Lancôme and Aerin Beauty perfumes leave child labor trail as industry faces EU crackdown

04 Jun 2024 --- An investigation into perfume production for some of the world’s most famous brands has exposed widespread child labor in supply chains, for which companies claim to have achieved full transparency.

The findings come amid an EU crackdown that aims to eradicate all ingredients originating from child labor by the end of the year. This comes in addition to a new law against modern slavery, which was passed earlier this year and prohibits the production of products using forced labor.

The new BBC World Service Documentaries on “Child labour behind global brands’ best-selling perfumes” take viewers to Egypt to show “dark secrets” behind the jasmine trade, naming Lancôme and Aerin Beauty’s involvement.

It warns: “Children are working in dangerous conditions throughout the night, and pickers are often earning as little as a dollar a day, while huge profits are made by the giants in the perfume industry.”

“Over half of the world’s supply of jasmine is produced in Egypt, and this story reveals the true human cost of this precious flower, considered one of the most valuable ingredients used in some of the world’s most iconic perfumes.” 

Givaudan on industry responsibility
As BBC links Givaudan as the maker of Lancôme Idôle L’Intense, Personal Care Insights connects with the fragrance supplier, who says:

Over half of the world’s supply of jasmine is produced in Egypt.“We care deeply about improving people’s lives in communities where we source and operate. We do not practice or tolerate any form of child labor, and we work closely with our partners and suppliers to help ensure they meet the same standards. We know jasmine production raises concerns about child labor, and we work hard with our suppliers to address these challenges. However, the concerns raised in the BBC report are deeply alarming.”

“Jasmine is a priority ingredient as part of our responsible sourcing program. Through a combination of external audits, our own field visits and additional educational programs, we’re working with Jasmine suppliers for greater transparency and to improve practices and conditions.”

Givaudan says auditing programs like UEBT (Union for Ethical Biotrade) and Sedex are vital but play only one part.

“We also conduct our own human rights field risk reviews as part of regular site visits (including field visits in the early hours of the morning), work directly with suppliers when we identify areas that need improvement, provide training on our human rights expectations and managing child labor risks and we support suppliers with targeted social and environmental education programs,” shares the company.

“We have engaged with the independent children’s rights organization Save the Children. We will embark on dedicated projects together in the Egyptian Jasmine supply chain with our key supply chain partners. These will focus on guidance, risk assessments and field training. We are committed to continuously enhancing our activities on the ground.”

The company adds it supports industry collaboration and works with the Fair Labor Association, an international network that champions human rights in farms and factories, and the International Labor Organisation to develop concrete solutions.

“Improving the lives of communities in the Jasmine supply chain is a responsibility for the entire chain, and it’s incumbent upon us all to continue taking action to remove the risk of child labor entirely,” says Givaudan.

In 2022, the company said it instructed 240 Egyptian jasmine producers on sustainable agriculture techniques.

Moreover, the perfume industry is increasingly shifting to biotechnology-based innovations to overcome its unsustainable reliance on natural yields. Personal Care Insights spoke to Sensegen about the sustainability challenges and environmental consequences of extracting molecules from natural ingredients. It explained how biotechnology enables the creation of novel and authentic fruit and floral fragrances.

Pickers earn around a dollar a day.L’Oréal disappointed
In response to the documentary, L’Oréal, the parent company of Lancôme, says, “All forms of child labor are completely unacceptable.” It expects its suppliers “to act responsibly and ethically” and claims to “act immediately” if supply chain issues are identified.

“This is exactly what we are currently doing in Egypt, where we indirectly source a small percentage of the jasmine used in some of our products. Thanks to our ongoing monitoring process, in October 2023, after the last harvest and before the BBC reached out to us, we first identified potential human rights issues, including child labor. Consistent with our human rights commitments, we decided to take immediate action.”

L’Oréal says it “put concrete actions in place ahead of the next jasmine harvest in June” after discovering the involvement of children.

“To drive systemic change in support of local communities, to eliminate child labor while protecting the livelihood of the families who depend on jasmine picking, we have been a key player in setting up a coalition, in partnership with the Egyptian government, the Fragrance Houses and other industry partners.”

“This coalition is being led by the Fair Labor Association and the International Labour Organization, as part of their flagship ‘Harvesting the Future — Jasmine in Egypt’ project.’” The company adds, “We are very disappointed that the BBC chose not to include our concrete actions in Egypt, which we had already started to implement before they first contacted us and which we have actively shared with them in detail.”

Tight budgets add strain
Global brands with billion-dollar budgets that use Egyptian jasmine in their scents assert zero tolerance for child labor in any part of their supply chains. However, the documentary reveals that children as young as five were hired in Egyptian factories to work on last year’s jasmine harvest.

Although working under 15 is illegal, the documentary reveals that some 30,000 workers involved their children last summer because factories set low prices.

An independent perfumer tells the BBC that perfume companies want to use the cheapest oil to create a fragrance and sell it at the highest price possible. So, they set tight budgets, which put pressure on wages, factories and pickers.

L’Oréal says it set concrete actions ahead of the next jasmine harvest in June after discovering the involvement of children.CSR and auditing pitfalls
Personal Care Insights previously examined the issue of child labor, speaking with industry organizations that suggested ways to ensure personal care products are sustainably child-labor-free.

World Vision’s report, “The High Price of Beauty: Child Labor in Global Cosmetics,” outlines how companies can ensure child-labor-free supply chains.

Despite supply chain transparency legislation in major buying regions, the report highlights the need to hold companies accountable and increase the enforcement of child labor laws in producing countries.

The report finds that cosmetics companies’ policies vary in detail and often lack clear steps or accountability metrics. Also, companies struggle to enforce their supplier codes of conduct, usually relying on third-party audits.

According to the report, outsourcing supply chain monitoring can hide unethical practices. Pre-announced audits allow companies to hide child labor temporarily, and auditors paid by the companies they inspect may miss issues. Without mandatory publication of audit results, assessing the effectiveness of these efforts is difficult.

Action points
The report emphasizes that cosmetics corporations must uphold strict supplier standards, ensure fair wages for farmers and miners and address human rights risks in their supply chains.

Paying a fair price for raw materials is essential for improving children’s and families’ lives and preventing a push to child labor, according to the report. Passing costs on to buyers often results in producers being paid less, exacerbating child labor issues, it notes. 

To stand out in a saturated market, companies should raise awareness and take steps to eliminate child labor. Governments are urged to enact legislation, hold corporations accountable and ensure access to quality education and livelihoods. Governments can mandate supply chain transparency, with consumer pressure also playing a significant role.

By Venya Patel