L'Oréal Paris
Climate Impact & Sustainability Data (2019, 2020-2030, 2023)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Human Rights
- Labor Standards
- Environment
- Anti-Corruption
- Gender Equality
- LGBTI rights
- Sustainable Development Goals
Environmental Achievements
- Reduced greenhouse gas emissions by 78% for industrial sites (vs. 2005) and by 29% for administrative and research sites (vs. 2016)
- Achieved carbon neutrality in 51 sites in 2019
- Renewable energy consumed by sites is 69% for industrial sites and 55% for administrative and research sites
- Reduced total generation of transportable waste by 35% for industrial sites (vs. 2005) and by 29% for administrative and research sites (vs. 2016)
- Reduced total water consumption of sites by 51% for industrial sites (vs. 2005) and by 22% for administrative research sites (vs. 2016)
- Replaced virgin materials with 13,204 tonnes of recycled materials (PCR), a 52% increase (vs. 2018)
- 100% of supplies of palm oil or derivatives have been certified sustainable since 2012 and 100% of soya used was certified sustainable
- 97% of industrial waste is recovered and 0 industrial waste is sent to landfill
Social Achievements
- Women account for 70% of the total workforce, 54% of Strategy, Group and local key positions, 66% of international brand managers, 31% of Executive Committee members and 53% of Board of Directors members
- Improved the social and environmental profile of 85% of new or received products launched and 59% of new or renovated products
- Launched the ‘Enjoy’ pillar of the L’Oréal Share & Care programme, reinforcing telecommuting and flexible working hours
- Provided over 4,000 disadvantaged women with free high-quality training for careers in beauty
- Supported over 70,000 people through the Solidarity Sourcing programme
- Provided employees with a universal set of social benefits in 67 countries
- Launched the We Can End It campaign to end Human Rights violations
- #StOpE initiative to fight “ordinary” sexism in the workplace
- Joined the One In Three Women network to fight violence against women
Governance Achievements
- CEO leads executive management team in development of corporate sustainability strategy
- Board of Directors assumes responsibility and oversight for long-term corporate sustainability strategy and performance
- Established a zero-tolerance policy on corruption
- Implemented a Speak Up Policy for reporting ethical concerns
Climate Goals & Targets
Supply Chain Management
Responsible Procurement
- Buy & Care responsible purchasing policy
- Solidarity Sourcing program
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact
Certifications: GEEIS, EDGE
UN Sustainable Development Goals
- 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17
L'Oréal contributes to 16 of the 17 UN SDGs through various programs, including its Ethics program, Corporate Responsibility targets, Diversity & Inclusion initiatives, Compliance structure, and philanthropic actions.
Awards & Recognition
- CDP’s triple A rating (four consecutive years)
- No. 1 globally in the Covalence EthicalQuote index
- Top 5 in the Equileap Ranking
- Top 100 Bloomberg Gender Equality Index
- Named one of the 36 LEAD companies by the UN Global Compact
- Distinguished as one of the most ethical companies in the world by the Ethisphere Institute
Reporting Period: 2020-2030
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:100% by 2025 (all sites)
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Water Management
- Biodiversity
- Natural Resource Management
- Social Inclusion
- Circular Economy
- Women's Empowerment
Environmental Achievements
- Reduced CO2 emissions of factories and distribution centers by 78% in absolute terms compared to 2005 (while production volume increased by 37%)
- Improved the environmental or social profile of 85% of new or renovated products (2019)
Social Achievements
- Helped 90,635 people from disadvantaged communities gain access to employment (2019)
- Solidarity Sourcing program
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- L'Oréal Fund for Nature Regeneration to restore one million hectares of degraded ecosystems by 2030
- L'Oréal Fund for Nature Regeneration to capture 15-20 million tons of CO2 by 2030
- Create hundreds of job opportunities through L'Oréal Fund for Nature Regeneration by 2030
- Invest 50M€ to finance projects promoting a circular economy by 2030
Medium-term Goals:
- Reduce greenhouse gas emissions by 50% per finished product (scopes 1, 2, and 3) by 2030
- Reduce greenhouse gas emissions from product transport by 50% per finished product by 2030
- Strategic suppliers to reduce direct emissions by 50% in absolute terms by 2030
- Enable consumers to reduce GHG emissions from product use by 25% by 2030
- Enable consumers to reduce water consumption from product use by 25% by 2030
- 100% recycled or biobased plastic packaging by 2030
- 100% of strategic suppliers’ employees paid at least a living wage by 2030
- Help 100,000 people from disadvantaged communities gain access to employment by 2030
- 3 million people to benefit from brands’ social engagement programs by 2030
- 100% of products ecodesigned by 2030
- 100% of water used in industrial processes recycled and reused by 2030
- All strategic suppliers to use water sustainably by 2030
- 100% of biobased ingredients traceable and from sustainable sources by 2030
- Hold flat total land occupancy for ingredient sourcing by 2030
- 100% of industrial sites and buildings with positive biodiversity impact by 2030
- 95% biobased ingredients in formula by 2030
- 20% reduction in packaging intensity by 2030
- 100% recycled or reused waste from sites by 2030
Short-term Goals:
- Carbon neutrality in all sites by 2025
- 50% recycled or biobased plastic packaging by 2025
- 100% refillable, reusable, recyclable, or compostable plastic packaging by 2025
- 100% ecodesigned displays and Free Standing Stores by 2025
- Product Environmental and Social Labelling system for all rinse-off products by 2022
- Invest 50M€ to support highly vulnerable women by 2023
Environmental Challenges
- Global warming and environmental changes
- Loss of biodiversity
- Plastic pollution
- Social inequalities exacerbated by the Covid-19 pandemic
Mitigation Strategies
- L'Oréal for the Future program
- Impact investing (100 million euros for ecosystem regeneration and circular economy, 50 million euros for charitable endowment fund)
- Product Environmental and Social Labelling system
- Ecodesign of products and packaging
- Sustainable sourcing of ingredients
- Collaboration with suppliers and consumers
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Solidarity Sourcing program
- Living wage for strategic suppliers’ employees by 2030
- Sustainable water use by strategic suppliers by 2030
- Reduction of direct emissions by strategic suppliers by 2030
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Science-Based Targets (SBT)
Certifications: Null
Third-party Assurance: Bureau Veritas
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:83% (operated sites in 2023)
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Women Empowerment
- Sustainable Packaging
- Sustainable Sourcing
- Inclusive Sourcing
Environmental Achievements
- 97% of new and renovated products improved based on lifecycle methodology in 2023
- 83% of operated sites reached 100% renewable energy in 2023
- 78% of products had A or B Product Environmental Scores in 2023
- 35% of plastics came from recycled or biobased materials in 2023
- 92% of PET plastic used was recycled in 2023
- 51% of plastic packaging was refillable, reusable, recyclable, or compostable in 2023
- 14% reduction in packaging intensity compared to 2019
- 21% of factories were waterloop factories in 2023
- 79% of factories were powered by renewable energy in 2023
- 65% of ingredients were of biobased origin or derived from abundant minerals or circular processes in 2023
- 83% biodegradability of formulas (except makeup) in 2023
Social Achievements
- 2,453,890 people trained in the 5D method against street harassment in 44 countries since 2020
- 370+ women entrepreneurs supported by Women of Earth Alliance in Uganda, Kenya, and Indonesia for climate and social action
- 10,787 people helped through the Inclusive Sourcing programme in 2023
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- By 2030: -50% CO2 emissions per product sold (vs 2016), 100% recycled or biobased plastics, 100% waterloop factories, 95% biobased ingredients, 95% biodegradability in formulas
Short-term Goals:
- By 2025: 100% renewable energy for operated sites, 50% recycled or biobased plastics, 100% improved new/renovated products
Environmental Challenges
- Reducing carbon emissions per unit sold by 50% by 2030
- Transitioning to 100% recycled or biobased plastics by 2030
- Achieving 100% renewable energy for all operated sites by 2025
- Achieving 95% biobased ingredients and 95% biodegradability in formulas by 2030
- Addressing street harassment globally
Mitigation Strategies
- Eco-designing products and packaging
- Using recycled and biobased materials
- Investing in renewable energy
- Developing sustainable formulas
- Implementing the 5D methodology for street harassment intervention
- Supporting women entrepreneurs in environmental projects
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Inclusive Sourcing programme
- Sustainable development programmes for suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Science-Based Targets initiative (SBTi), Ellen MacArthur Foundation: New Plastics Economy
Certifications: Null
Third-party Assurance: Deloitte & Associés (limited assurance)
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Elvive Eco-Refill Pouch
- Extraordinary Oil Mask refill capsule
Awards & Recognition
- Not disclosed