Assessing suppliers’ CSR performance
04/2016 • Updated 14/04/2017
By 2020, 100% of L’Oréal’s strategic suppliers will be involved in its sustainability programme
We select them on the basis of their environmental and social performance. We also providing them with training tools and we help them to build their environmental strategy.
Since its suppliers’ activities represent more than 20% of its carbon emissions, L’Oréal considers such activity to be part of its broader environmental footprint.
Thus, we wish to have similar goals as our “strategic” suppliers : those suppliers provide the Group with significant added value by contributing their influence, innovation, strategic alignment and geographic positioning in long-term support of L’Oréal’s strategy.
In 2016, they represented 74% of our direct purchases (raw materials, packaging and outsourcing).
Measuring our suplliers CSR performance
Since 2002, all buyers have been implementing the responsible sourcing policy known as the L’Oréal Buy & Care programme.
The Purchasing teams focus in this manner on their supplier relations, based on five performance pillars: Quality, supply chain & service, CSR, innovation and competitiveness. This approach is established by way of a harmonised world assessment for all fields of purchasing.
The CSR pillar represents 20% of the total assessment. It covers both environmental and social considerations through a set of criteria including:
the results of social audits: 1,187 social audits were carried out in 2016, for a total of more than 8,200 social audits since 2006;
an Ecovadis assessment of suppliers’ CSR policies: by the end of 2016, more than 500 suppliers – 144 of them strategic (up from 400 suppliers in 2015, of which 137 were strategic) – had been assessed, representing a total of 83% of the Group’s strategic suppliers;
capacity to offer responsible products and services (Green chemistry, eco-friendly packaging etc..);
ratings in the programmes of the CDP, an independent international organisation that evaluates the environmental performance of companies.
Helping them to build their environmental strategy
We also provide our suppliers with in-service training tools (see box). Furthermore, we ask all our strategic suppliers to work with the CDP, within the scope of the CDP Supply Chain programme. In 2016, 291 suppliers undertook to do so (against 237 in 2015).
We also defined the ambition for 2020 that suppliers representing 80% of direct purchases would participate in the CDP Supply Chain, set themselves targets for reducing the carbon footprint and communicate on their action plans. In 2016, the suppliers having met this commitment accounted for 57% of our direct purchases.
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people from underprivileged communities have gained access to employment. Our target: 100,000 people by 2020.
of our strategic suppliers have been evaluated and selected based on their environmental and social performance in 2016. They represent 74% of direct purchases (raw materials, packaging and contract manufacturing). Our target: 100% by 2020.
of L’Oréal’s permanent employees benefit from healthcare coverage reflecting best practices in their country of residence.
« Nous sommes tous mobilisés pour construire un Loréal plus durable. »Alexandra Palt
Directrice Responsabilité Sociétale et Environnementale