Biodiversity loss due to agricultural practices (2):
Mean Species Abundance per hectare is a unit of measurement corresponding to the equivalent land surface that has lost 100% of its biodiversity. This metric is used to measure ecosystem integrity.
Biodiversity loss coefficients for land use are derived from the GLOBIO model database (providing average biodiversity loss values according to land-use type and intensity) and then refined for each plant based on a literature review (final values vary between 70% and 90% biodiversity loss depending on the plant). For infrastructure, the biodiversity loss coefficient for land use is also taken from the GLOBIO models (the value for urbanised areas, i.e. 95% biodiversity loss, is identical for each plant).
Focus on the significance of biodiversity in the ecosystem in question (3):
The significance of biodiversity in the production area is assessed using the Species Threat Abatement and Recovery (STAR) metric. STAR assesses the conservation potential in terms of reducing the risk of species extinction in an area of special interest either by threat reduction or habitat restoration. The metric was developed based on data from the IUCN Red List of Threatened Species (STAR mapping in December 2022 is based on the 2019.3 version of the IUCN Red List; STAR currently includes mammals, birds and amphibians). The 80th percentile was used to represent the presence of high values while avoiding overestimation by taking into account the maximum value only. Each region or country is then assigned to a risk category ranging from very low to very high. As the STAR distribution is highly skewed towards low values (97% of STAR values worldwide are in the very low and low categories), the use of the mean or median is not appropriate. Each region or country is then assigned to a risk category ranging from very low to very high by taking the higher of the following two values: the STAR 80th percentile for threat reduction or the STAR 80th percentile for habitat restoration. As the distribution of STAR values is very uneven and skewed towards low and very low values, any region or country categorised as medium, high or very high risk represents an important area for biodiversity in which there is a significant risk of impacting rich and vulnerable biodiversity.
Data: environmental data are collected using the dedicated Intranet-based site reporting system, available in all countries in which there is a L’Oréal subsidiary. The required data are reported every month by the local managers. When the data are compiled, each Site or Zone must validate the accuracy of all the data provided. A process of continuous improvement of these systems has been put in place and they are reviewed each year by the Statutory Auditors. They are modified taking into account their recommendations and monitoring objectives for subsequent years, such as updating the indicators to be monitored, improving their definition, and the communication, monitoring and control processes. In rare cases, certain data already published for the preceding year may be modified when inaccuracies or errors are discovered after the end of the financial year. These data are monitored and included in the annual consistency review. They are included in the reported figures each year. The data can also be amended in the case of variations in methodology. This is particularly the case in 2023 in the calculation of CO2 emissions for Scopes 1 and 2. In fact, in 2023, L’Oréal decided to stop using renewable attributes produced in excess on one site to cover the non-renewable energy consumption of another site if the latter is outside “Market boundary” criteria (CDP Technical Note: Accounting of Scope 2 emissions).
Reduction of greenhouse gas emissions from the transport of finished products: the scope considered includes the transportation of the Group’s finished and promotional products from its production sites to the first point of delivery to the customer. Deliveries made directly to consumers are excluded. The period considered is 12 months, between 1 November of year n-1 and 31 October of year n. Calculations are made using the EcoTransIT World platform. The methodology used is provided by independent scientific institutes (IFEU, INFRAS and Fraunhofer IML) and complies with ISO14083 and GLEC standards. The exact methodology is available on the EcoTransIT World website.
Respecting biodiversity with traceable, bio-based ingredients from sustainable sources: the calculation of the percentage of biobased ingredients for traced formulas from sustainable sources is based on the following definitions: a raw material is considered to be bio-based when more than 50% of the carbons it contains are of plant origin (according to ISO 16128); an ingredient is considered traced when the following three pieces of information are available: the botanical species, the country in which it grows or is collected, the growing or collection method; an ingredient is considered to be sustainably sourced when, on the basis of the elements of traceability, it has been analysed for environmental and social risk (SCAN Index). If no risk has been identified, the raw material is considered to be sustainably sourced. If risks have been identified, an adapted action plan must have been put in place with this supplier. This action plan must have been verified by an independent third party. Such verification may take the form of an audit, certification, or a field project put in place with the support of an NGO. This method ensures compliance with the basic and progressive criteria of the sustainable sourcing policy for the Group’s raw materials. The calculation of this indicator is based on actual purchases for the period from January to November 2023, excluding volumes of ingredients used for fragrance compositions (<1%), subcontracting volumes (0.8%) as well as volumes from factories (India, Argentina and Kenya) not linked to the IDG management system (3.3%).
Reduction of water consumption related to the use of the products: the scope of consolidation refers to the data on the products sold over a period of 12 months from 1 January to 31 December of 2023.
The calculation of this indicator is based on the average water volume necessary per usage dose for the use of the Group’s products by consumers. These data are provided by the IDG management software, which is used for the economic results. It includes all global sales of finished products, both rinse-off and leave-in. The only exception is samples, which are not products sold and are therefore not taken into account.
