2022 Universal Registration Document

Chapter 1 : Presentation of the Group – Integrated Report

L’Oréal for the Future: 2022 Results

The following table summarises the targets for the L’Oréal for the Future programme, as well as the extent to which they were achieved in 2022. Detailed information (policies, performance indicators, results etc.) is provided in chapter 4.

   2022 results     Targets

2022 results: 65% target:100%  results:58%

 Transforming our business
CLIMATE By 2025, all our sites will have achieved “carbon neutral”(1) status by improving energy efficiency and using 100% renewable energy. 2022 results: 65% target:100%  2021 results:58%
By 2030, we will innovate to enable our consumers to reduce their greenhouse gas emissions resulting from the use of our products by 25% compared to 2016, on average and per finished product (2) (3). 2022 results: -24% target:-25%  2021 results:-12%
By 2030, we will reduce by 50% on average and per finished product, the greenhouse gas emissions linked to the transport of our products, compared to 2016. 2022 results: +6.7% target:-50%  2021 results:+12%
By 2030, our strategic suppliers will reduce their direct emissions (scopes 1 and 2) by 50% in absolute terms compared to 2016. The methodology used to calculate this indicator was defined in 2021 and is being piloted in 2022, pending approval. It will be rolled out in 2023.
WATER By 2030, we will evaluate all formulas thanks to our environmental test platform, to guarantee they are respectful of all aquatic ecosystems, whether continental or coastal. The methodology used to calculate this indicator was defined in 2022 and will be subject to a pilot for approval in 2023, allowing for roll-out between 2025 and 2026.
By 2030, we will innovate to enable our consumers to reduce by 25%, on average and per finished product, the water consumption linked to the use of our products, compared to 2017(3) (4). 2022 results:+1% target:-25%  2021 results:+5%
By 2030, 100% of the water used in our industrial processes will be recycled and reused in a loop▲ (5) . 2022 results: 13% target:100%  2021 results:15%
By 2030, all our strategic suppliers will use water sustainably in the areas where they operate. The methodology used to calculate this indicator is currently being defined in collaboration with the CDP.
BIODIVERSITY By 2030, 100% of the biobased ingredients for formulas and packaging materials will be traceable and will come from sustainable sources, none of them will be linked to deforestation▲ (6). 2022 results: 92%(6) target:100% 2021  results:94%(6)
By 2030, the Group will hold flat the total land occupancy vital to the sourcing of our ingredients, compared to 2019. The methodology used to calculate this indicator was updated in 2022 and is in the process of being rolled out.
By 2030, all of our industrial sites and all our operated buildings will have a positive impact on biodiversity, compared to 2019. The calculation methodology was defined in 2021 and is in the process of being rolled out.

These indicators are used to assess the performance of L’Oréal’s Chief Executive Officer – see section 2.4. Remuneration of directors and corporate officers of this document.

(1) 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 than130 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/.

(2) Unit used: TCO2eq./kg of formulas sold.

(3) Methodology for calculating this commitment specified in chapter 4.

(4) Unit used: L/Kg of formulas sold.

(5) Waterloop factories.

(6) Scope: bio-sourced ingredients of formulas, packaging excluded.