L’Oréal decided to develop a carbon-neutral logistics property with Prologis in Muggensturm, near Karlsruhe, Germany. With this development, L’Oréal underlines its commitment to sustainability. Spanning more than 100,000 square meters, it will be the company’s largest distribution center. The new location will allow L’Oréal to supply its German, Austrian and Swiss markets more efficiently.
The entire project, from the design to future use, has been created with sustainability in mind. For example, L’Oréal will use renewable energy to power the facility and rainwater to irrigate the green spaces. The property will include around 30,000 square meters of green space and approximately 7,400 solar panels on the rooftop. The solar power system has a capacity of 2.0 megawatt peak.
Klemens Gschwandtner, director of operations DACH at L’Oréal, explains the role sustainability plays at the company.
1. How important is sustainability to L’Oréal?
Sustainability is extremely important to L’Oréal. In fact, it has been permanently enshrined in our corporate culture: As part of our global Sharing Beauty with All sustainability program, we assume responsibility for the environment and society at our locations. Our new distribution center in Muggensturm will play an important role in this.
2. Why did you decide that operation of the new logistics facility should be carbon neutral?
L’Oréal has ambitious sustainability goals, including, of course, reducing carbon dioxide emissions at our production and distribution sites. We are very proud of the fact that in Germany, thanks to the L’Oréal Group’s largest carbon-neutral logistics facility in the world, we can make a contribution to achieving this important goal.
3. Why did you choose Prologis as the property developer for this project?
Prologis shares our commitment to sustainability and supported us in an extremely professional manner right from the start. The team was motivated and immediately willing to blaze new trails with us.
4. What role will the new logistics property play in L’Oréal’s activities?
The new facility will allow us to grow. We will be expanding our current space by 50 percent to a total of 90,000 square meters. This will make long-term growth possible and allow us to conduct logistics operations for Switzerland at the location. Overall, we are planning to almost double our capacities so that we can remain competitive over the long term. Consolidating our activities from two locations in the past to one in the future will streamline and modernize our processes and procedures. As a result, we will be able to work together more effectively and respond to the needs of our customers faster and with greater flexibility. This will also enable us to further increase our efficiency.
5. What role does L’Oréal’s collaboration with Murgtal-Werkstätten & Wohngemeinschaften play?
Within the scope of our Sharing Beauty with All sustainability program, we assume responsibility for society at large. It goes without saying that we are particularly committed to making a contribution to the communities in which our sites are located. In Germany—and around the world—we successfully work with institutions that integrate disadvantaged people into the labor market. In Karlsruhe, we have been cooperating with worKA, formerly BzKA, for 20 years now. WorKA is an organization that helps individuals with physical, mental or emotional disabilities find work. For example, its employees sort our product returns for us or prepare several million test products for shipment. In Muggensturm, we are going to work with Murgtal-Werkstätten & Wohngemeinschaften. They give people with disabilities housing and job opportunities. At our new distribution center, these individuals will be responsible for maintaining the green spaces. We are confident that we will be able to expand this partnership over the next few years and look forward to the future together.