2022 Universal Registration Document

Chapter 4 : Social, environmental and societal responsibility

Data: calculation of this indicator relies solely on the dry material, excluding the “water” used in certain formulations. There are three elements that are calculated independently. The “biobased” portion represents the percentage of raw materials of renewable origin in L’Oréal’s portfolio according to the definition of ISO 16128. The “abundant mineral” portion refers to the percentage of ingredients of mineral origin, the abundance of which allows sustainable use and the in organic ingredients, i.e. non-mineral and not containing any carbon atoms (e.g. oxygenated water), obtained by green processes. The definition of abundant minerals has been established by the Raw Materials Department (DIMP) with the assistance of an expert consultant from the French Bureau of Geological and Mining Research (Bureau de recherches géologiques et minières – BRGM). An initial list was available at the start of 2022 that covers 40% in volume of the minerals used by the Group, i.e. 463 raw materials identified. This list is subject to change and will be updated over the coming years. Finally, the “circular process” portion is still being established by the Raw Materials Department (DIMP) with the assistance of experts and will be made available soon.

Resources – Data on packaging indicators

Scope of consolidation: the packaging data cover all the finished products leaving the factories, with the exception of certain finished products for which the data are not yet linked to the central information systems. This is the case for the products from the factories in Migdal, Nairobi, Funza or Salzhelmmendorf, for certain subcontracted products from recent acquisitions, and packaging specific to Travel Retail. These packaging data exclude POS/PLV materials.

Indicators
1. Percentage of created or renovated products with a better environmental profile due to improved packaging

Each year, SPOT calculates the proportion of new or updated products whose environmental profile has been improved. For a new product, improvement is measured in relation to an average of the brand’s existing and comparable products. For an updated product, improvement is measured and compared to the previous version of the product.

2. Percentage of certified paper and cardboard

The data on the percentage of FSC-certified paper and cardboard (sourced from wood derivatives) comes from tracking the supplies of all suppliers. The Group’s sourcing entities demand that each of their suppliers complete the information on tonnage and provide the related certifications. The data are aggregated by the central sourcing department.

3. Reduction in intensity of the quantity of packaging used for the Group’s products

The reduction in packaging intensity is measured in packaging weight divided by the weight of the formula. The unit is g/g. The scope is all the packaging leaving a factory (primary, secondary or tertiary). The reduction in intensity is calculated from specification systems for filling, packing and production articles. The data are aggregated at global level by the data management teams.

4. Percentage of plastic packaging recycled or from biobased sources

The tonnages of plastic materials recycled or from bio-based sources used in the products come from specification systems for the filling and packaging components and the production of finished products. The data are aggregated at global level by the data management teams. The portion of recycled plastic is an actual rate of recycled material in the packaging:it does not come from a mass balance certification system.

The scope of this indicator is all the plastic from all our primary, secondary and tertiary packaging leaving the factory.

5. Percentage of plastic packaging that is refillable, reusable, recyclable or compostable

The definitions of refillable, reusable, recyclable or compostable packaging follow the definitions of the Ellen Mc Arthur Foundation described in the document “New Plastics Economy Global Commitment – Reporting Guidelines April 2022”. These definitions are taken account of in the Group’s data management systems, which allow the respective quantities to be identified and counted. The scope of this indicator is all primary and secondary plastic packaging, i.e. any packaging containing more than 50% plastic by weight. Recyclability is assessed on the basis of impediments to recycling, linked to the materials and decorations used, and can change annually inline with changes to regulations.

Data: the different indicators or figures come from product specification systems linked to the production management tools. The data are extracted and recovered by the Data Management teams who aggregate them globally using a centralised IT tool. The Sustainability entity of the Department of Packaging and Development verifies all the elements and the figures.

Eco-designed advertising displays at points of sale

Scope of consolidation: the scope of consolidation covers POS purchasing expenses, such as displays or advertising elements at the points of sale, in the countries in which a L’Oréal subsidiary that has a Sourcing team is established. Every year the Sourcing teams in question report the POS expenses and the percentage of compliance with eco-design “Must Haves”.

Data: Country data are collected using the Intranet system dedicated to reporting by country, which can be accessed by each Sourcing team. Each team is responsible for compiling the data for their Country, and must validate the accuracy of the data communicated. The data are also validated by the Sourcing Zones. The indicator is consolidated at the Group level by the Global Retail Sourcing teams. In 2022, 53 Countries or Hubs participated in the reporting. The Sourcing teams and suppliers concerned are trained in eco-design, including the associated data collection process. The process is defined and explained every year to the teams responsible. The percentage of eco-designed POS is calculated in accordance with a self-declared statement from the suppliers trained in eco-design.

Eco-design of owned stores and points of sale

Scope of consolidation: the scope includes the Group’s new and renovated free-standing stores over a global scope. The period considered is from 1 January to 31 December.

A store is considered ecodesigned if the ecodesign rate exceeds 100% or if the store is LEED Gold certified. The ecodesign rate of the free-standing stores is calculated on the basis of the process tracking and the documentation of the Sustainable Retail Box checklist and according to a self-declaration of compliance of the points of sale, unless the store holds an external LEED certification.

Data: at the time the data is compiled, each Country team is responsible for verifying the accuracy of all data communicated to the teams of each of the Zones. The teams monitoring the process and the documentation of the Sustainable Retail Box checklist are trained in ecodesign. A process of continuous improvement of these systems has been put in place.