Palm oil production, cut fruit
Corporate Social Responsibility

Moving towards "zero deforestation" guaranteed palm oil

In June 2016, L'Oréal published its first palm oil sourcing progress report. It reviews the strategy and initiatives introduced by the group to ensure a sustainable approach to sourcing palm oil.

Going beyond RSPO(1) certification

To deliver on its "zero deforestation" commitment, L'Oréal is taking initiatives to guarantee sustainable sourcing of palm oil, an ingredient used in some of its products. Since 2012, 100% of the palm oil and derivatives used by the group has been RSPO-certified, but L'Oréal wanted to go further and ensure that by 2020 its palm consumption will be responsible and deforestation-free thanks to a three-pronged strategy: establishing traceability, supporting small producers and sharing best purchasing practices to extend its positive impact even further.

Making the supply chain more transparent

The process of transforming palm oil derivatives involves a multitude of players and a complex supply chain. Since 2014, L'Oréal has been rolling out a completely new approach: mapping the whole process and tracking to their point of origin the derivatives purchased by the group from its suppliers. By the end of 2016, 80% of derivative volumes had been traced back to refineries, 50% to mills and 12% to plantations. Tracking derivatives in this way is an essential first step in making sure that suppliers are complying with L'Oréal's responsibility commitments.
Oil palm trees plantation
Since 2012, 100% of palm oil and derivatives used by the group has been RSPO-certified

Supporting independent producers

The group is also committed to supporting small-scale independent palm oil producers, often faced with deforestation and difficult living conditions. In partnership with its suppliers and NGOs(2), L'Oréal is leading projects that enable small producers to connect with market demand for "zero deforestation" palm oil and promote the use of sustainable farming methods.
Palm oil farmers living in houses at the heart of their plantation

Transforming buying practices for the long-term

To support the efforts of all the actors involved in the chain, L'Oréal has set up a “Sustainable Palm Index” that introduces new criteria for evaluating palm derivative suppliers. The idea is that suppliers evaluate their own supply chain, practices and compliance with the "zero deforestation" policy. The index is a tool that is shared with all the palm oil supply partners who want to adopt this approach.
(1) Roundtable on Sustainable Palm Oil.
(2) Non-Governmental Organisation.