07.23.22
L'Oréal Group’s North Asia Zone is the first of the company’s zones worldwide to achieve carbon neutrality across all operated sites, plants, distribution centers, offices and research and innovation centers spanning five geographic markets of Mainland China, Japan, South Korea, Hong Kong and Taiwan.
This achievement marks a significant milestone in the company’s efforts in fighting against the pressing threat of climate change.
“With the United Nations warning that every country, city, organization should adopt plans for net zero – the call to act has seen L’Oréal North Asia Zone rise to the challenge and show true leadership. As a company, we recognized the gravity of the global environmental crisis more than 20 years ago and began reducing our environmental footprint in our manufacturing plants and distribution centers back in 2009,” said Fabrice Megarbane, president of L’Oréal North Asia and CEO of L'Oréal China. “With the launch of our ambitious sustainability commitment in 2020-- L'Oréal for the Future-- which states that all L'Oréal sites worldwide must reach carbon neutrality by 2025, the North Asia Zone accelerated its efforts to achieve its goals, which we are immensely proud of.”
Megarbane announced the news at 2022 L'Oréal North Asia & China Indirect Sourcing Supplier Day in Shanghai, where the company brought together around 100 strategic suppliers and key stakeholders to discuss collective efforts and solutions on CO2 emissions reduction.
L'Oréal North Asia Zone has achieved several firsts on the company’s CO2 emissions reduction roadmap. Mainland China was one of the first markets worldwide to achieve carbon neutrality for all L'Oréal sites in 2019. Now, with the Japan market achieving carbon neutrality for its sites in July 2022, L'Oréal North Asia became the first zone of the L'Oréal Group to achieve carbon neutrality for all the sites L’Oréal operates.
In North Asia, L'Oréal have implemented dynamic measures and a variety of strategic approaches across the different sites that have contributed to the goal of reaching carbon neutrality for each of them.
In both Mainland China and South Korea, CO2 emissions reduction through installing onsite renewable energy-generating facilities has been an important contribution to the overall effort. At L’Oréal’s BeautyCos plant in Suzhou, onsite solar panels have been generating 1.2 million kilowatt hours of electricity every year since 2015. Similarly, the rooftop solar panels installed at L’Oréal’s distribution center in Suzhou provided 100% of its 4.4 million kilowatt hours of electricity needs since 2019.
Onsite Facilities Adopting Diverse Renewable Energy Solutions
L’Oréal’s BeautyCos plant is a showcase of how diverse sustainable energy solutions work together to achieve CO2 emissions reduction goals. In addition to its solar power generating system, a Combined Heat and Power (CHP) system was built onsite to use biogas to produce steam, electricity and heat with high efficiency. The biogas is generated by a biomass energy project at Suzhou Industrial Park, which uses kitchen and landscaping waste as raw materials for energy generation. Combining solar power generation, CHP system installation and sourcing renewable electricity nearby, BeautyCos achieved carbon neutrality in 2019.
Sourcing Local Renewable Energy in Five Markets
In addition to having onsite facilities generating renewable energy, L’Oréal sites in North Asia pursued the best way to source local renewable energy. In Mainland China, L’Oréal’s Yichang Tianmei Plant achieved carbon neutrality with 100% use of hydropower in 2018. Other L’Oréal China offices and campuses adopted solutions to reduce drastically their CO2 emissions through partnerships with a renewable energy project in Jiangsu Province.
L’Oréal Korea started participating in Korea’s RE-100 system (a global initiative on renewable power) in 2021 and received renewable energy certification from Korea Electric Power Corporation for the energy used across all its offices and distribution centers.
In its Japanese plant in Gotemba, L’Oréal has installed new electrical boilers using renewable electricity. L'Oréal Japan met its carbon neutrality goals by participating in the Green Power and Heat Certificates initiative for its research & innovation center, offices and plant. The initiative sponsors renewable energy generation facilities that are validated by the local authorities that encompass areas such as wind, biomass, hydro, and solar power stations.
L'Oréal Taiwan is the first company in the market to channel its renewable energy efforts through Power Purchasing Agreements with local authorities and the landlord of the commercial building where it operates. This enabled the organization to achieve its carbon neutrality status in late 2021.
Similarly, L’Oréal Hong Kong site achieved carbon neutrality in 2020 with the implementation of energy efficiency measures the installation of LED lighting to reduce energy consumption and sourcing local renewable electricity for its office.
“Going forward, we will further collaborate with our stakeholders to reduce CO2emissions along the entire industry value chain through product innovation and consumer empowerment programs, transportation upgrading and collaboration with strategic suppliers,” said Pankaj Gupta, senior vice president of L’Oréal North Asia and China Operations.
The L’Oréal Group has set long-term goals to reduce all its greenhouse gas emissions by 25% by 2030 in absolute terms compared to 2016, and aims to reach net zero emissions by 2050. These goals were set in accordance with the Science Based Targets, which aim to limit global warming to 1.5°C, according to climate scientist recommendations, as set by the Paris Agreement.