Sustainability has been driving new developments in the beauty industry at every angle, from product formulation to business operations. The result of this is evident in the numbers: The sustainable beauty market was currently valued at $190.7 billion in 2024 and is projected to reach $433.2 billion by 2034 at an 8.6% CAGR. With numerous beauty brands centered on sustainability and beauty companies adapting to consumer demands for transparency, sustainability initiatives have accelerated as global concern for the climate crisis rises.
Across the industry, brands and big business players want to lead the sustainability charge, and Amorepacific is doing just that. The conglomerate recently achieved 100% renewable electricity across all operations as part of the RE100. RE100 is a global initiative led by the Climate Group and the CDP (formerly the Carbon Disclosure Project) to motivate companies to transition operations to 100% renewable energy. There are currently over 400 RE100 companies spanning several industries and countries. RE100 is driving climate action by inviting organizations to commit to using 100% renewable energy in their operations. Amorepacific was the first Korean beauty corporation to join the initiative in 2021, setting out to become powered by renewable energy by 2025.
"Going forward, we will continue to advance our renewable electricity portfolio with instruments that offer greater additionality to respond to the climate crisis,” said Sunchul Kwon, Head of Safety & Environment Division for Amorepacific, in a press release. “We will fulfill our responsibility as a company leading sustainability management by expanding the foundation for reducing carbon emissions across the entire supply chain in collaboration with our partners."
Amorepacific reached its renewable energy goal through a combination of power purchase agreements (PPAs), virtual power purchase agreements (VPPAs), and expanded on-site renewable energy generation. Power purchase agreements, including VPPAs, are long-term contracts between independent clean energy suppliers, typically solar or wind, and buyers.
Amorepacific has signed both PPAs and VPPAs to transition to renewable energy. While renewable energy is delivered directly to the buyer under a PPA, energy under VPPAs is sold back into the market. The buyer and energy suppliers settle the difference between the market price and the fixed price. PPAs are regulated by both federal and state governments. In the US, agreements are regulated by the Federal Energy Regulatory Commission and are approved by the Minister of Trade, Industry and Energy in South Korea.
According to the International Energy Agency (IEA), South Korea is currently one of the few IEA member countries to have a sustainability goal enshrined in legislation. In 2021, South Korea’s Carbon Neutrality Act set a legally binding goal of reaching nationwide net-zero carbon emissions by 2050. The act also included a target to reduce greenhouse gas emissions by 40%.
Amorepacific’s recent achievement was driven by these nationwide, policy-pressured sustainability efforts. Oliver Wilson, Head of RE100 and Energy Operations for the Climate Group, said in a press release, “Amorepacific's leadership sends a powerful signal to corporates and policymakers that the future is renewable. We look forward to working closely together to continue this mission and unlock renewables access in South Korea."
Among other beauty corporations that are part of RE100, Estée Lauder achieved net-zero emissions and sourced 100% of the energy for its global operations from renewable sources in 2020 through VPPAs. L’Occitane joined RE100 in 2017, and as of 2024, 97% of its operations are powered by renewable electricity.
Company actions globally will continue to respond to policy changes as PPA and VPPA are increasingly used by beauty companies to achieve sustainability goals. Going forward, the industry is sure to remain motivated by large-scale corporate sustainability initiatives, such as RE100, to drive change across businesses.