In 2022, the volume of the raw materials used by L’Oréal coming from green chemistry (1) was 28%. This represents 665 (2) raw materials. During the same year, 82% of the newly registered raw materials were renewable. Furthermore, 13 new raw materials based on green chemistry principles were registered, representing 24% of the total.
The Group considers biodiversity to be a key source of innovation. Plans to increase the use of raw materials from renewable sources must ensure that the ecosystems and the availability of these resources for other purposes are not adversely affected. The Group is committed to a sustainable and responsible supply chain (see section 4.3.1.2.2.).
In 2022, 61% of our ingredients in formulas were from biobased sources, derived from abundant minerals or from circular processes.
As part of its target for 2030, the Group is working with specialised external partners such as BRGM to define a robust scientific methodology aimed at classifying the minerals used and ensuring that they are from abundant sources.
Respect for biodiversity and societal contribution
In 2018, as part of the Act4nature initiative, L’Oréal set a goal of having 100% of its bio-based raw materials coming from sustainable sources by 2030. To be included in this category, raw materials must meet various requirements in terms of traceability, respect for Human Rights and compliance with the Nagoya Protocol.
Traceability of raw materials from sustainable sources
Traceability means that the raw materials have an identified botanic and geographic origin.
Furthermore, the traceability campaigns with the Group’s suppliers have made it possible to trace 100% of plant-based ingredients to their country of production, or even as far as the biomass production site. In 2022, the portfolio of bio-based raw materials comprised 1,704 (3) raw materials from 328 botanical species cultivated in more than 100 countries.
Respect for Human Rights throughout the entire production chain
Respect for Human Rights in accordance with ILO principles is now expected throughout the entire production chain of these raw materials. In 2022, 100% of bio-based raw materials used by the Group were reassessed, in particular based on criteria such as respect for biodiversity and forced labour(see SCAN Index below).
Compliance with the principles of the Nagoya Protocol
Plants are sourced in a way that promotes the economic development of the producers and respect for traditional knowledge associated with biodiversity in accordance with the principles of the Nagoya Protocol.
Out of the 328 botanical species that are the source of the biosourced raw materials used by the Group, around 6%(4) present significant biodiversity challenges (endangered species, and impact of production on natural environments)depending on their geographic origin and the method of extraction or production used. They are the subject of specific action plans initiated with suppliers and, if necessary, benefit from the systematic support of independent external third parties, in order to manage the real impacts on the territories of origin of the ingredients.
The palm oil and its by-products segment is the subject of a specific “Zero Deforestation” approach (see below). At the end of 2022, 100% of supplies were covered by action plans with the suppliers concerned.
Other segments represent 22% of the portfolio of bio-base draw materials in volume and 86% in number. For these segments, L’Oréal has defined sustainable sourcing challenges indicators(5) in order to assess their sustainability.
These indicators are consolidated within the SCAN index(6), which enables priorities to be set in the sustainable sourcing action plans. The Group regularly updates the information collected. There are already improvement action plans in place with suppliers for 71% of the volumes (45% in number) of raw materials that have sustainable sourcing challenges according to the SCAN index. These action plans aim to ensure sustainable sourcing in order to achieve the goal of 100% of the Group’s bio-based raw materials coming from sustainable sources.
L’Oréal has also launched a support and training programme for more than 200 suppliers. They are now trained in sustainable sourcing of raw materials in order to guarantee the traceability of the raw materials delivered to L’Oréal and to ensure that the associated supply streams are secure.
Depending on the level of environmental and/or social risk identified on these streams, suppliers are notably asked to deploy the field audit procedure for producers. This procedure is based on 88 indicators defined by L’Oréal with the support of the Rainforest Alliance NGO and was reviewed in 2019 by EcoCert, The Biodiversity Consultancy and The Danish Institute for Human Rights.
(1) This means derived from renewable resources, transformed by an eco-friendly process and offering a favourable environmental profile.
(2) Determined according to production.
(3) Calculated on the basis of projected purchases between January and November 2022.
(4) Calculated on the basis of projected purchases between January and November 2022.
(5) Based on environmental, social and economic indicators from external databases (the UNDP’s IHDI, EPI from Yale University, and Verisk Maplecroft Country Index).
(6) Sustainable CAracterizatioN index.