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2005 SUSTAINABLE DEVELOPMENT REPORT

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❯ Our major SHE goals for 2006 are to:<br />

■ reduce our lost time injury rate by a further<br />

24% to 2.5 per million hours worked for all<br />

industrial sites,<br />

■ perform “wall to wall” SHAP risk assessments<br />

at all sites not assessed within the last<br />

two years,<br />

■ produce a noise map for each factory for<br />

all areas above 80 decibels,<br />

■ reduce total energy use by 5% from 2004<br />

per unit of finished product at factories and<br />

warehouses,<br />

■ reduce our direct carbon dioxide (CO2) emissions<br />

by 2% per unit of finished product from<br />

2004 levels at factories and warehouses,<br />

■ reduce water consumed in factories by 10%<br />

per unit of finished product from 2002,<br />

■ reduce waste generated by factories and<br />

warehouses per unit of finished product by 5%<br />

from 2004 (excluding returnable packaging),<br />

■ reduce the total weight of regulated waste<br />

generated by factories and warehouses by<br />

5% from <strong>2005</strong> (regulated in the producing<br />

country as ‘hazardous’).<br />

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SHE pilot projects for 2006<br />

Industrial factories around the world<br />

Europe:<br />

20 factories<br />

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of which France:<br />

12 factories<br />

Sustainable Development Report_L’ORÉAL <strong>2005</strong><br />

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We have two key pilot projects for 2006. The<br />

first is networking with Alcan Packaging, one<br />

of our major packaging suppliers to identify<br />

ways of improving sustainability performance<br />

to benefit both companies. For example, we<br />

have been exchanging information and models<br />

of best practice on social responsibility.<br />

This joint effort has resulted in Alcan Packaging<br />

reviewing their social audit programmes<br />

both in their production facilities and at their<br />

suppliers, based on the L’Oréal model. We<br />

have also extended this networking to sharing<br />

information on SHE best practice.<br />

The second pilot is working with GEFCO, one<br />

of our major transporters to explore ways to<br />

reduce transportation impacts, in particular<br />

the generation of CO2. L’Oréal does not have<br />

its own trucking fleet, so all product transportation<br />

is subcontracted to regional,<br />

national and local transporters. Nevertheless,<br />

we are always exploring ways to reduce<br />

our transportation requirements. We hope<br />

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North America:<br />

10 factories<br />

this pilot project will provide a model for<br />

working in each of our major production locations<br />

with transport companies to lessen<br />

these effects on the environment.<br />

Our operations<br />

■ Consumer Products: 25 factories<br />

■ Luxury Products: 7 factories<br />

■ Professional Products: 3 factories<br />

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This SHE performance data covers the year<br />

January-December <strong>2005</strong> and our performance<br />

at our 42 factories and 78 warehouses<br />

around the world. This includes Galderma,<br />

our joint venture with Nestlé.<br />

The SHE policy and performance reporting<br />

requirements apply to all L’Oréal industrial<br />

activities (factories and warehouses worldwide).<br />

Those requirements that are applicable<br />

to administrative sites —as well as some<br />

unique requirements— will be applied to our<br />

administrative sites (offices) worldwide by<br />

2007. Three years ago we developed a SHE<br />

self-inspection guide for these sites, and have<br />

since been implementing it worldwide.<br />

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South America:<br />

4 factories<br />

■ Active Cosmetics: 2 factories<br />

■ Dermatology: 2 factories<br />

■ Raw materials: 3 factories<br />

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Asia-Africa:<br />

8 factories<br />

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