2021 UNIVERSAL REGISTRATION DOCUMENT

3. Risk factors and control environment

Environmental risks

The risks of serious damage to the environment are those associated with the consumption of resources or that could cause damage to soils, water, air and biodiversity (habitats and species) in the context of normal operation or the occurrence of an incident at a site of the Subsidiaries or Suppliers:

  • gradual or accidental pollution; and
  • pollution during the transport of hazardous materials.
Applicable rules to prevent risks of serious adverse impacts on Safety and Health in the workplace and the Environment
EHS Guidelines

The Group’s Environment, Health and Safety (EHS) policy aims to minimise the impact on the environment and guarantee the health and safety of the employees of its Subsidiaries and Suppliers, its customers and the communities in which L’Oréal carries out its activities.

For the Subsidiaries, this policy is built on an EHS management system composed of standards with stringent requirements that set the principles of L’Oréal’s EHS policy, which is all included in the EHS guidelines.

Additional Environment, Health and Safety in the workplace actions

In addition to the actions resulting from the risk analysis on the activities of the Group and the Suppliers, L’Oréal conducts actions on Environment, Health and Safety in the workplace in addition to those implemented in the context of the French law on Duty of Vigilance, which are described in Chapter 4 “L’Oréal’s Social, Environmental and Societal Responsibility” of this document.

L’Oréal’s commitment to Environment, Health and Safety in the workplace is supported at the highest level of the Company by its Chief Executive Officer who renews L’Oréal’s commitment to the United Nations Global Compact each year.

For example, this includes the following additional actions and commitments:

  • in 2015, L’Oréal was one of 100 leading companies to join the Science-Based Targets programme, an initiative of the CDP, the United Nations Global Compact, the World Resources Institute and the NGO WWF;
  • in 2018, L’Oréal became a partner of the Ellen MacArthur Foundation and, with Act4Nature, in the context of individual commitments, L’Oréal set biodiversity objectives for 2030;
  • in 2019, L’Oréal was one of the first companies to sign the Business Ambition for 1.5°C pledge of the UN Global Compact, there by committing to reach “zero net emissions” by 2050 over its entire value chain, in accordance with the1.5°C path of the IPCC; and
  • in 2020, L’Oréal became a signatory of the Task Force on Climate-related Financial Disclosures (TCFD).
(i) Additional actions intended for Sites of Subsidiaries

At its own sites, L’Oréal implements the LIFE (Life threatening Incident or Fatality Event) programme, which covers activities on all its sites that, if not controlled, could result in potentially serious injury and illness. The Group extends the ambition of moving towards “zero accidents” by ensuring the sustain ability of actions and defining post-incident emergency preparedness requirements.

Furthermore, the Sharing Beauty with All programme has helped to reduce the environmental footprint of the Group’s sites, in particular by defining and disseminating best practices regarding energy efficiency, reducing CO2 emissions, contributing to the preservation of water, biodiversity and resources, and improving waste treatment.

The new commitments made by the Group for 2030 as part of its L’Oréal for the Future programme are aimed at ensuring compatibility of the Group’s activities with a planet that has limited resources (the commitments and achievements of the programme are detailed in Chapter 4 “L’Oréal’s Social, Environmental and Societal Responsibility” of this document, specifically in section 4.4. “L’Oréal for the Future: 2021 Results”). The main environmental objectives of the programme concerning Subsidiaries are as follows:

  • Climate: reaching carbon neutrality for all Group sites by 2025, by improving energy efficiency and using 100% renewable energy. L’Oréal is also committed to halving the transport footprint of its products by 2030.
  • Water: in 2030, 100% of the water used in our industrial processes will be recycled and reused in a loop.
  • Biodiversity: by 2030, all of our operated buildings and all industrial sites will have a positive impact on biodiversity compared to 2019.
  • Natural resources: by 2030, 100% of the waste generated in our operated sites will be recycled or reused. L’Oréal is also committed to no longer send waste to landfills.

These objectives are accompanied by monthly reporting of detailed indicators used to monitor evolutions in results in each of these areas and to identify potential anomalies and incidents.

Furthermore, the Group is engaged in a process of continuous improvement of EHS performance through its operated sites in order to sustainably anchor the EHS policy: ISO 45001 for the management of employee health and safety and improvement in their working conditions; ISO 14001 for the management of environmental impacts and improvement in environmental performance; and ISO 50001 for energy management and energy performance improvement.

Moreover, “culture” audits are conducted by internal EHS specialists in order to assess the deployment level of the EHS culture with all employees at Subsidiaries: the results of these audits provide information on the level of knowledge of EHS management tools and the maturity of audited sites with regard to the safety and environment culture at all structural levels.

Detailed information on these additional actions is available in Chapter 4 “L’Oréal’s Social, Environmental and Societal Responsibility” of this document.