Lancôme

RATING

SECTOR

Consumer Packaged Goods

WEBSITE

CONTACT

29 Rue du Faubourg, Saint Honore Paris, 75008 France

T: 33-1-42-65-30-74

STOCK EXCHANGE

LISTING

  • #75 World’s Most Valuable Brands 2020
  • 2019 Top 5 Bloomberg Gender Equality Index
  • #4 on Universum’s new Global Diversity & Inclusion Index

EMPLOYEES

11,000

CHIEF SUSTAINABILITY OFFICER

Alexandra Palt  

AWARDS

  • CDP A-rating 2019
  • 2019 World’s Most Ethical Companies by Ethisphere

CONTENT SOURCE

FURTHER READING

Report created by Cec Ehrhard 

Lancôme

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  Overview

Company Activity

Lancome is a luxury french fragrance and cosmetic brand under the parent company L’Oréal. 

Created in 1935 by Guillaume d’Ornano, Lancome’s first fragrance was presented at the World’s Fair in Brussels. Then in 1964, L’Oréal acquired Lancome and continued to grow the brand.

Lancome has partnered with renowned actresses and brand ambassadors such as Kate Winslet, Emma Watson, Drew Barrymore, Zendaya, and Julia Roberts. The brand is also advertised in top high end luxury publications like french Vogue and Harper’s Bazaar.

Lancome is one of five subsidiaries under L’Oréal; the other cosmetics brands include Maybelline, NYX Cosmetics, Garnier, Matrix Essentials. L’Oréal produces a range of products in its portfolio from professional products to “L’Oréal Luxe” to consumer products and active cosmetics.

Company Sustainability Activity

The parent company L’Oréal began their “Sharing Beauty With All” sustainable program in 2013.

Highlights

  • In 2019, 100% of the paper used for product instructions are certified

Targets

Based on parent company L’oreal 

  • By 2025, 100% of L’Oréal new displays will be ecodesigned, taking into account circular economy principles for end of life management, and 100% of their new Free Standing Stores will be designed and built following our sustainability principles
  • L’Oréal is committed to achieve carbon neutrality in all sites by 2025, by improving energy efficiency and using 100% renewable energy
  • By 2030, strategic suppliers will reduce their direct emissions (scopes 1 and 2), by 50% in absolute terms, compared to 2016
  • By 2030, L’Oréal will innovate to enable consumers to reduce the greenhouse gas emissions resulting from the use of L’Oréal products by 25% compared to 2016, on average and per finished product
  • By 2030, L’Oréal will reduce by 50% on average and per finished product, the greenhouse gas emissions linked to the transport of our products, compared to 2016
  • By 2030, L’Oréal will also innovate to enable our consumers to reduce by 25%, on average and per finished product, the water consumption linked to the use of our products, compared to 2016
  • In 2030, 100% of the water will be recycled and reused in a loop for industrial processes 
  • In 2030, all of L’Oréal’s strategic suppliers will use water sustainably in the areas where they operate.
  • By 2030, 100% of the biobased ingredients for formulas and packaging materials will be traceable and will come from sustainable sources. None of them will be linked to deforestation
  • By 2030, L’Oréal will ensure that 100% of their strategic suppliers’ employees will be paid at least a living wage, covering their basic needs and those of their dependents, calculated in line with best practices

Progress

  • In 2019, 99.9% of cardboard for product packaging and 94% of the paper and cardboard used in POS(1) materials was certified, as well as 98% of the soya oil used by L’Oréal. 
  • L’Oréal has purchased 100% of its argan oil from six socially responsible cooperatives since 2008.
  • 35% reduction of waste generated in plants and distribution centres since 2005
  • 78% reduction in CO2 emissions in absolute terms in plants and distribution centres since 2005
  • 51% reduction in water consumption since 2005
  • 89% of brands have assessed their environmental and social impact

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

Based on information from parent company L’Oreal

SDG 3

  • The L’Oréal Corporate Foundation’s “Beauty for a Better Life” programme provides access to beauty and wellness treatments for women who are ill or in vulnerable situations, through partnerships with hospitals and community organizations
  • In 2019, the foundation supported over 15,000 people in France by providing over 65,000 beauty and wellness treatments

SDG 5

  • The L’Oréal Corporate Foundation supports female scientists in Africa so that they can contribute fully to developing research-based solutions. Since the creation of the L’Oréal-UNESCO “For Women in Science” Award, 11 scientists and 129 talented women from Africa have been put in the spotlight
  • 54% of key positions held by women

SDG 8 

  • L’Oréal partnered with two universities to launch the “Programa Avanza” initiative, which gives young people from underprivileged communities easier access to employment

SDG 9

  • At the end of 2018, L’Oréal created its capital investment fund, BOLD (Business Opportunities for L’Oréal Development), which aims to acquire minority shares in innovative companies and brands with high-growth potential and to invest in new business models that combine innovation and sustainable development
  • To encourage more Operations employees to play an active role in innovation, L’Oréal also launched Make Your Technology (MYT) in 2019, the first-ever in-house technology 4.0 incubator devoted to industrial challenges and logistics

SDG 12

  • Beginning in 2007, L’Oréal launched a responsible packaging policy that includes the eco-design 3R concept: respect the consumer and the environment, reduce packaging volume and weight, replace materials with recycled or renewable options.
  • L’Oréal encourages its suppliers to be a part of its approach. The Buy & Care programme helps to share best practices, solutions and company norms

SDG 14

  • By launching its Water Lovers initiative to raise awareness about preserving water resources and minimising the impact of its products on aquatic ecosystems, and by partnering with NGOs(3) Mission Blue and Tara Ocean Foundation, Biotherm has continuously proven its commitment to protecting the planet’s oceans. Its products, such as the 95% biodegradable Waterlover sunscreen, also embody its commitments

SDG 17

  • Under the leadership of NGO(1) Care France and L’Oréal, BNP Paribas, Kering, Sodexo and BBDO France have joined our cause to ratify a convention to serve as the leading legal protection for workers worldwide when it comes to gender-based violence and sexual harassment. L’Oréal is a member of WEConnect International in a partnership that aims to empower and connect women entrepreneurs

Secondary SDGs: 13

Evaluation

Lancome, as a subsidiary brand of L’Oréal, has limited information on its sustainability initiatives and strategies. Lancome relies on their parent company for specific sustainability targets for the upcoming years. The goals range from climate change to water conservation to biodiversity within product ingredients.

While Lancome lacks achievements, L’Oréal has certifications and listings. The parent company is somewhat compliant with the UN Sustainable Development Goals. However, the conglomerate is still producing mass amounts of plastic and packaging waste.

L’Oréal has made great strides in its process to become a sustainable company, but there’s a lot more work to be done within the upcoming years. Lancome has been given a “C” rating.

Analyst Outlook: Neutral

It is evident that L’Oréal is achieving progress and goals in sustainability. Lancome would benefit from creating their own sustainability strategy. 

Key Points

  • Lancome relies heavily on parent company for all sustainability information
  • Secondary certifications and a few awards 
  • L’Oreal is committing to defining a list of packaging to be designated as problematic or unnecessary by 2021 and taking measures to eliminate that packaging by 2025. However, there’s a lot of work to be done, and the immediate next steps for the U.S. Plastics Pact include creating a clearer roadmap to lay out the steps to achieving the outlined targets.

 

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