Palm Project led by the Livelihoods Fund for Family Farming (L3F): integrating regenerative agriculture into palm production in Indonesia
Indonesia is the main country from which L’Oréal obtains supplies of palm oil derivatives, accounting for 72.8% of the Group’s purchase volumes. North Sumatra is an area that is particularly vulnerable to climate change. For decades, millions of independent smallholder farmers in emerging countries have relied on palm oil to make a living. Today, they are still largely left behind in the necessary industry transition to sustainability and are facing numerous challenges: competition with large plantations, declining productivity and a lack of financial means to replace their ageing trees.
In keeping with its “learning-by-doing” approach as part of the coalition of international and local stakeholders, the L3F has launched an unprecedented project to support 2,500 smallholder farmers in the region. The project especially aims to build a transparent, deforestation free supply chain. To achieve this, the project uses agroforestry models adapted to local conditions, implements regenerative agriculture principles and preserves biodiversity in the plots.
Since 2021, L’Oréal has supported this project, which will help to regenerate 8,000 hectares of degraded farmland and restore an additional 3,500 hectares of local biodiversity in addition to the plots in surrounding productive and protected forests. Going into the third year of the project has enabled L’Oréal and its partners to demonstrate that the regenerative agriculture practices the project promotes have been understood and widely adopted by farmers. A great deal of progress has been made with shade loving ground cover crops, selective weeding, the acceleration of organic fertilisation and organic inputs. Regenerative agriculture in palm oil production represents a balanced systemic approach to restructuring the top layer of various soils and demonstrating to independent farmers the impact of gradually reducing the use of chemical substances in distinct plots on the same farm.
For the second year running, 798 farmers were RSPO certified. We are currently working on launching a study on the financial autonomy of the women in the project to increase awareness of the issue of gender and the household economy.
Soy: in 2023, L’Oréal consumed 355 tonnes of soybean extract and 89 tonnes of soybean extract derivatives. In 2023, 100% of the soybean extract originating from Latin America used by L’Oréal was from certified sources (Identity Preserved Proterra – IP) or, for the most part, from a land project certified RTRS, Organic and Fair For Life. This project aims to support 41 small soybean producers in Brazil and Paraguay.
Paper/cardboard: materials used by L’Oréal for its packaging, the paper used for product leaflets and the cardboard used for boxes are certified as coming from sustainably managed forests (FSC or PEFC certified) (see the paragraph entitled “Materials vigilance and preservation of resources”).
Improving the environmental profile of packaging, POS displays and stores based on the Group’s sustainability principles
The environmental policy for packaging is based on three drivers (the 3Rs): Reduce, Replace, Recycle.
| Reduce | Packing articles and finished goods that are smaller and lighter in relation to the contents, thereby consuming fewer resources. |
|---|---|
| Replace | Substituting high-impact materials and processes with alternative materials and processes with lower environmental footprints, such as recycled materials, materials from natural and renewable sources and processes with lower carbon intensity. |
| Recycle | Making sure that packaging can contribute to circularity by being recyclable. |
These principles are applied before each launch, right from the marketing brief. The Group harnesses them via a global, systematic environmental impact measurement process for packaging, notably with the help of the SPOT measurement tool. The Group’s packaging strategy fully incorporates its sustainability commitments. L’Oréal rolls out and regularly updates tools (databases, guides and procedures) to support the product development teams.
Since 2018, the Group has used a specific POS programme that is based on eco-design and circular economy principles. For our operated stores, we have drawn up an eco-design and construction guide in line with the Group’s sustainability principles. The Group shares the guidelines and best practices for both these initiatives with its suppliers and partner distributors.
In 2023, 69% of createdor renovated products hadan improved environmental profile due to improved packaging.