How AS Watson is Driving Circular Supply Chains

AS Watson, the world’s largest international health and beauty retailer, operates 12 retail brands across 31 markets.

Its operations predominantly focus on blending offline and online retail to unify the purchasing experience for a customer base that includes 180 million loyalty members.

The company has strengthened its sustainability commitments with a specific target to reduce the use of virgin plastic by 21%.

The ambition to reduce plastic usage involves a renewed pledge regarding its own-brand packaging. The organisation aims to cut virgin plastic in these product lines by 21% by 2030 when compared against a 2022 baseline year.

AS Watson eliminating unnecessary packaging

This commitment covers four specific sources of packaging which the company identifies as areas that could generate the most significant impact.

These areas include product packaging, in-store carrier bags, online business parcels and single-use plastics in warehouses.

To achieve this goal, the retailer aims to eliminate unnecessary packaging, increase the use of recycled plastic and promote recyclable or reusable packaging options alongside expanding refill systems.

Sebastien Pivet, Chief Sustainability Officer and QA Director at AS Watson, says: “Reducing plastic waste is one of the most urgent environmental challenges of our time and retailers have a responsibility to lead this transition.

“By setting an ambitious 21% reduction target for virgin plastic in our own-brand packaging by 2030, we are turning our 185-year legacy of care into clear, measurable actions that cut plastic at source across all our markets.

“By expanding refill and reuse systems and increasing recycled content, we’re making significant progress towards reducing plastic waste from our operations.”

Reducing plastic waste globally

The goal to reduce virgin plastic aligns with the Ellen MacArthur Foundation’s Global Commitment 2030. This commitment provides a blueprint for companies attempting to eliminate plastic waste and pollution.

Over the past decade, more than 1,200 businesses and organisations have united behind this shared goal while utilising the circular economy to build long-term resilience.

The Ellen MacArthur Foundation’s 2030 Plastics Agenda outlines the importance of market transformation and collaborative action over the next few years.

This agenda is backed by leading global companies including Unilever, PepsiCo, UN Environment Programme, Nestlé and L’Oréal.

AS Watson is encouraging businesses, industry peers and partner suppliers to join the agenda. The company intends to work across the value chain to inspire customers to choose sustainable products.

The business believes that through shared industry commitment, the retail sector is able to scale circular packaging solutions and deliver meaningful environmental benefits.

Rob Opsomer, Executive Lead, Plastics at the Ellen MacArthur Foundation, says: “We are at a crossroads. In tackling global challenges, early optimism of what’s possible is increasingly colliding with the complex realities of scaling solutions in a shifting and uncertain world.

“We know the destination. A circular economy, where we eliminate the plastics we don’t need, innovate towards reuse models and new materials and circulate the plastics we still use.

“This offers a root cause solution to plastic pollution with profound benefits for the economy and for nature, as well as for people and societies.”

All sustainability, net zero and sustainable procurement leaders should attend:

• Procurement & Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
  
  
• Procurement & Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22
  

Co-located with Sustainability LIVE, these events brings together CPOs, CSCO, CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Improving beauty procurement strategies

AS Watson has been working to create impact across its global market by implementing changes in packaging for its brands.

In Europe, for instance, its brand Superdrug has redesigned the packaging for the Naturally Radiant range. This redesign involved removing the laminated mirror board.

All cartons in this range are now fully recyclable and FSC certified. Furthermore, every unit now contains at least 30% recycled plastic content.

These procurement adjustments reflect a wider trend in the industry where supply chain leaders look to source materials that lower their Scope 3 emissions and meet consumer demand for sustainable goods.

Celebrating sustainable supply chains

The move toward recycled content and the reduction of virgin materials marks a significant shift in how the retailer manages its supply chain inputs.

Sebastien adds: “As AS Watson celebrates its 185th anniversary, this milestone reinforces the company’s long-standing commitment to making a positive impact across its global operations.

“Sustainability shapes every decision we make and it will continue to guide how we innovate and grow responsibly alongside our customers and communities.”