1.3 Value-creating model
1.3.2 Value chain1.3.2 Value chain CSRD(1)
Value chain
Research, Innovation and Technology
- 694 patents filed in 2024
- €1,354m in 2024 expenditure (3% of sales)
- 21 cosmetics research centres, 13 assessment centres, 1 advanced research centre
- More than 4,200 employees in the Research team
Design
- In 1989, end of animal testing for finished products
- Development of predictive method with the production of reconstructed skin
Sourcing
- 1,147 social audits were conducted in 2024
- 75% of the number of newly listed raw materials are renewable or derived from abundant minerals
Factories and logistics hubs
- 36 factories worldwide
- In 2024, 100% of the Group’s plants were ISO 9001 certified and 100% were ISO 22716 certified (see section 1.3.5.)
Digital and marketing
- 37 international brands
- 78.6% of our media investments are digital 4
- largest advertiser worldwide, across all industriesth(2)
- Responsible communicationcommitment: Member of the Unstereotype Alliance
- L'Oréal's Influencer Value Charter
- All the Group’s brands committed to diversity, equity and inclusion
Distribution channels
- More than 7 billion products distributed
- 158 distribution centres
Use and end-of-life of products
The 3 “R” s approach to the eco-design of packaging: Reduce packaging intensity; Replace with materials with a better environmental footprint; Recycle by creating packaging that will contribute to the circular economy
Performance of the L'Oréal for the Future programme in 2024 (See SECTION 1.4.2)
66% of our ingredients in formulas are biobased, derived from abundant minerals or from circular processes
97% achievement of renewable energy at operated sites(3)
37% of plastic packaging is from recycled or biobased sources.
53% of the water used in our industrial processes is from recycled and reused sources
92% of ingredients in formulas and biobased packaging materials are traceable and come from sustainable sources
76% of the waste generated on industrial sites is reused or recycled
49% of plastic packaging is refillable, reusable, recyclable or compostable
Creating value for our stakeholders
Employees
- 45,000 employees out of more than 90,000 are L’Oréal shareholders
- 25,000 job opportunities created for young people under 30 each year
Scientific community and start-ups
- €1.3bn invested in Research & Innovation
- More than 20 minority investments made by BOLD over the beauty value chain including brands, tech, platforms and biotech
Suppliers
- €50 million invested in the Solstice debt fund, co-created with Chenavari to support the decarbonisation of industrial suppliers
- 49% of plastic packaging refillable, reusable, recyclable or compostable in 2024
Customers and distributors
Partnerships with customers and distributors as part of the Green Joint Business Plans to encourage more sustainable consumption habits, for example using refillable products and the decarbonisation of product transportation.
Consumer
- Over 7 billion products distributed in more than 150 countries
- Member of the EcoBeautyScore consortium which creates a common display system to provide consumers with a clear, transparent and comparable assessment of cosmetic products’ environmental impact.
Consumers and plane
- CDP AAA rating for the 9th consecutive year for initiatives to combat climate change, protect forests and ensure sustainable water management
- More than 4.5 million people benefiting from the Group’s brands’ social commitment programs
Public authorities
€2.8bn taxes and duties paid to governments and local authorities in 2024
Shareholders and investors
- 6.6% annual shareholder return over the past 5 years
- A dividend that has never declined in over 60 years
- L’Oréal is part of the CAC 40 Index
- This paragraph incorporates by reference the disclosures required by the CSRD (ESRS 2 SMB-1) for the Sustainability Report ( see sections 4.1 and 4.1.3.3).
- COMvergence ranking.
- Operated sites, excluding safety and security facilities.