In December 2015 at the time of the COP21, L’Oréal strengthened its objectives to accelerate the implementation of efforts to combat climate change. Since then, suppliers have been encouraged to:
At the end of 2021, the suppliers meeting this commitment represented 77% of expenditures on direct purchases. The average score of these suppliers is “B-”, the best score since the start of the programme.
L’Oréal continues to be recognised by the CDP as one of the companies most committed to reducing greenhouse gas emissions. The majority of the Group’s suppliers who are partners of the CDP testifies to this fact. This growing commitment results in particular from the strong commitment of L’Oréal’s Purchasing and Environmental teams who transmit results with comments and opportunities for improvement to the suppliers who participated. In 2021 these teams:
The CDP Supply Chain assessment is at the heart of the discussions during annual business reviews, but also throughout the year, in the context of our interactions with suppliers.
L’Oréal is committed to a target of Zero Deforestation to ensure the traceability of products linked to deforestation (palm oil and derivatives, paper, soya, replanting projects, etc.) and has also participated in CDP Forest since 2012.
With the new CDP Forest programme devoted to the Supply Chain which was launched in 2018, L’Oréal has encouraged its 201 main suppliers of paper, palm oil and soya to participate in the CDP Supply Chain. At the end of 2021, 124 of the selected suppliers had participated in this third year. Suppliers that reported and implemented a zero deforestation policy and related initiatives represented 25% of expenditure in respect of all selected suppliers (raw materials, packaging components, subcontracting and electronic devices).
Their average score was B.
As part of its L’Oréal for the Future programme, the Group is committed to supporting its strategic suppliers to put in place plans to reduce their greenhouse gas emissions by 50% between 2016 and 2030 (Scopes 1 and 2, in tonnes).
In 2021, the Group set out the methodology and the fundamental requirements needed to engage suppliers based on their emissions contributions and to manage their emissions performance with each of them. This emissions management is based on the volume of emissions reported in the responses to the CDP questionnaires for those taking part in the programme, or based on available and verified data.
For each of these suppliers, an emissions reduction plan will be shared depending on the commitments they have already made (for example, suppliers seriously committed to the Science-Based Targets initiative).
In co-operation with the suppliers in question, an action plan will be drawn up and monitored, highlighting the decarbonisation drivers that are suited to their business and their specific circumstances.
As part of the new sustainability programme, L’Oréal is committed to supporting its strategic suppliers to manage their water sustainably.
The Group wants to ensure that each of its strategic suppliers implements a sustainable water management plan and takes into account, in terms of its industrial water consumption and wastewater treatment, the condition of the drainage basin in which it operates.
As part of the Sharing Beauty With All programme, L’Oréal has undertaken to reduce its water footprint, joining the Water Disclosure Project, an initiative aimed at measuring and reducing suppliers’ water footprints, as soon as it was launched in 2013.
In 2021, for the seventh edition of the Water Disclosure Project Supply Chain programme, L’Oréal selected 333 of its suppliers, mainly of raw materials, filling and packing components and subcontracting on the following three criteria: technology consuming particularly large amounts of water, location of at least one production site in a hydric‑stress area and the size of L’Oréal’s purchase volumes. 221 of them agreed to take part in the programme and will be given an individual results sheet showing the comments of the Group’s environmental experts, which will enable them to identify the key points for progress. L’Oréal also encourages these suppliers to measure, report and set water consumption reduction targets for each of their production sites and to deploy a water-related risk assessment and management system.
At the end of 2021, suppliers fulfilling this commitment represented 61% of the expenses incurred on all suppliers, raw materials, filling and packing components, subcontracting and electronic devices selected. Their average score was B.
