2023 universal registration document

4. Corporate Social Responsibility

In 2023, the total COD of wastewater leaving the Group’s factories was 0.36g☑ per finished product, a decrease of 38% in absolute terms and of 44% per finished product compared to 2019. These reductions are related to the operational start ups of new effluent treatment plants and the optimisation and extension of existing treatment plants at several Group factories.

Wastewater quality index

As part of L’Oréal for the Future, the Group has established an internal standard for industrial effluent quality leaving the sites. By 2030, 100% of the wastewater leaving the sites must not exceed a COD of 1,000 mg COD/l. If local regulations impose a lower threshold, the site must comply with the lower value. At year end 2023, 22 factories were in compliance with this internal standard, representing 59% of the Group’s factories.

(grams of COD per finished product)

Scope: production sites

2022

2023

Accidental spills (number of instances)

Accidental spills (number of instances)

2022

0

Accidental spills (number of instances)

2023

0

Wastewater at the exit of the site (m3)

Wastewater at the exit of the site (m3)

2022

1,020,362

Wastewater at the exit of the site (m3)

2023

1,060,464 The Statutory Auditors have expressed reasonable assurance about this indicator.

COD at the exit of the site (in tonnes)

COD at the exit of the site (in tonnes)

2022

2,218

COD at the exit of the site (in tonnes)

2023

2,467The Statutory Auditors have expressed reasonable assurance about this indicator.

The Group’s air emissions, excluding greenhouse gases

In addition to greenhouse gases, L’Oréal works continually to control its atmospheric emissions. Every month, the Group’s sites collect data in order to calculate the quantity of sulphur dioxide (SO2) emitted into the atmosphere. These emissions are calculated based on fuel consumption and sulphur content. The operation and maintenance of atmospheric emission collection and treatment facilities are subject to specific procedures and instructions.

The quantity of SO2 emitted by all the sites operated by the Group totalled 0.14 tonnes in 2022 and 0.10 tonnes in 2023, representing a reduction of 29%.

Noise pollution

L’Oréal’s industrial activities are not particularly noisy. The sites comply with the applicable noise standards. Internal environmental reporting is one way to ensure monthly readings of any non conformity on this issue.

Provisions for environmental risks

The amount of the provisions for environmental risks is not material (see note 13.1 of the Consolidated Financial Statements).

4.3.1.1.3. Efforts to fight climate change on operated sites > “Operated” sites include all production sites (factories, distribution centres) as well as administrative sites and research centres. The reporting only includes sites with more than 50 people, as specified in the methodological notes (paragraph 4.5.1.3).

L’Oréal has set itself a major objective of fighting climate change in the overall exercise of its activities. Every effort is being made to reduce greenhouse gas emissions, particularly at the sites where its activities are performed.

Compared to other industries, the cosmetics industry has lower energy consumptions and lower CO2 emissions. There are no carbon pricing mechanisms (taxes and emissions trading systems) provided for by international, national or regional regulations that apply to L’Oréal at the end of 2023. This includes all industrial and administrative sites, as well as research centres. However, L’Oréal has been committed to the efforts to fight climate change for many years and applies a proactive policy for the reduction of its CO2 emissions.

To limit its impact on climate change, L’Oréal has implemented a strategy for reducing the carbon intensity of its sites, which is based around three pillars:

  • reducing energy needs by implementing energy sobriety approaches and by improving the energy efficiency of its facilities (buildings, equipment, industrial processes etc);
  • using local renewable energy; and
  • containing cooling gas leaks and using refrigeration fluids that have a low impact on global warming.

This decarbonisation strategy is implemented without the use of carbon offsets.

The Statutory Auditors have expressed reasonable assurance about this indicator.

“Operated” sites include all production sites (factories, distribution centres) as well as administrative sites and research centres. The reporting only includes sites with more than 50 people, as specified in the methodological notes (paragraph 4.5.1.3).