Beyond 2030: Beyond 2030, to fulfil its Net Zero commitment, the Group must have reduced its greenhouse gas emissions for Scopes 1, 2 and 3 by at least 90% in absolute value by 2050, compared to 2019. L’Oréal plans to offset its residual emissions by eliminating equivalent quantities of carbon in accordance with SBTi “Corporate Net Zero Standard”.
The Group intends to capitalise on the solid foundations in place by 2030, which will be strengthened by additional decarbonisation actions. Beyond 2030, the Group focuses on technological progress (and more favourable policies) to expand the range of decarbonisation solutions and make them more profitable to apply on a large scale. Its decarbonisation drivers beyond 2030, which will be detailed according to the speed of technological progress and low carbon emission solutions, may include:
The realisation of its “Net Zero” ambition will depend on the broader transformation of the energy system in all countries where the Group operates and the capacity of its suppliers and partners in the value chain to evolve at the same speed and with the same determination. L’Oréal cannot succeed alone and must be able to rely on a favourable political environment. The Group will continue to actively engage with its industry and political decision-makers to promote a broader transition towards a “Net Zero” economy.
Offsetting: the Group will prioritise reducing emissions in its value chain in its trajectory towards “Net Zero”. In addition to its activities to reduce its carbon intensity, L’Oréal plans to offset its residual emissions through carbon capture, increasing gradually to full capture by 2050 at the latest.
In December 2023, L’Oréal published its transition plan on its website https://www.loreal.com/en/ (“Commitments”).
Conscious of the climate emergency, L’Oréal hopes to transition to an innovative low-carbon company model and will make increasing contributions to fight climate change.
The acceleration of the environmental and social challenges requires a more radical transformation. Since 2015, L’Oréal has been one of the 100 leading companies to join the SBT initiative by aligning its path to decarbonisation with climate science. In June 2020, L’Oréal announced its new L’Oréal for the Future programme. It includes a new set of very ambitious objectives over the entire value chain for 2030: efforts to combat climate change, preservation of water resources, forestry and biodiversity.
In 2020, L’Oréal publicly committed to adopt the recommendations of the TCFD. The Group committed to incorporate climate issues in their strategy and to provide consistent, reliable and clear information to allow investors to include climate-related financial risks in their decisions.
Along with this dynamic move towards a low-carbon transition, L’Oréal intends to fully manage the risks and opportunities related to climate change, anticipate their effects and ensure its resilience. L’Oréal is adapting its business model, governance and decision-making processes, research and Operations in respect of its values and purpose: “Create the beauty that moves the world.”
Every year, the L’Oréal Board of Directors determines the Group’s strategic orientations, which integrate the challenges, risks and opportunities of climate change and, more generally, the issues of sustainability (see subsections 2.3.2 and 2.3.4).
The Chief Corporate Responsibility Officer, who is a member of the Executive Committee, reports directly to the Chief Executive Officer. She reports on the Group’s activities every year to the Board of Directors or to the Strategy and Sustainability Committee.
The Chief Corporate Responsibility Officer is responsible for defining and implementing the sustainability strategy. Her tasks include:
The mission of the Sustainable Finance Department, created in 2020, is to integrate the climate change-related environmental and social challenges from a financial standpoint. This Department, which reports to the Chief Financial Officer and the Chief Corporate Responsibility Officer, aims to develop and direct Sustainable Finance actions. This primarily involves enabling the Group to manage sustainable and financial development performance in an integrated manner and to coordinate their actions globally.
In 2022, this Department was in charge of updating the study assessing the financial impacts of climate change risks for the Group (see sections 4.1 and 4.2).
