The L'Oréal for the Future objective of achieving 100% renewable energy is calculated on the basis of its operated sites and stores at which L'Oréal directly holds an electricity subscription, excluding estimates for stores and administrative sites with fewer than 50 employees.
The base year (2019) for the climate targets was determined in accordance with the recommendations of the SBTi. This choice corresponds both to the year in which the L'Oréal for the Future programme was launched and to the last fully representative year of activity before the Covid-19 pandemic.
The methodology used is that of the GHG Protocol.
Activity data Scopes 1 & 2: Scopes 1 & 2 activity data (KWH) comes mainly from the GRAAL tool, managed by the Operations Department.
Emissions from the vehicle fleet are based on fuel consumption; where this is not available, emissions can be estimated on the basis of mileage.
For stores, energy consumption is partly collected and partly estimated as follows:
Emission factors (EF) for Scope 1 are taken from the databases of the French Environment and Energy Management Agency (ADEME) for fossil fuels (natural gas, fuel oil, etc.), as well as from the Sixth Assessment Report of the IPCC (IPCC AR6), the International Energy Agency (IEA) and the UK's Department for Environment, Food and Rural Affairs (DEFRA). They are updated by the Operations Department in GRAAL or in the stores and vehicle fleet calculation tools.
Market-based method: EFs for the electricity, heat, steam and cooling networks are based on data from utility companies, the IEA, DEFRA and ADEME, and are input manually for each site in the GRAAL internal reporting platform or in the store and vehicle fleet calculation tools.
Location-based method: the location-based EF for electricity is a national EF, based on the country's electricity mix as published by the IEA. Exceptions may be granted for regional or sub-national EFs. They must be published by a competent authority (e.g., the total output emission rates published by eGRID in the US).
Level of uncertainty: for Scopes 1 & 2, the level of uncertainty at Group level is approximately 1% for manufacturing facilities and distribution centres, and 5% for administrative sites and research centres.
This is the sum of the categories relevant to L'Oréal identified by the GHG Protocol and detailed in the GHG Protocol's Corporate Value Chain (Scope 3) accounting and reporting standard.
In 2025, 84% of Scope 3 emissions are calculated on the basis of primary data.
For Scope 3, the level of uncertainty is greater given the volume of data required, such as the EFs used to calculate the CO2 eq emissions of raw materials and packaging over their entire lifecycle, the distances travelled for transportation, the EFs used to calculate emissions linked to business travel, and so on.
The overall carbon impact of the Group's business activities is an essential measurement. In light of its ambitions for combating climate change, L'Oréal strives each year to improve the reliability of these data. The level of uncertainty of the Group's Scope 3 emissions is estimated at between 20% and 30%.
