2022 Universal Registration Document

Chapter 4 : Social, environmental and societal responsibility

POLICY INDICATORS AND PRINCIPAL RESULTS
Fighting climate change, reducing waste, and preserving resources and biodiversity on operated sites Fighting climate change, reducing waste, and preserving resources and biodiversity on operated sitesINDICATORS AND PRINCIPAL RESULTS
  • reducing greenhouse gas emissions (Scopes 1 and 2, according to the GHG Protocol):
    • -57% for industrial sites (compared with 2019),
    • -87% for administrative sites and research centres (compared with 2019)
  • Scope 1 and 2 CO2 emitted by sites; 110 “carbon neutral”(1) sites at the end of 2022;
  • reducing energy consumption of sites:
    • 781,465 MWh☑ for industrial sites,
    • 162,914 MWh for administrative sites and research centres;
  • increasing renewable energy use: part of renewable energy consumed by sites:
    • 89% for industrial sites☑,
    • 92% for administrative sites and research centres;
  • preserving water resources: total water withdrawal of sites:
    • -6% for industrial sites (in litres per finished product compared with 2019),
    • +14% for administrative sites and research centres (in litres per 100 hours worked compared with 2019),
    • 5 Waterloop factories at the end of 2022☑;
  • preserving biodiversity:
    • 94 biodiversity inventories carried out,
    • 90% of sites do not or no longer use phytosanitary products to maintain green spaces ☑
  • reducing waste and preserving natural resources:
    • total generation of transportable waste from sites:
    • -3% for industrial sites (in grams per finished product compared with 2019),
    • +23% for administrative sites and research centres (in kg per 100 hours worked compared with 2019);
    • recovery index:
    • 96% for industrial sites☑,
    • 94% for administrative sites and research centres; material recovery index:
    • 61% for industrial sites☑,
    • 52% for administrative sites and research centres.
Involving suppliers in the Group’s transformation Involving suppliers in the Group’s transformationINDICATORS AND PRINCIPAL RESULTS
  • 49% of direct and indirect strategic suppliers were evaluated on the basis of their environmental and social performance;
  • encouraging strategic suppliers to reduce their greenhouse gas emissions: 652 suppliers participated in the CDP supply chain, representing 89% of the expenditures made for direct suppliers;
  • engaging strategic suppliers: 1,145 social audits were conducted in 2022 ☑;
  • 859 suppliers have had their social, environmental and ethical policies evaluated by EcoVadis;
  • 85,544 people gained access to work through the Solidarity Sourcing programme:
  • reducing Group emissions from product transport (Scope 3 as per the GHG Protocol): CO2 emitted by transport: 6.7% (tCO2 eq./unit sold compared with 2016).
Sustainability: from product design to end consumer Sustainability: from product design to end consumerINDICATORS AND PRINCIPAL RESULTS
  • 97% of the Group’s products have an improved environmental profile
  • 61% of our ingredients in formulas are from bio based sources, derived from abundant minerals or from circular processes;
  • “Zero Deforestation” commitment: 100% of purchases of palm oil and of palm oil and palm kernel derivatives have been certified as sustainable according to the RSPO criteria (2);
  • 38% of the Group’s plastic packaging is refillable, reusable, recyclable or compostable;
  • 97% of the advertising displays at points of sale are eco-designed;
  • number of people who have benefitted from the commitment of our brands: 2,398,916.
Meeting the most demanding climate standards Meeting the most demanding climate standardsINDICATORS AND PRINCIPAL RESULTS
  • GHG assessment, an annual exercise: Scopes 1, 2 and 3: 11,270 thousand tonnes of CO2equivalent;
  • climate commitments relating to Scope 3 (Science-Based Targets, Pledge of the UN Global Compact: “Business Ambition for 1.5 °C”;
  • adapting the model to the climate emergency: alignment with the TCFD principles;
  • alignment with the European Taxonomy, the priority target of which is the sectors with the largest environmental footprint, in which L’Oréal is not included.
 

☑ The Statutory Auditors have expressed reasonable assurance about this indicator.

(1) A site can claim “carbon neutral” status if it meets the following requirements:

  • • Direct CO2 (Scope 1) = 0, with the exception of: the gas used for catering, the fuel oil used for sprinkler tests, fossil energy consumptions during maintenance of on-site renewable facilities, cooling gas leaks if they are lower than 130 tonnes CO2eq./year; and
  • • Indirect CO2 Market Based (Scope 2) = 0. The renewable energy sources must be located on site or less than 500 kilometres from the site, and be connected to the same distribution network. The “carbon neutral” status, as defined above, is achieved without carbon offsetting. See section 4.3.1.1.3. B/.

(2) Roundtable on Sustainable Palm Oil.