2022 Universal Registration Document

•  death:
  • for all employees, the payment of a Lump Sum Death Benefit, increased depending on the employee’s family status. The amount of this Benefit is doubled in the event of accidental death,
  • for the employees affiliated with the benefit scheme for managers, employees governed by Article 36 of the AGIRC convention and sales representatives, the payment of a Spouse Pension to the surviving spouse. This ensures that the spouse has an income similar to the Surviving Spouse Pension paid for supplementary retirement contributions on the portion of remuneration greater than the annual cap on social security if death had occurred at the age of 65, and
  • for all employees, the payment of an Education Annuity to each dependent child, according to an age-based schedule.

The total amount of the Lump Sum Equivalent for these guarantees may not exceed €2.3 million per event.

Minimum guaranteed lump sum death benefits: L’Oréal has established an additional guaranteed Lump Sum Death Benefit that supplements, where applicable, for all employees, the Lump Sum Death Benefit in an amount equal to three years’ average income. The total amount of the risk capital needed to fund the Surviving Spouse Pension and Education Annuity, the Lump Sum Death Benefits and the minimum guaranteed Lump Sum Death Benefit is capped.

Healthcare expenses: the healthcare scheme is compulsory for all the employees of L’Oréal and its French subsidiaries. Employees have the option of including their family members in these schemes. Contributions are, generally, individual. The contribution by the employee is partly financed by the Company.

4.3.2.6. Promoting Diversity, Equity and Inclusion (DE&I)

Diversity, Equity and Inclusion are part one of the Group’s strategic commitments, which aims to have teams that reflect the diversity of its consumers all over the world and to provide all its employees with an equitable and inclusive working environment. The Group also adopts an inclusive approach towards communities, suppliers and stakeholders. The Group’s DE&I strategy is built around four key pillars:

1. Socio-economic and multicultural background: promote and increase the diversity of socio-economic and cultural origins in the Group’s teams;
2. Disability: accelerate the inclusion of people with disabilities, by means of targeted actions, with a minimum target for the number of employees with disabilities in all countries;
3. Age and Generations: value and take into consideration people of all ages and generations; encourage dialogue and cooperation among employees of different generations;combat stereotypes based on age; and
4. Gender and LGBTQIA+: achieve gender parity at all levels and functions of the company; contribute to the establishment of more inclusive environments in favour of the LGBTQIA+communities everywhere in the world; act against any type of harassment or violence, particularly sexism, sexual harassment and gender-based violence.

The Group’s DE&I policy is also reflected in its approach towards its suppliers (see section 4.3.3.6.), its consumers, partners, communities and the NGOs and associations dedicated to inclusion in all Zones.

To achieve its objectives, L’Oréal relies particularly on an internal network of “DE&I Leads” in all of its entities. They are the guarantors of the Group DE&I policy, which they adapt to their local context. The Group shares its achievements and progress in a dedicated section on the loreal.com website. To measure employees’ perception of DE&I, “Pulse”, the annual in-house survey on employee engagement, includes questions on this issue.

In advertising and marketing its products, L’Oréal is committed to communicating responsibly by ensuring that it respects the

diversity of beauty needs and desires around the world. In its Code of Ethics, the Group commits not to harm the dignity of human beings or present degrading stereotypes in its advertising. It is also sensitive to possible reactions to the Group’s advertising from different religious, ethnic, cultural or social groups.

To strengthen its commitment to more inclusive marketing and advertising, L’Oréal joined the Un stereotype Alliance in 2021. As a member of the World Federation of Advertisers, in 2022 L’Oréal contributed to the publication of a Charter for Change, which aims to drive progress on DE&I issues within the advertising industry.

The Global DE&I Advisory Board, brings together a diverse group of external experts and leaders from within the Group. The Board is co-chaired by the Chief Executive Officer and the Global Chief DE&I Officer. It met three times in 2022, and local boards also met in North America and the United Kingdom & Ireland.

In 2022, L’Oréal launched the Beauty of Inclusion Awards, a competition to recognise the best DE&I initiatives led by local teams. The 18 finalist projects, which came from all Zones, reflect L’Oréal’s commitment in all four pillars of the DE&Istrategy.

Reinforcing multicultural and socio-economic diversity

L’Oréal’s goal is to reflect, at all levels and in all functions, the diversity of the markets in which it operates. Particular attention is therefore paid to the diversification of recruitment pools, to ensure equal opportunities in terms of professional development, and to raise awareness of employees and management on this subject. Under the L’Oréal for Youthprogramme, the Group is committed to diversifying its sources of recruitment, with the aim of recruiting at least 20% of the talent for the Management Trainee Programme from non‑partner schools and universities.