L’Oréal unveils its next generation of bold sustainability targets for 2030
June 25, 2020, 10:13 am
L’Oréal today launched its new sustainability program “L’Oréal for the future”, laying down the Group’s latest set of ambitions for 2030. In the context of growing environmental and social challenges, L’Oréal is accelerating its transformation towards a model of respecting planetary boundaries and reinforcing its commitments to both sustainability and inclusion.
In order to empower its consumers to make more sustainable choices, L’Oréal has developed a Product Environmental & Social Impact Labelling mechanism, scaling from A to E, endorsed by independent scientific experts and verified by an independent auditor which will be progressively deployed for all brands and categories.
“L’Oréal’s sustainable revolution is entering a new era. 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 the 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”, said Jean-Paul Agon, Chairman and CEO of L’Oréal.
I. Transforming L’Oréal’s business to respect “planetary boundaries”
“Planetary boundaries” are limits, which, if crossed, will compromise the Earth’s capacity as a habitat for human development. Respecting a safe operating space for humanity must be a priority in the decades to come, as scientists unanimously agree , which is why L’Oréal aims to transition to a way of operating its entire business within the limits of the planet.
Therefore, the Group has defined new quantifiable targets for 2030, to fight climate change as supported by the “Science Based Targets” initiative , but is also going one-step further by addressing three other major environmental issues: preservation of biodiversity, sustainable water management and circular use of resources. To ensure its business is respectful of a resource-limited planet, and fair for the communities it works with, L’Oréal will not only continue to reduce its direct environmental impacts, but also reduce the impacts of its entire activity including those of its suppliers and consumers.
“Over the past decade, we have profoundly transformed our company, putting sustainability at the very core of our business model. 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”, said Alexandra Palt, L’Oréal Chief Corporate Responsibility Officer.
A concrete example of what L’Oréal wants to achieve: by 2025, all the Group’s manufacturing, administrative and research sites will reach carbon neutrality by improving energy efficiency and using 100% renewable energy. Through this commitment, L’Oréal wishes to contribute to the energy transition in countries where it operates.
II. Empowering L’Oréal’s consumers for sustainable consumption choices
L’Oréal considers that embarking its business ecosystem (clients, suppliers and consumers) is part of its responsibility.
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, with an “A” product considered as “best in class” in terms of environmental impacts. The method was endorsed by independent scientific experts and data have been verified by Bureau Veritas Certification, an independent auditor. The labels and scores will be accessible on products’ web pages. The first brand to implement the new methodology as of 2020 is Garnier for its hair care products, third beauty brand worldwide and leader of the market in France. This labelling will progressively be extended to other countries, L’Oreal brands and product categories.
III. Contributing to solving the world’s challenges by supporting urgent social and environmental needs, through an unprecedented plan launched in May 2020:
L’Oréal announced in May 2020 that it will allocate €150 million to address urgent social and environmental issues:
- L’Oréal is engaging €100 million into impact investing, in order to act upon key environmental challenges. €50 million will be used to finance damaged natural marine and forest ecosystems restoration projects through a fund called the L’Oréal Fund for Nature Regeneration, to be operated by Mirova, an affiliate of Natixis Investment Managers, dedicated to impact investing. Another €50 million will be directed to financing projects linked to the circular economy.
- To help vulnerable women, L’Oréal is also creating a €50 million charitable endowment fund. It will support field organizations and local charities in their efforts to fight poverty, help women achieve social and professional integration, provide emergency assistance to refugee and disabled women, prevent violence against women, and support victims.