Sustainable Development
Sustainable Development
Sustainable Development
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SuStainable <strong>Development</strong><br />
The essential of our commitments 2008
For a more beautiFul worlD<br />
Cover: Jenoy Joykutty inspecting solar water heating<br />
panels at our facility in Pune, India. These are a very cost<br />
effective and environmentally friendly alternative to the use<br />
of fuel/diesel, and perfect for this location.
2008 HigHligHts<br />
water use cut by 6.9%<br />
Greenhouse gas emissions cut by 6.6%<br />
95% of waste recycled, reused<br />
or used in energy production<br />
100%<br />
of cardboard packaging came<br />
from sustainably managed forests<br />
99% of raw materials assessed for<br />
persistence, bio-accumulation and toxicity<br />
ContentS<br />
100 years of values – message from the Chairman and CEO p.02<br />
Commitments<br />
We have always embedded sustainability into our business p.04<br />
environment<br />
We are committed to protecting the beauty of the planet p.06<br />
Corporate social responsibility<br />
We believe in the valuable role that beauty plays in society p.10<br />
transparency<br />
Our promise of beauty is a responsible one p.14<br />
For more detailed information, consult the group Internet site:<br />
www.loreal.com<br />
628 patents registered<br />
accident rate cut by 18%<br />
50% of our international brands<br />
headed by women<br />
58%<br />
of employees<br />
received training<br />
€188 million<br />
of profit shared with employees<br />
€18 million<br />
made in donations
2<br />
100 yEArS Of valuEs<br />
For a whole century, L’Oréal has been committed to the adventure of beauty. From the single<br />
brand started by Eugène Schueller, in Paris, in 1909, L’Oréal has become the world’s largest<br />
beauty company. It is an achievement secured by a rigorous scientific approach, a hunger for<br />
international expansion and an ongoing quest for innovation and quality – an achievement that<br />
is the proof of the outstanding talent, commitment and values of the men and women who have<br />
been L’Oréal these hundred years.<br />
2008 saw a reaffirmation of the aspirations of our company:<br />
• we set challenging new targets: by 2015 we aim to cut greenhouse gas emissions by half overall,<br />
and cut water and waste by half per unit of finished product,<br />
• we are already making good progress: between 2003 and 2008 energy consumption fell by 17%,<br />
direct carbon dioxide emissions by 23%, water consumption by 25% and waste by 26%,<br />
• employee programmes, like “l’oréal & me” and the Pulse survey, demonstrated our ambition<br />
to be a great place to work,<br />
• our pledge on diversity goes from strength to strength while the launch of the ethical Risk<br />
evaluation Tool and the Responsible supply Chain Portal further showed our commitment to<br />
practising business fairly,<br />
• the l’oréal Corporate Foundation continued to develop its initiatives in education, science and<br />
solidarity – particularly in the “For Women in science” programme to encourage and support<br />
female scientists.<br />
In this centenary year for l’oréal, we believe more than ever in the spirit of adventure. We are deeply<br />
committed to ensuring that l’oréal is among the most exemplary corporations of the 21 st century<br />
in the sustainability of our business.<br />
Sir Lindsay Owen-Jones Jean-Paul Agon<br />
Chairman Chief executive officer<br />
L’oRÉAL 2008 susTaInable develoPmenT<br />
ambitious targets<br />
in sustainable<br />
development by<br />
2015<br />
-50%<br />
greenhouse gas<br />
emissions<br />
-50%<br />
waste generation per<br />
unit of finished<br />
product<br />
-50%<br />
water consumption<br />
per unit of finished<br />
product
Jean-Paul Agon, Chief Executive Officer, and Sir Lindsay Owen-Jones, Chairman.<br />
We are deeply committed to ensuring<br />
that l’Oréal is among the most exemplary<br />
corporations of the 21 st century in the<br />
sustainability of our business.<br />
susTaInable develoPmenT L’oRÉAL 2008 3
4<br />
Commitments<br />
WE hAvE ALWAyS EmbEddEd<br />
sustainability intO Our businEss<br />
L’oRÉAL 2008 susTaInable develoPmenT<br />
> Parabel (our duty free warehouse) in Miami,<br />
Florida (United States), won the Excellence<br />
in EH&S award for warehouses for 2009.
❚ builDinG on a Century<br />
oF valueS<br />
For a hundred years l’oréal has been driven by<br />
the values of integrity, responsibility, and<br />
respect for people and the environment. our<br />
centenary is an opportunity to reaffirm our<br />
vision and values: a robust scientific approach,<br />
a constant quest for innovation, a taste for real<br />
challenge, and a commitment to diversity and<br />
to the environment.<br />
These values are the bedrock of our company and<br />
the foundation of our sustainability strategy.<br />
❚ a SuStainable Growth<br />
StrateGy<br />
l’oréal believes that organic growth should be<br />
the main focus of our development. The group<br />
ensures that brands are balanced across countries<br />
and sectors, and increases the rate of<br />
international expansion through a selective<br />
acquisition policy. However, growth is never<br />
FaSt FaCt<br />
Leading<br />
on SuStainabiLity<br />
L’Oréal was independently<br />
acknowledged to be one of<br />
the 100 most sustainable<br />
companies in the world in<br />
2008, for the second year<br />
running.<br />
achieved at the expense of our corporate social<br />
responsibility.<br />
The sustainability of our business was widely<br />
recognised in 2008:<br />
• l’oréal was acknowledged to be one of the<br />
hundred most sustainable companies in the<br />
world by the us research organisation Innovest,<br />
as well as a sector leader in managing<br />
environmental, social and governance risks,<br />
• l’oréal is listed on several indices of socially<br />
responsible and sustainable companies,<br />
including FTse4Good, aPsI eurozone and<br />
ethibel.<br />
• l’oréal Ceo Jean-Paul agon received the<br />
stanley C. Pace leadership in ethics award<br />
in recognition of the company’s exemplary<br />
ethical management.<br />
❚ operatinG in an ethiCal<br />
manner<br />
ethics are at the heart of l’oréal’s values. In 2008<br />
the company introduced the ethical Risk evaluation<br />
and analysis Tool, allowing managers to<br />
evaluate ethical risks and develop plans to<br />
minimise them. ethics have been incorporated<br />
into all main training programmes and the ethics<br />
open Talk website allows direct discussion of<br />
ethical issues with the Group director of ethics.<br />
Country reporting was extended to all sections<br />
of the Code of business ethics.<br />
l’oréal supports the fight against corruption,<br />
including bribery and facilitation payments. our<br />
approach is covered extensively in the company’s<br />
Code of business ethics, ethical Risk<br />
evaluation and analysis Tool, our Purchasing<br />
Code and training courses.<br />
l’oréal will not employ anyone who is less than<br />
16 years old – an age higher than that set by the<br />
International labour organisation (Ilo). all our<br />
suppliers are required to comply at the very<br />
least with Ilo guidelines.<br />
❚ praCtiSinG SaFe anD<br />
reSponSible buSineSS<br />
l’oréal’s priority is to ensure that our products<br />
pose no risk to human health. To that end we<br />
evaluate our products using the strictest criteria,<br />
wherever the product is sold. We are committed<br />
to integrating sustainability in product<br />
design and development. during 2008 we<br />
formalised our long-standing consumer policies<br />
and commitments into a comprehensive<br />
Corporate Consumer Responsibility vision (see<br />
page 14 and 15).<br />
❚ SaFety oF employeeS:<br />
a key priority<br />
l’oréal has a simple goal for the health and<br />
safety of employees: zero accidents. We are<br />
making good progress towards this goal, with<br />
only 3.7 hours of lost time per million worked<br />
across the company – an 18% reduction on 2007.<br />
For 2009 we plan a further reduction of 13.5%.<br />
We have launched several programmes to realise<br />
our zero accidents ambition, including a pilot<br />
safety course for senior managers at the<br />
renowned business school Insead.<br />
susTaInable develoPmenT L’oRÉAL 2008 5
6<br />
Environment<br />
WE ArE COmmIttEd tO PrOtECtIng<br />
thE bEauty Of thE planEt<br />
L’oRÉAL 2008 susTaInable develoPmenT<br />
> The team of<br />
ecotoxicologists<br />
apprehends the<br />
behaviour of raw<br />
materials in the<br />
environment.
❚ reDuCinG our impaCt<br />
on natural Capital<br />
We made steady progress during 2008 towards<br />
reducing our impact on the planet:<br />
• overall water use reduced by 6.9%, corresponding<br />
to 3.4% per finished product<br />
(exceeding our target of 3%),<br />
• carbon dioxide (Co 2 ) emissions reduced by<br />
6.6% (exceeding our target of 2%),<br />
• waste per finished product reduced by 0.5%<br />
– however, we missed our target of an overall<br />
reduction in waste of 5%,<br />
• sulphur dioxide (so 2 ) emissions reduced by<br />
28.3%,<br />
• volatile organic compound (voC) emissions<br />
reduced by 15.4%,<br />
• wastewater 4% cleaner,<br />
• all pulp used in cardboard sourced from sustainable<br />
forests,<br />
• plastic in bottles reduced by 800 tonnes<br />
through lighter packaging.<br />
❚ reSponSible SourCinG<br />
The selection of sustainable raw materials is<br />
essential to developing sustainable products.<br />
l’oréal uses four main tools to evaluate the<br />
impact of our raw materials:<br />
• our Sustainability Assessment Framework<br />
estimates the effect of our raw materials on<br />
the environment, the health of consumers and<br />
employees, and the lives of our suppliers and<br />
consumers – especially in developing nations.<br />
Working closely with suppliers is vital and to<br />
that end in 2008 we introduced an extranet<br />
website to speed up deployment of the<br />
FaSt FaCt<br />
Zero LandfiLL<br />
Our long-term goal<br />
is zero waste to landfill.<br />
Already half our sites meet<br />
this target. However, in<br />
some countries we are<br />
limited by the local<br />
infrastructure.<br />
Framework by suppliers and to help in product<br />
eco-design,<br />
• green chemistry – using this approach we are<br />
establishing processes that are more ecofriendly,<br />
• persistence, bioaccumulation and toxicity – to<br />
date 99% of our entire raw material portfolio<br />
has been assayed against these criteria. We<br />
also introduced an indicator to determine the<br />
overall toxicity of a formula through the contribution<br />
of each raw material. In 2008, 20% of<br />
the raw materials in our portfolio, corresponding<br />
to 80% of the volume used, were evaluated<br />
in this way,<br />
• our Plant data Sheets measure the impact of<br />
ingredient use on biodiversity.<br />
2008 saw several advances by l’oréal for the<br />
protection of biodiversity. In January we committed<br />
to sourcing all our palm oil from suppliers<br />
approved by the Round Table on sustainable<br />
Palm oil (RsPo) – founded by WWF, the RsPo<br />
seeks to protect rainforests and the local people.<br />
l’oréal also supports the moratorium on<br />
illegal deforestation in Indonesia and malaysia<br />
set up by Greenpeace and has agreed to<br />
improve the traceability of our palm oil and<br />
derivatives.<br />
our partnership with the Carbon disclosure<br />
Project encourages suppliers to measure and<br />
reduce their emissions of greenhouse gases.<br />
FaSt FaCt<br />
SuStainabiLity in Pune<br />
Our factory in Pune<br />
(India) has pioneered<br />
the use of wormeries<br />
to convert waste sludge<br />
into useful manure.<br />
Now 99% of waste from<br />
this site is recovered.<br />
susTaInable develoPmenT L’oRÉAL 2008 7
8<br />
Environment<br />
WE ARE COMMittED tO PROtECtiNg<br />
tHE BEAUtY OF tHE PlANEt<br />
❚ eCo-DeSiGninG new<br />
inGreDientS<br />
l’oréal is continuing to roll out its Green Chemistry<br />
programme, based on three principles:<br />
• the use of raw materials from renewable<br />
sources,<br />
• the development of processes that reduce<br />
waste and the amount of energy needed for<br />
production,<br />
• the generation of environmentally friendly<br />
ingredients.<br />
Green Chemistry allowed us to launch Pro-<br />
Xylane in 2006, the first anti-ageing active<br />
ingredient designed according to these principles.<br />
now all raw materials being developed are<br />
systematically analysed using Green Chemistry<br />
criteria. The information gathered is shared with<br />
suppliers allowing l’oréal to introduce ingredients<br />
made from raw materials of vegetable<br />
origin and to set up processes with a much<br />
lower environmental impact.<br />
For instance, in 2008 partnerships with other<br />
organisations led to the discovery of new environmentally<br />
friendly processes based on biocatalysis.<br />
❚ aDDreSSinG ControverSy<br />
on inGreDientS<br />
For l’oréal, the protection of its employees and<br />
customers is of paramount importance. The<br />
company is eliminating or reducing the use of<br />
phthalates, long-chain parabens, secondary<br />
amines, triclosan, nitrated musk, siloxane d4<br />
and heavy metals. We are researching the<br />
effects of endocrine modulators. We have never<br />
L’oRÉAL 2008 susTaInable develoPmenT<br />
FaSt FaCt<br />
Protecting<br />
endangered SPecieS<br />
In 2008 L’Oréal gave<br />
priority to the plant<br />
extract Orchis Mascula<br />
cultivated in the<br />
laboratory rather than<br />
in the wild to ensure that<br />
our use would not affect<br />
this endangered plant.<br />
included genetically modified ingredients<br />
in our products.<br />
l’oréal is a member of a number of groups<br />
– including the International Council on<br />
nanotechnology (ICon) and the european<br />
nanoInteract Programme – which ensure that<br />
the use of nanotechnology is safe both to<br />
humans and the environment.<br />
The first sunscreen filtering system that strikes<br />
a balance between uva and uvb rays is now on<br />
offer, and new hair dyes have been developed<br />
to take account of allergies.<br />
❚ proteCtinG the Global<br />
eCoSyStem<br />
We always try to strike the right balance<br />
between natural and man-made (chemical)<br />
ingredients when choosing and developing our<br />
raw materials.<br />
We are proud that in 2008:<br />
• 40% of all ingredients used were of vegetable<br />
origin,<br />
• as part of our efforts to replace fossil-fuel<br />
based ingredients with those from renewable<br />
resources we introduced a new solvent<br />
extracted from plants to replace an equivalent<br />
of hydrocarbon origin,<br />
• around thirty organic or fair trade ingredients<br />
were added to our portfolio.<br />
l’oréal joined 140 other businesses in signing<br />
the Poznan Communiqué to world leaders,<br />
calling for a strong international framework to<br />
tackle climate change.<br />
We recognise the importance of guiding our<br />
suppliers to a low carbon future. Working with<br />
the Carbon disclosure Project’s ‘supply Chain<br />
leadership Collaboration’ initiative since 2007,<br />
we help our suppliers measure and manage<br />
their carbon emissions. We intend to expand<br />
this collaboration in 2009.<br />
FaSt FaCt<br />
targetS for 2009<br />
• CO 2 emissions by 2%.<br />
• Energy per finished<br />
product by 5%.<br />
• Water use per finished<br />
product by 3%.
FaSt FaCt<br />
KiehL’S biodegradabLe<br />
body cLeanSer<br />
In 2008 Kiehl’s launched<br />
an Aloe Vera body<br />
cleanser that is formulated<br />
only using biodegradable<br />
ingredients. And the<br />
packaging is 100%<br />
recycled.<br />
❚ ambitiouS tarGetS For<br />
a SuStainable Future<br />
In 2008 l’oréal made one of its most important<br />
announcements ever: ambitious long-term<br />
environmental targets that will make a significant<br />
contribution to the preservation of the beauty<br />
of our planet.<br />
based on our performance in 2005, and calculated<br />
on a like-for-like basis, by 2015 l’oréal will:<br />
• - 50% greenhouse gas emissions,<br />
• - 50% water use per unit of finished product,<br />
• - 50% waste generated per unit of finished<br />
product.<br />
> Photovoltaics panels, Burgos factory (Spain).<br />
FaSt FaCt<br />
carbon neutraL<br />
in burgoS<br />
L’Oréal’s factory in<br />
Burgos (Spain) has made<br />
a public commitment to<br />
be carbon neutral by 2015,<br />
by using a mix of solar<br />
arrays, biofuels and<br />
geothermal energy.<br />
susTaInable develoPmenT L’oRÉAL 2008 9
10<br />
Corporate social responsibility<br />
WE bELIEvE In thE vALuAbLE rOLE<br />
that bEauty plays in sOCiEty<br />
L’oRÉAL 2008 susTaInable develoPmenT<br />
> Nancy Kim, Laureate 2008<br />
for Asia-Pacific, signing<br />
the Charter of Commitment<br />
for Women in Science.
❚ beauty valueS knowleDGe<br />
The l’oréal-unesCo For Women in science is<br />
our philanthropy flagship programme. We believe<br />
that there are too few women in scientific<br />
research, and that greater participation of women<br />
would bring significant benefits to science and<br />
the world. 2008 marked the tenth anniversary of<br />
the awards. on 6 th march 2008, over 40 of the<br />
programme’s award laureates signed the Charter<br />
of Commitment For Women in science, to<br />
promote science, support the cause of women<br />
and change the image of science. The “For<br />
Women in science programme” has now<br />
been extended to Fellowship programmes in<br />
40 countries and there are now pan-african science<br />
fellowships for young women in Cameroon,<br />
Ghana and nigeria, and pan-arab fellowships in<br />
the united arab emirates, egypt, Tunisia, Kuwait<br />
and saudi arabia. l’oréal’s innovative “Hairdressers<br />
against aIds” programme has now<br />
been extended to 24 countries, with a network<br />
FaSt FaCt<br />
SuPPorting femaLe<br />
ScientiStS<br />
Every year five outstanding<br />
female scientists won each<br />
to further their research,<br />
thanks to the L’Oréal-<br />
UNESCO “For Women in<br />
Science” award.<br />
of 2.5 million hairdressers. The purpose of the<br />
programme is to give hairdressers the<br />
knowledge and the means of alerting their<br />
clients to the risks of aIds and the methods of<br />
protection.l’oréal supports many other initiatives,<br />
including:<br />
• the nicolas Hulot Foundation for nature<br />
and mankind which raises awareness and<br />
knowledge of environmental issues,<br />
• the “sciences Po accessible programme” to<br />
help disabled people study at this prestigious<br />
institution,<br />
• the mentoring programme at the Cité des<br />
sciences et l’industrie to help children from<br />
disadvantaged backgrounds succeed in<br />
school.<br />
❚ beauty nurtureS<br />
SelF-eSteem<br />
l’oréal believes in the ability of beauty to<br />
nurture self-esteem. Through a number of philanthropic<br />
and research activities we are making<br />
beauty a means of recovery or comfort for those<br />
with mental, physical or social problems:<br />
• with médecins du monde, l’oréal supports<br />
“opération sourire”, to restore the appearance<br />
of people who suffer from facial malformations<br />
caused by war, illness, or malnutrition.<br />
surgery helps victims return to normal life<br />
and re-integrate with confidence into society.<br />
at present l’oréal supports seven such missions<br />
which offered surgery to 266 individuals<br />
during 2008,<br />
• since 2001 l’oréal has supported “la vie de<br />
Plus belle” in France, which organises free<br />
FaSt FaCt<br />
bringing<br />
SeLf-eSteem<br />
266 adults and children<br />
benefited from surgery<br />
to address facial<br />
malformations caused<br />
by war, illness or<br />
malnutrition as a result<br />
of L’Oréal’s support<br />
for “Opération Sourire”<br />
in Cambodia, Niger,<br />
Madagascar and Mongolia<br />
in 2008.<br />
skincare and make-up workshops in hospitals<br />
for women with cancer. In 2008 the group held<br />
188 workshops, reaching 1,487 women,<br />
• “la maison de solenn” and “la maison des<br />
adolescents” provide an innovative treatment<br />
programme for young people with self-image<br />
problems,<br />
• “la maison des Femmes” in montrouge is a<br />
secure home for women suffering from<br />
enduring exclusion and violence.<br />
overall, l’oréal donated €18 million in corporate<br />
philanthropy around the world in 2008 to<br />
contribute to projects that serve the wider<br />
community and that reflect the values we have<br />
upheld for a century. The goal of the group’s<br />
philanthropic mission is to implement exem-<br />
susTaInable develoPmenT L’oRÉAL 2008 11
12<br />
Corporate social responsibility<br />
WE BEliEvE iN tHE vAlUABlE ROlE<br />
tHAt BEAUtY PlAYs iN sOCiEtY<br />
FaSt FaCt<br />
SociaL auditS in 2009<br />
We aim to carry out checks<br />
on the working conditions<br />
of 500 suppliers globally,<br />
meaning we will have<br />
audited almost all of our<br />
suppliers by the end<br />
of 2009.<br />
plary, adaptable programmes internationally<br />
and develop initiatives that can take root in the<br />
local environment.<br />
❚ beauty SupportS Fair<br />
traDe<br />
during 2008 l’oréal pursued two new fair trade<br />
agreements: sourcing centella asiatica, and<br />
madecassoside from madagascar and argan oil<br />
from morocco. Producers get a fair return for<br />
their products and can reinvest in their community.<br />
In addition, l’oréal laboratories integrated<br />
a further five ingredients from The body<br />
shop’s Community Trade Programme into the<br />
portfolio used for other brands, benefiting cooperatives<br />
in nicaragua (producing sesame oil),<br />
Paraguay (cane sugar), Italy (olive oil), Ghana<br />
(cocoa butter) and brazil (soya). moreover,<br />
during 2008 the company chose not to apply<br />
for five patents because they failed to comply<br />
with our fair trade criteria.<br />
L’oRÉAL 2008 susTaInable develoPmenT<br />
To ensure that working conditions are acceptable<br />
in the factories we source from around<br />
the world, every year we engage specialist auditors<br />
to carry out thorough checks. In 2008, 688<br />
such audits were done.<br />
❚ DiverSity iS beauty<br />
l’oréal makes an enormous effort to understand<br />
the characteristics and behaviour of different<br />
skin and hair types, so that we can offer diversity-adapted<br />
products, tailored to the tastes<br />
and requirements of people around the world.<br />
We are the only cosmetics business to have<br />
created 18 research centres around the world<br />
to study diversity in this way.<br />
l’oréal does not believe in one kind of beauty:<br />
beauty comes from difference. That is why the<br />
company is so committed to promoting diversity.<br />
Its 23 brands embody the countless ways<br />
of expressing beauty. moreover, diversity drives<br />
innovation and performance, enabling l’oréal<br />
to better develop products that meet consumer<br />
expectations.<br />
by the end of 2008, nearly 5,000 managers had<br />
undergone diversity training. This is designed<br />
to encourage local action. In belgium, for example,<br />
a new recruitment website has been established<br />
for people with disabilities.<br />
For l’oréal, 2008 was the year of disability initiatives.<br />
The first awards ceremony for action on<br />
disability was held in october 2008, the winners<br />
being selected by a jury of independent officials<br />
and l’oréal employees. moreover, as a result of<br />
the Pulse employee survey, 20 specific actions<br />
have been initiated to ensure that disabled<br />
employees are better integrated into the workforce<br />
and have the support required to fulfil<br />
their potential.<br />
also in 2008, l’oréal helped set up the first<br />
master’s degree in equal opportunity and<br />
diversity policies at the Institut d’Études Politiques<br />
in lille. In France, in december 2008,<br />
l’oréal formalised its commitment to gender<br />
equality by signing a corporate agreement with<br />
all French trade unions.<br />
❚ beauty CreateS<br />
wealth anD new job<br />
opportunitieS<br />
l’oréal believes that all our employees should<br />
share in the company’s success. so a collective<br />
annual bonus is in place in each country<br />
to reward performance and to motivate growth.<br />
In 2008 profit sharing paid out €188 million.<br />
our priority is to develop individuals, teams and<br />
organisations that contribute to building<br />
l’oréal’s competitive edge.<br />
2008 marked the 15 th anniversary of the company’s<br />
formal commitment to apprenticeships.<br />
since 1993 2,795 young people have been<br />
FaSt FaCt<br />
Women at the toP<br />
Women now make up<br />
37% of our management<br />
committees.
sponsored by l’oréal to enrol in work-study or<br />
“sandwich” training programmes, supervised<br />
by more than 2,000 mentors. In France our<br />
apprenticeship scheme operates well above the<br />
legally-mandated quota for the company.<br />
Throughout 2008, 77% of managers and 58%<br />
of all employees received training – the cost<br />
of which is equivalent to 2.6% of the company’s<br />
gross payroll spend. more than a thousand<br />
managers took part in Transition To…<br />
management programmes, while the senior<br />
executive Programme continued to offer career<br />
development opportunities to the company’s<br />
top 200 managers.<br />
> Staff at a L’Oréal training seminar.<br />
susTaInable develoPmenT L’oRÉAL 2008 13
14<br />
transparency<br />
Our PrOmISE OF bEAuty<br />
is a rEspOnsiblE OnE<br />
> Consumer Advisory Department,<br />
Saint-Ouen (France).<br />
L’oRÉAL 2008 susTaInable develoPmenT
During 2008 we formalised our long-standing consumer<br />
policies and commitments into a comprehensive Corporate<br />
Consumer Responsibility vision. This is an important step.<br />
It demonstrates that L’oréal is fully dedicated to our<br />
customers who buy more than 4.5 billion products<br />
every year.<br />
❚ we are enGaGeD in Seven<br />
key areaS:<br />
innovative and even more effective<br />
products<br />
We assess the efficacy of every product and are<br />
committed to launching those that bring a real<br />
result for the consumer.<br />
product safety<br />
l’oréal’s priority is to ensure that the use of our<br />
products poses no risk to human health. To that<br />
end we evaluate our products by the strictest<br />
criteria, wherever the product is sold.<br />
<strong>Sustainable</strong> marketing<br />
Increasingly, consumers are demanding that<br />
societal and environmental responsibility is built<br />
into the “dna” of brands. We are committed<br />
to integrating sustainability in product design,<br />
development, marketing and advertising.<br />
responsible advertising<br />
our Code of business ethics sets down clearly<br />
what l’oréal expects of our advertising. Key<br />
principles include ensuring that adverts are<br />
based on proven performance and data, and<br />
are consistent with the l’oréal spirit, especially<br />
in advertising to children and young people.<br />
In april 2008 we signed the French Government’s<br />
Charter for voluntary engagement on<br />
body Image. We want to ensure that our advertising<br />
is a tool to increase the perceived value<br />
of diversity and to fight against sterotypes.<br />
transparency and care<br />
Consumers should always have easy access to<br />
the advice and information they need, as well<br />
as effective complaints mechanisms when this<br />
proves necessary.<br />
We aim to have a Consumer advisory department<br />
in each country or zone in which we operate.<br />
To date we have 331 specialist Consumer<br />
advisors in more than 50 countries where we<br />
have a subsidiary. These advisors also serve the<br />
other countries where our products are sold.<br />
availability of our products<br />
We believe that a selective distribution network<br />
is indispensible to the existence of our<br />
industry and the preservation of the image<br />
and economic value of high-end branded<br />
products. nevertheless l’oréal, as a pioneering<br />
manufacturer, believes that internet sales<br />
FaSt FaCt<br />
fructiS educating<br />
conSumerS<br />
Garnier Fructis bottles<br />
carry information on<br />
recycling and saving<br />
water. In 2008 Garnier<br />
pledged to reduce the<br />
weight of plastic<br />
packaging by 15%,<br />
by 2012 at the latest.<br />
are a complementary channel to reach consumers,<br />
still in a relatively early stage of development.<br />
Sharing best practice with industry<br />
and outside interest groups<br />
We believe that our vision of Corporate Consumer<br />
Responsibility should be shared, because<br />
it is for the common good that its key principles<br />
are adopted across the industry.<br />
susTaInable develoPmenT L’oRÉAL 2008 15
16<br />
transparency<br />
OUR PROMisE OF BEAUtY<br />
is A REsPONsiBlE ONE<br />
FaSt FaCt<br />
reconStructed SKin<br />
In 2008 we carried out<br />
the following tests on<br />
reconstructed tissues:<br />
• 931 formulae for skin<br />
irritation,<br />
• 1,242 ingredients<br />
for skin irritation,<br />
• 1,147 ingredients<br />
for eye irritation.<br />
Since 2006 L’Oréal has<br />
tested more than<br />
11,500 ingredients<br />
and formulae on<br />
reconstructed tissues.<br />
❚ replaCinG animal teStinG<br />
l’oréal has not tested finished products on<br />
animals since 1989.<br />
In addition, l’oréal has adopted the following<br />
three-pronged approach to replace animal testing<br />
for the safety assessment of ingredients:<br />
• developing and applying alternative methods<br />
based on tissue engineering,<br />
• drawing on the stock of safety data obtained<br />
from predictive safety assessment methods,<br />
• increased sharing of such data with other<br />
industries, encouraged by ReaCh, which is<br />
now an important criterion for selecting and<br />
developing new ingredients.<br />
L’oRÉAL 2008 susTaInable develoPmenT<br />
> Reconstructed skins<br />
2008 has been an important year for l’oréal’s<br />
reconstructed tissues models. l’oréal was given<br />
scientific approval for our skinethic RHe system,<br />
the second alternative method to study skin<br />
irritation. It supplements our episkin model, for<br />
which regulatory approval is underway. We now<br />
have the capacity to offer a choice of several<br />
models to others outside the company. moreover,<br />
in december 2008 the skinethic HCe<br />
model, to study eye irritation, was submitted for<br />
european approval through Colipa, after it had<br />
assessed several hundred ingredients. It should<br />
be fully approved by 2010.<br />
However, within the context of the european<br />
union’s 7 th amendment, tests on animals might<br />
still be necessary and compulsory for some<br />
ingredients due to the lack of approved alternative<br />
methods to ensure their safety and effectiveness.<br />
our objective is to select ingredients whenever<br />
possible whose innocuity has been verified well<br />
in advance, thanks to this combination of predictive<br />
tools, without any need for animal testing.
gEt In tOuCh !<br />
We would love to hear your views on how l’Oréal<br />
is doing on environmental and societal issues.<br />
to get in touch with your ideas, feedback<br />
or questions, please email us at<br />
sustainabledevelopment@loreal.com<br />
published by the Corporate Communications and external affairs division of l’oréal group.<br />
photographs: abacapress (P.10), alain buu (Cover, P.7, 9, 13, 14), Jean-Jacques Ceccarini (P.3),<br />
l’oréal (P.4), matteo (P.6), Isabelle Walter/l’oréal (P.16), X.<br />
Creation and layout:<br />
133, avenue des Champs-Élysées 75008 Paris – France.<br />
background to this document<br />
every year in June l’oréal publishes an expert detailed sustainable development Report.<br />
This present document is intended to be the summarised highlights of the full report which can be<br />
found at www.loreal.com, or a hard copy ordered by emailing sustainabledevelopment@loreal.com
Incorporated in France as a “société anonyme”<br />
with registered capital of e119,689,042<br />
632 012 100 RCs Paris<br />
Headquarters:<br />
41, rue martre<br />
92117 Clichy – France<br />
Tel.: +33 1 47 56 70 00<br />
Fax: +33 1 47 56 86 42<br />
Registered office:<br />
14, rue Royale<br />
75008 Paris – France<br />
www.loreal.com