2022 Universal Registration Document

In 1995, L’Oréal opened its first environmental research laboratory to evaluate and reduce the environmental footprint of its formulas. Through this initiative, the Group has developed expertise with regard to the potential impacts of its cosmetic products on aquatic environments. Right from the design stage, raw materials used in the formulation of products are evaluated as part of a strict ingredient selection process. Since 2005, L’Oréal has abstained from registering new raw materials with an adverse environmental profile (see section 4.3.1.3.1 B and C).

Packaging represents a significant part of the environmental impact of cosmetic products. Reducing the environmental footprint of packaging is therefore naturally part of the commitments under the L’Oréal for the Future programme ⁽¹⁾. In 2007, L’Oréal launched a Packaging and Environment Policy that incorporates respect for consumers, the environment and biodiversity. 

The new programme highlights three major challenges to improving the environmental profile of packaging: resource optimisation, the choice of materials and circularity after product use (see section 4.3.1.3.1. C).

Measuring the environmental impact of products

For several years, L’Oréal has carried out Lice Cycle Analysis of the life cycles of its products in order to identify, evaluate and improve their environmental impact.

Since 2017, SPOT ⁽²⁾, based on a rigorous scientific methodology for assessing environmental impacts, has been rolled out to all Group brands (except recent acquisitions). This tool calculates the environmental and social footprints of a product in accordance with the European Commission recommendation(3). SPOT is an important part of L'Oreal's product launch processes, putting sustainable innovation at the very heart of product development.

1. SPOT precisely measures environmental impacts by integrating 14 impact factors used by the European product environmental footprint framework.
2. These different impacts are standardised on the basis of the average impacts of a worldwide consumer.
3. To obtain a single value for the product environmental footprint (formula and packaging), these impacts are aggregated using a method based on the planetary boundaries ⁽⁴⁾.
4. Lastly, the footprint is compared to a benchmark in order to obtain a dimensionless score between 0 and 10, which allows the product design teams to measure their progress.

SPOT also includes a methodology for measuring the social impact of products. It was jointly developed with internal expertise (formula, packaging, factory, stakeholders) and eleven international experts in environmental and social lifecycle analyses ⁽⁵⁾.

B/ Reducing the environmental footprint of formulas

All products manufactured by the Group are analysed, from shampoos and haircare products to hair dyes and perfumes. This analysis enables products with the same consumer benefit to be classified according to their environmental footprint.

150 product categories that provide a consumer benefit were defined and over 40,000 formulas were screened. Then, the performance of each category was established to allow for the eco-design of products using SPOT. The aim is to ensure that new formulas are developed with the goal of obtaining an improved environmental profile while maintaining the same benefits for the consumer.