Sustainability and Global Citizen Report on L’Oreal

What are the products’ physical properties and where do they come from (sourcing, mining, transport of raw materials) and its impacts?

L’Oreal operates in the sale of makeup, cosmetic, skincare and beauty products. The company is considered as the world leader in its industry. The company is not only committed to its business goals, but to environmental sustainability goals as well. The making, selling, consuming and waste from the products of L’Oreal are analyzed in terms of their environmental impact by the company.

• • Water is identified as the major concern as it gets discharged most while using the products, the company is committed to improving its product formulas in order to improve its biodegradability and reduction in their water footprint. This has enabled the reduction in water consumption during manufacturing.
  • About 59% of the raw material is derived from the renewable resources (plant origins).
  • The company has been in alliance with Rainforest Alliance to guarantee the traceability of its products, raw materials, know the origin of the plant, enforce sustainability throughout the supply chain and maintain a low carbon footprint.
  • Rice bran oil from Thailand is sourced by L’Oreal. The sourcing farmers are considered as one of the poorest farmers of the country. The company is planting trees in the areas of rice production for higher moisture retention and biodiversity (L’ORÉAL, 2017).
  • For packaging, the wood fiber, cardboard, and paper are used from only responsibly managed forests. The company has also committed to erasing the use of PVC completely by January 1^st, 2018. The company uses recycled material instead of virgin material for packaging where it can be used (L’Oréal Finance, 2018).
  • The company purchases less than 400 tons of palm oil each year, whereas the derivatives of palm oil are consumed range to about 74,000 tones. For palm oil sourcing, L’Oreal uses RSPO standards and palm oil derivatives are also 100% certified for sustainability. The soya oil used by company is sourced from Brazil and has been certified organic and is sourced from areas with no risk of deforestation. The wood fiber, sourced by L’Oreal also comes from sustainably managed forests (L’Oreal, 2017).
  • For the transport of products, the CO2 emissions linked to it are reduced by 18%. The company is committed to reducing its carbon emission which is generated by the transport of its products from the manufacturing of the products to the distributors and its customers. The suppliers of the L’Oreal are also encouraged by L’Oreal to work with CDP (Carbon Disclosure Project) to reduce carbon emissions (L’Oréal Finance, 2018).
  • L’Oreal has a very ambitious waste management policy. The company takes into account and manages wastes, including, sludge from wastewater treatment plants, product packaging, raw material packaging, and obsolete products. The company has reduced the waste generated by each finished product to 37%.
  • The company has initiated using a unique evaluation tool SPOT for the assessment of the environmental and social performance of its products. The information gathered from it is made public informing consumers of the impact of each product (L’Oreal Finance, 2018).

Summarizing the reduced impact of the physical properties of products of L’Oreal from sourcing to transportation and consumption, following figures are highlighted.

1. 1. Reduction of CO2 by 73% from its plants and distribution centers
   2. About 76% of the new products launched have better social and environmental profile
   3. 91% of the brands have conducted the assessment of their product environmental impact
   4. The company has scored “AAA” ranking in the CDP ranking (the highest rank) for climate protection, preventing deforestation, and managing water consumption sustainable (L’Oreal USA, 2018)

It shows that L’Oreal takes the impact of its business seriously. It is committed to pursuing its environmental sustainability goals with same driving forces through which it pursues its business goals.

References

L’ORÉAL. (2017, April 20). L’oréal Redoubles Its Efforts To Achieve Ambitious Sustainability Targets. Retrieved March 15, 2018, from L’ORÉAL: http://www.loreal.com/media/press-releases/2017/april/progress-report-2016

L’Oréal Finance. (2018, January 31). Sharing Beauty With All: L’Oréal’s commitment to sustainability. Retrieved March 16, 2018, from http://www.loreal-finance.com/_docs/0000000180/LOreal_2017_Progress_Report_SBWA.pdf

L’Oreal. (2017, December 15). Giving Meaning To Beauty. Retrieved March 15, 2018, from http://www.loreal.com/sustainability

L’Oreal Finance. (2018, February 1). Annual Reports 2017. Retrieved March 16, 2018, from http://www.loreal-finance.com/eng/annual-report

L’Oreal USA. (2018, January 8). Sustainable Company in Newsweek’s 2017 Global 500 Green Rankings. Retrieved March 15, 2018, from PR Newswire: https://www.prnewswire.com/news-releases/loreal-recognized-as-most-sustainable-company-in-newsweeks-2017-global-500-green-rankings-300579018.html