2024 universal registration document

4. Sustainability Report

Site-related environmental indicators

The Operations Department is responsible for the environmental metrics for Group sites. Environmental metrics are reported monthly by each entity in the L'Oréal GRAAL consolidation reporting tool, which is available in each country where a L'Oréal subsidiary is located.

E1-5 – Energy

GRAAL output data are reprocessed centrally to comply with the CSRD:

  • higher heating value is converted to lower heating value (source: ADEME);
  • the proportion of nuclear energy in fossil fuel consumption is estimated based on the proportion of nuclear energy produced in each country (source: IEA);
  • estimated electricity consumption for L’Oréal's stores and sites with fewer than 50 employees: consumption for the surface areas are taken from the property database (Portfolio), and the estimates used in the calculation are based on a study carried out by the Group's DEEPKI partner in 2024;
  • data are extrapolated based on site surface areas for administrative sites with fewer than 50 employees, and compared with the known values for administrative sites covered by the GRAAL reporting tool;
  • L'Oréal considers 100% of this estimated energy to be non-renewable. The type of energy is determined by Deepki estimates.
E2-5 – Pollution of air and of water

NMVOC: manufacturing facilities using 90% of materials considered to be solvents and materials subject to restrictive legislation have drawn up a Solvent Management Plan (SMP) for 2024, based on consumption figures in 2023. For sites that have not drawn up an SMP in 2024, purchases of raw materials containing solvents are multiplied by the average emission factor of sites with an SMP. COD: data are taken directly from the GRAAL reporting tool.

E3-4 – Water consumption

Total water consumption indicators are calculated based on monthly meter readings at each L’Oréal site, with the data consolidated using the GRAAL system.

The “recycled water” figure refers to water that has been treated and reintroduced into the company’s water system for industrial or domestic use. “Reused water” refers to water that has already been initially used and is reused for another purpose, such as discharges from purified water treatment for product formulation that are then used in industrial processes.

The “Total water consumption in m3 in areas at water risk, including areas of high water stress” metric is calculated for the manufacturing facilities scope only. The consumption reported corresponds to that of facilities with a Water Risk Filter (WRF) DASH score of more than 3.0 (version 1). The WRF tool was developed by the German development finance institute DEG (Deutsche Investitions- und Entwicklungsgesellschaft mbH), in collaboration with WWF, and allows companies to identify and mitigate water-related risks in their activities. The resulting DASH score is a combination of various risk indicators most relevant to the sites, including the depletion of water resources, blue water scarcity and benchmark water stress. The score of 3.0 is recommended by the CDP as a criticality threshold on a scale of 1 to 5.

E5-5 – Resource outflows (waste)

The GRAAL internal reporting tool is completed each year by three elements:

  1. an annual calculation based on cumulative figures to the end of September, in compliance with CSRD requirements: breakdown of waste treatment between hazardous and non-hazardous waste for the Group's manufacturing facilities on a cumulative basis to the end of September. The data collected on this sample (which represents 65% of the Group's waste) are then extrapolated as follows: the breakdown between hazardous and non-hazardous waste for each type of treatment process is applied to the total amount of waste generated annually by the Group. Any remaining discrepancies are allocated on a pro rata basis to the treatments in each of the hazardous and non-hazardous waste categories;
  2. an annual inventory of all L'Oréal products (finished products, semi-finished products, promotional material) destroyed externally by subcontractors at the request and expense of the sites (Affaires Marchés) in each country;
  3. an extrapolation of data relating to site surface areas, for stores and administrative sites with fewer than 50 employees, versus known data for the administrative sites covered by the GRAAL reporting tool.