How Credo Uses Retail Power to Raise the Bar for Clean Beauty

When Annie Jackson co-founded Credo Beauty, she wasn't just building another beauty retailer; she was rewriting the rules of an entire industry. After a career at powerhouses like Estée Lauder, Sephora, and Benefit Cosmetics, Jackson had seen the glossy facade of cosmetics up close.

But she had also seen what wasn't being discussed: what happens to all those ingredients once they're absorbed by our skin or washed down the drain. "My whole background was, does it work in the component? Never once did we say, what is this doing to human health or the environment’s health once somebody tosses it?" Jackson says.

That realization became the spark for Credo, a San Francisco-based retailer built around transparency, sustainability, and safer formulations. Today, Credo is the largest clean beauty retailer in the U.S., home to over 130 brands and a company helping redefine what "good for you" really means.

Turning frustration into a framework

Jackson and her late co-founder Shashi Batra had already helped launch Sephora in the U.S., so they understood the power of retail to shape an industry. But they also saw an industry that was opaque, loosely regulated, and inconsistent in how it defined “clean”. "You could create a product in your kitchen tomorrow and start selling it. There are no guardrails for assessing products for safety. We wanted to change that,” she says.

Their solution was radical in its simplicity: create the standards that regulators hadn't.

Credo's Clean Standard now restricts nearly 3,000 ingredients considered potentially harmful or lacking sufficient safety data. It also outlines detailed expectations for sourcing, labeling, packaging, and ethical labor practices.

Retail as the new regulator

While most industries wait for legislation, Credo decided to self-regulate—and to use retail influence to shape the broader industry. Jackson argues that retailers can act as de facto regulators, using purchasing power to set higher standards for suppliers.

Through initiatives like Pact Collective, a recycling and waste-reduction alliance she co-founded with other manufacturers, Credo is encourages brands and manufacturers to take collective responsibility across the supply chain.

And that leadership has ripple effects. Major retailers, like Sephora, Target, Ulta, and CVS, have since adopted restricted substance lists of their own. Jackson see this as positive progress, even if it occasionally affects Credo’s competitive position. "Does that eat into our market share? At times, for sure. But the role Credo is trying to play is to be a trailblazer and be five steps ahead."

Unlike traditional retailers that keep a “clean” aisle alongside aisles using conventional formulations, Credo applies a clean standard across its full portfolio. And if the government ever does step in to regulate the word "clean," Jackson welcomes it: "It’s like the Wild West out there. If they regulated the term, it would make it much easier and push market share into the right places."

Purpose meets patient capital

Building an ethical business in a trend-driven, capital-intensive industry isn't easy. But Credo's financial structure gives it an unusual edge. Backed by NextWorld Evergreen, a fund designed for long-term, mission-driven growth, Credo isn't pressured to chase quarterly profits or quick exits. "We are incredibly lucky to have very patient capital. They share our values, and that's something that I definitely don't take for granted," Jackson says.

That alignment allows Credo to balance mission and profitability. Instead of endless expansion, the team focuses on sustainable scaling: keeping its a tight roster of around 130 brands, maintaining close relationships with founders, and ensuring each new addition replaces another to prevent overgrowth.

The result? A curated ecosystem where innovation and integrity can coexist.

Scaling sustainability without sacrificing integrity

Credo's standards go far beyond ingredients. The company requires new brands to use at least 50% post-consumer recycled (PCR) materials in their packaging and to work toward even more sustainable alternatives. Yet Jackson understands transformation takes time. Rather than forcing immediate overhauls, Credo works with partners to transition responsibly, balancing progress with practicality. "It’s not very sustainable to say, ‘Take the 200,000 units you have and toss them. We look at what stage they’re in and work together as partners."

To maintain scientific rigor, Credo relies on an internal science team and an external Credo Clean Council, a group of volunteer toxicologists, chemists, and academics who review standards and vet new products. Even technology has a role to play. The company is using AI tools like Potion AI to streamline brand vetting, check compliance faster, and bring more transparency to a notoriously opaque supply chain.

A values-driven future

Looking ahead, Jackson isn't chasing a billion-dollar valuation. Her ambition is to expand Credo from 16 stores to 50 or even 150, bringing the model to more neighborhoods and helping mission-driven brands scale with a partner that shares their values.

She also carries her co-founder’s legacy with her. Shashi Batra passed away not long after Credo’s founding, and Jackson often reflects on whether he would be proud of how the company has evolved. Bringing transparency, rigor, and long-term thinking to a historically opaque industry is at the heart of that mission.

Fifteen years from now, Jackson hopes her legacy won't just be a cleaner beauty aisle, but an industry that grown more accountable—where safer formulations, responsible packaging and ethical supply chains are the norm. For Credo, doing good isn’t a marketing slogan; it’s a foundation built on clear standards, retain influence and a belief the beauty industry can do better.

Tags: Continuous Improvement | Transformation | Innovation | Sustainability | Wellness

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