L’Oreal is a French company that creates and develops cosmetic products. The company’s segments are Professional Products, Consumer Products, L’Oreal Luxe, and Active Cosmetics. L’Oreal operates in more than 140 countries through 32 brands and has approximately 83,000 employees. The company is the largest cosmetics group in the world.
L’Oreal believes in decoupling its growth and success from negative environmental impacts. The company has been able to decrease CO2 emissions 56% while increasing its production by 26%, and 74% of the company’s new or redesigned products have an improved environmental or social profile. 100% of company products will have an improved profile by 2020. L’Oreal also has 2020 targets to reduce water consumption and waste generation by 60%, send zero waste to landfill, achieve zero deforestation, and become completely carbon-balanced. Also by that year, L’Oreal aims to enable 100,000 people from underprivileged communities to access work through vocational training and employment of disabled workers. Executives at the company are incentivized towards sustainability by receiving bonuses for meeting these performance targets. 100% of L’Oreal’s palm oil products come from sources certified by the Roundtable on Sustainable Palm Oil (RSPO), and major suppliers of other materials are evaluated and selected based on their environmental and social performance. This entire approach is verified by a third party. Approximately 250 of L’Oreal’s raw materials have organic certification.
Although L’Oreal reports its energy usage and reduction goals to the CDP Climate Change Program, the company does not report these metrics in its own responsibility reporting. Additionally, the company does not provide annual progress updates on the elimination of toxic chemicals from its products.
Industry: Consumer Staples
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