2025 Universal Registration Document

Carbon emissions related to the extraction and production of all materials used for the products manufactured by the Group, and their promotion at points of sale. These emissions include the extraction of materials, their transport to suppliers, and their processing before delivery to L’Oréal production sites. The calculation is based on tonnages of packaging and raw materials, emission factors from Ecoinvent, and specific life cycle assessments (LCA). The carbon emissions for this category also include carbon emissions related to:

• services purchased by L'Oréal, for which monetary emission factors are issued by the ADEME Carbon Base;
• emissions linked to point-of-sale advertising and accessories (POS), including all stages of the life cycle for which the emission factors are derived from specific LCAs using the in-house EcoDesignCloud tool;
• data centres (operated) and clouds (private and public), based on internal data from the Group's IT system, as well as monetary data;
• the extraction and production of materials used for the supply chain and the operated sites;
• materials used to manufacture the products of partner brands sold via the SalonCentric network in the United States.

Carbon emissions related to the manufacture of capital goods acquired or leased by L'Oréal (property, industrial equipment, packaging moulds, IT equipment, leased car fleet). The emission factors used are derived from:

• the ADEME Carbon Base: in kgCO₂ eq/€k for investments in industrial equipment, in kgCO2eq/sq.m. for property acquisitions, and in kgCO₂ eq/tonne for the manufacture of cars for the leased vehicle fleet;

• the EcoInvet database: in kgCO₂ eq/tonne for the manufacture of packaging moulds;

• the Resilio DB database for ICT (Information and Communication Technology) equipment.

Carbon emissions related to the extraction, production and transportation of the fuel and energy purchased by L'Oréal and its subcontractors. It also includes losses through electricity distribution. Electricity-related emissions are calculated using the country-specific emission factor (source: IEA). By taking line losses into account, it is possible to calculate emissions related to the total electricity produced: these are estimated using country-specific loss factors (source: World Bank).

Upstream energy emissions related to L'Oréal's vehicle fleet are also included in this category, calculated using the emission factor database created by the United Kingdom's Department for Energy Security and Net Zero (DESNZ) and its Department for Business, Energy & Industrial Strategy (DBEIS, formerly DEFRA).

CO₂ emissions generated by the transport of products purchased and shipped. This includes the transport flows of finished products (products in L'Oréal factories or subcontracted) and promotional items from the production sites to delivery at the customer's first delivery site. Verified data from the Department for Transport is used.

This category also includes emissions resulting from the transport of purchased items (raw materials and packaging components) between suppliers and L'Oréal manufacturing facilities. The emissions calculation uses the amount spent for each category of item and for each mode of transport. This expenditure is then multiplied by the corresponding emission factor (kgCO₂ eq/€k) from the ADEME Carbon Base.

This category covers emissions related to the processing by third parties of production waste and wastewater from facilities operated or owned by L'Oréal. Emissions are calculated using a specific emission factor associated with the material (plastic, metal, glass, etc.) and the treatment process (source: ecoinvent). For wastewater, the rates at which our sites are connected to municipal wastewater treatment plants (WWTPs) are taken into account, as are the greenhouse gas emissions from the deterioration of wastewater and the emissions related to the energy used by wastewater treatment plants.

This category covers carbon emissions from business travel for all Group employees. These emissions take into account the different modes of transport used (plane, train, car, taxi, etc.). The calculation is based on data collected by travel agencies (mileage, country, mode of transport) and on employees' expense accounts. The emission factors used depend on the mode of transport (kgCO₂ eq/passenger km) and are taken from the UK DESNZ and DBEIS databases, as well as from the ADEME Carbon Base where monetary.

Optional emissions: emissions linked to hotel reservations are calculated but not published, as they are considered optional under the GHG Protocol.

This category includes carbon emissions related to employee commuting from home to the workplace. Emissions are calculated for each country based on the number of employees and statistics from national transport bodies (car, bus, train, underground, bicycle, motorbike, etc.). The emission factors used depend on the mode of transport and the Region (Europe, North America, South America, Asia, Africa) and are taken from the ADEME Carbon Base and the ecoinvent database.

Optional emissions: emissions linked to energy consumption for remote employees are calculated but not published, as they are considered optional under the GHG Protocol.

Not applicable: L'Oréal does not operate any assets that are owned by other entities.

This category includes carbon emissions related to transport and distribution of distributor customers (internal estimation method based on a study conducted by the Department of Transport).

Optional emissions: emissions linked to customer travel to the point of sale are calculated but not published, as they are considered optional under the GHG Protocol.

Not applicable: production is used directly by the end customer. There is no transformation of intermediate products.

This category includes carbon emissions related to the use of L'Oréal products by consumers. The direct use phase corresponds to emissions related to the use of aerosols (mainly hairsprays and deodorants containing propellant gas). The total quantity of propellant gas in the products L'Oréal sells is multiplied by the associated emission factors (source: IPCC). This category also includes emissions linked to the use of appliances sold (such as the SteamPod straightener), which the emission factors are derived from specific LCAs carried out by the Augmented beauty team.

Optional emissions: the indirect use phase corresponds to emissions due to the hot water used to rinse off certain products, such as for example shampoos, shower gels and hair dyes. For each type of product that uses water, the quantity of hot water required to rinse it off is defined (source: Afnor French standards agency and L'Oréal publications). Then, for each country where the products are sold, the residential water heating mix and the associated emission factors (source: IEA, ADEME Carbon Base) are used to estimate the amount of CO₂ generated per litre of water used. These emissions are calculated but not published, as they are considered optional under the GHG Protocol.

Carbon emissions linked to this category correspond to the processing of sold products after use, wastewater treated in water treatment plants and packaging disposal.

The primary data are collected from internal databases (raw materials and packaging materials), for which the carbon emissions relating to their end-of-life treatment are then calculated. For packaging, the calculation includes emissions due to the different types of treatment as well as transport linked to collection. The calculation uses internal data from the SPOT tool to estimate the percentage of materials used in packaging that are treated, as well as emission factors from the ecoinvent database by type of material and process.

The calculation of carbon emissions for effluents is based on the chemical oxygen demand (COD) of the different products and on statistics regarding treatment in the different countries.

Not applicable: L'Oréal does not operate any assets that are owned by other entities.

Not applicable: as L'Oréal's model of franchised stores is very limited, emissions related to the energy used by these stores are not taken into account.

This category includes carbon emissions relating to L'Oréal's investments in 2025, accounted for via the share of L'Oréal's investments in the company or companies in question. The companies concerned are Sanofi, which is equity-accounted, and companies in which L'Oréal invests through the BOLD (Business Opportunities for L'Oréal Development) venture capital fund.