4.3.1.2.3. Reducing the environmental impact associated with transporting L’Oréal products
L’Oréal has a long-standing commitment to reducing the greenhouse gas (GHG) emissions generated by the transportation of its products. The Sharing Beauty With Allprogramme initiated the reduction of GHG emissions by 24%per unit sold per kilometre between 2011 and 2020.
As part of its new commitments, L’Oréal is going further and has set itself a target of reducing GHG emissions by 50% per finished product by 2030. The scope of consolidation covers the transportation flows of finished products from the production sites to the first customer delivery point. The commitments have been shared with the entire internal and external ecosystem. As such, sustainable transportation was ranked as a priority and one of the major strategic components of the Group’s sustainability transformation.
L’Oréal’s sustainable transport strategy is based on five pillars. It focuses in particular on the two greatest contributors to GHG emissions associated with product transportation: air and road transport.
The five pillars of the sustainable transport strategy:
This diagram shows the 5 pillars of the sustainable transport strategy, which are:
- Air transport
- Long Distance Road Transport
- Short Distance Road Transport
- Performance management
- Ecosystem of partners
1. Limit air travel and provide for specific monitoring
The reduction of air transport is one of the pillars of the distribution strategy. As such, it is included in the Divisions’budget targets and is integrated into our purchasing strategies; for example, by favouring local production.
In 2022, the Group transported 0.2% of its products by weight by air, representing 42.7% of its transportation-related carbon footprint. As a result, the total carbon footprint of air transport in 2022 was reduced by 13% compared to 2021.
These results reflect a continuous decrease for three consecutive years.
This has been made possible by the exemplary work of our subsidiary Travel Retail APAC, for example. Through increased collaboration with its customers, it has been able to implement alternative solutions to air transport, such as multimodal transport (road-sea). These have reduced its CO2 emissions related to air transport by 52%.
2. The Greener Lanes programme dedicated to long-distance road transport
This programme implements solutions that will reduce CO2emissions on long-distance road flows with the highest emissions. In 2022, transportation of finished products by road represented 47.6% of the Group’s GHG emissions.
To cut these emissions, new solutions are being rolled out gradually for all flows between the Group’s factories, distribution centres and customers:
- the use of multimodal transport, for example river or rail freight, rather than road; and
- the utilisation of energy with a lower environmental impact, such as biogas or biofuel vehicles, to replace diesel.
The Group has therefore identified priority transport lines that require a change to an alternative method of transport, one of the main ways to reduce GHG emissions.
These priority lines have been identified according to several factors, including: the distance travelled, the weight of the finished products transported, and their contribution to the CO2 emissions related to road transport.
By way of example, this year, Europe launched a major call for tenders for its inbound flows, i.e. between its factories and its local distribution centres in eurozone countries. Its objective was to select partners offering solutions that reduce the carbon footprint of these flows. Following this call for tenders,54% of the transport lines in the scope under consideration will transition to an alternative solution to diesel (rail, sea, biogas and biofuel). Operational start-up is expected between the fourth quarter of 2022 and the first quarter of 2023.
3. The GLAM (Green Last Mile) programme designed to implement solutions that will reduce CO2 emissions from urban transport
The Group is also specifically addressing the environmental impact of urban transport. It aims to deploy lower‑impact solutions, such as electric vehicles, cargo bikes or natural gas vehicles.
For example, the Latin America Zone has established initiatives with electric vehicles in Uruguay and Brazil. The GLAM programme, supported by the Group’s main small parcel carriers, has also increased the number of green deliveries in France (18%), the UK (11%) and Spain (12%). The Nordic countries have also implemented a biogas solution for 9%of the volumes sent to their customers, resulting in a 7.9% reduction in CO2.
4. Performance management, an important aspect of the Group’s strategy
For several years, the Group has committed to a sustainable decarbonisation policy and applied robust action plans that are specific to each country.
Digitalisation, a strategic driver, facilitates access to data. Indeed, by analysing the precise data associated with the upstream and downstream transport from the distribution centres of the Group’s subsidiaries, the sourcing and transport teams are able to prioritise their actions according to their impact.
This regular monitoring of action plans and performance for the different modes of transport used is crucial. It provides the Group’s stakeholders with the visibility they need to implement the Group’s carbon footprint reduction strategy.
The Transport Management Systems (TMS), which are operational in a number of countries, provide access to transport operational data for consolidating and analysing performance in a pertinent manner.
5. Working in partnership with the stakeholders in its ecosystem:a key driver of the Group’s carbon footprint reduction roadmap
The Group selects and assesses its suppliers and transportation partners based on their environmental and social policy. It also considers the actions they take to support the Group in its efforts to reduce its carbon footprint.