4.5.1.1 Material biodiversity-related impacts, risks and opportunities
Each year, L'Oréal analyses the footprint of biobased materials to determine the extent and condition of the ecosystems linked to these materials. In 2024, a risk assessment for 2030 and 2050 was carried out on all biobased materials, including stress tests, analysing six ecosystem services(1). This analysis was supplemented by a financial assessment of the impacts and risks identified in respect of revenue or possible costs linked to the Group's business model. These analyses were used to prioritise action plans for the 15 most material biobased materials and the associated ecosystems. These models were developed in collaboration with stakeholders.
L'Oréal reinforces these initiatives by drawing on scientific research and by developing rigorous assessment methodologies. The Group actively participates in the work of leading international bodies, such as the Taskforce on Naturerelated Financial Disclosures (TNFD), the Science Based Targets for Nature (SBTN) network, CDC Biodiversité's B4B+ Club, as well as the One Planet Business for Biodiversity (OP2B) collective.
| Description | Sub-topics | Policies | Action plans and 2030 objectives | |
|---|---|---|---|---|
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Description
Since it uses various botanical species in its formulas, L'Oréal could have an impact on certain ecosystems. For example, the agricultural practices required to grow certain raw materials may put pressure on ecosystem services such as pollination and biomass supply. |
Sub-topics
Impacts on the extent and condition of ecosystems Impacts and dependencies on ecosystem services Biodiversity loss due to land-use change, fresh water-use change and seause change Biodiversity loss due to direct exploitation |
Policies
Sustainable Land Use Policy Sustainable Purchasing Policy Forest policy |
Action plans and 2030 objectives
Reducing the impact on ecosystems, with the aim of:
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Description The ecosystem services provided by nature are intrinsically linked to the Group's business model, as many key ingredients such as vegetable oils and plant extracts are sourced directly from ecosystems. The Group models, for example, deteriorated ecosystems (e.g., through deforestation, biodiversity loss or pollution) that could lead to shortages, higher prices and a drop in the quality of ingredients, directly impacting production and therefore the Group's business. |
Sub-topics
Restoring biodiversity, with the aim of: regenerating more land than the Group’s footprint on priority ecosystems. |
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Description
Developing innovative solutions(2) to reduce the impact of the beauty industry on biodiversity is a promising investment. These could help reduce the Group's dependence on certain ecosystem services. By responding to growing consumer demand for more responsible products, the large-scale roll-out of these solutions could generate substantial savings. Lastly, diversifying supply sources and working to restore ecosystems may strengthen the resilience of the Group's value chain. |
Sub-topics
L'Oréal Fund for Nature Regeneration |
Policies
Contributing, through the L'Oréal Fund for Nature Regeneration, with the aim of: restoring one million hectares of degraded ecosystems |
IRO: I- = negative impact; I+ = positive impact; R = risk; O: opportunity
Time horizon: ST = short term; MT = medium term; LT = long term.4.5.2 Biodiversity policies
As L'Oréal prioritises the use of plant-based ingredients in formulas and packaging, it recognises the crucial role of biodiversity preservation and aims to play its part in supporting it. The Sustainable Land Use Policy, published in April 2025, contains the guiding principles for L’Oréal’s approach to land management and nature conservation. The policy is aligned with the principles of the conservation hierarchy (Avoid, Minimise, Restore and Rehabilitate, and Offset) and aims to transform the Group-wide systems on which L’Oréal’s value chain depends. It is based on actions seeking to regenerate the health of ecosystems.