Since 2007, L’Oréal has involved its suppliers in the process of measuring and reducing their greenhouse gas emissions by encouraging them to participate in CDP Supply Chain programme. In 2023, 790 suppliers participated in CDP Supply Chain, representing 85% of the 926 suppliers invited. These suppliers, which are large industrial groups and small and medium businesses, were selected from all purchasing areas, everywhere in the world. The average result for strategic suppliers in 2023 was “B-”.
In the direct purchases category, the suppliers participating in CDP Supply Chain account for 90% of expenditure in 2023. The average result for the direct suppliers was “B-”.
In December 2015 at the time of COP21, L’Oréal strengthened its objectives and accelerated the implementation of its efforts to fight climate change. Since then, suppliers have been encouraged, via CDP Supply Chain, to report their carbon emissions, set targets for reducing greenhouse gas emissions and communicate their action plans to achieve this.
At the end of 2023, the suppliers meeting this commitment represented 87% of the Group’s strategic suppliers. The average score of these suppliers is “B”, the highest score since the start of the programme.
CDP continues to recognise L’Oréal as a company that is committed to reducing greenhouse gas emissions. In 2023, CDP awarded L'Oréal as “Supplier Engagement Leader”(1)This recognition highlights companies proactively working with their suppliers to ensure climate change action cascades down their supply chains through supplier engagement, governance, Scope 3 emissions accounting and target-setting. for the 6th consecutive year, among more than 450 companies, for encouraging all players in its supply chain to reduce their environmental impact.
In 2023, the teams worked with CDP to support the suppliers and undertook the following actions:
CDP Supply Chain assessment is at the heart of the discussions during annual strategic meetings, but also throughout the year, in the context of our interactions with suppliers. This methodology is based on:
As part of the L’Oréal for the Future programme, the Group is committed to supporting its strategic suppliers in reducing their greenhouse gas emissions by 50% between 2016 and 2030 (Scopes 1 and 2). The Group has defined a methodology to mobilise suppliers based on their emissions contributions and to work with them to manage their emissions performance.
This methodology is based on:
The commitments set by each supplier form the foundation of the global suppliers emissions reduction trajectory.
In 2023, 44% of strategic suppliers had an objective that was validated by the SBTi.
In cooperation with suppliers, an action plan is drawn up and monitored, utilising the decarbonisation drivers that are suited to their business, their circumstances and their maturity.
The Group urges its suppliers to have their emissions data checked by a third party to improve the reliability of their trajectories. In 2023, 73% of the Group’s strategic suppliers had their carbon data checked by a third party as required by CDP.
L’Oréal is working towards Zero Deforestation (palm and derivatives, soy, paper and cardboard). In this regard, L’Oréal has participated in CDP Forests since 2012.
Since 2017, L’Oréal has encouraged its 218 main suppliers of paper, palm oil and soy to participate in CDP Supply Chain via its CDP Forests programme dedicated to the supply chain. At the end of 2023, 159 of the selected suppliers had participated in the programme’s seventh year. Suppliers that created reports and implemented a Zero Deforestation policy and related initiatives represented 34% of selected suppliers' expenditures. Their average score was “B”.
As part of the L’Oréal for the Future programme, the Group is committed to supporting its strategic suppliers in managing their water sustainably. This support is based on a twofold approach: each supplier must have a sustainable water management plan. The supplier must also consider the condition of the water stress zone in which it operates and its industrial water consumption and wastewater treatment.
To progress this further, the Group organised several expert consultations in 2023. The aim is to look at the best practices to be adopted in terms of sustainable water management and the most relevant indicators to use.
