2024 universal registration document

4.1.2 The L’Oréal for the Future sustainability programme

4.1 Introduction

4.1.2 The L’Oréal for the Future sustainability programme

4.1.2 The L’Oréal for the Future sustainability programme

First sustainability programme (launched in 2013): Sharing Beauty With All

Sharing Beauty With All, L'Oréal's first sustainability programme, was launched in 2013 and set targets through to 2020. The aim of this programme was to embed sustainability within all levels of the Company's value chain, from innovation to production and consumption. Notable achievements under the programme include an 81% reduction in CO2 emissions from plants and distribution centres in absolute terms, and a 49% reduction in their water withdrawals(1) compared with 2005.

Second programme (launched in 2020): L’Oréal for the Future

Launched in 2020, the L'Oréal for the Future programme embodies the L'Oréal Groupe's deep commitment to sustainability by focusing on three key pillars: transforming L’Oréal’s business to respect “planetary boundaries”(2), empowering its business ecosystem in its transition to a more sustainable world, and contributing to solving the world's urgent social and environmental challenges. With ambitions for 2025 and 2030 (see section 1.4.2), L'Oréal for the Future reflects the Group's conviction that there can be no economic success without environmental and social responsibility.

Since its launch, L'Oréal for the Future has driven significant progress. For example, in 2024, the Group's sites operated with 97% renewable energy(3), 92% of the ingredients in biobased formulas and packaging materials were traceable and originated from sustainable sources, and through its various Funds, L'Oréal invested in the rehabilitation of degraded natural ecosystems or in support for vulnerable populations. This concrete progress demonstrates L'Oréal's commitment to taking responsibility for achieving inclusive and sustainable growth.

Towards a third era (launch for 2025): mid‑term review of L'Oréal for the Future

The constantly changing global environment means that companies are constantly having to adapt and to refine their assessments of sustainability risks and opportunities on a regular basis. Regulations, especially the new Corporate Sustainability Reporting Directive (CSRD), are also changing, along with the expectations of civil society. As the Group matures in these matters, new issues arise. Furthermore, environmental knowledge is also evolving. The climate projections of the Intergovernmental Panel on Climate Change (IPCC), for example, are regularly updated, which has an impact on companies' strategies for reducing greenhouse gas emissions, leading them to define mitigation action plans but also adaptation plans. Accordingly, at the beginning of 2024, the Group revised its decarbonisation targets to bring them into line with the new recommendations of the Science Based Target initiative (SBTi). This exemplary commitment testifies to L’Oréal’s determination to consistently adopt a proactive approach. At the same time, the systemic shift towards a circular economy requires large-scale implementation of extended producer responsibility (EPR) schemes using large-scale collection and sorting systems. These systems are essential for optimising eco-design, enabling re-use and achieving high recycling rates, and promoting the availability of high-quality recycled products. These combined challenges underline the need to adapt and consolidate sustainability programmes to meet current and future challenges.

L'Oréal is working on the one hand to more deeply integrate double materiality into its strategy, and on the other hand to base itself on the most recent scientific data. To facilitate this process, L'Oréal is continually strengthening its performance tracking systems, its sustainability leadership organisation and its investment in innovation.

Focus on materiality

Recent materiality assessments carried out within the CSRD framework, in particular through TCFD and TNFD assessments, have highlighted the increased importance of certain L'Oréal for the Future objectives and the lesser importance of others. Whilst L'Oréal fully supports the CSRD's emphasis on standardised language for greater comparability, some of its commitments use their own specific terminology or methodology and therefore require adaptation. Some objectives currently represent ongoing ambitions and will be formalised as broader global policies to fully align with the CSRD reporting frameworks. In light of these factors, L'Oréal deemed it more appropriate not to present these objectives in the sustainability report.

Adapt and prioritise

To meet these constantly evolving requirements, L'Oréal launched a global reassessment of its commitments in 2025, the mid-point of its L’Oreal for the Future programme launched in 2020, seeking to confirm its priorities in light of the lessons learned, while putting these commitments into place and to ensure their relevance, thoroughness and genuine level of ambition.

This approach will enable L'Oréal to focus its efforts on the most important and strategic issues as identified by the double materiality assessment carried out in 2024, and to adjust its actions and/or targets according to the progress made and the continuing challenges to come.

To align with CSRD terminology, L'Oréal plans to engage in a specific dialogue with stakeholders in order to integrate certain ambitions more explicitly into formal policies as defined by the CSRD. This approach will highlight L'Oréal's advanced maturity in certain areas, demonstrating how deeply these ambitions are integrated into its decision-making processes. It will also enable L’Oréal to focus its resources and efforts on the issues that matter most.

Collaborative transformation

L'Oréal recognises that environmental and social challenges are inextricably linked and require a collaborative response involving its entire ecosystem. Reducing the carbon footprint throughout the product life cycle requires continuous innovation: sourcing sustainable ingredients, reducing packaging and promoting responsible consumption are all crucial to its aims. Achieving these objectives depends on many external factors. Collaboration with business, governments and consumers is essential to overcoming technological and financial obstacles.

The complexity of L'Oréal's value chain – from raw materials sourcing to distribution – is also a major social challenge for the Group, especially in terms of human rights. L'Oréal strives to support its suppliers in adopting responsible practices throughout the value chain. Collaboration with NGOs, experts and other industry players is key to overcoming these challenges.