1.3.2. Value chain
VALUE CHAIN
Research, Innovation and Technology
- 610 patents filed in 2023
- €1,288 million: 2023 expenditure (3% of sales)
- 20 cosmetics research centres, 13 assessment centres, 1 advanced research centre
- 4,194 employees in the Research team
- AirLight Pro, winner of the CES Innovation Awards 2024
Design
- In 1989, end of animal testing for finished products
- Development of predictive method with the production of reconstructed skin
Sourcing
- 1,242 social audits were conducted in 2023
- €6.4 billion in production-related purchases
- 63% of the number of newly listed raw materials are renewable
- 25% of the number of newly listed raw materials sourced from green chemistry
Factories and logistics centres
- 37 factories worldwide
- In 2023, 100% of the Group’s plants were ISO 9001 certified and 100% were ISO 22716 certified (see 1.3.8.)
Digital and Marketing
- 37 international brands
- 77.5% of our media investments are digital
- 4th biggest advertiser worldwide, across all industries(2)The term “eco-designed products” refers to new or updated products with an improved environmental profile. See subparagraph 4.3.1.3.1.
- Responsible communication commitment: Member of the Unstereotype Alliance
- L’Oréal’s Influencer Value Charter
- All the Group’s brands committed to Diversity, Equity and Inclusion
Distribution channels
- More than 7 billion products distributed
- 152 distribution centres
- End of 2023, elimination of single-use plastics from all distribution centres worldwide
Product use and end-of-life
- The 3 “R”s approach to the eco-design of packaging: Reduce packaging intensity; Replace with materials with a better environmental footprint; Recycle by creating packaging that will contribute to the circular economy
ENVIRONMENTAL PERFORMANCE (See the 2023 L'Oréal for the Future table in 1.4.2)
BY 2030
95 % of our ingredients in formulas will be biobased, derived from abundant minerals or from circular processes
2023 RESULTS
65%
BY 2030
All Group products will be eco-designed(1)COMvergence ranking.
2023 RESULTS
96%
BY 2030
100 % of our strategic suppliers’ employees will be paid at least a living wage
2023 RESULTS
Reporting in progress
BY 2030
all our plants will use 100% recycled and reused water in their industrial processes
2023 RESULTS
14%
BY 2025,
100 % of the advertising displays at our points of sale will be eco-designed(1)La terminologie « produits éco-conçus » se rapporte aux produits nouveaux ou rénovés qui présentent un profil environnemental amélioré. Voir paragraphe 4.3.1.3.1.
2023 RESULTS
99%
BY 2025,
on average we will have halved the greenhouse gas emissions per finished product linked to the transport of our products compared to 2016
2023 RESULTS
- 9,7%
BY 2025,
we will innovate to enable our consumers to reduce their greenhouse gas emissions resulting from the use of our products by 25% compared to 2016, on average and per finished product
2023 RESULTS
- 21%
CREATING VALUE FOR OUR STAKEHOLDERS
Employees
- €7.7 billion in personnel costs (including social security contributions)
- 1st prize for gender equality in business (Equileap France)
- Profit sharing: €461 million
- Over 37,000 employee shareholders
- 94,605 employees at the end of 2023
Consumers
- Roll-out of an environmental and social labelling system for products, and efforts to unite the industry by being a founding member of the EcoBeautyScore Consortium
- A global quality management system to guarantee performance and quality for consumers (see 4.3.1.3.2. A/)
Shareholders
- Dividends distributed in 2023: €3.2 billion
- Market capitalisation at 31/12/2023: €241.0 billion
- Shareholder return over 5 years: 19.0% per year
- L’Oréal is part of the CAC 40 Index
Providers and suppliers of goods and services
- 95% of direct and indirect strategic suppliers were evaluated on the basis of their environmental and social performance
Government and local authorities
- In 2023, the amount of tax L’Oréal paid to governments and local authorities was €2.6 billion
Communities
- More than 4 million people benefited from the brands’ social commitment programmes
- L’Oréal for Youth: 25,000 work opportunities per year for under-30s.
- L’Oréal Fund For Women (see 4.3.3.7.4.)
Écosystem and environment
- 61% of the waste generated on our industrial sites is reused or recycled
- 65% reduction in absolute CO2 emissions and 10% reduction in water withdrawal per unit of finished product vs 2019 (plants and power stations)
- Circular Innovation Fund, L’Oréal Fund for Nature Regeneration and L’Oréal Climate Emergency Fund (see 4.3.1.5.)