2022 Universal Registration Document

• L’Oréal has a corruption risk prevention policy (see section 4.3.4.);
• L’Oréal considers that the contribution of taxation is an integral part of its CSR (see section 4.3.5.); and
• the Group’s Legal Charter reaffirms the obligation to respect local laws and in particular sets out the internal principles for the right to competition (see section 3.5.3.3.).

The method for identifying eligible and aligned projects and their amounts is described in the methodology note (see section 4.5.). This method will be integrated into the Group’s investment validation processes in a more systematic way over the coming years. The Group will continue to adapt its alignment and eligibility analysis and methodology in light of changes to the regulations, listed activities and technical review criteria relating to the Taxonomy Regulation.

Operating expenses indicator: As there were no eligible sales, there were no operating expenses corresponding to activities related to sales that could be qualified as eligible. As a result, the various measures implemented to reduce the carbon footprint of the Group’s products have not been taken into account in the performance indicators relating to operating expenses.

The Opex⁽¹⁾ denominator required by the Taxonomy Regulation is primarily composed of R&I costs (€1,139 million in 2022). It represents a low percentage of the Group’s operating expenses. In light of this low weighting, the Group applies the Taxonomy Regulation exemption that allows them not to calculate the Opex numerator and reports this amount as 0.

Furthermore, L’Oréal concluded that its Research & Innovation programmes are not eligible because they do not fall within the scope of the activities currently covered by the Taxonomy (heavy chemicals). R&I at L’Oréal is focused towards Green Sciences (as described in section 4.3.1.3.1.). The allocated annual budget for this was €1,139 million in 2022.

Sales