L’Oréal Achieves 100% Renewable Energy Across SAPMENA Zone
L'Oréal has reached 100% renewable energy across its operated sites in the South Asia Pacific, Middle East, and North Africa (SAPMENA) Zone, including Thailand, as of the end of 2023. This achievement spans all factories, distribution centres, administrative offices, and a research and innovation centre within the Zone. It marks a significant milestone in the Zone’s sustainability journey and comes during a period of dynamic growth for L'Oréal SAPMENA, with double-digit production output and sales growth since 2021.
“Sustainability is at the heart of our business growth strategy. L'Oréal’s SAPMENA Zone covers an expansive geography, spanning from New Zealand to Morocco, and is a major growth engine for L’Oréal, where one in two new consumers will come from in the next decade. This region is among the most affected by climate change, and as the world’s leading beauty company, it is critical that we embed sustainable practices into our operations as we grow. Reaching 100% renewable energy is a significant achievement, 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,” said Vismay Sharma, President of L’Oréal SAPMENA Zone.
Diverse Solutions for a Diverse Region
With 23 operating sites spanning a vast geography, L’Oréal SAPMENA employs a range of renewable energy solutions, including solar deployments, hydroelectric power, and electric boilers to replace fossil fuel-powered ones. Where on-site renewable energy production is not possible, L’Oréal SAPMENA secures long-term Power Purchase Agreements (PPAs), green supply contracts, and energy attribute certificates.
L'Oréal SAPMENA’s multi-pronged strategy to achieve 100% renewable energy includes:
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Reducing energy consumption and withdrawal across all SAPMENA sites: Implementing energy-efficient equipment and practices across all 23 operating sites. By 2023, overall energy intensity across SAPMENA decreased by 18% compared with 2019.
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Utilising diverse renewable energy solutions in factories: L’Oréal SAPMENA’s four factories in Egypt, India, and Indonesia use renewable energy sourced from wind, biomass, hydroelectric, or solar power to reduce greenhouse gas emissions. All four factories have replaced fossil fuel boilers with electric or biomass/biofuel boilers.
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Increasing on-site renewable energy generation: Photovoltaic solar panels have been installed at offices and distribution centres where feasible, including ground-mounted systems, rooftop installations, and car park canopies.
Commitment to Sustainability in Thailand
In Thailand, L'Oréal is committed to reducing its environmental impact through several initiatives, including:
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Reducing greenhouse gas emissions by implementing electric trucks for deliveries in Bangkok and its vicinity.
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Limiting air freight imports.
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Establishing a green distribution centre.
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Opening a new, more sustainable office in 2024, equipped with smart energy-efficient systems for lighting and temperature control.
In Pursuit of Net Zero
Sustainability is a continuous journey that spans every stage of the value chain. Achieving 100% renewable energy in 2023, two years ahead of the 2025 commitment, represents a milestone in L’Oréal SAPMENA’s broader sustainability efforts. The company remains committed to operating with 100% renewable energy and managing energy efficiently across all sites in the coming years.
L’Oréal is also addressing carbon reduction in packaging, logistics, and transportation while investing in upskilling and educating its strategic suppliers. By 2030, the company aims to enable consumers to reduce greenhouse gas emissions resulting from product use by 25% compared to 2016, on average and per finished product.
Globally, the L'Oréal for the Future programme, launched in 2020, embodies the Groupe's sustainability ambitions centred on three strategic pillars:
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Transforming business activities to respect planetary boundaries by limiting impacts on climate, water, biodiversity, and resources.
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Empowering its business ecosystem to transition to a sustainable world.
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Contributing to solving global challenges by supporting urgent social and environmental needs.
