2023 universal registration document

As part of its objective for 2030, the Group has worked with specialised external partners such as BRGM⁽¹⁾ (1) BRGM: Bureau de recherches géologiques et minières (French geological and mining research bureau).to define a robust scientific methodology aimed at qualifying the minerals used and ensuring that they are from abundant sources. A joint presentation was given at the IFSCC⁽²⁾(2)International Federation of Societies of Cosmetic Chemists. 2023 conference.

Respect for biodiversity and societal contribution

In 2018, as part of the Act4nature initiative, L’Oréal set a goal of obtaining 100% of its biobased raw materials from sustainable sources by 2030. To be included in this category, raw materials must meet various requirements in terms of traceability, respect for human rights and compliance with the Nagoya Protocol.

Traceability of raw materials from sustainable sources

Traceability means that raw materials have an identified botanic and geographic origin. In addition, the traceability campaigns with the Group’s suppliers mean that 100% of plant-based ingredients by volume will be traced in 2030 to their country of production, with a certificate of origin for each ingredient, or even to the biomass production site. In 2023, biobased raw materials comprised 1,778⁽³⁾(3)Calculated on the basis of projected purchases between January and November 2023. raw materials from 345 botanical species cultivated in more than 100 countries.

Respect for human rights throughout the production chain.

Respect for human rights in the production chain. According to UN principles and other international standards, respect for human rights applies to the entire production chain of these raw materials based on the key risks identified. In 2023, 100% of biobased raw materials used by the Group were reassessed, in particular based on criteria such as respect for biodiversity and the risk of forced labour. (see SCAN Index below).

Compliance with the principles of the Nagoya Protocol

Plants are sourced in a way that promotes the economic development of producers and respect for traditional knowledge associated with biodiversity, according to the principles of the Nagoya Protocol.

Of the 345 botanical species that are the source of the biosourced raw materials used by the Group, around 5.5%⁽⁴⁾ present significant biodiversity challenges (endangered species and impact of production on natural environments) depending on their geographic origin and the method of extraction or production used. They are the subject of specific action plans initiated with suppliers and, if necessary, receive the systematic support of independent external third parties to manage the real impacts on the territories of origin of the ingredients.

The palm oil and its by-products segment is the subject of a specific“Zero Deforestation” approach (see below). At the end of 2023, 100% of supplies were covered by action plans with the suppliers concerned.

Other segments represent 22% of the portfolio of biobased raw materials in volume and 87% in number. For these segments, L’Oréal has defined sustainable sourcing challenges indicators⁽⁵⁾(5)Based on environmental, social and economic indicators from external databases (the UNDP’s IHDI, EPI from Yale University, and Verisk Maplecroft Country Index). to assess their sustainability.

These indicators are consolidated within the SCAN index⁽⁶⁾(6)Sustainable CHAracterizatioN index.,which enables priorities to be set in the sustainable sourcing action plans. The Group regularly updates the information collected. There are already improvement action plans in place with suppliers for 70% of the volumes (60% in number) of raw materials that have sustainable sourcing challenges according to the SCAN index. These action plans aim to ensure sustainable sourcing to achieve the goal of 100% of the Group’s biobased raw materials from sustainable sources.

L’Oréal has also launched a support and learning programme for more than 200 suppliers. They are now trained in sustainable sourcing of raw materials to guarantee the traceability of raw materials delivered to L’Oréal and ensure that the associated supply streams are secure.

Depending on the level of environmental and/or social risk identified on these streams, suppliers are asked to deploy the field audit procedure for producers. This procedure is based on 88 indicators defined by L’Oréal with the support of the Rainforest Alliance NGO and was reviewed in 2019 by EcoCert, The Biodiversity Consultancy and The Danish Institute for Human Rights.

Suppliers are also asked to make use of sustainable sourcing certifications adapted to their stream (Fair Trade, Sustainable Agricultural Network, Organic etc.).

By adopting a sustainable sourcing approach for biobased raw materials, L’Oréal contributes to the social and economic inclusion of vulnerable population groups while respecting the environment. In 2023, 93% of our ingredients were from sustainable, traceable and biobased sources.