Sustainability is deeply rooted in the values and choices of L'Oréal's Purchasing Department. Supporting its ecosystem throughout the value chain is fundamental for L'Oréal in its efforts to meet today's environmental and social challenges. With the aim of moving towards a more sustainable beauty industry alongside its suppliers, L'Oréal applies a sustainable purchasing policy framework to both production and service purchases. The policy is set by the Group's sustainable purchasing team in agreement with internal stakeholders (the Ethics, Sustainability and Operations departments). It is applied by L'Oréal's buyers in the various purchasing areas and Zones with the aim of forging responsible and transparent relationships with all suppliers and to limit L'Oréal's environmental and social impact.
The policy is built around four pillars. These are in turn part of L'Oréal's Mutual Ethical Commitment Letter, which formalises the joint commitment that L'Oréal has with its suppliers:
Governance over this policy is integrated into L'Oréal's purchasing processes, based on measurable objectives that are in line with the Group's environmental, social and economic commitments. Reporting to the Chief Operations Officer, the sustainable purchasing team defines the relevant action plans in conjunction with the managers of each purchasing field and zone, as well as with internal and external stakeholders.
Key indicators are monitored and shared at least once a year at Group level, in particular through management committee meetings dedicated to non-financial commitments. Regular monitoring is rounded out by internal and external audits of L'Oréal's processes and quantitative indicators, which guarantee the system’s robustness.
In terms of the practical application of these commitments, L'Oréal has set up a supplier evaluation system based on five criteria: quality, social and environmental responsibility, innovation, services, and competitiveness. These criteria define the performance expected of suppliers, with a 20% weighting on environmental and social commitments.
To help them progress in their sustainable development practices and comply with these standards, L'Oréal provides its strategic suppliers with various resources and tools, including sharing best practices on the Spread the Best Practices platform, webinars and training materials. The purchasing teams in L'Oréal's purchasing fields and Zones ensure that this knowledge is disseminated locally, and support suppliers in its implementation.
As part of its Research & Innovation policy, L'Oréal is aiming to reduce water consumption linked to the use of its products. To achieve this, L'Oréal is developing formulas that require less water for rinsing (for example, that combine several functions, such as 2-in-1 shampoos), or even no rinsing at all (such as no-rinse conditioners and face cleansers), and is teaming up with or acquiring companies such as Gjosa to offer innovations such as the L'Oréal Water Saver showerhead used in hair salons to reduce the water for rinsing off hair products.
