To reach its 2030 target, L’Oréal will prioritise the decarbonisation of raw materials in four main areas:
- reformulating products abandoning ingredients that come from petrochemicals in favour of natural ingredients and replacing ingredients with high intensity carbon emissions;
- studying ways of reducing the impact linked to gases found in the aerosols in its portfolio, in particular gases with strong global warning potential (either by replacing them with other propellants, or changing the format of the products);
- reducing the impact of palm and soya derivatives used in its products by taking action against deforestation, and by encouraging its upstream suppliers to adopt sustainable and regenerative agricultural practices;
- working with its suppliers on the supply of raw materials with low carbon impact, on the energy efficiency of their own production and the use of renewable energy where possible.
Digital marketing: The carbon footprint of L’Oréal’s digital marketing comes mainly from emissions linked to the production and transmission of its advertising content.
The Group has done a great deal of work to measure impacts relating to content production and digital media activation, and prioritises the integration of the footprint of its paid influencers.
To reach its 2030 target, the Group will step up its efforts to reduce impact, in particular:
- producing more responsible advertising content, reducing emissions linked to travel and filming locations;
- increasing the utilisation rate of the content produced;
- reducing the impact of the transmission of its advertising content by using optimisation drivers in digital media, such as adjusting the resolution of creations according to the type of device on which they are broadcast, the asset length for each platform, and media planning;
- more broadly, working with its suppliers (including its influencers) towards reducing their emissions.
POS material and advertising components: As part of its L’Oréal for the Future programme, the Group is working to improve the environmental footprint of its advertising materials for points of sale, by gradually increasing the proportion of material that complies with eco-design principles.
To reach its 2030 target, the main areas for decarbonisation will consist of:
- overhauling its POS, broadly applying its eco-design guidelines to lighten its creations, move to single-material content and reduce waste;
- using more recycled materials for display materials;
- continuing to reduce electricity consumption linked to permanent point of sale displays, by optimising them and benefiting from the positive impact of its retail partners’ switch to renewable sources of electricity.
Logistics: L’Oréal has long been committed to reducing the emissions generated by the transport and storage of its products. Its 2030 programme is built around the following main pillars:
- reducing air transport by prioritising local production as much as possible, by adopting multi-sourcing approaches in the Divisions and optimising planning with a shift from air freight to rail/maritime;
- rolling out our new solutions to promote as much as possible multi-modal transport (moving from road to sea, road to rail, for example)
- optimising the load factor (particularly on road freight in Europe and North America);
- using fuels with the lowest emissions (for example biogas, biofuel vehicles, SAFs or fuels with low carbon content for maritime freight, and electric vehicles and cargo bikes for the “last mile”);
- encouraging upstream and downstream suppliers to reduce their emissions from transporting products, particularly by developing pilot programmes for the adoption of battery electric vehicles for long distances.
Suppliers: The Group’s total footprint is mainly linked to the impact of business activities and its suppliers. Since 2007, the Group has involved its strategic suppliers in the process of measuring and reducing its greenhouse gas emissions by encouraging them to participate in CDP Supply Chain programme. Carrying out these works is essential to the full decarbonisation of the Group’s value chain. In future, the Group’s principal objective will be working with strategic suppliers, not only to reduce emissions linked to their Scopes 1 and 2 but also to their Scope 3. Its main areas of work are as follows:
- continuing to train and support its strategic suppliers in order to raise their awareness of climate change challenges;
- continuing to support its strategic suppliers in identifying the main decarbonisation drivers in their business sector, by studying ways to accelerate their progress and by taking measures to promote the reduction of their emissions;
- setting new expectations for its suppliers, so that they can develop their own climate transition plans, including Science Based Targets (or equivalent strategies to reduce emissions);
- boosting the transparency and monitoring of the emissions of each supplier/product in order to monitor progress and stimulate change.
Other areas of decarbonisation: L’Oréal will reduce all emissions associated with its business activity:
- emissions linked to the production of machines purchased by the Group, supporting its suppliers in the decarbonisation of their activities and by encouraging circular economy models, particularly through the refurbishment and reuse of equipment;
- the footprint linked to the construction of its property assets portfolio, particularly through leasing low-carbon certified buildings, optimising its spaces, reducing occupied areas in new buildings;
- its business travel, by implementing a stronger mobility policy.
