Eco-designed products – SPOT: eco-designed products are new or updated products that have an improved environmental profile. The indicator covers the Group’s scope and concerns new products or products updated by design centres that were manufactured by the Group’s factories or by subcontractors. They had an availability date at the distribution centre that was scheduled for between 1 January and 31 December 2022. The analysis covers all the Group’s brands, excluding products not sold (i.e. samples, testers, gifts, products made at the point of sale, temporary activations, promotional products and additional packaging relating to “Travel Retail”), newly acquired brands that are not yet fully integrated into the Group’s product design ecosystem (Mugler, Logocos, Thayers, Takami, Youth to the people, 3CE and Skin better science).
The indicator covers products with formulas/packaging that have been developed and produced for the first time, products with formulas/packaging that were updated in 2023 (i.e. underwent a major change in packaging or formula requiring a change in the commercial code) or products that have been improved in terms of the social dimension.
Scope of consolidation: the scope of consolidation corresponds to the 12 months of the year. It covers the cosmetic products manufactured in the L’Oréal factories and the finished products purchased from subcontractors.
The scope covers only the L’Oréal factories operating under the SAP WISE system, which permits the feedback of information via the IDG information system. To date, there are only four Group factories that are outside the scope: the factories in Pune and Badi in India, the Magdal factory in Israel and the Nairobi factory in Kenya.
The indicator: the reporting covers 99.4% of production from L’Oréal factories. This indicator is evaluated for all the Group’s active formulas and is calculated on the basis of the data on production volume (this is a calculation at the level of the total portfolio of ingredients used by the Group, and not by formula). The data are processed, including consistency checks and corrections of anomalies if necessary.
Data: calculation of this indicator relies solely on the dry material, excluding the “water” used in certain formulations. There are three elements that are calculated independently. The “biobased” portion represents the percentage of raw materials of renewable origin in L’Oréal’s portfolio according to the definition of ISO 16128. The “abundant mineral” portion refers to the percentage of ingredients of mineral origin, the abundance of which allows sustainable use and the inorganic ingredients, i.e. non-mineral and not containing any carbon atoms (e.g. oxygenated water), obtained by green processes. The definition of abundant minerals has been established by the Raw Materials Department (Département des matières premières – DIMP) with the assistance of an expert consultant from the French Bureau of Geological and Mining Research (Bureau de recherches géologiques et minières – BRGM). An initial list was available at the start of 2023 that covers 40% in volume of the minerals used by the Group, i.e. 463 raw materials identified. This list is subject to change and will be updated over the coming years. Finally, the “circular process” portion is still being established by the Raw Materials Department (DIMP) with the assistance of experts and will be made available soon.
Scope of consolidation: the packaging data cover all the finished products leaving the factories, with the exception of certain finished products for which the data are not yet linked to the central information systems. This is the case for the products from the Nairobi (Kenya), Lahore (Pakistan) and Syntaric (Argentina) factories(1)Which represent 1.25% of the Group’s finished products., for certain subcontracted products from recent acquisitions and for the packaging specific to Travel Retail. This packaging data excludes POS materials and consumables managed by factories for transporting palettes.
Each year, SPOT calculates the proportion of new or updated products whose environmental profile has been improved. For a new product, improvement is measured in relation to an average of the brand’s existing and comparable products. For an updated product, improvement is measured and compared to the previous version of the product. SPOT tool separates the packaging, formula and manufacturing footprints which allows to identify product with improved packaging footprint.
The data on the percentage of FSC-certified paper and cardboard (sourced from wood derivatives) comes from tracking the supplies of all suppliers. The Group’s sourcing entities demand that each of their suppliers complete the information on tonnage and provide the related certifications. The data are aggregated by the central sourcing department.
The reduction in packaging intensity is measured in packaging weight divided by the weight of the formula. The unit is g/g. The scope is all the packaging leaving a factory (primary, secondary or tertiary), excluding the factories in Pune and Badi (India). The reduction in intensity is calculated from specification systems for filling, packaging and production articles. The data are aggregated at global level by the data management teams.
The tonnages of plastic materials coming from recycled or from biobased sources used in the products come from specification systems for the filling and packing components and the production of finished products. The data are aggregated at global level by the data management teams. The portion of recycled plastic is an actual rate of recycled material in the packaging: it does not come from a mass balance certification system. The scope of this indicator is all the plastic from all our primary, secondary and tertiary packaging leaving the factory.
The definitions of refillable, reusable, recyclable or compostable packaging follow the definitions of the Ellen Mc Arthur Foundation described in the document “2023 Global Commitment Reporting Guidelines”. These definitions are taken into account in the Group’s data management systems, which allow the respective quantities to be identified and counted. The scope of this indicator is all primary and secondary plastic packaging, i.e. any packaging containing more than 50% plastic by weight. Recyclability is assessed on the basis of disruptors of recyclability, linked to the materials and decorations used, and can change annually in line with changes to regulations.
Data: the different indicators or figures come from product specification systems linked to the production management tools. The data are extracted and recovered by the Data Management teams who aggregate them globally using a centralised IT tool. The Sustainability entity of the Department of Packaging and Development verifies all the elements and the figures.
(1) Which represent 1.25% of the Group’s finished products.
