulated and already here’ documented the growing evidence that nanomaterials pose a unique but so far poorly understood range of toxicity problems, along with concerns about the wider social and economic impacts of nanotechnology. (ref: 122) Toxic chemicals in personal care product (October 2007) The Ecologist Volume 37, Issue 8 (October 2007) looked ‘Behind the Label’ of K-Y Jelly, made by Johnson & Johnson and found that such lubricants could contain a number of unhealthy ingredients. The article discussed the effects of such products on fertility, many studies had found that personal lubricants can have a deleterious effect on sperm function, motility and their ability to penetrate cervical mucus, even in the small concentrations found in these products. Several studies had found that these products can be as lethal to sperm as contraceptive jelly. One study cited found that exposure to K-Y Jelly after fertilisation was found to cause severe decline in the ability of embryos to form ‘in vitro’. The article also listed the product’s ingredients and their possible health effects as follows: Glycerine - emollient - can cause skin dryness over time and make it more prone to absorbing chemicals, has been shown to be toxic to sperm and as a sugar can feed yeast infections. Hydroxyethylcellulose - emollient - no known toxic effect but poorly studied. Gluconolactone - antimicrobial, controls pH - harsh acid, can irritate skin and eyes. Chlorohexidine digluconate - antiseptic - mildly toxic by ingestion, a skin and eye irritant, evidence suggests it may cause cellular mutations. Methylparaben - parabens are known to be oestrogenic and exposure has been associated with the proliferation of breast cells, irritating to skin and may cause contact allergies. Sodium hydroxide - preservative, controls pH - can cause irritation to the skin and eyes. (ref: 123) Animals Animal Testing Worst ECRA rating for Animal Testing Policy (July 2012) Ethical Consumer searched the Johnson and Johnson website, ww.jnj.com in July 2012 and found that it had a policy to use animals to test the safety and quality - esepcially for baby products for which, according to Johnson and Johnson, animal testing is needed ‘to assure their safety... [and] have an obligation to produce the mildest, gentlest products possible.’ The company therefore received Ethical Consumer’s worst rating for animal testing. (ref: 120) Manuafacture of animal tested products (July 2011) According to the PETA website viewed in July 2011, Johnson & Johnson was on a list of companies that tested on animals. The companies were on the list because they manufacture cosmetic and household products that are tested on animals. (ref: 8) Animal Rights Use of animal by-products (June 2009) A Greenpeace International report published in June 2009 and called ‘Slaughtering the Amazon’, linked Brazilian cattle and leather producer, Bertin, to Johnson & Johnson which Bertin described as major client in the hygiene and beauty sector. Animal by-products such as tallow (rendered beef fat) are used in many of its personal care products such as soap. (ref: 124) Product contains gelatine (October 2008) According to the Benecol website, www.benecol.co.uk, accessed by Ethical Consumer in October 2008, Benecol light spread contained gelatine, a slaughterhouse by-product. (ref: 125) People Human Rights Patents affect access to HIV treatments (December 2011) An article posted on the New Internationalist website, www.newint. org, on December 1 2011 stated that Johnson & Johnson were “putting a huge number of lives at risk” by refusing to negotiate with the Medicines Patent Pool, an organisation set up in 2010 to make HIV drugs cheaper, better and more accessible. Patents held by pharmaceutical companies were said to be a significant reason why more than nine million people in the global South could not get the HIV medicines they needed. The company was said to hold patents on 3 new HIV drugs, and, according to the article “as some medicines are built from several patents from different sources, the company’s refusal to play ball means some cheap drugs can’t even be made with patents that have been licensed to the Pool by others.” The article stated that joining the Pool would have little impact on the company’s profits, but would reduce the cost of HIV treatments from $1,000 to less than $100 per patient per year. HIV treatments were said to be an effective way of preventing the spread of the virus. (ref: 126) Subsidiaries in seven oppressive regimes (January 2012) Johnson and Johnsons SEC 10-K form Exhibit 21, downloaded from SEC website, listed all the subsidiaries the company had as of January 2012. The company listed subsidaries in Israel, India, Venezuela, Russia, Thailand, China, and Colombia. At the time of writing each country was considered by Ethical Consumer to be governed by oppressive regimes. (ref: 127) Sponsoring sporting event in an oppressive regime (29 March 2007) According to an article dated 29th March 2007, viewed on the website of TV Guide (www.tvguide.com) 23rd April 2007, the actor Mia Farrow had criticised 4 of the sponsors of the Olympic Games in China. It was said that Johnson & Johnson was one of these sponsors. The article stated that Farrow was a UNICEF goodwill ambassador. According to the article, China was supplying arms to Sudan and had very large oil investments in the country, “rights groups” said that China’s involvement in Sudan was “frustrating attempts” to stop the conflict in the country. Farrow was quoted as saying that China was “bank rolling Darfur’s genocide”, Darfur being an area of Sudan. these standards and ongoing performance in its sourcing decisions. The document stated Johnson & Johnson’s external manufacturing partners were expected to treat people with dignity and respect, not to use forced labour and for employment to be free from discrimination. The document stated the suppliers were to respect workers’ rights to make informed decisions free from coercion, threat of reprisal or unlawful interference with regards to their desire to join or not join organisations and respect worker’s rights to bargain collectively. Johnson and Johnson had a document called Policy on Employment of Young Persons which outlined that no child under the age of 16 could be employed. Due to the lack of commitment with regards to hours and living wages Johnson and Johnson received a rudimentary supply chain policy rating. Stakeholder engagement (poor) A search of Jonhson and Johnson’s website found no evidence of its involvement in multi-stakeholder processes or NGO’s, NFP’s or Trade Unions working to improve workers rights within its supply chain. Johnson and Johnson did have a confidential employee hotline phone resource and website which was managed by EthicsPoint. Due to a lack of stakeholder engagement Johnson and Johnson received a poor rating. Auditing and reporting (poor) According to Johnson and Johnson’s website, the company and its subsidiaries were monitored for compliance through an internal audit process, which included a compliance assessment against its Global Labor and Employment Guidelines. Procedures were in place to identify and remedy non-compliance situations, which were reported to senior management. Johnson and Johnson listed on its website which countries it considered to be at risk of human rights violations. It wasn’t clear if this meant that subsidiaries or manufacturing plants were monitored more closely. For external manufacturers Johnson and Johnson stated that they were subject to periodic inspections. The website did not contain a schedule or a list of manufactures, there was no clear policy on remediation, Johnson and Johnson there received a poor rating for auditing and reporting. Difficult issues (poor) China and Sudan were both on ECRA’s list of oppressive regimes at the time of writing. (ref: 128) A search of Johnson and Johnson website found no evidence that it was working to address issues such as freedom of association in countries where it was restricted or payment of a living wage. Johnson and Johnson received a poor rating for difficult issues. (ref: 120) Supply Chain Management Irresponsible Marketing Worst ECRA rating for supply chain management (June 2012) In June 2012 Ethical Consumer sent Johnson and Johnson a questionnaire regarding its supply chain management. No response was received. Ethical Consumer searched its website and found a section on the website for suppliers. This included a document called Standards for Responsible External Manufacturing. Supply chain policy (rudimentary) JnJ Standards for Responsible External Manufacturing document was unclear whether this applied to the whole supply chain. Johnson and Johnson stated that it considered progress in meeting (See also ‘Patents affect access to HIV treatments’ in Human Rights above.) Ordered to pay $1.1billion penalty over Risperdal (April 2012) According to Bloomberg, in April 2012, Johnson and Johnson and its subsidiary company Janssen had been ordered to pay more than $1.1 billion in fines after a judge ruled that the company’s officials misled doctors and patients about the risks of the antipsychotic drug Risperdal. Judge Tim Fox in Arkansas found that Johnson and Johnson and Janssen committed more than 280,000 violations of the state’s Medicaid fraud laws by illegally marketing Risperdal over a four-year period starting in 2002, with each violations carrying a $5,000 fine. Along with contending that Johnson and Johnson and Janssen defrauded the Medicaid program by failing to properly outline the antipsychotic medicines risks, Arkansas officials alleged Johnson and Johnson officials deceptively marketed the drug as safer and better than competing medicines. The state also argued that the companies marketed the drug for ‘unapproved uses, including various symptoms in children and the elderly’ after being warned by federal authorities to halt such sales. It was also argued that executives of both companies made false statements about the drugs diabetes risks and other side effects in its warning labels. The Attorney General stated that ‘these two companies put profits before people, and they are rightfully being held responsible for their actions’. (ref: 129) Misleading marketing (March 2009) In March 2009 The Food Magazine reported that Benecol Olive Spread contained only 14% olive oil, and was mostly water and rapeseed oil. (ref: 45) Politics Genetic Engineering Involvement in genetic modification (July 2012) The document ‘Genetically Engineered Organisms’ was downloaded by Ethical Consumer from the Johnson & Johnson website, www.jnj.com, in July 2012. It stated that the company was conducting research into recombinant proteins and products from modified organisms for medical purposes. “New bio pharmaceuticals produced through recombinant technology have significantly improved the treatment and quality of life of patients suffering from such diseases as rheumatoid arthritis, Crohn’s disease and psoriasis. Our bio pharmaceutical companies work closely with regulatory authorities around the world to ensure that appropriate standards and controls are in place when these technologies are used and that patient safety and the environment are protected.” The document went on to discuss the use of genetic engineering for non-medical purposes: “Today, scientists are also able to alter the genetic makeup of plants to make them more resistant to disease and pests. While a small percentage of ingredients in some of our consumer products may be derived from an approved genetically modified agricultural source, such as corn derivatives, these ingredients must meet our high standards for purity, quality and safety.” (ref: 130) GM policy does not include animal feed (November 2008) In October 2008 Ethical Consumer emailed McNeils Nutritionals Ltd and attached a questionnaire that included a question regarding whether or not the company had a policy on genetic modification. The company responded as follows: “McNeil Nutritionals Ltd is committed to not using any genetically modified organisms or their derivatives as ingredients in any of our foodstuffs. In addition, we require that all process aids, enzymes and cultures are non-genetically modified (GM). All necessary steps, where feasible, are taken by McNeil Nutritionals Ltd and Suppliers (of McNeil products and ingredients) to ensure that ingredients, additives, process aids, enzymes and cultures used in our products are obtained from identity preserved or non-GM sources.” When asked by Ethical Consumer whether this policy included animal feed, the company responded “McNeil Nutritionals policy is to source non-GM ingredients including milk. We ensure milk is purchased from approved local suppliers. We are currently reviewing the policy regarding feed and the potential to source milk from 100% guaranteed GM-free feed sources in the current market place.” Ethical Consumer welcomed this positive policy in relation to genetic modification, but due to the fact that at the time of writing the milk used by the company was likely to come from animals that had been fed genetically modified feed as a result of the prevalence of such feed on the market, the company also received a criticism under Ethical Consumer’s rating system. (ref: 131) Boycott Call Boycott call by Uncaged campaign (May 2009) The Uncaged campaign website, www.uncaged.co.uk, listed Johnson & Johnson as a company to boycott when viewed by Ethical Consumer in May 2009. It was named as a company that either openly used animal-tested chemicals, or failed to demonstrate that the finished products and ingredients it used had not been tested on animals since a fixed cut-off date. (ref: 132) Political Activities Member of AMCHAM (January 2012) Johnson & Johnson was listed as a member of the American Chamber of Commerce (AMCHAM) EU on its website www. amchameu.be, viewed by Ethical Consumer on 30 January 2012. ECRA regarded AMCHAM-EU to be a corporate lobby group which lobbied for free trade at the expense of the environment, animal welfare, human rights or health protection. (ref: 133) Member of one international lobby group (2010) According to the organisation’s website www.wbcsd.org, viewed by ECRA in November 2010, in 2010 Johnson and Johnson was a member of the World Business Council for Sustainable Development. This was regarded by ECRA as an international corporate lobby group which exerted undue corporate influence on policy-makers in favour of market solutions that were potentially detrimental to the environment and human rights. (ref: 134) Membership of NFTC lobby group (25 May 2007) According to the website of the National Foreign Trade Council (NFTC), www.nftc.org, visited on 25th May 2007, Johnson & Johnson was listed as a director. The NFTC’s motto was ‘Advancing Global Commerce’ and it also claimed to be “the only business association dedicated solely to trade policy, export finance, international tax, and human resource issues on behalf of its members”. It also stated the organization advocated open world markets and fought against protectionist legislation and policies. It also offered rapid and effective response to fast-moving legislative and policy developments by a team with a reputation for tackling tough issues and getting results, and participation in NFTC-led business coalitions on major international trade and tax issues. These were listed as benefits of membership of the organisation. (ref: 135) Anti-Social Finance Under investigation for anti-competitive practices (21 October 2011) On 21 October 2011 it was reported on the BBC news website, www.bbc.co.uk, that the EU had launched an investigation into whether pharmaceutical companies Novartis and Johnson & Johnson had colluded to keep a generic painkiller out of the market in the Netherlands. The EU Competition Commissioner was quoted as saying “Paying a competitor to stay out of the market is a restriction of competition that the commission will not tolerate”. (ref: 136) Subsidiaries in tax havens (2012) Johnson and Johnsons SEC 10-K form Exhibit 21, downloaded from SEC website, listed all the subsidiaries the company had as of January 2012. The company listed subsidaries in Switzerland, Ireland, Hong Kong, Luxembourg and Singapore. At the time of writing each territory was considered by Ethical Consumer to be a tax haven. (ref: 127) Excessive Directors’ Remuneration (2010) In January 2011 the Proxy Statement 2010 of the company Johnson and Johnson, Pursuant to Section14(a) of the Securities Exchange Act, was downloaded from the website for the US Securities Exchange Commission, www.sec.gov. The Summary Compensation Table stated that the Chairman / CEO William C. Weldon had been paid a total of $30,813,844 in 2009. Russell C. Deyo VP. HR & General Counsel had been paid a total of $8,631,394 in 2009. Colleen A. Goggins WW Chairman, Consumer Group had been paid a total of $8,316,896 in 2009. All ‘Faith in Nature’ products completely avoid all artificial fragrances and colours, parabens and harsh surfactants, in order to bring the most natural and trusted products to the market place.” Ethical Consumer deemed any annual amount over £1m to be excessive. (ref: 34) Additionally, the Ethical Consumer Company Questionnaire stated that “We have been members of the BUAV since its formation approximately 25 years ago, and all our products, including the cleaning products are approved.” (ref: 138) Faith in Nature deodorant Owned by Faith Products Ltd Product sustainability Faith Products Ltd, Faith House, James Street, Radcliffe, Manchester, M26 1LN, UK Other Sustainability Features Environment Environmental Reporting Best ECRA rating for environmental reporting (2012) Faith Products Ltd responded to Ethical Consumer’s Company Questionnaire in March 2012, which had asked, among other things, for the company’s environmental policy or report. The company responded that it was an SME, with a turnover below £5m, and added that “although we don’t have a formal environmental statement, much of what we do is driven by the desire to be as environmentally responsible as possible. Hence we have moved the large majority of our bottles over to 100% rPET (recycled PET) within the last few months, and we believe we were the first company to offer a reusable roll-on deodorant by way of a refill cartridge etc.” As an SME producing environmental alternatives, the company received Ethical Consumer’s best rating in this category. (ref: 137) People Supply Chain Management Best ECRA rating for supply chain policy (2012) Faith Products Ltd returned an Ethical Consumer company questionnaire in March 2012 which had asked, among other things, for the company’s supply chain management information. The company responded that “We are members of SEDEX, the Supplier Ethical Data Exchange, the not for profit membership organisation for businesses committed to the continuous improvement of ethical and responsible practices in their supply chain. We will also audit individual suppliers if we think there is potential for the abuse of workers’ rights etc.” The company’s own factory was in Radcliffe, Manchester in the UK. As a small company, demonstraing effective management of its supply chain, it received Ethical Consumer’s best rating in this category. (ref: 137) Politics Company Ethos Company ethos (2012) In March 2012 the Faith in Nature website, www.faithinnature. co.uk, stated that: “We use no animal ingredients whatsoever in any of our products, so they are all suitable for vegetarians. Vegans further require that our products should have no animal involvement at all. With the exception of Propolis, a product manufactured by bees and which we include in our Neem and Propolis hair care products, every Faith in Nature product is Vegan and has been registered with the Vegan Society, entitling us to use their trade mark on our products. Limited toxics use (July 2012) According to the Faith In Nature website the company did not use the following chemicals which potentially pose a risk to the environment and human health: * Synthetic Fragrance and Dyes * Parabens or “-paraben” * MIT * Petrochemicals This product therefore received a positive mark under ECRA’s product sustainability category. (ref: 138) Animal Welfare Features Vegan Society approved (July 2012) According to Faith in Nature’s website (www.faithinnature. co.uk/index.asp) all products were vegetarian and all excluding the Neem & Propolis product ranges were Vegan Society approved. (ref: 138) Gillette shaving gel/foam Owned by Procter & Gamble Company Procter & Gamble Company, One Procter & Gamble Plaza, Cincinnati, Ohio 45202, USA Environment Environmental Reporting Middle ECRA rating for environmental reporting (2011) The Procter & Gamble Sustainability Report 2011 was downloaded from the company’s website (www.pg.com) in March 2012. This document identified the company’s main environmental impacts as centering around either its products, or its operations. The operational impacts mentioned were waste disposal, water usage, CO2 emissions and energy usage. It did not identify sourcing raw materials from sustainable resources as an environmental concern, although the report did discuss these issues for some isolated cases for materials such as wood pulp. It included several dated (2020) and quantified future targets including; replacing 20% of peroleum-based products with sustainably sourced renewable materials, having renewable energy powering 30% of the company’s plants and reducing truck transportation by 20%. However, no evidence could be found to say that the environmental data had been independently verified. As a result, the company received Ethical Consumer’s middle rating in this category. (ref: 139) Climate Change Inadequate palm oil policy (2012) The Procter & Gamble Company website (www.pg.com) was searched by Ethical Consumer in March 2012 for the company’s policy on palm oil. The website stated that: “P&G is committed to the sustainable sourcing of palm oil. By 2015, we intend to purchase and use only palm oil that we can confirm to have originated from responsible and sustainable sources.” It added that the company would encourage and reward “sustainable behavior” on behalf of its partners and suppliers - to include visiting suppliers and conducting audits to ensure that their practices would meet or exceed the company’s ‘Sustainability expectations’. It also said it recognised the criteria and certification of the Roundtable for Sustainable Palm Oil (RSPO) as evidence of sustainable palm oil sourcing. However, due to the massive environmental and social impacts of palm oil production, companies which used palm oil and had an insufficient policy on sourcing this responsibly (currently and not just a future target) received negative marks under the Climate Change, Habitats & Resources and Human Rights categories. (ref: 140) Pollution & Toxics Elevated cadmium levels among workers (January 2008) According to an article posted on the Wall Street Journal website, http://online.wsj.com, dated January 15th 2008, Mrs Wang, who for years worked as an engineer for a company making batteries for companies including Duracell, had suffered kidney failure and become often too weak to walk. According to her doctors this was a result of cadmium poisoning from her place of work. 400 other employees of the firm had also been found to have unsafe levels of the toxic metal which, in addition to kidney failure, can also cause lung cancer and bone disease. For years factory workers had complained about illness - nausea, hair loss and exhaustion. Following a strike sparked by some workers paying for cadmium testing and finding they had elevated levels, the factory introduced cadmium testing. This resulted in around 900 workers quitting their jobs, they were given compensation packages but many workers said the amount was not enough to cover their medical bills. Mrs Wang, who had much less contact with cadmium than most workers, was suing the company for $400,000 in compensation. The article also said that more than 10% of China’s arable land was contaminated with heavy metals such as cadmium and that the metals were entering the food supply. Academic studies had found unsafe levels of cadmium in fruit and vegetables grown in Chinese soil. The article stated that although the battery industry was not the only source of environmental cadmium contamination in China it was a major contributor and said that the Chinese nickel-cadmium battery industry was sickening workers and poisoning the soil and water. (ref: 141) Nanotechnology and animal testing (July 2012) The Uncaged website, www.uncaged.co.uk, contained a page entitled ‘P&G’s Nanotechnology’ when viewed by Ethical Consumer in July 2012. This stated that the company was “involved in cruel animal tests of nanoparticles” and were pushing a big new animal testing programme to assess how poisonous different nanoparticles are. (ref: 142) Manufacture or sale of products containing triclosan (2012) According to the GoodGuide website viewed in March 2012, the following Procter & Gamble product was listed as containing Triclosan: Joy washing up liquid. Triclosan is an antibacterial agent suspected of causing skin or sense organ toxicity, immunotoxicity and is linked to antibiotic resistance. (ref: 143) Habitats & Resources (See also ‘Inadequate palm oil policy’ in Climate Change above.) Bottom of tissue league table (September 2007) According to Greenpeace’s Tissue Product Guide produced in September 2007 to assess which tissue products are made from recycled or FSC certified paper, Procter & Gamble failed to respond to the survey and so therefore received the worst rating and came bottom of the league table. They were the only one of the 14 companies that failed to report. (ref: 144) Animals Animal Testing (See also ‘Nanotechnology and animal testing’ in Pollution & Toxics above.) Worst ECRA rating for animal testing policy (2012) The Procter & Gamble Company website (www.pg.com) was searched in March 2012 for the company’s animal testing policy. The website stated that the company was committed to removing animal testing and finding alternatives and that 99% of its products were not tested on animals. However, it also said: “Sometimes, to ensure that materials are safe and effective, we must conduct research that involves animals. This is a last resort. We consider such research only after every other reasonable option has been exhausted. The vast majority of our tests do not use animals and our ultimate goal is to completely eliminate animal testing.” As a result, the company received Ethical Consumer’s worst rating in this category. (ref: 140) Manufactures animal-tested products (July 2011) According to the PETA website viewed in July 2011, Procter & Gamble was listed in a pdf called ‘Companies that test on animals’ produced by People for the Ethical Treatment of Animals. The companies were on the list because they manufacture cosmetic and household products that were tested on animals even though it is not required by law. (ref: 8) Factory farming Sale of factory farmed meat (2012) Procter and Gamble brand Iams’ range of pet foods, viewed on its website, www.iams.com, by Ethical Consumer in March 2012, had meat as a major ingredient. The meat used by the company, which included chicken lamb and beef, did not appear to be organic or free range and was therefore assumed to be from factory farm sources. (ref: 145) Animal Rights (See also ‘Sale of factory farmed meat’ in Factory farming above.) Recall of poisonous pet food (2007) According to the Summer 2007 issue of Earth Island Journal, March 2007 saw the biggest recall of product in the history of the pet food industry. Iams and Eukanuba were two of the companies implicated in the scandal, which had seen over 153 brands of pet foods and treats taken off the shelves all over the USA due to it containing wheat gluten and rice protein concentrate which had been contaminated with melamine, a material used to manufacture kitchen utensils and, in China, fertiliser. It said the melamine had been added to the wheat and rice in a bid to increase their protein levels, and had been imported by two US companies from China. The number of reported deaths and illnesses in pets ranged from 16 to more than 3,000, depending on the source. In addition as the meat based petfood was not labelled as organic or free range it was assumed to have been sourced from factory farms. (ref: 146) People Human Rights (See also ‘Inadequate palm oil policy’ in Climate Change above.) Investment in an oppressive regime (3 February 2011) On 3rd February 2011 it was reported on the website Dirt Diggers Digest, dirtdiggersdigest.org, that a number of U.S. and European corporations had heavily invested in Egypt, “thereby shoring up the regime” At the time of writing, Egypt was experiencing major civil unrest that was being met with violence by the government of Hosni Mubarak. On the same day the BBC reported that there had been “dozens of deaths at the hands of the security forces”. Procter & Gamble was said to manufacture in the country, and in June 2010 had announced plans to build a $176 million facility, which would double the value of its Egyptian operations. At the time of writing, Egypt was on Ethical Consumer’s list of oppressive regimes. (ref: 147) Operations in 13 oppressive regimes (2011) The Procter & Gamble Sustainability Report 2011 included a list of the company’s plant locations. This list included plants in the following countries which were on Ethical Consumer’s list of opporessive regimes at the time of writing: China, Colombia, India, Nigeria, Pakistan, Philippines, Russia, Saudi Arabia, Thailand, Venezuela and Vietnam. The Hoovers website (www. hoovers.com) listed subsidiaries of the company in Israel and Srti Lanka, which were also on the list of oppresive regimes at the time of writing. (ref: 139) Workers’ Rights (See also ‘Elevated cadmium levels among workers’ in Pollution & Toxics above.) Self disclosure of pollution and health and safety violations (2009) The Proctor and Gamble 2009 Sustainability Report was viewed by Ethical Consumer in January 2010. The report contained a section entitled ‘Notice of Violations (NOVs)’ which listed global data on environmental, transportation, and worker health and safety violations over the past three years. It stated that in 2009, the number of fines decreased in every category, particularly in its focus area of transportation. It gave figures for number of violations and total cost of fines as follows: 2009: 34 $15,285, 2008: 82 $305,328, 2007:37 $106,257. It then gave a more detailed breakdown of global Notices of Violation (NOVs) and including U.S. Occupational Safety and Health Administration (OSHA) interventions for 2009, giving both the number of violations and cost of fines: Water-Based 16 $6,000 , Air-Based 4 $0, Solid Waste-Based 0 $0, Paperwork 0 $0, Transportation-Based 5 $3,000 Other 1 $0, Worker Safety 8 $6,285, Total 34 $15,285. (ref: 148) STAKEHOLDER ENGAGEMENT (poor) No mention found. AUDITING AND REPORTING (poor) The Sustainability Report stated that in the financial year 2010/11 the company had re-launched its supplier assessment program. It said that this effort had stemmed from its membership in a trade association, AIM-PROGRESS, where 23 member companies were working together to increase the efficiency of the supplier auditing process. Half of the members, including P&G, were using the Supplier Ethical Data Exchange (Sedex) system. During the year the company stated that it had “identified our preferred third-party audit firm” and that this firm had begun to conduct assessment of some of the company’s high-risk suppliers. However, a full audit schedule was not given, nor was a committment made to auditing the entire supply chain. The document also stated that compliance with P&G’s ‘Sustainability Guidelines for Supplier Relations’ was a condition of business and that this “therefore makes noncompliance grounds for disqualification for all new and ongoing supply agreements.” It said that when potential noncompliance issues were identified, they were communicated to the supplier “as part of the closing meeting”. Corrective actions, including formal notification and a remediation action plan, were then implemented. In some cases, the company said it required immediate action to achieve compliance, or it halted business. These included “child labour or forced labour, and egregious health and safety violations presenting immediate danger to human health. If a compliance issue is not resolved in a timely manner, the business relationship is terminated.” No mention was made of whether the company or supplier paid the costs of audits. Supply Chain Management Worst ECRA rating for supply chain management (2012) The Procter & Gamble Company website for suppliers and supplier-related information (www.pgsupplier.com) was searched by Ethical Consumer in February 2012 for the company’s supply chain management information. Procter & Gamble Company did not respond to an Ethical Consumer’s company questionnaire in February 2012 which had asked for this information, among other things. Some information was found on the website www.pgsupplier. com, and some in the company’s latest Sustainability Report (dated 2011). SUPPLY CHAIN POLICY (rudimentary) The information found on www.pgsupplier.com stated that the company’s ‘Sustainability Guidelines for Supplier Relations’ dictated that it would not would not use child labour (defined as according to ILO standards, wouild not use forced labour, would not allow discrimination and respected workers freedom of association. However, it only committed to wages, overtime limits and working hours which complied with local law. In some countries that the company operated in, the minimum wage would not be sufficient to cover the basic costs of living and working hours and overtime limits might be higher than the ILO standard (48 hours plus 12 hours overtime a week). DIFFICULT ISSUES (poor) No mention found. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 149) Irresponsible Marketing (See also ‘Recall of poisonous pet food’ in Animal Rights above.) Recall of nasal sprays due to bacterial contamination (November 2009) According to an article posted on the bbc news website Procter & Gamble had announced it was recalling 120,000 bottles of Vicks Sinex nasal spray after small traces of bacteria were found in the product. Bottles shipped to the US, the UK and Germany were being recalled after traces of the B. cepacia bacteria were found at a German plant in Gross Gerau. Procter and Gamble said no illnesses had been reported, but the bacteria can affect people with lung problems. The consumer products giant stressed the recall was just a precautionary measure, but added that “the bacteria could cause serious infections for individuals with a compromised immune system, or those with chronic lung conditions, such as cystic fibrosis.” (ref: 150) Politics Genetic Engineering Experiments involving transgenic mice (January 2010) The following was found on the Uncaged website, www.uncaged. co.uk, by Ethical Consumer in January 2010. ‘P&G are involved in genetically-engineering mice to create new ways of testing ingredients for use in products such as laundry liquids, Fairy liquid, Flash cleaner, skin care, hair products, and other cosmetics. Genetic engineering is known to cause serious animal welfare problems due to the fact that large numbers of animals are involved, surgery and other invasive procedures are used in their creation, and that genetic modification is likely to cause harmful deformities. In these experiments, mice were genetically engineered to be more vulnerable to asthma and lung damage. The substance (a P&G-patent detergent enzyme called ‘subtilisin’) was repeatedly injected into the bodies and up the noses of the mice, causing their lungs to become damaged and filled with blood, followed by pneumonia. (ref: 54) No GM policy found on company website (2012) Ethical Consumer searched the Procter and Gamble website, www. pg.com, in March 2012. No such policy could be found and the only reference to GM was in relation to the sourcing of wood pulp. The company sold pet food containing meat, therefore it was considered likely that it was selling products containing both genetically modified grains and animal products from animals fed GM crops. A Soil Association report published in November 2008, entitled ‘Silent invasion: the hidden use of GM crops in livestock feed’, estimated that around 60% of the maize and 30% of the soya in the feed used by dairy and pig farmers is GM. Therefore without a policy to the contrary we would assume there was a high probability that such products would be derived from animals fed GM feed. (ref: 140) Boycott Call Boycott call by Uncaged (2012) The Uncaged website, www.uncaged.co.uk, viewed by Ethical Consumer in February 2012 highlighted the campaign group’s ongoing boycott of Procter & Gamble. The boycott called for consumers to boycott the company and its products because of the company’s ongoing “cruel and unnecessary” testing on animals for the sake of cosmetics and cleaning products. Uncaged was urgently calling on the International Olympic Committee (IOC) to pull out of London 2012 sponsorship talks with the company over its controversial animal-testing. (ref: 31) Boycott call by Peta (2012) Peta’s Iams website (www.iamscruelty.com) confirmed that the boycott of Iams products was ongoing when it was viewed by Ethical Consumer in March 2012. According to Peta, the boycott would continue until Iams stopped conducting experiments on animals, and instead used laboratory analysis of formulas for nutritional composition and in-home studies using dogs and cats who had been volunteered by their human companions. (ref: 151) USCIB was founded in 1945 to promote an open world trading system and claimed to be one of the “premier pro-trade, pro-market liberalization organisations”. According to the USCIB website the organisation “provides unparalleled access to international policy makers and regulatory authorities”. (ref: 153) Member of WBCSD lobby group (January 2012) According to the organisation’s website www.wbcsd.org, viewed by Ethical Consumer in January 2012, at that time Procter and Gamble was a member of the World Business Council for Sustainable Development. This was regarded by ECRA as an international corporate lobby group which exerted undue corporate influence on policy-makers in favour of market solutions that were potentially detrimental to the environment and human rights. (ref: 56) Member of AMCHAM (January 2012) P&G was listed as a member of the American Chamber of Commerce (AMCHAM) EU on its website www.amchameu. be, viewed by Ethical Consumer on 30/01/12. ECRA regarded AMCHAM-EU to be a corporate lobby group which lobbied for free trade at the expenseof the environment, animal welfare, human rights or health protection. (ref: 133) Anti-Social Finance Subsidiaries in four tax havens (2012) According to the Hoovers website (www.hoovers.com), viewed by Ethical Consumer in March 2012, Procter & Gamble had subsidiaries in Guatemala, Ireland, Luxembourg, Panama and Singapore, all of which were on Ethical Consumer’s list of tax havens at the time of writing. (ref: 77) Excessive Directors’ Remuneration (2012) According to the CEO Pay Watch Database www.aflcio.org, viewed in July 2012, the Procter & Gamble Company CEO was paid $13,115,228 in 2011, which equals roughly £8,458,800. Ethical Consumer deems any amount over £1 million annually to be excessive. (ref: 26) Fined for price fixing (April 2011) In April 2011 it was reported on the Guardian website, www. guardian.co.uk, that Proctor & Gamble was one of two European firms fined for price fixing. The European Commission was said to have found that the companies “colluded” over the price of washing machine powder in 8 countries over 3 years. According to the article, Proctor & Gamble’s fine was reduced by 50% to €211.2m as it had “co-operated with the investigation and agreed to settle”. (ref: 154) Green People shampoo [O,S,A] Owned by Green People Company Ltd Green People Company Ltd, Pondtail Farm, Coolham Road, West Grinsted, West Sussex, RH13 8LN Green People Company Ltd is owned by Desford Holdings Environment Boycott of shampoo brand (2012) According to the Hurtful Essences website (www.hurtfulessences. org), viewed by ECRA on 12 March 2012, the Hurtful Essences campaign, run by Uncaged, was calling on consumers to boycott Procter & Gamble’s brand Herbal Essences because these products were tested on animals. (ref: 152) Environmental Reporting Political Activities Green People replied stating that it was certified and inspected annually by three independent organic certification bodies (Soil Association, Organic Food Federation and EcoCert) each of which had set strict standards regarding environmental impact limitation. The response continued stating that the company was committed to minimising the environmental impact of its entire business, from sourcing of raw materials and packaging, Member of United States Council for International Business (February 2012) The USCIB (United States Council for International Business) website www.uscib.org viewed by Ethical Consumer in February 2012 listed the Procter & Gamble Company as a member. The Best ECRA rating for environmental reporting (June 2012) In June 2012 Ethical Consumer emailed the Green People Company Ltd and attached a questionnaire that included a request for a copy of the company’s environmental policy, statement or report. through manufacturing and transportation, through to disposal of packaging once the products have been used. As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for environmental reporting. (ref: 155) Pollution & Toxics Nanotech particles in sunblock (June 2012) Green People returned a questionnaire to Ethical Consumer in June 2012. In response to a question regarding whether the company used nano-technology, it stated: “We are against the use of novel nano ingredients in all aspects of society. However, we do use nano-grade Titanium dioxide in some of our sun lotions. We believe that this is justified due to the long history of safe use of this particular ingredient, and the huge amount of research that has repeatedly demonstrated its safety. Nano Titanium dioxide is a very effective UV filter, protecting skin from sun-induced damage that can cause premature aging and increases the risk of skin cancer. Other EU-approved UV filters have adverse effects either on the user or the environment and in our opinion are not viable alternatives.” (ref: 155) People Supply Chain Management Best ECRA rating for supply chain policy (June 2012) In June 2012 Ethical Consumer emailed the Green People Company Ltd and attached a questionnaire that included a request for a copy of the company’s supply chain management, statement or report. Green People responded to the questionnaire stating the majority of ingredients that it used were certified organic by IFOAM accredited certification bodies. A condition of that certification is that workers rights must be respected and upheld right throughout the production process, from the farmers or gatherers of the crops, through the processing and transportation of ingredients to the manufacture and distribution of the finished product. Non-organic ingredients and componentry were bought from manufacturers and suppliers who operated within the EU and Scandinavia and who conform to the International Declaration of Human Rights. As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for supply chain management. (ref: 155) Politics Company Ethos Vegetarian company (February 2010) In February 2010 the Green People website, www.greenpeople. co.uk, stated that all of the company’s products were vegetarian and most were vegan. (ref: 156) Product sustainability Organic Product Vegan and organic products (July 2012) The Green People website (www.greenpeople.co.uk), viewed by ECRA in July 2012, stated that its shampoos carried the Vegan Society logo and were certified organic. (ref: 156) * Methylchloroisothiazolinone and Methylisothiazolinone * polyethylene glycol “PEG” and “-eth” * Petrochemicals This product therefore received a positive mark under ECRA’s product sustainability category. (ref: 155) Animal Welfare Features (See also ‘Vegan and organic products’ in Organic Product above.) Honesty shampoo Owned by Honesty Cosmetics Honesty Cosmetics, Lumford Mill, Bakewell, Derbyshire, DE45 1GS Environment Environmental Reporting Best ECRA rating for environmental reporting (2007) In June 2012 Ethical Consumer emailed Honesty Cosmetics and attached a questionnaire that included a request for a copy of the company’s environmental policy, statement or report. No response was received. Ethical Consumer searched the company’s website for a report and it found that the company produced cruelty free products and it was increasingly adding products with organic ingredients. As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for environmental reporting. (ref: 157) People Human Rights Best ECRA rating for palm oil policy (July 2012) A search was made by Ethical Consumer for Honesty Cosmetic’s palm oil policy on its website in July 2012. No policy was found, however the company stated ‘we try our best to ensure the source of raw materials does not exploit or adversely affect the environment or its people’. The company had a turnover of under £8 million per year, the threshold above which Ethical Consumer expected to companies to have a more robust palm oil policy. This reference is for information only. (ref: 157) Supply Chain Management Best ECRA rating for supply chain management (June 2012) In June 2012 Ethical Consumer emailed the Honesty Cosmetics and attached a questionnaire that included a request for a copy of the company’s supply chain policy, statement or report. No response was received. A search of the website found that the company manufactured all its products itself in the UK. As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for environmental reporting. (ref: 157) Politics Other Sustainability Features Company Ethos Toxic Free (April 2011) According to the Green People website the company did not use the following chemicals which potentially pose a risk to the environment and human health: All products comply with BUAV not tested on animals criteria (2012) The BUAV website www.buav.org viewed by ECRA in July 2012 listed Honesty Cosmetics as a Humane Cosmetics Standard approved company selling non-animal tested cosmetics. To be approved for the Humane Cosmetics Standard, a company must * Synthetic Fragrance and Dyes * Parabens or “-paraben” no longer conduct or commission animal testing and must apply a verifiable fixed cut-off date - an unmoveable date after which none of the products or ingredients have been animal tested. The scheme requires each company to be open to an independent audit throughout the supply chain to ensure that they adhere to the animal testing policy criteria. Certified Sustainable Palm Oil via RSPO approved supply chain mechanisms and to promote and communicate sustainable palm oil production, procurement and consumption to customers, suppliers, sub-contractors and to wider value chains as appropriate.” This target was 100% by 31 May 2015. Product sustainability Due to the massive environmental and social impacts of palm oil production, companies which used palm oil and had an insufficient policy on sourcing this responsibly (currently and not just a future target) PZ Cussons received negative marks under the Climate Change, Habitats & Resources and Human Rights categories. (ref: 160) Other Sustainability Features Pollution & Toxics Free from some toxic chemicals (July 2012) According to the Honesty Cosemtics website viewed in July 2012, the company did not use petrochemicals, synthetic colours and fragrances or parabens. The company therefore received a ‘less significant’ sustainability rating because there was no mention of PEG or MIT use. (ref: 157) Poor chemical risk management (April 2009) According to an article published in issue 411 (April 2009) of the ENDS Report, a survey conducted by an investment company found that PZ Cussons was exposed to high levels of product and chemical safety risk but had poor systems in place to manage them. (ref: 161) Animal Welfare Features Habitats & Resources Vegan Society approved (2010) According to the Vegan Society’s 2010 Animal Free Shopper, Honesty products were all suitable for vegans and vegetarians and did not include any animal ingredients. The company’s products were also all approved by the Vegan Society. (ref: 159) (See also ‘Palm oil policy’ in Climate Change above.) Honesty Cosmetics was also listed as making Vegan Society approved products and all of its products are animal free.. (ref: 158) Imperial Leather shampoo Owned by PZ Cussons PLC PZ Cussons PLC, PZ Cussons House, Bird Hall Lane, Stockport, SK3 0XN, Great Britain Environment Environmental Reporting Worst ECRA rating for environmental reporting (2012) The PZ Cussons website (www.pzcussons.com) was searched by ECRA on 5 March 2012 for the company’s environmental policy or report. An undated page entitled “The Environment” was found. This stated that the group was committed to protecting the environment. It stated that it would set targets to reduce its environmental impacts, but did not give any further details about these targets, nor report on previous ones. It also said that it would continue to minimise the consumption of energy and water, as well as minimising the production of trade waste and waste to landfill, through efficient practices in the office, factory and warehouse environments. It only committed itself to comply with environmental laws and regulations, as a minimum standard. There was no meaningful carbon disclosure, no mention of independent verification and ECRA did not feel that the information provided demonstrated a reasonable understanding of the company’s main impacts. As a result, PZ Cussons received ECRA’s worst rating in this category. (ref: 160) Climate Change Palm oil policy (2012) PZ Cussons did not respond to ECRA’s written request in February 2012 for the company’s policy on the sourcing of palm oil. When ECRA searched its website in February 2012, the company’s 2011 Annual Report mentioned the company’s 31% stake in a Ghana palm oil plantation, Norpalm Ghana Ltd. This was said to allow the company to source palm oil more locally. However, since the company operated in Asia, Africa and Europe, ECRA considered it likely that it was sourcing palm oil from elsewhere too. The company was listed on the RSPO’s website as a member and it appeared to have some committment to the use of sustainable palm oil. The company stated that: “As a member of the RSPO, PZ Cussons will make a time bound commitment to source 100% Animals Animal Testing Worst ECRA rating for animal testing policy (2012) ECRA searched the PZ Cussons website (www.pzcussons.com) on 24 February 2012 for the company’s policy on animal testing. The following statement was found: “The Group does not conduct any animal testing or commission others to conduct any animal testing. We continue to support the development and acceptance of alternative methods which reduce or replace the use of animals in product safety evaluation and we work with our suppliers to ensure that our values on this subject are shared and, where feasible, that they work to similar standards.” This statement only made vague suggestions that it would require suppliers to operate a similar policy and also, did not exclude the use of ingredients which had been tested on animals. As a result, ECRA considered it likely that the company used such ingredients in its products and it received ECRA’s worst rating in this category. (ref: 160) People Human Rights (See also ‘Palm oil policy’ in Climate Change above.) Operations in three oppressive regimes (2012) According to the PZ Cussons entry on www.hoovers.com, viewed by Ethical Consumer in July 2012, the company had subsidiaries in India, Nigeria and Thailand. All these countries were on Ethical Consumer’s list of oppressive regimes at the time of writing. (ref: 77) Supply Chain Management Worst ECRA rating for Supply Chain Policy (2012) ECRA searched the PZ Cussons website (www.pzcussons.com) on 24 February 2012 for the company’s supply chain policy. No such document could be found on the website or in the company’s latest Annual Report (2011). The company had not responded to ECRA’s written request for this information. The website did contain some information on the rights of workers diectly employed by the company. e.g. the right to join (or not join) a trade union, a Group-wide commitment not to employ any person below the local legal working age and not, in any circumstances, below the age of 16 and the guarantee that all of the Group’s businesses will pay wages which, at a minimum, meet all relevant local legal standards. It also mentioned discrimination. The company did also have the following statement on its website: “Using auditors who are trained to recognised international standards, we conduct extensive audits of our 3rd party suppliers of products and raw materials to ensure that they meet PZ Cussons’ strict product safety and quality requirements. We also confirm that suppliers have suitable emergency procedures in place to ensure business continuity.” But this did not seem to cover workers rights issues. PZ Cussons was a large company operating in several countries which were on ECRA’s list of oppressive regimes at the time of writing. ECRA felt that a company of this size should have a policy in place protecting workers’ rights so as a result, the company received ECRA’s worst rating in this category. (ref: 160) Politics Boycott Call Boycott called for animal testing policy (2012) PZ Cussons was listed on the Uncaged website (www.uncaged. co.uk/crueltyfree.htm) as a company to boycott, when it was viewed by Ethical Consumer in July 2012. According to Uncaged, the boycott had been called because the company either openly used animal-tested chemicals, or failed to demonstrate that the finished product and the ingredients they used had not been tested on animals since a fixed cut-off date. (ref: 118) Inika’s use of natural ingredients throughout its product range the company was considered by Ethical Consumer to produce innovative environmental alternatives. (ref: 162) Positive animal testing policy (July 2012) A search of Inika cosmetics website, www.inikacosmetics.co.uk, by Ethical Consumer in June 2012 found that the company was certified vegan, halal and crulty free which means INIKA products were not tested on animals and none of its ingredients were tested on animals either. A search of the Vegan Society’s website found that the company was certified vegan through the group. The company was considered to have a positive policy on animal testing. (ref: 162) (See also ‘Best ECRA rating for environmental reporting’ in Environmental Reporting above.) Product sustainability Organic Product Certified Organic (July 2012) According to the company website Inikas products were certified either by Australia’s Organic Food Chain or Italy’s certifying body, Organic Cosmetic. (ref: 162) Other Sustainability Features Inika makeup Owned by Inika Reduced toxic content (July 2012) According to the Inika website the company did not use the following chemicals in any of it products. These potentially pose a risk to the environment and human health: Environment * Synthetic Fragrance and Dyes Environmental Reporting * Parabens or “-paraben” Best ECRA rating for environmental reporting (June 2012) In June 2012 Ethical Consumer emailed Inika Ltd and attached a questionnaire that included a request for a copy of the company’s environmental policy, statement or report. No response was received. * polyethylene glycol “PEG” and “-eth” Inika’s website stated that all products in the natural cosmetic range are Certified Organic or Vegan, Certified Halal and Certified Cruelty Free. INIKA used the finest Australian botanicals and would never use harsh or harmful chemicals, additives or fillers. * Petrochemicals This product therefore received a positive mark under ECRA’s product sustainability category. (ref: 162) Animal Welfare Features Vegan (July 2012) Ethical Consumer searched the inika website in July 2012 and found that all the products on the Inika website were Vegan Society approved. (ref: 162) As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for environmental reporting. (ref: 157) Owned by JASON Natural Products People JASON Natural Products, 5500 w. 83rd Street, Los Angeles, CA 90045, USA Supply Chain Management Worst ECRA rating for supply chain management (June 2012) In June 2012 Ethical Consumer emailed Inika and attached a questionnaire that included a request for a copy of the company’s supply chain policy. No response was received. A search was made of the company’s website, www.inikacosmetics.co.uk, no policy or statement relating to Inika’s supply chain was found. Due to the lack of information available the company received Ethical Consumer’s worst rating for suppply chain management. (ref: 162) Politics Company Ethos Company Ethos (July 2012) Inika’s website, www.inikacosmetics.co.uk, when viewed by Ethical Consumer in July 2012 found that the company used natural ingredients throughout its product range. In a sector where the use of petrochemicals and other toxics were prevalent JASON baby & kids toiletries JASON Natural Products is owned by Hain Celestial Group Inc Hain Celestial Group Inc, 58 South Service Road, Melville, New York State, 11747, USA Environment Environmental Reporting Middle ECRA rating for environmental reporting (2011) The Hain Celestial website www.hain-celestial.com was visited in July 2012. There was a 2011 Corporate Social Responsibility Report available to download. There were environmental performance improvements but these were mainly given in absolute terms rather than assessed against a target. And environmental targets were mainly not quantified: “As we increase production, our five environmental goals are to: Reduce relative waste and water consumption. Reduce greenhouse gases. Improve usage of renewable energy. Reduce natural gas and electricity usage. New for 2011: Reduce usage of fuel and increase use of green transportation by our common carriers.” There were however, two quantified targets: 1) In 2008 we set a goal to reduce packaging (by weight) by 5% within five years, in addition to efforts to generally improve our sourcing and usage. 2) Hain Daniels is working to achieve significant reductions to support the target of reducing water usage by 20% (compared to 2007) by March 2020 The report was not independently verified. The company specialised in organic and ‘natural’ foods, but because of its size, it did not meet the reporting requirements necessary for a best rating at Ethical Consumer at the time of writing. (ref: 163) Climate Change Use of palm oil likely to have been unsustainably sourced (July 2012) According to the Hain Celestial CSR 2011 report “Our palm oil suppliers for both our North American and European businesses are affiliated with recognized programs including the Roundtable for Sustainable Palm Oil (RSP), ProForest, and the International Federation of Organic Agriculture Movements (IFOAM).”. At the time of writing, ECRA policy was only to accept use of 100% certified sustainable or organic palm oil as a guarantee of sustainable sourcing. Because of this, the company received marks in the climate change, habitats and resources and human rights categories due to the problems associated with palm oil plantations. (ref: 163) Habitats & Resources (See also ‘Use of palm oil likely to have been unsustainably sourced’ in Climate Change above.) Animals Factory farming Sells meat products (July 2012) According to the Hain Celestial website, the company made a number of brands containing meat that was not labelled as free range or organic: Rosetto pasta, Ethnic Gourmet curry and New Covent Garden soups. (ref: 164) Animal Rights Poultry farm operations (2012) According to the Hain Pure Protein website, viewed by ECRA in July 2012, it produced “All Natural, Antibiotic Free, Vegetarian Fed, Humanely Raised poultry products.” At two of the poultry companies - Freebird and Plainville Farms - poultry was raised with 30-30% more space than conventional growers and fed a vegetarian and anitbiotic free diet. The third company - Epicurean Farms - used the French government certified Label Rouge program and are given double the space of a conventional flock. (ref: 165) People Human Rights (See also ‘Use of palm oil likely to have been unsustainably sourced’ in Climate Change above.) New joint venture in China (January 2010) According to Hoovers.com, viewed in January 2010, “In order to increase its footprint in China and the rest of Asia, in 2009 Hain formed a 50-50 joint venture, Hutchison Hain Organic Holdings, with Chi-Med, a subsidiary of Hutchison Whampoa. The joint venture markets and distributes Hain’s Earth’s Best brand of infant and toddler feeding products, along with its own Zhi Ling Tong brand of infant-nutrition supplements.” China was considered by Ethical Consumer to be an oppressive regime at the time of writing. (ref: 166) Supply Chain Management Worst ECRA rating for supply chain policy (2011) The Hain Celestial website www.hain-celestial.com website was visited in July 2012. There was a 2011 Corporate Social Responsibility Report available to download in which it stated: “All ingredient suppliers are audited by accredited third-parties, and we personally audit ingredient suppliers based on a priority schedule established by our Quality and Procurement teams. An enhancement to our referenced Food Safety and Quality manual is the implementation of a new Social Accountability Affidavit which all suppliers must sign, verifying that they comply with our high standards to safeguard human, animal and environmental health with fair and equitable treatment of qualified employees. In addition to product safety requirements, the issues it addresses include: Prohibition of child or compulsory labor. Required safe and healthy workplace environment. Freedom of association. Prohibition of discrimination. Dignified treatment of all employees. Appropriate working hours and remuneration.” These statements did not, however, constitute an undertaking of clear minimum standards for suppliers. There was not a clear enough statement on working hours and remuneration and so received a rudimentary rating for supply chain policy. There did not seem to be any stakeholder engagement. It did state that it audited suppliers, including third party audits but there was no mention of disclosure, remediation schedule and so received a poor rating here too. There was no mention of diffiult issues like homeworkers, living wage and audit fraud. The company specialises in organic and ‘natural’ and vegetarian foods - and is probably sincere in its claims to “support family farms and conversion to organic farming” - but for a company of its size we would expect more robust policies. It therefore received ECRA’s worst rating for supply chain policy. (ref: 163) Politics Anti-Social Finance Excessive Directors’ Remuneration (2010) In January 2011 the Proxy Statement 2010 of the company Hain Celestrial Group, Pursuant to Section14(a) of the Securities Exchange Act, was downloaded from the website for the US Securities Exchange Commission, www.sec.gov. The Summary Compensation Table stated that President, Chief Executive Officer and Chairman of the Board, Irwin D Simon, had been paid a total of $4,320,927 in 2010. He had been paid previously in 2008 a total of $15,169,827. (ref: 34) Product sustainability Other Sustainability Features Free from some toxic chemicals (July 2012) JASON products were free from the following chemicals when Ethical Consumer checked the company’s ingredients in July 2012: synthetic colors, parabens and mineral oil/petrolatum (petrochemical derivatives). JASON therefore received a ‘less significant’ sustainability mark. (‘Significant’ marks given to those products free from synthetic colors and fregrances, parabens, mineral oil/petrolatum, PEG and MIT.) (ref: 167) Animal Welfare Features Vegetarian product (July 2012) The JASON website viewed in July 2012 stated that all JASON products are vegetarian. (ref: 167) Criteria for sustainable palm oil production in 2005. As a result the company received marks against it for climate change, habitats and resources and human rights. (ref: 168) Pollution & Toxics Use of nanotechnology (March 2010) It was reported in the document “Research & Development and Intellectual Property”, downloaded from the Kao Corporation website, www.kao.com, in March 2010, that the company had rapidly created nano-sized crystals using a high speed technology. Nanotechnology was considered by environmental campaigners to pose a significant threat to the environment and human safety. (ref: 169) Habitats & Resources (See also ‘Worst ECRA rating for palm oil policy’ in Climate Change above.) John Frieda shampoo Animals Owned by John Frieda Professional Hair Care, Inc Animal Testing John Frieda Professional Hair Care, Inc is owned by KAO Brands Company which is owned by Kao Corporation (Japan) Worst ECRA rating for animal testing policy (July 2012) A search was made of Kao Corporation website, www.kao.com in July 2012 by Ethical Consumer for the company’s animal testing policy. Kao Corporation (Japan), Kao Corporation , 14-10 Nihonbashi Kayabacho, 1-chome, Chuo-ku, Tokyo, 103-8210, Japan Environment Environmental Reporting Best ECRA rating for environmental reporting (June 2012) In June 2012 Ethical Consumer sent Kao Corporation a questionnaire requesting its environmental report. No response was received. A search was made of Kao Corporation’s website and found its Sustainability Report 2011. On page 2 of the report the company stated that the report was verified by the Responsible Care Verification of the Japan Chemical Industry Association. Contained within the report were two dated and quantified environmental targets for 2020. It included a target for CO2 emissions from products to be reduced by 35% and a 30% reduction in water use during production. The figures were based on a 2005 baseline. The company went onto talk about the impact of products on the environment including initiatives to reduce packaging size and to make products more compact which in turn will reduce CO2 emissions. Kao also stated that it worked in accordance with Strategic Approach to International Chemicals Management (SAICM) in its management of chemical substances and also had seven basic policies on conservation of biodiversity. Given that the company had dated quantified targets, showed reasonable understanding of its main impacts and the report was independently verified it received Ethical Consumer best rating for environmental reporting. (ref: 168) Climate Change Worst ECRA rating for palm oil policy (July 2012) Ethical Consumer searched Kao’s website, www.kao.com, in July 2012 for its palm oil policy. Kao stated on its website that it had been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2007 and had started to purchase palm oil certified under the Book and Claim system (certified palm oil) from September 2010. According to its website, Kao planned to use only certified palm oil and palm kernel oil by 2015 as long as it could secure a sufficient amount. While Kao did have a target for then phase out of non-certified palm oil by 2015, Ethical Consumer did not take into account future commitments to source sustainable palm oil due to the fact the negative effects of palm oil production had been apparent for at least seven years. The RSPO first published its Principles and No statement could be found which stated the company did not test on animals, the company did have a section about ‘developing safety tests without the use of animals’. Kao appeared to have been developing safety test methods utilising cultured cells. However, without a statement stating the company had stopped testing on animals or it had a fixed cut off date for ingredients tested on animals, the company received a worst Ethical Consumer rating for its animal testing policy. (ref: 168) People Human Rights (See also ‘Worst ECRA rating for palm oil policy’ in Climate Change above.) Operations in oppressive regimes (2012) A search of Kao Corporation website in July 2012 by Ethical Consumer found Kao’s Sustainability Report 2011 which on page 69 listed the company’s principle subsidaries and affiliates. Kao had operations in China, Vietnam, the Philippines and Thailand. All countries were considered by Ethical Consumer to be govern by oppressive regimes. (ref: 168) Supply Chain Management Worst ECRA rating for supply chain management (June 2012) In June 2012 Ethical Consumer sent Kao Corporation a questionnaire asking for its supply chain management policy. No response was received. Ethical Consumer searched Kao Corporation website and found several documents which contained some provisions for workers rights. Supply chain policy (poor) Kao Corporations Compliance document in 2011 stated that employment should be free from discrimination. In a document called Principles of Corporate Ethics it stated that the company supported and implemented the Global Compact 10 principles which included freedom of association, prohibited forced and child labour and guaranteed employment was free from discrimination. However, the company did not define the age of a child, or have a provision for working hours or living wage. The document did not state that the provisions applied to the whole supply chain. Due to the lack of clarity over the provisions for supply chain employees Kao Corporation received a poor supply chain policy rating. Stakeholder engagement (poor) People A search of Kao Corporation’s website found no evidence that it had engaged with multi-stakeholder initiatives, NGO’s or NFP’s in improving workers’ rights within its supply chain. The company had both an internal and external reporting hotline for employees wishing to report non-compliance. The external hotline was set up for subsidiaries outside of Japan and callers could report violations in their language. Due to the lack of stakeholder engagement within its supply chain the company received a poor rating. Human Rights Auditing and reporting (poor) Kao’s Sustainability report 2011 mentioned that internal audits took place with the company. However the company did not list its factory suppliers nor did it disclose any audits which had taken place and the results. There appeared to be no schedule for auditing suppliers and no commitment from the company to audit the whole supply chain. It was unclear how the company dealt with noncompliance and therefore Kao Corporation received a poor rating for auditing and reporting. Difficult issues (poor) A search of the company’s website found no information relating to difficult issues such as illegal freedom of association and the payment of living wages within its supply chain. For this reason the company received a poor rating for difficult issues. Overall Kao Corporation received Ethical Consumer’s worst rating for supply chain management. (ref: 168) Politics Anti-Social Finance Subsidiaries in tax havens (2012) A search of Keo Corporation website in July 2012 by Ethical Consumer found Kao Sustainability Report 2011 which on page 69 listed the companies principle subsidaries and affiliates. Kao had subsidaries in Switzerland, the Philippines and Singapore. All territories were considered by Ethical Consumer to be tax havens. (ref: 168) Kingfisher toothpaste [S,A] Owned by Rainbow Wholefoods Rainbow Wholefoods, Rainbow Wholefoods, 21 White Lodge Estate, Hall Rd, Norwich, NR4 6BG Palm oil policy (June 2012) Kingfisher Wholefoods provided Ethical Consumer with its policy on palm oil sourcing in June 2012. This stated: “Kingfisher Natural Toothpaste confirms that SLS is derived from palm/ coconut oil and the forests where the palm/coconut comes from are totally sustainable and renewable in compliance with Round Table regulation”. Kingfisher Wholefoods had a turnover of below £8 million, the threshold above which Ethical Consumer would expect to see a more robust palm oil policy in place, with details of certification bodies. This reference is for information only. (ref: 170) Supply Chain Management Best ECRA rating for supply chain management (2012) Rainbow Wholefoods returned an Ethical Consumer company questionnaire in June 2012 which had asked for, among other things, the company’s supply chain management information. The company responded that all its suppliers were located within the British Isles and therefore were covered by UK law regarding workers’ rights issues. As a small company demonstrating an effective if not explicit management of its supply chain, it received Ethical Consumer’s best rating in this category. (ref: 170) Politics Company Ethos Company ethos (July 2012) As a company producing only vegan toothpaste without any petrochemicals this was considered enough to warrent a company ethos mark for producing innovative environmental alternatives. (ref: 170) Product sustainability Other Sustainability Features Sustainability features (2012) According to an Ethical Cosumer company questionnaire filled out by a representative of Kingfisher Toothpaste in June 2012, the company did not use any of the following ingredients in its products: petrochemcials, artificial colours and preservatives. Additionally, its toothpastes were marketed as being suitable for vegans. (ref: 170) Animal Welfare Features (See also ‘Sustainability features’ in Other Sustainability Features above.) Environment Environmental Reporting Lavera deodorant Best ECRA rating for environmental report (2012) Rainbow Wholefoods returned an Ethical Consumer company questionnaire in June 2012 which had asked for, among other things, the company’s environmental report. Owned by Laverana GmbH & Co KG The company responded that: “As a matter of principal Rainbow Wholefoods does all it can to care for the environment. This includes buying green electricity, recycling and composting, using recycled materials whenever possible including all printing and stationery and so on.” Environment As a small company providing environmentally alternative products, it received Ethical Consumer’s best rating in this category. (ref: 170) Laverana GmbH & Co KG, Am Weingarten 4, Wennigse, 30974, Germany Environmental Reporting Worst rating for environmental reporting (2012) The Laverana GmbH & Co KG website (www.lavera.de), viewed by Ethical Consumer in July 2012, included the following information on the company’s environmental policy, which was translated using an online translator. “Production at the Laverana is under protection of natural resources.Thus produced sustainably with green green energy, renewable resources, special packaging. It uses no chemical preservatives, fragrances or flavours.” Elsewhere the website stated that the company used renewable energy and green web hosting. There did not appear to be any discussion of the company’s main environmental impacts, nor any targets set to reduce these. As a result the information was not considered to constitute an environmental report. People The company did use organic ingredients, but not all of its products were organic. The website of the UK Lavera distributor said that: Supply Chain Management “All lavera products are free from: - Synthetic preservatives (e.g. parabens) - Synthetic colours Human Rights (See also ‘Worst rating for palm oil policy’ in Climate Change above.) Worst rating for supply chain policy (2012) In July 2012 Ethical Consumer searched the Laverana GmbH and Co KG website (www.lavera.de) for the company’s policy addressing workers rights at supplier companies or any policies regarding sourcing. - Synthetic fragrances - Petroleum ingredients (e.g. mineral oils) - Irritating emulsifiers (e.g. PEG) - Irritating detergents (e.g. Sodium Lauryl Sulfate)” It was apparent from the website that the company sourced a significant proportion of its raw materials from German suppliers. however, a policy stating the company’s minimum standards for workers could not be found, and it received Ethical Consumer’s worst rating in this category. (ref: 171) The company received Ethical Consumer’s worst rating in this category. (ref: 171) Politics Climate Change Company Ethos Worst rating for palm oil policy (July 2012) When viewed by Ethical Consumer in July 2012 the Lavera GmbH website, www.lavera.com, displayed a number of products containing palm oil and/or palm oil derivatives. No information could be found regarding the way the company sourced the ingredient or how it sought to ensure that the way it had been produced did not result in environmental destruction and human rights violations. The company lost half marks in the climate change, habitats and resources and human rights categories due to problems associated with sourcing palm oil. (ref: 172) Product sustainability Pollution & Toxics Use of nanoparticle ingredients (July 2012) When viewed by Ethical Consumer in July 2012 the Lavera GmbH website, www.lavera.com, stated that the company used coated, nano-scale zinc oxide in its sunscreens as well as titanium dioxide which may include nano-scale particles. The website stated: “While our preference is not to use nanoparticles, we believe that the added protection against UVA far outweighs any health risks posed by the coated, nano-scale zinc. We follow the latest research in sun protection to provide you with the safest products possible”. Ethical Consumer noted that this position was in line with the Environmental Working Group, which had found that nano-scale zinc and titanium dioxide were effective in sun screens. However, the EWG also urged that manufacturers of mineral-based powder and spray products not to use nano-scale particles. The website for the UK distributor of Lavera products, www.pravera.co.uk, displayed Lavera sun spray that contained zinc oxide and titanium dioxide. (ref: 172) Habitats & Resources (See also ‘Worst rating for palm oil policy’ in Climate Change above.) Company ethos (August 2012) According to the www.pravera.co.uk website viewed in August 2012, Lavera “use raw plant materials, as much as possible from certified organic agriculture, our products are 100% free from synthetic perfumes, colourants and preservatives.” Many products are certified by the Vegan Society. As such, we judged that they only produced innovative environmental alternative products. (ref: 174) Organic Product Sustainability features (2012) According to the Lavera catalogue found on the website of Lavera UK distributor Pravera www.pravera.co.uk (viewed in July 2012) the company sold deodorant which was marketed as organic and approved by the Vegan Society. All lavera products are free from: - Synthetic preservatives (e.g. parabens, MIT) - Synthetic colours - Synthetic fragrances - Petroleum ingredients (e.g. mineral oils) - Irritating emulsifiers (e.g. PEG) - Irritating detergents (e.g. Sodium Lauryl Sulfate) (ref: 174) Other Sustainability Features (See also ‘Sustainability features’ in Organic Product above.) Animal Welfare Features (See also ‘Sustainability features’ in Organic Product above.) Animals Little Satsuma crystal deodorant Animal Rights Owned by Little Satsuma Animal derived ingredients (February 2010) In February 2010 the Lavera website, www.lavera.co.uk, showed a number of lipsticks that contained carmine, an ingredient derived from crushed insects. (ref: 173) Little Satsuma, Wirral., CH63 9HD Environment Environmental Reporting Best ECRA rating for environmental reporting (2012) The Little Satsuma website (www.littlesatsuma.com), viewed by Ethical Consumer in July 2012, included the following information on the company’s environmental policy. “Our packaging and containers are glass where possible, our bags are paper from sustainable sources and we recycle wherever we can. All our packaging is re-used from our suppliers and from local collections that we make from other shops (boxes, bubble wrap etc). That way your order arrives intact and we re-use existing resources. Please help us to be environmentally friendly and recycle any of the packaging and containers you receive from us. We provide natural products that are animal friendly - in that they are not tested in animals and do not contain animal fat. Our soaps are handmade and contain only natural ingredients; they are soft and kind to your skin; no harsh chemicals, no synthetics or detergents.” As a small company with a turnover of less than £8 million and proividing environmental alternatives, Little Satsuma received Ethical Consumer’s best rating in this category. (ref: 175) People Human Rights Palm oil policy (2012) The Little Satsuma website www.littlesatsuma.com was searched by Ethical Consumer in July 2012, for the company’s policy on the use of palm oil in its products. It stated: “We do not use Palm Oil from Indonesia as it is destroying the rainforest and pushing the Orangutans to extinction. However, we are working on a soap using Palm Oil from Africa to show it can be beneficial and sustainable in another part of the world.” Ethical Consumer considered this to a be a reasonable policy for a small company providing environmental alternatives. This reference is for information only. (ref: 175) Supply Chain Management Best ECRA rating for supply chain management (2012) A search was made of Little Satsuma’s website, www.littlesatsuma. com, by Ethical Consumer in July 2012 for the company’s supply chain policy. No supply chain policy was found however as the company had a turnover of less than £8 million it was exempt from the criteria and received Ethical Consumer’s best rating for supply chain management. (ref: 175) Politics Company Ethos Company Ethos (2012) According to the Little Satsuma website, www.littlesatsuma.com, viewed July 2012, all of the companies products were vegan. In a sector where cosmetics produced with petrochemicals was common practice, Ethical Consumer awarded a company ethos mark for producing products without petrochemicals and for providing an innovative environmental alternative. (ref: 175) Product sustainability Animal Welfare Features Sustainability feature (2012) According to the Little Satsuma website (www.littlesatsuma. com) viewed July 2012 all of the company’s products were vegan. (ref: 175) Living Nature soap & hand wash Owned by Living Nature Natural Products Ltd Living Nature Natural Products Ltd, Living Nature, Box 193, Kerikeri, New Zealand Environment livingnature.com), viewed by Ethical Consumer in July 2012, included the following information on the company’s environmental policy: “Living Nature contains absolutely no synthetic ingredients or endocrine disruptors. Our full range is Certified Natural by BDIH Germany, and many of our products carry the Whole Foods Premium Body Care standard. Our products are independently verified for safety, plus we have one of the best ratings in the Skin Deep Cosmetic Safety Database. Our policy: if there is any doubt about the safety of an ingredient, we don’t use it. Instead, we harness the incredible bioactive power of New Zealand’s native plants with their nourishing, purifying and healing skin benefits. Our highly effective energetic skincare is designed to enhance your skin’s own natural function. This efficacy is reviewed with ongoing independent testing. Our Kerikeri facility uses only carbon-neutral hydro and wind energy and filtered rainwater. Our packaging is fully recyclable, meets the highest EU environmental standards and is 100% free from harmful phthalates and Bisphenol-A (BPA). Paper and cartons are sourced from renewable, managed forests and, like our inks, are free from dioxin and elemental chlorine. We use no animal products, other than humanely-obtained beeswax, honey and lactose. We will never test our products on animals.” While this was positive, Ethical Consumer could not find evidence that the company was an SME (and it had not responded to a written request for this information). Under Ethical Consumer’s rating system, larger companies are expected to have an environmental policy in place which identifies the company’s main environmental impacts and sets dated, quantified targets for reducing them over time. In the absence of such a policy, Living Nature received Ethical Consumer’s worst rating in this category. (ref: 176) Climate Change No palm oil policy found (July 2012) Living Nature did not respond to a written request from Ethical Consumer for information regarding its palm oil sourcing policy in June 2012. No related information could be found on its website, www.livingnature.com, although palm oil and derivatives were listed on a page entitled ‘Ingredients glossary’. Due to the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 176) Habitats & Resources (See also ‘No palm oil policy found’ in Climate Change above.) Animals Animal Testing Middle ECRA rating for animal testing (2012) In July 2012 Ethical Consumer viewed the Living Nature company website, www.livingnature.com, to obtain information on the company’s animal testing policy. It stated that “Living Nature, like many of our customers, do NOT support animal testing. You will notice on our packaging that we carry the ‘Cruelty Free’ certification, which certifies that none of our products or ingredients are animal tested.” A fixed cut off date was not mentioned. The company therefore received Ethical Consumer’s middle rating for animal testing. (ref: 176) People Human Rights Environmental Reporting (See also ‘No palm oil policy found’ in Climate Change above.) Worst ECRA rating for environmental policy (2012) The Living Nature Natural Products Ltd website (www. Supply Chain Management Worst ECRA rating for supply chain management (2012) The Living Nature website (www.livingnature.com), viewed by Ethical Consumer in July 2012, included the following information on the company’s supply chain management policy: “All our 100% natural skincare and most of our cosmetics are made at our purpose-built Kerikeri facility in the pristine Bay of Islands, where we control every step of product development, formulation, testing and filling. Living Nature employs over 60 people worldwide. We export to 14 countries, with staff in Australia and the United Kingdom, and committed distributors servicing other export markets including Singapore, Malaysia, Germany, USA, Canada, Korea and Russia.” The company did not have any policy which guarenteed workers right within its supply chain and as a result the company received Ethical Consumer’s worst rating in this category. (ref: 176) Product sustainability Other Sustainability Features Sustainability feature (2012) The company website www.livingnature.co.uk, when viewed in July 2012, stated that: “In Living Nature products you’ll find no: * Endocrine disrupting synthetic preservatives such as: o Parabens o Ethelhexyglycerin o Hydroxymethylglycinate o Iodopropynyl butylcarbamate o Methylchloroisothiazolinone o Methylisothiazolinone o Unigerm o Suttocide * Neurotoxic preservatives like phenoxyethanol * Harsh surfactants like sodium, ammonium and lauryl/laureth sulphates * Petrochemicals, including PEGs, paraffin and other glycols * Silicones, Mineral oils, artificial fragrances, grain alcohols * Phthalates * Bisphenol-A (BPA) * Genetically modified or irradiated ingredients” Due to the company’s policy not to include the ingredient above, it was awarded a positive product sustainability mark. (ref: 176) L’Oreal make-up Owned by L’Oréal L’Oréal, 41 Rue Martre, Clichy, 92117, France L’Oréal is owned by Liliane Bettencourt (31%) L’Oréal is also owned by Nestlé SA (30%) Nestlé SA, Avenue Nestlé 55, Vevey, Vaud 1800, Switzerland Figures were published on the progress towards this target from 2011. The report also showed a good understanding of the companies main impacts. For instance the report contained information on the increased us of natural products, reduced waste including during research, an acknowledgement of high water consumption and water pollution, and the development of life cycle analysis for all its products. The report was verified by Deloitte & Associés and PricewaterhouseCoopers Audit. (ref: 37) Pollution & Toxics Top nanotechnology patent-holder in the USA (July 2012) According to a post on Bloomberg Businessweek, bx.businessweek. com, viewed by Ethical Consumer in July 2012, the L’Oréal Group was the top nanotechnology patent-holder in the United States. The 2007 Corporate Watch report ‘Nanotechnology: undersized, unregulated and already here’, documented the growing evidence that nanomaterials pose a unique but so far poorly understood range of toxicity problems, along with concerns about the wider social and economic impacts of nanotechnology. (ref: 38) Red lipstick found to contain measurable levels of lead (2008) According to The Ecologist December/January 2008 a significant quantity of US-manufactured red lipsticks, including those made by L’Oréal, had been found to contain measurable levels of lead in independent tests. The research carried out by the Campaign for Safe Cosmetics found between 0.03 and 0.65 parts per million, despite there being no mention of metal on the ingredients list. Mark Mitchell, president of the Connecticut Coalition for Environmental Justice, said: “Lead builds up over time and lead-containing lipstick applied several times a day, every day, can add up to significant exposure levels. The latest studies show there is no safe level of exposure.” (ref: 39) Lipstick contains unsafe levels of lead (October 2007) The Campaign for Safe Cosmetics (www.safecosmetics.org) published a report, “A Poison Kiss: the Problem of Lead in Lipstick,” in October 2007. According to the report one third of the lipsticks tested exceeded Food and Drug Administration’s (FDA) 0.1 ppm limit of set for lead in children’s confectionery - a standard established to protect children from directly ingesting lead. The report noted that lipstick is also ingested directly but that the FDA did not set limits for lead in cosmetics. Those listed included L’Oreal and the company’s Maybelline brand. Lead was not listed as an ingredient on the product. The report noted that “Lead is a proven neurotoxin that can cause learning, language and behavioural problems... Pregnant women and young children are particularly vulnerable to lead exposure.... Lead has also been linked to miscarriage, reduced fertility in both men and women, hormonal changes, menstrual irregularities and delays in the onset of puberty.” Furthermore lead is bio-accumulative, building up in the body with repeated exposure. (ref: 40) Animals Environment Animal Testing Environmental Reporting Animal testing of non medical products (July 2011) According to the PETA website viewed in July 2011, L’Oreal was listed in a document called ‘Companies that test on animals’ produced by People for the Ethical Treatment of Animals. The companies were on the list because they manufactured cosmetic and household products that were tested on animals even though it was not required by law. (ref: 8) Best ECRA rating for environment report (July 2012) In July 2012 Ethical Consumer rated the L’Oreal 2011 Sustainability report. This contained three future quantified targets and stated that: “As part of its 10-year environmental strategy (2005-2015), L’Oréal has set three clear targets for its plants and distribution centres: to reduce by 50% greenhouse gas emissions (in absolute value), water consumption per finished product unit and waste production per finished product unit.” Use of animal test condemned as brutal (2009) The Spring 2009 issue of the Uncaged Campaigns Bulletin stated that vivisectors from L’Oréal were involved in the ‘sacrifice’ of 128 rats in a repeat poisoning test for the commonly-used chemical ingredients butylparaben and methylparaben. The test, which took place at a lab in Pennsylvania, USA, was published in 2008 in the Journal Birth Defects Research (Part B). The test involved chemicals being administered in the animals’ food everyday, plus the taking of blood samples by a method called ‘retro-orbital bleeding’. This is an extreme procedure involving the puncturing of the eye socket. According to the article, there was widespread condemnation of this method, even among some animal researchers, indicating the extreme brutality of this test. The UK National Centre for the 3Rs stated that it was a technique that can have strong consequences for the animal and, therefore, it is not recommended for use with recovery.” In other words, because of the devastating injuries caused by retro-orbital bleeding, animals should be put down before they can regain consciousness”. (ref: 41) Worst ECRA rating for animal testing (July 2012) Ethical Consumer visited the L’Oréal website, www.loreal.com, in July 2012 and searched for the company’s animal testing policy. No explicit policy could be found, although some information on research the company had done into alternatives was available. L’Oréal was however on Uncaged’s list of companies to boycott at the time, which it said included companies which either openly use animal-tested chemicals, or fail to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date. The company did state that, “We want an end to animal testing in our industry, and we contribute to the development and acceptance of alternative methods. We actively seek out and favour business partners who share our values and our ethical commitments.” but this was not considered a policy. L’Oréal was therefore awarded Ethical Consumer’s worst rating for animal testing. (ref: 42) Animal Rights 2009, strangers arrived at the home of Gustavo Gomez, knocked on the door and when he answered shot him 10 times. Gustavo was a worker at La Rosa SA Nestlé and a member of the trade union Sinaltrainal. He was immediately taken to a local clinic where he died hours later. Gustavo Gómez was a member of the Board of Sinaltrainal Sectional Dosquebradas from 1997 until 2000, was a cousin of Jose De Jesus Marin-Vargas, a worker at Nestlé SA Comestibles La Rosa and member of Sinaltrainal, also murdered on November 22, 2007. According to the article, unfortunately, this crime occurred at a time when Sinaltrainal had submitted a petition to Nestle Purina PetCare Company de Colombia SA. It stated that this brought the number of Nestlé Sinaltrainal members murdered in Colombia to 12 employees. Luis went on to say the union had previously reported to the authorities the constant threats of death, which Sinaltrainal members in Colombia had received, and had asked the authorities to investigate and punish those responsible. However, the murders continued while the international community was prepared to accept that unionists are offered state protection and therefore continued to accept the current regime. He went on to state: “We demand that the Colombian State, investigate and punish the perpetrators and instigators of this crime, protect the lives of members of Sinaltrainal and their families and ensure the right of union activity.” (ref: 46) Consolidation of water causing shortage for local peoples (2007) According to the Ecologist (September 2007 issue) “the bottled water culture creates its own insatiable marketplace.” Large multinational corporations such as Nestle and another major multinationals had “identified water as the new oil and are busy buying up water supplies throughout the world.” The result of this is that local people – often living in very poor parts of the world - can lose access to vital water supplies. (ref: 47) Operations in 8 oppressive regimes (July 2012) ECRA searched the L’oreal company website in July 2012 and found that the company had operations in the following regimes: Use of factory farmed meat (September 2011) According to the Nestlé website viewed in September 2011, the company produced the following products containing meat which was not free range or organic: Herta frankfurters and pet food. Pet food accounted for nearly 12% of the company’s sales in 2010, according to its Financial Statements 2010. (ref: 43) China, Philippines, Venezuela, Thailand, Colombia, India, Vietnam and Russia. Dairy is core part of its business (September 2011) According to its 2009 Creating Shared Value report, “nearly 40% of our raw materials expenditure goes towards the procurement of three key commodities – milk, coffee and cocoa”. Of that nearly 90% went on milk. “In terms of sales value, Nestlé is the world’s largest milk company, and sources over 12 million tonnes of fresh milk equivalent from more than 30 countries including Kenya, Uganda, Mexico and China. (ref: 44) Fined for death at Halifax factory (March 2012) On 9 March 2012 it was reported on the website for the Health and Safety Executive, www.hse.gov.uk, that Nestlé had been fined £180,000 for safety failures which resulted in the death of a worker at its Halifax factory in December 2008. According to the article, the company had received written advice about improving the guarding on the type of machine being used by the employee in 2002. It had not applied that advice to the machine being operated. (ref: 48) Product contained unexpected animal derived ingredients (March 2009) In March 2009 The Food Magazine reported that strawberry flavour Nestle’s Nesquik Magic Straws were coloured with cochineal, which was derived from crushed insects, but that the product was not labelled as being ‘unsuitable for vegetarians’. (ref: 45) People Human Rights Nestlé worker and union leader killed in Colombia (21 August 2009) According to a statement posted on the website of the Colombia Solidarity Campaign, www.colombiasolidarity.org.uk, dated August 24th 2009 and signed by Colombian trade union Sinaltrainal’s president, Luis Javier Correa Suarez, on 21 August At the time of writing ECRA considered these to be governed by oppressive regimes. (ref: 37) Workers’ Rights Guilty of racial discrimination (June 2009) According to an article published on the Times online website on the 25th of June 2009, L’Oréal had been found guilty, in France’s highest court, of racial discrimination for considering black, Arab and Asian women unworthy of selling its shampoo. The company had sought an all-white team of sales staff to promote one of its hair care products the court heard, with the word going out that the hostesses (shampoo saleswomen) should be ‘BBR’ - ‘bleu, blanc, rouge’ the colours of the French flag - a term widely known in the world of French recruitment as meaning white French people born to white French parents. The court said such a policy was illegal under French employment law. (ref: 49) Marketing cosmetics containing banned ingredients (2007) According to the November/December 2008 issue of Multinational Monitor, L’Oreal had been sued in 2007 by a former Director of Regulatory Affairs, Jerome Chevallier. In the lawsuit he claimed he was fired because he “voiced strong objections and complained about unlawful activities”. Chevallier said that L’Oreal marketed its Maybelline-brand lip gloss containing Debutyl phthalate (DBP) to South America, despite the fact that DBP was banned there due to its carcinogenity and risks to reproductive health. He said the company untruthfully marketed a product called Pureology as formulated with vegan inputs, and that it used a banned substance called Triclosan despite saying it wouldn’t. Chevallier said that in July 2007 he discovered that L’Oreal products in Europe contained a preservative, Kathon CG, above lawful levels, and that this information had been omitted from the company’s computer system “so as to avoid regulatory department scrutiny”. After requesting the recall of the products, Chevallier says he was prohibited from having any further communications with his counterparts in Europe. And after a dust-up with superiors over this issue, he was fired. L’Oreal however, said that he was fired for selling free L’Oreal products on eBay. It denied all Chevallier’s allegations. Chevallier admitted that he did sell free L’Oreal products on eBay, but that that was not why he was fired. (ref: 50) Irresponsible Marketing Supply Chain Management The Cochrane Library had reviewed research on ingredients that Nestle and other companies highlight such as DHA and ARA Long Chain Polyunsaturated Fatty Acids (LCPUFAs) and concluded ‘It has been suggested that low levels of long chain polyunsaturated fatty acids (LCPUFA) found in formula milk may contribute to [higher] IQ levels and vision skills in term infants. Some milk formulas with added LCPUFA are commercially available. This review found that feeding term infants with milk formula enriched with LCPUFA had no proven benefit regarding vision cognition or physical growth.’ Similarly Cochrane Library reviews have found no benefit from adding prebiotics and probiotic. After receiving thousands of emails and letters from members of the public, Nestle has finally acknowledged the Cochrane Library findings but still refused to remove the logos and stop the aggressive marketing saying ‘we do not make any claim on product labels that contradicts the Cochrane Library’s reviews’ this was despite the company’s global marketing campaign being based around the added ingredients. Baby Milk Action said that more pressure was clearly needed. (ref: 52) Worst ECRA rating for supply chain management (July 2012) In a statement on the L’Oreal website found by Ethical Consumer in July 2012 it stated that, “L’ORÉAL seeks to ensure that human rights are respected throughout its supply chain. Through L’ORÉAL’s Buy & Care programme, all our suppliers and subcontractors are asked to comply with the Group’s General Terms of Purchase and Payment, which include an undertaking to comply with the Fundamental Conventions of the ILO” These were: Freedom of Association and Protection of the Right to Organise Convention Right to Organise and Collective Bargaining Convention Forced Labour Convention Abolition of Forced Labour Convention Minimum Age Convention Worst Forms of Child Labour Convention Discrimination (Employment and Occupation) Convention There was no mention of a payment of a living wage or limiting working hours. The statement also gave the company Group Purchasing Director the right to waive the minimum working age convention. Stakeholder engagement No mention Auditing There was a mention of audits but the results were not published. In 2010 for example the company was said to have audited 2148 suppliers. Difficult issues No mention The company therefore received Ethical Consumer’s worst rating for its supply chain management. (ref: 37) Claims that infant formula ‘protects’ babies (December 2010) According to the Baby Milk Action Update, Issue 43, December 2010, Nestle had come under fire for making claims that its formula ‘protects’ babies and has ‘new active immunity’ and using a ‘protect’ logo to do so. The company had attempted to justify its claims saying that ‘The ‘Protect’ logo is used on a new generation of sophisticated infant formula with a unique combination of specific strains of probiotics, long-chain polyunsaturated fatty acids, immune-nutrients and selected proteins. This unique combination has positive effects on the infant’s physiology and metabolism with other formula without these ingredients. However, we in no way suggest that the formula is equal or superior to breastmilk.’ Article 9.2 of the International Code of Marketing of Breastmilk substitutes states ‘Neither the container nor the label should have pictures of infants, nor should they have other pictures or text which may idealise the use of infant formula’ Abuses of Global Compact principles (December 2010) According to the Baby Milk Action Update, Issue 43, December 2010,Baby Milk Action and other campaign groups concerned about ‘egregious’ violations of the Global Compact Principles by Nestle registered a complaint with the UN Global Compact Office in 2009 under its ‘Integrity Measures’. Concerns raised in the joint report included aggressive marketing of baby milks and foods and undermining of breastfeeding, in breach of international standards, trade union busting and failing to act on related court decisions, failure to act on child labour and slavery in its cocoa supply chain, exploitation of farmers, particularly in the dairy and coffee sectors, and environmental degradation, particularly of water sources. In its responses the Global Compact Office stressed that the Global Compact was a voluntary initiative and the Office had no mandate or resources to conduct investigations, but would promote ‘dialogue’. As the campaign groups were already in ‘dialogue’ with Nestle – and finding it unwilling to stop its violations of the principles – Baby Milk Action asked the Global Compact Office to conduct a review of the communications cited in the provisions of the ‘Integrity Measures’. These give the Office the power to exclude companies and de-list them from its website. The UN Global Compact Office refused to conduct the review and continued to post Nestle’s ‘Creating Shared Value’ and other reports on its website and accepted Nestle as a Patron Sponsor for its 10th anniversary summit in New York in 2010. The UN Global Compact Office stated in a telling phrase about the initiative ‘Of course, abuses of the 10 principles do occur; however we believe that such abuses only indicate that it is important for the company to remain in the Compact and learn from its mistakes’. Baby Milk Action said that the Office had been asked for information on how Nestle had ‘learned from its mistakes’ and had provided no further information, though a briefing paper had been promised. It admitted that not a single company had been excluded from the initiative as a result of complaints being registered. Companies were only excluded if they failed to provide reports, whether misleading or not. A leading Global Officer had recently been appointed a Nestle Vice President, replacing the head of the company’s anti-boycott team. (ref: 52) United Reform Church backs boycott despite Nestlé misinformation (December 2010) According to the Baby Milk Action Update, Issue 43, December 2010 the United Reformed Church Assembly had agreed to continue supporting the Nestle boycott until the company made the required changes to its baby food marketing. The Assembly referenced the FTSE4Good criteria which are similar to the fourpoint plan which Baby Milk Action has put to Nestle, calling on it to bring its policies and practices into line with World Health Assembly standards. The Assembly rejected a proposal to end the church’s long-running support for the boycott. Nestle’s vice president had met with representatives of the URC and other churches at the Churches Investment Group and insisted that Nestle had changed its ways and accused the International Baby Food Action Network (IBFAN) of continuing to level criticisms at Nestle for publicity purposes and said that the organisation’s latest report contained only two genuine violations, which Baby Milk Action said spoke volumes about how dismissive Nestle is of complaints. (ref: 52) Politics Boycott Call Boycott call for animal testing due to L’Oreal ownership (September 2011) The Uncaged campaign website, www.uncaged.co.uk, listed Body Shop as a company to boycott when viewed by Ethical Consumer in September 2011. It was listed as either openly using animal-tested chemicals, or failing to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date. (ref: 53) Boycott call by Uncaged (September 2011) The Uncaged campaign website, www.uncaged.co.uk, listed L’Oreal as a company to boycott when viewed by Ethical Consumer in September 2011. It was listed as either openly using animal-tested chemicals, or failing to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date. (ref: 54) Boycott call by Baby Milk Action (September 2011) The Body Shop was on Baby Milk Actions boycott list when viewed on the organisation’s website, www.babymilkaction.org, by Ethical Consumer in September 2011 due to its ownership links with Nestlé. Nestlé is boycotted by the group because independent monitoring has found it has violated the International Code of Marketing for Breastmilk Substitutes more than any other company. Nestlé owned approximately 30% of L’Oreal, the Body Shop’s parent company, at the time of writing. (ref: 55) Political Activities Member of one international lobby group (February 2012) According to the organisation’s website www.wbcsd.org, viewed by Ethical Consumer on 13/02/2012, L’Oreal was a member of the World Business Council for Sustainable Development. This was regarded by Ethical Consumer as an international corporate lobby group which exerted undue corporate influence on policy-makers in favour of market solutions that were potentially detrimental to the environment and human rights. (ref: 56) ‘Buying’ MP with free trips and tickets (December 2010) According to the Baby Milk Action Update, Issue 43, December 2010, the former MP covering Buxton, where Nestle bottles water, stood down at the May General Election. Mr Tom Levitt became notorious for defending Nestle after receiving free tickets to the Wimbledon tennis tournament and Lords cricket matches, and an all-expenses-paid trip to South Africa – where he failed to notice Nestle advertising formula in supermarkets, something that even its competitors labelled as a breach of the marketing requirements. Mr Levitt refused to meet with Baby Milk Action. (ref: 52) Illegal political donations (July 2010) On 9th July 2010 it was reported on the Guardian website, www. guardian.co.uk, that Liliane Bettencourt was being investigated for claims that she had made an illegal donation to French President Nicolas Sarkozy’s 2007 campaign for the presidency, via employment minister Eric Woerth. (ref: 57) Anti-Social Finance Subsidiaries in 6 tax havens (July 2012) Accoring to the L’oreal fact sheet on www.hoovers.com, viewed by ECRA in July 2012, the company had subsidiaries in the following tax havens: Monaco, Uruguay, Ireland, Hong Kong, Singapore, Switzerland. (ref: 37) Excessive director’s remuneration (July 2012) According to a document entitled “Publication of the remuneration components of L’Oréal’s Chairman & CEO made pursuant to the AFEP MEDEF code of corporate governance for listed companies of April 2010” located on the L’oreal website, the remuneration of CEO “Jean-Paul Agon had previously been set by the Board of Directors at 2,100,000 euros in respect of 2011.” (ref: 37) Fined for price fixing (January 2012) According to an article on the Edmonton Journal website, www. edmontonjournal.com, viewed by Ethical Consumer in January 2012, L’Oreal along with twelve other French perfume giants had been fined 40 million Euros for colluding to keep prices high between 1997 and 2000. In January 2012 a Parisian court of appeal upheld the fine imposed on the companies in 2006 by the French competition watchdog. The Watchdog had said that the companies involved had reached illicit agreements on price fixing; enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance. In the original ruling the price watchdog had said that the companies had arrangements with the distributors and that the agreements saw ‘price police’ ensuring distributors were sticking by the deal. The watchdog stated that the companies had applied pressure and threats of commercial reprisals for those distributors that refused to apply the prices imposed by the brands. (ref: 58) Lush deodorant Owned by Lush Ltd Lush Ltd, 29 High Street, Poole, Dorset, BH15 1AB Lush Ltd is owned by Lush Cosmetics Ltd Lush Cosmetics Ltd, Ethics Dept, 29 High Street, Poole, Dorset, BH15 1AB, UK Environment Environmental Reporting Worst ECRA rating for environmental reporting (March 2010) In July 2012 Ethical Consumer emailed Lush Ltd and attached a questionnaire that included a request for the company’s environmental policies and reports. Although Lush responded by pointing to a number of important initiatives, for example regarding packaging, sourcing and palm oil, the company did not issue a formal envrionmental policy statement or report, or publish any future targets for improvement. It therefore received ECRA’s worst rating for environmental reporting. (ref: 177) Product sustainability Animal Welfare Features Vegan Society approved (July 2012) According to the Lush website viewed in July 2012, the company made liquid, solid and powder deodorants that were certified by the Vegan Society. (ref: 180) People Human Rights Operations in five oppressive regimes (February 2010) In July 2012 the global website for Lush Cosmetics Ltd, www. lush.com, stated that the company was trading in 43 countries around the world. These were said to include India, Kazakhstan, Philippines, Russia and Saudi Arabia, all of which were considered by Ethical Consumer to be governed by oppressive regimes at the time of writing. (ref: 178) Positive palm oil policy (March 2010) In February 2010 Ethical Consumer emailed Lush Ltd and attached a questionnaire that included a question regarding whether or not the company had a policy about using palm oil in its products and how this was sourced. The company replied as follows: “We are currently attempting to eliminate all palm from our products. We have found it difficult at times to get information regarding tracability from some of our suppliers, due to the practice of trading ‘mixed vegetable oils’ and fats on the world market. “However we have done much work on eliminating it where we have been able to identify it. This has meant that we have been able to eliminate it from our soapbase – which we suspect is our biggest use of palm. We have also run window and in store campaigns regarding palm. Our buyers and campaigns teams have made several visits to the palm affected regions, looking at the effects on wildlife and local people. We believe that there is no such thing as sustainable palm and that the only solution is to reduce the developed worlds consumption of palm.” This was considered by Ethical Consumer to be a positive palm oil policy. (ref: 179) Supply Chain Management Middle ECRA rating for supply chain policy (2012) In July 2012 Ethical Consumer emailed Lush Ltd and attached a questionnaire that included a request for the company’s policy addressing workers rights at supplier companies or any policies regarding sourcing. Lush replied by sending a copy of their Buying Policy/Supplier Questionnaire which contained a list of requirements for workers rights at supplier companies which included adequate clauses for: Children, Forced labour, Discrimination, Freedom of association, Living Wage, Max 48hrs week. Without an unequvivocal ‘whole Supply Chain statement’ this was rated a ‘reasonable’ policy. A separate document entitled ‘Lush Buying’ explained how the broader audit document was being rolled out across the whole supply chain and how they had remediation strategy of working and support for suppliers where issues are identified. This document also explained how special funding line (slush fund) existed to work in partnership with suppliers to improve their compliance. Overall the company received a middle ECRA rating for supply chain management. (ref: 177) Politics Company Ethos Company ethos (February 2010) In a questionnaire from Lush Ltd, received by Ethical Consumer in February 2010, it was stated that all of the company’s products were approved by the Vegetarian Society. (ref: 179) Mitchum deodorant Owned by Revlon Inc Revlon Inc, 237 Park Avenue, New York, NY 10017, USA Revlon Inc is owned by MacAndrews & Forbes Holdings Inc (66%) MacAndrews & Forbes Holdings Inc, 35 E 62nd Street, New York, NY 10021, USA Environment Environmental Reporting Worst ECRA rating for environmental reporting (2012) Revlon Inc did not respond to Ethical Consumer’s written request in June 2012 for the company’s environmental policy. The company’s website (www.revlon.com) was searched for this information. It included a vague statement about respecting local laws and regulations regarding the environment, but no environmental policy could be found. The company’s Corporate Social Responsibility Framework (which was undated) included environmental ‘Standards’ such as using sustainable ingredients and packaging where possible, and employing energy conservation initiatives. However, this document contained no dated, quantified future targets and did not appear to include independently verified data. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 181) Climate Change Manufacture of ‘gas guzzling’ 4x4 (2007) According to the AM General - a subsidiary of MacAndrews and Forbes - website (www.amgeneral.com) viewed on 1st June 2007, it had introduced its ‘Hummer’ military vehicle to civilian use in the early 1990s. It had then developed a new models, including the Hummer H1, the Hummer H2 and the Humvee, some in conjunction with a major US car manufacturer, which owned the Hummer brand name. The fuel efficiency of Hummers was around 10mpg, compared with other cars which ran at about 90mpg. They therefore used significantly more fuel and thus contributed significantly more to climate-changing CO2 emissions and other potentially damaging atmospheric pollution than most other vehicles. It stated that its main business was the supply of military vehicles and that the US Military was its largest customer. (ref: 182) Worst rating for palm oil policy (July 2012) In June 2012 Ethical Consumer emailed MacAndrews & Forbes and attached a questionnaire that included a request for the company’s policy in relation to palm oil sourcing. The company did not respond, no related information could be found on its website or those of its main cosmetics brands such as Almay and it was not listed as a member of the Roundtable on Sustainable Palm Oil on that organisation’s website. The company was a manufacturer of consumer products that typically contain palm oil or its derivatives and evidence of this was found in a Product Formulary and Cosmetic Guide, downloaded from the Almay website, www. almay.com. Ethical Consumer expected a company of its size to have a policy specifically addressing palm oil sourcing. In the absence of this and as a result of the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 183) The company received Ethical Consumer’s worst rating in this category. (ref: 181) Pollution & Toxics Potential supply of arms to oppressive regime (October 2011) According to the article ‘US politicians seek to halt Bahrain arms deal’, dated October 8th 2011 and published on the English Aljazeera website http://english.aljazeera.net, members of Congress concerned about the Bahrain kingdom’s response to a popular uprising, aimed to block a $53m arms sale by introducing a rare measure that would halt the sale, including more than 44 armoured vehicles and 300 missiles, 50 of which had bunker busting capability to the Gulf Arab state. Concerns over nanotechnology in skin products (2007) According to the 2007 Corporate Watch report ‘Nanotechnology: undersized, unregulated and already here’, Revlon’s ColourStay and New Complexion ranges of cosmetics contained Aluminium Oxide ‘Alusion’ nanoparticles, as did Almay’s Clear Complexion concealer. The report documented the growing evidence that nanomaterials pose a unique but so far poorly understood range of toxicity problems, along with concerns about the wider social and economic impacts of nanotechnology. (ref: 184) Animals Animal Testing Worst ECRA rating for animal testing (2012) Revlon was listed in the Compassionate Shopping Guide 12th edition (2010) as not being an endorsed company. This was because it had no Fixed Cut off Date for animal testing. (ref: 116) People Human Rights (See also ‘Worst rating for palm oil policy’ in Climate Change above.) Operations in two oppressive regimes (2012) According to the Hoovers.com website and the website of whollyowned MacAndrews & Forbes subsidiary (at the time of writing) Deluxe Entertainment Services Group Inc. www.bydeluxe.com, the company had operations in India and Venezuela. Both were on Ethical Consumer’s list of oppressive regimes at the time of writing. (ref: 77) Supply Chain Management Worst ECRA rating for supply chain management (2012) Revlon Inc did not respond to Ethical Consumer’s written request in June 2012 for the company’s supply chain management policy. The company’s website (www.revlon.com), was searched in July 2012 for this information. SUPPLY CHAIN POLICY (poor) Arms & Military Supply US Senator Ron Wyden of Oregon and US Representative James McGovern of Massachusetts, both Democrats, said they introduced resolutions in both houses of Congress on Friday to prevent the sale of US weapons to Bahrain “until meaningful steps are taken to improve human rights” there. “Selling weapons to a regime that is violently suppressing peaceful civil dissent and violating human rights is antithetical to our foreign policy goals and the principle of basic rights for all that the US has worked hard to promote,” Wyden said in a statement posted on his website. “The US should not reward a regime that actively suppresses its people. This resolution will withhold the sale of arms to Bahrain until the ruling family shows a real commitment to human rights,” Wyden said. Prime contractors for the arms sale would be AM General according to the Defence Security Co-operation Agency, the part of the Pentagon that oversees foreign arms sales. The company specifically designs vehicles for the military. About 30 people, mainly Shia, died when the protest movement erupted in February, but ongoing clashes and deaths in police custody have taken the total past 40, according to the Bahrain Center for Human Rights (BCHR). McGovern said it was not in the United States’ national security interest to sell weapons to Bahrain “Human rights ought to matter in our foreign and military policy,” he said. “Now is not the time to sell weapons to Bahrain.” (ref: 185) (See also ‘Manufacture of ‘gas guzzling’ 4x4’ in Climate Change above.) Under the heading ‘Transparency in the Supply Chain’ some commitments were made. Politics There were: Prohibition of slave labour, of child labour, physical disciplinary actions and sexual harassment. Excessive director’s pay (2012) According toThe Executive Pay Watch Database www.aflcio.org, viewed by Ethical Consumer in July 2012, the Revlon Inc CEO was paid $3,077,955 in 2011, which equalled roughly £1,984,671. Ethical Consumer deems any amount over £1 million annually to be excessive. (ref: 26) STAKEHOLDER ENGAGEMENT (poor) No mention found. AUDITING AND REPORTING (poor) The ‘Transparency in the Supply Chain’ page on the company’s website stated that “Failure to comply fully with Revlon’s vendor/ supplier standards including, without limitation, laws regarding slavery and trafficking, can result in cancellation of the affected order(s), termination of Revlon’s relationship with the supplier, and/or legal action to pursue other equitable remedies to recoup any financial losses incurred by Revlon.” There was no further information on how the company audited it supply chain. DIFFICULT ISSUES (poor) No mention found. Anti-Social Finance Neal’s Yard Fairtrade skincare [F,S,O,A] Owned by Neal’s Yard Remedies Neal’s Yard Remedies, NYR Direct, Peacemarsh, Gillingham, Dorset, SP8 4EU Environment Environmental Reporting Worst ECRA Rating for environment policy (2012) Neals Yard Remedies did not respond to Ethical Consumer’s written request in June 2012 for the company’s environmental policy. Nor could this information be found on its website (www. nealsyardremedies.com), when viewed by Ethical Consumer in July 2012. The website stated that the company actively supported and promoted organic farming and the use of certified organic ingredients in its products, and that it offered the UK’s largest range of organic health and beauty care. The website also stated that the company was carbon neutral and accredited as such by the CarbonNeutral Company. Whilst Ethical Consumer considered this to be a positive step, it also considered there to be problems with carbon offsetting scheme. The environmental information available on the company’s website was not considered by Ethical Consumer to constitute an environmental report, as it did not discuss the company’s main environmental impacts or how it was attempting to mitigate them. As the company was not an SME it consequently received Ethical Consumer’s worst rating in this category. (ref: 186) Climate Change No clear palm oil policy (July 2012) Neal’s Yard Remedies did not respond to a written request from Ethical Consumer for information regarding its palm oil sourcing policy in June 2012. Ethical Consumer viewed the Neal’s Yard website, www.nealsyardremedies.com, in July 2012. A page entitled ‘Base Oils in products’ stated that the palm oil in one of the company’s soap was certified organic and in another it was sustainably harvested from wild trees. Ethical Consumer noted that a large proportion of the companies products were certified organic. However, the company did not appear to have a clear policy on palm oil sourcing which covered all ingredients, including palm oil derivatives. A page entitled ‘Technical Ingredients in products’ indicated that the company used palm oil derivatives. Due to the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 186) Habitats & Resources (See also ‘No clear palm oil policy’ in Climate Change above.) People criteria (May 2012) The BUAV website www.buav.org viewed by ECRA in May 2012 listed Neal’s Yard Remedies as a Humane Cosmetics Standard approved company selling non-animal tested cosmetics. To be approved for the Humane Cosmetics Standard, a company must no longer conduct or commission animal testing and must apply a verifiable fixed cut-off date - an unmoveable date after which none of the products or ingredients have been animal tested. The scheme requires each company to be open to an independent audit throughout the supply chain to ensure that they adhere to the animal testing policy criteria. (ref: 187) Product sustainability Organic Product Product sustainability (July 2012) According to the Neal’s Yard website in July 2012 the company did not use the following chemicals which potentially pose a risk to the environment and human health: * Synthetic Colors and Fragrances * Petrochemicals * Parabens Additonally, some of the company’s skincare products were certified organic and marketed as suitable for vegans and some were Fairtrade certified. These products therefore received positive marks under Ethical Consumer’s product sustainability category. (ref: 186) Fairtrade Product (See also ‘Product sustainability’ in Organic Product above.) Other Sustainability Features (See also ‘Product sustainability’ in Organic Product above.) Animal Welfare Features (See also ‘Product sustainability’ in Organic Product above.) Nivea deodorant Owned by Beiersdorf AG Beiersdorf AG, Unnastrasse 48, D-20245 Hamburg, Germany Human Rights Beiersdorf AG is owned by maxingvest ag (50%) (See also ‘No clear palm oil policy’ in Climate Change above.) maxingvest ag, Überseering 18, 22297 Hamburg Supply Chain Management Environment Worst rating for supply chain policy (2012) Neal’s Yard Remedies did not respond to Ethical Consumer’s written request in June 2012 for the company’s supply chain management policy. Environmental Reporting Nor could this information be found on its website (www. nealsyardremedies.com), when viewed by Ethical Consumer in July 2012. The website did state that “We design, test and make our own products at our eco-headquarters and physic garden in Gillingham, Dorset.” While this might suggest a tighter control of the supply chain, as a larger company which could not be considered to be an SME, Neal’s Yard Remedies was expected to have a more formal policy in place protecting workers’ rights throughout the supply chain. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 186) Politics Company Ethos All products comply with BUAV not tested on animals Worst ECRA rating for environmental reporting (June 2012) In June 2012 Ethical Consumer emailed Beiersdorf AG and attached a questionnaire that included a request for a copy of the company’s environmental policy, statement or report. No response was received. Ethical Consumer searched Beiersdorf’s website for the information and found a section on its website about sustainable development. According to its website, the company in 2011 set 3 goals, relating to people, planet, and products. The planet goal was to reduce the company’s carbon emissions by 30% per product sold by 2020 (based on 2005 figures). Its product goal related to generating 50% of its sales from products with a significantly reduced environmental footprint. In order to achieve this the company had developed a sustainability product scorecard that allowed it to steer product development and help to minimise packaging waste. In its annual report from 2011, Beiersdorf stated that it had made progress in reducing its energy use, water consumption and CO2 emissions. The company had installed an Environmental Protection and Safety Audit Scheme which was a tool the company used to monitor its standards over the world. While the company showed it had made progress in improving the environmental impacts of its production facilities and offices, the company did not have two quantified dated environmental targets, it did not show any meaningful carbon disclosure and its report was not independently verified. The company also failed to mention toxics, which as a cosmetics manufacturer was a major aspect of its business. For these reasons Beiersdorf received Ethical Consumers’ worst rating for environmental reporting. (ref: 188) Climate Change Worst ECRA rating on palm oil policy (July 2012) A search of Beiersdorf website, www.beiersdorf.com, by Ethical Consumer in July 2012 found that the company did not use palm oil in the manufacture of its cosmetics. However, it did use agents such as emulsifiers and surfactants which were “usually produced from mineral and vegetable oils such as such as coconut and rapeseed oil – or palm oil and palm kernel oil”, according to the website. In addition one of its products was said to contain processed palm kernel oil. It was the company’s aim to ensure by 2015 that all it suppliers only used sustainably produced and certified palm oil and palm kernel oil. However, Ethical Consumer felt that the negative effects of the use of palm oil had been apparent for many years and a large company such as Beiersdorf could be doing more to assist the process towards more sustainable palm oil production. The company received a worst Ethical Consumer rating for its palm oil policy and lost half marks in the climate change, habitats and resources and human rights categories. (ref: 188) Pollution & Toxics Use of nanoparticles (July 2012) Beiersdorf’s website was searched by Ethical Consumer in July 2012 for its nanotechnology policy. No policy could be found. The Nivea website, www.nivea.co.uk, stated that the products Nivea Pure & Sensitive Sun Spray and Sun Lotion contained Titanium Dioxide (Nano). Other products were said to contain Titanium Dioxide but did not state the particle size. The company lost a mark in the pollution and toxics category for its use of nanotechnology. (ref: 188) Habitats & Resources (See also ‘Worst ECRA rating on palm oil policy’ in Climate Change above.) Animals usually make statements along the lines that they only conduct animal tests where no alternatives are available. This is a very misleading and disingenuous statement because very few nonanimal tests have been validated for the new ingredients that they will be using all the time, so this statement will still account for thousands of animal experiments... If these companies wanted to, they could... end their animal testing immediately.” (ref: 189) People Human Rights (See also ‘Worst ECRA rating on palm oil policy’ in Climate Change above.) Operations in oppressive regimes (June 2012) Beiersdorf’s website was searched by Ethical Consumer for a list of subsidiaries in June 2012. According to its list of worldwide locations, Beiersdorf had operations in Russia, China, India, Kazakhstan, Thailand, Vietnam, Colombia, and Venezuela. All were considered by Ethical Consumer at the time of writing to be governed by oppressive regimes. (ref: 188) Supply Chain Management Worst ECRA rating for supply chain management (June 2012) In June 2012 Ethical Consumer emailed Beiersdorf AG and attached a questionnaire that included a request for a copy of the company’s supply chain management policy. No response was received. Ethical Consumer searched Beiersdorf’s website for the information and found a supplier code of conduct. Supply chain policy (reasonable) The supplier code of conduct stated that it was for all suppliers and subcontractors working with Beiersdorf. It included provisions relating to forced labour, child labour, working hours restricted to 48 plus 12 hours overtime per week, freedom of association, and employment free from discrimination. The code of conduct did not included a provision to pay a living wage therefore the company received a reasonable supply chain policy. Stakeholder engagement (poor) A search of Beiersdorf’s website found no evidence that it was a member of a multi-stakeholder initiative, nor was it involved with any NGOs or trade unions in improving workers’ rights within its supply chain. A search of the website found no evidence that workers could provide feedback on working conditions to the company, therefore Beiersdorf received a poor rating for stakeholder engagement. Animal Testing Worst ECRA rating for animal testing policy (July 2012) In June 2012 Ethical Consumer sent Beiersdorf a questionnaire requesting its animal testing policy. No response was received. Ethical Consumer searched the company’s website and found a brief statement that said the company did not test on animals for cosmetic products. However, none of its products were certified free from animal testing and the Compassionate Shopping Guide 2010 stated that Beiersdorf had not endorsed the fixed cut off date policy. The company therefore received Ethical Consumer worst rating for its animal testing policy. (ref: 188) Criticised by BUAV for animal testing (2007) According to the British Union for the Abolition of Vivisection (BUAV) Cosmetics Companies Guide, located on the organisation’s website (www.buav.org) on 11th January 2007, Beiersdorf was one of a number of companies that tested on animals. According to BUAV: “These companies (and others) conduct and/or commission animal tests for products and/or ingredients. These companies Auditing and reporting (poor) The supplier code of conduct stated that the company required suppliers to become SEDEX members - a web based database, which included self assessment questionnaires. Beiersdorf required suppliers to upload data to SEDEX which was then assessed by the company and if required a third party audit would take place to ensure compliance with the code of conduct. There was no disclosure over locations nor was it clear whether there was a schedule of audits of each factory / supplier. The company did not commit to auditing the whole supply chain and only offered to evaluate potential corrective action with suppliers - it was unclear whether this was a staged approached. SEDEX required members to pay to enter data onto its website. Due to the lack of clear auditing within its supply chain Beiersdorf received a poor rating for auditing and reporting. Difficult issues (poor) A search of Beiersdorf’s website found no evidence that it had specific policies to deal with freedom of association in countries where it was restricted, was taking measures to ensure living wage payments to employees, or acknowledgement of out workers / homeworkers etc, therefore the company received a poor rating for difficult issues. Beiersdorf overall received Ethical Consumer’s worst rating for its supply chain management. (ref: 188) Irresponsible Marketing Misleading advertising (June 2011) In June 2011 it was reported on the US Federal Trade Commission (FTC) website, www.ftc.gov, that Beiersdorf, Inc. had agreed to stop making claims that a Nivea product, My Silhouette!, could “significantly reduce consumers’ body size” and pay $900,000 to settle FTC charges. (ref: 190) Politics Boycott Call Boycott call over animal testing (June 2012) When viewed in June 2012 the Uncaged campaign website (http://www.uncaged.co.uk/crueltyfree.htm) called for a boycott of Beiersdorf as a company that either “openly use animal-tested chemicals, or fail to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date”. (ref: 191) Anti-Social Finance Subsidaries in tax havens (June 2012) Beiersdorf website was searched by Ethical Consumer for a list of subsidiaries in June 2012. According to its list of worldwide locations, Beiersdorf had subsidaries in Ireland, Singapore, British Virgin Islands, Guatemala, Panama and Uruguay. All territories were considered by Ethical Consumer at the time of writing as being tax havens. (ref: 188) say that it did not use any chemicals in its products classified as Substances of Very High Concern by REACH. Neither was there any information in the report on extraction or manipulation of raw materials. Additionally, the report did not appear to have been independently verified. As a result, it received Ethical Consumer’s middle rating in this category. (ref: 192) Climate Change Inadequate policy on palm oil (2012) The Colgate-Palmolive website (www.colgate.com) was searched by Ethical Consumer in March 2012 for the company’s palm oil policy. Its latest Sustainability Report (dated 2011) stated that “By 2015, Colgate’s goal is to purchase only certified sustainable palm oil and derivatives from Roundtable on Sustainable Palm Oil member companies.” There was an accompanying paragraph in the report which stated that although the initial target date of 2011 had been set back to 2015, this was because the company used palm kernel oil, rather than crude palm oil and that there was only one global supplier who could satisfy their demand in 2011, since the growth in palm kernel oil had not mirrored that of crude palm oil. However, due to the massive environmental and social impacts of palm oil production, companies which used palm oil and had an insufficient policy on sourcing this responsibly (currently and not just a future target) received negative marks under the Climate Change, Habitats & Resources and Human Rights categories. (ref: 192) Pollution & Toxics Products containing triclosan, a bioaccumulative chemical (2012) According to the GoodGuide website viewed in March 2012, the following Colgate Palmolive products were listed as containing Triclosan: Ajax and Palmolive antibacterial washing up liquid. Palmolive shower gel Owned by Colgate-Palmolive Co Colgate-Palmolive Co, 300 Park Avenue, New York, NY 10022, USA Environment Environmental Reporting Middle Ethical Consumer rating for environmental reporting (2011) The latest Colgate-Palmolive Sustainbility Report (dated 2011) was downloaded from the company’s website (www.colgate. com) in March 2012. This document contained several targets, under the heading “2011-2015 Sustainability Strategy”. Although it was not explicitly stated, it was assumed that the targets listed were for 2015. These included to reduce the amount of water consumed in the making of products by 40% and to reduce waste sent to landfill by 15%. However, the report did not demonstrate a reasonable understanding of the company’s main environmental impacts, as Colgate-Palmolive was involved in the sale of chemical based products but there was no reporting on hazardous waste produced and there was no information on the types of dangerous / toxic chemicals used, how these were disposed of and no targets for reduction or replacement of harmful chemicals, other than to It is also listed as an ingredient in Colgate Total toothpaste onb the Colgate website - http://www.colgateprofessional.co.uk/ products/Colgate-Total-Toothpaste/details Triclosan is an antibacterial agent is suspected of causing skin or sense organ toxicity, immunotoxicity and is linked to antibiotic resistance. (ref: 143) Use of phthalates in consumer products (July 2011) Ethical Consumer searched the Colgate-Palmolive website, www. colgate.com, in July 2011 and found the following information regarding phthalates — The term “phthalates” is used to describe a large and diverse group of substances that are widely used in many everyday products. The specific members of the phthalate family of ingredients used in Colgate’s products have an excellent safety profile and are present at very low levels. Independent scientists and governmental bodies have extensively studied the compounds’ health and environmental effects, making phthalates some of the most investigated and best understood compounds in the world. The Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), Health Canada and other scientific bodies in Europe, North America and Japan have examined phthalates and allow their continued use. Phthalates were also reviewed by the Cosmetic Ingredient Review (CIR), an independent body that reviews the safety of ingredients used in cosmetics. CIR found them to be safe for use in cosmetics. As with all Colgate products, any specific member of this group of substances used in our products is supported by an extensive body of scientific research and data that confirms safety. Despite these reassurances however, phthalates, are considered to be widespread contaminants linked to hormone disruption, birth defects, kidney, liver and testicular damage. (ref: 193) Habitats & Resources Bertin to Colgate-Palmolive which Bertin describes as a major client in the hygiene and beauty sector. Animal by-products such as tallow (rendered beef fat) were used in many of its personal care products such as soap. (ref: 124) (See also ‘Inadequate policy on palm oil’ in Climate Change above.) People Animals (See also ‘Inadequate policy on palm oil’ in Climate Change above.) Operations in six oppressive regimes (2012) According to the Contact Us section of the Colgate-Palmolive company website (www.colgate.com) when viewed in March 2012, the company had operations in the following six countries which were on Ethical Consumer’s list of oppressive regimes at the time of writing: China, Colombia, Honduras, India, Philippines and Venezuela. (ref: 195) Animal Testing Animal testing of non-medical products (July 2011) According to the PETA website viewed in July 2011, Mennen was listed in a pdf called ‘Companies that test on animals’ produced by People for the Ethical Treatment of Animals. The companies were on the list because they manufacture cosmetic and household products that were tested on animals even though it is not required by law. (ref: 8) Human Rights Animal testing not required by law (July 2011) According to the PETA website viewed in July 2011, Colgate Palmolive was listed in a pdf called ‘Companies that test on animals’ produced by People for the Ethical Treatment of Animals. The companies were on the list because they manufacture cosmetic and household products that were tested on animals even though it is not required by law. (ref: 8) Supply Chain Management Worst Ethical Consumer rating for animal testing policy (2011) During a search in March 2012, Ethical Consumer found some information on animal testing in the latest Colgate-Palmolive Sustainability Report (dated 2011). This stated the following: SUPPLY CHAIN POLICY (rudimentary) “Colgate has a longstanding worldwide policy to minimize and to ultimately eliminate animal testing for all consumer products. Central to this commitment are the Company’s 20-year long efforts to encourage the development of alternatives that are scientifically valid and can be accepted by safety regulators. Colgate is a leader in promoting, encouraging and participating in the development, validation and acceptance of alternative non-animal testing methods worldwide, investing over a million dollars annually on research with non-animal alternatives. The Company works closely with worldwide regulatory agencies to examine how non-animal tests can be incorporated into their safety requirements for consumer products. Recently, People for the Ethical Treatment of Animals (PETA) created a “Working for Regulatory Change” list to promote corporate activism in alternatives research. Colgate-Palmolive is the first company to meet PETA’s stringent requirements and heads this list. In 2010, no animal tests were conducted. Colgate looks forward to a day when all necessary safety studies can be performed without the use of animals and will continue to work to make that day come sooner.” However, as the company was still actively involved in animal testing of its products the company received Ethical Conusmer’s worst rating for animal testing. (ref: 192) Factory farming Company sells meat products not labelled as organic (November 2007) Hill’s website (www.hillspet.com) was viewed 5th. November 2007. The company sold pet food containing meat assumed to be produced through factory farming because it was not labelled organic or free range. (ref: 194) Worst ECRA rating for supply chain management (March 2012) The Colgate-Palmolive Co website (www.colgate.com) was searched by Ethical Consumer in March 2012 for the company’s supply chain management information. It’s Sustainability Report stated that suppliers must adhere to the company’s Supplier Code of Conduct. This was downloaded from the website. The following information relating to labour practices and human rights was found: “Colgate opposes the use of illegal child labor, involuntary servitude, the exploitation of children, and all other forms of abusive or exploitative labor practices. It is Colgate policy not to work with any supplier known to operate with unacceptable worker treatment such as physical punishment, female abuse, involuntary servitude or other forms of abuse. Colgate expects its suppliers to take appropriate steps to ensure that their suppliers do not engage in any of these practices.” However, in the above statement, thea age of a child was not defined and therefore left open to interpretation. “Universal Human Rights Colgate practices and seeks to work with suppliers who promote the following standards in accordance with applicable law: • equal opportunity for employees at all levels regardless of color, race, gender, gender identity, age, ethnicity, national origin, sexual orientation, marital status, religion, veteran status, disability or any other characteristic protected by law; • wages that enable employees to meet at least their basic needs, and opportunities for employees to improve their skills and capabilities; • legally mandated work hours and compensation for overtime hours in accordance with local laws; • respect for the employees’ lawful freedom of association; recognition of all legal rights to organize and collectively bargain; and working with government and communities in which we do business to improve the educational, cultural, economic and social well-being in those communities.” Since the provision over working hours did not go over and above that recognised by law, this was not considered an adequate clause. However, the clause relating to payment of a living wage was considered adequate, as was the discrimination clause. Animal Rights Use of animal by-products (June 2009) A Greenpeace International report published in June 2009 and called ‘Slaughtering the Amazon’, linked Brazilian cattle company STAKEHOLDER ENGAGEMENT (poor) No mention found. AUDITING AND REPORTING (poor) The 2011 Sustainability Report stated that the company was in the process of developing a Supplier Responsible Sourcing Assessment program. It listed the following goal: “2010 to 2015 Goal: 70% of Colgate’s supplier spending in at-risk industries, geographies or environments will undergo a Responsible Sourcing Self-Assessment and/or third party audit.” Therefore, the company had not made a committment to audit its entire supply chain. DIFFICULT ISSUES (poor) No mention found. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 192) Irresponsible Marketing Recall of poisonous pet food (2007) According to the Summer 2007 issue of Earth Island Journal, March 2007 saw the biggest recall of product in the history of the pet food industry. Hill’s Pet Nutrition was one of the companies implicated in the scandal, which had seen over 153 brands of pet foods and treats taken off the shelves all over the USA due to it containing wheat gluten and rice protein concentrate which had been contaminated with melamine, a material used to manufacture kitchen utensils and, in China, fertiliser. It said the melamine had been added to the wheat and rice in a bid to increase their protein levels, and had been imported by two US companies fom China. The number of reported deaths and illnesses in pets ranged from 16 to more than 3,000, depending on the source. (ref: 146) Politics Genetic Engineering No policy on GMOs (2012) A search was made on Colgate-Palmolive’s website (www. colgate.com) in March 2012 and no policy statement could be found regarding genetically modified organisms (GMO). As the company was in a sector likely to employ GMO a negative mark was awarded in this category. The company sold pet food containing meat, therefore it was considered likely that it was selling products containing both genetically modified grains and animal products from animals fed GM crops. A Soil Association report published in November 2008, entitled ‘Silent invasion: the hidden use of GM crops in livestock feed’, estimated that around 60% of the maize and 30% of the soya in the feed used by dairy and pig farmers is GM. Therefore without a policy to the contrary we would assume there was a high probability that such products would be derived from animals fed GM feed. (ref: 195) Boycott Call Boycott called by Uncaged for animal testing policy (2012) Colgate-Palmolive appeared on the ‘Companies to boycott’ list on the Uncaged website www.uncaged.co.uk/crueltyfree.htm, when it was viewed by Ethical Consumer in February 2012. Elsewhere on the website, Uncaged were calling for a boycott of Hills Science Diet, which was owned by Colgate Palmolive, due to its testing of pet foods on animals. (ref: 31) Animal testing policy: Worst ECRA rating and boycott call (January 2010) Hill’s Pet Nutrition’s website (www.hillspet.com), viewed January 2010 contained a policy statement called ‘Hill’s Commitment to Animal Welfare’. The statement made a number of positive provisions, such as, “We only use non-invasive, human research methods” and “We do not participate in studies that jeopardise the health of dogs and cats”. The policy also noted that the company strove to find ways to reduce dependence on animal research and cited an ‘artificial mouth’ used in experiments. ECRA had previously discussed the policy with the Uncaged Campaign (www. uncaged.co.uk), who call for a boycott of Hill’s Pet Foods. The director of the Uncaged Campaign noted that the statement did not change its policy regarding Hill’s. He went on to state: “website policy statements are not reliable...unless there is transparency and independent scrutiny of their facilities and experimental protocols.” He went on to note that the Hill’s statement only mentioned dogs and cats allowing for potentially a much weaker policy governing experiments on other species. Hill’s was still on Uncaged’s list of petfood companies to boycott at the time of writing. (ref: 196) Anti-Social Finance Fined for price fixing (March 2012) An article dated 20th March in the Financial Times, reported that Colgate-Palmolive and two other pet companies had been fined a total of Euro35.3 million by the French anti-trust authority for price fixing. The French anti-trust authority, the Autorite de la Concurrence, said the three companies were fined for limiting competition on the markets for dry food for dogs and cats in specialised retailers in France between 2004 and 2008. The practise had raised prices for customers whose tendency to be brand loyal made them particulary vulnerable. The report stated that Colgate-Palmolive had been fined Euro 4.7million. (ref: 197) Excessive Directors’ Remuneration (2011) The Executive Pay Watch database on www.aflcio.org listed the Colgate-Palmolive CEO as having received $14,120,838 in 2011. Ethical Consumer deems any amount over £1 million annually to be excessive. (ref: 26) Excessive director pay (2008) According to the Executive Pay Watch database www.aflicio.org, in 2011 Colgate-Palmolive CEO Ian Cook earned $14,120,838.00, which was just over £9 million. Ethical Consumer deemed any annual amount over £1 million to be excessive. (ref: 26) PitRok crystal deodorant [A] Owned by PitRok Ltd PitRok Ltd, PO Box 1416, London, W6 9WH PitRok Ltd is owned by Severn Delta Ltd Environment Environmental Reporting Worst ECRA rating for environmental reporting (2012) Severn Delta did not respond to Ethical Consumer’s written request in June 2012 for the company’s environmental policy. Nor could this information be found on its website (www. severndelta.co.uk), when viewed by Ethical Consumer in July 2012. Although it was a small company, it manufactured a range of products, only some of which had an ecological focus. It manufactured Wet Wipes and was the leading UK supplier of tumble drier sheets. As a result, Ethical Consumer would expect the company to have a policy in place setting out the ways it was managing its impacts on the environment. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 198) Climate Change No palm oil policy (June 2012) Severn Delta did not respond to a written request from Ethical Consumer for information regarding its palm oil sourcing policy in June 2012. No related information could be found on its website, www.severndelta.co.uk. The website for one of the company’s brands, Sarah Smith, showed a product which it was stated was orang-utan friendly as it did not contain palm oil derived ingredients. Other products did not carry this logo. Due to the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 198) Habitats & Resources (See also ‘No palm oil policy’ in Climate Change above.) People Human Rights (See also ‘No palm oil policy’ in Climate Change above.) Supply Chain Management Worst ECRA rating for supply chain management (2012) Severn Delta did not respond to Ethical Consumer’s written request in June 2012 for the company’s supply chain management policy. Nor could this information be found on its website (www. severndelta.co.uk), when viewed by Ethical Consumer in July 2012. Despite the fact that it was a small company, it received Ethical Consumer’s worst rating in this category, since no mention was made of workers’ rights at all on the company website. (ref: 198) Product sustainability Animal Welfare Features Vegetarian and vegan (2012) According to the Pitrok website www.pitrok.co.uk, viewed in June 2012, the product was suitable for vegetarians and vegans. It also stated that it did not use parabens or PEG. (ref: 199) People Supply Chain Management Best ECRA rating for supply chain policy (2012) The Pure Nuff Stuff website (www.purenuffstuff.co.uk), viewed by Ethical Consumer in July 2012, included the following information on the company’s supply chain management policy: “We’ve searched high and low for suppliers that support the same policies we do in terms of sustainability and fair-trade and we ensure that our own production is as environmentally sound as possible.” “Every single batch of Pure Nuff Stuff is handmade by a person, right from measuring out the ingredients to bottling and putting the labels on.” The company’s workshop was adjacent to its shop in Penzance, UK. As a small company demonstrating effective if not explicit management of its supply chain, the company received Ethical Consumer’s best rating in this category. (ref: 200) Politics Company Ethos Vegetarian company with leaping bunny logo (July 2012) In a questionnaire sent to Ethical Consumer in July 2012, the Pure Nuff Stuff range was said to be suitable for vegetarians. A small number of products were said to be not suitable for vegans due to the use of beeswax. In May 2012 the Pure Nuff Stuff website, www.purenuffstuff. co.uk, stated that the company’s products were BUAV certified and that it operated a fixed animal testing cut-off date of 1996. (ref: 201) Rimmel make-up Pure Nuff Stuff baby wash Owned by Pure Nuff Stuff Ltd Pure Nuff Stuff Ltd, Director, The Egyptian House, 6 Chapel Street, Penzance, Cornwall, TR18 4AJ Environment Environmental Reporting Best ECRA rating for environmental reporting (2012) The Pure Nuff Stuff website (www.purenuffstuff.co.uk), viewed by Ethical Consumer in July 2012, included the following information on the company’s environmental policy: “Our packaging is kept to an absolute minimum. We use glass jars and HDPE plastic bottles (the most recyclable plastic available) and we urge all our customers to recycle all their packaging.” “We absolutely promise (cross our hearts) that we won’t use SLS, parabens, urea, synthetic fragrance or colour and any other of the 2000 nasty chemicals allowed in everyday cosmetics. They’re just not necessary.” “All our ingredients come from natural sources and through their life cycle do not hurt the environment. The word ‘natural’ is a slippery one as one person’s understanding of it isn’t the same as someone else’s – so here’s our definition. By natural sources we mean everything we use comes from vegetable, mineral or plant sources and not the petrochemical industry.” As a small company providing environmentally alternative products, it received Ethical Consumer’s best rating in this category. (ref: 200) Owned by Coty Inc Coty Inc, 1325 Avenue of the Americas, 34th Floor, New York, NY 10019, USA Coty Inc is owned by Joh A Benckiser GmbH Joh A Benckiser GmbH, Ludwig-Bertram-Strasse 4-22. 67059 Ludwigshafen., Germany Environment Environmental Reporting Worst ECRA rating for environmental reporting (2012) Ethical Consumer searched the Coty Inc website (www.coty.com) in June 2012 for the company’s environmental policy or report. The website contained some vague statements about its commitments to the environment, but these did not include discussion of the company’s main impacts, identify dated, quantified future targets for reducing these, or any carbon disclosure. The company received Ethical Consumer’s worst rating in this category. (ref: 202) Climate Change No palm oil policy (June 2012) Coty Inc did not respond to a written request from Ethical Consumer for information regarding its palm oil sourcing policy in June 2012. No related information could be found on its website, www.coty.com. The company operated in a sector in which the use of palm oil was widespread. Due to the negative effects of palm oil production world wide, and the absence of a policy regarding the responsible sourcing of palm oil, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 202) Policy on Palm Oil (2012) The Reckitt Benckiser website (www.rb.com) was searched by Ethical Consumer in February 2012 for the company’s policy on palm oil. A statement on palm oil was found in its latest Sustainability Report (2010). This stated that RB products use less than 0.2% of annual global palm oil production. It added that “Soap noodles – which contain a large amount of palm oil – are used in the production of bar soaps in our Developing Markets area.” The company stated that it was a member of the Roundtable on Sustainable Palm Oil (RSPO) and fully supported a moratorium on any further deforestation associated with the cultivation of palm oil. It added that it was working with its suppliers and others in the industry to seek the world’s major palm oil supplies being drawn from certified, sustainable sources by 2015 and was working with its suppliers to ensure that the RSPO’s principles and criteria were implemented within its supply chain. However, due to the massive environmental and social impacts of palm oil production, companies which used palm oil and had an insufficient policy on sourcing this responsibly (currently and not just a future target) received negative marks under the Climate Change, Habitats & Resources and Human Rights categories. (ref: 203) Pollution & Toxics Use of nanotechnology (May 2011) According to an article posted on the NaturalNano website, www. naturalnano.com, in May 2011, the company had supplied more than a ton of treated Halloysite Nanotubes (“HNT”) to Fiabila S.A., which was said to use them in the manufacture of Sally Hansen nail varnish for Coty. The website nanogloss.com also stated that Coty was investing heavily in nanotechnological research,’therefore further nanotechnological leaps in the way perfumes and related products are produced and applied can be expected in the very near future’. (ref: 204) Banned ingredient found in medicine (January 2007) According to the January/March 2007 issue of the Food Magazine (issue 76), a survey of 41 children’s medicines found that SSL International’s (a subsidiary of Reckitt Benckiser Group) Meltus Dry Coughs Syrup 2yrs+, included chloroform on its list of ingredients. It was mentioned that the ‘Chloroform in Food Regulations of 1980 [made] it an offence to sell or import food containing added chloroform, but here it [was] in a child’s cough medicine’. Although the Food Magazine explained that chloroform was noted as an ‘inactive’ rather than ‘active’ ingredient in this product, it questioned the meaning of this. (ref: 121) Use of Triclosan antibacterial (March 2012) According to the GoodGuide website viewed in March 2012, the following Reckitt Benckiser product was listed as containing Triclosan: Lysol I.C. Antimicrobial Soap. Triclosan is an antibacterial agent is suspected of causing skin or sense organ toxicity, immunotoxicity and is linked to antibiotic resistance. (ref: 143) Worst ECRA rating for animal testing policy (February 2012) The Reckitt Benckiser website, (www.reckittbenckiser.com), viewed by ECRA in February 2012, was found to contain a copy of the company’s Global Policy Statement on Animal Testing, which the company’s website stated was dated October 2009, although the document itself bore the date June 2001. This stated that the company would use animal tests where required by law, but also actively supported research into developing new methods for testing without the use of animals. It also said it would conduct animal testing for new products where no safety information was available. (ref: 205) Animal testing not required by law (July 2011) A pdf called ‘Companies that test on animals’ produced by People for the Ethical Treatment of Animals (PETA) was downloaded from the organisation’s website (www.peta.com) in February 2012. The document had last been updated on 15 February 2012. Reckitt Benckiser was listed. The company was on the list because it manufactured cosmetic and household products that were tested on animals even though it was not required by law. Reckitt Benckiser brands in the UK as of 11th July 2011 were: Air Wick, Bonjela, Brasso, Codis, Clearasil, Cillit Bang, Calgon, Dettol, Disprin, Durex, E45, Finish, Fybogel, Gaviscon, Harpic, Karvol, Lemsip, Mr Sheen, Nurofen, Optrex, Strepsil, Scholl, Senokot, Steradent, Sweetex. (ref: 206) People Human Rights (See also ‘No palm oil policy’ in Climate Change above.) (See also ‘Policy on Palm Oil’ in Climate Change above.) Operations in five Oppressive Regimes (2012) According to the Reckitt Beckinser fact sheet on www.hoovers. com, viewed in January 2012, the company had operations in the following countries, all of which were on Ethical Consumer’s list of oppressive regimes at the time of writing: Colombia, India, Nigeria, Pakistan and Thailand. (ref: 77) Supply Chain Management Worst ECRA rating for supply chain management policy (2012) The Coty website (www.coty.com), viewed by Ethical Consumer in June 2012, included the following information on the company’s supply chain management policy: SUPPLY CHAIN POLICY (rudimentary) The company’s ‘Principles for Business Partners’ document, which was undated, stated that the company would not use forced labour, would not discriminate, would allow access to trade unions and would not employ children under 15, even if allowed by local law. Its clauses on number of hours in a working week, and wages, however were considered insufficient. Habitats & Resources STAKEHOLDER ENGAGEMENT (poor) (See also ‘No palm oil policy’ in Climate Change above.) (See also ‘Policy on Palm Oil’ in Climate Change above.) No mention found. Animals AUDITNG AND REPORTING (poor) Animal Testing No mention found. Worst ECRA rating for animal testing policy (2012) Ethical Consumer searched the Coty Inc website (www.coty. com) in June 2012 for the company’s animal testing policy. No such document, nor any mention of animal testing, could be found. As it operated in a sector where animal testing was common, it received Ethical Consumer’s worst rating in this category. (ref: 202) DIFFICULT ISSUES (poor) No mention found. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 202) Politics Boycott Call Boycott call (2012) The Uncaged website (www.uncaged.co.uk) was viewed by Ethical Consumer in July 2012. Coty was listed as a company to boycott due to its poor animal testing policy. (ref: 118) Boycott call from Uncaged over animal testing (2012) Reckitt Benckiser was listed under a list of ‘Companies to Boycott’ on the Uncaged website, www.uncaged.co.uk, when viewed by Ethical Consumer in February 2012. This was because “The companies either openly used animal-tested chemicals, or failed to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date.” (ref: 31) Anti-Social Finance Operations in 2 tax havens (2012) According to the Coty company factsheet on the Hoovers website (www.hoovers.com), which was viewed by Ethical Consumer in July 2012, Coty had subsidiaries in three territories regarded by Ethical Consumer at the time of writing to be tax havens; Hong Kong, Ireland and Singapore. (ref: 77) Subsidiaries in two tax havens (2012) According to the Reckitt Beckinser fact sheet on www.hoovers. com, viewed in January 2012, the company had subsidiaries in the British Virgin Islands and Luxembourg. Both were on Ethical Consumer’s list of tax havens at the time of writing. (ref: 77) Criticised by ActionAid for having subsidiaries in tax havens (October 2011) ActionAid published a FTSE 100 Tax Haven Tracker in October 2011 which tracked how many of the subsidiaries of the FTSE 100 companies were in tax havens. It uncovered that Reckitt Benckiser had 211 subsidiaries, 25% of which were in developing countries and 29% of which were in tax havens. According to ActionAid corporate tax avoidance, one of the main reasons companies use tax havens, was having a massive impact on rich and poor countries alike. Developing countries it, said currently lose three times more to tax havens than they receive in aid each year. Chris Jordan, ActionAid’s tax justice expert said: “ActionAid’s research showing the use of tax havens by Britain’s biggest companies raises serious questions they need to answer. Tax havens have a damaging impact on the UK exchequer, the stability of the international financial system, and vitally on the ability of developing countries to raise tax revenues which would lift them out of poverty and make them less dependent on aid.” The use of tax havens facilitates tax avoidance and evasion, which undermines the revenue bases of both developing and developed countries. Additional revenues are urgently needed both to invest in the fight against poverty and to tackle the deficits incurred during the financial crisis in rich countries. Chris Jordan continued: “When multinationals use tax havens to avoid paying their fair share, ordinary people in both poor and rich countries are left to pick up the bill. Spending on doctors, nurses and other essential services gets cut for those who need it most. Tax havens might provide the lure of financial secrecy and low tax rates for big companies, but at a time when all countries are desperate for revenues, the UK government can’t afford to turn a blind eye.” ActionAid was calling on the government to urgently rethink its current proposals to relax UK anti tax haven rules. The Treasury itself estimated these changes would result in an £840 million tax break for multinational companies that use tax havens. With both developing and developed countries bearing the brunt of debilitating losses, ActionAid said the UK must ensure the G20 takes the decisive action it promised on tax havens at the London summit in 2009. (ref: 105) Salt of the Earth crystal deodorant [S,A] Owned by Crystal Spring Crystal Spring, Crystal Spring Consumer Division Limited, Firtree Farmhouse, Firtree Lane, Horton Heath, Eastleigh, Hants Environment Environmental Reporting Best ECRA rating for environmental reporting (2012) The Crystal Spring website (www.crystalspring.co.uk), viewed by Ethical Consumer in June 2012, did not include any information on the company’s environmental policy or report. The company’s website stated “We’re completely free from: Aluminium Cholorohydrate, Parabens, Alcohol, Perfumes, CFC’s, Triclosan, Mineral Oils, and Propellants.” Since it was an SME providing environmental alternative’s, the company received Ethical Consumer’s best rating in this category. (ref: 207) Animals Animal Testing Middle ECRA rating for animal testing policy (2012) The Crystal Spring website stated that its full range of natural deodorants were safe for use by Vegetarians and Vegans. It added “We operate a strict no animal testing policy. We have never tested on animals, nor do we source ingredients that have been tested on animals. Our Salt of the Earth deodorant range contains no animal ingredients or ingredients made from animal by-products.” Because there was no fixed cut off date, the company receives our middle rating. (ref: 207) People Supply Chain Management Worst ECRA rating for supply chain management policy (2012) The Crystal Spring website (www.crystalspring.co.uk), viewed by Ethical Consumer in June 2012, did not include any information on the company’s supply chain management policy. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 207) Politics Company Ethos (See also ‘Middle ECRA rating for animal testing policy’ in Animal Testing above.) Product sustainability Other Sustainability Features Vegan and sustainable (July 2012) According to the Crystal Spring website (www.crystalspring. co.uk), viewed by Ethical Consumer in June 2012, the company’s shampoo was free from the following: # Alcohol # Parabens # Synthetic Fragrances # Mineral Oils # Animal Derived Ingredients It was sold as suitable for vegetarians and vegans, therefore the company received a product sustainability mark. (ref: 207) Animal Welfare Features (See also ‘Vegan and sustainable’ in Other Sustainability Features above.) As a result the company received Ethical Consumer’s worst rating in this category. (ref: 210) Product sustainability Sante make-up Owned by Sante Naturkosmetik GmbH Sante Naturkosmetik GmbH is owned by Logocos Naturkosmetik AG Logocos Naturkosmetik AG, Zur Krouterwiese, Salzhemmendorf, Niedersachsen, 31020, Germany Environment Environmental Reporting Worst ECRA rating for environmental reporting (2012) The Sante website (www.sante.de), viewed by Ethical Consumer in July 2012, included the following information on the company’s environmental policy: “# We are working continuously on optimizing our environmental aspects in the areas of: energy, waste, water and CO2 emissions. # Our company was awarded ISO 140001 for eco-management and the EMAS certificate (Eco-management and Audit Scheme). # 99 % of our total consumption of electricity comes from regenerative energy sources. # The basic warmth to keep our premises heated is produced at the nearby bio-gas plant. # In the winter, the production rooms are heated by re-circulating water from the cooling system” There was no mention of chemicals and their impact on the environment. Although the company’s website stated that almost all of its products fulfilled the strict criteria of BDIH for certified natural cosmetics and also for the NaTrue natural cosmetics label. However, as a larger company, Ethical Consumer expected it to have an environmental policy in place which identified the company’s main environmental impacts and had set dated, quantified targets for reducing them over time. In the absence of such a policy, Sante Naturkosmetik received Ethical Consumer’s worst rating in this category. (ref: 208) Climate Change No palm oil policy (July 2012) Logocos Naturkosmetik AG did not respond to a written request from Ethical Consumer for information regarding its palm oil sourcing policy in June 2012. No related information could be found on its website, www.logona.com, although palm oil and derivatives were listed on a page entitled ‘Lexicon’. Due to the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 209) Habitats & Resources (See also ‘No palm oil policy’ in Climate Change above.) People Human Rights (See also ‘No palm oil policy’ in Climate Change above.) Supply Chain Management Worst ECRA rating for supply chain management (2012) The Sante Naturkosmetik website (www.sante.de), was searched by Ethical Consumer in July 2012 for information on the company’s supply chain management policy. No such information could be found. Sante had also failed to respond to Ethical Consumer’s written request in July 2012 for this information. Other Sustainability Features Sustainability feature (2012) According to the Sante website www.sante.de, viewed in July 2012, the company did not use the following chemicals in most of its make-up (marked with the BDIH symbol), which potentially pose a risk to the environment and human health: * Synthetic Fragrance and Dyes * Methylchloroisothiazolinone and Methylisothiazolinone * Parabens or “-paraben” - Hormone effects * “PEG” and “-eth” - Toxic contaminants * Petrochemicals This product therefore received a positive mark under Ethical Consumer’s product sustainability category. (ref: 210) Steradent denture cream Owned by Reckitt Benckiser Group PLC Reckitt Benckiser Group PLC, Environment & Occupational HS Director, 103-105 Bath Road, Slough, Berks, SL1 3UH, UK Reckitt Benckiser Group PLC is owned by Joh A Benckiser GmbH (16%) Joh A Benckiser GmbH, Ludwig-Bertram-Strasse 4-22. 67059 Ludwigshafen., Germany Environment Environmental Reporting Worst ECRA rating for Environment Report (2012) The latest Reckitt Benckiser Sustainability Report (dated 2010) was viewed by ECRA in February 2012. The report contained information on the company’s approach to managing its environmental impacts. The report demonstrated a reasonable understanding of the company’s main impacts, discussing those arising from raw and packaging materials, product manufacturing, product distribution, retailers’ operations, consumer use and product and packaging disposal and recycling. Only one dated, quantified target for reducing these impacts could be found however; “a 20% reduction per Dose* in our global products’ Total Carbon Footprint by 2020, against a 2007 baseline.” No evidence could be found that the environmental data in the report had been independently verified. (ref: 203) Climate Change Policy on Palm Oil (2012) The Reckitt Benckiser website (www.rb.com) was searched by Ethical Consumer in February 2012 for the company’s policy on palm oil. A statement on palm oil was found in its latest Sustainability Report (2010). This stated that RB products use less than 0.2% of annual global palm oil production. It added that “Soap noodles – which contain a large amount of palm oil – are used in the production of bar soaps in our Developing Markets area.” The company stated that it was a member of the Roundtable on Sustainable Palm Oil (RSPO) and fully supported a moratorium on any further deforestation associated with the cultivation of palm oil. It added that it was working with its suppliers and others in the industry to seek the world’s major palm oil supplies being drawn from certified, sustainable sources by 2015 and was working with its suppliers to ensure that the RSPO’s principles and criteria were implemented within its supply chain. However, due to the massive environmental and social impacts of palm oil production, companies which used palm oil and had an insufficient policy on sourcing this responsibly (currently and not just a future target) received negative marks under the Climate Change, Habitats & Resources and Human Rights categories. (ref: 203) No palm oil policy (June 2012) Coty Inc did not respond to a written request from Ethical Consumer for information regarding its palm oil sourcing policy in June 2012. No related information could be found on its website, www.coty.com. The company operated in a sector in which the use of palm oil was widespread. Due to the negative effects of palm oil production world wide, and the absence of a policy regarding the responsible sourcing of palm oil, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 202) Pollution & Toxics viewed by ECRA in February 2012, was found to contain a copy of the company’s Global Policy Statement on Animal Testing, which the company’s website stated was dated October 2009, although the document itself bore the date June 2001. This stated that the company would use animal tests where required by law, but also actively supported research into developing new methods for testing without the use of animals. It also said it would conduct animal testing for new products where no safety information was available. (ref: 205) Animal testing not required by law (July 2011) A pdf called ‘Companies that test on animals’ produced by People for the Ethical Treatment of Animals (PETA) was downloaded from the organisation’s website (www.peta.com) in February 2012. The document had last been updated on 15 February 2012. Reckitt Benckiser was listed. The company was on the list because it manufactured cosmetic and household products that were tested on animals even though it was not required by law. Banned ingredient found in medicine (January 2007) According to the January/March 2007 issue of the Food Magazine (issue 76), a survey of 41 children’s medicines found that SSL International’s (a subsidiary of Reckitt Benckiser Group) Meltus Dry Coughs Syrup 2yrs+, included chloroform on its list of ingredients. It was mentioned that the ‘Chloroform in Food Regulations of 1980 [made] it an offence to sell or import food containing added chloroform, but here it [was] in a child’s cough medicine’. Although the Food Magazine explained that chloroform was noted as an ‘inactive’ rather than ‘active’ ingredient in this product, it questioned the meaning of this. (ref: 121) Reckitt Benckiser brands in the UK as of 11th July 2011 were: Air Wick, Bonjela, Brasso, Codis, Clearasil, Cillit Bang, Calgon, Dettol, Disprin, Durex, E45, Finish, Fybogel, Gaviscon, Harpic, Karvol, Lemsip, Mr Sheen, Nurofen, Optrex, Strepsil, Scholl, Senokot, Steradent, Sweetex. (ref: 206) Use of Triclosan antibacterial (March 2012) According to the GoodGuide website viewed in March 2012, the following Reckitt Benckiser product was listed as containing Triclosan: Lysol I.C. Antimicrobial Soap. People Triclosan is an antibacterial agent is suspected of causing skin or sense organ toxicity, immunotoxicity and is linked to antibiotic resistance. (ref: 143) Hidden toxic chemicals found in cleaning products (November 2011) A study by Women’s Voices for the Earth (WVE) released in November 2011 found that several popular cleaning products contained hidden toxic chemicals that were not disclosed on the packaging. The WVE commissioned an independent laboratory to test 20 popular cleaning products by five large cleaning companies. The products tested included all-purpose cleaners, laundry detergent, dryer sheets, air fresheners, disinfectant sprays and furniture polish. According to the report the tests found that some products contained reproductive toxins such as toluene and phthalates, carcinogens such as 1,4-dioxane and chloroform, and a hormone disrupting synthetic musk. In particular fragrant and non-fragrant air freshers contained allergens. The WVE were calling for American Congress to pass legislation that required cleaning product manufacturers to disclose all the ingredients they use in their products directly on the product label. Several Reckitt Benckiser Plc brands were tested by the WVE. The products were found to contain chemicals which were known allergens. (ref: 211) Criticism from Naturewatch (September 2009) Naturewatch’s ‘Compassionate Shopping Guide’ 11th edition, received September 2009, confirmed that the group was still not advocating Reckitt Benckiser at that time on the grounds that it continued to use animals for testing its products. (ref: 66) Human Rights (See also ‘Policy on Palm Oil’ in Climate Change above.) Operations in five Oppressive Regimes (2012) According to the Reckitt Beckinser fact sheet on www.hoovers. com, viewed in January 2012, the company had operations in the following countries, all of which were on Ethical Consumer’s list of oppressive regimes at the time of writing: Colombia, India, Nigeria, Pakistan and Thailand. (ref: 77) (See also ‘No palm oil policy’ in Climate Change above.) Supply Chain Management Worst rating for supply chain management (2012) The latest Reckitt Benckiser Sustainability Report (dated 2010) was viewed by ECRA in February 2012. The report contained information on the company’s approach to supply chain management. SUPPLY CHAIN POLICY (rudimentary) The report stated that the company assessed suppliers against its Global Manufacturing Standards (GMS). These were outlined in a document downloadable from the company’s website dated September 2008. It included clauses on discrimination, forced labour and freedom of association, making alowances for parallel means if this was not provided for under local law. However, although there was a clause on child labour, the age of a child was not defined. There was no mention of the payment of a living wage or of limiting the working week to 48 hours plus 12 hours overtime. Habitats & Resources (See also ‘Policy on Palm Oil’ in Climate Change above.) (See also ‘No palm oil policy’ in Climate Change above.) Animals Animal Testing Worst ECRA rating for animal testing policy (February 2012) The Reckitt Benckiser website, (www.reckittbenckiser.com), STAKEHOLDER ENGAGEMENT (rudimentary) The Sustainability Report stated that the company talked to stakeholders in the develpment of its sustainability reporting. It also stated that these stakeholders included NGOs. However, neither specific cases, nor NGOs working with workers’ rights and supply chains were named specifically. There was no mention of involvement of multi-stakeholder initiatives on labour standards. Consumer’s list of tax havens at the time of writing. (ref: 77) While a whistleblower mechanism was detailed for employees of the company, no such mechanism was discussed in the Sustinability Report in relation to the employees of suppliers. Criticised by ActionAid for having subsidiaries in tax havens (October 2011) ActionAid published a FTSE 100 Tax Haven Tracker in October 2011 which tracked how many of the subsidiaries of the FTSE 100 companies were in tax havens. It uncovered that Reckitt Benckiser had 211 subsidiaries, 25% of which were in developing countries and 29% of which were in tax havens. AUDITING AND REPORTING (poor) Under the title ‘Progress so far’, the Sustainability report contained the following information on its auditing procedures: “To date we have not identified any critical non-compliance issues such as under-age working. We have identified non-compliance related to health and safety standards and have taken action to address the issues we found. We are working with these suppliers to continually monitor the situation at those sites. We ensure that suppliers: • are frequently visited by senior and middle managers in our R&D and Supply functions. They provide additional ‘eyes and ears’ and report potential issues they come across. • are required to comply with our GMS through the terms of our contract. • may be subject to separate environmental and health and safety (EHS) inspections and audits where we believe these are necessary.” No audit schedule was found, nor a rememdiation strategy in cases of non-compliance, nor any clear statement which committed to auditing the whole of the supply chain. DIFFICULT ISSUES (poor) No evidence found. (ref: 203) Irresponsible Marketing (See also ‘Banned ingredient found in medicine’ in Pollution & Toxics above.) Politics Genetic Engineering No GM policy (2012) Reckitt Benckiser returned an Ethical Consumer company questionnaire in March 2012, which asked, among other things, for the company’s GMO policy. The company responded that it did not have such a policy. As well as manufacturing a range of personal care and cleaning products, RB produced French’s Mustard, which was not labelled as organic. It was considered likely that in the absence of a policy sttaing otherwise, the company used some GM ingredients in its products. (ref: 212) Boycott Call Boycott call from Uncaged over animal testing (2012) Reckitt Benckiser was listed under a list of ‘Companies to Boycott’ on the Uncaged website, www.uncaged.co.uk, when viewed by Ethical Consumer in February 2012. This was because “The companies either openly used animal-tested chemicals, or failed to demonstrate that the finished product and the ingredients they use have not been tested on animals since a fixed cut-off date.” (ref: 31) Boycott call (2012) The Uncaged website (www.uncaged.co.uk) was viewed by Ethical Consumer in July 2012. Coty was listed as a company to boycott due to its poor animal testing policy. (ref: 118) Anti-Social Finance Subsidiaries in two tax havens (2012) According to the Reckitt Beckinser fact sheet on www.hoovers. com, viewed in January 2012, the company had subsidiaries in the British Virgin Islands and Luxembourg. Both were on Ethical According to ActionAid corporate tax avoidance, one of the main reasons companies use tax havens, was having a massive impact on rich and poor countries alike. Developing countries it, said currently lose three times more to tax havens than they receive in aid each year. Chris Jordan, ActionAid’s tax justice expert said: “ActionAid’s research showing the use of tax havens by Britain’s biggest companies raises serious questions they need to answer. Tax havens have a damaging impact on the UK exchequer, the stability of the international financial system, and vitally on the ability of developing countries to raise tax revenues which would lift them out of poverty and make them less dependent on aid.” The use of tax havens facilitates tax avoidance and evasion, which undermines the revenue bases of both developing and developed countries. Additional revenues are urgently needed both to invest in the fight against poverty and to tackle the deficits incurred during the financial crisis in rich countries. Chris Jordan continued: “When multinationals use tax havens to avoid paying their fair share, ordinary people in both poor and rich countries are left to pick up the bill. Spending on doctors, nurses and other essential services gets cut for those who need it most. Tax havens might provide the lure of financial secrecy and low tax rates for big companies, but at a time when all countries are desperate for revenues, the UK government can’t afford to turn a blind eye.” ActionAid was calling on the government to urgently rethink its current proposals to relax UK anti tax haven rules. The Treasury itself estimated these changes would result in an £840 million tax break for multinational companies that use tax havens. With both developing and developed countries bearing the brunt of debilitating losses, ActionAid said the UK must ensure the G20 takes the decisive action it promised on tax havens at the London summit in 2009. (ref: 105) One of highest levels of director remuneration in UK (October 2011) According to an article published on the BBC News website, www. bbc.co.uk, ‘Directors’ pay rose 50% in past year, says IDS report’, dated October 28th 2011, pay for the directors of the UK’s top businesses rose 50% over the past year. The rise, covering salary, benefits and bonuses, was higher than that recorded for the main person running the company, the chief executive, it said. Their pay rose by 43% over the year, according to the study conducted by Incomes Data Services (IDS), which said this took the average pay for a director of a FTSE 100 company to just short of £2.7m. A statement from IDS said that figure suggested that “executive largesse is evenly spread across the board”. Base salaries rose by just 3.2%, although that was above the median rise recorded by IDS that week for average pay settlements of 2.6% for private sector workers. The latest consumer price inflation figures showed inflation at 5.2%. Directors’ bonus payments, on average, rose by 23% from £737,000 in 2010 to £906,000 that year. Bart Becht chief executive of Reckitt Benckiser was named in the report as receiving £17,879,000 total earnings in 2010/11. The Unite union has called executive pay “obscene” and has called for shareholders to be given more power to hold directors accountable. The union’s general secretary, Len McCluskey said: “The Government should strongly consider giving shareholders greater legal powers to question and curb these excessive remuneration packages. “Institutional shareholders need to exercise much greater scrutiny and control of directors’ pay and bonuses. “It’s obscene and it shows that the City has learnt nothing during the financial troubles of the last four years.” Brendan Barber, the TUC’s general secretary, said: “Top directors have used tough business conditions to impose real wage cuts, which have hit people’s living standards and the wider economy, but have shown no such restraint with their own pay. “Reform should start with employee representation on remuneration committees, which would give directors a much-needed sense of reality.” (ref: 213) Suma shampoos [S,A] Owned by Triangle Wholefoods Collective Ltd Triangle Wholefoods Collective Ltd, Lacey Way, Lowfields Industrial Park, Elland, West Yorks, HX5 9DB, UK Environment Environmental Reporting Middle ECRA rating for environmental reporting (March 2012) In response to a written request from Ethical Consumer in February 2012 for the company’s environmental policy or report, Triangle Wholefoods stated that the information required hadn’t changed since last time it was requested by Ethical Consumer. The company was therefore rated according to the latest Corporate Responsibility and the Environment 2011 report which it had emailed to Ethical Consumer in September 2011. This provided examples of how the company sought to reduce its environmental impacts, such as only using renewable energy sources, using recycled stationary, accepting packaging back from its customers for re-use and recycling. The company was said to work with a local organisation, Treesponsibility, in planting 5 hectares of nascent woodland every year since 2000. Meaningful carbon disclosure was provided. Two dated, future targets to reduce its environmental impact were provided: improving its energy efficiency by an aggregate 20% by 2012 against its baseline of 2004-05 and reducing the CO2 intensity of its operations a further 6% in the following year (2012) with additional incremental savings thereafter. Whilst the company was considered to have demonstrated a reasonable understanding of its direct environmental impacts, the document lacked any detail regarding assessing the impacts of its supply chain. No mention was made of agricultural production, although the company was largely a wholefood distributor. Furthermore, no mention was made of independent verification of environmental data. Triangle Wholefoods received Ethical Consumer’s middle rating for environmental reporting. (ref: 214) People Human Rights Policy on palm oil (February 2012) In response to a written request from Ethical Consumer in February 2012 for the company’s policy on palm oil sourcing, Triangle Wholefoods stated that the information required hadn’t changed since last time it was requested by Ethical Consumer. The company was therefore rated according to the palm oil sourcing criteria which it had emailed to Ethical Consumer in August 2011. In response, the company stated: “Where Suma products contain palm oil we insist that our suppliers are members of RSPO (Round Table of Sustainable Palm Oil) or Greenpalm (a recognised certificate trading programme designed to tackle the economic and social problems associated with the production of palm oil).” Previous communication with the company had indicated that it avoided the ingredient where possible. Whilst Ethical Consumer would not usually accept RSPO certification to be adequate to mitigate the human rights and environmental impacts of palm oil production, due to the fact that the company was progressive and taking steps to avoid the negative consequences of palm oil production it was not marked down for sourcing palm oil. (ref: 215) Positive sourcing policy on human rights (January 2010) Suma’s Ethical Policy was found on the company website, www. suma.coop, when searched by Ethical Consumer on 7th January 2010. It stated that the company aimed to avoid buying from countries or companies with proven poor human rights records. (ref: 216) Supply Chain Management Worst ECRA rating for supply chain management (March 2012) In response to a written request from Ethical Consumer in February 2012 for the company’s supply chain management information, Triangle Wholefoods stated that the information required hadn’t changed since last time it was requested by Ethical Consumer. The company was therefore rated according to the sourcing criteria which it had emailed to Ethical Consumer in August 2011. This information included policies such as that it avoided buying from countries or companies with proven poor human rights records and that preferences were given to organic, fair trade and cooperative production. However, the company did not appear to have a management system in place to protect workers’ rights at supplier companies, therefore it received Ethical Consumer’s worst rating in this category. (ref: 214) Politics Company Ethos Best ECRA rating for animal testing policy (March 2012) In response to a written request from Ethical Consumer in February 2012 for the company’s animal testing policy, Triangle Wholefoods stated that the information required hadn’t changed since last time it was requested by Ethical Consumer. According to a questionnaire filled in by Suma for Ethical Consumer in October 2009, Suma, as a Brand, carried the Humane Cosmetics Standard and its ecoleaf Branded cleaning range carried the Household Product standard. It also stated that as a wholesaler Suma did not stock any products which were animal tested. During a telephone call with Ethical Consumer on 17th March 2010, a representative of Triangle Wholefoods stated that the company had a fixed cut off date of 1985. (ref: 215) Vegetarian company (2012) When viewed by Ethical Consumer in March 2012, the Triangle Whoefoods website (www.suma.coop) stated that “Since Suma was established in 1977 we have only stocked vegetarian food with a zero tolerance policy to any goods containing animal products or derivatives.” The wesite added that “Where eggs are an ingredient they are free-range.” (ref: 214) Workers’ Co-operative (February 2012) According to the Triangle Wholefoods website (www.suma.coop), viewed by Ethical Consumer in February 2012, the company was a workers’ co-operative, and operated a truly democratic system of management. “While we do use an elected Management Committee to implement decisions and business plans, the decisions themselves are made at regular General Meetings with the consent of every cooperative member – there’s no chief executive, no managing director and no company chairman. In practice, this means that our day-to-day work is carried out by self-managing teams of employees who are all paid the same wage, and who all enjoy an equal voice and an equal stake in the success of the business.” (ref: 214) Product sustainability regulations and meeting our obligations contained therein Other Sustainability Features * Working with suppliers of own brand pulp derived products and wood products to use material from well managed forests Sustainability features (2012) According to the Suma website in July 2012, the “The Suma Shampoo and Soap range are all made in the UK, are vegan and are completely free of artificial preservatives, colours and fragrances (we use essential oils to scent our products) and we guarantee they have not been the subject of animal testing by Suma or our suppliers.” The company’s shampoos were all also said to be free from: * Bringing to an end all testing on animals of cosmetic and toiletries products, and their ingredients * Being aware of the environmental issues surrounding the use of our own brand products and to taking appropriate action * Ensuring acceptable environmental, health & safety, and employment conditions in own brand product suppliers in developing nations” * Sodium Lauryl Sulphate * Phosphates * E.D.T.A. (Ethylene-Diamine-Tetra-acetic Acid): (This is sometimes used as a substitute for but also in addition to phosphates). * Enzymes * Petroleum-derived Additives: (commonly known as parabens) (ref: 217) Animal Welfare Features (See also ‘Sustainability features’ in Other Sustainability Features above.) Superdrug liquid soap Owned by Superdrug Stores Plc Superdrug Stores Plc, 118 BEDDINGTON LANE,, CROYDON, SURREY, CR0 4TB Superdrug Stores Plc is owned by A.S. Watson & Company Limited owned by Hutchison Whampoa Ltd Hutchison Whampoa Ltd, Hutchison House, 22nd Fl., 10 Harcourt Rd., Hong Kong Superdrug Stores Plc is also owned by Cheung Kong (Holdings) Ltd (50%) Cheung Kong (Holdings) Ltd, 7th Fl., Cheung Kong Center, , 2 Queen’s Rd. Central, Hong Kong, China Environment Environmental Reporting Worst ECRA rating for environmental reporting (July 2012) Superdrug Stores Plc did not respond to Ethical Consumer’s written request in July 2012 for the company’s environmental policy. Some information was found on its website (www.superdrug. com), when viewed by Ethical Consumer in July 2012. “We are committed to: * Responsible energy management and to cost effective energy efficiency throughout all stores and Regional Distribution Centres * Reducing the amount of fuel used by our HGV fleet * Minimising the environmental impact arising from the use of materials and services provided in building, shopfitting, repairing and maintaining premises * Minimising the production of waste, ensuring its safe disposal and maximising recycling wherever practicable * Ensuring good environmental practices amongst our ownbrand suppliers and including environmental issues in buying decisions * Minimising the use of unnecessary packaging; maximising recovery and recycling, with total commitment to packaging waste There was no mention of the sourcing of raw materials or of chemicals and their impact on the environment and as a result, the information was not considered to demonstrate a reasonable understanding of the company’s main impacts. Additionally, there were no dated, quantified targets for reducing these impacts over time. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 218) Climate Change High Climate Impact Sector - heavy oil refineries (November 2007) According to the Hutchinson Whampoa website (www.hutchinsonwhampoa.com) viewed on 12th November 2007, Husky Energy was involved in heavy oil refining. Husky Energy’s assets were said to include: “the Lloydminster heavy oil upgrader with a processing capacity of 77,000 barrels of oil per day, to be increased to 82,000 barrels per day in 2007, a 2,050-kilometre pipeline system, a 50 per cent interest in a 215-megawatt cogeneration facility at Lloydminster and a 90-megawatt power generation facility at Rainbow Lake, Alberta, 33 billion cubic feet of gas storage capacity, treating and gathering systems, and commodity marketing.” (ref: 219) Oil and gas operations (November 2007) According to the website www.hutchison-whampoa.com viewed in November 2007, Husky Energy had a range of fossil fuel operations around the world, including light and heavy oil processing units in Canada and oil and gas drilling interests in China and Indonesia. The company was also said to run several oil pipelines in North America and to market its fossil fuel products to a range of end users, mainly in the Americas. (ref: 219) High Climate Impact Sector - oil pipelines and energy generation (November 2007) According to Hutchinson Whampoa Ltd’s website, accessed on 12th November 2007, Husky Energy conducted natural gas exploration in Western Canada and owned and operated pipeline systems and a heavy oil upgrading facility at Lloydminster, Saskatchewan. According to the website, Husky Energy held a majority stake in the ownership and operating of a 1,900 kilometre heavy oil pipeline system in Lloydminster. The website also stated that Husky Energy, with a 50% joint venture partner, operated a 215-megawatt natural-gas-fired cogeneration factility on the Lloydminster upgrader site. (ref: 219) Pollution & Toxics No policy on toxics (January 2010) In January 2010 ECRA searched the Hutchison company website but could find no evidence of a policy on toxic chemicals and no reply was received after requesting the information via email. As a producer of mobile phones ECRA believed this policy was a necessary part of their CSR reporting. (ref: 220) Banned ingredient found in medicine (January 2007) According to the January/March issue of the Food Magazine (issue 76), a survey of 41 children’s medicines found that Superdrug’s Chesty Cough Syrup contained azo dyes. The magazine stated that these dyes were ‘banned from food and drink specifically designed for consumption by children under three years old [as they] may cause allergic reactions, including asthma’. (ref: 121) Operations in Canadian tar sands (2007) According to the Husky Energy website, www.huskyenergy.com, viewed by Ethical Consumer in May 2009, in 2007 the company completed preliminary site work for the Sunrise Oil Sands Project in Alberta, Canada. According to a report by the World Wildlife Fund and the Co-operative Group “Unconventional Oil: scraping the bottom of the barrel?” published in May 2008, the Canadian oil sands developments were extremely carbon intensive and thereby a major contributor to climate change; resulted in the deforestation of large areas of boreal forest and the usage of massive amounts of water; resulted in the creation of tailing ponds which were highly toxic, and raised concerns over the health impacts on the First Nations communities that lived downstream from the oil sands. This threatened the viability of their continued presence on their traditional homelands. (ref: 221) Whampoa Ltd) website (www1.parknshop.com/WebShop/ CompanyOverview.do) viewed January 2010 the company was a leading supermarket chain in Hong Kong and Macau and imported cosmetics and general household merchandise. The company did not have an animal testing policy and was therefore assumed to retail animal tested products. (ref: 223) Factory farming Company sells factory farmed meat, poultry and live fish. (20 January 2010) According to ParkNShop’s website (www1.parknshop.com/ WebShop/CompanyOverview.do) viewed January 2010 the company was a leading supermarket chain in Hong Kong and Macau and was therefore assumed to sell factory farmed meat and poultry. In addition the website stated that the supermarket sold live fish. (ref: 223) Animal Rights (See also ‘Company sells factory farmed meat, poultry and live fish.’ in Factory farming above.) Habitats & Resources People (See also ‘Operations in Canadian tar sands’ in Pollution & Toxics above.) No policy on palm oil sourcing (July 2012) In June 2012 Ethical Consumer emailed Superdrug Stores plc and attached a questionnaire that included a request for the company’s policy in relation to palm oil sourcing. The company did not respond, no related information could be found on its website, www.superdrug.com, and it was not listed as a member of the Roundtable on Sustainable Palm Oil on that organisations’s website. Superdrug was a major retailer of products containing palm oil. Due to the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 218) Human Rights No policy on sourcing from the DRC (2009) In December 2009 ECRA searched the Hutchison company website for a policy on sourcing minerals used in mobile phone production from the DRC, a country renowned for human rights abuses in the extractive industries with profits from them being used to fund armed groups. This trade also has dire environmental consequenses generating a massive amount of waste which contains toxic and even radioactive substances which pollute the environment and water supplies and affect local communities. ECRA could find no such policy, and therefore it was assumed that the company was taking no precautions to avoid this trade. An email was sent to the company requesting information on the subject but no reply was received. (ref: 222) Workers’ Rights Animals Animal Testing Worst rating for animal testing policy (2012) In July 2012 Ethical Consumer viewed the Superdrug Stores Plc company website, www.superdrug.com, to obtain information on the company’s animal testing policy. ‘Superdrug’s Charter Against Animal Testing’ stated: “We and our own brand manufacturers do not commission animal testing on any Superdrug own brand products or ingredients. Our own brand cosmetics, toiletry and household ranges have not been tested on animals by us or by our own brand manufacturers.” A fixed cut off date was not mentioned. No mention was made of whether the company used ingredients that had been tested on animals by other companies, and the sector was one in which animal testing was common. The company therefore received Ethical Consumer’s worst rating for animal testing. (ref: 218) Company retails animal tested products (20 January 2010) According to ParkNShop’s (subsidiary of Hutchinson (See also ‘No policy on sourcing from the DRC’ in Habitats & Resources above.) (See also ‘Operations in Canadian tar sands’ in Pollution & Toxics above.) No policy on sourcing from the DRC (January 2010) In December 2009 ECRA searched the Cheung Kong company website for a policy on sourcing minerals used in mobile phone production from the DRC, a country renowned for human rights abuses in the extractive industries with profits from them being used to fund armed groups. ECRA could find no such policy. An email was sent to the company requesting information on the subject but no reply was received. (ref: 224) Criticised for use of ‘Workfare’ labour (September 2011) According to an article published on the Corporate Watch website, www.corporatewatch.org.uk, ‘It’s exploitation and it’s repellent’: Retailers, councils and charities benefiting from Workfare’ dated September 26th 2011, Savers Health and Beauty (a subsidairy of Hutchinson Whampoa Ltd) had been named as a major retailer where unemployed people were being sent to work without pay by Jobcentres and employment provider companies. Some were working for up to six months while receiving unemployment benefit of £67.50 a week or less. The company did not reply to repeated requests by Corporate Watch for comment. A spokesperson for the Boycott Workfare campaign, which was encouraging workplaces to pledge not to take people on unpaid work placements organised by Jobcentres or subcontracted provider companies, said: “Huge companies making billions are profiting from people being made to work without pay while in fear of losing everything. These companies can afford to hire and pay staff yet perversely they are increasingly reliant on a workforce subsidised by taxpayers. Councils are replacing paid positions with Workfare and charities are replacing paid and voluntary vacancies with unpaid mandatory workers. Workfare as a policy doesn’t make sense in this economic climate. We want to see a fair day’s pay for a fair day’s work.” (ref: 225) Supply Chain Management Worst ECRA rating for supply chain policy (July 2012) Superdrug Stores Plc did not respond to Ethical Consumer’s written request in July 2012 for the company’s supply chain management policy. Nor could this information be found on its website (www. superdrug.com), when viewed by Ethical Consumer in July 2012, other than the following brief statement: “we encourage all suppliers to sign up to BSCI code of conduct regarding ethical working practices”. This was not considered to be a firm commitment to ensure suppliers complied with this code, and the BSCI code was not reproduced on the Superdrug website. As a result the company received Ethical Consumer’s worst rating in this category. (ref: 218) Irresponsible Marketing (See also ‘Banned ingredient found in medicine’ in Pollution & Toxics above.) Mislabelled fish (2007) According to the 31st January issue of CSR Asia Weekly, in January 2007, Hong Kong’s ParknShop supermarket giant had sold thousands of customers oilfish labelled as codfish, leading to claims by many to have suffered from diarrhoea as a result (due to the high content of indigestible oil). It said the company had said it had had no intention to mislead customers and had bought the fish in good faith from Indonesia, with what it thought was reliable certification. However, the Indonoesian Consulate in Hong Kong had announced that Indonesia did not export oilfish for human consumption and was investigating an error made (not necessarily by the supermarket) in the translation on the health certificate of fish sold in Hong Kong by ParknShop. (ref: 226) Politics Boycott Call Boycott call of whole company group (May 2009) According to Ethical Consumer issue 119, dated June 2009, the organisation had called a boycott of Hutchinson Whampoa Ltd and all its subsidiaries because of its ownership of Husky Energy Inc, which had substantial involvement in the tar sands projects in Alberta, Canada. (ref: 221) Boycott call of whole company group (June 2009) According to Ethical Consumer issue 119, dated June 2009, the organisation had called a boycott of Cheung Kong (Holdings) Ltd and all its subsidiaries because of its ownership of Hutchinson Whampoa Ltd, which owned Husky Energy Inc, which had substantial involvement in the oil sands projects in Alberta, Canada. (ref: 221) Anti-Social Finance Fined for price fixing (January 2012) According to an article on Edmonton Journal website, www. edmontonjournal.com, viewed by Ethical Consumer in January 2012, perfume distributor Marrionnaud Parfumeries along with thirteen French perfume giants had been fined 40 million Euros for colluding to keep prices high between 1997 and 2000. Bermuda, British Virgin Islands, Cayman Islands, Hong Kong and Jersey. The company’s website also stated that it had operations in Luxembourg and Panama. (ref: 77) Excessive director’s pay (2012) According to the Hutchison Whampoa Annual Report 2011, several of the companies directors were paid amounts over £1 million in 2011. Susan CHOW WOO Mo Fong was paid over 170 million HK Dollars (roughly £14 million) and Canning FOK Kin Ning was paid over 65 million HKD (approximately £5 million). (ref: 227) Urtekram brown sugar shampoo, liquid soap [F,O] Owned by Urtekram International A/S Urtekram International A/S, Klostermarken 20, DK-9550 Mariager, DENMARK Urtekram International A/S is owned by Urtekram A/S which is owned by Green Ventures ApS Environment Environmental Reporting Worst ECRA rating for environmental report (2012) The Urtekram website (www.urtekram.com) was searched by Ethical Consumer in March 2012 for the company’s environmental policy or report. The company stated that it used only ship, train or truck to transport its foodstuffs, that it tried to minimise its CO2 emissions, all its energy was from renewable sources and that it conformed to the ISO14001 standard. However, it did not appear to have a publicly available environmental report with dated, quantified future targets with the intention of minimising its environmental impacts. As a result, the company received Ethical Consumer’s worst rating in this category. (ref: 228) Climate Change No palm oil policy (2012) Urtekram did not respond to Ethical Consumer’s written request in February 2012 for its palm oil sourcing policy and no related information could be found on its website, www.urtekram.com. Ethical Consumer noted that the company produced certified organic products, however, this did not require all of the ingredients to be organic, and non-organic ‘palm oil products’ were listed as an ingredient on a number of its products. Due to the negative effects of palm oil production world wide, the company lost half marks in the categories of climate change, habitat destruction and human rights. (ref: 228) In January 2012 a Parisian court of appeal upheld the fine imposed on the companies in 2006 by the French competition watchdog. Habitats & Resources The Watchdog had said that the companies involved had reached illicit agreements on price fixing; enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance. Human Rights In the original ruling the price watchdog had said that the companies had arrangements with the distributors and that the agreements saw ‘price police’ ensuring distributors were sticking by the deal. The watchdog stated that the companies had applied pressure and threats of commercial reprisals for those distributors that refused to apply the prices imposed by the brands. (ref: 58) Subsidiaries in seven tax havens (2012) According to the Hutchison Whampoa entry on www.hoovers. com, viewed in July 2012, the company had subsidiaries in the following territories regarded by Ethical Consumer at the time of writing as being tax havens: (See also ‘No palm oil policy’ in Climate Change above.) People (See also ‘No palm oil policy’ in Climate Change above.) Supply Chain Management Worst ECRA rating for supply chain management (2012) Ethical Consumer searched the Urtekram website (www.urtekram. com) in March 2012 for the company’s supply chain policy or code of conduct. No such document could be found. Although all the company’s products were certified organic and some Fairtrade, this did not guarantee protection of workers’ rights throughout the supply chain. Therefore, Ethical Consumer gave the company a worst rating in this category. (ref: 228) Politics People Company Ethos Human Rights Cruelty free products (2012) According to the online version of the BUAV Little Book of Cruelty Free, viewed in March 2012, Urtekram products carried the BUAV Humane Cosmetics Standard. (ref: 229) Operations in oppressive regimes (July 2012) Weleda’s Annual Sustainability Report 2011 was viewed by Ethical Consumer in July 2012. The report listed on page 46 the countries where the company had operations. The list included Russia and India. Both countries at the time of writing were considered by Ethical Consumer to be governed by oppressive regimes. (ref: 231) Best ECRA rating for animal testing policy (March 2010) Ethical Consumer searched the Urtekram website, www.urtekram. dk, in February 2010. The website stated that all the company’s products met the Humane Cosmetics Standard. A certificate was available for download which supported this claim that read as follows: ‘Urtekram has been approved by the ECEAE (European Coalition to End Animal Experiments) which manages the Humane Cosmetics Standard in Europe under the Humane Cosmetics Standard for the period of one year commencing January 2010. According to Naturewatch the company also had a fixed cut off date of 1998. Approval applied to all Urtekram ownlabel cosmetics and toiletries. Urtekram was therefore awarded Ethical Consumer’s best rating for animal testing. (ref: 230) Product sustainability Organic Product Fairtrade and organic product (July 2012) According to the Urtekram website viewed in July 2012, Urtekram brown sugar shampoo is certified by the Fairtrade Foundation. The sugar is Fairtrade and 10% of the ingredients are organic certified by Ecocert. (ref: 230) Fairtrade Product (See also ‘Fairtrade and organic product’ in Organic Product above.) Positive palm oil policy (July 2012) Ethical Consumer searched Weleda’s website, www.weleda.co.uk in July 2012 for its palm oil policy. Under its FAQ’s sections the company stated that ‘at Weleda we do use a small amount of palm oil in our natural soaps and for the isolation of a fatty acid in our Aloe Vera Lotion. Our palm oil is fairly traded and ethically sourced (from sustainable sources) from managed forests in Columbia, and is certified by Ecocert’. Ethical Consumer considered this to be a positive palm oil policy. (ref: 232) Supply Chain Management Worst ECRA rating for supply chain policy (July 2012) In June 2012 Weleda was sent a questionnaire requesting the company’s supply chain management policy. No response was received. A search was made by Ethical Consumer and found the company’s Annual Sustainability Report 2011 which was published in May 2012 and stated that every employee had been handed a code of conduct in 2010. The code of conduct according to Weleda’s report set basic legal standards. There was no mention of whether these standards included workers rights. As the document was not publically available it could not be assessed by Ethical Consumer. Owned by Weleda AG The company was a member of Union for Ethical Biotrade (UEBT), a non-profit association that promoted the “Sourcing with Respect” of ingredients. However in a download of the standards there were no provisions for workers rights. Weleda AG, Dychweg 14, 4144 Arlesheim, Basel-Land, Switzerland Weleda did not disclose its factories and had no information on planned audits of its sites on its websites. Environment Due to the lack of a supply chain policy available to assess, Weleda received Ethical Consumer worst rating for supply chain management. (ref: 231) Weleda deodorant [S,A,O] Environmental Reporting Worst ECRA rating for environmental reporting (2012) In June 2012 Weleda was sent a questionnaire requesting the company’s environmental report. No response was received. A search was made by Ethical Consumer and found the company’s Annual Sustainability Report 2011 which was published in May 2012. The report contained a page on goals and measures of the Weleda sustainability strategy, however the goals were not dated, some were quantified, but there were no baseline figures for comparison. The report did show some reasonable understanding of the company’s main environmental impacts, including water, packaging, and energy use. In 2011, the company joined the Union for Ethical Biotrade (UEBT), a non-profit association that promoted the “Sourcing with Respect” of ingredients that come from native biodiversity. Weleda also introduced a group wide biodiversity directive, binding ecological standards for the evaluation of its suppliers, and training for the fair dispensation of earnings from using bio raw materials between the users and the countries the material comes from. However, due to the fact there were no quantified dated targets and the environmental data that was available was not independently verified the company received a worst rating for environmental reporting. (ref: 231) Politics Anti-Social Finance Subsidaries in tax havens (July 2012) Weleda’s Annual Sustainability Report 2011 was viewed by Ethical Consumer in July 2012. The report listed on page 46 the countries where the company had subsidaries. The list included Luxembourg, Switzerland and Hong Kong. These territories at the time of writing were considered by Ethical Consumer to be tax havens. (ref: 231) Company Ethos Company ethos (July 2012) According to the Weleda website viewed in July 2012, all its products were suitable for vegetarians and they were all Demeter certified. The Demeter Certification is fully recognised by DEFRA (Department for Environment, Food and Rural Affairs) as an organic certification. (ref: 233) Product sustainability Organic Product Product contained organic/biodynamic ingredients (2012) According to the Weleda website (www.weleda.co.uk), visited in July 2012, all of Weleda’s products used natural ingredients which had been grown to biodynamic Demeter standards or sourced from organic farms. (ref: 234) Other Sustainability Features Product sustainability Low on Toxics (July 2012) According to the Weleda website the company did not use the following chemicals which potentially pose a risk to the environment and human health: Organic Product * Parabens or “-paraben” Organic and vegan product (July 2012) According to the Yaoh website viewed in July 2012 , “All our products carry the Vegan Society trade mark. The ingredients for our bodycare range are : 100% certified organic hemp seed oil.” (ref: 235) * polyethylene glycol “PEG” and “-eth” Other Sustainability Features * Petrochemicals Toxic free (July 2012) According to the Yaoh website the company did not use the following chemicals which potentially pose a risk to the environment and human health: * Synthetic Fragrance and Dyes This product therefore received a positive mark under ECRA’s product sustainability category. (ref: 232) Animal Welfare Features Suitable for vegans (2012) According to the Weleda website visited in July 2012 (www. weleda.co.uk), the company’s deodorant products were all suitable for vegans. (ref: 234) * Synthetic Fragrance and Dyes * Methylchloroisothiazolinone and Methylisothiazolinone * Parabens or “-paraben” * “PEG” and “-eth” * Petrochemicals Yaoh organic hemp moisturiser [A,O] Owned by Yaoh Ltd Yaoh Ltd, Yaoh, PO Box 333, Bristol, BS99 1NF Environment Environmental Reporting Best rating for environmental reporting (June 2012) In June 2012 Ethical Consumer sent Yoah Ltd a questionnaire regarding its environmental reporting. No response was received. Ethical Consumer searched its website, www.yoah.co.uk, for this information. No report could be found, however its website stated its produced vegan organic products. As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for environmental reporting. (ref: 235) People Human Rights No palm oil used (July 2012) The Yaoh brochure was downloaded from the company’s website, www.yaoh.co.uk, in July 2012. This stated that the company did not use palm oil, which was considered by Ethical Consumer to be a positive policy. (ref: 236) Supply Chain Management Best rating for supply chain policy (June 2012) In June 2012 Ethical Consumer sent Yoah Ltd a questionnaire regarding its supply chain management. No response was received. Ethical Consumer searched its website, www.yoah.co.uk, for this information. No such information could be found, however its website stated its produced vegan organic products in Bath. As a company with a turnover under £8m which demonstrated a commitment to environmental and social sustainability in its supply chain the company was awarded Ethical Consumer’s best rating for its supply chain management. (ref: 235) Politics Company Ethos Company Ethos (July 2012) According to the Yaoh website viewed July 2012, “All our products carry the Vegan Society trade mark.” The company were also awarded an extra mark as an innovative environmental alternative as they made natural products. (ref: 237) This product therefore received a positive mark under ECRA’s product sustainability category. (ref: 235) Animal Welfare Features (See also ‘Organic and vegan product’ in Organic Product above.) 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Independent, The:Without consent: how drugs companies exploit Indian ‘guinea pigs’ (14 November 2011) (565100) 12 - Business & Human Rights Resource Centre:Russia probes “illegal” tests of Glaxo vaccines (2 March 2007) (516044) 13 - GlaxoSmithKline plc Corporate Communications:3rd Party Code of Conduct (28 June 2012) (1321228) 14 - Business & Human Rights Resource Centre:Drug company ‘hid’ suicide link (29 January 2007) (516047) 15 - BBC News Website www.bbc.co.uk:http://www.bbc.co.uk/ news/world-us-canada-18673220 (3 July 2012) (1321537) 16 - Sky News (www.sky.com):GSK fined over vaccine trial in Argentina (26 January 2012) (1320463) 17 - SHAC website - www.shac.net:http://www.shac.net/ news/2009/march/22.html (21 April 2009) (532978) 18 - International Chamber of Commerce ICC www.iccwbo.org: ICC members list (20 April 2009) (532970) 19 - New Scientist website www.newscientist.com:Revealed – the capitalist network that runs the world (24 October 2011) (566702) 20 - USCIB Members List www.uscib.org:www.uscib.org (20 July 2007) (506784) 21 - Christian Aid News:Autumn 2009 issue (2009) (538069) 22 - BBC News Website www.bbc.co.uk:Major UK companies cut secret tax deals in Luxembourg (11 May 2012) (924257) 23 - Church & Dwight Co Inc Corporate Communications:www. churchdwight.com (27 June 2012) (1321174) 24 - Church & Dwight Co Inc Corporate Communications:Annual Report 2011 (2011) (1321720) 25 - PETA - Companies that test on animals:CompaniesDoTest. pdf (27 June 2012) (1321209) 26 - Executive Pay Watch Database:www.aflcio.org (28 June 2012) (1321235) 27 - Avon Products Inc Corporate Communications: Questionnaire (4 July 2012) (1321566) 28 - Huffington Post:Avon, Estee Lauder And Mary Kay Allegedly Testing Makeup On Animals (21 February 2012) (920904) 29 - Daily Mail:Avon withdraws animal test claims from website after complaints (6 March 2012) (921441) 30 - Avon Products Inc Corporate Communications:SEC filings Exhibit 21 (29 February 2012) (1321036) 31 - Uncaged website www.uncaged.co.uk:Uncaged website - boycott list (20 February 2012) (920784) 32 - USCIB Members List www.uscib.org:Members list (31 March 2011) (553644) 33 - Star Tribune:Avon Products CEO Andrea Jung gets 41 percent more pay for 2010 with bigger performance bonus (16 Ma (553651) 34 - Apple Inc Corporate Communications:Proxy statement 2010 (12 January 2011) (549663) 35 - W S Badger Corporate Communications:www.badgerbalm. com (26 June 2012) (1321071) 36 - Bentley Organics Corporate Communications:www. bentleyorganic.com (27 June 2012) (1321184) 37 - L’Oréal Corporate Communications:http://www. sustainabledevelopment.loreal.com/DD/default.aspx (14 July 2012) (1322143) 38 - Bloomberg Businessweek:L’Oréal Group (16 July 2012) (1322180) 39 - Ecologist, The:December/January 2008 (11 April 2008) (521978) 40 - Campaign for Safe Cosmetics:A Poison Kiss: the Problem of Lead in Lipstick (October 2007) (515216) 41 - Uncaged Campaign Bulletin:No. 46 Spring Campaign Bulletin (2009) (539902) 42 - L’Oréal Corporate Communications:www.loreal.com (1 March 2010) (540350) 43 - Nestlé SA Corporate Communications:www.nestle.com (8 January 2010) (538685) 44 - Nestlé SA Corporate Communications:Creating Shared Value report 2009 (2009) (562531) 45 - Food Magazine:Issue 84 (March 2009) (534717) 46 - www.columbiasolidarity.org.uk:24 August 2009 (537917) 47 - Ecologist, The:September 2007 (517179) 48 - Health & Safety Exec:Nestle fined £180,000 after safety failures led to worker’s death (9 March 2012) (922227) 49 - Times Newspaper/Times Online www.timesonline. co.uk:French cosmetics giant L’Oreal guilty of racial discrimination (25 June 2009) (534354) 50 - Multinational Monitor:Multinational Monitor (November 2008) (532616) 51 - Body Shop International plc Corporate Communications:http://www.thebodyshop.co.uk/values/ AgainstAnimalTesting.aspx (14 July 2012) (1322148) 52 - Baby Milk Action Update:Issue 43 (December 2010) (557664) 53 - Uncaged website www.uncaged.co.uk:Uncaged website - boycott list (16 August 2011) (560739) 54 - Uncaged website www.uncaged.co.uk:www.uncaged.co.uk (8 January 2010) (538689) 55 - Baby Milk Action www.babymilkaction.org:Boycott list (8 January 2010) (538690) 56 - World Business Council for Sustainable Development (WBCSD) www.wbcsd.org:List of members January 2012 (19 January 2012) (567058) 57 - Guardian Unlimited / Guardian website www.guardian. co.uk:Liliane Bettencourt and the murky history of a makeup monarchy (9 July 2010) (545468) 58 - Edmonton Journal:Chanel, Christian Dior and L’Oreal fined for keeping prices high (January 2012) (920226) 59 - Alliance Boots GmbH Corporate Communications:Alliamce Boots Corporate Social Responsibility Report 2010/2011 (2 July 2012) (1321480) 60 - ENDS Report:September 2008 / Issue 404 (September 2008) (531231) 61 - Boots UK Ltd Corporate Communications:Our position on the use of palm oil, other vegetable oils and the derivatives (January 2010) (1322153) 62 - Environment News Service:50 Dirtiest US Power Plants Named (26 July 2007) (508738) 63 - Boots UK Ltd Corporate Communications:Our position on nanotechnology and nanoparticles (April 2009) (539883) 64 - Wall Street Journal:Toxic Factories Take Toll on China’s Labor Force (15 January 2008) (550620) 65 - Toys ‘R’ Us Inc Corporate Communications:Emailed statement, September 2009 (7 September 2009) (536450) 66 - Naturewatch Compassionate Shopping Guide:11th Edition (2008) (520872) 67 - Alliance Boots GmbH Corporate Communications:www. allianceboots.com (6 July 2012) (1321651) 68 - Channel 4:www.channel4.com (4 January 2008) (538057) 69 - Boots UK Ltd Corporate Communications:www.boots.com (16 November 2009) (538042) 70 - Toys ‘R’ Us Inc Corporate Communications:SEC Form 10-K for period ending Jan 31 2009 (31 March 2009) (536455) 71 - Indymedia - www.indymedia.org.uk:Mayday Workfare Demos Shut Ox St. Stores - report (1 May 2012) (923603) 72 - BBC News Website www.bbc.co.uk:Walgreens sued over ‘race bias’ (8 March 2007) (310158) 73 - Guardian, The:Private equity owned Boots ends ethical pledge (13 June 2009) (534016) 74 - TASC Corporate Communications:www.tasc.com (10 February 2010) (539875) 75 - Actionaid:Tax responsibility (14 July 2011) (558675) 76 - Daily Mail:The great tax heist (December 2010) (1322159) 77 - Hoovers 2012:Hoovers 2012 (2012) (566068) 78 - Caurnie Soap Co Corporate Communications:http://caurnie. com (27 June 2012) (1321203) 79 - Caurnie Soap Co Corporate Communications:Telephone call with company (11 March 2010) (541424) 80 - Clarins S.A. Corporate Communications:http://int.clarins. com/ (28 June 2012) (1321226) 81 - Clarins S.A. Corporate Communications:www.clarins.co.uk (10 July 2012) (1321751) 82 - Clarins S.A. Corporate Communications:Responsible Development: The Group’s Commitments (28 June 2012) (1321230) 83 - ECRA SA major retailer visit 21 June 2012:27 June 2012 (1321083) 84 - Lornamead UK Ltd Corporate Communications:www. lornamead.com (25 July 2012) (1322673) 85 - Unilever Corporate Communications:Unilever Sustainable Living Plan (November 2010) (562302) 86 - Unilever Corporate Communications:www.unilever.com (3 July 2012) (1321527) 87 - Rainforest Action Network:www.ran.org (2008) (537460) 88 - Environmental News Service www.ens-newswire.com: Unilever Fined for Polluting California Air With Deodorant Spray (12 February 2010) (539931) 89 - Ecologist, The (online):UK companies linked to devastating Indian mine (19 June 2009) (553085) 90 - Economist:Running Dry (21 August 2008) (528731) 91 - Humane Society of the United States:Tell Ben & Jerry’s to help animals (23 August 2006) (301321) 92 - Unilever Corporate Communications:www.unilever.com (15 September 2011) (562071) 93 - ECRA shop survey:ECRA shop survey (25 November 2008) (529583) 94 - Simple Soap Shop Survey:9 July 2007 (506140) 95 - Rettet den Regenwald eV:The bloody products from the house of Unilever (23 August 2011) (922979) 96 - Beigel & Beigel Food (1985) Ltd Corporate Communications:Hoovers factsheet www.hoovers.com (26 February 2010) (540332) 97 - Global Witness:Hot Chocolate: How Cocoa Fuelled the Conflict in Cote D’Ivoire (June 2007) (512654) 98 - SOMO Reports:Unilever - overview of controversial business practices 2010 (May 2011) (564222) 99 - SOMO Reports:Sustainability Issues in the Tea Sector (June 2008) (528672) 100 - Wall Street Journal:Chinese Parents File Milk Lawsuit (1 October 2008) (528726) 101 - World Economic Forum website www.weforum.org: Members list (1 August 2012) (1322900) 102 - Dirt Diggers Digest newsletter:Rebuffed by Supreme Court, NAM complies with Disclosure Law-For Now (15 June 2008) (524563) 103 - Unilever Corporate Communications:Annual Report 2011 (4 July 2012) (1321552) 104 - Food Manufacturers:http://www.foodmanufacture.co.uk/ Business-News/Unilever-ceo-s-executive-greed-slammedas-Unite-strik (920709) 105 - Actionaid:FTSE 100 tax haven tracker (October 2011) (563594) 106 - WALA Heilmittel GmbH Corporate Communications:www. wala.de (3 July 2012) (1321509) 107 - Dr. Hauschka Skin Care, Inc. Corporate Communications: www.drhauschka.co.uk (22 June 2012) (1320940) 108 - Dr. Hauschka Skin Care, Inc. Corporate Communications: www.drhauschka.co.uk (3 March 2010) (540434) 109 - Dr Hauschka Skin Care Corporate Communications:www. drhauschka.co.uk (4 July 2007) (505628) 110 - Essential Care (Organics) Ltd Corporate Communications: ECRA company questionnaire (28 June 2012) (1321518) 111 - Essential Care (Organics) Ltd Corporate Communications: www.essential-care.co.uk (28 June 2012) (1321265) 112 - Estée Lauder Companies Inc Corporate Communications: www.elcompanies.com (28 June 2012) (1321269) 113 - Estée Lauder Companies Inc Corporate Communications: Corporate Reposnsibility Report (2010) (1321272) 114 - Estée Lauder Companies Inc Corporate Communications: Nanotechnology factsheet (18 July 2012) (1322362) 115 - Uncaged Campaign Bulletin:Spring 2007, number 41 (May 2007) (507504) 116 - Naturewatch Compassionate Shopping Guide:12th edition (2010) (545970) 117 - UPI:Model sues Estee Lauder over photo (3 June 2011) (1322366) 118 - Uncaged website www.uncaged.co.uk:Uncgaed website - boycott list (3 July 2012) (1321489) 119 - Stop the JNF:http://www.stopthejnf.org/index.html (13 June 2011) (555824) 120 - Johnson & Johnson Corporate Communications:www.jnj. com (21 June 2012) (1320801) 121 - Food Magazine:Issue 76 (January 2007) (312966) 122 - Johnson & Johnson Corporate Communications: Johnson & Johnson Guidelines: Responsible Use of Nanotechnology (December 2010) (1322135) 123 - Ecologist, The:Volume 37, Issue 8 (October 2007) (540419) 124 - Slaughtering the Amazon, Greenpeace International:June 2009 (534702) 125 - Benecol:www.benecol.co.uk/ (31 October 2008) (528806) 126 - New Internationalist:Johnson & Johnson shuns poor people with HIV (1 December 2011) (565397) 127 - Johnson & Johnson Corporate Communications:10-k ex 21 (January 2012) (1321266) 128 - TV Guide:Farrow attacks Spielberg, Olympic sponsors on Darfur (29 March 2007) (311315) 129 - Bloomberg News:J&J ordered to pay $1.1 billion penalty over Risperdal (12 April 2012) (1320424) 130 - Johnson & Johnson Corporate Communications: Genetically Modified Organisms (November 2008) (529637) 131 - McNeil Nutritionals Corporate Communications:Email from company (25 November 2008) (529566) 132 - Uncaged website www.uncaged.co.uk:Uncaged website - boycott list (15 May 2009) (533641) 133 - American Chamber of Commerce (Amcham) EU www. amchameu.be:Members List (30 January 2012) (920027) 134 - World Business Council for Sustainable Development (WBCSD) www.wbcsd.org:Members List (30 November 2010) (915521) 135 - National Foreign Trade Council www.nftc.org:www.nftc.org (25 May 2007) (502550) 136 - BBC News Website www.bbc.co.uk:EU launches drug firms collusion investigation (21 October 2011) (563422) 137 - Faith Products Ltd Corporate Communications:ECRA Company Questionnaire (1 March 2012) (921872) 138 - Faith Products Ltd Corporate Communications:www. faithinnature.co.uk (13 February 2012) (920620) 139 - Procter & Gamble Company Corporate Communications: Sustainability Report (2011) (921454) 140 - Procter & Gamble Company Corporate Communications: www.pg.com (7 March 2012) (921483) 141 - Duracell Inc Corporate Communications:2 February 2011 (550639) 142 - Uncaged website www.uncaged.co.uk:P&G’s Nanotechnology (16 July 2012) (1322206) 143 - GoodGuide - www.goodguide.com:20 March 2012 (922138) 144 - Greenpeace:Tissue product Guide (September 2007) (538805) 145 - Procter & Gamble Company Corporate Communications: www.iams.com (7 March 2012) (921516) 146 - Earth Island Journal:Summer 2007, Vol. 22 No.2 (July 2007) (505833) 147 - Dirt Diggers Digest newsletter:Mubarak’s Foreign Corporate Backers (3 February 2011) (550696) 148 - Procter & Gamble Company Corporate Communications: Sustainability Report 2009 (2009) (538717) 149 - Procter & Gamble Company Corporate Communications:#www.pgsupplier.com (7 March 2012) (921490) 150 - BBC News Website www.bbc.co.uk:Procter & Gamble recalls 120,000 Vicks nasal sprays (20 November 2009) (538096) 151 - PETA websites www.peta.org www.stopanimaltests. com www.iamscruelty.com www.askcarla.com:http://www. iamscruelty.com (12 March 2012) (921736) 152 - Hurtful Essences www.hurtfulessences.org:www. hurtfulessences.org (12 March 2012) (921733) 153 - USCIB Members List www.uscib.org:Members list (22 February 2012) (920992) 154 - Guardian, The:Unilever and Procter & Gamble fined £280m for price fixing (4 October 2011) (562961) 155 - Green People Company Ltd Corporate Communications: Quesionnaire Cosmetics (28 June 2012) (1321240) 156 - Green People Company Ltd Corporate Communications: www.greenpeople.co.uk (1 February 2010) (539748) 157 - Honesty Cosmetics Corporate Communications:www. honestycosmetics.co.uk (28 June 2012) (1321250) 158 - BUAV website www.buav.org:List of Go Cruelty-Free Companies www.buav.org/gocrueltyfree/ukcompanies.html (10 August 2005) (265636) 159 - Animal Free Shopper:9th edition 2010 (21 March 2012) (922188) 160 - PZ Cussons PLC Corporate Communications:www. pzcussons.com (24 February 2010) (540173) 161 - ENDS Report:411 (April 2009) (536996) 162 - Inika Corporate Communications:www.inikacosmetics. co.uk (28 June 2012) (1321262) 163 - Hain Celestial Group Inc Corporate Communications:2011 Corporate Social Responsibility Report (11 July 2012) (1321820) 164 - Hain Celestial Group Inc Corporate Communications:www. hain-celestial.com (20 June 2012) (1320672) 165 - Hain Pure Protein Corporation Corporate Communications:www.hainppc.com (20 June 2012) (1320689) 166 - Hain Celestial Group Inc Corporate Communications:Hain Celestial Group Inc (21 January 2010) (539411) 167 - JASON Natural Products Corporate Communications: www.jason-natural.com (16 February 2010) (539927) 168 - Kao Corporation (Japan) Corporate Communications: www.kao.com (2 July 2012) (1321476) 169 - Kao Corporation (Japan) Corporate Communications: Research & Development and Intellectual Property (9 March 2010) (540631) 170 - Rainbow Wholefoods Corporate Communications:ECRA company questionnaire (27 June 2012) (1321590) 171 - Laverana GmbH & Co KG Corporate Communications: www.lavera.de (22 June 2012) (1320887) 172 - Laverana GmbH & Co KG Corporate Communications: www.lavera.com (16 July 2012) (1322182) 173 - Laverana GmbH & Co KG Corporate Communications: www.lavera.co.uk (17 February 2010) (539968) 174 - Laverana GmbH & Co KG Corporate Communications: www.pravera.co.uk (12 July 2012) (1321935) 175 - Little Satsuma Corporate Communications:www. littlesatsuma.com (3 July 2012) (1321508) 176 - Living Nature Natural Products Ltd Corporate Communications:www.livingnature.com (3 July 2012) (1321526) 177 - Lush Cosmetics Ltd Corporate Communications:Email with attachments from Hilary Jones (31 July 2012) (1322828) 178 - Lush Cosmetics Ltd Corporate Communications:www. lush.com (10 July 2012) (1321770) 179 - Lush Ltd Corporate Communications:Questionnaire from company (19 February 2010) (540661) 180 - Lush Cosmetics Ltd Corporate Communications:www. lush.co.uk (10 March 2010) (540648) 181 - Revlon Inc Corporate Communications:http://phx. corporate-ir.net/phoenix.zhtml?c=81595&p=irol-govmanage (22 June 2012) (1320904) 182 - AM General LLC Corporate Communications:www. amgeneral.com (1 June 2007) (502864) 183 - MacAndrews & Forbes Holdings Inc Corporate Communications:www.macandrewsandforbes.com (10 July 2012) (1321762) 184 - www.skinceuticals.com:8 June 2007 (503205) 185 - Aljazeera www.aljazeera.net:US politicians seek to halt Bahrain arms deal (8 October 2011) (563265) 186 - Neal’s Yard Remedies Corporate Communications:www. nealsyardremedies.com (4 July 2012) (1321564) 187 - BUAV :Shopping Cruelty Free (31 March 2009) (532692) 188 - Beiersdorf AG Corporate Communications:www. beiersdorf.com (26 June 2012) (1321075) 189 - BUAV website www.buav.org:BUAV Factsheet - Cosmetics Companies Guide (11 January 2007) (306056) 190 - Federal Trade Commission:FTC Settlement Prohibits Marketer from Claiming that Nivea Skin Cream Can Help Consumers Slim Down ( (1322259) 191 - Uncaged website www.uncaged.co.uk:Uncaged website - boycott list (21 June 2007) (503967) 192 - Colgate-Palmolive Co Corporate Communications: Sustainability Report (2011) (921750) 193 - Colgate-Palmolive Co Corporate Communications:www. colgate.com (7 July 2011) (557859) 194 - Hill’s Pet Nutrition Corporate Communications:www. hillspet.com (5 November 2007) (515349) 195 - Colgate-Palmolive Co Corporate Communications:http:// www.colgate.com/ (12 March 2012) (921744) 196 - Hill’s Pet Nutrition Corporate Communications:www. hillspet.com (11 January 2010) (538793) 197 - Financial Times (FT):Companies fined for pet food pricefixing (20 March 2012) (922181) 198 - Severn Delta Ltd Corporate Communications:www. severndelta.co.uk (22 June 2012) (1320923) 199 - PitRok Ltd Corporate Communications:www.pitrok.co.uk (12 July 2012) (1322040) 200 - Pure Nuff Stuff Ltd Corporate Communications:www. purenuffstuff.co.uk (22 June 2012) (1320955) 201 - Pure Nuff Stuff Ltd Corporate Communications:ECRA company questionnaire (4 March 2010) (540444) 202 - Coty Inc Corporate Communications:www.coty.com (28 June 2012) (1321242) 203 - Reckitt Benckiser Group PLC Corporate Communications: Sustainability Report 2010 (2010) (920701) 204 - NaturalNano, Inc company website:NaturalNano Expects to Benefit; Global Market to Reach US$2.4 trillion (May 2011) (1321826) 205 - Reckitt Benckiser Group PLC Corporate Communications: Gobal Policy Statement on Animal Testing (October 2009) (920776) 206 - PETA - Companies that test on animals: CompaniesDoTest.pdf (15 February 2012) (920751) 207 - Crystal Spring Corporate Communications:www. crystalspring.co.uk (28 June 2012) (1321248) 208 - Sante Naturkosmetik GmbH Corporate Communications: www.santecosmetics.co.uk (28 July 2005) (264050) 209 - Logocos Naturkosmetik AG Corporate Communications: www.logona.com (16 July 2012) (1322192) 210 - Sante Naturkosmetik GmbH Corporate Communications: www.sante.de (3 July 2012) (1321540) 211 - Womens Voices for the Earth (WVE):Dirty Secrets: whats hiding in your cleaning products (November 2011) (567248) 212 - Reckitt Benckiser Group PLC Corporate Communications: ECRA company questionnaire (5 March 2012) (921391) 213 - BBC News Website www.bbc.co.uk:Directors’ pay rose 50% in past year, says IDS report (28 October 2011) (564169) 214 - Triangle Wholefoods Collective Ltd Corporate Communications:www.suma.coop (13 February 2012) (920617) 215 - Triangle Wholefoods Collective Ltd Corporate Communications:Ethical Consumer Questionnaire (September 2011) (562368) 216 - Triangle Wholefoods Collective Ltd Corporate Communications:www.suma.coop (7 January 2010) (538647) 217 - Triangle Wholefoods Collective Ltd Corporate Communications:www.suma.coop (12 July 2012) (1322044) 218 - Superdrug Stores Plc Corporate Communications:www. superdrug.com (6 July 2012) (1321659) 219 - Hutchison Whampoa Ltd Corporate Communications: www.hutchison-whampoa.com (12 November 2007) (516293) 220 - Hutchison 3G UK Limited Corporate Communications: www.three.co.uk/Company/Who_is_3_/Shareholders (14 January 2010) (539181) 221 - Ethical Consumer:Ethical Consumer issue 119 (June 2009) (533551) 222 - Hoovers Online www.hoovers.com:http://premium. hoovers.com/subscribe/co/familytree.xhtml?HD=21152448 3&GD=354573875&ID=99999 (3 Febru (539770) 223 - PARKnSHOP Corporate Communications:www1. parknshop.com/WebShop/CompanyOverview.do (20 January 2010) (539388) 224 - Cheung Kong (Holdings) Ltd Corporate Communications: www.ckh.com.hk/eng/index.htm (27 March 2009) (532632) 225 - Corporate Watch (UK) website www.corporatewatch.org. uk:It’s exploitation and it’s repellent’: Retailers, councils and charities benefiting from workfare (2 (562851) 226 - CSR Asia Weekly:Vol 3 Week 5 (31 January 2007) (309603) 227 - Hutchison Whampoa Ltd Corporate Communications: Annual Report 2011 (2011) (1321675) 228 - Urtekram International A/S Corporate Communications: www.urtekram.com (14 March 2012) (922007) 229 - BUAV :Little Book of Cruelty Free (online version) (14 March 2012) (922004) 230 - Urtekram International A/S Corporate Communications: www.urtekram.dk (26 February 2010) (540241) 231 - Weleda AG Corporate Communications:Annual & Sustainability Report (May 2012) (1320765) 232 - Weleda AG Corporate Communications:www.weleda. co.uk (6 July 2012) (1321666) 233 - Weleda UK Ltd Corporate Communications:www.weleda. co.uk (9 February 2010) (539834) 234 - Weleda AG Corporate Communications: www.weleda. co.uk (8 March 2006) (244060) 235 - Yaoh Ltd Corporate Communications:www.yaoh.co.uk (2 July 2012) (1321486) 236 - Yaoh Ltd Corporate Communications:Yaoh Brochure (2010) (1322257) 237 - Yaoh Ltd Corporate Communications:www.yaoh.co.uk (17 March 2010) (540862) Ratings Information General Information Where our information comes from Although the Ethical Consumer database holds information going back to 1991, all ratings and Ethiscores are based only on information published in the last five years. It’s also important to remember that while most corporate responsibility rating organisations ‘rate’ company groups as single organisations, Ethical Consumer structured to map complex company groups. The exception to this is under the policy categories: “Environmental Reporting”, “Supply Chain Policy” and “Animal Testing Policy”categories, where ratings can refer to the specific subsidiary’s environmental report or Supply Chain Policy if this is better. When one company buys another, the new company is deemed to have inherited the past record of the other, unless there is clear evidence that the take-over has seen a change in policy and practice. Significant effort is made by Ethical Consumer to maintain the integrity and accuracy of information. Each company is assigned to its UHC (Ultimate Holding Company) but frequent global mergers, takeovers and acquisitions mean that company group information can be of an advisory nature only. Therefore, if a particular piece of information is to play a significant role in a campaigning or investment decision, we recommend making additional ownership checks or contacting us on 0161 226 2929 for a quote for a screening. Of course, accurate ownership information is of the utmost importance to us at Ethical Consumer, and we make every effort to monitor significant changes. If you discover information which you believe is incorrect, please contact us and we can make changes within 24 hours if necessary. The Ethical Consumer database (available online as Corporate Critic) is compiled primarily from information already in the public domain. Our team of researchers regularly search through over 100 publications and summarise information on corporate activity into easy-to-read abstracts or ‘stories’. Information on companies is taken from: • Publications by environmental, animal rights and Third World campaigning NGOs such as Greenpeace, Friends of the Earth, Amnesty, WDM etc. • Corporate communications such as Annual Reports and company websites for environmental reports, codes of conduct and animal testing policies. Ratings Key • Commercial defence and nuclear industry directories • Pollution and health & safety prosecution records • A wide range of other international sources • Daily news Each abstract is fully referenced to a particular publication, permitting users to explore and follow up stories in more detail. Our reseachers in Manchester add new stories to the database on a daily basis. These are uploaded onto Corporate Critic website and the Ethiscore website and so ratings are recalculated nightly. Because of the ongoing nature of this behaviour-monitoring process, we do not systematically check each story or rating with companies prior to publication. We encourage companies to contact us if they believe a story or rating is in error and we will always address the issues raised. Full Circle (our worst rating) Clear Circle (our middle rating) No Circle (our best rating) The Categories /Environment Environmental Reporting Nuclear Power The company or parent company: i) did not respond to a request by ECRA for a copy of its environmental policy or report and did not display such a policy or report on its website, OR ii) supplied to ECRA or displayed on its website an environmental policy or report which contained neither specific targets nor discussion of impacts specific to the company. The company is involved in: i) design, construction, decommissioning, ownership or operation of nuclear power stations, AND/OR ii) nuclear fuel and related equipment - the mining, processing or reprocessing of uranium; nuclear fuel fabrication; fuel rods etc, AND/OR iii) nuclear reactor products and services - such as nuclear reactors, reactor cores, neutron detectors, control rods, steam generator, AND/OR iv) the transport of waste from the nuclear industry, AND/OR v) membership of a nuclear power industry association such as British Nuclear Industry Forum and World Nuclear Association. The company or parent company supplied to ECRA or displayed on its website an environmental policy or report which contained at least two quantified targets and/or discussion of impacts but: i) was not dated within the last two years, OR ii) failed to demonstrate a reasonable understanding of the company’s main impacts, OR iii) was not independently verified. The company or parent company: i) supplied to ECRA or displayed on its website an environmental policy or report which; (a) contained at least two specific time and performance targets, AND (b) which demonstrated a reasonable understanding of the company’s main impacts, AND (c) was dated within the last two years, AND (d) was independently verified by an organisation named in the report. ii) is a small business (turnover of less than £5 million per year) specialising in the supply of products with low environmental impacts or which are of environmental benefit or which offer other social benefits. Ethical Consumer 1 The company is involved in: i) production of other nuclear related equipment for example monitoring and testing equipment; electricity and communications cabling, insulation, seals; temperature and pressure measurement devices; gas and water analysers; air coolers, compressors, pumps, valves and IT products, AND/OR ii) the supply of radioactive waste services such as treatment, handling and storage. We have found no evidence for involvement in nuclear power for the company. RATINGS INFORMATION The Categories /Environment (Continued) Climate Change Negative ratings in this category indicate that the company has been criticised for involvement in sectors considered by Ethical Consumer to contribute significantly to climate change, such as fossil fuels, aviation, cars or cement, or that it has been criticised for having high levels of contribution to climate change emissions, by direct emissions, through its products, or by making misleading claims about climate change. Involvement in areas deemed by us to be a higher contributor to climate change (such as fossil fuels) OR involvement in more than one areas deemed to be less significant (for example; cars, aviation, lobbying) Involvement in one of the above areas deemed as less significant. No criticisms have been found under this category for the company in question. Pollution & Toxics Negative ratings in this category indicate that a company has been prosecuted or criticised by government or campaign groups for emissions of toxic or damaging substances into the environment, AND/OR a company is involved in the manufacture or sale of chemicals or products containing chemicals which are a cause of concern because of their impacts on human and animal health and the environment (eg toxic or bioaccumulative chemicals, ozone depleting chemicals or pesticides and herbicides.) The company has either received one major criticism (such as a major pollution incident) or a number of minor criticisms (ie involvement in nanotechnology, unsustainable packaging, small fines for pollution). The company has received one or two minor criticisms in this area. No criticisms have been found under this category for the company in question. Habitats and Resources Negative ratings in this category indicate that a company has been criticised for activities which: destroy or damage the environment through unsustainable resource extraction and mining, or detrimental land use, OR destruction of specific habitats, depleting biodiversity and reducing the ability of ecosystems to renew themselves, including unsustainable fishing and forestry or impacting severely on the habitats and lives of endangered species. The company has either received one (or more) major criticism OR more than two minor criticisms. The company has received one or two minor criticisms in this area. No criticisms have been found under this category for the company in question. The Categories /ANIMALS Animal Testing iv) sells or processes meat, poultry (broilers and eggs) or fur that is not labelled as free range or organic. The company: i) conducts or commissions tests on animals for non-medical products or ingredients, OR ii) conducts or commissions tests on animals for medical products or ingredients, OR ii) sells animal-tested cosmetics, toiletries or household products, OR iii) operates in a sector where animal testing is common and has no written animal testing policy statement, or did not reply to our request for a copy of one, or sent us a policy with standards less stringent than those required for a middle rating. i) The company operates in a sector where animal testing is common and has a policy of not testing products or ingredients on animals, and of not commissioning such tests but does not have a fixed cut-off date (i.e. a specific date set by the company after which it will not use any new ingredients tested on animals), OR ii) The company is a retailer with a fixed cut-off date for own brand products but also sells animal-tested non own-brands. The company EITHER does not operate in a sector where animal testing is common OR operates in a sector where animal testing is common and has a fixed cut-off date policy. The company has an investment relationship with a company criticised in this category. Animal Rights The company is: i) a farmer of non-intensive or free range meat, poultry or fish ii) sells or processes meat, poultry or fish iii) involved in the production, supply or retail of fur iv) a slaughterhouse owner or user of slaughterhouse by-products such as leather and gelatine The company is: i) a supplier of animal feedstuffs, OR ii) is a dairy farmer or egg producer, OR iii) is involved other activities which lead to the suffering of animals such as zoos and circuses and the production of musk and civet. OR iv) a company or employee has been accused of cruelty to animals. Factory Farming The company: i) is a factory farmer of meat, poultry (broilers and eggs), fish or fur, OR ii) manufactures or supplies intensive farming equipment such as battery cages, beak trimmers, pig crates, OR iii) supplies breeding stock, OR Ethical Consumer 2 RATINGS INFORMATION The Categories /PEOPLE Human Rights Supply Chain Management Involvement in one or more of the following: i) operations in six or more oppressive regimes taken from the list below (country not counted if company is domiciled there). ii) human rights abuses, through any of the following: a) the use of its equipment, staff or facilities in perpetrating human rights abuses b) human rights abuses perpetrated by security forces associated with a companys operations c) involvement in projects that have proven links with human rights abuses d) collaboration with a government AND/OR military in perpetrating human rights abuses e) allegations of human rights abuses by company staff iii) land rights abuses; specific instances where indigenous peoples have been or may be removed from their land, or whose livelihoods may be threatened, to facilitate corporate operations (either extant or planned) In industries where supply chains commonly stretch into lowwage economies we expect companies to have developed a publicly-available supply chain management policy addressing workers’ rights at supplier companies. We look for the following four elements in each policy: 1) Supply Chain Policy: no use of forced labour, freedom of association, payment of a living wage, working week limited to 48 hours and 12 hours overtime, eliminations of child labour (under 15 years old, or under 14 if country has ILO exemption), no discrimination by race, sex etc, independent monitoring. Policy must cover whole supply chain. 2) Stakeholder Engagement: multistakeholder initiatives, NGO/trade union involvement and employee complaints mechanism. 3) Auditing & Reporting: discolsure of audit results, schedule of audit plan, commitment to audit the whole supply chain, remediation strategy and costs paid by buying company. 4) Difficult issues: audit Fraud, purchasing practices, living wage, homeworkers, restricted/illegal trade unions. A company will receive our middle rating if it has operations in two to five of the following regimes on our 2011 list of Oppressive Regimes (country not counted if company is domiciled there): Afghanistan, Bangladesh, Belarus, Burma, Chad, China, Colombia, Congo, DRC, Cuba, Equatorial Guinea, Eritrea, Ethiopia, Honduras, India, Iran, Iraq, Israel, Jordan, Kazakhstan, Laos, Libya, Nigeria, North Korea, Pakistan, Philippines, Russia, Saudi Arabia, Sri Lanka, Sudan, Swaziland, Syria, Thailand, Turkmenistan, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe. A company will not receive a mark in this column if all its products sourced from these regimes are marketed as fair trade. Our Oppressive Regimes listing has been compiled from different human rights and workers’ rights reports. Our best rating indicates that we have not received any criticisms under this category for the company in question. Companies which manufacture products that are labelled and certified as Fairtrade, or smaller companies (turnover of less than £8 million) which can show an effective, if not necessarily explicit, policy addressing workers’ rights at supplier companies will also receive a best rating. Irresponsible Marketing Marketing of products in a way that has been criticised for causing severe physical harm. The manufacture or sale of tobacco products automatically receives a worst rating in this cateogry as does the infringement of the International Code of Marketing of Breastmilk Substitutes. Our lowest rating could also indicate several minor criticisms in this area. Marketing of products in a way that has been criticised as being detrimental to health or likely to cause injury. This includes the use of excessively thin or childlike models in fashion advertising. Workers’ Rights A full circle or clear circle represents criticism of the company or its suppliers for infringement of workers’ rights, which includes: intimidation of workers by management; use of forced or slave labour; payment of wages below a level which is adequate to live on; a working week of over 48 hours; forced and/or excessive overtime; exploitative use of child labour; denial of the right to associate, form unions or bargain collectively; discrimination on the grounds of race, sex, sexuality or creed; the provision of inadequate or dangerous working conditions. No criticisms have been found under this category for the company in question. Arms & Military Supply Involvement in the manufacture or supply of nuclear or conventional weapons including: ships, tanks, armoured vehicles and aircraft; weapons systems components; systems aiding the launch, guidance, delivery or deployment of missiles; fuel; computing; communications services. A clear circle (middle rating) represents the manufacture or supply of non-strategic parts for the military, not including food and drink. No criticisms have been found under this category for the company in question. No criticisms have been found under this category for the company in question. The Categories /POLITICS Political Activity Membership of 2 or less lobby groups, or a donation of less than £50,000 to political parties in the last 5 years, or secondment of staff to political parties, governments or supranational institutions. The company has made a donation of £50,000 or more to a political party, either direct or indirect or in ‘soft money,’ in the last five years, or has membership of 3 or more lobby groups, or has directly lobbied governments or supranational institutions on trade liberalisation issues. Ethical Consumer 3 RATINGS INFORMATION The Categories /POLITICS (Continued) A lobby group is defined as a corporate lobby group which lobbies for free trade at the expense of the environment, animal welfare, human rights or health protection. A current list of such groups includes: American Chamber of Commerce/AMCHAM-EU Bilderberg Group Business Action for Sustainable Development Business Round Table European Round Table of Industrialists European Services Forum International Chamber of Commerce Transatlantic Business Dialogue Trilateral Commission US Coalition of Service Industries World Business Council for Sustainable Development World Economic Forum contain GMOs and the lack of a clear company group-wide GMO free policy, and/or iii) public statements in favour of the use of GMOs in nonmedical products. iv) the development or marketing of medical procedures or products involving genetic modification, which have been criticised on ethical grounds. Anti-Social Finance A boycott of the brand name featured in the report has been called somewhere in the world or a boycott of the entire company group has been called. Ratings are based on criticisms for activities which are likely to impact negatively on the economic well-being of the societies that companies operate in. Such criticisms include: tax evasion and use of tax havens; bribery and corruption, insider share dealing, involvement in Third World debt, price fixing, irresponsible marketing of financial products, excessive directors’ remuneration. A boycott of one of the parent company’s subsidiaries or brands has been called somewhere in the world. Company Ethos Genetic Engineering This category is intended to draw the attention of consumers to company groups who, by structural innovation or clear product policies, demonstrate an ethos committed to sustainability. We understand sustainability to include environmental, social justice and animal rights elements. Boycott Call Involvement in: i) the non-medical genetic modification of plants or animals, and/or ii) gene patenting, and/or iii) xenotransplantation. Involvement in: i) the manufacture or sale of non-medical products involving or containing genetically modified organisms (GMOs), and/or ii) the manufacture or sale of non-medical products likely to A full star may indicate a policy to only sell fairtrade products, organic products, vegan products or BUAV approved products or a combination of these. A large star may also indicate a formalised not-for-profit trading structure. A clear star indicates a policy to only sell innovative environmental alternatives The Categories /PRODUCT SUSTAINABILITY Organic Product better) EU Energy Label, the Blue Angel Label of the Nordic Swan label. 1 point indicates that the product is certified organic. Other Sustainability Features Fairly Traded Product 1 point indicates that the product is labelled with the Fairtrade Mark (UK) or equivalent FLOI symbol. Half a point indicates that the product is marketed as fair trade. 1 point indicates that the product embodies other significant sustainability feature. Half a point indicates that the product embodies other less significant sustainability features. Positive Environmental Features Animal Welfare Features 1 point indicates that the product has been recommended by an independent environmental organisation, or that the product has received the TCO environmental label. Half a point indicates that the product has received either an A+ (or 1 point indicates that the product is certified by the Vegan or Vegetarian Society. Half a point indicates that the product is marketed as vegan or vegetarian. The Categories /ETHISCORE The Ethiscore is a numerical ethical rating designed to help users quickly differentiate companies which have attracted significant levels of criticism from those which have attracted less attention. Excellent for benchmarking companies within product or market sectors, the Ethiscore is also a superb tool for monitoring corporate ethical improvements. [14 (baseline) minus 2 categories = 12]. If the company had a lesser criticism under, say, Workers Rights (0.5 points) then its Ethiscore would be 14 minus 1.5 = 12.5 The fifteenth point is for ‘Company Sustainability’ - a positive Corporate Responsibility category - which gives an additional point to companies who, for example, only sell organic products. The are two types of ethiscore A company Ethiscore of 0 to 15 points. 15 is the best Ethiscore and 0 worst. The company Ethiscore is based on the subtraction of all the corporate responsibility categories in which the database holds current criticisms from a baseline number of 14. Therefore if a company has received criticisms in the Animal Testing (1 point) and Workers’ Rights (1point) categories, its ethiscore will be 12. Ethical Consumer 4 A product Ethiscore of 0 to 20 points. 20 is the best Ethiscore and 0 worst. This Ethiscore is a score for products and is made up by combining a company Ethiscore with a rating for product sustainability, and is based on five positive attributes which a product may have. Therefore if a 12 point company is listed as selling an organic (1 point) and fairtrade (1 point) tea, then the tea would receive an ethiscore of 12+2 = 14. RATINGS INFORMATION