2022 Universal Registration Document

 Since 2015, L’Oréal has supported the ENAR’s⁽¹⁾ Equal@Work initiative, which helps to ensure progress on this important issue. Since 2019, L’Oréal has been an active member of the Tent Partnership for Refugees, a global network of more than 200 companies that supports refugees. This partnership enables L’Oréal to strengthen the socio-economic and multicultural diversity of its teams, offer job opportunities to the candidates in question and facilitate their inclusion in their host countries. In 2022, L’Oréal took part in a three-year mentoring programme, for 50 female refugees in France, Germany, Belgium and the Netherlands, with 12 mentors. L’Oréal has signed the Charter on the inclusion of refugees and exiled people in the workplace, drafted by SINGA and Utopies, as part of its commitment to professional integration and the fight against the underemployment of refugees.

Promoting the inclusion of people with disabilities

For more than 20 years, L’Oréal has applied a global policy to include people with disabilities within the Company. In 2022,the Group employed 1,625 statutory employees with disabilities, i.e. 1.9% of the total workforce. The goal is 2% by2025. The priorities for the disability pillar of the DE&I policy are:

• recruitment: promoting the recruitment of people with disabilities in all countries;
• retention: supporting employees who have experencied accidents, illness or the worsening of an existing disability;
• declaration of disability: promoting an inclusive environment and creating conditions that encourage employees to declare their disability, so that the company can adapt positions, jobs and support;
• digital accessibility: any new digital platform must now meet this objective;
• employee awareness: the success of the Disability pillar is closely linked to internal communication and training; and
• partnerships and sharing best practice: collaboration with recognised experts, associations and NGOs on the subject,as well as with the protected and disability-adapted work sector is an important element in advancing inclusion.

An active member of the ILO since 2010, L’Oréal was one of the first signatories of the Global Business and Disability Network Charter in 2015 and chaired the network in 2021. Since 2020, L’Oréal has been a member of the Valuable 500,a global collective of 500 companies, whose objective is to promote the inclusion of people with disabilities.

L’Oréal continues to support the Disability Hub Europe initiative, which brings together various stakeholders in the field of disability and sustainable development.

L’Oréal is strengthening its commitment to greater inclusion in sport by supporting a group of sportspeople with disabilities.

Valuing and taking into consideration people of all ages and generations

L’Oréal ensures that every employee has their place in the company, regardless of their age or experience. In this context, in continuation of the Spanish Generaciones initiative and the French inter-company commitment to enhance the role played in the company by those over 50 years of age, a dedicated international programme, named L’Oréal For All Generations, was launched in 2022⁽²⁾.

Gender equity: professional parity and equality for women and men

Achieving real gender equality, up to the most strategic positions, is a key challenge for L’Oréal. The aim is to strengthen the Group’s ability to innovate while promoting a culture of inclusion. The Group ensures that all jobs are accessible to women and men, both at the level of recruitment and with regard to opportunities for career development. Special attention is given to pivotal periods such as parenthood (see section 4.3.2.4.).

The policy on diversity and gender balance deployed in the Group includes a goal to maintain, every year, a proportion of male or women employees that may not be less than 40%in strategic positions (around 300 positions). General Management reports annually to the Board of Directors on this policy and the results obtained during the previous financial year. From 2022, the long-term remuneration plans include criteria for non-financial performance in addition to financial performance, one of which is a criterion linked to gender balance in strategic positions.

Since March 2019, L’Oréal has published its “Index of Professional Gender Equality”, which is calculated using five indicators defined by the “Professional Future” law. This 2023Group Index is at 97% for all of L’Oréal’s French entities.

Since 2007, L’Oréal has collaborated with the INED (National Institute for Demographic Studies) to conduct an annual analysis of the differences in remuneration between women and men working in France. The aim is to ensure equal pay among those with the same level of skills and the same classification. The median pay gap in France decreased from 10% in 2007 to 0% in 2019 (stable in 2020 and 2021) and the average (mean) pay gap in France also fell during this period, from 31% in 2007 to 10% in 2021⁽³⁾.

In addition to the INED analysis in France, in 2020 L’Oréal launched a global tool to measure gender pay equality“all things being equal” (net of structural effects) certified by EDGE, which applies a tolerance threshold of +/-5%. The analysis was extended to 32 countries⁽⁴⁾ in 2022, representing more than 85% of the global workforce (compared to28 countries in 2021). L’Oréal aims to expand the scope of this analysis to all the countries in which the Group has more than 150 employees by 2025. According to this analysis, the adjusted average salary gap in these countries is 0.90% in favour of men.

In addition to the EDGE methodology, L’Oréal is deploying a Gender Pay module in the HR information system, which enables each country to monitor, analyse and improve its gender pay statistics.