2023 universal registration document

4. Corporate Social Responsibility

4.3.1.3.1. Products with an improved environmental profile
A/ Reducing the environmental footprint of products

96% of new or updatedproducts had an improved environmental profile in 2023.

2030 TARGET: 100%

Basis of calculation representing 69% of all projects, excluding items considered to be irrelevant, such as ad hoc animation and promotion products and˜regulatory compliance leading to changes that are not visible to consumers.

In 1995, L’Oréal opened its first environmental research laboratory to evaluate and reduce the environmental footprint of its formulas. Through this initiative, the Group has developed expertise regarding the potential impacts of its cosmetic products on aquatic environments. Right from the design stage, raw materials used in the formulation of products are evaluated as part of a strict ingredient selection process. Since 2005, L’Oréal has stopped introducing to its catalog new raw materials with an adverse environmental profile (see subparagraph 4.3.1.3.1 B and C).

Packaging represents a significant share of the environmental impact of cosmetic products. Reducing its environmental footprint is therefore naturally in line with the commitments made under the L’Oréal for the Future programme. In 2007, L’Oréal launched a Packaging and Environment Policy that incorporates respect for consumers, the environment and biodiversity. 

The new programme highlights three major challenges to improving the environmental profile of packaging: resource optimisation, choice of materials and circularity after product use (see subparagraph 4.3.1.3.1. C).

Measuring the environmental impact of products

For several years, L’Oréal has analysed the life cycles of its products in order to identify, evaluate and improve their environmental impact.

Since 2017, SPOTSustainable Product Optimisation Tool., a tool based on a rigorous scientific methodology for assessing environmental impacts(2)Thanks to the ramp-up and activation of the Group’s social programmes in recent years and the anticipated alignment of the calculation of the environmental footprint of products with the future EcoBeautyScore developed in conjunction with the industry, the SPOT tool focuses on the environmental impact of products. The social impact will be assessed as a separate exercise and will be subject to a methodological review under an ISO standard that is currently in the development phase., has been rolled out to all Group brands (except recent acquisitions). This tool calculates the environmental footprint of a product according to European Commission recommendations(3)Recommendation on the use of common methods to measure and communicate the environmental performance of products and organisations (product environmental footprint). . At L’Oréal, SPOT is an integral part of product launch processes, putting sustainable innovation at the very heart of product development.

  1. SPOT precisely measures environmental impacts by integrating the 14 impact factors used by the European product environmental footprint framework.
  2. These different impacts are standardised on the basis of average consumer impacts worldwide.
  3. To obtain a single value for the product environmental footprint (formula and packaging), these impacts are aggregated using a method based on the planetary boundaries(4).Boundaries developed by an international team led by Professor Johan Rockström of the Stockholm Resilience Centre.
  4. Lastly, the score obtained, comprised between 0 and 10, is compared to a reference to allow product design teams to measure their progress.

In 2023, L’Oréal was awarded Cradle to Cradle certification for 557 products on the US market, including 20 new launches in 2023.

Brand examples Product type Certification Number of products
L’ORÉAL Paris L’ORÉAL ParisProduct type

Hair care

L’ORÉAL ParisCertification

Silver

L’ORÉAL ParisNumber of products

91

Maybelline New York Maybelline New YorkProduct type

Makeup

Maybelline New YorkCertification

Gold/Silver

Maybelline New YorkNumber of products

39

Redken RedkenProduct type

Hair care

RedkenCertification

Silver

RedkenNumber of products

156

YSL YSLProduct type

Skin care

YSLCertification

Silver

YSLNumber of products

26

B/ Reducing the environmental footprint of formulas 

All products manufactured by the Group are analysed, from shampoos and haircare products to skincare products and perfumes. This analysis enables products with the same consumer benefit to be classified according to their environmental footprint.

Approximately 125 product categories that provide a consumer benefit were defined and over 40,000 formulas were screened. Then, the performance of each category was established to allow products to have a better environmental footprint using SPOT. The aim is to develop new formulas to obtain an improved environmental profile while maintaining the same consumer benefits.

Improving biodegradability

The Group is working to measure and increase the biodegradability of its formulas and reduce their water footprint at the end of their life cycle. These two parameters are integrated in the SPOT tool. 

All the product formulator teams use this tool to assess biodegradability and water footprint whenever new formulas are created.

In 2023, 100% of the new formula launches were evaluated, with 79% showing an improved environmental profile.

The table below lists some examples of formulas with biodegradability levels of 98% (all L’Oréal geographic zones) amongst the products launched in 2023:

Sustainable Product Optimisation Tool.

Thanks to the ramp-up and activation of the Group’s social programmes in recent years and the anticipated alignment of the calculation of the environmental footprint of products with the future EcoBeautyScore developed in conjunction with the industry, the SPOT tool focuses on the environmental impact of products. The social impact will be assessed as a separate exercise and will be subject to a methodological review under an ISO standard that is currently in the development phase.

Recommendation on the use of common methods to measure and communicate the environmental performance of products and organisations (product environmental footprint). 

Boundaries developed by an international team led by Professor Johan Rockström of the Stockholm Resilience Centre.