Scope of consolidation: to define the list of strategic suppliers, the spend baseline is from March 2022. The N-1 spend is updated at the end of October for indicators related to the CDP and the environmental and social performance of suppliers.
Data: Suppliers participating in the CDP had to be invited in advance by L’Oréal according to defined criteria:
Clarification: no attempted bribery occurred this year during the social audits. The attempted bribery mentioned in the audit report refers to an attempt to bribe the auditor and not to the fact that the supplier may have been involved in a bribery case
Scope of consolidation: the period considered is from 1January to 31 December over a worldwide scope. This scope covers workers from economically or socially disadvantaged communities who work at the Group’s suppliers and at their subcontractors. Beneficiaries of the Solidarity Sourcing programme must produce materials, goods or services purchased by L’Oréal. At least one of the following two criteria must be fulfilled: access to and remaining in a permanent job if their community is generally excluded or under-represented in the activity, or a substantial and lasting improvement in income thanks to the activity associated with the programme (fair sourcing).
Data: in the majority of projects, the methodology is based on the number of FTEs under local regulations, on the basis of a full year. The FTE number is proportional to L’Oréal’s weight in the supplier’s business activity, i.e. the proportion of the supplier’s payroll that is involved in the production of L’Oréal products. If the supplier’s employees work for other customers, the amount of the orders in relation to the supplier’s total revenue determines the number of hours assigned to the L’Oréal production. For projects related to the sustainable sourcing of natural raw materials, the unit of measurement of the beneficiaries is not FTE, but the number of producers concerned. The supplier, with the assistance of an independent third party, defines a threshold at which the project has a significant impact on the target community with respect to the local situation.
Scope of consolidation: this indicator is calculated over worldwide scope using annual data. This scope covers people trained on beauty skills under the Beauty for a Better Life programme implemented by partner organisations between 1 January and 31 December.
Data: the managers of the programme at L’Oréal’s subsidiaries aggregate the data on the basis of the information and a certificate of compliance transmitted to them by the partner organisations. The Foundation teams within the Department of Corporate Responsibility consolidate the data and check it for consistency.
Scope of consolidation: this indicator is calculated over a France scope using annual data. This scope covers people who have benefitted from beauty care and well-being treatments under the Beauty for a Better Life programme implemented by partner organisations between 1 January and 31 December.
Data: the data are collected by the programme’s partner organisations. The Foundation teams consolidate the data and check it for consistency.
Scope of consolidation: this indicator is calculated over a scope limited to the brands that have social engagement programmes. The scope excludes the brands’ environmental programmes, product donations and awareness-raising media campaigns.
Data: in order to be counted for, a beneficiary must be a person who is either supported by a partner NGO with a sustainable impact, via, for example, an educational grant, medical treatment, personalised psychological support, or any other initiative under the brand’s social engagement programme; or supported by a brand via a training programme that has been co-created with a partner NGO. The data are approved and transmitted by the NGOs, then consolidated by the brands via a digital tool.
Scope of consolidation: the indicators concern all rinse-off products that belong to one of the following categories:Shampoo, Conditioner & Mask, Dye, Face Cleanser, Body Cleanser, Targeted Facial Shock Treatment, Deep Cleanser & Face Mask, manufactured during 2022 on a Group scope. The indicators do not count the Hand Cleanser and Rinse-off Shave Cream categories.
The indicators used are those used in the application of the Product Impact Labelling (PIL) methodology. They reflect the results of the Group’s policy for measuring the environmental and social impact of the products. The calculation method and the data are verified by Bureau Veritas, an independent auditor.
Data: the data for the defined scope is collected by the Operations Department using SPOT (Sustainable Product Optimisation Tool). All SPOT exclusions also apply to this indicator.
