2025 Universal Registration Document

3. Risk factors and risk management

Regarding plastics, L'Oréal takes action to reduce its overall plastic footprint in packaging, microplastics in product formulas, point-of-sale advertising (POS), and plastic waste generated by its factories and warehouses. As part of the L'Oréal for the Future programme, the Group (i) aims to use 50% materials from recycled or bio‑based sources in product packaging and (ii) is targeting a reduction of 50% in the use of virgin plastic in product packaging in absolute terms compared to the 2019 baseline.

In addition to environmental packaging design measures carried out by research laboratories, the Operations and Brands, this commitment requires the involvement of a range of stakeholders (companies located at different levels of the value chain, research institutions and public authorities).

In order to reduce the footprint of its packaging, particularly in terms of plastic, L'Oréal has adopted a strategy known as the "3Rs":

  • Reduce: cut packaging intensity, mainly through lightweighting and reuse;
  • Replace: use alternatives, such as recycled or low-carbon impact materials; and
  • Recycle: design packaging compatible with recycling circuits.

L'Oréal has a quality and safety policy for the materials used in its packaging. It specifies the conditions for acceptance or rejection of substances that may be present in packaging, regardless of the material. This policy is updated annually in line with regulatory developments and scientific progress, and each Supplier agrees to comply with regard to the packaging used in the Group's products. Quality auditing is carried out to ensure compliance.

The Group is active across the recycled plastics value chain, by involving Suppliers of plastic packaging and recycled plastics in its analyses and in efforts to mitigate upstream social risks. All recycled plastic producers used by the Group's packaging Suppliers undertake to comply with the Group's standards and commit to this by signing the Mutual Ethical Commitment Letter. A social audit is carried out at each recycled plastic supplier factory located in a high-risk country. A social audit demonstrating compliance is a prerequisite for any commercial relationship between recycled plastic suppliers and the Group's plastic packaging Suppliers.

Since 2022, the Group has been engaged in a transparency campaign aimed at securing traceability for the recycled plastics used in its packaging. In 2025, 99.9% of recycled plastics in the Group’s packaging were traced back to the country of origin (waste collection).

Using the same approach as for the renewable raw materials described above, L'Oréal has established sustainable sourcing criteria for assessing recycled plastics streams. The Group uses the SCAN Index to prioritise action plans.

Conscious that transforming the sector requires the cooperation of all of its stakeholders, including Suppliers of plastic packaging, recycled plastics and other end products, the Group maintains active dialogue with numerous stakeholders to promote positive change in the industry. It is in this context that the Group joined The Circulate Initiative coalition in 2025.

Commitment of Suppliers to self-assess and move forward with action plans through CDP

L'Oréal actively works with its Suppliers to help them improve their performance in terms of sustainability.

In 2007, L'Oréal joined the CDP supply chain programme for greater transparency in the actions of its Suppliers and to monitor Suppliers' progress with regard to L'Oréal's objectives. In 2014, participation in the CDP Climate programme was made compulsory by L'Oréal for all strategic Suppliers. The aim is to measure and report their emissions, set targets for reducing these emissions and communicate their action plans to achieve this objective successfully.

Commitment of suppliers to self-assess and improve through corrective actions recommended by EcoVadis

By participating in the EcoVadis assessment, L'Oréal compares its environmental and social policy with the expertise and the recommendations of external experts qualified in the analysis of multi-sector risks. This assessment is useful for the continuous improvement of Suppliers, and also contributes to the transparency of industry practices, as well as to the rating of Suppliers’ environmental and social performance. In total, 95% of strategic Suppliers have been assessed by EcoVadis.

(iii) Additional actions related to climate change

Since 2007, L’Oréal has carried out an annual greenhouse gas (GHG) emissions assessment in order to monitor and report its emissions and identify action plans to reduce its carbon footprint. This assessment is conducted in accordance with the Greenhouse Gas Protocol (GHG Protocol) rules, the international benchmark method for recording GHG emissions.

In 2025, the Group's total GHG emissions (using the market-based method) were estimated at 6,421,686 tonnes of CO2 equivalent, breaking down into the following categories:

  • Scopes 1 & 2 emissions: 66,634 tonnes of CO2 equivalent;
  • Scope 3 emissions: 6,355,052 tonnes of CO2 equivalent.

In response to the climate emergency, L'Oréal drew up a climate transition plan in 2023, whose pathway was validated by the Science Based Targets initiative (SBTi) in 2024. This plan is aimed at reducing the Group's Scopes 1, 2 & 3 emissions over time horizons up to 2030 and 2050, in line with the requirements of the Corporate Net Zero guidelines and the recommendations of the Intergovernmental Panel on Climate Change to limit global warming to 1.5°C. These decarbonisation objectives remain unchanged following the strategic review of the L’Oréal for the Future programme in 2025. The objectives aim to:

  • by 2030, reduce Scopes 1 & 2 carbon emissions by 57% and Scope 3 carbon emissions by 28% for goods and services purchased by the Group, employee business travel, upstream transportation and distribution; and
  • by 2050, reduce total emissions by 90%, with residual emissions offset to achieve net zero.

In absolute terms, these reductions refer to a 2019 baseline year.