Bloomberg

How Decarbonizing Makeup Could Lead to Fossil-Free Aviation Fuel

(Bloomberg) – When Marc Delcourt founded more than a decade ago, he dreamt of transforming the aviation industry by getting rid of fossil fuels. In June, the company launched Last, a makeup brand with eyeshadows in colors ranging from mocha to iridescent lime. Despite the shift, he hasn’t deviated from his initial purpose, he says. That’s because the company has devised technology to make isododecane, a key component of long-wear and waterproof makeup, from plants instead of fossil fuels. And decarbonizing eyeshadow is just the first step.

“Cosmetics will lead the environmental transition because it’s the first oil-based sector that will completely get rid of oil,” Delcourt says. “For us, it’s the starting point.” 

Cream, shampoo, cleaning products, and most makeup are made out of chemicals derived from crude oil. Over the past decade, rising consumer concern over the impact on human health and the environment has pushed the sector toward more transparency and developing so-called clean cosmetics.

But in a little-regulated industry with practically no oversight from independent bodies, such words as “green” and “organic” are often used loosely, says Michelle Wong, a Sydney-based blogger with a Ph.D. in chemistry who writes about the science behind beauty products. Similarly, consumers are often tricked into thinking that plant-based products have a lower environmental impact.

“There are a lot of brands genuinely trying. Whether they succeed or not is another thing,” Wong says. “And then there are lots of brands definitely greenwashing, whether they mean it or not.” 

Global Bioenergies’ first steps took place very far from this debate. In 2008, Delcourt was a biotechnology Ph.D. working on a new prototype of a machine that could make isobutene from beet root, corn, or wheat, instead of fossil fuels. 

Isobutene is a molecule composed of carbon and hydrogen. When combined, these molecules form isododecane, a chemical product used mainly in the aviation industry as a component of aircraft fuel.

In the late 2000s, with the technology to make electric planes still in very early stages, plant-based isododecane was the fastest way to reduce the environmental impact of an industry responsible for 2% of global emissions every year before the pandemic.

But soon, Delcourt realized that making industrial plants that could produce hundreds of tons of isododecane required a multimillion-dollar investment. A kilo of fossil fuel-based isododecane costs around €3 ($3.48), while a kilo of plant-based product could cost around €1,000.

So in 2015, Delcourt started looking for a sector that used isododecane in smaller quantities and that sold the end product at a much higher price. These two characteristics would make plant-based isododecane cost-effective, he thought. That sector was makeup.

Isododecane is a key component of long-wear makeup, a high-end, niche of the cosmetics industry that represents about a quarter of the market and is valued at around €10 billion, Delcourt says.

The biotech company hired chemists specializing in cosmetics and entered an agreement with L’Oréal so the world’s largest beauty company could test its product. While it still plans to go into aviation fuel, it made the cosmetics industry its new focus.

“We were there since the beginning of the adventure,” says Laurent Gilbert, director of sustainable innovation at L’Oréal research and innovation division. “We think it’s really important to accompany the development of initiatives whose technology can be used not just in the cosmetics market, but beyond that.”

In 2019, L’Oréal’s venture capital fund Bold invested €7 million in Global Bioenergies.

The June launch of Last makeup included 12 long-lasting liquid eyeshadows, three waterproof mascaras, and three eyebrow mascaras. In September, 21 liquid lipsticks debuted. They start at €18.

The products are 90% plant-based, with isododecane, vegetable waxes, and olive oil derivates as the main ingredients. The remaining 10% corresponds to pigments that can’t yet be obtained from natural sources. The packaging is made of glass and aluminum, as well as recycled and recyclable plastic and cardboard.

Next year Global Bioenergies wants to increase capacity in its production plant to make several dozen tons of plant-based isododecane. They aim to sell some of it to other cosmetics companies.

“Long-lasting products are flourishing now, partly because they’re associated with the idea that they perform well with masks,” Delcourt says. “For years, people had to choose between products that were of natural origin and products that perform well.”

That’s changing, says Georgie Eisdell, a Los Angeles-based makeup artist. “The products that are coming out are better and better,” Eisdell says. “For me, if a clean product has the same performance level as a not-clean product, then it’s a very easy choice. Why wouldn’t you use the cleaner product?”

© 2021 Bloomberg L.P.

Netflix Estimates ‘Squid Game’ Will Be Worth Almost $900 Million

(Bloomberg) – Netflix estimates that its latest megahit, “Squid Game,” will create almost $900 million in value for the company, according to figures seen by Bloomberg, underscoring the windfall that one megahit can generate in the streaming era. Netflix differs from movie studios and TV networks in that it doesn’t generate sales based on specific titles, instead using its catalog and a steady drumbeat of new releases to entice customers every week. But the company does have a wealth of data concerning what its customers watch, which the company uses to determine the value derived from individual programs.

“Squid Game” stands out both for its popularity, and its relatively low cost. The South Korean show, about indebted people in a deadly contest for a cash prize, generated $891.1 million in impact value, a metric the company uses to assess the performance from individual shows. The show cost just $21.4 million to produce — about $2.4 million an episode. Those figures are just for the first season, and stem from a document that details Netflix’s performance metrics for the show.

The document underscores just how successful this one show has been for Netflix, and offers the clearest picture yet as to how the world’s most popular online TV network judges the success of its programming. Netflix has released self-selected viewership metrics for a handful of TV shows and movies, but it doesn’t share its more detailed metrics with the press, investors or even the programs’ own creators. Guessing the popularity of a given show has become something of a parlor game in Hollywood, even as Netflix has begun to release data in dribs and drabs.

An attorney representing Netflix said in a letter to Bloomberg that it would be inappropriate for Bloomberg to disclose the confidential data contained in the documents that Bloomberg had reviewed. “Netflix does not discuss these metrics outside the company and takes significant steps to protect them from disclosure,” the attorney said.

Some of the figures are self-explanatory, and mirror data that Netflix and other services already report. About 132 million people have watched at least two minutes of “Squid Game” in the show’s first 23 days, smashing the Netflix record set by “Bridgerton.” The two-minute figure is the one Netflix releases to the public for some shows. The company said 111 million people had started the show earlier this month, but that was based on data that is a bit older.

While Netflix has disclosed the number of people who start a show, it has yet to disclose how many people stuck around to watch more of the show (stickiness) or how many people finished the series (completion rate). Linear TV networks report the average number of people who watch a program for its duration, which makes the Netflix two-minute numbers look inflated by comparison.

In the case of “Squid Game,” Netflix estimates that 89% of people who started the show watched at least 75 minutes (more than one episode) and 66% of viewers, or 87 million people, have finished the series in the first 23 days. All told, people have spent more than 1.4 billion hours watching the show, which was produced by closely held Siren Pictures.

The viewership details are likely to cheer investors, who have regained enthusiasm for Netflix after several bumpy months, partly because “Squid Game” has been so popular. The company reported its slowest pace of subscriber additions since 2013 in the first half of the year, and blamed the paucity of new hit shows for some of its struggles. It also blamed the coronavirus for slowing TV and movie production. Its stock has declined for much of the year, and trailed the market.

But shares in the company have climbed nearly 7 percent since the release of “Squid Game” on Sept. 17, valuing the company at $278.1 billion. Even investors critical of the company expect it will either lift its performance in the third quarter or its forecast for the fourth quarter — if not both.

“We think Netflix has found a sound and profitable strategy with its content internationalization efforts, with ‘Squid Game’ a perfect example,” Michael Pachter, an analyst with Wedbush Securities, wrote in an Oct. 14 note. Pachter has been Netflix’s loudest skeptic among Wall Street analysts. “This and its ‘Seinfeld’ launch in Q4 should provide a solid cushion.’

Some of the metrics seen by Bloomberg are more idiosyncratic, and it’s impossible to glean from the document what data Netflix uses to calculate each formula. “Squid Game” scored 353 points in adjusted view share, or AVS, which reflects not just how many people watched it but how valuable those viewers are considered. (An AVS of more than 9 or 10 is already considered high.) Viewers who are new customers or use Netflix less often are viewed as more valuable because that suggests those shows are a reason they haven’t canceled.

AVS is where Netflix’s evaluation of a show begins, according to current and former employees, and the impact value figure is an estimate of a show’s lifetime AVS.

What makes “Squid Game” even more valuable is how popular it is relative to its low cost. The show cost less than a recent Dave Chappelle special, or just a couple episodes of “The Crown.” Netflix measures this using a metric called efficiency, which measures viewership (or AVS) relative to cost. The show has a mark of 41.7X in efficiency, according to the document, when an efficiency of 1x is considered solid. Chappelle’s “Sticks & Stones” was 0.8X, as Bloomberg reported this week.

To contact the author of this story:
Lucas Shaw in Los Angeles at lshaw31@bloomberg.net

© 2021 Bloomberg L.P.

Major Oil Spill Hits California Coast

“You can feel the vapor in the air.” About 3,000 barrels of oil leaked from a broken pipeline off the coast of California and has washed up on the beaches of Orange County. Divers are investigating the oil spill.

The Stunning Lives Of Old Coal Plants

As the U.S. pushes toward using more greener electricity, old coal power plants are becoming old relics. But QuickTake’s Matthew Long explains how some cities are already repurposing these spaces that used to spew out pollution. 

Can Your Boss Force You Back to the Office?

Can your boss force you back to the office? It won’t be as straightforward as employers simply telling workers to get back in. Bloomberg reporters in the U.K., U.S., and Switzerland share what’s happening in their countries. (Source: Quicktake)

North Korea Tests Hypersonic Missile

North Korea said its latest rocket launch was a successful test of a “hypersonic missile.” It comes as Pyongyang’s @UN ambassador spoke at the #UNGA, and after Kim Jong Un’s sister Kim Yo Jong reached out to South Korea

South African Business Says Nation Can’t Afford Universal Grant

(Bloomberg) – South Africa can’t afford to implement a basic income grant, South Africa’s biggest business organization said, wading into an argument that has divided the ruling African National Congress.
The country should instead consider an “unemployment insurance type product,” Business Unity South Africa said in a statement Monday. Even then it should only be put in place if labor market reforms are enacted to boost employment, the fiscal deficit does not widen as a consequence and payments are to those in need and are not universal, the group said.

With the impact of the Covid-19 pandemic pushing South African unemployment to a record, calls for a basic grant to be implemented have increased. President Cyril Ramaphosa has said it could be necessary and Lindiwe Zulu, his social development minister, has backed the concept. Finance Minister Enoch Godongwana has said he doesn’t favor the idea.

While about 18 million South Africans, or a third of the population, receive welfare payments, those come in the form of old-age pensions and child support payments.

“The fact that transferring a very large amount of money to households improves outcomes for them along some axes is not in doubt,” Busa said. “The consequences of a commitment to an unaffordable basic income grant will quickly undermine this. We need to take a view of the entire system and the entire economy.”

South Africa’s Ramaphosa Says Rich Nations Are Vaccine Hoarding

Bloomberg – South African President Cyril Ramaphosa accused developed countries of acting immorally by hoarding vaccines needed in poorer nations. 

“Of around 6 billion doses administered worldwide, only 2% of these have been administered in Africa, which has a population of 1.2 billion,” he said in an address to the Global Covid-19 Summit. “This must be unjust and it is also immoral.”

The World Health Organization has set a deadline for countries to vaccinate 10% of their population by the end of September, but only about 20% of African countries will meet that target. Meanwhile, wealthier nations such as the U.K. and U.S. have fully vaccinated more than 50% of their populations and are mulling the prospect of booster shots.

Ramaphosa said that while donations are welcome, they have not yet been enough to turn the tide. Developing countries need to be allowed to manufacture and directly procure vaccines, he said.

South Africa has fully vaccinated 20% of it’s adult population and is officially the most affected country on the continent with almost 2.9 million confirmed cases. The official death toll is about 99,000, though estimates are far higher.

© 2021 Bloomberg L.P.
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