2023 universal registration document

4. Corporate Social Responsibility

Water consumption and quantitative water footprint of the Group’s factories 2022 2023
Municipal water withdrawn (or other supplier) (m3)

Municipal water withdrawn (or other supplier) (m

3

)

2022

1,811,979

Municipal water withdrawn (or other supplier) (m

3

)

2023

1,911,431

Rainwater (m3)

Rainwater (m

3

)

2022

0

Rainwater (m

3

)

2023

0

Groundwater (m3)

Groundwater (m

3

)

2022

256,370

Groundwater (m

3

)

2023

208,578

Total withdrawal (m3)

Total withdrawal (m

3

)

2022

2,068,608

Total withdrawal (m

3

)

2023The Statutory Auditors have expressed reasonable assurance about this indicator.
Wastewater at the exit of the site (m3)

Wastewater at the exit of the site (m

3

)

2022

1,020,362

Wastewater at the exit of the site (m

3

)

20231,060,464 The Statutory Auditors have expressed reasonable assurance about this indicator.
Water consumption (m3)

Water consumption (m

3

)

2022

1,048,245

Water consumption (m

3

)

2023

1,059,545

Quantitative water footprint (m3 eq.)

Quantitative water footprint (m

3

eq.)

2022

8,583,556

Quantitative water footprint (m

3

eq.)

20238,157,607The Statutory Auditors have expressed reasonable assurance about this indicator.
The Water Disclosure Project: water transparency and risk management across the value chain

Since 2010, L’Oréal has taken part in the Water Disclosure Project, of which it is one of the founding responders. This programme encourages companies to annually publish their water management strategy, their results and the projects they have launched to improve water performance and reduce water-related risk. It was launched by CDP, an independent not-for-profit organisation that promotes environmental transparency and disclosure on several issues, including climate change, water and deforestation.

In 2023, L’Oréal was recognised for the eighth consecutive year as one of the world leaders for its strategy and actions in sustainable water management. It received the highest possible “A” rating from CDP. These initiatives cover its entire value chain, from the production of raw materials to products being used by consumers and reaching the end of their life.

L’Oréal is also encouraging its supply chain to manage water sustainably (see subparagraph 4.3.1.2.2.).

4.3.1.1.5. Protecting biodiversity 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 (see paragraph 4.5.1.3).

The Group wishes to limit the impact of its activity on biodiversity throughout its value chain and at each site it operates. Biodiversity protection initiatives and awareness‑raising activities for employees and local stakeholders have been running for several years at many sites.

L’Oréal has rules governing land use when constructing new buildings (see subparagraph 4.3.1.1.2.). In addition to these, since 2018, each site responsible for maintaining green or non-artificial spaces has been asked to put in place an appropriate structure to roll out a biodiversity roadmap. Partnerships with local external organisations (associations, specialist firms etc.) are established to carry out on-site biodiversity inventories and propose appropriate action plans consistent with the ecosystems within which the sites operate.

These inventories consider local, regional and national challenges, and relate to the proportion and connection of green spaces, the diversity of habitats and vegetation layers, the number of species (flora and fauna), including protected, endangered, and invasive species.

At the end of 2023, 97 % siteshad carried out a biodiversity inventory, which is 91% of sitesresponsible for maintaining their green spaces.

For further progress, the L’Oréal for the Future programme aims to ensure that all buildings and industrial sites operated by the Group have a positive impact on biodiversity by 2030 compared to a baseline situation (established between 2019 and 2023).

A methodology for monitoring this commitment was developed in 2021 and rolled out to all of the Group’s sites from 2022 onwards. The status "Biodiversity Net Positive Site" is granted based on:

  • the achievement of a target for the improvement of habitat and biodiversity quality. At site level, this improvement is measured using an internal indicator called the Site Biodiversity Score (SBS). The information required to calculate it is taken from biodiversity inventories. This indicator assesses and monitors the quality of biodiversity on a given site. Sites without the control on green or non-artificial spaces must engage in offsite projects, whose evolution in terms of biodiversity quality is integrated into the calculation of the SBS of the site; and
  • achieving a target for propagating a biodiversity culture. The development of a biodiversity culture involves educating and training all teams at a site, incorporating biodiversity considerations into the rollout of new projects (extending a building etc.) and into the everyday life of the site (light pollution, phytosanitary products, awareness of food waste etc.). The average culture score in 2023 is 1.3 out of 5.

Phytosanitary products (insecticides, fungicides and herbicides) used in the maintenance of green spaces can have adverse effects on the environment and human health. L’Oréal is therefore committed to discontinue the use of these products at its operated sites by 2030.

The Statutory Auditors have expressed reasonable assurance about this indicator.

(1)“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 (see paragraph 4.5.1.3).