2025 Universal Registration Document

To further transform its value chain, L'Oréal is focusing on two priority areas:

• industry transformation: working with stakeholders such as the CDP and industry coalitions, particularly Action for Sustainable Derivatives (ASD) and TRaceability Alliance for Sustainable CosmEtics (TRASCE); and
• field projects: direct support for projects and suppliers in their sustainable practices, access to certification, such as RSPO and Round Table on Responsible Soy, and conservation and restoration of ecosystems to strengthen the resilience of supply chains, notably supporting small producers⁽¹⁾ in Indonesia and Malaysia.

4.5.3.1.3 Results by commodity

L'Oréal has put in place specific actions for sensitive raw materials:

• palm oil, palm kernel oil and their derivatives: certified sustainable sourcing (RSPO), traceability with a comprehensive value chain map from the palm oil plantation to the mill (through ASD), and the use of tools such as the Sustainable Palm Index to assess suppliers and engage them in adopting better due diligence practices;
• soya bean oil: purchases, particularly in Latin America, from a triple-certified field project (RTRS SG, Biologique, Fair For Life) which supports small soya producers in adopting better social and environmental practices.
• paper and cardboard: all materials used are FSC- or PEFC-certified to guarantee sustainable forest management and end-to-end traceability. Annual investigations map the supply chains back to the forests of origin, enabling enhanced duty diligence action plans and the introduction of a Sustainable Timber Score to assess the performance of suppliers. L’Oréal has been a member of the Forest Stewardship Council (FSC) since 2023;
• plastic: L'Oréal ceased manufacturing finished goods containing PVC in 2018.

4.5.3.1.4 Reduce the impact on terrestrial biodiversity

L’Oréal aims to reduce any negative impact on terrestrial biodiversity resulting from the production of its plant-based ingredients. This ambition is based on:

• innovative alternatives: through the Green Sciences programme (see chart below), the Group is exploring biotechnologies and the circular economy as a way of reducing its environmental footprint;
• sustainably sourced renewable raw materials: L'Oréal has developed its sourcing strategy for biobased ingredients around respect for biodiversity, and promoting traceability and sustainability. The ISO 16128 standard on cosmetics defines ingredients as biobased when more than 50% of their carbon content is of natural origin. Ingredient traceability is made possible by precise knowledge of botanical and geographical origin and agriculture methods. Sustainability is assessed using the SCAN Index, which analyses environmental and social risks. If risks are identified, an action plan is put in place, with an independent third party where necessary, to ensure compliance with the Group's Sustainable Purchasing Policy;
• sustainable forest management: promoting and testing alternative practices to intensive forestry, and forest management that minimises the impact on ecosystems and encourages natural regeneration.