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Responsible Operations

L’ORÉAL SAPMENA reaches 100% renewable energy across all operated sites*

The South Asia Pacific, Middle East and North Africa zone reaches 100% renewable energy amidst a period of dynamic growth

Recognising the urgent need to tackle challenges posed by global climate change, L'Oréal Groupe is committed to reducing greenhouse gas emissions from all its operating sites. We are making strong progress on this goal, reaching 100% renewable energy across all 23 operated sites  in the South Asia Pacific, Middle East & North Africa (SAPMENA) Zone as of end-2023. This milestone was reached two years ahead of the Groupe’s 2025 commitment and includes all factories, distribution centres, a research & innovation centre and administrative offices. 

At L'Oréal SAPMENA, our leadership in beauty goes hand-in-hand with our responsibility to the planet.

Sustainability at the heart of business growth 

SAPMENA is home to more than 40% of the world’s population, where 1 in 2 new consumers will come from in the next decade. It is also a region that it is disproportionately impacted by climate change.

Vismay Sharma, President of L'Oréal South Asia Pacific, Middle East & North Africa (SAPMENA), emphasises the importance of integrating sustainable practices into every facet of the company’s operations. “As the world’s leading beauty player, it is critical that we embed sustainable practices into our core operations as we grow. Reaching 100% renewable energy is significant, and I’m very proud of my team’s efforts to accelerate and meet this commitment ahead of our 2025 timeline. We’re not stopping here, it is one step of many in our sustainability journey and our commitments extend far beyond.”

L'Oréal SAPMENA reached the 100% Renewable Energy milestone amidst three consecutive years of double-digit sales growth since 2021 while significantly reducing energy intensity by 18% since 2019. This clearly demonstrates that sustainability isn't just good for the planet; it's fundamental to growth. 

Fuelled by diverse solutions

For a vast region spanning New Zealand to Morocco, SAPMENA required a tailored approach through a diverse mix of solutions, from harnessing solar power and existing hydro dams to deploying electric boilers and securing Power Purchase Agreements that support new renewable energy projects. This innovative, location-specific strategy allows optimisation of renewable energy sources while minimising impact on the environment.

For instance, across factories in Egypt, Indonesia, and India, SAPMENA embraced electric or biomass/biofuel boilers. But it doesn’t stop there – each site draws on a tailored mix of energy sources to suit its environment

  • Yasulor Factory, Indonesia – running on hydro power since 2014, by leveraging natural downstream flow in mountains and dams near the site

  • Baddi Factory, India – tapping on surrounding river systems of Himachal Pradesh for hydro power

  • Chakan Factory, India – solar energy powering daytime operations and wind energy covering nighttime needs

Sustainability touches every aspect of our value chain

Sustainability is an on-going journey that touches every aspect of operations. SAPMENA is not only committed to 100% renewable energy across sites, we are also

  • Reducing energy consumption & withdrawal across all SAPMENA

  • Increasing on-site renewable [2] energy generation

  • Reducing the emissions generated by the transportation and warehousing of our products

  • Investing in upskilling and collaborating with strategic suppliers to reduce carbon emissions across logistics, transportation, and packaging

  • Innovating by 2030 to enable consumers to reduce greenhouse emissions resulting from the use of products by 25% compared to 2016, on average and per finished product. 

This holistic approach empowers our entire business ecosystem to embrace a more sustainable future.

 

Milestone But Not Finish Line

Reaching 100% renewable energy two years ahead of schedule in SAPMENA marks a significant step forward but there is more work to be done. 

In the L'Oréal for the Future (L4TF) program, launched in 2020, sustainability ambitions were outlined to reduce overall greenhouse gas emissions by 25% by 2030, in absolute terms compared to 2016, with the target of reaching net zero emissions by 2050.

Beyond 100% renewable energy, L'Oréal is committed to advancing sustainability through three key pillars. First, we are stepping up internal transformation by setting 2030 targets across climate, water, biodiversity and natural resources. Second, by actively involving consumers, suppliers and the communities together in the sustainability journey. Finally, L'Oréal is allocating 150 million euros to address urgent social and environmental needs.

In the context of growing environmental and social challenges, L’Oréal is accelerating its transformation towards a model respecting planetary boundaries and reinforcing its commitments to both sustainability and inclusion.

 

[1]Excluding safety and security installations

[2]Where on-site renewable energy production is not possible, L’Oréal SAPMENA has secured long-term Power Purchase Agreements (PPAs) and/or uses green supply contracts and energy attribute certificates.

 

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