2024 universal registration document

A lack of transparent and comprehensible information on the impact of products, combined with the risks of greenwashing and limited consumer understanding, could lead to poor choices and the selection of products with greater negative environmental impacts. This lack of transparency could also slow down L'Oréal's internal development of more sustainable products, since it would be hard for consumers to identify and prioritise genuinely eco-friendly options. False claims may also mislead consumers, leading to inappropriate product choices. Lack of advice on how to use products may lead to overuse, wasted water and inappropriate waste disposal.

Research & Innovation and packaging policy

EcoBeautyScore Association

Developing a Product Impact Labelling system for displaying products’ environmental impact

Helping to build an industry-wide scoring methodology: the EcoBeautyScore

In terms of positive impacts, transparent labelling and simplified choices help consumers make more responsible choices, which benefits both L’Oréal’s brand portfolio and the beauty industry as a whole.

L’Oréal is exposed to significant financial and reputational risks in the event of a lack of labelling transparency. Misleading labelling practices may lead to prosecution and fines, while an overall lack of transparency could undermine consumer and stakeholder confidence, impacting L’Oréal's sales, attractiveness and overall reputation.

The focus on displaying environmental impacts in a transparent and harmonised way represents a real opportunity for L'Oréal. For example, transparent and consistent labelling could lead to a levelling up of practices across the industry, thereby reducing the costs associated with compliance. Open communication about products may reinforce consumer confidence, driving greater loyalty, higher sales and a clear competitive advantage.