2021 UNIVERSAL REGISTRATION DOCUMENT

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

WATER WITHDRAWAL AT ADMINISTRATIVE SITES AND RESEARCH CENTRES

As part of the L’Oréal for the Future programme, the Group has set itself a new target for 2030: to reduce the water withdrawal of administrative sites and research centres per 100 hours worked by 30%, compared to 2019.

Total water withdrawal of the administrative sites and research centres was 253 thousand m3 in 2021, a decrease of 38% compared to 2019.

Water withdrawal is currently 753 litres per 100 hours worked for 2021, representing an increase of 36% from 2019 (an increase of 13% from 2020).

These results are primarily linked to the effects of the Covid-19 health crisis, which led to the complete or partial closure of several sites around the world resulting in a decrease in hours worked on-site of 54% compared to 2019 (a 13% decrease from 2020). This difference between the decrease in hours worked on-site and the withdrawal of water is primarily linked to the nature of activities that continued on the sites (laboratories, pilots, etc.), which are water consuming.

2016-2021: +10%, 2019-2021: +36%

(in litres per 100 hours worked)

L'OREAL POUR LE FUTUR : Target 2030 : -30%
WATER CONSUMPTION AND QUANTITATIVE WATER FOOTPRINT OF PRODUCTION SITES

Water is a resource that requires local management tailored to the watershed in which a site is located. A watershed is the land irrigated by water sources and waterways that converge towards the same point. Availability, access, and water needs may vary greatly from one watershed to another: they differ depending on the nature and intensity of human activities, and according to the natural needs of ecosystems.

In order to take into account this local aspect of water-related issues, the Group created a new indicator in 2021: the quantitative water footprint. It is calculated based on the water consumption of a site (the difference between the water withdrawal and the wastewater at the exit of the site)and the level of water stress in the watershed in which it is located.

Water stress describes the gap between the need for and the availability of water resources for a given watershed.

The quantitative water footprint is calculated only for the factories, which are the sites that account for the majority of the Group’s water withdrawal (they represent 85% of the withdrawals of all the sites operated by the Group in 2021).

In 2021, 10 of the Group’s 39 factories were located in watersheds subject to water stress, representing 26% of the Group’s factories.

Water consumption and quantitative water footprint of the Group’s factories 2021
Municipal water withdrawn (or other supplier) (m3)

Municipal water withdrawn (or other supplier) (m

3

)

2021

1,718,988

Rain water (m3)

Rain water (m

3

)

2021

92

Water withdrawn from groundwater (m3)

Water withdrawn from groundwater (m

3

)

2021

256,003

Total withdrawal (m3)

Total withdrawal (m

3

)

2021

1,975,083 ☑

Wastewater at the exit of the site (m3)

Wastewater at the exit of the site (m

3

)

2021

885,423

Water consumption (m3)

Water consumption (m

3

)

2021

1,089,660

Quantitative water footprint (m3eq)

Quantitative water footprint (m

3

eq)

2021

8,511,553 ☑

The Water Disclosure Project: a CDP initiative for transparency in information on water and water risk management across the value chain

Since 2010, L’Oréal has taken part in the Water Disclosure Project, of which it is one of the Founding Responders. This programme is aimed at encouraging companies to publish every year their water management strategy, their results and the projects they have launched to improve their performances and to reduce the risks with regard to their activities related to water consumption. It was launched by the CDP, an important, independent not-for-profit organisation that promotes transparency and environmental information reporting on several issues: climate change, water, deforestation, etc.

In 2021, L’Oréal was recognised for the sixth consecutive year as one of the world leaders for its strategy and actions in sustainable water management throughout its entire value chain, from the production of raw materials to the use of products by consumers and the end of life of products, receiving a score of “A”, which is the highest possible level of performance in the CDP ranking.

L’Oréal is also working with its Supply Chain on sustainable water management (see section 4.3.1.2.2. “Involving strategic suppliers in the Group's ambitions” of this document).

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