Shanghai, 22 July 2022 - L'Oréal Group’s North Asia Zone is the first of the company’s zones worldwide to achieve carbon neutrality across all operated sites, plants, distribution centers, offices and research & innovation centers spanning five geographic markets of Mainland China, Japan, South Korea, Hong Kong and Taiwan. This achievement marks a significant milestone in the company’s efforts in fighting against the pressing threat of climate change.
“With the United Nations warning that every country, city, organisation should adopt plans for net zero – the call to act has seen L’Oréal North Asia Zone rise to the challenge and show true leadership. As a company, we recognized the gravity of the global environmental crisis more than 20 years ago and began reducing our environmental footprint in our manufacturing plants and distribution centers back in 2009. With the launch of our ambitious sustainability commitment in 2020 - L'Oréal for the Future - which states that all L'Oréal sites worldwide must reach carbon neutrality by 2025, the North Asia Zone accelerated its efforts to achieve its goals, which we are immensely proud of.” said Mr. Fabrice Megarbane, President North Asia & CEO L’Oréal China.
Mr. Megarbane announced the news at 2022 L'Oréal North Asia & China Indirect Sourcing Supplier Day in Shanghai, where the company brought together around 100 strategic suppliers and key stakeholders to discuss collective efforts and solutions on CO2 emissions reduction.
L'Oréal North Asia Zone has achieved several firsts on the company’s CO2 emissions reduction roadmap. Mainland China was the first market worldwide to achieve carbon neutrality for all L'Oréal sites in 2019. Now with the Japan market achieving carbon neutrality for its sites in July 2022, L'Oréal North Asia became the first zone of the L'Oréal Group to achieve carbon neutrality for all the sites L’Oréal operates.
In North Asia, L'Oréal have implemented dynamic measures and a variety of strategic approaches across the different sites that have contributed to the goal of reaching carbon neutrality for each of them.
Generating renewable energy onsite
In both Mainland China and South Korea, CO2 emissions reduction through installing onsite renewable energy generating facilities has been an important contribution to the overall effort. At L’Oréal’s BeautyCos plant in Suzhou, onsite solar panels have been generating 1.2M kWh of electricity every year since 2015. Similarly, the rooftop solar panels installed at L’Oréal’s distribution center in Suzhou provided 100% of its 4.4M kWh electricity needs since 2019.
Onsite facilities adopting diverse renewable energy solutions
L’Oréal’s BeautyCos plant is a showcase of how diverse sustainable energy solutions work together to achieve CO2 emissions reduction goals. In addition to its solar power generating system, a Combined Heat and Power (CHP) system was built onsite to use biogas to produce steam, electricity and heat with high efficiency. The biogas is generated by a biomass energy project at Suzhou Industrial Park, which uses kitchen and landscaping waste as raw materials for energy generation. Combining solar power generation, CHP system installation and sourcing renewable electricity nearby, BeautyCos achieved carbon neutrality in 2019.
Sourcing local renewable energy in five markets
In addition to having onsite facilities generating renewable energy, L’Oréal sites in North Asia pursued the best way to source local renewable energy.
In Mainland China, L’Oréal’s Yichang Tianmei Plant achieved carbon neutrality with 100% use of hydropower in 2018. Other L’Oréal China offices and campuses adopted solutions to reduce drastically their CO2 emissions through partnerships with a renewable energy project in Jiangsu Province.
L’Oréal Korea started participating in Korea’s RE100 system (a global initiative on renewable power) in 2021 and received renewable energy certification from Korea Electric Power Corporation (KEPCO) for the energy used across all its offices and distribution centers.
In its Japanese plant in Gotemba, L’Oréal has installed new electrical boilers using renewable electricity. L'Oréal Japan met its carbon neutrality goals by participating in the Green Power and Heat Certificates initiative for its research & innovation center, offices and plant. The initiative sponsors renewable energy generation facilities that are validated by the local authorities that encompass areas such as wind, biomass, hydro, and solar power stations.
L'Oréal Taiwan is the first company in the market to channel its renewable energy efforts through Power Purchasing Agreements with local authorities and the landlord of the commercial building where it operates. This enabled the organization to achieve its carbon neutrality status in late 2021.
Similarly, L’Oréal Hong Kong site achieved carbon neutrality in 2020 with the implementation of energy efficiency measures the installation of LED lighting to reduce energy consumption and sourcing local renewable electricity for its office.
Mr. Pankaj Gupta, SVP for North Asia and China Operations, said: “From today, in North Asia, each L’Oréal product is produced and stored in plants and warehouses that are carbon neutral. Going forward, we will further collaborate with our stakeholders to reduce CO2 emissions along the entire industry value chain through product innovation and consumer empowerment programs, transportation upgrading and collaboration with strategic suppliers.”
The L’Oréal Group has set long-term goals to reduce all its greenhouse gas emissions by 25% by 2030 in absolute terms compared to 2016, and aims to reach net zero emissions by 2050. These goals were set in accordance with the Science Based Targets, which aim to limit global warming to 1.5°C, according to climate scientist recommendations, as set by the Paris Agreement.
For over 110 years, L’Oréal, the world’s leading beauty player, has devoted itself to one thing only: fulfilling the beauty aspirations of consumers around the world. Our purpose, to create the beauty that moves the world, defines our approach to beauty as inclusive, ethical, generous and committed to social and environmental sustainability. With our broad portfolio of 35 international brands and ambitious sustainability commitments in our ‘L’Oréal for the Future’ programme, we offer each and every person around the world the best in terms of quality, efficacy, safety, sincerity and responsibility, while celebrating beauty in its infinite plurality.
With 85,400 committed employees, a balanced geographical footprint and sales across all distribution networks (e-commerce, mass market, department stores, pharmacies, hair salons, branded and travel retail), in 2021 the Group generated sales amounting to 32.28 billion euros. With 20 research centers across 11 countries around the world and a dedicated Research and Innovation team of over 4,000 scientists and 3,000 tech professionals, L’Oréal is focused on inventing the future of beauty and becoming a Beauty Tech powerhouse. More information on https://www.loreal.com/en/mediaroom
About L’Oréal North Asia Zone
L’Oréal North Asia Zone was established in 2021as L’Oréal Group regrouped the geographical scope of its zones to give greater coherence to consumer behaviour and to create synergy within the region. The North Asia Zone comprises of five geographically and culturally connected markets of Mainland China, Japan, South Korea, Hong Kong and Taiwan.
L’Oréal North Asia Zone is the second largest region within the Group, accounting for 30.5% of the Group’s global sales in 2021. Situated in the most beauty intense region with more than one-third of the world’s total beauty consumers, L’Oréal North Asia shapes the future of beauty with its innovation centers in Shanghai, Tokyo and Seoul, while investing in beauty tech transformation as one of the three beauty tech hubs globally. Here, our mission is to strategize, create and activate a powerful ecosystem around the North Asia Beauty Triangle as a competitive edge to unleash sustainable growth for all and inspire the world.