2021 UNIVERSAL REGISTRATION DOCUMENT

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

4.4. L’Oréal for the Future: 2021 results

4.4.L’ORÉAL FOR THE FUTURE: 2021 RESULTS

The L’Oréal for the Future programme marks the launch of a new phase of L’Oréal’s sustainable development approach, with the intention of building on the Group’s earlier achievements to accelerate its transformation towards an increasingly sustainable business model. 2021 is the first reporting year for the programme.

Transforming our business

■ Results 2021 ■ Targets

	By 2025, all our sites will achieve carbon neutrality by improving energy efficiency and using 100% renewable energy ^▲. By 2030, we will innovate to enable our consumers to reduce their greenhouse gas emissions resulting from the use of our products by 25% compared to 2016, on average and per finished product⁽¹⁾. By 2030, we will reduce by 50% on average and per finished product, the greenhouse gas emissions linked to the transport of our products, compared to 2016^▲. By 2030, our strategic suppliers will reduce their direct emissions (scopes 1 and 2) by 50% in absolute terms, compared to 2016.	The Group will report on this indicator in 2022 as the methodology was defined in 2021.
	By 2030, we will evaluate all formulas thanks to our environmental test platform to guarantee they are respectful of all aquatic ecosystems, whether continental or coastal. By 2030, we will innovate to enable our consumers to reduce by 25%, on average and per finished product, the water consumption linked to the use of our products, compared to 2016⁽²⁾. By 2030, 100% of the water used in our industrial processes will be recycled and reused in a loop^▲(3). By 2030, all our strategic suppliers will use water sustainably in the areas where they operate.	The Group will report on this indicator in 2022 as the methodology was defined in 2021. The Group will report on this indicator in 2022 as the methodology was defined in 2021.
	By 2030, 100% of the biobased ingredients for formulas and packaging materials will be traceable and will come from sustainable sources, none of them will be linked to deforestation ^▲(4). By 2030, the Group will hold flat the total land occupancy vital to the sourcing of our ingredients, compared to 2019. By 2030, 100% of our industrial sites and all our operated buildings will have a positive impact on biodiversity compared to 2019.	The Group will report on this indicator in 2022 as the methodology was defined in 2021. The Group will report on this indicator in 2022 as the methodology was defined in 2021.

By 2025, all our sites will achieve carbon neutrality by improving energy efficiency and using 100% renewable energy ^▲.

By 2030, we will innovate to enable our consumers to reduce their greenhouse gas emissions resulting from the use of our products by 25% compared to 2016, on average and per finished product⁽¹⁾.

By 2030, we will reduce by 50% on average and per finished product, the greenhouse gas emissions linked to the transport of our products, compared to 2016^▲.

By 2030, our strategic suppliers will reduce their direct emissions (scopes 1 and 2) by 50% in absolute terms, compared to 2016.

Target 2025: 100%. Target achieved in 2021: 58%, Target reached in 2020: 43%

Target 2030: -25% Target achieved in 2021: -12% Target reached in 2020: -12%

Target 2030: -50% Target achieved in 2021: +12% Target reached in 2020: +17%

The Group will report on this indicator in 2022 as the methodology was defined in 2021.

By 2030, we will evaluate all formulas thanks to our environmental test platform to guarantee they are respectful of all aquatic ecosystems, whether continental or coastal.

By 2030, we will innovate to enable our consumers to reduce by 25%, on average and per finished product, the water consumption linked to the use of our products, compared to 2016⁽²⁾.

By 2030, 100% of the water used in our industrial processes will be recycled and reused in a loop^▲(3).

By 2030, all our strategic suppliers will use water sustainably in the areas where they operate.

The Group will report on this indicator in 2022 as the methodology was defined in 2021.

Target 2030: 100% Target achieved in 2021: 15% Target reached in 2020: 12%

The Group will report on this indicator in 2022 as the methodology was defined in 2021.

By 2030, 100% of the biobased ingredients for formulas and packaging materials will be traceable and will come from sustainable sources, none of them will be linked to deforestation ^▲(4).

By 2030, the Group will hold flat the total land occupancy vital to the sourcing of our ingredients, compared to 2019.

By 2030, 100% of our industrial sites and all our operated buildings will have a positive impact on biodiversity compared to 2019.

Target 2030: 100% Target achieved in 2021 : 94%(The ingredients of biobased formulas are traceable and come from sustainable sources.), Target reached in: 91%

The Group will report on this indicator in 2022 as the methodology was defined in 2021.

▲ These indicators are used to assess the performance of L’Oréal’s Chief Executive Officer – see section 2.4. "Remuneration of directors and corporate officers" of this document.

(1) Unit used: TCO₂eq./kg of formulas sold.

(2) Unit used: L/Kg of formulas sold.

(3) Waterloop factories.

(4) The ingredients of biobased formulas are traceable and come from sustainable sources.