2024 universal registration document

1.3.5 Operations: a key driver of the Group’s growth

1.3 Value-creating model

1.3.5 Operations: a key driver of the Group’s growth

1.3.5 Operations: a key driver of the Group’s growth

L’Oréal’s Operations teams create innovative, inclusive and sustainable beauty in collaboration with their partners. They harness the power of technology and strive for excellence to design, develop, supply, produce and distribute products and services worldwide. Consumers are at the heart of the decisions made by the Operations teams, which seek the most agile and effective solutions, and guarantee compliance with strict standards on quality, safety and CSR across the globe.

Expertise and responsiveness to drive growth

Building on years of operational excellence, the expertise and commitment of the Operations teams have boosted the Group’s growth. In a volatile and challenging global context, they have demonstrated their responsiveness and resilience, while pursuing their digital, sustainable and innovative transformation. L’Oréal’s industrial activities are at the cutting edge of technology, reinforcing its agility across the value chain to meet market challenges.

Thanks to science and technology, the Operations teams is constantly innovating to enhance the personalisation, agility and traceability expected by consumers. Digitalisation is a major lever for simplification, ergonomics and real-time access to information.

Quality and safety: a priority

Offering consumers the highest quality product is an absolute priority. Over several decades, L’Oréal has set up a single, global and structured quality and safety management system that applies to all its plants and subsidiaries worldwide. Detailed information is provided in section 4.10.

This unique system guarantees manufacturing excellence and the products’ quality with the same high standards applicable everywhere in the world. 100% of the Group's plants are certified to ISO 22716(1) and ISO 9001(2). The ongoing quality improvement process resulted in a low rate of consumer complaints in 2024: 100 complaints per million products sold.

Employee safety is central to the L’Oréal model: in 2024, the Safety Management System, which applies to the Group’s teams and all administrative sites, laboratories, plants, distribution centres and shops, was again recognised by RoSPA(3).

At the centre of design and development is innovation in responsible packaging

Thanks to the science of materials and design, in order to provide the best consumer experience and product performance, packaging is a key differentiating factor for the product and of its perceived value-creation by consumers. The L’Oréal teams, distributed over five Packaging Hubs around the world, specialise in design, consumer experience, innovation and product development. They rely on the expertise of laboratories dedicated to materials and packaging to create cutting-edge innovations. L’Oréal filed 74 patents for packaging in 2024.

Since 2007, L’Oréal has adopted an eco-design process for its packaging based on the 3Rs: Reduce packaging volumes and therefore resource use; Replace materials and processes with others that have a better environmental footprint (renewable, post-consumer recycled, lower carbon impact processes, etc.); and Recycle by creating packaging that contributes to the circular economy.

  • Reduce At the end of 2024, L’Oréal reduced the intensity of packaging used for its products by 11% compared with 2019.
  • Replace At the end of 2024, 37% of the plastics used in the Group’s packaging came from either recycled or biobased sources.
  • Recycle At the end of 2024, 49% of plastic packaging was refillable, reusable, recyclable or compostable.
A purchasing programme that combines economic, environmental and social value

To accompany the Group's growth, Purchasing teams select suppliers with the best economic, environmental and social performance in accordance with L'Oréal's responsible purchasing policy. Supplier performance is monitored thanks to precise indicators relating to respect for human rights, environment, business ethics and diversity, equity and inclusion, and to their ability to innovate and meet the Group’s requirements in terms of quality, agility, service and competitiveness.

L’Oréal builds solid relationships with its suppliers to ensure that it sources products and ingredients responsibly, and to guarantee the flexibility, reliability and traceability of its supply networks. These long-term supplier partnerships play a key role in the Group’s ability to secure the volume and price of its raw materials supplies. 1,147 audits were carried out in 2024, meaning 4,470 since 2021.

Since 2010, L'Oréal has chosen to work with suppliers that have an inclusive approach, in order to provide access to employment for people from economically or socially disadvantaged communities. At the end of 2024, more than 106,000 people had been able to access employment via L’Oréal’s worldwide Inclusive Sourcing programme.

(1) Good manufacturing practices.

(2) Quality management systems.

(3) Royal Society for the Prevention of Accidents.