L’Oréal
Recycling water onsite through Waterloop factories
Climate-related operational risk: Water scarcity, rising water costs, water restrictions and process-water disruption
Solution pathway: Onsite water treatment, recycling and reuse in manufacturing operations
Business type: Large corporate
Sector: Beauty and cosmetics manufacturing
Geography: Global manufacturing sites
In practice
L’Oréal has responded by redesigning water use at its factories. Its Waterloop approach treats and recycles water onsite so that water used in industrial processes can be reused again within the factory. This reduces withdrawals of freshwater and helps protect production from local water stress.
The approach is especially relevant because it focuses on factory operations rather than only external water replenishment. By reducing the amount of freshwater needed to run a site, the company lowers exposure to water scarcity and strengthens operational continuity.
Why this example was selected
This case study was selected because L’Oréal’s onsite water recycling approach has been externally featured by the World Business Council for Sustainable Development as part of its Business Guide to Circular Water Management. WBCSD’s case study describes L’Oréal’s reuse of treated industrial wastewater in cosmetics operations, including ultrafiltration and reverse osmosis, and reports that sites with recycling plants were able to cover around 36% of utility water demand with recycled water in 2016. WBCSD also highlights the operational benefits of reduced water consumption, including lower energy use for water heating, reduced need for softening chemicals and improved process efficiency.
The example is also supported by wider external recognition of L’Oréal’s water management. CDP has repeatedly recognised L’Oréal for leadership on water security, including its tenth consecutive triple-A score across climate, forests and water security in 2025. This makes the case useful for the Business Knowledge Hub because it shows a manufacturing business reducing exposure to water scarcity through practical onsite systems: water-use mapping, process optimisation, treatment, recycling and reuse.
