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L’Oréal: «Sometimes you have to make decisions between sustainability and economy. Support from the CEO is needed »

by admin_l6ma5gus
September 19, 2023
in Entertainment
0
L’Oréal: «Sometimes you have to make decisions between sustainability and economy.  Support from the CEO is needed »

“My work at L’Oréal allows me to stimulate my curiosity and, at the same time, have a positive impact on people and the planet.” This is the business card of Ana Kljuic, vice president of R&D&i at L’Oréal for the Future and Green Sciences. “A strange position name,” she says. But what is summarized in this multinational’s guide towards sustainability. A challenge that is marked in red on the 2030 calendar, since by this date they expect the entire range of their products to have a sustainable base or ingredients and, in addition, they hope to be zero net emissions, a journey that costs them 1,000 million in investment per year. only in research. Although for the cosmetics firm it is an “investment.” Kljuic is clear: either you are sustainable or you are nothing.

-Almost 20 years at L’Oréal… How has the company changed in these three decades?

-We accept the change very well. On the one hand we are a very conservative company in certain aspects, but we are very flexible. One of the big changes we have had has been in the digital transformation of both our brands and our research and innovation activity. The other great acceleration has been in terms of the environment. In 1995 we launched a research laboratory in this regard and we have done great work to understand and reduce the impact of our products on the environment. From there we have built the entire strategy and level of the group in terms of transformation.

-And what is more important is the digital transformation or the sustainability transformation?

-Both are related. Sustainability has to be linked to digital and, in fact, I work closely with my counterpart in digital transformation. We have to make sure our decisions and actions are aligned.

-You are now Vice President of R&D&i at L’Oréal for the Future and Green Sciences, what exactly does that mean?

It’s a good question because the name of the department is strange. L’Oréal for the future is actually the name of our corporate sustainability program. Additionally, it is the second program we have had to publish in 2021. We started in 2013 with Sharing Beauty which lasted until 2020. Our new plan is not only about doing it, but we have to do it better and do it well. With this second plan we go further and try to respond to the challenges of the future and make it a fact. That’s where the name of my department comes from.

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-And that green chemistry thing?

-It is a scientific discipline described 20 years ago by two American chemists who developed 12 principles. The first of them is that it starts with a renewable resource and the following describe how to use less polluting solvents or use less energy, etc. If a company adheres to these, we can say that it was developed under the principles of green chemistry.

-In their strategy they talk about biocosmetics, algae… That can also be seen as a way to destroy the planet. How do you work on this aspect?

-You are absolutely right because, for example, we have a commitment to switch to 95% ingredients of renewable origin. That means that you are going to use more natural resources and, therefore, you have to do it in a more responsible way. For this reason we have two other commitments that go together. The first is that they have to be obtained sustainably and fully traceable, which implies total transparency in the way we manage our value chain. The second is that we will maintain land occupation in 2030, at the same level as 2019. It is a challenge, because we hope that our business will continue to grow and we will only use sustainable ingredients by stopping using fossil fuels, that will generate more pressure on the territory. We work to reduce our impact on land use by using regenerative agricultural practices or using, as I said, green chemistry. There is more and more talk about this field and we are increasingly using biotechnology to create ingredients. Even so, you have to think twice, because to feed these bacteria you need sugar and this comes from corn or beets. How do we ensure they are sustainably sourced? We are looking for innovative technologies in CO2 recycling, but above all respectful of nature and based on science. We have developed a tool that helps us, within planetary limits, to analyze the life cycle of our products and their impact on the environment. Whether it is new or a renovation, it goes through this tool and its average has to be the best, otherwise it doesn’t work.

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-How much does all this cost? How much does it cost to be a green company?

-I can’t estimate how much it costs. We spend resources to work with new companies, to work with suppliers, to increase our knowledge, to understand our impact, to develop a tool like the one I told you about… Yes, it takes a lot of resources, but for us it is part of our model. of business. We know that we have to transform ourselves and help transform our ecosystem, to this end we dedicate resources and invest more than 1,000 million euros a year in research. Sustainability is in our field of research, because it is a new mentality and that amount serves to achieve that objective. We have thousands of scientists around the world working and dedicated to all this.

-He talks about thousands of scientists, thousands of workers in all corners of the planet. How is sustainability managed in a multinational with different cultures?

-It is a difficult job, but we have the support of our senior management. This was a decision made by our CEO and our executive committee. Your support is necessary, because difficult decisions must be made between sustainable and financial performance. The good thing is that sustainability has been part of our DNA for a long time, our managers are committed and that makes our work easier. The deadlines are very short and 2030 is just around the corner. By the end of the decade we want 95% of our ingredients to be renewable based, from abundant minerals and circular processes and that means that in 2029 we have to have the formulas. This implies that in 2027 we have to discuss it with marketing, but first in 2026 there must be at least a technical solution. 2026 is tomorrow. We have a difficult road ahead, and the deadline is very short.

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-You talk a lot about organic and natural products, what do you think the cosmetics sector will be like in 2030?

-This sector has always been very innovative and will continue to be so, but with sustainable development. There is a great initiative in the sector called the Eco Beauty Score Consortium with a collaboration of over 60 industry members working together to develop a common methodology to rate our products. We believe that by 2030 it can be implemented and will allow consumers to be educated to make better decisions. By the end of the decade, we will have shown that we are capable of minimizing our impact, that we are capable of rethinking our formulations differently, and that we are capable of driving positive change.

What are the challenges of this sector?

-Above all, develop new ingredients that do not sacrifice the functional performance that the consumer expects and offer cosmetic benefits while promoting sustainable performance. We have to innovate both in sustainability and functionality and, again, the challenge is the schedule, because developing a new technology takes time, even for the suppliers from whom we buy the ingredients.

-They have to make healthy products that do not harm the environment, right?

Yes and no. Safe products for consumers have been part of our DNA for a long time and that’s non-negotiable. When you think about sustainability, it’s really just an extension of that philosophy from human to planet. We have never sacrificed human health to manufacture a product. Why should we also sacrifice the health of the planet? It’s the same philosophy.

-Finally, all of this can be seen as greenwashing. How do you fight against it?

-You have to do it all the time, it can be a very tempting and easy path to follow, but it cannot be done. We insist on science, on having data and using the life cycle to ensure that we make the right decisions because it is a very complex issue. The answer to fighting greenwashing is science.

#LOréal #decisions #sustainability #economy #Support #CEO #needed

Tags: CEOdecisionsEconomyneedssupportsustainabilitytakethe realtimes
admin_l6ma5gus

admin_l6ma5gus

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