2021 UNIVERSAL REGISTRATION DOCUMENT

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

4.3.1.4.  Meeting the most demanding standards
4.3.1.4.1. GHG assessment: an annual exercise

L’Oréal carries out an annual Greenhouse Gas assessment (GHG assessment) for all the Group’s activities, in order to measure its CO2 emissions and identify the action plans that will enable it to reduce its impact. This assessment, which has been performed since 2007, is conducted in accordance with the Greenhouse Gas Protocol (GHG Protocol) rules, the international reference method for recording GHG emissions. It makes it possible to determine the Group’s total carbon footprint in three categories – Scopes – defined above in section 4.3.1.3.1. "Eco-designed products" of this document.

In 2021, the GHG assessment of the L’Oréal Group was estimated at 12,526 thousand tonnes of CO2 equivalent.

Scopes 1 and 2 – emissions measured and reported on a monthly basis

These CO2 emissions are measured by all the Group’s sites and reported monthly.

Scopes 1 and 2 correspond to those for which the Group takes direct action via programmes to control energy consumption deployed on the sites and for the procurement of renewable energy. They are the subject of ambitious reduction targets as part of the L’Oréal for the Future programme (see section 4.4." L’Oréal for the Future: 2021 results" of this document):

  2025 TARGETS 2020 2021
Industrial sites

Industrial sites

2025 TARGETS

- 100% (vs. 2005)

Industrial sites

2020

-81%

Industrial sites

2021-87%
Administrative sites and research centres

Administrative sites and research centres

2025 TARGETS

- 100% (vs. 2016)

Administrative sites and research centres

2020

-76%

Administrative sites and research centres

2021-83%

For 2021, all these Scope 1 and 2 emissions represented 31.6 thousand tonnes☑ for the factories and distribution centres, and 6.7 thousand tonnes for the administrative sites and research centres.

Changes in the reported figures for Scopes 1 and 2 since 2014 (in thousands of tonnes of CO2 equivalent) (1)

    2014 2015 2016(2) 2017(3) 2018 2019 2020 2021
Scope 1 Scope 1

 

Industrial sites

Scope 12014

58.5

Scope 12015

55.5

Scope 12016(2)

55.5

Scope 12017(3)

49.7

Scope 12018

46.6

Scope 12019

43.6

Scope 12020

39.0

Scope 12021

25.9☑

 

 

 

Administrative sites and research

centres

 

2014

 

 

2015

 

 

2016(2)

6.5

 

2017(3)

8.0

 

2018

7.7

 

2019

6.4

 

2020

4.1

 

2021

1.8

 

 

 

Group

 

201458.5

 

201555.5

 

2016(2)62.0

 

2017(3)57.7

 

201854.3

 

201950.0

 

202043.1

 

202127.7
Scope 2 Scope 2

 

Industrial sites

Scope 22014

60.5

Scope 22015

49.6

Scope 22016(2)

25.7

Scope 22017(3)

15.9

Scope 22018

8.9

Scope 22019

8.2

Scope 22020

7.0

Scope 22021

5.7☑

 

 

 

Administrative sites and research

centres

 

2014

 

 

2015

 

 

2016(2)

26.5

 

2017(3)

25.3

 

2018

25.7

 

2019

22.1

 

2020

5.7

 

2021

4.9

 

 

 

Group

 

201460.5

 

201549.6

 

2016(2)52.2

 

2017(3)41.2

 

201834.6

 

201930.3

 

202012.6

 

202110.6
Scopes 1 + 2 Scopes 1 + 2

 

Industrial sites

Scopes 1 + 22014

118.9

Scopes 1 + 22015

105.0

Scopes 1 + 22016(2)

81.2

Scopes 1 + 22017(3)

65.7

Scopes 1 + 22018

55.5

Scopes 1 + 22019

51.8

Scopes 1 + 22020

46.0

Scopes 1 + 22021

31.6☑

 

 

 

Administrative sites and research

centres

 

2014

 

 

2015

 

 

2016(2)

32.9

 

2017(3)

33.2

 

2018

33.4

 

2019

28.5

 

2020

9.8

 

2021

6.7

 

 

 

Group

 

2014118.9

 

2015105.0

 

2016(2)114.2

 

2017(3)98.9

 

201888.9

 

201980.3

 

202055.8

 

202138.3

(1) These data present the reported figures each year in the different management reports. In rare cases, certain data already published for the preceding year may be modified when inaccuracies or errors are discovered after the end of the financial year. These data are monitored and included in the annual consistency review. They are included in the reported figures each year.

(2) As from 2016, Scopes 1 and 2 emissions of the Group:

- are calculated using the new methodology published by the GHG Protocol (“The Scope 2 Guidance”), and monitored using the Market-Based CO2 indicator, which replaces the Net CO2 indicator;

- include the emissions related to leaks of cooling gases; and

-include the emissions linked to the administrative sites and research centres.

(3) In 2017 only, Scopes 1 and 2 had been expanded with emissions estimated annually for vehicles operated under long-term leases and for branded retail stores. These emissions are not included in this table.

Scope 3 – emissions estimated annually

Scope 3 covers all other greenhouse gas emissions not directly related to the sites operated by the Group or to the processing of products in the factories but to other stages in its life cycle (procurement, transportation, use, end of life, etc.) and other impacts related to the Group’s activities (business travel, etc.). These emissions are the subject of an annual estimate according to the GHG Protocol methodology.

In 2021, work was carried out on Scope 3 of the GHG Assessment in order to improve its input data, limits and emission factors.

For 2021, L’Oréal Group’s Scope 3 is estimated at 12,488 thousand tonnes, an increase around 0.5 million tonnes compared to 2020, primarily due to the use phase of the products.

The Statutory Auditors have expressed reasonable assurance about this indicator.