ESRS S4 – Consumers and End-Users

Consumer

Material Impacts, Risks, and Opportunities

In the double materiality assessment, Beiersdorf has identified impacts, risks, and opportunities in relation to the topic consumer health and safety.¹

Our products offer a wide range of benefits in both skin care and health care, from protection to rejuvenation. However, if a product does not meet our internal standards or comply with regulatory requirements, it may pose the risk of insufficient protection of the health of consumers or end-users. Due to robust procedures for evaluating raw materials, formulations, and packaging, potential adverse health effects are generally confined to individual skin intolerance reactions. Both our potential negative impact and our actual positive impact can affect consumers directly, as well as professionals as end-users who apply our products to their clients.

To understand the needs of vulnerable consumers and end-users, and to safeguard these groups, our product safety assessments are designed to include all consumer types, with specific attention to the needs of those at greater risk. In addition, we monitor and evaluate all adverse reactions reported by consumers in order to identify potential issues and implement improvements to product quality or safety.

Policies Related to Consumers and End-Users

A team of experienced, highly qualified safety assessors and regulatory managers ensures that we meet both legal and our own requirements regarding the quality of our products as stipulated in relevant company policies. These policies provide an encompassing framework to manage our material impacts, risk, and opportunity concerning consumers and end-users.

The team performs all legally required evaluations and approvals of our raw materials, formulas, packaging materials, and product claims to verify their safety and compatibility for consumers. Our safety assessors only approve finished cosmetic products for market release after evaluation in accordance with internationally recognized rules for safety assessment set out in the “EU Cosmetics Regulation 1223/2009” and the requirements of the “SCCS Notes of Guidance” in their twelfth revision from 2023. The latter are published by the “Scientific Committee on Consumer Safety” (SCCS) and are applicable EU-wide.

Processes for Engaging with Consumers and End-Users

Our products for cosmetic and medical skin care and therapeutic applications contribute to the health and well-being of our consumers. This means that we remain in close dialogue with our consumers and end-users to understand current and future needs. In doing so, we also ensure that our products meet expectations and promote holistic approaches to skin care.

At our research center in Hamburg, as well as in our global regions, we regularly engage with consumers, conduct studies and surveys, observe usage habits, and inquire about expectations. By staying close to our consumers, we can glean valuable information about how we can improve our products and packaging and how our products can be designed for quality, effectiveness, tactility, and ease and pleasure of use.

Trained employees and external subjects take part in highly standardized testing procedures and descriptive panels in which they analyze and describe the properties of creams and lotions during and after application, focusing on characteristics like consistency, spreadability, moisture content, and feeling on the skin.

We strive to keep abreast of the latest research and maintain in-depth dialogue with the scientific community, government authorities, and public organizations. Our relationships with product safety and environmental interest groups are just as important. They allow us to actively participate in discussions on critical issues.

Beiersdorf scientists publish findings on skin research in peer-reviewed journals, as listed on our website. We engage with experts and host events with dermatologists and other specialists to promote skin well-being. Beiersdorf sponsors institutions whose aims include disseminating information on dermatological science, such as the German “Information Network of Departments of Dermatology” (IVDK). Research partnerships, like our collaboration with the “German Cancer Research Center” (DKFZ), cover important and diverse fields of consumer health. We actively participate in industry associations such as “Cosmetics Europe” (CE) to promote responsible product care. Additionally, we contribute significantly to international initiatives for consumer safety, e.g., the “International Collaboration on Cosmetics Safety” (ICCS).

Product information is made available to consumers through various channels, including social media, product labels, and information leaflets. This information includes claims, product composition, usage directions, and/or warnings.

Consumers and end-users can inquire about products using the contact details provided with the products and through our brands’ websites. Our Sales teams also offer information regarding the beneficial and appropriate use of our products. For specific product types and applications, supporting information is made available on our website or directly to pharmacies, for example in the form of frequently asked questions (FAQs). On the Beiersdorf websites, we share information that is specifically relevant to our consumers and related to positive and negative impacts on their health and well-being.

Channels for Consumers and End-Users to Raise Concerns

Consumer and customer satisfaction is the basis of our business success. Consumers in all our markets around the world can reach us directly via various communication channels such as social media, email, and telephone hotlines. Under the responsibility of the Vice President Global Quality Management, a global network of “Consumer Interaction” managers ensures that our uniformly high-quality standards for contact with consumers are maintained in the respective markets. In addition, we evaluate worldwide complaints centrally, analyze their causes, and implement optimization measures. Consumers and end-users can also report any complaints or concerns via our whistleblowing system. Details are described in chapter “ESRS G1 – Business Conduct.”

Consumer complaints, including any adverse health reactions, are monitored and evaluated to identify and respond to any potential concerns in quality or product safety. This is required under relevant ”standard operating procedures” (SOPs) and quality manuals.

In the case of a quality defect or a consumer health complaint, our global network of Quality Managers and our international Complaints Management organization analyze the case and initiate necessary measures for rapid adjustment. Our critical complaints and issues management includes handling adverse reactions. The Quality Management team is responsible for evaluating complaints and managing product safety implications according to the corresponding SOP.

All consumer complaints are monitored and compared with baseline rates. Trend analyses are also performed to ensure there are no significant negative impacts on consumers. Complaint patterns with high numbers of undesirable effects or atypical types of adverse reactions immediately trigger an investigation and any necessary corrective and/or preventive actions. Any potential serious undesirable effect is evaluated on a case-by-case basis to ensure that safety measures are in place to protect consumer health.

Data and incidents are summarized in our monthly “Consumer Complaints and Post Launch Surveillance Report.” The baseline for our post-market surveillance data is 2023. In addition, we conduct industry benchmarking, e.g., through the IVDK. These measures to monitor complaints, incidents and related processes are aligned with the above policies directly relevant to our material impacts, risk, and opportunity concerning consumers and end-users.

Consumer and end-user issues can be escalated and trigger further actions by our Quality Management team in accordance with our “Crisis Management Manual.” The Crisis Management team directly informs our CEO and Executive Board of any critical issues. Any legal reporting obligations in the event of serious incidents are always taken into account and, if necessary, implemented in a timely manner.

Actions Related to Consumers and End-Users

Various procedures address and mitigate material risks and negative impacts while enhancing positive outcomes for consumers and end-users. The procedures described above are part of a decision-making process that ensures all identified negative impacts are systematically assessed and addressed with suitable measures.

In addition to the ongoing actions described below that promote the safety and tolerability of our products, Beiersdorf takes actions that are primarily intended to make a positive contribution to the health and well-being of consumers. Our NIVEA, Eucerin, Hansaplast, Elastoplast, and Curitas brands implement local projects that are tailored to the needs and concerns of their consumers. These “Brand Social Missions” aim to strengthen individual health, enable better social connections and promote fairer societies.

Targets Related to Consumers and End-Users

Consumer health and safety targets and benchmarks are managed internally as they are based on sensitive information such as market data and formulation performance. Without comparable data in standardized reporting formats, such as deviations or complaint rates, external publication is of little relevance. Beiersdorf therefore does not publish any specific targets in this area, but reports on all cases of non-compliance.

Our commitment to consumer health and safety is reflected in the implementation of strict processes and standards. Beiersdorf monitors the effectiveness of the measures through three central processes:

• Technical approval of all raw materials and end products

• Compliance with regulatory requirements with the goal of full conformity

• Ensuring skin compatibility through comprehensive testing and market monitoring

Product safety is supported through adherence to international regulations such as the “EU Cosmetics Regulation 1223/2009,” and “EU Medical Device Regulation 2017/745,” as well as through alignment with internal policies such as the “Global Quality Policy” and the “Product Safety Policy.” Further product safety procedures comprise strict quality controls of raw materials, formulations, and manufacturing processes, which adhere to internationally recognized standards such as “ISO 22716 GMP for Cosmetics” and “ISO 13485 for Medical Devices.” By firmly embedding product safety into its processes, Beiersdorf can achieve its targets and systematically develop its actions. At the same time, these approaches play a crucial role in product innovations and Beiersdorf’s market success. They are closely linked to the goals and actions of our R&D organization, including the launch of the “EcoBeautyScore” described above.