2021 UNIVERSAL REGISTRATION DOCUMENT

4. L’Oréal’s social, environmental and societal responsibility

POLICY INDICATORS AND PRINCIPAL RESULTS

An ambitious EHS policy shared by all

  • a worldwide organisation and a unique reference manual
  • trainings in EHS policy and practices: 13,459 training actions worldwide
  • a worldwide audit programme: 39 EHS audits
  • a continuous improvement process: 34 ISO 14001 certifications, 23 ISO 50001 certifications, 34 ISO 45001 certifications (factory scope)
  • a process of systematic integration of new sites

Managing risks and controlling the impact of sites on their environment

  • an environmental analysis conducted on a regular basis and whenever a significant change occurs
  • consideration of biodiversity and soil use in the design or operation of sites
  • monitoring of surface water: no accidental spill
  • monitoring of industrial wastewater: quality index for wastewater after treatment (0.33g of COD/FP)☑
  • monitoring of air emissions, excluding greenhouse gases: SO2 0.3t; VOC 156t; ozone-depleting substances 1.1t ☑
  • monitoring of noise pollution

Fighting climate change on operated sites

  • reducing greenhouse gas emissions (Scopes 1 and 2, according to the GHG Protocol): -35% for industrial sites (vs 2019); -77% for administrative sites and research centres (vs.2019)
  • Scopes 1 and 2 CO2 emitted by sites; 100 “carbon-neutral” sites at the end of 2021☑
  • reducing energy consumption: total energy consumption of sites: 783,211 MWh ☑ for industrial site sand 170,582 MWh for administrative sites and research centres
  • increasing renewable energy use: part of renewable energy consumed by sites: 80% for industrial sites; 82% for administrative sites and research centres
  • reducing Group emissions from product transport (Scope 3 as per the GHG Protocol): CO2 emitted by transport: +12% (tCO2eq./unit sold vs 2016)
  • preserving water resources: total water withdrawal of sites:  -5% for industrial sites (in litres per finished product vs 2019); +36% for administrative sites and research centres (in litres per 100 hours worked vs 2019); 6 “Water loop Factories” at the end of 2021 ☑
  • preserving biodiversity: 80 biodiversity inventories carried out
  • reducing waste and preserving material resources: total generation of transportable waste of sites; -1% for industrial sites (in grams per finished product vs. 2019); +55% for administrative sites and research centres (in kg per 100 hours worked vs. 2019); recovery index: 97% for industrial sites ☑; 92% for administrative sites and research centres; material recovery index: 59% for industrial sites ☑; 48% for administrative sites and research centres

Involving suppliers in the Group’s transformation

  • 82% of the direct and indirect strategic suppliers have completed a self-assessment of their sustainable development policy with the support of L’Oréal Group.
  • encouraging strategic suppliers to reduce their greenhouse gas emissions: 565 suppliers participated in the CDP supply chain, representing 87% of the expenditures made for direct suppliers
  • engaging strategic suppliers: 1,236 social audits were conducted in 2021 ☑
  • 767 suppliers completed an assessment by Ecovadis of their social, environmental and ethical policies.
  • 89,093 people gained access to work through the Solidarity Sourcing programme

Sustainability: from product design to end consumer

  • 96% of the Group’s products are eco-designed
  • 60% of our ingredients in formulas are from biobased sources, derived from abundant minerals or from circular processes
  • Zero Deforestation” commitment: 100% of purchases of palm oil and of palm oil and palm kernel derivatives have been certified as sustainable according to the RSPO criteria (1)
  • 39% of the Group’s plastic packaging is refillable, reusable, recyclable or compostable.
  • 91% of the advertising displays at points of sale are eco-designed
  • number of people who have benefitted from the commitment of our brands: 985,089

Meeting the most demanding standards

  • GHG assessment, an annual exercise: Scopes 1, 2 and 3: 12,526 thousand tonnes of CO2 equivalent
  • Science-Based Targets commitment
  • UN Global Compact Pledge: “Business Ambition for 1.5 °C
  • adapting the model to the climate emergency: alignment of the Group with the TCFD principles
  • alignment with the European Taxonomy, the priority target of which is the sectors with the largest environmental footprint, in which L’Oréal is not included

☑ The Statutory Auditors have expressed reasonable assurance about this indicator.

(1) Roundtable on Sustainable Palm Oil.