For more information on the changes to the GHG footprint data for the above years, together with the restatements published in 2022, please refer to the detailed table in subsection 4.6.5.
The Group’s commitments to low-carbon operations management have led to initiatives and achievements aimed at reducing Scope 1 and 2 emissions and the important categories under Scope 3.
Since 2009, L’Oréal has involved its suppliers in the process of reducing its carbon footprint by encouraging them to participate in CDP Supply Chain programme (see subparagraph 4.3.1.2.2.)
In 2013, L’Oréal committed to reduce the carbon impact of downstream transportation of its finished products by 20% per unit sold per kilometre between 2011 and 2020 (see paragraph 4.5.2.1).
In 2015, L’Oréal undertook to define Science-Based Targets (SBTs) to reduce its greenhouse gas emissions across its entire value chain and over the long term, in accordance with the Paris Climate Accords. In December 2017, the SBT initiative validated the Group’s proposal: by 2030, L’Oréal is committed to reducing Scopes 1, 2 and 3 greenhouse gas emissions by 25% in absolute value compared to 2016 (with full coverage of the items of Scope 3, in accordance with the definition of the GHG Protocol). By 2025, the Group is also committed to reducing greenhouse gas emissions from all sites it operates by 100% through energy efficiency programmes and a supply made up exclusively of renewable energy. The SBT initiative re-evaluated these Scope 1 and 2 commitments in 2019 and they were considered to comply with the new SBT 1.5°C criteria. Roadmaps were rolled out within the different functions (packaging, research, sourcing, supply chain etc.) so that each one contributes to the reduction of Scope 1, 2 and 3 CO2 emissions. Specific tracking allows each of the segments to monitor its own performance.
In September 2019, L’Oréal joined the Business Ambition for 1.5°C initiative, a call to action for the climate launched by a broad coalition of companies, civil society and UN leaders. The Group has committed to zero net CO2 emissions by 2050, thereby contributing to limiting the increase in global temperature to 1.5°C above pre-industrial levels.
In June 2020, in the context of the launch of L’Oréal for the Future and in line with its SBT commitment, the Group set out its roadmap for 2030. L’Oréal is committed to a reduction, compared with 2016, of 25% per finished product in the emissions associated with the product use phase, a 50% reduction in the direct emissions of its strategic suppliers and a 50% reduction per finished product in the emissions associated with product transportation. In 2023, its total emissions, including self-identified emissions in the indirect use phase, increased by 0.8% compared to 2016.
According to the revised requirements of the Science Based Targets initiative (SBTi) Net-Zero standard, in October 2023 the Group re-submitted its new 2030 and 2050 decarbonisation pathway. On the date the Board of Directors approved the Management Report, L’Oréal was awaiting the SBTi’s validation of this new pathway. This will be published in detail in the 2024 Universal Registration Document.
L’Oréal works closely on the decarbonisation of all areas of its greenhouse gas emission footprint. Continuing its initial advances, and recognising the urgency of efforts to combat climate change and the importance of limiting the increase in global temperature to 1.5° C, the Group has made a new Net-Zero commitment covering mandatory emissions for Scopes 1, 2 and 3 (i.e. excluding the indirect use phase of its products, in order to focus on the sources of emissions closest to its direct control). To reaffirm its commitment to climate action, the Group intends to reduce Scope 1, 2 and 3 emissions by 90% by 2050. Residual emissions will be fully offset by this date. Its decarbonisation plan covers actions throughout its value chain. Its short-term target concerns the decarbonisation of Scopes 1 & 2 and key categories in Scope 3: goods and services purchased by the Group, business travel and downstream transport. As part of the SBTi submission, the work was done to update the reference year (2019) which aligns with the reference year for its other sustainability targets as part of its L’Oréal for the Future programme. Its new series of objectives are as follows:
Packaging: Packaging represents a significant part of the GHG footprint of cosmetic products. Reducing this footprint is therefore a key objective in L’Oréal’s decarbonisation process. In recent years, the Group has been working to reduce the intensity of its packaging, by optimising it (for example, developing options for refilling, reuse, weight reduction, size increase) along with increasing the proportion of recycled content. The 2030 decarbonisation plan for the Group’s packaging will revolve around five main priorities:
Formulas: L’Oréal has been working on the environmental impact of its cosmetic products since 1995, when the Group acquired its first environmental research laboratory to assess and reduce the environmental footprint of its formulas. Right from the design stage, raw materials used in the formulation of products are evaluated as part of a strict ingredient selection process.
In recent years, L’Oréal has focussed its decarbonisation on removing and changing ingredients, as part of its worldwide target for 95% of ingredients in formulas to be biobased, derived from abundant minerals or from circular processes.
