The packaging of a product is the first identifying link between a brand and its consumers. Thanks to science, experience and performance, packaging is a key differentiating factor for the product and therefore of its perceived value creation for the consumer. The L’Oréal teams, distributed over five Packaging Hubs around the world, specialise in design, consumer experience, innovation and product development. They rely on the expertise of laboratories dedicated to materials and packaging to create cutting-edge innovations worldwide. L’Oréal filed 50 patents for packaging in 2022.
Since 2007, L’Oréal has adopted an eco-design process for its packaging. This process comprises three steps: Reduce the intensity of packaging and thus use fewer resources; Replace impactful materials with materials that have a better environmental footprint (renewable, post-consumer recycled);Recycle by creating packaging that contributes to the circular economy.
At the end of 2022, 97% of the Group’s products have an improved environmental or social profile(1). By 2030, 100% of the plastic used in the packaging of L’Oréal products will be either recycled or bio-sourced and L’Oréal will reduce the volume of packaging used for its products by 20% compared to 2019. In 2022, 78.1% of the PET plastic used came from recycled sources.
Pursuing its strategy to participate in the circular economy, in 2022 L’Oréal signed a partnership with US chemicals company Eastman for a multi-year contract for the supply of plastic produced from the molecular recycling of polyester waste.
To accompany the Group’s growth, Purchasing Department selects the most economically, environmentally and socially effective suppliers in accordance with the L’Oréal Buy & Care responsible purchasing policy. Supplier performance is monitored thanks to precise indicators relating to social, environmental and ethical criteria and through their ability to innovate and to meet the Group’s requirements in terms of quality, agility, service and competitiveness.
L’Oréal builds solid relationships with its suppliers to ensure its procurement is responsible and to guarantee the flexibility, reliability and traceability of its supply streams. In a climate of tension and volatility, these long-term supplier relationships play a key role in the Group’s ability to secure the volume and price of its raw materials supplies. In 2022, the Group conducted 1,145 social audits, a total of more than 16,000since 2006.
From 2010, L’Oréal chose to engage with suppliers that have an inclusive solidarity model in order to provide access to employment for people from economically or socially disadvantaged communities, such as people with a disability, the long-term unemployed or fair-trade suppliers(see section 4.3.3.6.). At the end of 2022, 85,544 people had been able to access employment via L’Oréal’s Solidarity Sourcing programme.
L’Oréal has 38 high-tech factories around the world, located close to its consumer markets. This network of plants is constantly evolving to accommodate the growth of the Group, incorporate acquisitions, embrace external innovations and adapt to rapid changes in the beauty market. It is supported by a network of subcontracting partners to deal with cyclical peaks in demand.
The Group’s manufacturing organisation is also based on specialisation by technology(2) to maximise best practices, increase agility, improve productivity and to optimise investments. As such, the Aulnay-sous-Bois factory in the Paris region, which celebrated its 30th year of operation in 2022,has adapted to manufacture perfumes for the Luxe Division, in response to a growth in demand. This site is a prime example of L’Oréal’s agility, its expertise in “French-style luxury” and the territorial connection of its manufacturing base. In 2022,the Operations Division also adjusted its skincare manufacturing capacity worldwide, with major projects in the United States, North Asia and Europe (France), in response to strong growth in this category.
(1) Basis of calculation representing 72% of all projects, excluding items considered to be irrelevant, such as ad hoc animation and promotion products and regulatory compliance leading to changes that are not visible to consumers.
(2) Haircare, skincare, makeup, perfumes, hygiene products, etc.
