2022 Universal Registration Document

Chapter 4 : Social, environmental and societal responsibility

To share its research and results with the cosmetics industry, in 2018 the L’Oréal Group created the SPICE (Sustainable Packaging Initiative for Cosmetics) initiative with Quantis (an environmental consulting firm). The purpose of SPICE is to share the best practices and methodologies of each cosmetics player in order to harmonise and enhance the methods used to assess the cosmetic packaging environmental footprint. L’Oréal shares its own SPOT Packaging methodology through the SPICE initiative. Tracking of work and achievements, as well as the plan for the coming months, are accessible on the open platform www.Open-Spice.com. The SPICE initiative now has more than 34 members worldwide. The dedicated SPICE tool was launched in July 2020.

To increase transparency towards consumers, L’Oréal has initiated the roll-out of the PIL (Product Impact Labelling) tool. This involves allocating a score on a scale from A to E for the environmental impact of products, which is made available on the websites of certain Group brands for eight formula categories (see section 4.3.1.3.2. B).

Since 2018, L’Oréal has been working with its teams and suppliers to implement a global programme to eco-design POS materials and furnishings, which is based on:

  • 14 robust and pragmatic golden rules;
  • training support for teams and suppliers;
  • monitoring indicators;
  • sharing best practices; and
  • inter-team events on sustainability, including suppliers.

The principles relate in particular to materials: recycled materials and those from biobased sources, their weight, recyclability or separability and the optimisation of electricity consumption (for permanent POS). L’Oréal is testing and developing circular economy processes with its suppliers and local operators, notably in the context of uninstalling, recycling or donations. L’Oréal continues to share its best practice, for example with the French Federation for Beauty Companies(Fédération des Entreprises de la Beauté – FEBEA).

In 2022, L’Oréal continued the roll-out of its Sustainable Retail Box programme. This action plan, aligned with the highest standards, sets out concrete actions for the design and responsible construction of free-standing stores(1). In 2022, all of the Group’s 52 new or renovated stores made a commitment to an eco-responsible process aligned with L’Oréal’s highest standards. 26(2) of them recorded an eco-design rate of over100% or are certified LEED Gold.

For our permanent POS materials, but also our Free-Standing stores, the Group uses design firms that are experts in lighting to optimise energy consumption without compromising the quality of in-store lighting. The pilot projects are promising, in particular for the reduction of environmental impacts. In 2022, the teams continued to roll out the operational guidelines launched in 2021 for new developments.

In 2022, 97 %  of advertising displays at points of sale were eco-designed and 50% of free-standing stores, whether new or refurbished, were designed and built in line with the Group’s principles of sustainable development.

Target 2025 100%

(1) Consolidated data based on a questionnaire filled out directly by the sales outlets/POS.

4.3.1.3.2. Involving consumers in the Group’s transformation
A/ Product quality and safety: a priority

L’Oréal develops and devises cosmetics that meet the needs of both consumers and professionals in terms of quality. As consumer safety is an absolute priority for L’Oréal, assessing the safety of these formulas and their ingredients is central to any new product development process. It is also a prerequisite for any new product being brought to the market. As a result, consumers across the globe have access to cosmetics of identical quality, with proven safety records.

L’Oréal factories worldwide manufacture cosmetics that comply with ISO international standards. Almost all factories are ISO 9001 certified and implement the requirements of ISO 22716 on Good Manufacturing Practices for cosmetics. This standard sets out the requirements for the production, filling and packing, control, storage and shipment in order for a cosmetic product to comply with the defined quality.

100% of the Group’s products undergo a rigorous safety assessment. A safety report is then prepared.

The Worldwide Human and Environmental Safety Evaluation Department specifically evaluates the safety of raw materials and finished products. It establishes the toxicological profile of the ingredients used and the formulas before they are launched on the market. It draws on data from a wide range of sources: literature, in silico experiments, in vitro tests on cellular models and clinical trials evaluating tolerance in humans. These same safety standards are applied every whereto protect the health of consumers from across the globe. Once the finished product is launched on the market, potential adverse effects are monitored to ensure the safety of the product over its lifetime.

L’Oréal goes one step further in safety assessments by monitoring the potential adverse effects that may arise once the product is on the market. The Group carries out this task with its international cosmeto-vigilance network, which collects, validates and analyses, using recognised and rigorous methods, the adverse effects related to the use of a cosmetic product. This allows for appropriate corrective measures to betaken where necessary.

(1) Materials, energy, accessibility, water management, construction waste, interior air quality, ergonomics, etc.

(2) Consolidated data based on a questionnaire filled out directly by the sales outlets.