L’Oréal Nears Carbon Neutrality in US

L'Oréal USA expects to achieve carbon neutrality in 2019 for all 21 of its US manufacturing and distribution facilities with a financially sustainable approach that could potentially serve as a model to support new renewable natural gas (RNG) projects in the future. In order to reach this milestone, L'Oréal USA is adding to its diversified energy portfolio with RNG purchased from a new processing facility in Kentucky. The company currently has 17 renewable energy installations across the country, including large on-site solar arrays in Arkansas, New Jersey and Kentucky as well as wind turbines in Texas. The RNG purchased from the new project alone is expected to eliminate the carbon equivalent of 1.8 million gallons of gasoline consumed per year. 
 

“Achieving carbon neutrality for all of our operations facilities furthers our commitment to being a sustainability leader in the United States,” said Frédéric Rozé, president and CEO of L'Oréal USA. “We have seen that a dedication to sustainability fosters innovation, inspires creativity and builds a strong team spirit. This new milestone can be credited to our passionate teams and their vision in finding a new renewable energy approach that benefits one of our local communities while being a long-term, financially viable solution.”


L'Oréal USA had already surpassed the company's 60% carbon emissions reduction goal in absolute terms in 2017, reaching an 84% reduction from a 2005 baseline and achieving 100 percent renewable electricity use for all 21 US manufacturing and distribution facilities. As the US Operations team considered approaches to reach carbon neutrality, they were driven by L'Oréal's sustainability philosophy to pursue a local strategy that would have a positive impact in the communities in which it operates while providing “additionality,” meaning the project would not be possible without the company's committed involvement. 


After an 18-month research phase, the team identified a potential renewable energy production solution utilizing landfill gas (LFG) from the Big Run Landfill in Ashland, Kentucky, which is 135 miles from the L'Oréal USA plant in Florence, Kentucky. At the Center for Climate and Energy Solutions (C2ES) Climate Leadership Conference in Denver today, L'Oréal USA announced that it has signed a 15-year agreement to purchase approximately 40 percent of the RNG produced from the Big Run Landfill. The RNG L'Oréal USA purchases will be directed into the interstate natural gas transmission system. L'Oréal USA's long-term purchase commitment of the RNG was a key underwriting component that led to the financing of the project.