L’Oréal, LVMH Granted Triple-A for Environmental Achievement
PARIS – From the beauty and fashion industries, L’Oréal, Beiersdorf, Firmenich, Kao and LVMH Moët Hennessy Louis Vuitton were among the 12 companies to be granted a triple-A score for environmental achievement on climate change, forests and water security by global environmental and nonprofit organization CDP.
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L’Oréal is the only company worldwide to have been given such a score for seven consecutive years by what’s considered the gold standard of environmental scoring.
Thousands of companies were scored after filling out CDP’s 2022 climate change, forests and water security questionnaires.
“In 2022, over 680 investors with over $130 trillion in assets and 280 major purchasers with $6.4 trillion in procurement spend requested companies to disclose data on environmental impacts, risks and opportunities through CDP’s platform. A record-breaking 18,700 companies scored,” said L’Oréal and CDP jointly in a statement released Tuesday morning.
CDP uses an independent method to assess the companies, then scores them from A to D. Criteria include how comprehensive the disclosure is; the awareness and management of environmental risks; and demonstration of best practices linked with environmental leadership. An F is given to those companies that don’t disclose, or provide insufficient information.
CDP said it saw nearly 20,000 companies disclose environmental data this year, including 70 percent of European companies by market value. “COP27 showed the need for transformational change is more critical than ever if we are to limit warming to 1.5 degrees Celsius,” said Maxfield Weiss, executive director of CDP Europe.
“I’m therefore delighted that European companies make up nearly half of all A-list companies around the world, including 15 with two-A scores and eight with triple-A scores for climate change, forests and water security leadership,” he continued. “We must cut emissions by half and eliminate deforestation by 2030, alongside achieving water security on the same timescale — there is no route to 1.5 degrees Celsius without nature.
“With the EU’s groundbreaking new reporting regulation, the CSRD, now agreed, CDP A-list companies are showing they are ahead of the game — taking clear action to reduce emissions and to address environmental impacts throughout their value chains,” said Weiss. “This is the type of environmental transparency and action we need economy-wide to prevent ecological collapse.”
“We are very honored to be the only company receiving the CDP triple-A rating for the seventh year in a row,” said Nicolas Hieronimus, chief executive officer of L’Oréal, in the statement.
“This is a testimony of L’Oréal’s long-term commitment and to our ambition that our activities will be respectful of the planetary boundaries by 2030,” he continued. “As the world’s leading beauty company, I believe that we have a duty to lead by example. We want to leverage our scale to become a catalyst of change, and mobilize all parts of our ecosystem to address the pressing climate and environmental challenges we all face. By working together we can create the beauty that moves the world.”
As part of its L’Oréal for the Future program, the group has set targets for 2030 that are three-pronged: transforming itself, empowering its business ecosystem and contributing to solving the world’s challenges.
Swiss fragrance and flavors supplier Firmenich was given a triple-A ranking for five consecutive years, the only company beside L’Oréal.
“Guided by the UN Sustainable Development Goals, we are successfully placing our [environmental, social and governance] strategy at the heart of our growth, providing sustainable solutions for our customers and achieving excellence with both our measurable ESG performance and our record financial results in 2022,” said Gilbert Ghostine, Firmenich CEO. “Sustainability and good business are synonymous: our journey demonstrates that businesses can drive urgently needed change for the planet, and we are determined to keep on raising the bar.”
Japan’s beauty and personal care maker Kao has had a triple-A rating for three consecutive years.
“Being included in this selection reassures us that we are taking the right steps to realize a sustainable lifestyle for each and every consumer,” said Dave Muenz, director and managing executive officer in charge of Kao’s ESG division. “We must all take certain and urgent action across society to tackle climate change. At Kao, we have committed to achieve our goals of carbon zero by 2040 and carbon negative by 2050. Through our current and future actions taken to realize these ambitions, we will strive to live up to this recognition we have received from CDP today.”
Antoine Arnault, head of communication, image and environment at LVMH, which got a triple-A for the first time, said: “LVMH would like to share this recognition with its suppliers and scientific partners. Measuring and communicating environmental impact across the LVMH value chain on climate, water and biodiversity, LVMH is particularly committed to scaling up regenerative practices within its supply chain that bridge the preservation of biodiversity and the fight against climate change.”
Vincent Warnery, CEO of Beiersdorf, said: “We have made great efforts around the globe over the past years to drive the transformation of our business. CDP’s triple-A rating is a tribute to our efforts to become leading in our industry in environmental sustainability, not only in ambitious target-setting, but also in taking action and being transparent.”
Givaudan and Kosé were given a double-A rating, for climate and water security, while Unilever achieved such a score for climate and forests.
Burberry Group, Carrefour, Inditex, International Flavors and Fragrances, J. Front Retailing, Kering, Pandora, Pola Orbis Holding, Puma, Sainsbury, Shiseido and VF Corp. attained an A grade for climate.
The Estée Lauder Cos. received an A grade for water security, alongside Fast Retailing, Gap and Hermès International.
