CASE STUDY

France

L’Oréal

APPROACH AND KEY ACHIEVEMENTS

In 2021, L’Oréal has reaffirmed the Group’s commitment to forest conservation and rehabilitation, as well as respect to Human Rights, through the publication of its 2030 Forest Policy . For the last 10 years L’Oréal has been actively engaged in a deep transparency work with suppliers towards a sustainable and responsible sourcing of palm. In 2023, more than 99% of the palm derivatives L’Oréal sources are Roundtable on Sustainable Palm Oil (RSPO) physically certified, with more than 30% of these volumes coming from field projects that support independent smallholders in the adoption of more sustainable practices . In 2023, 90% of L’Oréal’s palm derivatives suppliers were compliant with its policy based on the Sustainable Palm Index (SPI).

Roadblocks and solutions

Given the specificity of the palm derivatives market, L’Oréal faces challenges in tracing derivatives back to mills and plantations. Since 2014, L’Oréal has pioneered an innovative approach, tracing 98% of volumes back to refineries, 96% to mills, and 66% to plantations by 2022. Furthermore, due to supply chain fragmentation, some suppliers struggle to adopt sustainable practices. Since 2016, L’Oréal's Sustainable Palm Index (SPI) assesses suppliers' practices, fostering sustainable palm value chains. Additionally, as a founding member of the Action for Sustainable Derivatives (ASD) since 2019, L’Oréal collaborates with over 30 industry leaders to drive collective solutions and market engagement along the supply chain.

Action Plan for the next 5 years

  • L’Oréal remains steadfast in its Forest Policy commitments, striving for 100% traceable, sustainably sourced, and deforestation-free biobased materials.
  • Within our palm roadmap, we aim for 100% supplier compliance with our Forest Policy.
  • We're dedicated to supporting independent smallholders and engaging stakeholders within coalitions of action.
  • Our priorities include upholding human rights, promoting regenerative agriculture, and preserving climate and biodiversity.
  • Through collective efforts, we're driving sector-level change and addressing common challenges head-on.

CASE STUDIES

Germany

Beiersdorf AG

France

Danone

Italy

Ferrero Group

Mexico

Grupo Bimbo

France

L’Oréal

South Korea

LG H&H Co., Ltd.

Germany

Lidl Stiftung & Co. KG

Poland

LOTTE Wedel Sp. zoo

the Netherlands

Nutreco NV

USA

P&G

United Kingdom

Sainsbury's

United Kingdom

Unilever PLC

India

Godrej Industries Limited