2023 universal registration document

4.3.1.1.6. Preserving resources and reducing waste on operated sites

For several years, there has been an ambitious approach to waste reduction and recovery in the Group within the framework of the Sharing Beauty With All programme. The L’Oréal for the Future programme is continuing this work. This is an ambitious challenge in light of L’Oréal’s exacting definition of waste. Indeed, any substance, product or material leaving a site that is not a finished product intended for consumption is considered as waste, regardless of how it is treated.

As part of the L’Oréal for the Future programme, the Group has set targets to reduce the waste it generates by 2030:

• reducing the waste generation of factories and distribution centres by 30% per finished product compared to 2019; and
• reducing the waste generation of administrative sites and research centres by 30% per 100 hours worked compared to 2019.

L’Oréal continued to work towards its “zero waste to landfill” objective (unless required by regulation).

Reducing waste generation at source

The reduction of waste generation involves the Group’s entire value chain, and is enabled in particular by:

• eco-designing products, packaging articles and transportation packaging in a way that aims to reduce waste and improve their recyclability (weight reductions, optimisation, reuse etc.);
• mapping the waste generated using theWaste Scan tool, an in-house L’Oréal tool that carries out a comprehensive analysis of the different types of waste on site, particularly for the Group’s industrial sites. Each type of waste is quantified and compared with a benchmark value in order to identify potential reductions and to prioritise any action to be taken;
• optimising transportation packaging of raw materials and packaging components received in the Group’s factories. The development of the wall-to-wall⁽¹⁾(1) Production of filling and packing articles close to the Group’s production facilities. approach is a particularly effective means of reducing waste related to the supply of components at source;
• a continuous improvement of manufacturing, filling and packing procedures in order to reduce losses during production;
• management of obsolete stock in order to reduce waste generation. In each zone, programmes combine industrial agility and improved sales forecasts. They aim to reduce product obsolescence and improve flows via the establishment of outlets, sales to employees’ friends and family, sales to staff and donations to not-for-profit organisations.

In its restaurants under direct management, the Group raises employees’ awareness of waste, ensures 100% of food waste is recovered and adapts the quantities served accordingly. It promotes responsible, fair trade and sustainable food by favouring local organically farmed produce, fair trade coffee, and seasonal fruit and vegetables. Campuses in the Paris region have committed to reducing plastic and recovering frying oils by turning them into biofuel. Two campuses have earned the “Mon restau responsable” label for a quality food service that respects the environment.

GENERATION OF TRANSPORTABLE WASTE FROM OPERATED SITES⁽²⁾"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).

In 2023, 93,496 tonnes of waste (excluding sludge) ☑The Statutory Auditors have expressed reasonable assurance about this indicator. were generated at sites operated by the Group (up 1%), including 88,297 tonnes of waste at industrial sites (excluding sludge) ☑ The Statutory Auditors have expressed reasonable assurance about this indicator.an increase of 3% compared to 2019. Over the same period, the production of finished products increased by 12%. This represents 13.7 grams per finished product ☑The Statutory Auditors have expressed reasonable assurance about this indicator. for all operated sites (10% decrease) including 13.0 grams per finished product for industrial sites ☑The Statutory Auditors have expressed reasonable assurance about this indicator., an 8% decrease compared with 2019.

Waste generation for the administrative sites and research centres was 5,199 tonnes in 2023 (excluding sludge) ☑The Statutory Auditors have expressed reasonable assurance about this indicator., representing a 20% decrease compared with 2019. This represents 9.9 kilograms per 100 hours worked ☑, an increase of 9% compared with 2019 (-10% compared with 2021).

Changes in waste generation 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, since the lockdown periods, the on-site attendance rate has fallen sharply due to the extensive use of remote working.

Industrial pilot, laboratory and pre-launch testing activities, which are more related to research and development projects and new product launches, generate waste regardless of the number of administrative staff present.