Fully engaged in the fight against climate change and following scientific recommendations, L'Oréal has developed a climate transition plan whose pathway has been validated by the SBTi. This plan pursues two ambitions:
In absolute terms, these reductions refer to a 2019 baseline year.
To meet its target for reducing Scopes 1 & 2 emissions by 2030, L'Oréal has made commitments regarding the transition to renewable energies. Under the L'Oréal for the Future programme, the Group intends to reach 100% renewable energy for all its operated sites(1). This commitment is important because Scopes 1 & 2 concern, respectively, direct emissions linked to the Group's activities, such as on-site combustion, and indirect emissions linked to the consumption of purchased energy, such as electricity. By using renewable energy sources such as wind power and solar energy to power its facilities, L'Oréal is reducing its dependence on fossil fuels, thereby limiting its carbon footprint.
To meet its target for reducing Scope 3 emissions, which account for the majority of its carbon footprint, L'Oréal has set out trajectories adapted to the transformation of each of its functions and business lines, and planned how to roll them out in collaboration with all the Divisions and Zones. Reducing Scope 3 emissions is essential because they include indirect emissions linked to the company's entire value chain, upstream and downstream of its direct operations. This includes emissions linked to the purchase of raw materials, the transportation of goods, the use of products sold, the end-of-life of these products, and business travel.
L'Oréal has consolidated these ambitions in its transition plan, which includes the levers under its direct responsibility as well as the contribution expected from suppliers reducing emissions from their activities. The main levers identified to achieve these objectives by 2030 are described in detail in section 4.2.3.2.
Beyond 2030, to prepare for the future and meet its 2050 decarbonisation ambition, L'Oréal is exploring various solutions, supported by technological developments and a favourable political context. These include:
L'Oréal also strives to minimise “locked-in” emissions, linked to the depreciation of assets designed to emit carbon irreversibly, such as certain emergency power generators or cooling systems containing refrigerants. In Scopes 1 & 2, the transition to renewable energies reduces current emissions and avoids new locked-in emissions. With regard to Scope 3, even though the use of L'Oréal products does not involve direct consumption of fossil fuels, their entire life cycle generates emissions depending on the local energy mix, which are recorded within GHG emissions reporting and in the transition plan.
As part of its drive towards Net Zero, the Group’s strategy is focusing on reducing emissions across its value chain. Offsetting through carbon capture will be rolled out to deal with any residual emissions (up to a maximum of 10%), gradually ramping up through to 2050.
