A long-standing commitment to responsible production (plants and distribution centres compared with 2005
This diagram shows a long-standing commitment to responsible production (plants and distribution centres compared with 2005)
2005 to 2022
Growth in production: +45%
Waste generation per finished product unit: -40%
Water consumption per finished product unit: -54%
CO2 emissions in absolute terms: -91%
At the end of 2022, 60 owned plants and distribution centres (industrial sites), including 22 factories(1), are “carbon neutral”(2).
All sites in the North Asia Zone (continental China, Japan, South Korea, Hong Kong and Taiwan) and those in L’Oréal Brazil became “carbon neutral”(3) in 2022 (see section 4.3.1.1.3.).
At year-end 2022, there were five Waterloop factories (Burgosin Spain, Settimo in Italy, Vorsino in Russia, Libramont in Belgium and Yichang in China): all the water required by the utilities (equipment cleaning, steam production etc.) comes from reused water or water recycled in a closed loop on the site (see section 4.3.1.1.4.).
L’Oréal’s commitment for over 25 years to environmental leadership was recognised in 2016, 2017, 2018, 2019, 2020, 2021and 2022 with the best possible rating by the CDP(3): a triple“A”. L’Oréal is thus the only company in the world, out of more than 12,000 companies assessed, to receive a triple “A” ranking for the seventh consecutive year, for its commitment and results in the three key areas: the fight against climate change, sustainable water management and the fight against deforestation.
A responsible, omnichannel logistics strategy
The Group’s Supply Chain Department organises and optimises the delivery of every one of the over 6.5 billion L’Oréal products to all customers, as well as directly to consumers. It is responsible for making sure that the products are delivered under optimum conditions, at the right time and at the best cost. The Supply Chain Department and its distribution centres were particularly strategic and responsive in 2022 in order to support L’Oréal’s growth in an extremely volatile market.
L’Oréal’s unique features in a global market are its diverse range of distribution channels and its portfolio of many different beauty and cosmetic product categories. L’Oréal continuously optimises all information flows and physical flows from suppliers to customers.
Presence across all distribution channels
This diagram shows the presence across all distribution channels.
All distribution channels:
- Hair salons
- Local retailer in New Markets
- E-commerce
- Travel Retail
- Mass-Market Retail Channels
- Department stores perfumeries
- Pharmacies Drugstores Medispas
- Branded Retail
(1) Libramont in Belgium, Settimo in Italy, Burgos and Alcalá de Henares in Spain, Rambouillet, Ormes, Gauchy, Vichy, La Roche-Posay, Aulnay, Saint-Quentin, Lassigny and Caudry in France, Karlsruhe and Salzhemmendorf in Germany, Yichang and Suzhou in China, Gotemba in Japan, Funza in Colombia, Sao Paulo in Brazil, Florence in the USA, and Baddi in India. This factory has achieved “carbon-neutral” status, thanks to its use of 100% of renewable hydroelectric energy and an improvement in its energy efficiency.
(2) A site can claim “carbon neutral” status if it meets the following requirements:
- Direct CO2 (Scope 1) = 0, with the exception of: the gas used for catering, the fuel oil used for sprinkler tests, fossil energy consumptions during maintenance of on-site renewable facilities, cooling gas leaks if they are lower than 130 tonnes CO2eq./year; and
- Indirect CO2 Market Based (Scope 2) = 0. The renewable energy sources must be located on site or less than 500 kilometres from the site, and be connected to the same distribution network. The “carbon neutral” status, as defined above, is achieved without carbon offsetting. See section 4.3.1.1.3. B/.
(3) The CDP is an independent NGO which offers a global system for the measurement and publication of environmental information and which assesses the strategy, close involvement and results obtained by companies in the fight against climate change, sustainable water management and forest protection.