Climate Protection, The Key to Economic Success

In 2016, four years ahead of schedule, L’Oréal met its two targets with regard to reducing greenhouse gas emissions, by decreasing the emissions of its plants and distribution centres by 67%, in absolute terms, from a 2005 baseline and by reducing the emissions related to the transportation of its products (per sales unit per km) by 20% from a 2011 baseline.

Promoting low-carbon growth 

Between 2005 and 2016, L’Oréal reduced its greenhouse gas emissions by 67%, in absolute terms, and increased its production volume by 29% at the same time, thereby confirming that ambitious commitment in favour of the climate can go hand-in-hand with economic success. 

This exceptional performance was praised for the fourth year running by the CDP. This independent international organisation, which evaluates the environmental performance of companies, awarded L’Oréal a score of “A”, representing the highest level of performance, in its Climate Leadership Index. 

Improving energy efficiency 
Improved building design, and insulation, optimisation of industrial processes and the use of less energy-consuming technologies have made it possible to reduce energy consumption at L’Oréal is industrial sites by 33%, in kWh per finished product, between 2005 and 2016. 
The group is continuing the energy management ISO 50001 certification process, and expects all of its plants to have obtained this certification by 2020. In total, in 2016, 24% of plants (representing 10 sites) were certified. 

Increasing the use of renewable energy
Thanks to major projects using various technologies that are adapted to the locations of the sites concerned (biomethanation, biomass, solar panels, etc.) and the purchase of green electricity and gas, renewable energy supplies satisfied 45% of the needs of L’Oréal’s plants and distribution centres in 2016. 
Fifteen of the Group’s sites achieved carbon neutrality by the end of the year: five plants (Libramont in Belgium, Settimo in Italy, Burgos in Spain, Rambouillet in France and Yichang in China) and ten distribution centres. 

Reducing emissions related to product transportation 
L’Oréal also wants to reduce the emissions generated by the transportation of its products from the plants to the distributors who are its customers. A host of actions are being undertaken, including the use of rail transport to replace road freight in China, the optimisation of container loading in the Africa and Middle East zone, and the reduction in air transport. As a result of these efforts, L’Oréal has achieved its target four years early. In 2016, emissions related to the transportation of products have decreased by 20% per sales unit per km, from a 2011 baseline.

You can find out more information about the initiatives that L’Oréal is undertaking with its successful Sharing Beauty With All program by downloading the SBWA 2016 Progress Report here.