New report warns of market risk to in...

New report warns of market risk to investors of cosmetics companies


United States

#1 Mar 5, 2007
A new report warns that cosmetics and personal care products companies ignoring potential health hazards may suffer financial consequences. The report, entitled “Beneath the Skin: Hidden Liabilities, Market Risk and Drivers of Change in the Cosmetics and Personal Care Products Industry,” details “a convergence of forces” with significant implications for investors: increasing global regulatory pressure (e.g. tightening regulations in Europe and elsewhere), shareholder pressure on retailers (e.g. resolutions this year with CVS and Bed, Bath & Beyond), emerging science on health concerns (such as phthalates, parabens, formaldehyde and nanoparticles), and growing consumer sensitivity. The report says that cosmetics industry self-policing in the US opens companies to more of these risks. The report is from the Investor Environmental Health Network, a collaboration of 20 investment organizations representing $22 billion in assets, encouraging companies to adopt “safer chemicals” policies for consumer products.

Read the report at http://cosmetics.investorenvironmentalhealthn...

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