2022 Universal Registration Document

Assessment tools of the L’Oréal Share & Care programme

In order to ensure transparency and reliability, the programme is regularly subject to measures and assessments to ensure it has been implemented as intended:

• self-assessment and definition of the action plan through a reporting tool (Follow-up-Tool), completed by each subsidiary annually;
• internal audit: a detailed verification of the programme’s implementation has been included in the planning of internal audit in the subsidiaries; and
• external audit: certain key indicators are audited within the scope of the annual external audit.

The ILO is a partner in the L’Oréal Share & Care programme

The L’Oréal Share & Care programme attracted the attention of the ILO (International Labour Organisation) in the context of its study on the contribution by major companies to the expansion of social protection all over the world. A close collaboration was developed. L’Oréal is a founding member of the Global Business Network for Social Protection Floor, which was launched in 2015 by the ILO. This network allows acting collectively and mobilising to create a basic set of social protection measures for everyone.

Flexible work organisation

In each subsidiary, work is organised according to local context and to the activity performed in compliance with legal and contractual obligations. In several subsidiaries, both work organisation and working time are part of collective agreements.

L’Oréal believes that flexibility at work is a key element in attractiveness. This flexibility is strengthened further by the new global “Hybrid Working” policy. Eligible employees may work remotely for up to two days per week, on a voluntary basis, in agreement with the direct line manager and in keeping with the team’s organisational structure. All Group subsidiaries have now adopted this policy, wherever this has been possible, given the local health situation. In addition, 58 subsidiaries have now set up a flexible working time policy.

Employees from all categories have chosen the option of part‑time work. In 2022, there were 4,982 part–time employees,4,468 of whom were women and 514 were men.

The L’Oréal For All Generations programme

For L’Oréal, inclusion of more experienced employees is along-standing commitment. Furthermore, at a time when careers are getting longer and the digital transformation is accelerating, the Group has launched the L’Oréal For All Generations programme, which makes intergenerational relationships a core objective. The programme aims to create an attractive working environment, encouraging employees to flourish both professionally and personally from the moment they join the company until they retire. The programme focuses on five key areas:

• promoting intergenerational inclusion, equity and diversity;
• adapting health and wellness programmes;
• developing employability throughout the professional career;
• preparing in advance for a successful transition to retirement;and
• facilitating new life projects for the post-L’Oréal era.

Launched in France in 2022 and inspired by the Spanish Generaciones initiative, this programme will gradually berolled out internationally, and subsidiaries where more than20% of employees are over 50 years of age will be prioritised.

An active social dialogue with employees and their representatives

As a signatory of the United Nations Global Compact since2003, and in compliance with its Employee Human Rights Policy, L’Oréal respects the freedom of association and the right to collective bargaining.

When employees wish to be represented by authorised employee representatives, these representatives are elected without company interference. They have access to workplaces, to consenting employees, as well as to local documentation useful for the performance of their duties, subject to compliance with Group’s legitimate rules on confidentiality and security. In countries where freedom of association and the right to collective bargaining are restricted or non-existent, there are other modes of dialogue that enable employees to report any concerns they may have.

In the context of these general principles, the social climate at L’Oréal is the fruit of an ongoing dialogue between Management, employees and their representatives, in accordance with local trade union rights and with a neutral attitude with regard to the various trade union organisations.

Employee representation bodies are in place in most European subsidiaries, in several Asian subsidiaries(1), in Africa (2), in Northand South America(3), as well as in New Zealand. In total,86% of the Group’s employees work in countries where there are employee representative bodies (at one of the sites at least). 45% of the Group’s employees are covered by a collective agreement and 97% of them are covered by company collective agreements.

Two Directors representing the employees have been member of L’Oréal Board of Directors since 2014 (see section 2.2.1.3.).

In 1996, L’Oréal signed an agreement with the French and European trade unions, which led to the establishment of the Instance Européenne de Dialogue Social, or European Works Council. This council represents more than 30,000 employees in25 member countries of the European Economic Area and the United Kingdom. With 30 members, this council holds regular discussions with Management about the Group’s current situation and its future perspectives, on the basis of an agenda prepared with the Liaison Secretariat.