In 2018, to take its commitment further, L’Oréal initiated a collaboration with ZSL (Zoological Society of London) and Transitions. The goal was to develop a tool to evaluate refineries and crushers (which extract the oil from the kernels)on the basis of their reporting, policies and procedures. The indicators used in this evaluation were aligned with the requirements of the Group’s standards in respect of deforestation. This tool has been available and public since2019. At mill level, the L’Oréal Group has used Global Forest Watch’s risk assessment tool since 2016 to ensure that no derivative traced to mills is linked to deforestation. In 2018,the procedure for dealing with cases of non‑compliance with the “Zero Deforestation” commitment by direct or indirect suppliers was also published. Since November 2019, in order to contribute to the sector transformation, L’Oréal has been a founding member of Action for Sustainable Derivatives(ASD), an initiative coordinated by BSR and Transitions. The Group actively contributes to ASD, in particular by sharing all its methodologies and tools developed since 2014.
Indonesia is the main country from which L’Oréal obtains supplies of palm oil derivatives, accounting for 72.8% of the Group’s purchase volumes. Sumatra, and more specifically North Sumatra, is an area that is particularly vulnerable to climate change. For decades, millions of independent smallholder farmers in emerging countries have relied on palm oil to make a living. Today, they are still mainly excluded from the necessary industry transition to sustainability but are facing numerous challenges:competition with large plantations, declining productivity and a lack of financial means to replace their ageing trees.
In keeping with its “learning-by-doing” approach as part of a coalition of international and local stakeholders, theL3F has launched an unprecedented project to help2,500 smallholder farmers in Sumatra to successfully make this transition. The project aims to build a transparent,deforestation-free supply chain. To achieve this, the project adopts an approach that uses agroforestry models adapted to local conditions and regenerative agriculture practices, with a focus on preserving biodiversity in the plots.
Since 2021, L’Oréal has supported this project(1), which will help to regenerate 8,000 hectares of degraded farmland and to restore an additional 3,500 hectares of local biodiversity in addition to the plots in surrounding productive and protected forests. Project partners Mars and Danone source their palm oil from the pulp of the fruit, while L’Oréal is committed to sourcing palm kernel oil extracted from the kernel of the fruit, a by-product supplied by the smallholders from the project area.
Palm oil monoculture is currently the dominant agroecosystem in almost all villages (95%). The main objective is to train smallholders in better practices that enable the sustainable management of palm plantations and in regenerative agriculture for the purpose of ecological intensification. These farmers are also supported and trained in income diversification through intercropping as well as in agroforestry, organic fertiliser production, and integrated pest and disease management in order to reduce the use of synthetic phytosanitary products and to encourage soil rehabilitation and the gradual replanting of trees.
The demonstration plots established by Livelihoods and local partners for teaching regenerative agriculture and agroforestry practices aim to extend to a total area of46 hectares, covering 13 villages.
Soy: In 2022, L’Oréal consumed 309 tonnes of soybean extract and 2,098 tonnes of soybean extract derivatives. In 2022, 100% of the soybean extract originating from Latin America used by L’Oréal was from certified sources (IP – Identity Preserved Proterra) or, for the most part, from a land project certified RTRS, Bio and Fair For Life. This project aims to support 36 small soybean producers in Brazil and Paraguay. Derivatives mainly come from areas classed without risk of deforestation.
Paper/cardboard: Regarding materials used by L’Oréal for its packaging, the paper used for product leaflets and the cardboard used for boxes are certified as coming from sustainably managed forests (FSC or PEFC certified) (see the section entitled “Materials vigilance and preservation of resources”).
The environmental policy for packaging is based on three drivers (the 3Rs): Reduce, Replace, Recycle.
| Reduce | designing filling levels, packing components and finished goods that are smaller and lighter in relation to the contents, thereby consuming fewer resources; |
|---|---|
| Replace | substituting high-impact materials with alternative materials with lower environmental footprints, such as recycled materials and materials from natural and renewable sources; and |
| Recycle | making sure that the packaging can contribute to circularity by being recycled. |
(1) In partnership with Mars Incorporated and Danone (long-standing partners and investors in L3F) as well as the common supplier Musim Mas and the non-profit organisation SNV Netherlands Development Organisation, which is in charge of working with the farmers to implement the project.
