Organizational Strategy - Sustainable Development - L'Oréal

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6 L’oréaL - GrI DaTa SHEETS 2011 EN4 The indirect energy consumption of the L’oréal factories and distribution centres, measured in gigajoules, is indicated as follows: 2011 Electricity 1,064,738 GJ 4 Heating and air conditioning 0 GJ 4 Steam 68,985 GJ 4 Nuclear Energy 0 GJ 4 Other forms of imported energy 0 GJ 4 Total 1,133,723 GJ 4 Intermediate energy bought and consumed, stemming from renewable energy sources: 1,324,552 GJ. L’oréal does not possess information about primary fuels used in the production of electricity that the factories and distribution centres purchase, nor on their origin. EN5 During the year 2011, L’oréal has put in place new projects to optimise its activity: redefinition of the processes (e.g.: new DC in roye, energy saving, heat recovery, improvement of manufacturing in terms of overall efficiency), conversion and adjustment of equipment and changes in staff behaviour. To estimate the overall improvement, while the activity of the group remains unchanged (manufacturing of cosmetics), the Environment team has calculated the GJ/million of units produced. It was found that overall efficiency has increased by 8.1%. To find the amount of energy saved, this progression was applied to the overall energy consumption. SOLAR ENERGY The initiatives abound in the L’oréal factories around the world. at each, the project is adapted to its location and configuration. The Yichang factory in China, has installed 2,000 solar tubes for preheating water, allowing for a 6% reduction in its fuel consumption. The Burgos factory in Spain will reach a neutral carbon balance thanks to a large biomass project and already uses green technologies such as solar panels and biomass for heating a building. In Pune, India, the factory uses solar energy to preheat the washing water, which allows for a 7% reduction of its total energy consumption. It already has 320 solar panels distributed over 970 m 2 . another emblematic example of the group’s willingness for specific environment results is Piscataway in the United States, which will soon have reduced its Co 2 emissions by 60%: due to the installation of LED lighting and solar panels on the site’s roofs, a reduction equal to 1,000 tonnes of Co 2 has been reached. on the Franklin site in New Jersey, where power consumption is lower than the Piscataway factory, the solar panels should allow for a reduction of 25% in Co 2 emissions, which is a decrease of 1,700 tonnes of Co 2 in 2012. In Montreal, solar walls are used not to produce electricity but to preheat the cold air outside before being distributed inside the buildings, during the cold season. one hundred tonnes of carbon for heating are thus saved, which previously derived from the use of natural gas. WIND TURBINES Since 1 st December 2011, L’oréal Mexico has access to wind power through its participation in the company Eurus, a company producing this renewable energy. Henceforth, 84% of the electrical energy consumed by the Mexico factory and the Centrex site comes from the wind, which will allow, from 2012, a reduction of 60% in the emissions of Co 2 compared with 2005. In 2012, L’oréal will also open its largest hair dye plant in the world at Villa de reyes, in the State of San Luis Potosí. This new production site, the group’s second in Mexico and the fourth in Latin america, will also call on wind power. 4/12 2010 2011 Finished products in millions 5,062.8 5,154.9 4 Total energy consumption 2,871,700 GJ 2,687,960 GJ 4 GJ per million finished products 567.2 521.4 4 Overall efficiency 8.1% Energy saved through conservation and improvements 235,998 GJ EN6
6 L’oréaL - GrI DaTa SHEETS 2011 BIOGAS In 2009, a unique system of biomethanisation was implemented in Libramont, Belgium. In this factory, the electricity and hot water are produced from the combustion of methane gas generated from agribusiness waste. This production covers more than 100% of the electrical energy requirements essential to the operation of the factory and 80% of the plant’s heating needs to produce steam in the production processes. This installation has reduced the use of fossil fuels, and the surplus electricity transferred to the network was equivalent, in 2010, to the consumption of 4,000 homes. a successful experience that will inspire other projects in the group in the years to come. > For more details, see the heading Environment/Energy on pages 22 and 23 of the Sustainable Development report 2011. ELECTRICITY The Vichy plant benefits from an ambitious partnership between L’oréal and EDF. Goal: 50% reduction in the site’s Co 2 emissions. To achieve this, EDF optimal Solutions (a subsidiary specialising in eco-efficient energy use) has designed a global custom-made energy solution, taking into account the specificities of the industrial processes at Vichy. The new facilities, inaugurated in June 2011, allow for triple energy recovery (capable of annually heating the equivalent of 12 olympic pools, or 88,000 m 3 of water for washing), an efficient geothermal energy which heats all 50,000 m 2 of the premises. It also includes a “free cooling” system, a technique that replaces standard renovation with the use of fresh outdoor air. a speed controller on one of the air compressors would adapt its operation to the needs of the site; remote management tools have been planned to monitor energy consumption in real time and Co 2 savings to the pace of the production. > For more details, see the heading Environment/Energy on pages 22 and 23 of the Sustainable Development report 2011. BUS PROJECT (BETTER UTILITIES FOR SUSTAINABILITY) The BUS project, a group-wide pilot project run by operations managers, is drawing on expertise from across L’oréal to identify methods, technical solutions and good practices in cleansing, cooling, air compression and other factory processes. To date, we have identified 11 good practices in water conservation and energy efficiency; these are accompanied by technical recommendations which are implemented throughout the group. > For more details, see page 197 of the reference Document 2011. WATER 2011 Total Direct CO 2 (t) 71,012 4 Indirect CO 2 (scope 2) (t) 91,558 4 SO 2 (t) 6,5 4 Electricity (MW) 373,756 4 Gas (MW) 328,960 4 Fuel (MW) 19,309 4 Others (MW) 24,587 4 Energy Consumption (MW) 746,612 4 I. CONTENTS CORE EN8 Total water withdrawal by source. 5/12 ADD EN9 Water sources significantly affected by withdrawal of water.
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Organizational Strategy - Sustainable Development - L'Oréal

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