2021 UNIVERSAL REGISTRATION DOCUMENT

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

Indicators

1.  Percentage of created or renovated products had an improved environmental profile due to improved packaging

SPOT: The proportion of new or updated products whose environmental profile has been improved are reported annually; this is calculated by the SPOT tool. For a new product, improvement is measured in relation to an average of the brand’s existing and comparable products; for an updated product, improvement is measured and compared to the earlier product.

2.  Percentage of labelled paper and cardboard

The data on the percentage of FSC labelled paper and cardboard (sourced from wood derivatives) comes from tracking the supplies of all suppliers: the Group’s sourcing entities demand that each of their suppliers complete the information on tonnage and provide the related certifications. The data are aggregated by the central sourcing department.

3.  Reduction in intensity of the quantity of packaging used for the Group’s products

The reduction in packaging intensity is measured in packaging weight divided by the weight of the formula. The unit is g/g and scope is all the packaging leaving a factory (primary, secondary or tertiary). The reduction in intensity is calculated from specification systems for filling, packing and production articles. The data are aggregated at the global level by the data management teams.

4.  Percentage of plastic packaging recycled or from biobased sources

The tonnages of plastic materials recycled or from biobased sources used in the products come from specification systems for the filling and packing articles and the production of finished products, and are aggregated at the global level by the data management teams. The portion of recycled plastic is an actual rate of recycled material in the packaging: it does not come from a mass balance certification system. The scope of this indicator is all packaging leaving the factory (primary, secondary and tertiary).

5.  Percentage of plastic packaging that is refillable, reusable, recyclable or compostable

The definition of refillable, reusable, recyclable or compostable packaging follows the definitions of the Ellen Mc Arthur Foundation described in the document “New Plastics Economy Global Commitment – Reporting Guidelines April 2021”. These definitions are taken account of in the Group’s data management systems, which allows identification and counting of the quantities.

Data

The following method is used to collect data for the defined scope: the different indicators come from product specification systems linked to the production management tools. The data are extracted and recovered by the data management teams who aggregate them globally using a centralised IT tool. It is the Sustainability entity of the Department of Packaging Operations and Development that verifies all the elements and the figures.

Eco-designed advertising displays at points of sale

The scope of consolidation for POS eco-design covers POS purchasing expenses (display, advertising elements at the points of sale) in the countries in which a L’Oréal subsidiary that has a Sourcing team is established. Every year the Sourcing teams in question report the POS expense and the % of conformity with eco-design “Must Haves”.

The Country data are collected using the intranet systems dedicated to reporting by “Reporting 21” country, which can be accessed by each Sourcing team in the countries. Each Sourcing team is responsible for compiling the data of the team’s Country, and must validate the accuracy of the data communicated. The data are also validated by the Sourcing Zones. The indicator is consolidated at the Group level by the Global Retail Sourcing teams. In 2021, 53 Entities (Country or Hub) participated in the reporting.

The Sourcing teams and suppliers concerned are trained in eco-design, including the associated data collection process. The process is defined and explained every year to the teams responsible. The percentage of eco-designed POS is calculated in accordance with a self-declared statement from the suppliers trained in eco-design. It is reviewed by the Statutory Auditors whose recommendations are used for continuous improvement of the systems.

Eco-design of owned stores and points of sale
Scope of consolidation

The scope considered includes the Group’s new and renovated free-standing stores over a global scope. The period considered is 12 months, from 1 January to 31 December of the current year. A store is considered ecodesigned if the ecodesign rate exceeds 100% or if the store is LEED Gold certified.

The ecodesign rate of the free-standing stores is calculated on the basis of the process tracking and the documentation of the Sustainable Retail Box check list and according to a self-declaration of the conformity of said points of sale, unless the store holds an external LEED certification.

Data

At the time the data are compiled, each country team is responsible for verifying the accuracy of all data communicated to the teams of each of the geographic zones. Ecodesign is the subject of training for the teams monitoring the process and the documentation of the "Sustainable Retail Box” checklist.

A process of continuous improvement of these systems has been put in place. They are reviewed every year by the Statutory Auditors and modified by taking into consideration their recommendations and follow-up objectives for the following years.