2022 Universal Registration Document

Chapter 1 : Presentation of the Group – Integrated Report

 

1.2.2. Value chain

VALUE CHAIN
  • Research, Innovation and Technology
    • 561 patents
      filed in 2022
    • €1,139 million: 2022 expenditure (3% of sales)
    • 20 cosmetics research centres,
      13 assessment centres, 1 advanced research centre
    • 4,222 employees
      in the Research team
    • Colorsonic and Coloright, winners of the CES Innovation Awards 2022
  • Design  
    and Marketing
    • In 1989, testing of finished products on animals ended
    • Development
      of predictive method
      with the production
      of reconstructed skin
  • Sourcing
    • 1,145 social audits were conducted in 2022
    • €6.4 billion in production-related purchases
    • 82% of newly-listed raw materials are renewable
    • 24% of the number of newly-listed raw materials sourced from green chemistry
  • Factories  
    and logistics centres
    • 38 factories worldwide
    • In 2022, 97% of the Group's factories are ISO 9001 certified and 100% comply with the ISO 22716 standard
  • Digital  
    and Marketing
    • 36 international brands
    • 75% of our media investments are digital
    •  4th biggest advertiser worldwide, across
      all industries
    • Responsible communication commitment: Member of the Unstereotype Alliance
    •  L’Oréal’s Influencer Value Charter
  • Distribution
    • More than 6.5 billion products distributed
    • 152 distribution centres
    • End of 2022, elimination of single-use plastics from all distribution centres worldwide
  • Product use and end-of-life
    • L’Oréal is a founding member of
      the EcoBeautyScore Consortium
    • 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
ENVIRONMENTAL PERFORMANCE
  • BY 2030,

    95% of our ingredients in formulas will be biobased, derived 
    from abundant minerals or from circular processess

    2022 RESULTS  61%

  • BY 2030,

    All Group products will be eco-designed (1)

    2022 RESULTS 97%

  • BY 2030,

    100% of our strategic suppliers’ employees will be paid at least a living wage

    2022 RESULTS Reporting in progress 

  • BY 2030,

    100% of the water used in our industrial processes will be recycled and reused in a loop 
    (Waterloop factories(2))

    2022 RESULTS 13%

  • BY 2030,

    100% of the advertising displays at our 
    points of sale will be eco-designed(1)

    2022 RESULTS 97%

  • BY 2030,

    on average we will have halved the greenhouse gas emissions per finished product linked to the transport of our products compared to 2016

    2022 RESULTS +6.7%

  • BY 2030,

    we will innovate to enable our consumers to reduce their greenhouse gas emissions resulting from the use of our products by 25% compared to 2016, on average and per finished product

    2022 RESULTS-24%

CREATING VALUE FOR OUR STAKEHOLDERS
  • Employees
    • €7.2 billion in personnel costs (including social security contributions)
    • 1st prize for gender equality in business (Equileap France)
    • Profit-sharing:€418 million
    • Over 37,000 employee shareholders
    • 87,369 employees at the end of 2022
  • Consumers
    • Roll-out of an environmental and social labelling system for products
    • Product quality and safety: approximately 100 quality checks for each cosmetic product
  • Shareholders
    • Dividends distributed in 2022: €2.6 billion
    • Market capitalisation at 31/12/2022: €178.5 billion
    • Shareholder return over 10 years: +14.05% per year
  • Providers and suppliers of goods and services
    • 49% of strategic suppliers were evaluated on the basis of their environmental and social performance (total, direct, indirect)
  • Government and local authorities
    • Tax charge in 2022:€2.4 billion
  • Communities
    • More than 2.5 million people benefited
      from the brands’ social commitment programmes.
    • L’Oréal For Youth: 25,000 work opportunities per year for under-30s.
  • Ecosystem and environment
    • 61% of the waste generated by our industrial sites
      was reused or recycled
    • 57% reduction in CO2 emissions in absolute terms and 6% reduction of the water withdrawal per unit of finished product vs 2019 (factories and distribution centres)

(1) The mention of "eco-designed" products refers to new or renovated products whose social and environmental profile improved.

(2) The Concept of a Waterloop Factory is defined in section 4.3.1.1.4.