2025 Universal Registration Document

4. Sustainability Report

4.6.3.1.2 Using recycled or biobased materials for packaging plastics

L’Oréal aims to transform the composition of its packaging by favouring recycled or biobased materials and gradually eliminating fossil-based virgin plastics. To achieve this, the Group is working with its packaging and recycled plastics suppliers, ensuring that the supply chain complies with its social and environmental standards:

  • social audits: suppliers of recycled plastics located in high-risk countries are subject to social audits to verify that they are compliant with Group standards;
  • ethical commitment: recycled plastics producers sign a Mutual Ethical Commitment Letter, confirming that they respect shared environmental and social criteria;
  • In addition, the Group is also a member of the Ellen MacArthur Foundation's New Plastics Economy, which aims to apply circular economy principles to plastic packaging flows, so that they are reused or recovered rather than thrown away.

L'Oréal is also working to replace some fossil-based virgin plastics with sustainable alternatives, such as composite and biobased materials. Many of the Group's brands now use packaging that contains a significant proportion of recycled materials, including plastic, glass, paper and aluminium.

4.6.3.1.3 Promoting refillable, reusable and recyclable packaging

In order to improve recyclability and the reusable offering, the Group is gradually eliminating elements that interfere with recycling, such as certain opaque materials and metal components in plastics. For example, refills are available on the major ranges of plastic bottles.

These initiatives aim to maximise the use of existing packaging and encourage the adoption of circular economy principles in consumer habits.

4.6.3.1.4 Developing collection and recycling channels

L'Oréal works with its partners (governments, suppliers, distributor customers and consumers) to set up collection and recycling channels, particularly in countries where the relevant infrastructure remains underdeveloped.

The Group supports Extended Producer Responsibility (EPR) initiatives that encourage companies to design more sustainable and recyclable products and packaging, while promoting efficient waste management systems.

Shaping the future of sustainable packaging with SPICE

Since 2017, the Group has used SPOT (see section 4.4.3.3) to measure products’ footprints based on their packaging, formulas and production, thereby enabling it to assess their sustainability.

In 2018, in collaboration with the specialist environmental strategy firm Quantis, L'Oréal launched the Sustainable Packaging Initiative for CosmEtics (SPICE) initiative. This project aims to share research and results across the cosmetics industry, with a view to determining common methods for assessing the environmental footprint of packaging. L'Oréal shares its own SPOT packaging methodology through the SPICE initiative.

The www.Open-Spice.com platform is used to monitor research and results, as well as the upcoming work plan. The SPICE initiative has more than 30 international members and promotes the sharing of best practices to boost sustainability in the cosmetics industry.

4.6.3.2 Action plans for formulas containing circular-based ingredients

L'Oréal is accelerating the circularity of its formulas through three major actions:

  • transitioning raw materials: the Group is implementing an ambitious transformation plan, replacing petrochemical-based raw materials with natural alternatives (vegetable or mineral) or recycled materials, where it is possible to do so. L'Oréal is actively working to define a framework for ingredients derived from circular processes and is mapping the relevant technologies;
  • Green Sciences programme (see chart in section 4.5.3.1.2): the Green Sciences programme is a sustainable innovation programme focusing on developing raw materials using practices that do not harm the soil, water or biodiversity;
  • strategic partnerships: L'Oréal is forging alliances with biotech start-ups in France and abroad to speed up the adoption of sustainable and circular solutions in its formulas. The Green Sciences programme covers all the scientific fields on which R&I relies to achieve L'Oréal's objectives in terms of the preservation of natural resources and biodiversity.
4.6.3.3 Action plans to preserve resources and reduce waste at operated sites
4.6.3.3.1 Reducing waste generation at source

L'Oréal seeks to mobilise its entire value chain to reduce waste at source through:

  • environmental design of products, packaging and packaging components, aimed at reducing waste and improving recyclability;
  • waste mapping: internal tools for analysing waste on operated sites, which are used to push waste reduction action plans;
  • optimisation of transport packaging and use of returnable packaging between production facilities and suppliers, to limit supply chain waste;
  • continuous process improvement for manufacturing and packing in order to reduce manufacturing waste; and
  • managing stock obsolescence to minimise the number of products thrown away, with initiatives including the use of outlets, employee sales and donations to charities.