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L'Oréal Recognized By Carbon Disclosure Project (CDP) With Carbon Disclosure Leadership Index (CDLI) For Measuring, Managing And Reporting Its Carbon Emissions
Company partners with key suppliers to reduce greenhouse gas emissions
L'Oréal Recognized By Carbon Disclosure Project (CDP) With Carbon Disclosure Leadership Index (CDLI) For Measuring, Managing And Reporting Its Carbon Emissions
Company partners with key suppliers to reduce greenhouse gas emissions
Published 09-20-12
Submitted by L'Oreal
Last week L’Oréal was named among a select group of corporations in the Carbon Disclosure Project (CDP) Carbon Disclosure Leadership Index (CDLI) for its leading practices in the data management of carbon emissions. L’Oréal was one of six companies recognized in the consumer staples category and the only beauty company to achieve this distinction. L’Oréal has reported its emissions to CDP since 2003, but this is the first time for the organization to be commended for its disclosures.
The CDLI, a key component of CDP’s annual Global 500 report, highlights the constituent companies within the FTSE Global Equity Index Series (Global 500) that have displayed a strong approach to information disclosure regarding climate change. CDP represents 655 institutional investors with $78 trillion in assets.
Recognizing the business risks associated with climate change and the impacts along the value chain, L’Oréal invited more than 150 of its top suppliers to participate in the CDP Supply Chain Program this year. L’Oréal’s supply chain contributes an estimated 28% of the CO2 impacts within the product’s lifecycle and the company is committed to a carbon emissions strategy and change along the value chain. This year 133 of the company’s raw material, contract manufacturing, capex, indirect and component suppliers from around the world successfully completed the CDP climate change questionnaire, representing a significant increase over the 48 suppliers who positively responded to L’Oréal’s invitation to participate last year.
“We are pleased with our results on this important initiative and applaud our Supply Team’s efforts to educate and involve so many of our suppliers,” said Inken Dechow, L’Oréal’s Director of Environmental Supply Chain.
“L’Oréal firmly believes that stakeholders need to work together to tackle climate change and other important environmental challenges,” said Miguel Castellanos, L’Oréal Executive Managing Director on Environment, Health and Safety. “Having reduced our own GHG emissions by 29.8% since 2005, we can credibly demonstrate our commitment to addressing the problem and help foster a virtuous emission reduction cycle.”
“Companies that make the Carbon Disclosure Leadership Index have demonstrated strong internal data management practices for the measurement of greenhouse gas emissions and energy use. They are also giving clear consideration to the business issues related to climate change and their exposure to climate-related risks and opportunities,” commented Paul Simpson, Chief Executive Officer of CDP. “This is vital to realizing greater efficiencies, protecting the business from risk and capitalizing on opportunities.”
Hoping to promote best practices beyond its own operations, L’Oréal joined the CDP Supply Chain Program in 2007. The goal of the initiative is to encourage suppliers to measure and manage their CO2 emissions. CDP’s mission is to accelerate solutions to climate change and water management by putting relevant information at the heart of business, policy and investment decisions.
Earlier this year L’Oreal convened its top 20 US suppliers at a Supplier Sustainability Forum to exchange in an open dialogue around L’Oréal’s sustainability strategy and how that strategy is implemented around the world and to discuss best practices and common challenges. The key suppliers, gathered in New York City, were also introduced to the CDP Supply Chain program as well as the company’s new Solidarity Sourcing initiative which promotes inclusive business models along the supply chain. The company hosted a similar event for its top 100 global suppliers in June at its headquarters in Paris.
L’Oréal intends to make completion of the CDP questionnaire mandatory for key suppliers in 2013, with emphasis on reporting scope 1 (all the direct emissions from sources that are owned) and 2 (indirect GHG emissions from consumption of purchased electricity, heat or steam) emissions and reduction targets. In addition, the company will continue to innovate to reduce its own operational footprint and implement programs to meet the significant long-term environmental targets for its factories and warehouses which are measured on a like-for-like basis. They include:
2005-2015 Environmental Goals |
Greenhouse Gas Emissions
Reduce by 50% (Absolute Basis)
|
Water Consumption
Reduce by 50% (Liter per unit of finished product) |
Transportable Waste
Reduce by 50% |
2005-2011 L’Oréal Reported Results |
-29.8% CO2 Emissions |
-22.6% Water |
-24.2% Wate |
About L’Oréal
L’Oréal, the world’s leading beauty company, has catered to all forms of beauty in the world for over 100 years and has built an unrivalled portfolio of 27 international, diverse and complementary brands. With sales amounting to 20.3 billion euros in 2011, L’Oréal employs 68,900 people worldwide. Regarding sustainable development, Corporate Knights, a Global Responsible Investment Network, has selected L'Oréal for its 2012 ranking of the Global 100 Most Sustainable Corporations in the World. L'Oréal has received this distinction for the 5th consecutive year. www.loreal.com
About Carbon Disclosure Project
The Carbon Disclosure Project (CDP) is an independent not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information. CDP harnesses the power of market forces, including 655 institutional investors with assets of US$78 trillion, to collect information from companies on their greenhouse gas emissions and assessment of climate change and water risk and opportunity. Over 4,000 organizations across the world’s largest economies now report their greenhouse gas emissions and assessment of climate change risk and opportunity through CDP, in order that they can set reduction targets and make performance improvements. CDP now holds the largest collection globally of primary climate change and water data and puts these insights at the heart of strategic business, investment and policy decisions. Please visit www.cdproject.net to find out more.
L'Oreal
L'Oreal
A worldwide leader in the cosmetics industry, L'Oréal develops innovative products to meet the diverse needs of customers in 130 countries worldwide. Over 3,000 people work in the Group's 14 research centers, located in France, Asia and America. Their findings are responsible for the registration of hundreds of patents annually. Women represent 55% of the research workforce - a percentage unmatched anywhere else in the industry. www.loreal.com
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