At the end of 2022, the suppliers meeting this commitment represented 83% of the Group’s strategic suppliers. The average score of these suppliers is “B”, the highest score since the start of the programme.
L’Oréal continues to be recognised by the CDP as one of the companies most committed to reducing greenhouse gas emissions. The majority of the Group’s suppliers who are partners of the CDP testifies to this fact. This engagement can be attributed to the strong commitment of L’Oréal’s Purchasing and Environmental teams. They send participating suppliers their results with comments and opportunities for improvement.
In 2022, the teams worked with the CDP to support the suppliers and undertook the following actions:
The CDP Supply Chain assessment is at the heart of the discussions during annual strategic meetings, but also throughout the year, in the context of our interactions with suppliers.
As part of the L’Oréal for the Future programme, the Group is committed to supporting its strategic suppliers in reducing their greenhouse gas emissions by 50% between 2016 and 2030 (Scopes 1 and 2). The Group has defined a methodology, applied from 2022, to engage suppliers based on their emissions contributions and to manage their emissions performance with them(1). For each supplier, an emissions reduction plan is established according to commitments made (for example, alignment with the +1.5°C trajectory as part of the Science-Based Targets initiative). In co-operation with the suppliers in question, an action plan will be drawn up and monitored, utilising the decarbonisation drivers that are suited to their business, their circumstances and their maturity.
L’Oréal is working towards Zero Deforestation (palm and derivatives, soy, paper and cardboard). In this regard, L’Oréal has participated in CDP Forest since 2012.
Since 2018, L’Oréal has encouraged its 148 main suppliers of paper, palm oil and soy to participate in the CDP supply chain via its CDP Forest programme dedicated to the supply chain. At the end of 2022, 117 of the selected suppliers had participated in the programme’s third year. Suppliers that created reports and implemented a Zero Deforestation policy and related initiatives represented 53%of expenditure in respect of all selected suppliers. Their average score was B.
As part of the L’Oréal for the Future programme, the Group is committed to supporting its strategic suppliers in managing their water sustainably. This support is based on a twofold approach: it must be ensured that each supplier has a sustainable water management plan. It must also be ensured that the supplier takes into account, in terms of its industrial water consumption and wastewater treatment, the condition of the drainage basin in which it operates.
As part of its sustainability programme, L’Oréal joined the Water Disclosure Project as soon as it was launched in 2013.
2022 marked the ninth edition of the Water Disclosure Project Supply Chain. As such, L’Oréal selected 240 suppliers based on three criteria:
198 of them agreed to take part in the programme and received an individual summary report with comments from the Group’s environmental experts. This will enable them to identify their key points for progress. L’Oréal encourages its suppliers to measure, report and set water consumption reduction targets for each production site by deploying a water-related risk assessment and management system.
At the end of 2022, suppliers fulfilling this commitment represented 67% of the expenses incurred on all selected suppliers. Their average score was B.
The objectives of L’Oréal for the Future express the conviction that reducing the environmental footprint of products has to be accompanied by an improvement in their social and societal benefit.
Thanks to its many industrial and administrative sites all over the world, L’Oréal is strongly involved in the life of the. As a company committed to demonstrating strong corporate citizenship, L’Oréal builds good relations with the local communities and strives to share its growth with them.
(1) This emissions management is based on the volume of emissions reported in the CDP questionnaires for those taking part in the programme or on available and verified data.
