2023 universal registration document

1. Reducing energy consumption and withdrawal

For 20 years, the Group has focused on reducing its energy consumption. These efforts primarily target three areas:

• rolling out energy sobriety initiatives;
• continuously improving industrial processes and associated equipment;
• optimising building energy consumption. In this respect, any new Group building has to comply with the strictest environmental standards. In particular, they must be LEED Gold certified or equivalent during construction or refurbishment;

In order to reduce energy withdrawal from the grid and to speed up the roll out of renewable energy production facilities in the Group’s operated sites, a new performance indicator energy withdrawal has been put in place. This will replace the energy consumption reduction indicator from 2023, and it will become the reference indicator for energy within the L’Oréal for the Future programme. However, our sites’ performance in terms of energy consumption reduction will still be subject to specific monitoring. Energy withdrawal is calculated by taking the energy consumption and subtracting the energy that is produced and consumed on-site (self‑consumption⁽¹⁾Self‑consumption is defined as the energy produced and consumed by the site meeting three criteria: (1) be physically produced by the site and (2) not pass through an off-site network to the site (3) without transferring the associated renewable attributes.) without recourse to off-site resources to produce this energy (particularly electricity grids, gas networks, biofuels and biomass).

Reducing energy withdrawal is based on two drivers:

• increasing on-site self-consumption capacity by installing photovoltaic and thermal solar panels (on the ground, rooftops or car park canopies) and using geothermal and heat pump solutions. These facilities use the site’s available energy (sunlight, heating and cooling from the ground) and reduce the amount of resources extracted to serve its energy requirements;
• reducing energy consumption in relation to the proportion of energy still taken from off-site resources by implementing energy sobriety and efficiency techniques.

Under the L’Oréal for the Future programme, the Group has set itself the objective of: 

• reducing the energy withdrawn by factories and distribution centres per thousand units of finished product by 40% by 2030 compared with 2019;
• reducing the energy withdrawn by administrative sites and research centres per 100 hours worked by 40% by 2030 compared with 2019.

In 2023, the total energy withdrawal of the operated sites was 912,173 megawatt-hours ☑The Statutory Auditors have expressed reasonable assurance about this indicator.. This was a 1% reduction in absolute value compared with 2019. In 2023, withdrawal in kilowatt-hours for 1,000 finished products was 134 kilowatt-hours, down 12% compared with 2019☑The Statutory Auditors have expressed reasonable assurance about this indicator..

In 2023, the total energy withdrawal at the industrial sites was 756,572 megawatt-hours ☑The Statutory Auditors have expressed reasonable assurance about this indicator.. This was a 3% increase in absolute value compared with 2019. In 2023, withdrawal in kilowatt-hours for 1,000 finished products was 111 kilowatthours, down 8% compared with 2019☑The Statutory Auditors have expressed reasonable assurance about this indicator..

In 2023, total energy withdrawal at the administrative sites and research centres was 155,601 megawatt-hours ☑The Statutory Auditors have expressed reasonable assurance about this indicator., a decrease of 18% in absolute value compared with 2019. The total energy withdrawal at the administrative sites and research centres was 296 kilowatt-hours per 100 hours worked☑The Statutory Auditors have expressed reasonable assurance about this indicator.Les Commissaires aux Comptes ont exprimé une assurance raisonnable sur cet indicateur., a 13% increase compared with 2019 (-15% compared with 2022).

Changes in energy withdrawal intensity (in relation to the number of hours worked on site) have been significantly affected by changes in the way in which work is organised. Indeed, the on-site attendance rate has fallen sharply due to the extensive use of remote working. Moreover, industrial pilot, laboratory and pre-launch testing activities⁽²⁾An entity reporting to R&I, tasked with producing limited quantities of bulk products or finished products (which cannot be marketed) to make them available to laboratories or business, and to help validate product design quality., which are more related to research and development projects and new product launches, consume a lot of energy regardless of the number of employees present. A minimum energy requirement is also essential for the operation of buildings and technical facilities.