L’Oréal has had a health and safety policy for the materials used in its packaging for 20 years. It specifies the conditions for acceptance or rejection of substances that may be present in our packaging, regardless of the material. This policy is updated annually in line with regulatory developments and scientific progress, and each supplier agrees to fully comply with regard to the packaging used in the Group’s products. Quality auditing is carried out to ensure compliance.
The Group has begun working on this value chain, particularly with suppliers of plastic packaging and recycled plastics, by involving them in analysing and mitigating upstream social risks. All recycled plastic producers used by the Group’s packaging suppliers undertake to comply with the Group’s standards and commit to this by signing the Mutual Ethical Commitment Letter. A social audit is carried out at each recycled plastic supplier factory located in a high-risk country. A social audit demonstrating compliance is a prerequisite for any commercial relationship between recycled plastic suppliers and the Group’s plastic packaging suppliers. Conscious that transforming the sector requires the cooperation of all of its stakeholders, including suppliers of plastic packaging, recycled plastics and other end products, the Group maintains active dialogue with numerous stakeholders in order to shift the industry towards responsible sourcing.
Once sources have been analysed, social audits are conducted at recycling sites based in high-risk countries in accordance with the Group’s social audit procedure.
Commitment of suppliers to self-assess and move forward with action plans through CDP.
L’Oréal actively works with its suppliers to help them improve their performance in terms of sustainability.
In 2007, L’Oréal joined the CDP supply chain programme for greater transparency in the actions of its suppliers and to monitor suppliers' progress with regard to L’Oréal’s objectives. In 2014, participation in the CDP Climate programme was made compulsory by L’Oréal for all strategic suppliers. The aim is to measure and report their emissions, set targets for reducing these emissions and communicate their action plans to achieve this objective successfully.
Suppliers' commitment to self-assessment and improvement through corrective actions recommended by EcoVadis: By participating in the EcoVadis assessment, L'Oréal suppliers evaluate their environmental and social policies thanks to the expertise and recommendations of EcoVadis analysts qualified in multi-sector risk analysis. This assessment is useful for the continuous improvement of suppliers, and also contributes to the transparency of industry practices, as well as to the rating of suppliers'environmental and social performance. In total, 96% of strategic suppliers have been assessed by EcoVadis.
(iii) Additional actions related to climate change
Since 2007, the Group has carried out an annual greenhouse gas (GHG) emissions assessment in order to monitor and report its emissions and identify action plans to reduce its carbon footprint. This assessment is conducted in accordance with the Greenhouse Gas Protocol (GHG Protocol) rules, the international reference method for recording GHG emissions.
At end-2024, the Group's total GHG emissions (using the market-based method) were estimated at 7,260,479 tonnes of CO2 equivalent, breaking down into the following categories:
In response to the climate emergency, L'Oréal drew up a climate transition plan in 2023, whose pathway was validated by the Science Based Targets initiative (SBTi) in 2024. This plan is aimed at reducing the Group’s Scopes 1, 2 & 3 emissions over time horizons up to 2030 and 2050, in line with the requirements of the Corporate Net Zero guidelines and the recommendations of the Intergovernmental Panel on Climate Change to limit global warming to 1.5°C. The objectives of the plan are to:
The Group's decarbonisation levers for achieving these objectives over the time horizon up to 2030 are as follows:
For Scopes 1 & 2:
For Scope 3:
In addition to the above decarbonisation levers, the Group has the following levers to encourage and help suppliers reduce the emissions related to their own activities, and strengthen the transparency and monitoring of their emissions:
Packaging:
Formulas used in finished products:
Digital marketing:
Point-of-sale (POS) advertising:
Logistics:
Business travel:
Reduce the impact of employee business travel through a dedicated travel policy.
Financial resources for achieving the Group’s climate objectives:
A management standard, which is deeply integrated into the budget processes, ensures that each L'Oréal entity takes sustainability factors into account in its financial planning, including decarbonisation efforts. However, while this holistic approach is effective for understanding the effects for the Group as a whole, it does not separate out investments specifically dedicated to climate transition, particularly those related to Scope 3 emissions, which are often included in entities’ operating budgets.
L'Oréal is actively working to refine its methodologies for monitoring and reporting on these investments more accurately, but is not currently in a position to report on specific amounts for future investments related to decarbonisation. With regard to the Group's Scopes 1 & 2 emissions – which now account for 1% of its total emissions – it is important to note that these emissions have already been reduced by 51% compared with 2019 thanks to substantial investments in previous years, and currently represent only a limited part of the Group's overall commitment to sustainability. As a result, the €78 million of eligible CapEx (excluding leases) currently recognised under the European Taxonomy’s climate change mitigation objective does not fully reflect the breadth and depth of the transformation of L'Oréal’s business.
