2023 universal registration document

4. Corporate Social Responsibility

3. Managing the impacts of cooling gas

Cooling gases which are used in equipment to produce cooling (e.g. chillers) and heating (e.g. heat pumps) at sites operated by the Group are regularly monitored and reported in the monthly EHS reporting tool.

A reduction strategy for greenhouse gas emissions associated with cooling gases has been implemented following a comprehensive inventory of the equipment that use cooling gases at each site. It is based on two pillars: detecting and managing leaks and replacing conventional cooling gases with alternative cooling gases that have low global warming potential (or GWPA unit of measurement that can be used to assess the warming potential of a greenhouse gas on the basis of its ability to absorb heat and its lifetime in the atmosphere. This value is measured in relation to CO2 Conventionally, the GWP of CO2 is 1, whereas that of methane, for example, is 29.8 (IPCC Sixth Assessment Report, 2021). Cooling gases (HFC, HCFC) are powerful greenhouse gases. For example, the global warming potential (GWP) of R410a is 2,256. This means that each kilogramme of R410a released into the atmosphere corresponds to 2,256 kgCO2eq.).

Cooling gas leaks (thousand tonnes of CO2 equivalent) 2022 2023 Variation vs. 2022
L’Oréal Group L’Oréal Group20225,492 L’Oréal Group20233,891 L’Oréal GroupVariation vs. 2022-29%
Industrial sites

Industrial sites

2022

4,861

Industrial sites

2023

2,295

Industrial sites

Variation vs. 2022

-53%

Administrative sites and research centres

Administrative sites and research

centres
2022

630

Administrative sites and research

centres
2023

1,596

Administrative sites and research

centres
Variation vs. 2022

+153%

4.3.1.1.4. Preserving site water resources

L’Oréal Group aspires to preserve water resources throughout its value chain, especially at each of its operational sites. The action plans implemented around the world are based notably on the following key principles:

  • mapping the volumes of water used, with L’Oréal’s internal Waterscan tool comprehensively analysing the various uses of water in the Group’s factories. Each usage type is quantified and compared with a benchmark value to identify potential reduction;
  • installing equipment and processes for reduction. This concerns in particular the cleaning phase of production equipment and packaging lines in factories, and is based on the OPTImisation Cleaning In Place (OPTICIP) approach developed by L’Oréal; and
  • reusing untreated industrial water for a new purpose and recycling the water used, after a specific additional treatment step.

At the end of 2023, 15 Group factories had these recycling facilities and were able to reuse water in industrial processes.

For several years now, L’Oréal has been using wastewater treatment systems and water loops for treated water in its factories, as part of its policy to reduce water withdrawal. This recycled water is then used for the site’s industrial processes (cooling, heating, cleaning equipment etc.), which means that fresh water consumption can be significantly reduced.

Having piloted this for several years, L’Oréal has decided to adopt this as a general practice, therefore strictly limiting the use of mains water or water drawn from the on-site ground water to the volumes required to meet the demands for domestic water and necessary for production only. Sites that exclusively and consistently use reused or recycled water for their industrial processes are known as “Waterloop factories”. This means that the water required by the utilities (cleaning equipment, steam production etc.) is derived from water that is reused or recycled on the site.

The L’Oréal for the Future programme has set the following objective: in 2030, 100% of the water used in industrial processes will be recycled and reused, i.e. 100% of our factories will be Waterloop factories. The objective of using 100% recycled or reused water in our industrial processes will be measured using an indicator to be introduced in 2024 that will identify our progress towards this goal.

At the end of 2023, 5 factories were awarded the status of Waterloop Factory, i.e 14%The Statutory Auditors have expressed reasonable assurance about this indicator. of the Group’s factories.

The “Waterloop Factory” concept

The Waterloop factory concept involves using municipal water only for human consumption and for producing the high-quality water used as a raw material for product manufacturing. This means that the water required by the utilities (cleaning equipment, steam production etc.) is derived from water that is reused or recycled on the site.

It involves a two-step plan of action:

  • optimising industrial processes to minimise water use, which reduces water withdrawals; and
  • installing a water recycling system: industrial effluent is pre-treated in the on-site treatment plant. It is then treated using various technologies (ultrafiltration, nanofiltration, reverse osmosis etc.) to extract very high-quality water.

This water is then used in a loop instead of mains water or ground water, for cleaning production tools and for utilities. Water requirements for utilities are therefore fully covered.