L’Oréal Launches “L’Oréal for the Future” Sustainability Program
June 26, 2020
On June 26th, 2020, L’Oréal launched its new sustainability program called “L’Oréal for the future.” Through this program, the Group laid down its latest set of ambitions for 2030.
Accelerating Transformation Amid Growing Challenges
In the context of growing environmental and social challenges, L’Oréal is accelerating its transformation. The Group is moving towards a model that respects planetary boundaries. It is also reinforcing its commitments to both sustainability and inclusion.
Three Key Environmental Targets for 2030
First, by 2025, all of L’Oréal’s sites will achieve carbon neutrality. They will do this by improving energy efficiency and using 100% renewable energy.
Second, by 2030, 100% of the plastics used in L’Oréal’s product packaging will come from either recycled or bio-based sources.
Third, by 2030, L’Oréal will reduce its entire greenhouse gas emissions by 50% per finished product compared to 2016.
Contributing to Social and Environmental Needs
L’Oréal is also contributing to solving the world’s challenges. The Group supports urgent social and environmental needs through an unprecedented plan launched in May 2020. Specifically, L’Oréal is allocating €150 million to address urgent social and environmental issues.
Empowering Consumers with Product Labelling
To empower its consumers to make more sustainable choices, L’Oréal has developed a Product Environmental & Social Impact Labelling mechanism. The scale runs from A to E. Independent scientific experts have endorsed the mechanism, and an independent auditor has verified it. The Group will progressively deploy this labelling for all brands and categories.
Jean-Paul Agon Comments on the New Era
“L’Oréal’s sustainable revolution is entering a new era,” said Jean-Paul Agon, Chairman and CEO of L’Oréal. “The challenges the planet is facing are unprecedented, and it is essential to accelerate our efforts to preserve a safe operating space for humanity. We do so in our own business operations and in our contribution to society at large. We know that the biggest challenges remain to come, and L’Oréal will stay faithful to its ambition: operate within the limits of the planet.”
Transforming Business to Respect Planetary Boundaries
What Are Planetary Boundaries?
“Planetary boundaries” are limits. If we cross these limits, we will compromise the Earth’s capacity as a habitat for human development. Respecting a safe operating space for humanity must become a priority in the decades to come, as scientists unanimously agree. Therefore, L’Oréal aims to transition its entire business to operate within the limits of the planet.
New Quantifiable Targets for 2030
The Group has defined new quantifiable targets for 2030 to fight climate change. The “Science Based Targets” initiative supports these goals. However, L’Oréal is also going one step further. The Group will address three other major environmental issues: preservation of biodiversity, sustainable water management, and circular use of resources.
Reducing Direct and Indirect Impacts Alike
To ensure its business respects a resource-limited planet and remains fair for the communities it works with, L’Oréal will continue to reduce its direct environmental impacts. Moreover, the Group will also reduce the impacts of its entire activity, including those of its suppliers and consumers.
Alexandra Palt on Entering a New Phase
“Over the past decade, we have profoundly transformed our company, putting sustainability at the very core of our business model,” said Alexandra Palt, L’Oréal Chief Corporate Responsibility Officer. “With our new commitments, we are entering a new phase of acceleration of that transformation: going beyond our direct environmental impact, helping consumers to make more sustainable choices, as well as generating positive social and environmental contribution. As an industry leader, we consider that it is our role to contribute to building an inclusive and sustainable society.”
A Concrete Example of What L’Oréal Wants to Achieve
By 2025, all of the Group’s manufacturing, administrative, and research sites will reach carbon neutrality. They will improve energy efficiency and use 100% renewable energy. Through this commitment, L’Oréal wishes to contribute to the energy transition in the countries where it operates.
Empowering Consumers for Sustainable Choices
L’Oréal Embraces Its Responsibility
L’Oréal considers that embarking its business ecosystem, including clients, suppliers, and consumers, forms part of its responsibility.
Helping 1.5 Billion Consumers Make Better Choices
To help its 1.5 billion consumers make more sustainable choices, L’Oréal has developed a Product Environmental & Social Impact Labelling mechanism. The labelling will include a score on a scale from A to E. An “A” product qualifies as “best in class” in terms of environmental impacts.
Independent Experts Endorsed the Method
Independent scientific experts endorsed the method, and Bureau Veritas Certification, an independent auditor, verified all data. Consumers will be able to access the labels and scores on products’ web pages.
Garnier Leads the Way
The first brand to implement the new methodology as of 2020 is Garnier for its hair care products. Garnier ranks as the third beauty brand worldwide and the leader of the market in France. This labelling will progressively extend to other countries, L’Oréal’s brands, and product categories.
Contributing to Solving the World’s Challenges
€150 Million for Urgent Needs
L’Oréal announced in May 2020 that it will allocate €150 million to address urgent social and environmental issues.
€100 Million for Impact Investing
L’Oréal is engaging €100 million into impact investing to act upon key environmental challenges. The Group will use €50 million to finance damaged natural marine and forest ecosystem restoration projects through a fund called the L’Oréal Fund for Nature Regeneration. Mirova, an affiliate of Natixis Investment Managers dedicated to impact investing, will operate this fund. Another €50 million will go to financing projects linked to the circular economy.
€50 Million to Help Vulnerable Women
To help vulnerable women, L’Oréal is also creating a €50 million charitable endowment fund. This fund will support field organizations and local charities. It will help them fight poverty, help women achieve social and professional integration, provide emergency assistance to refugee and disabled women, prevent violence against women, and support victims.
L’Oréal’s Sustainability Journey: Not Starting from Scratch
The Group Began Early
Very early on, L’Oréal became aware of the need to respond to environmental challenges. As an industrial company, it decided that tackling the environmental impact of its plants and distribution centers was the most obvious first step and a necessary one to begin its transformation process. This first phase is nearly complete.
Significant Reductions Since 2005
Since 2005, the Group has reduced the CO2 emissions of its plants and distribution centers by 78% in absolute terms. This exceeds its initial target of 60% by 2020. Notably, production volume increased by 37% over the same period.
35 Carbon Neutral Sites by End of 2019
At the end of 2019, L’Oréal had 35 carbon neutral sites, meaning they use 100% renewable energy. These include 14 factories.
Sharing Beauty With All Program
In 2013, L’Oréal decided to address the core of its activity: the development of beauty products. The Group launched its global sustainability programme “Sharing Beauty With All,” announcing tangible sustainability goals towards 2020. At its core, the programme laid an innovative tool known as SPOT (Sustainable Product Optimization Tool). SPOT assesses and improves the environmental and social performance of products across all brands. Today, sustainability is fully integrated into the design process of the Group’s new products from the earliest stages.
85% of Products Improved in 2019
85% of products created or renovated in 2019 had an improved environmental and social profile.
Helping Disadvantaged Communities Find Employment
By the end of 2019, L’Oréal helped 90,635 people from disadvantaged communities find employment through its solidarity purchasing and inclusion programs.
A Unique Achievement in CDP Rankings
L’Oréal is the only company in the world to have achieved an “A” score in all three CDP rankings – climate protection, water management, and forest preservation – for four years in a row.
For More Information
For more info about L’Oréal’s sustainability commitments, visit this link. To learn more about other initiatives done by L’Oréal, click here.
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