The Group pursues a threefold innovative approach.
1. Tracing back derivatives to make full transparency:
Concerning the derivatives, which are also 100% certified, L’Oréal had increased the proportion of its physically certified purchases to 98.4% of RSPO Mass Balance at the end of 2021, compared with 95% in 2020 and 70% in 2019 the remainder continues to be covered by the RSPO Book&Claim model.
And the Group decided to go one step further than RSPO certification, in order to ensure a deforestation-free and sustainable palm production. Since 2014, it deployed an unprecedented approach within the oleo-chemicals sector and started to map its entire supply chain and to trace derivatives back to their origin.
Since 2015, L’Oréal has progressively updated and enriched its data collection by extending the scope to cover all suppliers in order to be able to trace and identify the origin of 100% of its main palm and palm kernel derivatives. The results of this work show that Malaysia and Indonesia are the main countries from which supplies are obtained and that, for 2020, 98% of these volumes of palm and palm kernel derivatives could be traced to the refineries,94% to the mills and 50% as far as the plantations.
In 2021, on the basis of this work and with the goal of greater transparency, for the fourth consecutive year, L’Oréal published the list of the 928 mills indirectly connected to its supply chain and representing over 90% of its palm derivative volumes, as well as the list of its direct suppliers of derivatives.
2. Supporting independent smallholders
L’Oréal is also committed to support independent smallholders, who face challenges such as deforestation and difficult living conditions. Through a multi-stakeholder partnership, L’Oréal helps to connect independent smallholders to the market demand for “Zero Deforestation” palm oil, fostering sustainable agricultural practices.
In 2015, in the Beluran district of Malaysia, L’Oréal launched a pilot project called “SPOTS” (Sustainable Palm Oil &Trace ability with Sabah small producers) aimed at supporting 500 independent producers of palm oil by 2020. Find it more here
3. Driving change in the palm sector by transforming purchasing policies.
L’Oréal is committed to respecting internationally recognized human rights everywhere it operates, and throughout its supply chains. The respect of human rights - namely no child labor, no forced or bonded labor of any type, safe working and living conditions as well as the fight against any potential source of discrimination is taken into account in the selection process and the yearly assessment of our suppliers.