Restoring Nature, Building Resilience

L'Oréal Reaffirms Commitment to Nature with Ambitious and Innovative Initiatives

L'Oréal recognizes that nature is crucial for its business, as the Group uses more than 1,600 plant-derived ingredients, sourced from 350 plant species grown in more than 100 countries. Aware of the urgent need to preserve and restore biodiversity, L'Oréal organises its activities around two priorities: combatting deforestation, conversion and the degradation of forestry ecosystems; and restoring degraded ecosystems and regenerating nature.

In concrete terms, L'Oréal has defined the following priority areas to reduce its environmental impact:

• constantly improving the environmental profile of its products
• prioritising the use of biobased ingredients
• restoring priority ecosystems linked to its value chain

As we increase our use of natural ingredients, we're more than ever committed to responsible sourcing, establishing transparent and sustainable supply chains.

L'Oréal is going beyond traditional approaches by creating a comprehensive framework for nature restoration and conservation, tackling the critical issue of nature's undervalued role in our economy. In 2020, the Group launched the L'Oréal Fund for Nature Regeneration. Endowed with €50 million, its mission is to restore one million hectares of ecosystems by 2030, with the overall goal of capturing 15 to 20 million tonnes of carbon and creating jobs in the process. Building on the learnings of our L’Oréal Fund for Nature Regeneration, we are determined to accelerate our investments in rehabilitating degraded lands and restoring ecosystems, focusing on areas linked to our operations and to our strategic sourcing areas.

Our goal is to have a regenerative impact on priority landscapes in our value chain, restoring more than we use and improving the health and resilience of vital ecosystems such as forests and watersheds, while simultaneously enhancing the livelihoods and resilience of local communities. Achieving this requires collaborative action and a fundamental shift in how we interact with nature at landscape level, which is why we actively engage in collaborative nature partnerships in our priority ecosystems.

By the end of 2024, out of more than 100 projects initially analysed, 24 had been selected for in-depth study, and 6 had ultimately benefited from commitments totalling more than €24 million. L’Oréal's impact, dependency, and risk assessment highlighted coconut-based raw materials as a key feedstock. In 2024, the L’Oréal Fund for Nature Regeneration invested in the Mindanao Forests for People and Sustainable Livelihoods (MinFor) Project on the Philippine island of Mindanao. This long-term, sustainable rural development initiative focuses on forest conservation and protection in collaboration with Indigenous Peoples. The project's ultimate goal is to encompass more than 450,000 hectares.