

Sector
Employee count
90,000 employees
Location
Operating in 150 countries by 2024. 36 factories, including 11 in France, which account for one-quarter of production.
View their website
https://www.loreal.com/fr



Sector
Employee count
90,000 employees
Location
Operating in 150 countries by 2024. 36 factories, including 11 in France, which account for one-quarter of production.
View their website
https://www.loreal.com/fr

Discuss your challenges, priorities, and the right path forward for your organization with the Carbone 4 teams.
Assessing the Actual Carbon Impact of Different Types of Green Electricity Supply
This methodology makes it possible to assess the carbon impact of each contract, in line with ongoing regulatory changes, and to develop a comprehensive overview of the procurement strategy.
Define scenarios for the evolution of your procurement portfolio
The methodological framework makes it possible to define different procurement strategies—based on procurement methods (self-consumption, power purchase agreements, joint procurement, and unlinked guarantees of origin), technologies (wind, solar, hydro), and geographic locations; to assess their carbon benefits; and to select the configurations with the greatest impact.
Focus financial resources on the projects with the greatest impact
Being able to compare emission reductions with the costs of each supply contract makes it possible to prioritize investments.
Methodology
Better Accounting for Emissions Associated with the Purchase of Green Electricity to Achieve True Decarbonization
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The group has committed to sourcing 100% of its sites' electricity from renewable energy by 2025, with the goal of reducing the associated greenhouse gas emissions.
To date, the carbon reporting standards—the Greenhouse Gas (GHG) Protocol and the Science Based Targets initiative (SBTi)—allow for the inclusion of any type of green electricity contract to reduce emissions associated with electricity consumption. However, it has been shown that low-quality guarantees of origin—that is, those that take into account neither spatiotemporal consistency nor financial contributions to the development of new renewable electricity generation assets—have little impact on the decarbonization of the grid. This is why the GHG Protocol and the SBTi are currently being revised to better incorporate these criteria.
Recognizing that the existing framework was insufficient to reflect the actual decarbonization of its sourcing strategy, L’Oréal sought to define qualitative criteria that are clear and applicable to all geographic markets in order to measure improvements in the environmental impact of its supply chain on an ongoing basis and with each new contractual opportunity.
In this context, Carbone 4 worked with L'Oréal to develop a framework for assessing the carbon impact of the group’s various sourcing methods (self-consumption, green power purchase agreements, joint procurement, and guarantees of origin).
Carbone 4 has worked with L’Oréal to develop a simple and practical rating framework that is compatible with ongoing changes in standards. This framework is based on three pillars: spatial consistency, temporal consistency, and additionality.
A representative sample of L'Oréal’s various contracts was analyzed using this methodological framework, making it possible to assess the actual carbon impact of the Group’s supply portfolio. In addition to an assessment of current contracts, Carbone 4 proposed two scenarios to project the impact of changes to the Group’s supply portfolio:
Finally, a process has been initiated to prioritize procurement, based on both the emissions reductions associated with the contracts in question and their financial impact, in order to invest where the impact is greatest.