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    L’Oréal for the future

climate COMMITMENTS

Our most rapid progress has been on our transition towards a low carbon business model. To achieve this, we improved energy efficiency across all our facilities, increased the use of local renewable energy wherever possible and achieved the targets defined for the sites without carbon offsetting projects.

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By 2025

  • All of our sites will achieve carbon neutrality by improving energy efficiency and using 100% renewable energy.

By 2030

  • We will innovate to enable our consumers to reduce their greenhouse gas emission resulting from the use of our products by 25% compared to 2016, on average and per finished product.
  • We will reduce by 50% on average and per finished product, the greenhouse gas emissions linked to the transport of our products, compared to 2016.
  • Our strategic suppliers will reduce their direct emissions (scopes 1 and 2), by 50% in absolute terms, compared to 2016.
what we've achieved so far

-78%

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Since 2005 we’ve reduced the CO2 emissions of our plants and distribution centers by 78% in absolute terms compared to 2005, whilst production volume increased by 37% over the same period.

51%

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At the end of 2019, L’Oréal had 51 carbon neutral sites (meaning they use 100% renewal energy), including 14 factories.

water COMMITMENTS

L’Oréal has long been committed to ensuring we use sustainable water quantity across our value chain and contributing to high water quality in local ecosystems. And we did very well over the past six years. - Between 2005 and 2019 we divided our water consumption per finished product at plants and distribution centers by half. - CDP, a renowned NGO that makes environmental reporting, also rewarded us.

L’Oréal is the only company in the world to have achieved an “A” score in all three CDP rankings including water management for 4 years in a row. But there’s more we can do.
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As water scarcity evolves around the world, L’Oréal has made 4 commitments for 2030:

1

100% of the water used in our industrial processes will be recycled and reused in a loop.

2

All our strategic suppliers will use water sustainably in the areas where they operate.

3

By 2030, we will evaluate ALL our formulas thanks to our environmental platform, to guarantee they are harmless to all aquatic, continental and coastal ecosystems.

4

We will innovate to enable our consumers to reduce water consumption linked to the use of our products by 25%, on average compared to 2016.

What We’ve Achieved So Far

-49%

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We've reduced the amount of water used in our plants and distribution centers by 49% compared to 2005, per finished product.

5

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Five of our factories are "waterloop factories", meaning that all the industrial water is retreated, recycled and reused In a loop

RESOURCES COMMITMENTS

At L’Oréal we have long worked on the renewability of our ingredients. L’Oréal’s ingredient portfolio is composed of 59% renewable ingredients and 15% mineral ingredients. The rest, comes from petrochemical sources. We’ve managed to decrease our use of non-renewable resources dramatically in recent years, but it’s not enough. We need to change our ways of working if we want to go far beyond this plateau of 60%.

We’ve managed to decrease our use of non-renewable resources dramatically in recent years, but it’s not enough.

We need to change our ways of working if we want to go far beyond this plateau of 60%. This is why our 2030 commitments will raise the bar. The circular economy is about using resources within cycles that are self-regenerating.

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We commit to transitioning to a circular resource model by 2030 to address six major components:

1

By 2030, 95% of our ingredients in formulas will be bio-based, derived from abundant minerals or from circular processes.

2

By 2030, we will reduce the quantity of packaging used for our products by 20% compared to 2019.

We will do this via deliberate packaging weight reduction thanks to optimized technical design. We will develop reusable products. And, we will develop more dry or concentrated products. We will even develop solutions with ‘no packaging’.

3

By 2030, 100% of the plastics used in our packaging will be either from recycled or bio-based sources.

With this target, our aim is to eliminate the use of virgin fossil plastics for packaging. To do so, collaboration is key. L’Oréal co-founded a consortium with a start-up, Carbios to encourage the industrialization of an enzymatic bio-recycling technology, which produces very high quality of recycled plastics.

4

By 2025, 100% of our plastic packaging will be refillable, rechargeable, recyclable or compostable.

For more than 10 years, L’Oréal has been committed to an in-depth work on managing the end-of-life of plastics.

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5

By 2025, 100% of our new displays will be eco-designed.

Taking notably into account circular economy principles for end of life management and 100% of our new Free Standing Stores will be designed and built using our sustainability principles.

6

By 2030, 100% of waste generated on our sites will be recycled or re-used.

And in addition to those 6 commitments, we will invest 50 M € to support circular economy practices externally, by creating an impact investing fund dedicated to this particular issue.

What We’ve Achieved So Far

59%

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We've reduced the amount of water used in our plants and distribution centers by 49% compared to 2005, per finished product.

13,204

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In 2019, the Group replaced virgin materials with 13,204 tons of recycled materials (PCR}, an increase of 52% on 2018.

97%

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In 2019, L'Oreal recovered 97% of the waste that could not be avoided at source, by reusing or recycling, or harnessing it to produce energy.

BIODIVERSITY COMMITMENTS

At L’Oréal we have long been committed to decreasing our environmental impact: we have primarily focused on ensuring our ingredient sourcing is sustainable. 59% of raw materials used in our products are renewable. Our zerodeforestation policy on commodities like palm, soy or wood contributes to fighting against illegal deforestation.

And by the end of 2022, 100% of our ingredients will come from sustainable sourcing.
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Here are our 3 major commitments for 2030 to preserve and protect biodiversity along our entire value chain:

1

We will stabilize the effect of the land occupancy that is vital to the sourcing of our ingredients.

The conversion of natural habitats for expanding agriculture, towns and infrastructures is the primary cause of biodiversity loss.

These targets mean to work with our ingredient suppliers to reduce the impact of their land use.

2

100% of our industrial sites and all our owned buildings will have a positive impact on biodiversity.

Local projects to protect and restore local biodiversity will be implemented at all plants, distribution centers, administrative buildings and research centers.

3

100% of the bio-based ingredients of our formulas and materials for our packaging will be traceable and will come from sustainable sources.

None of them will be linked to deforestation. We are expanding the work that is already being carried out on renewable raw materials to all our ingredients including minerals, as well as all other bio-based materials like packaging and POS material.

What We’ve Achieved So Far

85%

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In 2019, 85% of new or renovated products had an Improved environmental or social profile.

100%

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100% of our supplies of palm oil, palm oil derivatives and palm kernel oil derivatives have been certified sustainable in line with RSPO criteria since 2012.

100%

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100% of paper used for the Instructions Included with products is certified as sustainable.