Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Environmental Responsibility
• Diversity
• Ethics
• Solidarity

Environmental Achievements

• Reduced greenhouse gas emissions, water consumption, and waste generated per finished product (targets set for 2015, progress reported for 2010)
• Installed bio-methanisation unit at Libramont plant, using 100% green energy
• Reduced CO2 emissions by 27% (2005-2010)
• Reduced waste generated per finished product by 23% (2005-2010)
• Reduced water consumption per finished product by 19% (2005-2010)
• Achieved 96.1% waste recovery index in 2010

Social Achievements

• Published first-ever Sustainable Development Report in China
• Ranked one of the 100 most sustainable companies in the world by Corporate Knights magazine
• Designated by Ethisphere Institute as one of the “Most Ethical Companies in the World”
• Ranked number one CAC 40 company for use of cardboard and paper by WWF
• Included in most Sustainable Development indexes
• Recognized as one of the “Leaders in the Personal and Household Goods sector” by the Forest Footprint Disclosure Project
• L'Oréal Corporate Foundation's multiannual budget (2007-2011) of €40 million
• Over 1,066 women researchers benefited from the L’Oréal-UNESCO “For Women in Science” programme
• Nearly 500,000 hairdressers received training each year within the “Hairdressers Against AIDS” programme
• 530,000 L’Oréal products donated in 2010 as part of “Beauty from the Heart” programme
• More than 2,582 managers attended a special course on diversity

Governance Achievements

• L’Oréal’s Board of Directors closely monitors changes in best practices in corporate governance and strives for constant progress
• Received the Award for the Best CAC 40 Annual General Meeting in 2010
• More than 90% of shareholders expressed satisfaction with information provided
• Created the Individual Shareholder Consultation Committee for deeper exchanges
• Reunified the roles of Chairman and Chief Executive Officer in March 2011
• Strategy and Implementation Committee renamed Strategy and Sustainable Development Committee
• Remuneration Committee renamed Human Resources and Remuneration Committee
• Ethics Day organized for employees
• Strengthened network of Ethics Correspondents (93% of employees have access)

Climate Goals & Targets

Environmental Challenges

• Economic crisis (2008-2009)
• Need to adapt to changing consumer expectations and the digital revolution
• Environmental impact of products and operations
• Reaching a billion new consumers

Mitigation Strategies

• Rigorous management and strategic decisions to overcome the economic crisis
• Focus on major worldwide high value-added innovations at accessible prices
• Extension of brands into new product categories
• Accelerated global roll-out of brands
• Increased spending on Research and Innovation, and on Advertising and Promotion
• Operational excellence initiatives to boost performance
• Modernization of company to improve selling, general and administrative expenses
• Sustainable development initiatives to reduce environmental footprint
• Global roll-out of initiatives in science, solidarity, and education through the L'Oréal Foundation
• Creation of new Strategic Marketing Department to secure leadership in the digital channel
• Adaptation of products and business models to local particularities in emerging markets

Supply Chain Management

Supplier Audits: 567 new social audits in 2010

Responsible Procurement

• Community Fair Trade programme (The Body Shop)
• Partnership with suppliers for innovation and sourcing
• Charter governing relations between large companies and SMBs: “10 commitments for responsible purchasing”

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Bio Active certified organic anti-wrinkle skincare (Garnier)
• Products with plant-based raw materials and green chemistry principles
• Recyclable packaging

Awards & Recognition

• Human Capital Trophy 2010
• “Employment Management” category award for YSL Beauté integration
• One of the 100 best employers in Canada
• Top 45 employers for diversity achievements in Canada
• “Best Corporate and Employee Citizenship” award for The Body Shop in Asia
• LEED GOLD award for Pudong Research Centre (China)

Environmental Metrics

ESG Focus Areas

• Environment
• Social and Societal Responsibility
• Solidarity

Environmental Achievements

• Reduced greenhouse gas emissions (scope 1 and 2) by 29.8% (2005/2011)
• Reduced water consumption per finished product by 22.6% (2005/2011)
• Reduced transportable waste (excluding returnable packaging) per finished product by 24.2% (2005/2011)
• L'Oréal Mexico reduced CO2 emissions by 60% using wind turbines
• Chimex plant in France implemented phytoremediation gardens to treat wastewater
• More than 90% of cardboard boxes are certified, over half by the FSC

Social Achievements

• Reduced industrial accidents with sick leave by 8.5% versus 2010
• Conducted 793 social audits at group supplier sites
• Launched “Solidarity Sourcing” program to include economically vulnerable suppliers
• Opened “Green Academies” for environmentally-friendly professional training
• Implemented “Ergonomic Attitude” program to improve workplace ergonomics

Governance Achievements

• Published a new international ethical guide for purchasing (“The Way We Buy”)
• Established an international network of Ethics representatives

Climate Goals & Targets

Environmental Challenges

• Reducing environmental footprint while winning over a billion new consumers
• Ensuring sustainable sourcing of raw materials
• Maintaining high safety standards across all operations

Mitigation Strategies

• Implementing energy efficiency measures and innovative renewable energy projects
• Developing “Solidarity Sourcing” program
• Implementing stringent Environment, Health and Safety (EHS) standards and training programs

Supply Chain Management

Supplier Audits: 793 social audits conducted

Responsible Procurement

• Solidarity Sourcing program
• “The Way We Buy” ethical guide for purchasing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, OHSAS 18001, FSC

Third-party Assurance: Deloitte & Associés and PricewaterhouseCoopers Audit

Sustainable Products & Innovation

• Ultra Doux shampoos with high biodegradability

Environmental Metrics

ESG Focus Areas

• Sustainable Innovation
• Sustainable Production
• Sustainable Consumption
• Shared Development
• Ethics
• Biodiversity
• Water Conservation
• Waste Reduction
• Social Inclusion

Environmental Achievements

• Reduced CO² emissions by 38.8% since 2005.
• Reduced water consumption per finished product by 22.8% between 2005 and 2012.
• Reduced transportable waste (including returnable packaging) per finished product by 23.9% between 2005 and 2012.
• 95% of waste reused, recycled, or used for energy production.
• 100% of palm oil supplies certified sustainable by the RSPO.
• 100% of soybean oil supplies certified sustainable.
• 88% biodegradability for shampoos and 85% for shower gels in 2011.

Social Achievements

• 13,000 women producers of shea butter benefited from the responsible purchasing program.
• 55% of shea butter supplies came from fair trade sources.
• 15,000 individuals benefited from the Solidarity Sourcing program in 2012.
• Launched micro-distribution project in Rio favelas, significantly boosting incomes for women distributors.
• Implemented socio-aesthetic therapy programs in hospitals and with vulnerable youth.
• Launched Beauty for a Better Life, an international education program in beauty professions for disadvantaged communities.

Governance Achievements

• Renewed commitment to the UN Global Compact Principles in 2012.
• Received several awards from extra-financial rating agencies in 2012.
• Implemented a global responsible purchasing program (“Solidarity Sourcing”).
• Conducted worldwide study to understand keys to success for inclusive business models.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental footprint of production sites.
• Persuading suppliers to adopt sustainable development approaches.
• Managing waste in emerging countries with limited waste management systems.
• Ensuring responsible consumption among consumers.

Mitigation Strategies

• Set three targets for 2015 (50% reduction in greenhouse gas emissions, water consumption, and waste production).
• Implemented water recycling systems, solar water heating, and other technologies in various plants.
• Launched initiatives to reduce cardboard and paper waste, switching to more durable packaging.
• Conducted surveys and forums to understand consumer attitudes and behaviors towards sustainable consumption.
• Developed eco-design strategies for products and packaging.
• Launched educational campaigns and tools to raise consumer awareness.

Supply Chain Management

Supplier Audits: 1,120 social audits of supplier sites

Responsible Procurement

• Solidarity Sourcing program
• Sustainable sourcing of raw materials (e.g., palm oil, shea butter)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Deloitte & Associés and PricewaterhouseCoopers Audit

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-designed products
• Products with natural ingredients

Awards & Recognition

• Several awards from extra-financial rating agencies in 2012.

Environmental Metrics

ESG Focus Areas

• Environmental Footprint Reduction
• Sustainable Sourcing
• Responsible Consumption
• Employee Well-being
• Social Inclusion
• Responsible Communication

Environmental Achievements

• Reduced CO2 emissions at plants and distribution centers by 43.1% since 2005
• Reduced water consumption per finished product by 26.7% since 2005
• Reduced waste by 19.6% per finished product since 2005
• 90.9% of waste reused, recycled, or used for energy production
• 54% of industrial sites sent zero waste to landfill
• 100% of soya oil supplies certified sustainable
• 88% of plant-based raw materials evaluated for biodiversity impact
• 34% of new raw materials are plant-based
• 18% of new raw materials comply with green chemistry principles

Social Achievements

• Launched Share & Care program for employee health care and social protection globally
• More than 20,000 employees participated in Citizen Day
• 67% of workforce and 45% of Management Committees are women
• Solidarity Sourcing program benefited 22,000 people
• Beauty for a Better Life program trained 257 women in Vietnam and Cambodia
• Micro-distribution project in Brazil benefited 5,087 people through training

Governance Achievements

• Commitment to responsible communication, including adherence to various charters
• Increased transparency in social audits of suppliers
• 800 social audits conducted on supplier sites
• 152 suppliers participated in CDP carbon footprint assessment

Climate Goals & Targets

Environmental Challenges

• Balancing business growth with environmental sustainability (attracting a billion new consumers while reducing environmental impact)
• Ensuring responsible sourcing of raw materials, particularly palm oil
• Bridging the gap between corporate sustainability efforts and consumer perception
• Promoting sustainable consumption patterns among consumers

Mitigation Strategies

• Setting ambitious targets for environmental footprint reduction by 2020 (60% reduction in CO2 emissions, water consumption, and waste)
• Commitment to zero deforestation by 2020
• Increased stakeholder engagement to understand expectations and incorporate feedback into strategy
• Development of product assessment tools to evaluate environmental and social profiles and make this information available to consumers
• Increased supplier involvement in sustainability programs

Supply Chain Management

Supplier Audits: 800 social audits in 45 countries (85% of supplier portfolio)

Responsible Procurement

• Buy & Care program
• Solidarity Sourcing program
• Sustainable sourcing of raw materials (palm oil, soya oil, wood fiber)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Deloitte & Associés and PricewaterhouseCoopers Audit

Awards & Recognition

• Garnier USA sustainability pioneer award

Environmental Metrics

ESG Focus Areas

• Environmental Footprint Reduction
• Biodiversity Preservation
• Sustainable Sourcing
• Employee Well-being
• Supplier Sustainability
• Community Engagement
• Sustainable Consumption

Environmental Achievements

• Reduced CO2 emissions by 50.2% from a 2005 baseline.
• Reduced water consumption by 36% from a 2005 baseline.
• Reduced waste generation by 23.1% from a 2005 baseline.
• Only 3.8% of waste sent to landfill.

Social Achievements

• Launched L'Oréal Share & Care program, improving employee benefits globally.
• Increased maternity leave in Malaysia and Dubai.
• Provided healthcare coverage to 85.3% of permanent employees.
• Provided financial protection to 70.1% of permanent employees.
• Enabled more than 54,000 people from underprivileged communities to access work.

Governance Achievements

• Established a "Panel of Critical Friends" for external review of sustainability progress.

Climate Goals & Targets

Environmental Challenges

• Reducing the environmental footprint of transportation.
• Increasing sustainable consumer lifestyles.
• Managing change within the organization.
• Ensuring complete traceability of palm oil supply chain.

Mitigation Strategies

• Implementing optimized transport plans and integrating low-emission transport options.
• Raising consumer awareness through training and communication tools.
• Implementing the L'Oréal Share & Care program.
• Working with suppliers to build solutions for sustainable palm oil sourcing and traceability.

Supply Chain Management

Supplier Audits: 834 social audits in 2014

Responsible Procurement

• L'Oréal Buy & Care program
• Solidarity Sourcing program
• Ecovadis assessments

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: FSC, PEFC, ISO 50001 (initial certifications)

Third-party Assurance: Deloitte & Associés and PricewaterhouseCoopers

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Packaging
• Deforestation
• Water Consumption
• Waste Reduction
• Sustainable Sourcing
• Social Inclusion
• Employee Well-being
• Supplier Sustainability
• Consumer Awareness

Environmental Achievements

• Reduced CO2 emissions from plants and distribution centers by 67% (vs. 2005 baseline), exceeding the 2020 target four years early.
• Reduced water consumption in plants and distribution centers by 48% (vs. 2005 baseline).
• Reduced waste generation by 35% (vs. 2005 baseline), achieving zero waste to landfill across all industrial sites.
• 82% of new or renovated products had an improved environmental or social profile.

Social Achievements

• Provided access to work for 67,533 people from underprivileged communities.
• 90% of brands evaluated their environmental or social impact.
• Established a consumer advisory committee to gather feedback on sustainable development.

Governance Achievements

• Received a triple “A” rating from CDP for climate protection, sustainable water management, and the fight against deforestation.
• Integrated ESG performance criteria into the bonus calculations for country and brand managers.

Climate Goals & Targets

Environmental Challenges

• Bridging the gap between consumer awareness of sustainable development and purchasing decisions.
• Addressing the environmental impact of products, particularly in the 'living sustainably' area.

Mitigation Strategies

• Created a consumer sustainability panel to understand consumer expectations and concerns.
• Developed the SPOT (Sustainable Product Optimisation Tool) to evaluate the environmental and social performance of products.
• Launched various initiatives to raise consumer awareness about sustainable consumption.

Supply Chain Management

Supplier Audits: 1,187 social audits in 2016

Responsible Procurement

• Solidarity Sourcing program
• Supplier evaluation based on environmental and social performance
• CDP Supply Chain program participation

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, CDP

Certifications: ISO 14289-1 (PDF accessibility), ISO 50001 (energy management - partial)

Third-party Assurance: Deloitte & Associés and PricewaterhouseCoopers Audit

UN Sustainable Development Goals

• Not disclosed

Contributes to 14 of the 17 UN Sustainable Development Goals

Sustainable Products & Innovation

• Biolage R.A.W. range, Kérastase Aura Botanica, Garnier Ultra Doux, Roger & Gallet Aura Mirabilis, Lancôme Absolue Precious Oil

Awards & Recognition

• CDP triple “A” rating, Brandon Hall HCM excellence award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water Management
• Waste Reduction
• Sustainable Sourcing
• Social Inclusion
• Employee Well-being
• Supplier Sustainability
• Ethical Business Practices

Environmental Achievements

• Reduced CO2 emissions from plants and distribution centers by 81% since 2005 while increasing production volume by 29%
• Reduced water consumption at plants and distribution centers by 49% since 2005
• Reduced waste generation from plants and distribution centers by 37% since 2005
• Achieved zero industrial waste to landfill (except food waste at two sites)
• 100% of palm oil, palm oil derivatives, and palm kernel oil supplies certified sustainable since 2012
• 100% of soy oil used and sourced from Latin America certified sustainable in 2020
• 100% of paper used for product instructions and cardboard for packaging derived from responsibly managed forests

Social Achievements

• Enabled 100,905 people from underprivileged communities to gain access to employment
• 96% of permanent employees benefit from health cover reflecting best practice
• 92% of permanent employees have access to financial protection in case of life-changing accidents
• 100% of employees received at least one training session in 2020
• Launched various brand initiatives to address social issues like street harassment, anxiety/depression, and domestic violence

Governance Achievements

• Achieved a triple 'A' rating from CDP for five consecutive years for climate change, water management, and forest protection
• Achieved Prime status from ISS-Oekom for nine consecutive years
• Ranked among the Bloomberg Gender-Equality Index for the fourth year running
• Ranked as one of the 'World’s Most Ethical Companies' by the Ethisphere Institute for the twelfth time
• Included in multiple Euronext Vigeo Eiris indices, ranked No. 5 globally

Climate Goals & Targets

Environmental Challenges

• Reducing the environmental impact of the entire value chain, including supplier activities and consumer product use
• Addressing the challenges of the global environmental crisis and social issues

Mitigation Strategies

• Launched L'Oréal for the Future program to accelerate sustainability transformation
• Engaged suppliers in sustainability efforts through CDP Supply Chain program and training
• Developed the Sustainable Product Optimization Tool (SPOT) to assess product impacts
• Implemented responsible packaging policies (3Rs: Respect, Reduce, Replace)
• Committed to 100% refillable, reusable, recyclable, or compostable plastic packaging by 2025 and 100% recycled or bio-sourced plastic by 2030
• Committed to net-zero carbon emissions by 2050

Supply Chain Management

Supplier Audits: 1,268 audits in 2020; more than 13,600 since 2006

Responsible Procurement

• Solidarity Sourcing program
• Assessment and selection of strategic suppliers based on environmental and social performance
• Supplier training on sustainability policies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: CDP, UN Global Compact, MSCI ESG

Certifications: ISO 50001 (energy management for 69% of factories)

Third-party Assurance: Deloitte & Associés and PricewaterhouseCoopers Audit

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Triple 'A' rating from CDP (five consecutive years)
• Prime status from ISS-Oekom (nine consecutive years)
• Bloomberg Gender-Equality Index
• 'World’s Most Ethical Companies' by Ethisphere Institute
• Euronext Vigeo Eiris indices

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Biodiversity
• Natural Resource Management
• Circular Economy
• Social Inclusion
• Supplier Sustainability

Environmental Achievements

• Reduced GHG emissions from plants and distribution centers by 35% versus 2019 (87% reduction versus 2005), while production decreased by 0.4% versus 2019 (37% growth versus 2005)
• 96% of products launched or renewed in 2021 had an improved social and environmental profile
• 100 sites reached carbon neutrality in 2021

Social Achievements

• 100,905 people of underprivileged communities have gained access to employment through one of our Group’s programmes
• 100% of our brands have conducted an assessment of their environmental and social impact
• Over 41,400 employees completed the Green Steps or Green tests training modules in 2021

Governance Achievements

• Strong governance structure with Board of Directors integrating sustainability challenges and a Chief Corporate Responsibility Officer reporting to the Board
• Variable portion of the Chief Executive Officer’s annual remuneration incorporates quantitative and qualitative non-financial objectives, including objectives associated with the L’Oréal for the Future programme
• Non-financial objectives included in the variable remuneration of top management since 2016

Climate Goals & Targets

Environmental Challenges

• Macroeconomic risk driven by the transition to a low carbon economy
• Lack of feasible technologies in the short- to mid-term for replacing fossil fuels
• Lack of feasible technologies and feedstock in the short- to mid-term for sourcing PCR materials for packaging or replacing petro-based by bio-based raw materials
• Market availability for recycled plastics
• Price volatility for recycled plastics

Mitigation Strategies

• Improving energy efficiency and sourcing 100% renewable energy
• Green Sciences initiatives for renewable raw materials
• 3R sustainable packaging roadmap (Reduce, Replace, Recycle)
• Product ecodesign program and SPOT Tool
• Programmes to reduce GHG emissions from product transportation
• Creating consortia and partnerships to develop biorecycling processes and alternative materials

Supply Chain Management

Responsible Procurement

• Commitment to ensure that 100% of our strategic suppliers’ employees will be paid at least a living wage by 2030
• Collaboration with suppliers to reduce their GHG emissions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SLBP 2020, SLLP 2021, SBTi

Certifications: ISO 50001, LEED Gold Level

Third-party Assurance: Sustainalytics (Second Party Opinion), qualified external auditor (Limited Assurance)

UN Sustainable Development Goals

• SDG 7
• SDG 12
• SDG 13

The strategy contributes to 16 of the 17 UN SDGs.

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Water
• Resources
• Social engagement
• Living wage
• Inclusive sourcing
• Gender balance
• Diversity, Equity and Inclusion

Environmental Achievements

• 65% reduction in absolute CO2 emissions and 10% reduction in water withdrawal per unit of finished product vs 2019 (plants and power stations)
• 90% renewable energy for its operated sites
• 61% of the waste generated on our industrial sites is reused or recycled
• 96% of plastics used in the packaging of L’Oréal products will be recycled or biobased.
• 85% of the PET plastic used came from recycled sources.

Social Achievements

• Launched L’Oréal for All Generations programme
• Launched Simplicity 2 programme to transform ways of working
• Profit sharing: €461 million
• Over 37,000 employee shareholders
• 93,165 people accessed work through the Inclusive Sourcing programme
• Nearly 2.5 million vulnerable women supported via endowments from the L’Oréal Fund for Women
• Ranked number one in France in Equileap’s 2023 Gender Equality Ranking

Governance Achievements

• Separation of the functions of Chairman of the Board and Chief Executive Officer
• 50% of the Directors are independent
• 50% of its Board members are women
• Two Board Committees out of four are chaired by women

Climate Goals & Targets

Environmental Challenges

• Geopolitical tensions
• Inflationary pressures
• Stagnating Chinese market
• Slowdown in North Asia due to reboot of Travel Retail
• Supply chain volatility

Mitigation Strategies

• Strategy to rebalance regional footprint
• Operational agility
• Investment in targeted initiatives to deliver L’Oréal for the Future commitments
• Continued investment in the quality of its offline distribution
• Investing in distribution centers to enhance personalized beauty services and experiences
• Co-creating low-carbon multimodal solutions with carriers

Supply Chain Management

Supplier Audits: 1,242 in 2023

Responsible Procurement

• L’Oréal Buy & Care responsible purchasing policy
• Inclusive solidarity model to provide access to employment for people from economically or socially disadvantaged communities

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, EcoVadis, Ethisphere, Bloomberg Gender-Equality Index, AFEP-MEDEF Code, UN Global Compact, SBTi

Certifications: ISO 9001, ISO 22716

Sustainable Products & Innovation

• AirLight Pro hair dryer
• Garnier Fast Bright with Vitamin C
• Revitalift Clinical and Glycolic Bright by L’Oréal Paris
• Elvive Bond Repair by L’Oréal Paris
• Garnier Good haircolor

Awards & Recognition

• CDP AAA rating (8 consecutive years)
• EcoVadis Platinum medal
• Ethisphere World’s Most Ethical Companies
• Bloomberg Gender-Equality Index
• Universum Top 10 most attractive employers
• CES Innovation Awards