The Impact of ESG (Environmental, Social, and Governance) Factors and Eco-Friendly Trends on the Beauty Industry: A Big Data Analysis of the Past Year

Abstract

This study examines the impact of eco-friendly trends and Environmental, Social, and Governance(ESG) factors in the beauty industry. Recognizing the significance of eco-friendly trends and ESG in the sector, the research aims to achieve its objectives by extracting key keywords using big data and analyzing them through social network analysis. The data utilized for this study covers the period from June 1, 2022, to May 31, 2023. The findings of this research reveal that both eco-friendly trends and ESG have a substantial influence on the beauty industry as a whole. Firstly, eco-friendly trends have brought about changes in beauty product development and production methods. Increased consumer environmental consciousness has led to a higher demand for natural ingredients, renewable materials, and recyclable packaging. As a result, numerous beauty brands are launching eco-friendly product lines and adopting environmentally sustainable production practices, promoting these initiatives in their actual beauty products. Secondly, ESG factors significantly impact the business operations and sustainability of beauty industry companies. Companies that demonstrate outstanding performance in environmental, social responsibility, and governance aspects are more likely to gain greater trust and support from consumers and investors. Complying with social values, ethical principles such as opposing animal testing, ensuring product safety, fair trade, diversity, and inclusivity, enhances companies' competitiveness. Lastly, this research finds that eco-friendly trends and ESG not only affect the beauty industry itself but also influence investment decisions. ESG evaluations assist investors in assessing a company's long-term value creation capability and risk management. Business strategies that consider ESG factors have the potential to attract investor interest. It is important to note that this study is based on current trends and data, but the beauty industry is continuously and rapidly evolving. Ongoing updates to research findings and further investigations into new trends are necessary.