In this context, Carbone 4 worked with L'Oréal to develop a framework for assessing the carbon impact of the group’s various sourcing methods (self-consumption, green power purchase agreements, joint procurement, and guarantees of origin).
Carbone 4 has worked with L’Oréal to develop a simple and practical rating framework that is compatible with ongoing changes in standards. This framework is based on three pillars: spatial consistency, temporal consistency, and additionality.
A representative sample of L'Oréal’s various contracts was analyzed using this methodological framework, making it possible to assess the actual carbon impact of the Group’s supply portfolio. In addition to an assessment of current contracts, Carbone 4 proposed two scenarios to project the impact of changes to the Group’s supply portfolio:
- Replace all "standard" guarantees of origin with guarantees of origin linked to specific wind power generation assets
- Enter into wind Power Purchase Agreements (PPAs) and develop demand flexibility in countries where electricity generation is the most carbon-intensive
Finally, a process has been initiated to prioritize procurement, based on both the emissions reductions associated with the contracts in question and their financial impact, in order to invest where the impact is greatest.