Water is a great solvent. It’s neutral and doesn’t provide any strong positive or negative effects. It just helps components to mix better and to transport active components.
Propanediol is a good solvent, emollient and humectant. It helps to moisturize the skin and prevent moisture loss. In haircare products, it conditions hair and improves absorption of the product.
PEG-40 Hydrogenated Castor Oil helps ingredients to mix better. It has nice cleansing activity helping to remove sebum and dirt from the surface of your skin. It's also responsible for making soft foam in soaps, shower gels, etc. Despite it having "PEG" in the title, it's considered to be safe.
Phenoxyethanol is one of the most popular preservatives. It kills bacteria and makes the product live longer. Manufacturers like this ingredient because it can dissolve in any liquid, even in oils.
Another purpose of this component is the fixation of aromas in perfumery. Phenoxyethanol is also used as a strong antiseptic and a good antibacterial agent. It is widely used in dermatological cosmetics alongside natural antiseptics such as chamomile, sage, and calendula.
Like many other preservatives, Phenoxyethanol is a strong chemical. European Regulation (EC) No 1223/2009 allows this component in cosmetics at a maximum concentration of 1%. Clinical studies showed that the component doesn’t irritate the skin and doesn’t make it sensitive. According to the CLP Regulation (EC) No 1272/2008 it’s not toxic.