4.4 Water resources: consumption and withdrawals (E3)
4.4.2 Water policies4.4.1.1 Material water resources-related impacts, risks and opportunities
| Description | Subtopics | Policy | Action plans | |
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Description The Group's activities may have an impact on water availability at different levels of the value chain, potentially contributing to tensions over this resource, particularly in regions already subject to water stress. Upstream, the agriculturalpractices required to grow certain raw materials may put pressure on local water resources. The production phase of cosmetic products, which requires water at various stages, for example to rinse the processing tanks, must also be monitored. Lastly, the usage of products by consumers, particularly when rinsing off shampoos or shower gels, contributes to water consumption. |
Subtopics Water consumption Water withdrawal |
Policy EHS policy Sustainable purchasing policy R&I policy |
Action plans Water resource preservation at operated sites Working with suppliers to use water responsibly Reducing the quantity of water needed for rinse-off products |
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Description By promoting best water management practices, the Group can have a positive influence by improving industry applications – including among strategic suppliers, especially those with a potential impact on water resources – innovating to offer products that require less water and raising consumer awareness on ways of reducing water consumption when using beauty products. |
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Description Water stress poses three financial risks for L'Oréal. The supply of raw materials may be affected by water shortages in some regions. Production site operations in areas of water stress are vulnerable to disruption. Lastly, demand for and sales of products whose everyday use requires water, such as shampoos, is likely to fall in regions affected by water shortages where local consumers may not be able to use them. |
Time horizon: ST = short term; MT = medium term; LT = long term.4.4.2 Water policies
As part of the L'Oréal for the Future programme, the Group is aiming to reduce its water consumption at every stage in its products’ life cycles.
4.4.2.1 EHS policy for water management at operated sites
L'Oréal is aware of the increasing pressure on water resources and is adopting responsible management policies across its sites. The EHS policy for water management at operated sites aims to preserve this precious resource through a multi-disciplinary approach detailed in the action plan. Through the innovative Waterloop concept, L'Oréal is aiming to use recycled and reused water in industrial processes. Waterloop equipment is being deployed by order of priority of the water situation in the watersheds in which L'Oréal operates. This approach is fully in line with the Group's EHS policy, which governs the use of water from withdrawal to discharge.
Recycling and reusing water with the Waterloop concept
Using water re-use and recycling techniques, Waterloop limits the amount of water withdrawal for industrial purposes at L’Oréal’s production sites. In practical terms, mains water is only used for human consumption and manufacturing cosmetic products, while industrial needs, such as cleaning or steam production, use water treated directly on site.
This system is based on two essential pillars:
- process optimisation: reducing the volume of water used in production processes; and
- reuse and recycling: wastewater treatment using advanced technologies such as ultrafiltration and reverse osmosis, to obtain high-quality water that can be reused in industrial processes.
Launched in 2017, Waterloop is operational at several of the Group's production facilities, with a gradual roll-out based on the order of priority of regional water stress levels.
The EHS policy also covers treatment of industrial effluents and is aimed at reducing the environmental impact of the water leaving the sites (see section 4.3).