L’Oréal takes palm oil sustainable sourcing one step beyond

06/2016 • Updated 19/10/2016

L’Oréal published on June 2016 its first Palm Oil Progress report highlighting the latest results and innovations implemented for 100% responsible sourcing of palm oil and palm oil derivatives.

L’Oréal uses less than 400 tons of palm oil per year but purchases derivatives in a quantity equivalent to 60,000 tons of palm oil. These derivatives are glycerol, fatty acids or fatty alcohols, ingredients used in products for their emollient or foaming properties.

Even though our consumption remains low, representing 0.1% of worldwide palm production, we want to be among the most responsible companies in the world and to lead by example on the issue of palm oil.

Since 2012 100% of our palm is certified through RSPO certification. But the challenge for a company like L’Oréal is the traceability of the supply chain of palm oil derivatives and how to improve the practices within this supply chain.

We pursue a threefold innovative approach.

1. Tracing back derivatives to make full transparency:

L’Oréal goes one step further than RSPO certification, in order to ensure a deforestation-free and sustainable palm production. Since 2014, we deployed an unprecedented approach within the oleo-chemicals sector and started to map our entire supply chain and to trace derivatives back to their origin. In 2015, L’Oréal achieved to trace back 80% of its derivatives up to the level of refineries, and 50% up to the mills. This encouraging first outcome demonstrates that tracing back derivatives is feasible. By end of 2016, we will have achieved 100% traceability, a first step to ensure compliance to Zero Deforestation among the concerned suppliers.

2. Supporting independent smallholders

L’Oréal is also committed to support independent smallholders, who face challenges such as deforestation and difficult living conditions. Through a multi-stakeholder partnership, L’Oréal helps to connect independent smallholders to the market demand for “Zero Deforestation” palm oil, fostering sustainable agricultural practices.

The Group aims to support the effort of all stakeholders to commit to sustainable palm sourcing and achieve Zero deforestation.

3. Driving change in the palm sector by transforming purchasing policies.

L’Oréal created a “Sustainable Palm Index”. These new evaluation criteria for assessing palm derivatives suppliers are based on their commitments and achievements as regarding supply chain knowledge, sustainable sourcing practices and compliance with L’Oréal Zero Deforestation policy. By end 2016 we will publish this new Sustainable Palm Index and make it available for all companies, business and partners of the palm sector. Our aim is to support the effort of all stakeholders to commit to sustainable palm sourcing and achieve Zero deforestation.

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More than 40 000

40,000 formulas in all 19 types of product made by the Group were analysed by our experts in 2014 and 2015.

* shampoos, conditioners, shower gels, skincare products, cleansers, hair colouring, styling products, perms, deodorants, suncare products, make-
up and fragrances.

2015 74 %
2014 67 %

New or renovated products have an improved environmental or social profile in 2015. Our target: 100% by 2020.

43 %

of new or renovated products have an improved environmental or social profile thanks to packaging with a smaller environmental footprint.

« Nous sommes tous mobilisés pour construire un Loréal plus durable. »

Alexandra Palt

Directrice Responsabilité Sociétale et Environnementale



Find all our publications regarding our sustainability commitments as well as press kits and videos in the Resources section.

All resources
2015 report

Our 2015
progress report

Download the 2015 progress report