At a recent Personal Care Products Council (PCPC) webinar, “Beauty and Biodiversity: Compliance with Access and Benefit-Sharing for Nature-based Ingredients", legal and regulatory experts outlined the growing complexity of biodiversity compliance and its implications for cosmetics and personal care companies.
The session, moderated by Jonathan Hicks, PCPC Director of International Trade and Regulatory Affairs, highlighted key challenges tied to Access and Benefit-Sharing (ABS) regulations.
“During our webinar, panelists discussed several challenges that complicate companies’ ability to make ABS contributions, including overlapping compliance obligations and legal uncertainties faced by companies that want to incorporate natural ingredients into their products,” Hicks summarized in a conversation with CosmeticsDesign US.
According to Hicks, these issues are top of mind for many PCPC member companies, particularly those actively supporting sustainability initiatives in source countries.
“This discussion was of significant interest to several of our member companies,” he explained, “given their ongoing efforts to improve sustainability within our industry, such as direct contributions to local communities where they source botanical ingredients and, where applicable, support for national ABS programs.”
Regulatory fragmentation presents practical hurdles
With more than 130 national ABS laws now in effect, Hicks confirmed, companies must navigate a fragmented and often inconsistent regulatory landscape. He emphasized that this presents a substantial compliance burden for global operators.
“Compliance with national ABS laws can be complex, especially when there are requirements that are not aligned globally,” he said. “Many companies rely on regulatory and legal experts to ensure that they fulfill these obligations.”
Emerging frameworks add new layers of uncertainty
The panel also examined how newer policy mechanisms, such as those related to Digital Sequence Information (DSI) and the EU’s Corporate Sustainability Due Diligence Directive (CS3D), may alter the scope of companies’ biodiversity-related obligations.
While not speaking on behalf of individual companies’ strategies, Hicks noted that these frameworks raise several critical considerations.
“Several factors must be considered with these newer frameworks, including defining DSI in a way that encourages sustainable ingredient use, prevents the stacking of compliance obligations, ensures efficient fund allocation, and resolves other legal uncertainties that currently discourage contributions,” he said. “We hope that the interested stakeholders will address these items.”
Nagoya Protocol milestone may spur further changes
As the tenth anniversary of the Nagoya Protocol approaches in October, regulatory developments are expected to accelerate. Hicks noted that companies should be prepared for possible adjustments in how ABS compliance and benefit-sharing are implemented and enforced.
“We anticipate that the Conference of Parties and national governments will continue to refine ABS programs to encourage greater contributions and improve the efficient distribution of funds supporting biodiversity initiatives,” he concluded. “PCPC will monitor these developments closely and engage with member companies to facilitate knowledge sharing.”
