In the context of the first generation of Sharing Beauty with All commitments, the Group defined a number of indicators tracked to evaluate monthly, and annually the progress achieved on the targets set for 2020. As a result of the acceleration of the environmental challenges, these indicators were reassessed and completed at the time of the June 2020 launch of the new sustainability programme L’Oréal for the Future. They cover the Group’s entire value chain in the areas of greenhouse gas emissions, water, biodiversity, resources and waste, and support the goals for 2030.
More specifically, in terms of climate change, the goals announced in the context of the L’Oréal for the Future programme are aligned with the Science-Based Targets initiative that L’Oréal joined in 2015. In this context, L’Oréal is committed to reducing in 2030 greenhouse gas emissions by 25% in absolute value (tonnes of CO2 equivalent) and by 50% per finished product over its entire value chain (Scopes 1, 2 and 3), compared with 2016.
Finally, in September 2019, L’Oréal joined the United Nations Business Ambition for 1.5°C initiative and made a commitment to reach net-zero emissions of CO2 by 2050.
A GHG balance is prepared and published annually and details emissions over all the items described by the GHG Protocol.
The cross-reference table below identifies the main information of this document according to the recommendations of the Task Force on Climate-related Financial Disclosures.
| Governance | Sections of this document |
|---|---|
| 1. Supervision by the Board of Directors of climate-related risks and opportunities | 1.1., 2.3.2.1. and 4.1. |
| 2. Role of Management in the assessment and management of climate-related risks and opportunities | 3.2. and 4.1. |
| Strategy | |
| 1. Climate-related risks and opportunities identified in the short, medium and long term | 3.5. and 4.2. |
| 2. Impact of climate-related risks on the Group’s business activities, strategy and financial forecasts | 4.2. |
| 3. Resilience of the Group, taking into consideration different climate scenarios, including a scenario of 2°C or less | 1.2. and 4.3. |
| Risks and opportunities | |
| 1. Procedures to identify and assess climate-related risks | 3.5. and 4.2. |
| 2. Procedures for managing climate-related risks | 3.5. and 4.2. |
| 3. Integration of the procedures to identify, assess and manage climate-related risks within the total management of the Group’s risks | 3.2. |
| Indicators | |
| 1. Indicators used to assess climate-related risks and opportunities, in line with the Group’s strategy and risk management procedure | 4.1. and 4.3. |
| 2. Scopes 1, 2 and 3 greenhouse gas emissions and associated risks | 4.2, 4.3. and 4.5. |
| 3. Objectives used to manage climate-related risks and/or opportunities and the Group’s performance in relation to its objectives | 1.1, 2.4, 4.3 and 4.4 |
In application of European Regulation 2020/852 of 18 June 2020 (the “Taxonomy” Regulation), L’Oréal is required to publish performance indicators for the 2021 financial year highlighting the eligible share of its sales, investments and operating expenses resulting from products and/or services associated with economic activities considered sustainable within the meaning of the Regulation and the Delegated Acts covering the first two objectives of the Taxonomy: climate change mitigation and climate change adaptation.
This first assessment of the eligibility of all the Group’s consolidated activities was conducted on the basis of:
The Group has not identified any eligible sales. In fact, under the first two objectives applicable from the 2021 financial year, mitigation and adaptation of climate change, the European Commission has prioritised the business sectors that contribute significantly to greenhouse gas emissions within the European Union. L’Oréal is dedicated solely to the beauty industry; as such, its activities are not considered, within the meaning of the Taxonomy, as making a significant contribution to these initial climate targets or as a priority sector targeted by the Taxonomy. In particular, a detailed analysis of its industrial activities in the production of raw materials did not identify any production covered by the Taxonomy under the heading“Manufacture of organic basic chemicals”.
