Creating A Sustainable and Beautiful Future for All: L’Oréal Philippines Announces Local Sustainability Roadmap Aligned with the Group’s Bold, Global 2030 Targets

Philippines, 23 July 2020 – L’Oréal Philippines today announced its roadmap in contribution to the Group’s global sustainability targets. In collaboration with local stakeholders and partners, the Group’s focus areas for the Philippines are sustainable e-commerce, consumer empowerment and education through Green Beauty, and social empowerment through the nationwide expansion of its beauty education program, Beauty For A Better Life. 

“L’Oréal has put sustainability as a fundamental priority. Our commitments towards 2030 mark the beginning of a more radical transformation and embody our view as to what a company’s vision, purpose and responsibilities should be, to meet the challenges facing the world,” said Supriya Singh, Country Managing Director of L’Oréal Philippines.

“In the Philippines we aim to make the most impact in the areas of environmental stewardship and social empowerment. Our sustainability commitment will embark our teams, our partners and our consumers – and through our collective impact, we aim to create a more sustainable world for beauty,” adds Carmel Valencia, Head of Corporate Communication of L’Oréal Philippines.

Transforming L’Oréal’s business to respect “planetary boundaries”

In the context of growing environmental and social challenges, L’Oréal is accelerating its transformation towards a model respecting planetary boundaries and reinforcing its commitments across the following specific areas: fighting climate change, sustainable water management, respecting biodiversity and the preservation of natural resources, all in accordance with what scientific experts demand and grounded on what the planet needs.  

As concrete examples of what L’Oréal wants to achieve: by 2025, all of the Group’s manufacturing, administrative and research sites will reach carbon neutrality by improving energy efficiency and using 100% renewable energy and by 2030, 100% of the plastics used in L’Oréal’s products’ packaging will be either from recycled or bio-based sources. 

Moreover, the Group will be dedicating €50 million to finance damaged natural marine and forest ecosystems restoration projects through a fund called the L’Oréal Fund for Nature Regeneration and another €50 million will be directed to financing projects linked to the circular economy

Empowering L’Oréal’s consumers to make sustainable consumption choices 

L’Oréal has also affirmed its commitments to engaging its customers, suppliers and partners in the Group’s transformation process.  To empower its consumers to make more sustainable choices, L’Oréal has launched its Product Environmental & Social Impact Labelling endorsed by independent scientific experts, which is a world-first that rates products from A (world class for sustainability) to E based on their environmental impact, for areas including carbon footprint and manufacturing processes.

The first brand to implement the new methodology as of 2020 is Garnier for its hair care products. This labelling will progressively be extended to other countries, L’Oréal’s brands and product categories. 

A Greater Commitment to Addressing Social Challenges 

Commitment to social inclusion, and the economic empowerment of women have become the bedrock of some of the most active advocacies for the L’Oréal Group – globally and in the Philippines. The expansion of their beauty education program, Beauty for a Better Life, is also part of their ongoing commitment to ensuring women in the most underprivileged circumstances are provided means to regain their confidence and self-respect, to enhance their skill-set and are empowered to reintegrate back into society and gain employment or be self-employed. “Our dedication to social empowerment will see the expansion of our livelihood and inclusion commitments and the economic empowerment of women – fundamental advocacies that remain at the heart of our nation’s biggest challenges,” Valencia added. 

Moreover, the Group will be spearheading new programs and partnerships geared towards taking even greater responsibility to address some of today’s most pressing social challenges. L’Oréal Philippines will be cementing key programs with Philippine Business for Social Progress (PBSP), which is one of the brand’s long-standing partners for 10 years and running. 

On a global level, L’Oréal created a €50 million charitable endowment fund, which will support field organizations and local charities in their efforts to fight poverty, help women achieve social and professional integration, provide emergency assistance to refugee and disabled women, prevent violence against women, and support victims. 

Garnier and the Power of “Green Beauty”

“Garnier aims to go further and commit to Green Beauty, an end-to-end approach to sustainability that is set to transform the brand, helping to reduce their environmental impact at every stage of its value chain. We are fuelled by the vision to constantly innovate and reinvent the consumer experience and to empower every consumer to make more informed, sustainable choices,” said Isabel Falco, Marketing Director of Garnier and L’Oréal Paris Philippines.

Garnier plans to launch in the Philippines its Green Parcel and Green Spaces initiatives, and will be championing a Green Education program together with its partners.

Garnier has been at the forefront of powering L’Oréal’s sustainability endeavours. Their products contain more than 90% natural origin ingredients, certified organic product ranges, and vegan formulas. Garnier has also ensured that packaging is made from recycled plastic and is more recyclable, with an end goal to use Zero Virgin Plastic by 2025. In the pipeline are also the inauguration of their Green Stores and Green Parcel initiatives, as well as their Green Education to continue providing an opportunity for consumers to make informed and sustainable choices.

“We will take on greater responsibility, engage our entire ecosystem and demonstrate that companies can be part of the solution to the challenges the world is facing. Our goal is that through this in-depth transformation, we hope to be a catalyst of change in the beauty sector and beyond, and to inspire our partners, our customers and all people to take action with us,” Ms. Singh shares.

About L’Oréal’s sustainability commitments: we are not starting from scratch

Very early on, L’Oréal became aware of the need to respond to environmental challenges. As an industrial company, it decided that tackling the environmental impact of its plants and distribution centers was the most obvious first step, and a necessary one, to begin its transformation process. This first phase is nearly completed. 

  • Since 2005, the Group has reduced the CO2 emissions of its plants and distribution centers by 78% in absolute terms, exceeding its initial target of 60% by 2020, while production volume increased by 37% over the same period. 
  • At the end of 2019, L’Oréal had 35 carbon neutral sites (meaning they use 100% renewable energy), including 14 factories.

In 2013, L’Oréal decided to address the core of its activity: the development of beauty products, its global sustainability programme Sharing Beauty With All, announcing tangible sustainability goals towards 2020. At its core laid an innovative tool known as SPOT (for Sustainable Product Optimization Tool), made to assess and improve the environmental and social performance of products across all brands. Sustainability is now fully integrated into the design process of the Group’s new products, from the earliest stages. 

  • 85% of products created or renovated in 2019 had an improved environmental and social profile. 
  • By end of 2019, L’Oréal has helped 90,635 people from disadvantaged communities find employment through the solidarity purchasing and inclusion programs.
  • L’Oréal is the only company in the world to have achieved an “A” score in all three CDP rankings – climate protection, water management, forest preservation – for 4 years in a row.

About L’Oréal

L’Oréal has devoted itself to beauty for over 100 years. With its unique international portfolio of 36 diverse and complementary brands, the Group generated sales amounting to 29.87 billion euros in 2019 and employs 88,000 people worldwide. As the world’s leading beauty company, L’Oréal is present across all distribution networks: mass market, department stores, pharmacies and drugstores, hair salons, travel retail, branded retail and e-commerce.

Research and innovation, and a dedicated research team of 4,100 people, are at the core of L’Oréal’s strategy, working to meet beauty aspirations all over the world. L’Oréal sets out ambitious sustainable development goals across the Group for 2030 and aims to empower its ecosystem for a more inclusive and sustainable society.

More information:https://mediaroom.loreal.com/

Multi-sectoral group comes together to help entrepreneurs weather pandemic-caused recession

Public encouraged to ‘buy local’ to support small biz owners

The considerable resources of the Association of the Filipino Franchisers Inc. (AFFI), the Department of Trade and Industry (DTI), Go Negosyo, SM Foundation, Security Bank, and Union Bank are being brought to bear in efforts to jumpstart a languid economy stalled by the effects of the three-month long coronavirus lockdown.

The multi-sectoral group is raising awareness on the plight of millions of Micro Enterprises and Small and Mid-Sized Enterprises – collectively, the MSMEs – in the hopes of coaxing the buying public into increased patronage.

The group has thrown together a campaign called BUYANIHAN; a creative juxtaposition of the word buy and the local idiom bayanihan, referring to a spirit of communal unity and cooperation, as an economic lifeline.

Though deadly and extensive, the pandemic is not isolated on the health-front. 

When the enhanced community quarantine (ECQ) was invoked throughout Luzon, establishments providing basic necessities and services were deemed essential and were allowed to remain open, albeit on a skeleton force.

Much of those belonging to the MSMEs, however, were not listed. They were hit hardest due to the closure of malls and retail establishments. As were micro enterprises like barbershops and salons, massage parlors and spas, and the neighborhood street peddlers.

“These businesses have lost a significant amount of income due to the challenges of the ECQ,” said DTI Secretary Ramon Lopez, explaining BUYANIHAN’s rationale. “We need to ensure their survival.”

 

DTI revealed that of the 1.42 million registered businesses, an overwhelming 99.6% belong to MSMEs, with the majority, 88.5%, classified as micro enterprises.

They generate 63.19% of the country’s total employment figures.

“MSMEs are the backbone of our economy. This virus has brought a devastating blow to the physical and financial health of our nation. And we must work together to save both,” continued Lopez. 

Prior to the ECQ, economists projected rosy targets of 6.5% to 7.5% GDP growth for the Philippines this year. 

On March 19, around when the lockdown commenced, those numbers were lowered to a pragmatic 4.3% to a dismal minus (-)3.9%.

Pessimism is reasonable, in light of the wholesale impact on declining transport, tourism, exports, remittances, and reduced consumption; historically, the main driver of the Philippine economy.

Even Facebook last May said that one in three small businesses that have shut down don’t expect to reopen again.

When you consider that most MSMEs are located at the National Capital Region, Region IVA (CALABARZON), and Region III (Central Luzon) – regions in the main island from which 73% of the country’s GDP comes from and where the lockdown was rigorously enforced – then the true weight of the ECQ becomes clear.

This is because MSMEs rely on cash flow for daily operations: salaries to be paid, employee benefits to be fulfilled, rent, loans, supplier accountabilities, and credit card bills are still due. Although the quarantine levels have now lightened, during the ECQ they have had zero cash flow.

Perhaps more than any entity aware of the hit that MSMEs are experiencing is the SM Group, the Philippines’ largest mall operator and consequently it’s biggest retail space lessor. 

Its SM Foundation has been generous in providing funds, medical supplies, and protective equipment. Its SM Supermalls have waived rentals from March 16 to April 14.

“We share our tenant-partners’ concerns at the unfortunate situation and will waive rental charges for those affected and unable to operate during this period,” said SM Supermalls President Steven Tan. “This support forms part of our commitment to fight the effects of the outbreak.”

That alone benefits 19,153 SM mall tenants nationwide whose doors are now slowly but surely reopening for business.

Security Bank, one of the country’s leading universal banks and cited by Asiamoney as the “Best Bank for SMEs” in 2017 and 2019, eased its process for facilitating business loans for MSMEs in need of liquidity and lowered percentage in its Ecommerce payment gateway.

“The COVID-19 pandemic has brought the world unprecedented disruption, but with each of us doing our part, we will overcome this challenge and get better,” said Security Bank President and CEO Sanjiv Vohra.

Meanwhile, Union Bank, ranked by the BankQuality Consumer Survey on Retail Banks as

the second most helpful bank in Asia-Pacific during the coronavirus crisis – the only Philippine bank in the top 20 list – eased up account openings by shifting it online and providing checking accounts with affordable depository requirements, enabling MSMEs to further legitimize their businesses.

So there is hope. 

Easing of quarantine restrictions is a good first step. Provided the population behaves in ways that stem the infectious tide, then the wheels of commerce can start turning again.

And as these economic engines came to a screeching halt, it will take no more than a concerted effort to jolt it back from inertia. A bayanihan movement, if you will. 

Or, a BUYANIHAN.

“MSMEs took a direct hit, incurred big losses,” said AFFI President Jorge Noel Wieneke. “It’s back to zero for many, or back to the starting line. They are now in the ‘ICU’ and they need a blood transfusion. We can fix this with a BUYANIHAN spirit.”

It is a simple, doable solution. Consumers just need to start consuming again. Start buying again.

But for now, buy local to support our MSMEs.