4. Sustainability Report
4.11 Transparent labelling and shift towards responsible consumption (S4)4.11 Transparent labelling and shift towards responsible consumption (S4)
4.11.1 Background
The Group aims to leverage the power of its brands to encourage consumers to adopt a more responsible approach to consumption. Through the development of an industry-wide system for displaying the environmental impact of products, L'Oréal seeks to provide consumers with transparent information on products’ environmental performance to help them make informed choices.
4.11.1.1 Material impacts, risks and opportunities related to responsible labelling and consumption
| Description | Sub-topics | Policy | Action plan | |
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Description A lack of transparent and comprehensible information on the impact of products, combined with the risks of greenwashing and limited consumer understanding, could lead to poor choices and the selection of products with greater negative environmental impacts. This lack of transparency could also slow down L'Oréal's internal development of more sustainable products, since it would be hard for consumers to identify and prioritise genuinely eco-friendly options. False claims may also mislead consumers, leading to inappropriate product choices. Lack of advice on how to use products may lead to overuse, wasted water and inappropriate waste disposal. |
Sub-topics Access to high-quality information for consumers |
Policy Research & Innovation and packaging policy EcoBeautyScore Association |
Action plan Deploying EcoBeautyScore, an industry-wide system for displaying the environmental impact of products |
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Description In terms of positive impacts, transparent labelling and simplified choices help consumers make more responsible choices, which benefits both L'Oréal's brand portfolio and the beauty industry as a whole. |
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Description L'Oréal is exposed to significant financial and reputational risks in the event of a lack of labelling transparency. Misleading labelling practices may lead to prosecution and fines, while an overall lack of transparency could undermine consumer and stakeholder confidence, impacting L'Oréal's sales, attractiveness and overall reputation. |
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Description The focus on displaying environmental impacts in a transparent and harmonised way represents a real opportunity for L'Oréal. For example, transparent and consistent labelling could lead to a levelling up of practices across the industry, thereby reducing the costs associated with compliance. Open communication about products may reinforce consumer confidence, driving greater loyalty, higher sales and a clear competitive advantage. |
IRO: I- = negative impact; I+ = positive impact; 
Time horizon: ST = short term; MT = medium term; LT = long term.4.11.2 Labelling and responsible consumption policy
L'Oréal's ambition is to accelerate the transformation of the beauty industry by guiding all consumers towards more sustainable products and thereby generate a preference for products with a low environmental impact.
L'Oréal meets consumer expectations in terms of sustainability while anticipating changes in the regulatory landscape. The Group uses scientific approaches to support its environmental communications and aims to ensure greater transparency in its information by adapting to future requirements.
This development is based on two key areas:
- encouraging responsible consumption by offering greater transparency to facilitate consumer choices;
- encouraging environmental product design by reducing the consumption of resources, such as water, and offering a more circular product range with a smaller environmental footprint, based on product life cycle analyses.
This strategy is being headed up by the Corporate Social Responsibility team, which has been tasked with participating in EcoBeautyScore and rolling out this transparent, common labelling system for the beauty industry across the Group's brands.
4.11.3 Action plan in place
In 2021, L’Oréal joined forces with key players in the cosmetics industry to co-found the EcoBeautyScore Consortium, with the shared aim of creating a harmonised environmental labelling system. EcoBeautyScore has members from more than 70 businesses and cosmetics industry stakeholders, representing more than 50% of the global market.
The EcoBeautyScore system aims to provide consumers with a clear, transparent and comparable assessment of cosmetic products' environmental impact. A public consultation carried out in June 2024 highlighted the Association’s significant progress, which is structured around four fundamental pillars:
- developing a shared method for scientifically measuring the environmental impact of products throughout their life cycle, in line with European Commission recommendations;
- creating a shared database on the environmental impact of ingredients and raw materials used in formulas and packaging, as well as during product use;
- developing a joint scoring tool to provide a standardised assessment of products' environmental footprint;
- introducing a harmonised scoring system to provide accurate information for consumers about cosmetic products' environmental footprint.
In 2025, the EcoBeautyScore methodology and platform were independently reviewed and verified by E&H, the consultancy arm of the Ecocert group, ensuring compliance with the principles of the European Commission’s Product Environmental Footprint (PEF) methodology and ISO 14020/ 14025 standards. L’Oréal subsequently initiated the digital deployment of EcoBeautyScore on the face care products of the Group’s flagship brands, L’Oréal Paris and Garnier, in France and Germany. In line with the EcoBeautyScore's rigorous methodology, all published scores are verified by an independent third party. In 2026, the Group intends to generalise EcoBeautyScore and incorporate new eligible product categories for the entire European market. This strategic expansion is fully in line with L'Oréal's goal of providing transparent and accessible environmental information to consumers.