As part of its commitment to preserving biodiversity, L’Oréal launched the L’Oréal Fund for Nature Regeneration (1) in 2020. This €50 million impact investment fund, managed by Mirova, is intended to combine financial performance with the creation of environmental and social value. By supporting projects to rehabilitate (2) degraded soils, regenerate mangroves, and restore marine areas and forests, the L’Oréal Fund for Nature Regeneration aims to help preserve or restore one million hectares of ecosystem, to capture 15 to 20 million tonnes of CO2 and create hundreds of jobs by 2030. Since the fund was launched, more than one hundred projects have been considered for the purposes of building the investment portfolio. At the end of 2022, fifteen projects were selected for further study, and eleven investment projects totalling more than €22 million were validated. For example, in April 2022, the L’Oréal Fund for Nature Regeneration invested in the technology start-up RIZE, whose mission is to accelerate the transition to low-carbon agriculture. The investment will enable RIZE to become a pioneer in the regeneration of farmland in France and Europe by means of a digital solution and a unique service for farmers. RIZE’s aim is to contribute to the regeneration of over 2.5 million hectares and the sequestration of 4 million tonnes of CO2 by providing support to 75,000 farmers by 2025.
On 22 March 2022, the Group issued its first Sustainability-linked bond. This fixed-rate issue, which has a maturity of four years and three months and amounts to €1,250 million, is accompanied by a coupon of 0.875% per year. It is aligned with the Group’s Sustainability-Linked Financing Framework, which covers all financial instruments with characteristics that are linked to the sustainability objectives.
The bond was established with reference to the 2020 Sustainability-Linked Bond Principles (“SLBP 2020”) as defined by the International Capital Market Association.
The Group’s Sustainability-Linked Financing Framework was independently assessed by Sustainalytics, an organisation that evaluates the sustainability of listed companies, which noted contributions to three of the United Nations Sustainable Development Goals (3).
The financial characteristics of Sustainability-linked bonds are linked to three performance objectives that are related to sustainable development. These objectives are presented below along with their 2022 level of achievement in relation to the objectives for 2025.
| Performance objectives | 2022 Results | Details | 2025 targets |
|---|---|---|---|
| All L’Oréal operated sites will be “carbon neutral”(4) (Scopes 1 and 2) by 31 December 2025(1) | All L’Oréal operated sites will be “carbon neutral”(4) (Scopes 1 and 2) by 31 December 2025(1)2022 Results65% (Scope 1 and 2 emissions from sites operated in tCO2e) | All L’Oréal operated sites will be “carbon neutral”(4) (Scopes 1 and 2) by 31 December 2025(1)Details See p. 173 |
All L’Oréal operated sites will be “carbon neutral”(4) (Scopes 1 and 2) by 31 December 2025(1)2025 targets 100% |
| Greenhouse gas emissions (Scopes 1, 2 and 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year. | Greenhouse gas emissions (Scopes 1, 2 and 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year.2022 Results488 (g of CO2 per product sold) i.e. +9.42% compared to 2021 |
Greenhouse gas emissions (Scopes 1, 2 and 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year.DetailsSee p. 199 | Greenhouse gas emissions (Scopes 1, 2 and 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year.2025 targets -14% |
| By 2025, 50% of the Group’s plastic packaging will be recycled or bio-based. | By 2025, 50% of the Group’s plastic packaging will be recycled or bio-based.2022 Results 26% |
By 2025, 50% of the Group’s plastic packaging will be recycled or bio-based.Details See p. 192 |
By 2025, 50% of the Group’s plastic packaging will be recycled or bio-based.2025 targets 50% |
(1) By using only renewable, locally produced energy and without resorting to carbon offsetting.
The mission of L’Oréal’s Human Resources Department (HR) is to support the Group’s growth and its transformation initiatives. The Group, which places people at the heart of its organisation, relies on its employees above all. L’Oréal’s HR strategy is built on this double conviction: individualised management linked with collective strength.
To meet the challenges of a world that is constantly changing, which impact both the organisation and relationships with work, the Group initiated a process of transformation to adjust its model to new aspirations. It is implementing dedicated HR policies on recruitment, development and engagement. The Chief Human Relations Officer, who is member of the Executive Committee, reports directly to the Chief Executive Officer on a regular basis.
L’Oréal has always placed the individual at the centre of its model, convinced that the qualities of each one contribute to the performance of all. L’Oréal finds, recruits, and supports its employees with a long-term engagement vision. Training and development play a central role all along their professional careers. In order to fully perform their function as strategic partner, Human Resources integrates the technological and digital dimensions and takes into account strong challenges such as social responsibility.
HR plays a central role in the transformation of work methods and management culture. Thus, they supported the rollout of the Simplicity programme, initiated in 2016, to foster a management style based on trust, leaving room to initiative, cooperation and development. The programme was supported by a major training programme, LeadEnable for Simplicity, and specific goals target the highest level of the Group.
Since 2020, members of the Executive Committee and their Management Committees have been evaluated by their peers and their teams via the Leadership Survey.
