2020 SUSTAINABILITY REPORT LUMENE GROUP
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SUSTAINABILITY REPORT
LUMENE GROUP
2020
1
SUSTAINABILITY REPORT LUMENE GROUP 2020
Highlights 3 Sustainable and innovative products 23 Sustainable production 49
The journey of cloudberries 24 Carbon neutrality 51
Introduction 5
From nature to your skin and back, this is 25 Waste management and recycling 53
CEO’s forewords 6 the life cycle of a Lumene product
Water resources 54
Response to the Covid-19 pandemic 7 Product safety 27
Responsible corporate citizen 55
Megatrends surrounding us 8 We avoid all forms of animal testing 29
Towards circular economy 57
Quality policy 30
LUMENE – Beauty born of Arctic light 9 Corporate governance 58
Formulations & ingredients 31
CUTRIN – True to Nordic hair needs
Managing sustainability 60
Profile of a Lumene supplier 36
Our strategy, mission and vision 10
Boosting employment and 61
Packaging 38
Early start in sustainability 13 stakeholder value
Environmental policy 14 Engagement and communication 44 Investing in work community 63
Development goals 15 Collaboration with stakeholders 45 The people behind the products 64
A deeper look into customers 47 Promises for 2030 67
Sustainability at Lumene Group 17
and consumers
Sustainable supply chain 18 Facts and figures 69
Marketing communication 48
Our focus 19 Management systems 70
Our sustainability themes 21 Data in tables 71
GRI Index and 73
Reporting principles
Contact info 79
2
HIGHLIGHTS 2020
92% 100%
Started using FSC®* certified cardboard Decrease of the carbon Suppliers committed to the
for folding boxes. 11 % of Cutrin’s and footprint of the Lumene principles within Lumene’s
9 % of Lumene’s folding boxes FSC® factory (2019 vs. 2021) Supplier Code of Conduct
certified by end 2020. *All direct supplier purchases
*
) Lumene Oy: FSC-N003275, Cutrin Oy: FSC– N003588
Lumene Group joined SEDEX
to support ethical trade
50% 0%
Cutrin BIO+ bottles made Lumene Group stopped
of 50 % post-consumer using peat as raw material
recycled material
LUMENE IS THE LEADING
BEAUTY BRAND IN SUSTAINABLE
BRAND INDEX 2021 IN FINLAND.
According to consumer study Lumene is on
position 21 in all industries, up from 40th in 2020.
45%
*The Sustainable Brand Index survey is the largest brand study in the Nordic countries focusing Less plastic used in new
on sustainability. It is conducted annually in Northern countries, the Netherlands, Estonia, Latvia
and Lithuania. This year, more than 60 000 people globally and 9,900 people in Finland age 16 Lumene moisturizer jars
to 75 responded to the study. In total 212 brands have been measured in the Finnish study.
3
HIGHLIGHTS 2020
Lumene celebrated its 50th anniversary in 2020 and Cutrin in 2021.
Both brands continue to pursue their journey as Nordic pioneers in
circular economy within the beauty industry.
UP TO 99% NATURALLY VEGAN SKINCARE, HAIRCARE WITH UPCYCLED
DERIVED INGREDIENTS AND FOUNDATION INGREDIENTS
The average share of naturally derived 100% of Lumene skincare and foundation 50 % of our various Nordic ingredients
ingredients in Lumene skincare products formulas are vegan. Lumene aims to have all are sourced from the side streams and
is 90% . We aim to have 95% by 2025. face make-up products vegan by 2021. upcycling of local industry.
Cutrin wash and care product natural
Cutrin assortment is vegan except some
percentages are under evaluation.
waxes and oxidative hair colours.
WITH WILD-CRAFTED RECYCLED AND CONSUMER SAFETY AS THE
INGREDIENTS RECYCLABLE MATERIALS OVERRIDING PRINCIPLE
We continuously increase the use of Nordic During the years 2019 and 2020 we have No serious undesirable effects, minor
ingredients, prioritizing wild-crafted and launched 79 new Lumene products with reactions were rare.
hand-picked ingredients, to build more packs with an average of 50% of recycled
sustainable, naturally-driven formulas. materials – and more to come.
4
INTRODUCTION
5
CEO’S FOREWORDS We have been putting a lot of
effort into reducing our carbon
footprint during the past years.
Lumene’s 50th anniversary year was a true business. At Lumene, it further accelerated launched early 2021. This renewable product
celebration of sustainability. We achieved our development in e-commerce, and we causes 90 % less carbon emissions during
the No. 1 position in the ranking of the gained new markets and customers through its life cycle. The next step in our climate
beauty industry in Finland in Sustainable the digital channels. As a result, online sales work will be to look at our value chain and
Brand Index™, which is Europe’s largest grew by 50%. Skincare continued to grow emissions caused by Lumene and Cutrin raw
independent brand study. This rewarding as people had more time for self-care and material and packaging production as well
recognition was achieved because of for their skincare routines. At Cutrin, we as logistics.
years of intensive work to improve our launched an online store to be able to serve
sustainability and it made our jubilee year consumers at a time when hair salons could Certified beauty and operations
even more memorable for all Lumene not be open. However, due to COVID-19 Certificates are a topic which raises
employees. epidemic makeup category naturally questions among our customers. There
Our ambition does not stop with this declined as home offices and restrictions are number of certificates available on
honorable achievement. Our employees replaced dinners in restaurants and other the market, and we are making careful
passionately continue to work for a change social events. considerations to choose the right
towards an even more sustainable future. We sustainability certificates for our use. To
have continued to promote circular economy A giant leap reducing factory’s carbon strengthen our efforts in supply chain
and we want to keep our position as the footprint responsibility and make them visible, we
Nordic pioneer in circular economy practices We have been putting a lot of effort into have started to utilize the ethical trade
within the beauty industry. As circular reducing our carbon footprint during the organization Sedex. Their tools help us
economy can’t be reached alone, I’ve been past years. The results of our hard work manage the environmental and social
pleased to see all the collaboration we do are now visible when the carbon emissions risks in our global supply chain, as well as
with our partners. Together we can do more. caused by our factory operations in Espoo, ensure our customers that we at Lumene
This year we decided to include our hair Finland have been reduced by 92 % in two Group work ethically. We will be audited
care brand Cutrin and report on Lumene years. We have been buying green electricity according to the Sedex methodology to
Group level. for our premises and factory for years, and further improve the transparency towards
last year we started using renewable district our customers. Currently we are also actively
A year nobody was expecting heating from our local partner Fortum. This exploring sustainability certificates and will
Year 2020 will stay in history as a game year, the final step in decarbonizing our tell more about those later.
changer especially in digitalization. Due own operations will be reached as we stop
to the pandemic, people’s lives changed using fossil fuel in the factory. We are one Johan Berg
abruptly. This affected us not only on a of the first companies to change to this CEO, Lumene
personal level but also on the way we make new renewable oil that our partner Neste
6
RESPONSE TO
THE COVID-19
PANDEMIC
During these unprecedented times our Customer safety
most important value, the safety of our Currently Lumene sales points follow instructions for enhanced hygiene standards in customer service. All skin
consumers, employees and products is contact and touching is avoided in service situations. Testers have partly been removed from our sales points.
central to all our operations more than
ever before. To ensure the safety of our Staff
customers and employees, we have taken Our factory and laboratories have been working normally. Everyone who is able to work remotely has been doing
numerous actions. We continuously monitor that. Small groups of people can work in the office together by limiting the number of others coming to the office.
the situation and guidelines issued by the We have organised meetings, surveys and trainings remotely. On top of these every-day arrangements, a large
government and WHO. majority of the staff in Finland were partly temporarily laid off during Spring 2020. In recognition of this, for the
roles where it was possible in Finland, we gave 4 extra days off over Christmas.
The impacts of the global Covid-19
pandemic on beauty business have been Production
diverse. We have seen a growing focus Production staff had a 4-day layoff during spring 2020 but otherwise the factory has been running normally. The
on skin and hair care and less in makeup, budgeted quantities were not reached, due to stagnating sales. Nevertheless, all new product launches were
when customers have stayed home and executed according to plan. Some planned investments were postponed due to the uncertainty of what lies
are not able to meet each other. The ahead. No external visitors have been allowed in the production area or labs.
professional hair cosmetics products have
suffered from closing the hair salons in Supply chain
many countries. Some trade customers The supply of raw materials is very robust and has been running normally with no materials effected by delays or
have been struggling and still continue to shortages. Logistics has been working well, with some effects on the export due to the global effects on logistics.
do so. At the same time, we experienced a Sea transport to Sweden was affected for a brief period when passenger vessels between the countries were
significant growth of 50 % in our online and halted.
digital sales. We see a growing interest in
supporting local and sustainable brands. Sales
The overall decline of our sales in 2020 was 8,8 %. Certain product lines have been impacted more than others,
with makeup declining 17 %. Due to lock-downs and closing shops and stores, sales in physical stores declined by
10 %. The fall was reduced by the booming online and digital sales channels.
7
MEGATRENDS SURROUNDING US
The world is constantly changing. Identifying the megatrends and game changers helps us to predict the
future and modify our procedures accordingly. Responding to megatrends affect our daily operations.
Here are what we consider to be the most relevant megatrends impacting our work at Lumene Group.
Globalisation Technology shift Sustainability and ethics
The pandemic time has brought many negative Sharing and finding information is getting Stakeholders expect transparency and
effects of globalisation on the surface with easier, which multiplies the information available sustainability from companies. Environmental
the virus spreading with travellers and supply for consumers. Transparency of business awareness is becoming more mainstream, and
chains suffering. At the same time globally, and data is important to help consumers consumers are more conscious and expect
e-commerce is in huge growth together identify relevant and correct information. The ethical behavior from industry. Certificates and
with localisation, where local products are growth of e-commerce is gaining momentum open communications are valued. Companies
supported. from the pandemic and brings new business need to find ways to support the consumers in
opportunities. expressing their ethical values through brands.
Demographic change
With the rise of life expectancy and living Circular economy The meaning of beauty
standards, the impact on product development As the circular economy grows, the use of In the post-Covid phase, consumers are
is significant. There are more consumers and industrial side streams and recycled materials placing more emphasis on holistic wellbeing
different target groups who expect a wider and as ingredients for products and packaging and mental health. Given this change, the role
more diverse portfolio range. The consumers is increasing. Recyclability of packaging is of beauty routines are changing: they offer
are capable of investing more money in better growing. a moment of relaxation and stress relief, and
quality. also an important for self-expression. Body
positivity, individualism, and more diversity of
Global warming ethnicity and age, represent beauty.
Products must be redesigned to meet new
requirements, especially in protecting skin and
hair against sun. The stakeholders expect more
environmentally friendly products and actions
to fight the climate change.
8
LUMENE
BEAUTY BORN OF LIGHT
CUTRIN
TRUE TO NORDIC HAIR NEEDS
9
OUR STRATEGY,
MISSION AND VISION
Lumene is an internationally recognized, leading natural beauty
brand with Nordic roots. Cutrin is among the leading Nordic brands
for hair cosmetics designed for professional use.
The Lumene brand story began in 1970. Finland Lumene has a long-held market
In the beginning the company was called leader position, and respectable positions in
Noiro which was part of Orion Corporation. Sweden and Russia. Cutrin’s main markets
In 2003 the company was bought by a are the Nordic countries and Russia.
group of Private Equity investors, and During the recent years, both brands
the name changed to Lumene. In 2020 have carried out extensive rebranding
Lumene celebrated its 50th anniversary and projects in order to better meet the needs
continues to pursue its journey as a Nordic of modern consumers. New product ranges
pioneer in the circular economy. The hair and formulas were introduced. Packaging
cosmetics brand Cutrin was launched just and visual brand identity elements were
one year later with 50th anniversary in 2021. redesigned. In 2019 Lumene accelerated
Today, Lumene Group consists of these two its presence in digital channels with strong
brands. growth in 2020. Cutrin’s BtoC channel in
Over time Lumene Group’s business Finland was opened in 2020 to be able to
model has remained unchanged, however serve consumers also during pandemic.
with increasing focus on leveraging Lumene The majority of Lumene Group’s products
Group’s access to wild-crafted Nordic are designed and manufactured in Finland
ingredients. Lumene Group is committed to where we produced over 12 million pieces
bringing the power of wild Nordic nature of beauty products in FY20. Other key
to help everyone achieve their own idea of operating functions such as R&D, HR,
beauty. marketing, finance and the production
Today Lumene’s product portfolio facility are headquartered in Kauklahti,
consists of skincare products, face Espoo. The majority owner of the company
makeup and colour cosmetics, Cutrin’s of is the London-based Private Equity firm,
professional hair cosmetic products. In Langholm Capital.
10Cutrin is an independent business unit
within the Lumene Group, covering 15 % of
the Group’s turnover. Cutrin is professional
hair care brand operating in hair salons and
other suitable channels for professional
hair care like department stores and
online. Many of our products are used by
professional hairdressers only as products
contain chemicals which need training, such
as permanent colours, bleach and perm
products.
Cutrin has 50 years of experience
working as a pioneer and specialist of the
fine hair, sensitive scalp and rough Nordic
climate conditions. Our main markets are
Finland, Norway and Russia that together
cover 90% of our current sales. Cutrin
operates also in rest of the Nordics and
Baltics. Supported by complete brand
renovation starting in 2017 Cutrin has strong
potential to expand also into new markets
that we are constantly screening. Focus
will still remain increasing sales and market
shares in current markets.
Cutrin products are manufactured in
5 factories in Europe including Lumene’s
factory in Espoo. More production has
been moved from abroad to Espoo and
this trend will continue in coming years.
Groups headoffice in Espoo offers venues to
work efficiently together with Lumene and
Cutrin teams. This is especially beneficial
when studying new environmentally friendly
packaging materials and taking new side
streaming raw materials into use.
11OUR FOUR VALUES GUIDE OUR
GOVERNANCE AND BEHAVIOR
VISION Integrity
Our vision is to be the leading natural beauty brand We are always open, truthful, authentic and
with Nordic roots, considered the industry pioneer in respectful of our Nordic values.
sustainability and Nordic preservation.
Sustainability
We care about tomorrow as much as today.
MISSION
Our mission is to bring sustainable Nordic beauty
products with wild-crafted potent Nordic ingredients, to Empowered
consumers looking for naturally luminous beauty. We are We dare to be bold, have courage and the
inspired by Nordic women, created with Finnish nature, confidence to be different.
and born of Arctic light.
Inspired
We encourage creativity, passion and innovation to
deliver true Nordic beauty to our consumers.
12EARLY START IN SUSTAINABILITY
2012
Cutrin was corporatized into
independent limited company
1970
2018
The pharmaceutical company
2012
Orion introduced Lumene, a beauty 1994 ”Take care” – an employee
Vegan skin care assortment
& foundations
brand inspired by Nordic nature. Responsible care: Chemical well-being and early
The brand was named after Lake
Lummenne, located in Kuhmoinen,
industry’s voluntary initiative in
a global scale, amplifying our
2002 support model was started.
A new cosmetics plant was
Central Finland. commitment to sustainability. inaugurated in Kauklahti, Espoo. Most
Lumene and Cutrin wash and care 2016
1973 products are still manufactured in this Lumene carried out an extensive
Within three years of its launch, rebranding project. Formulation
factory today.
Lumene had become the market strategy was expanded to include
leader in Finland. The brand still 2000 2009 not only berries but also other
holds this position to date. Lumene 1991 Introducing strategy to Lumene production started northern plants. The target was to
introduced its lipsticks and their ISO 9001 utilize Nordic berries in to use 100% sustainable continuously increase the volume
iconic blue cases. Quality System Lumene formulations. hydroelectricity. and diversity of Nordic ingredients.
1980 2001 2010 2017
Lumene increased its exports especially Lumene was the first brand to use Lumene WaterSmart program Cutrin re-positioned
to other Nordic countries and Russia. hand-picked, wild grown Finnish with the aim of reducing water itself as a niche Nordic
The Lumene Green range started to gain berries in its cosmetics products. consumption. Lumene encouraged hair specialist focused
popularity in beauty salons. The Lumene Vitamin+ range, infused both consumers and cosmetics on Nordic hair needs
with cloudberry seed oil and vitamin companies to diminish water and started rolling out
C, was launched in spring 2001. The footprint and to deliver a more restaged brand with new
1971 1981 Vitamin+ cream was selected as the sustainable attitude towards water. architecture and brand
Cutrin was established with name Cutrin became part of Orion ”best European anti-wrinkle cream” in a Lumene also started to co-operate identity.
Finnwell in Ylöjärvi Finland. The Group (and later Lumene) Europe-wide consumer magazine study. with the Finnish Association for
company name was changed to as part of Farmos consumer
Cutrin in 1978. division buyout
This recognition boosted Lumene’s
international brand awareness.
Nature Conservation.
2020
In Finland Lumene has
the leading beauty brand
1998 2005 2015 position in Sustainable
Lumene Supplier Code of Brand Index.
ISO 14001 – Environmental Equality and
Conduct was introduced.
management system non-discrimination plan
was launched.
13ENVIRONMENTAL POLICY
• Lumene has a fully comprehensive • We work in several areas to reduce the
approach towards the circular economy. environmental impact of our packaging.
Our goal is to create a sustainable front- Our aim is to improve packaging material
runner product portfolio in accordance recyclability and provide recycling
with circular economy principles. We aim information for our consumers. We also
to improve the sustainability of each new work to reduce packaging material
product compared to the previous launch. volume or replace them with more
That´s the way we want to support our sustainable options. We are constantly
consumers and customers in their request looking for new ecological materials.
for more ethical and sustainable lifestyles.
• We are on a journey towards carbon
• Nordic nature is our inspiration as well neutrality by the end of 2025. The most
as source of raw materials. As our brand relevant ways to affect our climate impact
has always respected nature being at the is to avoid & reduce our CO2 emissions
heart of our philosophy, we continue to and compensating what is left. It includes
support Nordic nature preservation. performance of technologies, processes
and products over their life cycles. It also
• Our products are formulated with one
guides minimizing and recycling waste
foot in the wild Nordic nature and
and using resources efficiently.
one foot in the lab – product safety,
effectiveness, sensorial properties,
and consumer preferences in mind.
Our strategy is to formulate as natural
products as possible, with ingredients
developed from wild Nordic plants
pioneering side streams of other
industries. We avoid substances with
potential environmental or safety
concerns. We care about what we leave
out of our formulas as much as what we
put in.
14DEVELOPMENT
GOALS
(ALIGNED WITH UNITED NATIONS)
The Sustainable Development
Goals (SDCs) is a set of 17 global
goals provided by the United
Nations. Lumene Group supports
all 17 Sustainable Development
Goals in its sustainability work.
The 2030 Agenda for
Sustainable Development,
adopted by all United Nations
Member States in 2015, provides
a shared blueprint for peace and
prosperity for people and the
planet – both now and into the
future.
We have chosen ten most
relevant goals where we can
make the biggest impact
through our operations. These
goals are implemented in our
sustainability strategy and daily
business.
15
15Our purpose is to sustainably bring Most of our customers and personnel Clean water is the most essential We ensure our profitability and We boost innovations. We develop
the power of wild Nordic nature to are female. We want to do our part ingredient in our products. Sustainable promote economic growth in Finland. them, also with our partners and put
help everyone achieve their own idea and promote gender equality and water management is a top priority for We strive to increase our positive them into practice. Our principle is
of beauty. We aim to improve mental human rights. In our communication, our operations and we promote the contribution to society. For example, to work in a sustainable and long
and physical health and well-being of we boost the positive Nordic ethos of sustainable use of water. We support we promote Finnish industry and term manner in everything we do.
our customers and personnel. gender equality. nature conservation by protecting domestic employment. Our factory is constantly monitored
wetlands and their fragile ecosystems. and audited in order to ensure
sustainability.
While using natural resources and Climate change effects forest We help to conserve oceans and Forests and wetlands provide us clean As a responsible corporate citizen we
side streams in a sustainable way, we ecosystems in Finland as well as the marine environment by reducing natural raw materials for products want to drive execution of sustainable
also enhance circular economy. We availability of natural raw materials. We micro-plastics and raw materials and packaging. Sustainable use of development. We believe that
help our customers in sustainable use will passionately fight against climate harmful to aquatic life in our products. wetlands and water resources means together we can achieve more than
of our products and efficient recycling. change and we want to take concrete for us that natural raw materials will alone.
actions in doing so. Besides reducing be used efficiently. For example, we
our direct CO2 emissions, we are utilise sidestreaming as a source of
also working to minimise our indirect raw materials.
emissions.
16SUSTAINABILITY AT
LUMENE GROUP
17SUSTAINABLE SUPPLY CHAIN
Sustainability is the cornerstone of Lumene Group’s business, covering concrete actions from product
concept design and raw material manufacturing to retaining consumer satisfaction while being a good
corporate citizen. As a cosmetics industry company it is particularly essential to ensure product quality
and safety throughout the whole value chain – from product development to production and use.
Focus on growing consumers’ Post use phase Research and development
understanding of sustainability We want to reduce the environmental Consumer expectations and trends
Beauty and cosmetics play a central impact of our products by promoting are taken into account in product
role in self-expression and wellbeing for circular economy. We aim to develop development. Raw materials, packaging
many consumers. We support growing biodegradable formulas and decrease and design choices made during the
our consumers understanding on how the amount of materials used in our packs product development determine the
sustainability and circular beauty are part and increase the use of recycled materials. environmental impacts of the product.
of building a better future for all.
Customers and
professional use
The main environmental footprint of
Cutrin customers is caused by using
warm water to rinse off our products
at the hair salons. The best way to
minimise this is through product Transport Production Material production
development and information sharing. Logistics and transport play an important The corner stones of sustainable business During the life cycle of a product, the
role in Lumene Group’s business operations. are maintaining competitiveness, reducing raw material production and packaging
Transport optimization and careful our ecological footprint and taking care of generate a large part of the environmental
selection of partners helps in reducing employee wellbeing. impact and risk to violate human rights. By
the environmental impact. Transportation local production and sourcing we support
Majority of contract manufacturer factories
emissions can be reduced especially by local employment and economic growth.
are audited to make sure all these are
avoiding air transport.
taken care of.
18OUR FOCUS
Our sustainability themes describe the most important social,
environmental and financial impacts we have on the surrounding
society. A survey was conducted to find out stakeholder
expectations on Lumene Group’s sustainability work. Together
with the megatrends in our operational environment we
identified our most critical sustainability topics to meet the
stakeholder expectations.
Altogether we identified 12 relevant ingredients and boosting innovations. The
sustainability topics, where we have topic gaining most individual comments,
major influence. They have been grouped both negative and positive, was packaging
into sustainability themes according to and its sustainability.
a materiality analysis. The analysis was Our sustainability work is based on
conducted according to GRI standard stakeholder expectations, megatrends
guidelines. and our own operational experience. Our
We conducted the stakeholder survey in sustainability task force consisting of key
January 2020 and again in January 2021 to individuals weighed the importance of the
better understand our stakeholders’ point of sustainability topics to different stakeholders.
view. In 2021, the online questionnaire gained According to this materiality analysis, the
345 replies from our ten most important sustainability topics were grouped into four
stakeholder groups. The sustainability topics themes. To create a maximum sustainability
rated most important by the stakeholders impact, we focus on these topics as
were product safety, use of natural described in the next chart. 19Sustainable and innovative products
1. Product safety
2. Sustainable and innovative formulations
3. Sustainable and innovative packaging
7
HIGH
Engagement and communication
RELEVANCE TO THE SOCIETY
4. Consistent dialogue with our consumers 1 4
9 3
2 5
MODERATE
5. Collaborative and open communication with our customers
6. Transparent and value-based marketing communication 8
Sustainable production
7. Carbon neutrality 11 10
8. Efficient waste management and recycling
9. Good water resources management 12
LOW
We are responsible corporate citizens
6
10. Good corporate citizenship
LOW MODERATE HIGH
11. Boosting employment and stakeholder value
12. Investing in work community RELEVANCE TO THE STAKEHOLDERS
20OUR SUSTAINABILITY THEMES
Sustainable and Engagement and communication
innovative products
We engage in open, consistent and mutually
We take special care of product safety and beneficial dialogue with our customers and
do not conduct animal testing. We ensure consumers. To improve our operations and
sustainability throughout our supply chain. create products which enhance the well-
We utilize sustainable and wild-crafted being of our consumers, we need continuous
ingredients in our products. We constantly consumer feedback and dialogue.
develop our packaging solutions to make them
more sustainable.
Sustainable production We are responsible corporate citizens
Our target is nothing less than carbon We act in compliance with laws, but we want
neutrality and we continuously reduce to do more. We do business openly and want
emissions in our operations. In addition, we to boost employment in Finland. This is why
invest in efficient waste management and we choose local partners and subcontractors
recycling. We utilize clean Finnish water in our if possible. We also invest in the wellbeing and
products and production – that is why water safety of our staff.
resource management is our top priority.
21SUSTAINABLE AND
INNOVATIVE PRODUCTS
22SUSTAINABLE AND INNOVATIVE PRODUCTS
SUSTAINABILITY ASPECT GOALS FOR 2020-2025 STATUS 2020
1. Zero serious undesirable effects
2. Zero remarks from authorities related to product safety, labelling or 1. Lumene: 0; Cutrin: 0
product composition 2. Lumene: 0; Cutrin: 0
PRODUCT SAFETY
3. Lumene: Reduction of skin reactions from average 12 to 6 per 3. Lumene: 16
million products 4. Cutrin 3
4. Cutrin: Keep the average 3 cases per million products
1. Increase the number of Nordic ingredients by 10% annually
2. Increase the volume of Nordic ingredients used in Lumene product 1. Lumene + Cutrin: + 18 %
portfolio from 80 tons to 100 tons by 2025 2. Lumene + Cutrin 70 tons (Less sales compared to 2019)
3. Average 95% naturally derived ingredients in skin care products (full 3. Lumene: 90 %; Cutrin: wash and care to be evaluated 2021
SUSTAINABLE AND assortment). Cutrin to evaluate naturally derived ingrdients %-share of 4. Lumene: 3; Cutrin: 1
INNOVATIVE FORMULATIONS wash and care products 2021. 5. Lumene: all skin care 100 % vegan. Beeswax and carmine are used in
4. One patent application filed annually related to Nordic ingredients in some eye and lip make up products. Cutrin: all other product lines exept Muoto
cosmetic products (styling waxes and Classic curl perm lotions ) and Aurora (some oxidative hair
5. Full Lumene assortment vegan by 2025 (including makeup category) colours) are 100 % vegan.
and Cutrin wash and care and styling products by 2025
Lumene:
1. 5% plastics of recycled origin and 0% of biobased.
2. 65% widely recyclable plastics (takes into account only the plastic material,
not structure).
1. Lumene & Cutrin: 80% of packaging material is made of recycled
3. 9% of used folding boxes were FSC® certified.
plastics or plastics made out of renewable raw materials (bio-based,
biodegradable material) by 2025. 4. Recycled and FSC® certified board study finished in the end of 2020. New
2. Lumene & Cutrin: Maximize the recyclability of all packaging. material with 77% recycled fibres and with FSC® certification to be implemented
Lumene: Make strategical skin care packaging 100% recyclable by 2025. in the beginning of 2021.
Cutrin: Make inhouse packaging 100% recyclable by 2025. 5. Plastics used per one product was 6% more in 2020 compared to 2018 due to
SUSTAINABLE AND 3. Lumene & Cutrin: Only fibre based FSC® certified carton product mix that was sold during pandemic.
INNOVATIVE PACKAGING board by 2025.
4. Lumene & Cutrin: Recycled and FSC® certified board in Cutrin:
shippers by 2025. 1. 10% plastics of recycled origin and 0% of biobased.
5. Lumene: 20% less packaging plastic by 2025 (compared to year 2018). 2. 93% of used plastic is widely recyclable (takes into account only the plastic
6. Cutrin: Study switching to using partly recycled metal in cans and
material, not structure).
metal tubes.
3. 11% of used folding boxes were FSC® certified.
4. Recycled and FSC® certified board study finished in the end of 2020. New
material with 77% recycled fibres and with FSC® certification to be implemented
in the beginning of 2021.
6. Currently all metal used is virgin material.
23THE JOURNEY OF CLOUDBERRIES
1. Picking the berries 2. Berries are primary 3. Extraction of berry side 4. Development of multiple
from Finnish nature used in food industry streams valuable skin care ingredients
5. Product development at 6. Testing of product safety 7. Production takes place in 8. Sustainably produced skin
Lumene laboratories and efficacy Espoo factory care, crafted with Finnish
wilderness
24FROM NATURE TO YOUR SKIN
AND BACK, THIS IS THE LIFE
CYCLE OF A LUMENE PRODUCT
We are proud to have a unique and sustainable relationship with
Nordic nature. In order to maintain it, we pay close attention
to the entire life cycle of a product. We are specialized in using
ingredients developed from Nordic plants in our formulations.
For example, our new anti-age skin care range NORDIC BLOOM
[LUMO] is formulated with Nordic cloudberry seed oil which is
upcycled from food industry side-stream.
Nordic nature as a source of raw materials For example, many of our raw materials
Nordic nature is at the heart of our come from peatlands. That is why we work
operations. We respect it and are inspired together with the Finnish Association
by it. In fact, one of our main sustainability for Nature Conservation in its efforts to
goals is to increase the amount of Nordic preserve peatlands, specifically Savansuo
raw materials used in our products. Many of and Isovuoma.
our ingredients are developed from Nordic
plants and our focus is on using wild-crafted Product development and sustainable
plants and berries. Thus, nature is allowed sourcing
to regenerate, and not become depleted. We have used cloudberry seed oil in
However, as we continue to transform pure our products for 20 years and have also
ingredients into high-quality products, we patented this innovation together with
have to ensure that the northern natural our north Finnish partner Aromtech. Food
environment stays thriving. industry by-product, cake of cloudberry
25seeds and peels, is used as raw material In fact, our Watersmart programme from Nordic wood raw material. To make a
for cloudberry seed oil production. The helped us reduce water consumption by 24 smaller environmental impact, we no longer
oil is extracted from the cake using % between 2008–2019. We use renewable use plastic wrap around our boxes.
environmentally friendly technology that water-power and district heating, which
does not contain solvents. After seed oil both are 100% emission-free. Society and partners
extraction, there are still valuable skin care This is our time to give back. We greatly
active ingredients left in the material, which Product use and consumer engagemenet value our subcontractors and partners,
can be recovered by glycerine extraction. In At this stage, the product is ready for who help us turn one person’s waste
the end, what is left of the berries is used in consumer use, and we continuously interact into another person’s treasure. One of
animal feed. with consumers to listen to their feedback our sustainability goals is to use more
and integrate it into our processes as much side streams as raw material sources. In
Raw materials as possible. NORDIC BLOOM [LUMO] the making of this product, we have also
In addition to cloudberry seed oil, this products are vegan and up to 98 % collaborated with Aromtech, Kiantama and
product range contains also other nature- naturally derived, which are important Eevia for the berries.
derived raw materials from Finland: sea qualities to our customers. We do not To attain the goal of circular economy
buckthorn berry oil, lingonberry seed oil, engage in animal testing. To make recycling and closed circuit, we invite our consumers,
lingonberry extract, lingonberry berry water easy for consumers, our packaging includes partners, and the community to take part
and Arctic spring water. Lingonberry berry material symbols. This product is included in our sustainability journey. In the future,
water is a side stream from berry juice spray in the recycling guide on our website that Lumene strengthens its position as the
drying process in the Finnish food industry. covers our entire product portfolio. Nordic pioneer in the circular economy
Lingonberry extract is upcycled from a within the beauty industry. We continue to
press cake, food industry side-stream, full of Recyclable packs support sustainable development practices
peels and seeds. This is a great example of Although the product runs out after it has and aim to reduce carbon dioxide emissions
upcycling high-quality raw materials from an been used, it is not the end of its life cycle. at our factory.
industrial side stream. The creams are packed in a new 50 ml jar
which is fully recyclable and about 45 %
Sustainable production lighter than our previous jar. The liner of the
Like most of our products, this product lid is removable for recycling as well. The
range is manufactured in Lumene’s factory tube is made partly from recycled plastic.
in Kauklahti, Espoo. The tap water used The glass bottle is recyclable after use and
in this product is purified with recently the pump has been optimized for recycling
updated machinery designed to optimize as well. All the cartons are made of FSC®
water use. certified cardboard made in Imatra, Finland
26PRODUCT SAFETY
Consumer safety is the main principle in the developing,
manufacturing and marketing our products.
EU Cosmetics Regulation, the most in cosmetic development. Product stability
comprehensive regulation in cosmetics and compatibility of the formulation with the
industry today, requires cosmetic products packaging is evaluated to ensure that the
to be safe for human health when applied product is safe and pleasant to use during
under normal conditions of use. Safety of its entire lifespan. Microbiological quality
all Lumene Group products is confirmed by is evaluated, and preservation efficacy is
a qualified safety assessor. As EU cosmetic confirmed with microbiological challenge
regulation requires, we do not carry out or testing. Each product is dermatologically
commission animal testing on raw materials, tested to ensure that the formulation is kind
ingredients or Lumene makeup and skincare to the skin.
products or Cutrin hair cosmetics at any Depending on the effect claimed,
point in the product development or efficacy studies are performed to prove the
manufacturing process. product efficacy. Efficacy testing is done
Cosmetic product safety is based on in co-operation with external laboratories
the safety of the ingredients it contains. specialized in cosmetic efficacy testing.
Exposure, characteristics, stability, Consumer testing panels are also used to
microbiological quality and toxicological ensure positive consumer perception.
profile of each ingredient are evaluated to Special care is taken when preparing
ensure that they do not pose any risk to the product labelling. It contains all relevant
consumers. information on proper and safe use of the
In addition to evaluating the different product, list of the ingredients, durability as
ingredients separately, the safety of the well as batch numbering for traceability.
final product is also assessed. Our testing After the development phase, products
procedures are based on long experience are manufactured according to ISO 22716
27(Cosmetics, Good Manufacturing Practices, consumer effects.
also known as cGMP) which is a globally We follow the latest studies and research
recognized standard for cosmetic product regarding the safety and environmental
safety. It gives guidelines for the production, effects of cosmetic ingredients and
control, storage and shipment of cosmetic packaging materials. In case new discoveries
R&D
products. are made in our scope of materials we will
We carry out various types of safety-related research
Once the product has been launched to reassess the use and aim to replace the during the product development. We analyze trends and
market, performance is monitored to further materials. take special notice of consumer satisfaction. A safety
assessment is performed for all products.
confirm its safety. In case of claims our expert There has been no non-compliance with
team evaluates causality and severity. Every regulations nor voluntary codes concerning
case gets reported. We also analyse trends the health and safety impacts within the
and special care is taken if some product or reporting period.
product group shows an increase in claims.
In each case R&D starts corrective and
preventive actions. During this reporting
period reported skin reactions have been
rare. Serious undesirable events were not PRODUCTION
identified at all. There have been 16 reported ”Reported skin reactions are We follow Good Manufacturing Practice (cGMP) in the production
to ensure the products meet all the requirements set for them in
skin reactions per million sold Lumene
products on average and 3 for Cutrin. It
rare. On the average, there terms of quality and safety. The quality of the products is ensured
at the production stage by co-operation between production and
is not possible to avoid absolutely all skin has been 13 reported skin quality assurance. cGMP is certified ISO 22716 and Lumene has
ISO 9001 and ISO 14001 certification.
reactions; however the causality assessment reactions per million sold
is strictly individual and relates to individual
Lumenen products during
2015-2020.”
LUMENE: REPORTED SKIN REACTIONS
PER MILLION SOLD PRODUCTS
CUTRIN: REPORTED SKIN REACTIONS
20 PER MILLION SOLD PRODUCTS
15 USAG E
6 After the products are released on the market, we continue
10 to make Post Market Surveillance (PMS) to monitor the
4 safety of our products. All customer claims relating skin
reactions are evaluated by an expert team. If some products
4
2 show on increase in amounts of claim, R&D starts corrective
and preventative actions. There have been zero serious
0 0
undesirable effects.
2015 2016 2017 2018 2019 2020 2018 2019 2020
28WE AVOID ALL FORMS
OF ANIMAL TESTING
Although animal testing of cosmetic products has been banned in
the EU for several years already, it still seems to be a topic which
is causing a lot of discussion. Therefore, we felt it is important to
open this matter further.
In the EU, animal testing of final cosmetic logo on labelling to ensure that the product same animal testing ban principle for all
products has been banned since 2004. is not tested on animals. We also often get products beyond the European borders. In
Animal testing of cosmetic ingredients inquiries why Lumene or Cutrin are not China, for example, Lumene products are
was banned in 2009, except for repeated- included in the lists of organizations that distributed and sold exclusively through
dose toxicity, reproductive toxicity, and promote animal testing ban. We value the online cross-border trading platforms
toxicokinetics which were allowed until effort of these organizations, but we rely which do not require animal testing. We
2013. After that, testing of finished cosmetic on the EU legislation that sets the policy deliberately chose to limit our distribution
products and cosmetic ingredients on for businesses, and as a Finnish company, through cross-border trading so as not
animals has been prohibited in the EU. we comply with the legislation. We do not to be subject to the mainland Chinese
Cosmetic products sold on the EU market carry out or commission animal testing on registration process, and therefore avoid all
are not tested on animals, regardless of raw materials, ingredients or final products forms of animal testing.
wherever the products are manufactured at any point in product development It should be mentioned that during
and whether “not tested on animals” is or manufacturing process. In Finland the recent years, there has been positive
claimed on the product labelling or not. In the legislation regulating the cosmetics development in this area as many new
fact, claiming “not tested on animals” can be industry is enforced by the Finnish Safety countries are phasing out animal testing.
considered misleading as it suggests that and Chemicals Agency (Tukes). This also Even China which has been well known
other products placed on the EU market includes monitoring that no animal tests are for mandatory animal testing. These are
would be tested on animals, which is not carried out. important steps forward and we at Lumene
true. Outside the EU, animal testing is still are pleased to see it happening.
Despite of the above, many consumers required by authorities in many countries.
still look for “not tested on animals” claim or However, Lumene and Cutrin apply the
29LUMENE QUALITY POLICY
Roots Partners
We are committed to stay true to our We focus on choosing the right suppliers,
authentic Nordic heritage and Pharma roots who comply with our quality requirements,
by producing high quality products, such as our Lumene code of conduct, and build
naturally derived skincare, skincare infused transparent partnerships with them.
makeup and professional hair care products,
for our customers. Everyone
Lumene’s quality policy translates into
System/Standards a holistic approach that engages all our
Our top priority is to offer consumers employees day in, day out, for every
products that meet both their expectations product we make. Quality is everyone’s
and our quality and safety standards. responsibility.
We have certified ISO 9001 and cosmetic
GMP audited yearly by external party. We
are continually improving our processes
based on these audits and by enhancing
staff competences and awareness.
Quality
Quality
Our top priority is to offer consumers System/
products that meet both their expectations Roots
Standards
and our quality and safety standards.
We have certified ISO 9001 and ISO
22716 (GMP). GMP is audited yearly by Everyone Partner
external party (DNV) and compliance is
also confirmed by Finnish authority. We are
continually improving our processes based
on these audits and by enhancing staff
competences and awareness.
30FORMULATIONS
AND INGREDIENTS
Lumene’s beauty philosophy is rooted deeply in Finnish culture
and values. It has a close relationship with pure and diverse Nordic
nature. The environment well-being is extremely important to us
since our product development depends heavily on natural origin.
Cutrin is the pioneer and the original specialist in Nordic hair. As
Nordic hair specialist, Cutrin is dedicated to formulate for the
specific needs of fine and fragile Nordic hair and sensitive scalp,
for hairdressers and consumers. Nordic weather conditions are
also considered to avoid hair damage due to freeze and extreme
temperature variations.
Lumene strategy is to formulate as natural in utilizing ingredients derived from wild
products as possible, with Nordic ingredients berries and other Nordic plants in cosmetic
developed from wild Nordic plants. We care formulations. Nordic plants have unique
about what we leave out of our formulas properties due to the harsh conditions
as much as what we put in. Because of and unique Nordic cycle of light, which
the essential role of technical products in boosts the production of antioxidants in the
Both Lumene and Cutrin are Cutrin assortment, naturality of formulas and berries and plants. Packed with antioxidants,
performance has to be in balance. Lumene vitamins, omega fatty acids, minerals and
specialized in utilizing Nordic and Cutrin aim to improve the sustainability phytosterols their natural strength is
ingredients derived from wild berries of each new product compared to the unmatched. The positive effects of Nordic
and other Nordic plants in cosmetic previous launch. plants have been a well-known fact for
Both Lumene and Cutrin are specialized hundreds of years but only during the past
formulations.
31few decades this traditional knowledge has berries do not have to be picked just to Many of the Nordic ingredients have been
been scientifically evaluated – and proven supply the cosmetics company. By using
developed from side streams of food and
right in many cases. side streams, we also promote local
Ingredients developed from hand- partnerships and reduce waste. forest industry – also known as upcycling.
picked berries (Cloudberry, Bilberry, In 2020 we developed a new antiaging
Crowberry, Cranberry, Lingonberry) with line Lumene Nordic Bloom [LUMO] for
extraordinary & highly potent antioxidants mature skin. As a main Nordic ingredient, 100000
and other caring ingredients from e.g. Pine, we are using Nordic Berry Pre-Retinol
80000
Spruce, Birch, Heather, Nordic cotton, Complex, which contains Sea Buckthorn
Chaga, Oat, Meadowsweet, Red Algae Oil and Cloudberry Seed Oil. This unique 60000
etc. are an essential part of Lumene’s and Nordic Berry Pre*-Retinol Complex. (*Pre
Cutrin’s formulas for visibly luminous, = precursor of retinol) is Lumene’s answer 40000
hydrated and nourished skin and hair. to the current retinol like -alternative
20000
We continuously aim to increase both market trend. Our Nordic Berry Pre-Retinol
the volume and diversity of local Nordic Complex has retinol-like anti-aging benefits 0
ingredients in our formulations. In 2020, due to *beta carotene (also known as 2015 2016 2017 2018 2019 2020
the total volume of Nordic ingredients pro-vitamin A): sea buckthorn berry oil
Nordic raw material usage / kg
was about 70 tons, covering 40 different and cloudberry seed oil are rich in beta
Nordic raw material nbr
ingredients. In 2020 we added the following carotene. Studies have shown that topical
new Nordic ingredients into our ingredient beta carotene is converted into retinyl
portfolio: willowherb, sea buckthorn vinegar, esters by human epidermis having retinol-
oat butter, crowberry water and fermented like effects on skin. USAGE OF MICROPLASTICS KG
oat extract. We also always have few new 4500
Nordic ingredients in the R&D phase. Cutrin has recently launched Vieno 4000
Many of the Nordic ingredients have sensitive conditioning spray which is a 3500
been developed from side streams of fragrance-free leave-in care spray for hair 3000
food and forest industry – also known developed in co-operation with Finnish
2500
as upcycling. About half of our Nordic Allergy, Skin and Asthma Federation. This
2000
ingredients are based on Nordic side leave-in conditioner provides long-term
1500
streaming. We are cosmetic pioneers in the hydration and makes hair soft and easy to
circular economy and have used ingredients manage. It is empowered by Nordic cotton 1000
developed from industry side streams for extract that helps to moisturize both hair 500
about twenty years already. As an example, and scalp. Formula contains 98% of naturally 0
2014 2015 2016 2017 2018 2019 2020
we obtain cloudberry oil from the press derived ingredients.
cake leftover in berry juice production. It
brings a significant sustainability advantage:
32Prioritizing natural origin switch using Mass Balance quality whenever Unfortunately replacing synthetic thickeners
In addition to Nordic ingredients, the it is possible. with natural alternatives is not best possible
Lumene and Cutrin quality is based on In Cutrin assortment shampoos and choice for professional hair care products.
other carefully selected ingredients. We conditioners have an essential role. Cationic Finding more natural solution and well
aim to formulate our products as natural as surfactants are typically plant oil based, performing alternatives to thickeners is one
possible. However, we do not compromise but some of them have poor biodegrability, Cutrin R&D target.
effectiveness, safety or sensory properties because they act also like preservatives. Hazard assessment of cyclic silicones
of our products. The average share of To get a variety of hair conditioning has been subject to ongoing activities
naturally derived ingredients in our most properties into final products we have during recent years. Lumene skin care
strategic skin care categories has increased to use a selection of different quats and formulations are formulated without cyclic
from 88% to 95% during the last years. Our methosulfates. Surfactants are at the heart of silicones even though they are used in
new goal is to further increase the share of shampoos. For commercial reasons, we have some of the facial makeup formulations.
naturally derived ingredients in all our skin both sulfate-free and SLES based chassis. Our R&D is continuously investigating
care formulas up to 95% (average) by 2025. PEG derivatives and ethoxylates lates are solutions to replace cyclic silicones by
Currently the figure is 90%. Cutrin aims accepted for their good performance. naturally derived alternatives while retaining
to count the content of naturally derived Naturally Cutrin is evaluating and testing the same sensorial properties. Our aim
ingredients in wash and care formulas during new more sustainable options. is to discontinue using cyclic silicones in
2021 and based on results, define the new We have replaced micro-plastics all products within five years. In 2020 we
goal. in all of our rinse-off formulations with launched the first make up foundation
Palm oil and its derivatives are natural more sustainable alternatives of natural called Lumene Stay foundation and also
origin ingredients commonly used by the origin. This was done proactively, prior to face makeup primer products without cyclic
cosmetic industry. Lumene does not use regulatory restrictions. For example, we use silicones and we will continue the same
palm oil as such but uses palm kernel Finnish birch bark powder as an exfoliating strategy with other Lumene foundations and
oil derivatives in certain emulsifiers and ingredient in our new cleansing products. primers. Volatile silicones are not used in
emollients. Palm kernel oil is very difficult We are continuously working to replace Cutrin formulas.
to be totally replaced because of its special micro-plastics also in other product Protecting skin against harmful rays of
composition. Our suppliers of palm kernel categories despite the smaller sustainability sun is essential which is why sunscreens are
oil derivatives are members of RSPO impact (due to significantly smaller volume). one important element in sun protection.
(Roundtable on Sustainable Palm Oil), In addition, our aim is to replace man-made However, most synthetic UV filters are the
an organization dedicated to preserve thickeners – making formulations richer, subject of debate when it comes to their
biodiversity and increase the volume of more stable and sensorial – with natural environmental impacts. We aim to reduce the
sustainably produced palm oil. In 2020 we alternatives. Naturally derived water-soluble usage of synthetic UV filters and eventually
replaced several of our raw materials with thickeners like xanthan gum, carrageenan, replace them with mineral UV filters,
Mass Balance certified quality, including cellulose based thickeners and mineral zinc oxide and titanium dioxide in all our
SLES and various emulsifiers and emollients. thickeners like silica, are examples of natural sunscreen products. The main challenge in
Work continues during 2021 and the aim is to origin thickeners used in our formulations. this development work is to keep the same
33consumer acceptance with mineral filters as the landscape. Carefully selected safe
with synthetic. We have recently launched ‘man made’ ingredients including nature
a foundation with mineral SPF30 filters and indentical materials enhance and balance
will launch several face creams with mineral the sensory experience. When using
SPF 30 in 2021. synthetic ingredients, the number of
Our products are formulated with one allergens in the fragrance can be controlled.
foot in the wild Nordic nature and one foot In order to ensure consumer safety, the
in the lab – product safety, effectiveness, latest scientific research of ingredients is
sensorial properties, and consumer carefully followed and Lumene and Cutrin
preferences in mind. For this reason, we have pro actively removed potentially
also use safe and well evaluated man-made hazardous ingredients - such as nitro-
ingredients in combination with natural musk, polycyclic musk, butylphenyl
origin ingredients. methylpropional, vetiveryl acetate and
This applies especially to preservatives HICC. Benzyl salicylate is in process to
but also for example to mica, which is be removed from formulations before
a naturally-occurring mineral used in regulatory enforcement. Both Lumene
pigmented products. It mainly originates and Cutrin are also offering several
from socially and economically challenged unperfumed products, which are developed
regions, which makes it difficult to in cooperation with the Finnish Allergy,
completely assess even though our Skin and Asthma Federation and more
suppliers are committed to our Supplier unperfumed will be launched in nearest
Code of Conduct which promotes human future.
rights. Over the past five years, we have
reduced the usage of mica by a third. Our
aim is to replace Indian mica with synthetic
mica and mica sourced from the USA. Using
these qualities is an obvious choice in new
product development projects but we also
aim to phase out mica sourced from socially
and economically challenged regions step
by step.
In Lumene and Cutrin fragrances we
have a blend of vegan-suitable; natural,
nature identical and synthetic ingredients.
Essential oils are used to add depth,
complexity and reflect the raw nature of
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