Data: environmental data are collected using the dedicated Intranet-based site reporting system, available in all countries in which there is a L’Oréal subsidiary. The required data are reported every month by the local managers. When the data are compiled, each Site or Zone must validate the accuracy of all the data provided. A process of continuous improvement of these systems has been put in place and they are reviewed each year by the Statutory Auditors. They are modified taking into account their recommendations and monitoring objectives for subsequent years, such as updating the indicators to be monitored, improving their definition and the communication, monitoring and control processes. In rare cases, certain data already published for the preceding year may be modified when inaccuracies or errors are discovered after the end of the financial year. These data are monitored and included in the annual consistency review. They are included in the reported figures each year.
Reduction of greenhouse gas emissions from the transport of finished products: the scope considered includes the transportation of the Group’s finished and promotional products from its production sites to the first point of delivery to the customer. Deliveries made directly to consumers are excluded. The period considered is 12 months, between1 November of year n-1 and 31 October of year n. The calculation methodology employed uses greenhouse gas emissions factors, in grams of CO2 equivalent per tonne of merchandise transported and per km travelled. These factors depend on the mode of transport and the type of energy used. These were updated in 2021 by Quantis in light of current technological knowledge.
Respecting biodiversity with traceable, bio-based ingredients from sustainable sources: the calculation of the percentage of bio-based ingredients for traced formulas from a sustainable source is based on the following definitions: a raw material is considered to be bio-based when more than 50% of the carbons it contains are of plant origin (according to ISO 16128);an ingredient is considered traced when the following three pieces of information are available: the botanical species, the country in which it grows or is collected, the growing or collection method; an ingredient is considered to be sustainably sourced when, on the basis of the elements of traceability, it has been analysed for environmental and social risk (SCAN Index). If no risk has been identified, the raw material is considered to be sustainably sourced. If risks have been identified, an adapted action plan must have been put in place with this supplier. This action plan must have been verified by an independent third party. Such verification may take the form of an audit, certification, or a field project put in place with the support of an NGO. This method ensures compliance with the basic and progressive criteria of the sustainable sourcing policy for the Group’s raw materials.
The calculation of this indicator is based on actual purchases for the period from January to November 2022, excluding volumes of ingredients used for fragrance compositions (<1%), subcontracting volumes (0.8%) as well as volumes from factories (India, Argentina and Kenya) not linked to the IDG management system (3.3%).
Reduction of the water consumption related to the use of the products: the scope of consolidation refers to the data on the products sold over a period of 12 months from 1 January to 31 December of 2022.
The calculation of this indicator is based on the average water volume necessary per usage dose for the use of the Group’s products by consumers. These data are provided by the IDG management software, which is used for the economic results. It includes all global sales of finished products, both rinse-off and leave-in. The only exception is samples, which are not products sold and are therefore not taken into account.
Eco-designed products – SPOT: eco-designed products are new or updated products that have an improved environmental or social profile. The indicator covers the Group’s scope and concerns new products or products updated by design centres that were manufactured by the Group’s factories or by subcontractors. They had an availability date at the distribution centre that was scheduled for between 1 January and 31 December 2022. The analysis covers all the Group’s brands, excluding: products not sold(i.e. samples, testers, gifts, products made at the point of sale, temporary activations, promotional products and additional packaging relating to “travel retail”), newly acquired brands that are not yet fully integrated into the Group’s product design ecosystem (Mugler, Logocos, Thayers, Takami, Youth to the people, 3CE and Skin better science).
The indicator covers products with formulas/packaging that have been developed and produced for the first time, products with formulas/packaging that were updated in 2022 (i.e. underwent a major change in packaging or formula requiring a change in the commercial code) or products that have been improved in terms of the social dimension
Ingredients in formulas are from bio-based sources, abundant materials or from circular processes
Scope of consolidation: the scope of consolidation corresponds to the twelve months of the year. It covers the cosmetic products manufactured in the L’Oréal factories and the finished products purchased from subcontractors.
The scope covers only the L’Oréal factories operating under the SAP WISE system, which permits the feedback of information via the IDG information system. To date, there are only four Group factories that are outside the scope: the factories in Pune and Badi in India, the Magdal factory in Israel and the Nairobi factory in Kenya.
The indicator: the reporting covers 99.4% of production from L’Oréal factories. This indicator is evaluated for all the Group’s active formulas and is calculated on the basis of the data on production volume. The data are processed, including consistency checks and corrections of anomalies if necessary.
