Organizational Strategy - Sustainable Development - L'Oréal

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6 L’oréaL - GrI DaTa SHEETS 2011 TRANSPORT L’oréal optimises its global production on a regional basis, placing operations teams as close as possible to the markets they serve. This allows each production site to be more responsive and more efficient in terms of logistics and transport. While, relatively speaking, greenhouse gas emissions in the cosmetics industry is limited, transport still contributes to L’oréal’s overall carbon footprint. L’oréal’s logistics network moves over 5.78 billion products a year from factories to distribution centres to the customers all over the world. NEW CARBON REDUCTION INITIATIVES road transport represents 58% of the means of transport used by L’oréal. as far as possible, the logistics teams use greener forms of transport that enable the group to meet required costs and deadlines. In 2011, L’oréal has placed priority on other methods and different modes of transport with lower greenhouse gas emissions. > For more details, see page 24 of the <strong>Sustainable</strong> <strong>Development</strong> report 2011. BIODIVERSITY In 2010, the signatory countries to the Convention on Biological Diversity approved the Nagoya Protocol, aimed at regulating access to resources in a given territory and the fair sharing of benefits resulting from those resources. L’oréal research was aware of these issues well before the protocol came into effect, and since 2005 has continuously striven to secure its supply chains so that they meet the issues of sustainable development. This awareness goes hand in hand with the increasing use of renewable plant-based ingredients in their products, as with Biotherm which launched a men’s deodorant with 100% natural ingredients this year. Palm oil supply is a significant example: in 2011, L’oréal’s was again recognised as sustainable by the WWF with a score of 9/9 on their rating scale. Similarly, the group’s argan sourcing was the subject of a presentation by an external expert, Daniel robinson (New South Wales University, australia), during the “Union for Ethical BioTrade” conference, where it was hailed as a proactive initiative for “accessing and sharing benefits”. SUMMARY OF THE ENVIRONMENTAL PERFORMANCE OF FACTORIES AND DISTRIBUTION CENTRES OF THE L’ORÉAL GROUP • Increase of 15.8% in manufacturing capacity (2005-2011) 4. • Emissions of greenhouse gases: absolute reduction of 29.8% (tonnes of Co 2 , direct and indirect 2005-11) 4. • reduction in water consumption of 22.6% (litres per finished product, 2005-11) 4. • reduction of 24.2% in production of transportable waste (grams per finished product, excluding returnable packaging, in the factories and distribution centres, 2005-11) 4. ENERGY I. CONTENTS CORE ADD EN3 Direct energy consumption by primary energy source. EN4 Indirect energy consumption by primary source. EN5 Energy saved due to conservation and efficiency improvements. 2/12 ADD EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
6 L’oréaL - GrI DaTa SHEETS 2011 II. STATE OF THE L’ORéAL’S POLICY IN 2011 EN3 The direct energy consumption of all the factories and distribution centres of the group, measured in gigajoules (GJ), is detailed below: : 2010 2011 Coal 0 GJ 4 Natural Gas 1,344,932 GJ 1,184,257 GJ 4 Fuel 64,394 GJ 69,511 GJ 4 Biofuel 0 GJ 4 Ethanol 0 GJ 4 Hydrogen 0 GJ 4 Total 1,409,326 GJ 1,253,768 GJ 4 Biomass 16,586 GJ Direct energy consumption divided by source of primary renewable energy 24,069 GJ TOTAL ENERGY CONSUMPTION DISTRIBUTION BY ENERGY SOURCE (1 000 x MWh) 3/12 2006 2007 2008 2009 2010 2011 1,000 x MWh 808 815 786 791 799 746 4 Consumption for 1,000 finished products (kWh/1 000 PF) 177 169 169 174 158 145 4 2006 2007 2008 2009 2010 2011 Total 808 815 786 791 799 746 4 Electricity 374 378 362 371 374 374 4 Gas 380 401 393 376 374 329 4 Fuel 54 36 30 27 18 19 4 Steam - - - 16 23 19 4 Geothermal - - - 0 1 0 4 Solar Thermal - - - 0 1 1 4 Other non-fossil energy - - - 1 9 5 4
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Organizational Strategy - Sustainable Development - L'Oréal

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