2022 Universal Registration Document

Chapter 4 : Social, environmental and societal responsibility

A continuous improvement process

The implementation of the standards, the spread of the L’Oréal EHS culture and the governance system in place contributes to the continuous improvement of the Group’s EHS performance. Major developments occurring within the framework of the Group’s Operations are also included with this same goal. The construction of a new factory, the purchase of new equipment or the definition of new processes are also opportunities to reduce the environmental footprint and safety risks.

Lastly, some major programmes within EHS, or more generally within the Group, are vectors for progress in the areas of safety or the environment for all entities. They are therefore the subject of detailed improvement plans, the effectiveness of which is evaluated during the audits.

LIFE (Life-threatening Incidents or Fatality Events) programme

For all L’Oréal sites, it covers activities posing risks that, if not controlled, could result in serious injury or illness. The Group is prolonging the ambition of moving towards “zero accidents” by ensuring the sustainability of actions and defining the requirements in terms of preparing for emergencies following an incident. It is backed up by a three-year communication campaign relayed by managers to cover the 10 identified families of LIFE risks.

The L’Oréal for the Future programme

With the L’Oréal for the Future programme, L’Oréal is committed to improving the environmental footprint of its operated sites (production and distribution sites, administrative sites and research centres).

The main environmental objectives of the programme for operated sites are as follows:

  • climate: reaching “carbon neutral”(1) status for all sites by 2025, by improving energy efficiency and using 100% renewable energy;
  • water: in 2030, 100% of the water used in our industrial processes will be recycled and reused in a loop;
  • biodiversity: by 2030, all of our operated buildings and industrial sites will have a positive impact on biodiversity compared to 2019; and
  • natural resources: by 2030, 100% of the waste generated in our operated sites will be reused or recycled. L’Oréal is also committed to no longer send waste to landfills.

The Group is committed to an ISO certification process in order to permanently anchor EHS performance on its production sites:

  • since 2003, L’Oréal has committed to ISO 14001 “Environmental Management” certification in all of its factories;
  • in 2015, the Group launched an ISO 50001 “Energy Management” certification programme with the goal of certifying all its factories in accordance with a clearly defined roadmap. Other sites (distribution centres, administrative sites and research centres) have also launched this process; and
  • since 2007, L’Oréal has committed to OHSAS 18001 certification, and then ISO 45001 “Occupational Health and Safety Management” certification in all of its factories.
2022 Certifications ISO 14001 ISO 50001 ISO 45001
  Number of sites % Number of sites % Number of sites %
Factories 35 92 27 71 34 89

An internal communication system exists to inform each site when accidents, near misses or significant incidents occur. Specific communication is circulated worldwide to raise awareness of the facts and lessons to be learnt, the existing rules and the new requirements to be applied. Finally, each site is provided with an historical record which covers the nature and root causes of EHS incidents/accidents that have occurred in all sites.

A process of integrating new sites

The Group regularly acquires new sites. A formal integration process ensures that these sites(2) are provided with extra support and assistance in order for them become compliant with all EHS requirements defined, and to bring potential risks under control.

The purpose of this process is to enable these sites to rapidly achieve the performance level expected by the Group. It comprises:

  1. a regulatory compliance audit carried out by an independent third party within six months of the acquisition;
  2. deployment of the EHS processes described above (EHS manual, EHS reporting, training, audit programme); and
  3. monitoring of the integration within the Group.

(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) Excluding stores.