2021 UNIVERSAL REGISTRATION DOCUMENT

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

Carbon Neutrality: see section 4.3.1.1.3 “Fighting climate change on operated sites” of this document. The Vichy and La Roche Posay sites are part of a unique legal entity (CAP) but are recognised as two Group factories, including in the recognition of sites that have achieved carbon neutrality.

In 2021, an R134a leak of 171 kg, corresponding to 222 tonnes of CO2 equivalent, occurred at the North Little Rock distribution centre following the installation of new equipment. Investigations were carried out with the supplier of this equipment, which accepted responsibility for non-conformity of the delivered equipment, which was defective by design. The supplier replaced this equipment and no further leaks were recorded at this site in 2021. L’Oréal decided to consider this case as an exception to the rule of carbon neutrality and to maintain this status in 2021 for the North Little Rock distribution centre.

Wastewater: For industrial sites, the Chemical Oxygen Demand (COD) covers the volumes of wastewater leaving the site, whether or not they have been treated on the site.

Waterloop: see the Waterloop Factory concept in section 4.3.1.1.4 “Preserving the water resource on operated sites” of this document. Exceptions to the definition of Waterloop status maybe authorised if they are approved by the Operations Department: these exceptions are related to regulatory constraints (e.g. requirements of the Food and Drug Administration) or Group quality requirements.

Biodiversity: biodiversity inventories that describe the actual situation of the sites in terms of species and habitats present in the zone studied must be carried out by a certified organisation at least every three years with specific interim follow-ups.

Waste: L’Oréal includes everything in its transportable waste that comes out of a factory or a distribution centre and which is not a finished or semi-finished product (the following examples are included for a factory: raw material packaging or filling and packing components, sludge from wastewater treatment plants, broken pallets, etc.).

In order to improve the system of waste performance monitoring and exhaustively record the waste generated by the use of returnable packaging, a system of recording returnable packaging at source was put in place in 2014. L’Oréal thus records the weight of its returnable packaging at source in transportable waste, with each of the sites being responsible for maximising the number of rotations. The recording of the weight of returnable packaging at source is a measure intended to encourage rotation of this returnable packaging and contributes, through its reuse, to increasing its useful life.

Sites that no longer send any waste for destruction or to landfill are considered to have attained a 100% recovery rate.

The material recovery index corresponds to the quantity of waste, reused or recycled, divided by the total amount of waste generated, excluding returnable packaging at source, including the returnable packaging in rotation, excluding waste sent to landfill due to regulatory obligations.

The recovery index corresponds to the quantity of waste recovered, whether material or energy, divided by the total amount of waste generated excluding returnable packaging at source, including returnable packaging in rotation, excluding waste sent to landfill due to regulatory obligations.

To obtain a more accurate understanding of the recovery and material recovery indices, these indicators are calculated excluding the transport pallets that would otherwise represent a significant share of the returnable packaging in rotation.

Since 2021, waste generation no longer includes the sludge from the wastewater treatment plans at the Group’s sites.

Energy: the energy produced by the heat pumps that comes from geothermy is no longer counted in the Group’s total energy consumption; the energy necessary for the operation of this equipment is, however, included in the Group’s energy consumption.

4.5.1.3.3. Data

The collection of data for the defined scope uses the following method: environmental data are collected using the dedicated Intranet-based site reporting system, available in all countries where L’Oréal has a subsidiary. The required data are reported every month by the local managers.

When the data are compiled, each site or zone must validate the accuracy of all the data provided.

A process of continuous improvement of these systems has been put in place. They are reviewed each year by the Statutory Auditors and modified taking into account their recommendations and monitoring objectives for subsequent years: updating the indicators to be monitored, improving their definition and the communication, monitoring and control process.

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.

4.5.2. L’Oréal for the Future data

4.5.2.1. Transforming the Group’s activities
Reduction of greenhouse gas emissions from the transport of finished products

The scope considered includes the transport of the Group’s finished and promotional products from its production sites to the first point of delivery to its customers. Deliveries made directly to its consumers are excluded.

The period considered is 12 months, between 1 November of year n-1 and 31 October of year n. The calculation methodology employed uses greenhouse gas emissions factors (in grams of CO2 equivalent per ton of merchandise transported and per km travelled), which depend on the mode of transport and the type of energy used.

These were updated in 2021 by the Quantis company considering best practice with regard to current technological knowledge.