L'Oréal's Approach to Sourcing Raw Materials Sustainably

Sourcing raw materials sustainably is vital for procurement, helping to minimise negative environmental, social and economic impacts throughout the supply chain.

Sustainable sourcing can reduce waste, pollution and greenhouse gas emissions, helping to preserve natural resources and biodiversity for future generations.

The business case for sustainable procurement

Sustainable procurement can also help to increase supply chain resilience by reducing the risk of disruptions from resource shortages or regulatory changes.

Often it leads to lower operational costs through improved efficiency and reduced waste.

It can also strengthen a brand's reputation and help to meet growing consumer demand for ethically and environmentally responsible products, giving businesses a competitive advantage.

A leading company trying to make its sourcing of raw materials sustainable is L'Oréal.

The business cites nature as a key source of inspiration for its products, providing the raw materials that fuel innovation and reminding the team of its responsibility to protect and preserve natural ecosystems.

For L'Oréal, using 1,600 ingredients sourced from 350 plant species, is reliant on a healthy and diverse ecosystem.

With the company transitioning to more bio-based ingredients, it has doubled down on its commitment to responsible and sustainable sourcing.

L'Oréal's three nature-based pillars

To guide its nature-related actions, the organisation has adopted the three pillars of the conservation hierarchy:

• Avoid
• Reduce
• Restore and Regenerate

L'Oréal also aims to transform the overall systems that its value chain depends on through investment in partnerships and solutions that safeguard biodiversity and regenerate landscapes.

In 2025, L'Oréal was awarded the EcoVadis Platinum medal rating with a score of 84 out of 100.

This recognition ranks L'Oréal in the top 1% of the highest-rated companies in the world among 150,000 companies assessed, highlighting just how sustainability focused it is.

Ambitious targets for 2030 and beyond

By 2030, L'Oréal aims to:

• 90%: Sustainably source at least 90% of biobased materials used in formulas and packaging
• 75%: Source over 75% of ingredients from nature or from recycled materials in formulas
• Regenerate more land than its footprint to enhance the health and resilience of our priority ecosystems

There is also a focus on water, another nature pillar.

Responsible water stewardship is high on the agenda when it comes to the value chain and its communities.

This includes optimising its industrial processes and resource use, as well as creating products that help consumers require less water for their everyday beauty and hygiene needs — especially in water-stressed regions.

L'Oréal's ambitions on water include targets up to 2030, by which it will aim to:

• 100%: Use 100% recycled or reused water for industrial purposes in our factories
• Offer water-saving products or technologies to enable consumers in water-stressed markets to meet their hygiene and beauty needs.

Leadership in corporate transparency

In 2025, L'Oréal was recognised for its leadership in corporate transparency and performance on climate change, forests and water security by the global environmental non-profit, CDP, securing a place on its prestigious annual 'A List' for the ninth year running.

L'Oréal Groupe remains the only company to have achieved this distinction for nine consecutive years.

Key achievements include reaching 91% renewable energy at the Group's sites, reducing water withdrawals from its factories and distribution centres by 54% per finished product and achieving 93% of the biobased ingredients from its formulas being traceable and derived from sustainable sources.

"Achieving a ninth consecutive triple 'A' score from CDP is a testament to the unwavering commitment of our teams and the deep integration of sustainability into our business model. We are proud of this continued recognition," says Nicolas Hieronimus, Chief Executive Officer, L'Oréal Groupe.

"This distinction not only recognises the great strides we've made, but also fuels our responsibility to pursue a more sustainable future," says Ezgi Barcenas, Chief Corporate Responsibility Officer, L'Oréal Groupe.

"We are driven by the urgency and scale of challenges facing our planet and remain committed to working transparently and collaboratively to drive meaningful transformation across our value chain."

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