2025 Universal Registration Document

4. Sustainability Report

E2-5 – Pollution of air and of water

NMVOC: manufacturing facilities using 90% of materials considered to be solvents and materials subject to restrictive legislation have drawn up a Solvent Management Plan (SMP) for 2025, based on consumption figures in 2024. For sites that have not drawn up an SMP in 2025, purchases of raw materials containing solvents are multiplied by the average emission factor of sites with an SMP.

COD: data are taken directly from the GRAAL reporting tool.

E3-4 – Water consumption

Total water consumption indicators are calculated based on monthly meter readings at each L'Oréal site, with the data consolidated using the GRAAL system.

The “recycled water” figure refers to water that has been treated and reintroduced into the company's water system for industrial or domestic use. “Reused water” refers to water that has already been initially used and is reused for another purpose, such as discharges from purified water treatment for product formulation that are then used in industrial processes.

Total water withdrawal in cu.m in "water-stressed areas" is calculated for plants only. Sampling is deferred for plants with a DASH V2 score > 2.6, based on Water Risk Filter indicators (WRF Suite version). The WRF, developed by DEG (Deutsche Investitions- und Entwicklungsgesellschaft mbH) and WWF, enables companies to identify and mitigate their water risks. The DASH V2 score combines the most relevant WRF indicators for the sites (resource depletion, blue water scarcity, reference water stress, drought risk). The >2.6 threshold means medium to high water stress and is a CDP recommendation for criticality, on a scale of 1 to 5. Two additional factories have been included in this scope following this change of method compared to 2024.

E5-5 – Resource outflows (waste)

The GRAAL internal reporting tool is completed each year by three elements:

  1. an annual calculation based on cumulative figures to the end of September, in compliance with CSRD requirements: breakdown of waste treatment between hazardous and non-hazardous waste for the Group's manufacturing facilities on a cumulative basis to the end of September. The data collected on this sample (which represents 59% of the Group's waste) are then extrapolated as follows: the breakdown between hazardous and non-hazardous waste for each type of treatment process is applied to the total amount of waste generated annually by the Group;
  2. an annual inventory of all L'Oréal products (finished products, semi-finished products, promotional material) destroyed externally by subcontractors at the request and expense of the sites (Affaires Marchés) in each country;
  3. an extrapolation of data relating to site surface areas, for stores and administrative sites with fewer than 50 employees, versus known data for the administrative sites covered by the GRAAL reporting tool.
Product-related environmental metrics

The sustainability team reporting to the Packaging and Development Operations Department is responsible for packaging metrics.

The Research and Innovation (R&I) team is responsible for metrics concerning ingredients and raw materials.

E2-4 – Microplastics

L'Oréal assesses the microplastics in the raw materials contained in its formulas produced in accordance with the definition of the restriction on intentionally added microplastics (Annex XVII of the REACH Regulation). Calculations are performed using the raw material specification systems and the quantities used in production to manufacture the formulas. The quantities of raw materials identified as microplastics are added together and correspond to the percentage compared to the total amount of ingredients, which can be found in section 4.6.4.1.

E2-5 – Substances of very high concern

Substances of very high concern are identified in accordance with the REACH Regulation, based on the candidate list of substances drawn up by the European Chemicals Agency (ECHA). The same substance may be classified in several risk classes, which explains why the total quantity of substances of very high concern may be less than the sum of each class. The calculations are made using specification systems for formulas and production quantities. Formulas are broken down by substance to identify quantities of potential substances of very high concern. The reported figures correspond to the percentage of SVHC compared to the total amount of ingredients, which can be found in section 4.6.4.1. 

E3 – Water-saving products

The purpose of this metric is to assess L’Oréal’s water-saving solutions in water-stressed markets. It specifically tracks the number and percentage of these markets where L'Oréal has marketed at least one unit of a product or technology designed to save water, for each of the relevant rinse-off product categories distributed in these markets: haircare, hair colour, facial cleansers and bath and shower products. Sales data by product category and details of water-saving products or technologies are taken from financial reporting of the Group. 

"Water-saving products and technologies" are L'Oréal innovations designed to reduce water consumption during use. This category includes :

  • no-rinse products: formulations that do not require water for removal;
  • rinse-off products with improved rinsing: these products use less water than traditional formulations. This performance is rigorously validated by rinsability studies (internal or external) and a comparison with rinsing standards defined by recognised official publications for each type of product;
  • products that make it possible to space out water use, thereby helping to save water overall;
  • specific water-saving technologies: innovative devices or systems designed to reduce water use.