2022 Universal Registration Document

Chapter 4 : Social, environmental and societal responsibility

Wastewater quality index

(grams of COD per finished product)

This diagram shows the wastewater quality index.

From 2005 to 2022: - 80%

From 2019 to 2022: - 44%

(grams of COD per finished product)

 

As part of L’Oréal for the Future, the Group has established an internal standard for the quality of industrial wastewater at the exit of the sites: by 2030, 100% of the wastewater at the exit of factories must not exceed a COD of 1,000 mg COD/l. If local regulations impose a lower threshold, the site must comply with the lower value. At year-end 2022, 24 factories were in compliance with this internal standard☑, representing 63% of the Group’s factories.

Scope: production sites 2021 2022
Accidental spills (number of instances)

Accidental spills

(number of instances)
2021

0

Accidental spills

(number of instances)
2022

0

Wastewater at the exit of the site (m3)

Wastewater at the exit of the site

(m3)
2021

911,208

Wastewater at the exit of the site

(m3)
2022

1,020,362 ☑

COD at the exit of the site (in tonnes)

COD at the exit of the site

(in tonnes)
2021

2,022

COD at the exit of the site

(in tonnes)
2022

2,218 ☑

The Group’s air emissions, excluding greenhouse gases

In addition to greenhouse gases, L’Oréal works continually to control its atmospheric emissions. Every month, the Group’s sites collect data in order to calculate the quantity of SO2 emitted into the atmosphere. In addition, each factory updates the mapping and inventory of volatile organic compounds (VOCs) emitted during its operations annually. The operation and maintenance of atmospheric emission collection and treatment facilities are subject to specific procedures and instructions.

The quantity of VOCs emitted by the Group’s factories in 2021 totalled 156 tonnes.

The quantity of SO2 emitted by all the sites operated by the Group totalled 0.3 tonnes in 2021 and 0.1 tonnes in 2022, representing a reduction of 53%.

Noise pollution

L’Oréal’s industrial activities are not particularly noisy. The sites comply with the noise standards to which they are subject. Internal environmental reporting is one way in which to ensure monthly readings of any non-conformity on this issue.

Provisions for environmental risks

The amount of the provisions for environmental risks is not material (see note 13.1 of the Consolidated Financial Statements).

4.3.1.1.3. Fighting climate change on operated sites

L’Oréal has set itself a major objective of fighting climate change in the overall exercise of its activity. Every effort is being made to achieve this objective, especially at the sites where its activities are performed.

A/ Reducing greenhouse gas emissions

Compared to other industries, the cosmetics industry has lower energy consumptions and lower CO2 emissions. There are no carbon pricing mechanisms (taxes and emissions trading systems) provided for by supranational, national or regional regulations that apply to L'Oréal at the end of 2022. This includes all industrial and administrative sites, as well as research centres. However, L’Oréal has been committed to the efforts to fight climate change for many years and applies a proactive policy for the reduction of its CO2 emissions.

Aligning greenhouse gas emissions with the GHG Protocol

The Group calculates and monitors the greenhouse gas (GHG) emissions linked to all its activities in accordance with the GHG Protocol. These emissions are defined as follows:

  • Scope 1 emissions: direct GHG emissions linked to the consumption of gas and fuel oil at all sites operated by the Group: factories, distribution centres, administrative sites and research centres. This includes GHG emissions associated with potential cooling gas leaks;
  • Scope 2 emissions: indirect GHG emissions linked to electricity, heating, cooling and steam purchased at all sites operated by the Group: factories, distribution centres, administrative sites and research centres; and
  • Scope 3 emissions: other indirect GHG emissions linked in particular to the product supply chain (upstream emissions) and the use of products and services during their life cycle(1) (downstream emissions).

Under the L’Oréal for the Future programme, the Group aims to reduce the CO2 emissions of its operated sites (Scopes 1 and 2) by 100% by the year 2025.

With a view to limiting its impact on climate change and achieving this target, L’Oréal has implemented a strategy based on three pillars:

  • Reducing its energy needs by implementing energy sobriety approaches and by improving the energy efficiency of its facilities (buildings, equipment, industrial processes, etc.);
  • Increasing the use of local renewable energy wherever possible;
  • Achieving the targets defined for the sites without recourse to carbon offsetting.

The Statutory Auditors have expressed reasonable assurance about this indicator.

(1) See section 4.3.1.4.1. GHG assessment: an annual exercise, Scope 3 – emissions estimated annually.