In signing L'Oréal's Mutual Ethical Commitment Letter (see section 4.4.2.2), suppliers undertake to put in place systems to prevent accidental pollution of the air, soil, surface and ground water during production and storage processes, including wastewater, as well as pollution during transportation. They also commit to raising employees’ awareness of what they should do in the event of an environmental incident.
The Group's suppliers can thereby assess their environmental footprint and implement appropriate prevention measures at each site concerned. The supplier risk analysis is based, at the very least, on the risks listed in the audit grid provided by L’Oréal when the Mutual Ethical Commitment Letter is signed. This grid was prepared in accordance with the list of the major risks described below and is applied during the referencing process and follow-up audits (see section 3.5.4.2):
Suppliers that present the most significant risks because of their activity or geographic location may be audited on these issues, as provided for in the risk map.
Serious cases of non-conformity (Needs Immediate Action, Zero Tolerance and Access Denied) or the failure to implement corrective actions can result in the non-listing of a new supplier or the suspension or delisting and termination of commercial relations. All the main instances of non-conformity found are monitored and consolidated annually by risk type.
L'Oréal has been taking concrete action for many years to identify, assess and limit the environmental footprint of products made available to consumers. This approach is based on several pillars:
L'Oréal is improving the environmental profile of its products, including formulas, packaging and raw materials, in particular through the SPOT eco-design tool, which assesses 14 environmental impact factors, including water quality (see section 4.4.3.3).
L'Oréal is also working on improving the biodegradable properties of its formulas, not only for new products but also for existing ones. Formulas are considered to be biodegradable when the raw materials in those formulas decompose quickly and completely in nature thanks to the action of micro-organisms (OECD 301 or equivalent ISO).
L'Oréal has taken the lead in eliminating microplastics, anticipating regulations and acting proactively to reduce the impact of its products on the environment. As early as 2014, L'Oréal began reformulating its rinse-off products such as shower gels and shampoos, succeeding in completely eliminating plastic microbeads from its exfoliating products as of 2017 (six years before the regulatory ban in Europe) and microplastics from all its rinse-off formulas as of 2020 (seven years before the regulatory ban in Europe). The Group continues to work on substitutions that do not compromise the effectiveness or performance of other product categories.
L'Oréal prohibits the introduction of new ingredients classified as SVHC(1) in its product portfolio. Aware of constantly evolving scientific knowledge, L'Oréal undertakes to remove from its products any substance which, although not classified as SVHC when the formula was first marketed, has subsequently been identified as such.
Thanks to the SPOT eco-design tool, L'Oréal automatically takes into account the potential environmental impact of substances of concern and, with the aim of improving the environmental footprint of its products, will automatically minimise the use and potential concentrations of this type of ingredient.
L'Oréal also rigorously assesses the toxicological and environmental profile of the ingredients used in its products, in accordance with the REACH and CLP (Classification, Labelling, Packaging) Regulations on cosmetic products.
