4.5 Biodiversity and ecosystems (E4)
4.5.2 Biodiversity policies4.5.1.1 Material biodiversity-related impacts, risks and opportunities
Each year, L'Oréal analyses the footprint of biobased materials to determine the extent and condition of the ecosystems linked to these materials. In 2024, a risk analysis for 2030 and 2050 was carried out on all biobased materials, analysing six ecosystem services(1). This analysis was supplemented by a financial assessment of the impacts and risks identified in respect of revenue or possible costs linked to the Group's business model. These analyses are used to prioritise action plans for the 15 most material biobased materials. These models were developed in collaboration with stakeholders.
| Description | Subtopics | Policy | Action plans | |
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Description Since it uses various botanical species in its formulas, L'Oréal could have an impact on certain ecosystems. For example, the agricultural practices required to grow certain raw materials may put pressure on ecosystem services such as pollination and biomass supply. |
Subtopics Impacts on the extent and condition of ecosystems Impacts and dependencies on ecosystem services Biodiversity loss due to land-use change, fresh water-use change and sea-use change Biodiversity loss due to direct exploitation |
Policy Sustainable purchasing policy Forest policy |
Action plans Reducing the impact on ecosystems Restoring biodiversity |
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Description The ecosystem services provided by nature are intrinsically linked to the Group's business model, as many key ingredients such as vegetable oils and plant extracts are sourced directly from ecosystems. The Group models, for example, deteriorated ecosystems (e.g., through deforestation, biodiversity loss or pollution) that could lead to shortages, higher prices and a drop in the quality of ingredients, directly impacting production and therefore the Group's business. |
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Description Developing innovative solutions(2) to reduce the impact of the beauty industry on biodiversity is a promising investment. These could help reduce the Group's dependence on certain ecosystem services. By responding to growing consumer demand for more responsible products, the large-scale roll-out of these solutions could generate substantial savings. Lastly, diversifying supply sources and working to restore ecosystems may strengthen the resilience of the Group’s value chain. |
Subtopics L'Oréal Fund for Nature Regeneration |
Policy Contribute, through the L'Oréal Fund for Nature Regeneration, to the restoration of one million hectares of degraded ecosystems |
O IRO: I- = negative impact; I+ = positive impact; R = risk; O: opportunity.
Time horizon: ST = short term; MT = medium term; LT = long term.
4.5.2 Biodiversity policies
As L'Oréal prioritises the use of plant-based ingredients in formulas and packaging, it recognises the crucial role of biodiversity preservation and aims to play its part in supporting it. Mindful of growing biodiversity loss and the increasing pressure on biodiversity-rich ecosystems, the Group is adjusting its organisation so as to strive to ensure:
- the biobased ingredients used in the Group’s formulas and packaging materials are traceable and originate from sustainable sources; and
- the land cover required for producing ingredients remains unchanged.
L'Oréal's sustainable purchasing policy (see section 4.9.2.2) promotes an integrated approach, reconciling respect for human rights and the protection of ecosystems. The Group is focusing on regenerative agriculture to restore soil quality and preserve biodiversity, while taking account of the challenges related to climate change.
L'Oréal has mechanisms such as the Speak Up platform and the “palm alert” procedure (see section 4.9.3), designed to facilitate feedback and channel concerns from stakeholders regarding the impact of L'Oréal's activities on shared resources and ecosystems.
The aim of L'Oréal's forest policy (see section 4.9.2.2) is to establish a 100%-sustainable and traceable supply of forestry raw materials, without deforestation or exploitation, while ensuring that the rights of workers and communities are respected. The policy is built around two pillars:
- responsible forest management: encouraging traceable and sustainable sourcing; and
- protection and rehabilitation: supporting the protection and restoration of forest ecosystems, while promoting a sustainable economy for local populations.