2023 universal registration document

4. Corporate Social Responsibility

Policy Risks Indicators and principal results
4.3.1.2. Involving suppliers in the Group’s transformation 4.3.1.2. Involving suppliers in the Group’s transformationRisks

Industrial risks Physical and transition risks associated with climate change

 4.3.1.2. Involving suppliers in the Group’s transformationIndicators and principal results
  • 95% of direct and indirect strategic suppliers were evaluated on the basis of their environmental and social performance
  • 790 suppliers participated in CDP Supply Chain, representing 85% of the 926 suppliers invited
  • Engaging suppliers: 1,242 social audits were conducted in 2023 ☑;
  • 965 suppliers have had their social, environmental and ethical policies evaluated by EcoVadis
  • in 2023, 93,165 people gained access to work through our worldwide Inclusive Sourcing programme;
  • Reducing Group emissions from product transport (Scope 3 as per the GHG Protocol): CO2 emitted by transportation: -9.7% (tCO2 eq./unit sold compared with 2016)
4.3.1.3. Sustainability: from product design to end consumer 4.3.1.3. Sustainability: from product design to end consumerRisks

Risks related to the use and end of life of products

Risk related to changing stakeholder and consumer expectations in terms of environmental performance

 4.3.1.3. Sustainability: from product design to end consumerIndicators and principal results
  • 96% of the Group’s products have an improved environmental profile;
  • 65% of our ingredients in formulas are from biobased sources, derived from abundant minerals or from circular processes
  • “Zero Deforestation” commitment: 100% of purchases of palm oil and of palm oil and palm kernel derivatives have been certified as sustainable according to the RSPO criteria Roundtable on Sustainable Palm Oil.
  • 44% of the Group’s plastic packaging is refillable, reusable, recyclable or compostable
  • 99% of the advertising displays at points of sale follow eco -design rules
  • Number of people who have benefitted from the commitment of our brands: over 4 million
4.3.1.4. Meeting the most demanding climate standards 4.3.1.5. Contributing to solving the environmental challenges of the world 4.3.1.4. Meeting the most demanding climate standards 4.3.1.5. Contributing to solving the environmental challenges of the worldRisks

Physical and transition risks associated with climate change

Risk related to changing stakeholder and consumer expectations in terms of environmental performance 

 4.3.1.4. Meeting the most demanding climate standards 4.3.1.5. Contributing to solving the environmental challenges of the worldIndicators and principal results
  • GHG assessment, an annual exercise: Scopes 1, 2 and 3: 11,501 thousand tonnes of CO2 equivalent;
  • Climate commitments relating to Scope 3 (Science Based Targets, Pledge of the UN Global Compact: “Business Ambition for 1.5°C”);
  • Adapting the model to the climate emergency: alignment with the TCFD principles
  • Alignment with the European Taxonomy, the priority target of which is the sectors with the largest environmental footprint, in which L’Oréal is not included
4.3.1.1. A strategy and ambitions centred on sustainability
4.3.1.1.1. An ambitious EHS policy shared by all

A pioneering, socially responsible company, L’Oréal applies an ambitious Environment, Health and Safety (EHS) policy to minimise its environmental impact and guarantee the health and safety of employeesThe Health and Safety policy addressing the health and safety risk of employees (see subsection 4.2.2.) is presented and described in the Human Resources policy (see subsection 4.3.2.)., customers, and the communities in which it carries out its business activities.

This has been reflected, for many years, in the desire to systematically control the risks related to the safety of people and the environment that are inherent in the Group’s business activities. A risk assessment and action plans aim to reduce the potential impacts of:

  • any establishment or renovation of a site;
  • any introduction of new equipment or manufacturing processes; and
  • any modification of industrial processes.

This commitment has led to the deployment of the Group’s EHS policy over the entire spectrum of its business activities, but also beyond it. Indeed, the Group strives to ensure the regulatory compliance of its activities and compliance with its standards on its sites (industrial or administrative sites, research centres, stores). The Group also ensures that its subcontractors and suppliers respect the safety of people and the environment through a specifically dedicated audit programme.

☑The Statutory Auditors have expressed reasonable assurance about this indicator.