The Carbon Cost of Cosmetics: A Guide To Reducing Scope 3 Emissions

For beauty brands that have set Science-Based Targets (SBTi) or are preparing to, the path forward requires more than just carbon offsets. True sustainability means directly cutting emissions across the value chain. But with global, fragmented supply chains, how can companies effectively reduce their footprint? 

This blog explores how top beauty brands like L’Oréal, Estée Lauder, and Unilever are cutting emissions while staying compliant and competitive in an evolving marketplace. 

Scope 3 emissions make up approximately 30-50% of total emissions in the beauty and personal care sector; with ingredient sourcing being a major contributor. These emissions stem from:  

• Ingredient sourcing – Agricultural emissions from palm oil, soy, shea butter, and other raw materials. 

• Water use & processing – High water consumption for product formulation, cleaning, and manufacturing. 

• Packaging materials – Carbon-intensive plastic production and end-of-life waste. 

• Product distribution – Emissions from global transportation and logistics. 

• Consumer use & disposal – Emissions from product usage (e.g., aerosol sprays) and landfill contributions. 

Reducing these emissions is challenging, but industry leaders are proving that innovation, supply chain collaboration, and smart energy investments can drive meaningful impact. 

Lowering Supply Chain Emissions : Sustainable Ingredient Sourcing

The ingredients used in beauty products have a huge environmental footprint due to farming practices, land use, and emissions from processing. Leading brands are making changes by: 

• Engaging suppliers to adopt regenerative agriculture – L’Oréal has partnered with suppliers to shift toward regenerative farming for plant-based ingredients 

• Implementing precision fermentation – Givaudan, a major fragrance and cosmetics supplier, is developing lab-grown fragrance molecules to replace resource-intensive natural extracts 

• Reducing agricultural emissions – Estée Lauder is working with raw material suppliers to cut deforestation-linked ingredients like palm oil. 

Reducing Waste & Loss with Smarter Inventory and Upcycling

Beauty brands are tackling waste across the supply chain by optimizing inventory and repurposing byproducts. 

• AI-driven inventory optimization – Unilever’s beauty division is using AI-powered forecasting to cut overproduction and excess inventory, reducing emissions linked to waste and disposal. 

• Upcycling ingredients – Lush has established the Green Hub, a facility focused on recycling and repurposing materials, including product molds and packaging, to promote a circular economy. Additionally, Lush offers used coffee grounds for upcycling or gardening, reinforcing their green initiatives. 

• Improving cold chain efficiency – Some brands, including The Body Shop, are working on reducing the energy footprint of temperature-sensitive product transportation. 

Switching To Renewable Energy in Manufacturing

Manufacturing facilities are often heavily reliant on fossil fuels, but companies are making major shifts by: 

• Using Renewable Energy Certificates (RECs) & Power Purchase Agreements (PPAs) – L’Oréal has transitioned its U.S. production sites to 100% renewable electricity through PPA. 

• On-site solar & wind power – Beiersdorf (NIVEA’s parent company) is investing in on-site solar and energy storage to decarbonize manufacturing. 

Decarbonizing Packaging & Distribution

Packaging is one of the most visible sustainability challenges in beauty. Brands are reducing emissions by: 

• Transitioning to refillable & recyclable packaging – Estée Lauder and MAC Cosmetics have committed to offering more refillable product lines. 

• Cutting plastic reliance – Unilever’s Dove brand introduced bottle-free beauty bars, eliminating over 20,500 tonnes of plastic waste per year.

Tracking & Reporting Scope 3 Emissions

As sustainability regulations tighten, transparency is key. Beauty brands are adopting advanced tracking and reporting systems to measure progress: 

• Blockchain-based emissions tracking- The Procter & Gamble (P&G) beauty division is testing blockchain to create real-time, verifiable Scope 3 emissions data for raw materials. 

• Supplier sustainability programs – Coty has launched a supplier engagement platform requiring emissions reporting and reductions as part of sourcing agreements. 

As of January 2025, the EU’s Corporate Sustainability Reporting Directive (CSRD) is in effect, requiring large companies to report their Scope 3 emissions. However, recent changes have raised the thresholds, meaning some mid-sized businesses are now exempt. 

To stay competitive and future-proof operations, beauty and cosmetic companies should invest in automated emissions tracking, supplier collaboration, and low-carbon innovation—ensuring they are prepared for both current regulations and future developments in sustainability compliance. 

Reducing Scope 3 emissions in beauty is complex—but you don’t have to navigate it alone. Karbon-X provides tailored solutions to help beauty brands track, manage, and reduce emissions effectively while ensuring compliance with global regulations. 

From supply chain decarbonization to sustainability reporting, Karbon-X partners with brands to drive measurable carbon reductions without compromising growth. 

Get in touch with Karbon-X today and take your sustainability strategy to the next level.