Scope of consolidation: this indicator is calculated over a global scope using data accumulated since the Fund was launched. It is the number of organisations supported by the Fund, the number of women directly supported by these organisations with the assistance of the Fund, and the budget in euros allocated since the launch of the Fund.
Data: data are collected by the organisations supported by the Fund which have used all or a portion of the budgetal located during the reference period. The Fund’s teams (within the Corporate Responsibility Department) consolidate the data. They carry out consistency checks on the basis of the information reported and a certificate of compliance transmitted by the partner organisations. The budgetal located is monitored and consolidated by the Fund’s teams in cooperation with L’Oréal’s Finance team.
Rehabilitation: restoration focuses on halting and reversing ecosystem degradation and recovering biodiversity. Source: OP2B Restoration Framework/Science Based Targets Network (2020). Science-Based Targets for Nature: Initial Guidance for Business
Regeneration: regeneration actions apply to working lands and are about increasing ecological productivity in terms of nature’s contributions. Source: OP2B Restoration Framework/Science Based Targets Network (2020). Science‑Based Targets for Nature: Initial Guidance for Business
Scope of consolidation: this concerns the Human Rights data arising from Ethics reporting. This scope is identical to that of social data.
Indicators: the indicators have been selected in line with the applicable regulations, and to enable data comparison, in particular.
Data: the Ethics, Risk and Compliance Department collects the data relating to Ethics and Human Rights for L’Oréal subsidiaries using the Annual Ethics Reporting platform.
The scope is aligned with individual company data unless otherwise indicated for each indicator. Human Rights data for the employees of the Group’s suppliers are consolidated by the Purchasing Department and collected mainly during social audits conducted by an independent and accredited third party. This third party then shares the data and the audit reports with the Group. The other data are collected from the Departments concerned: Corporate Social Responsibility,Worldwide Product Safety Evaluation, Ethics, Risk and Compliance, and the L’Oréal Foundation.
The financial and technical information used for this analysis has been the subject of additional reporting and of joint analysis and checking by the local and central teams for the2022 financial year.
Process for identifying and assessing eligible investments for 2022: the vast majority of the Group’s eligible investments (89%) correspond to data relating to leases that have been capitalised in accordance with IFRS 16. The Group’s other eligible investments (11%) correspond to construction, renovation and maintenance projects.
Leases on premises and vehicles that are capitalised in accordance with IFRS 16 were valued as shown in the Group’s consolidated balance sheet (89%).
Capital expenditure related to “individual measures” taken by the Real Estate Department was subject to self-assessment by the Real Estate finance departments. The Group’s financial tools are not, to date, capable of tracking investments according to the nomenclature of the activities that are eligible under the Taxonomy. With the help of their Real Estate Experts, the Financial Directors of each Zone have identified significant eligible projects. The analysis was conducted using a threshold of work, so as to focus the analysis on the most significant projects. The amounts reported by the Financial Directors correspond to the best estimate of the real investment amounts committed in 2022.
Capital expenditure related to “individual measures” taken by the Operations Department was subject to self-assessment by the Finance and Operations Departments. The Group’s financial tools are not, to date, capable of tracking investments according to the nomenclature of the activities that are eligible under the Taxonomy. The projects were identified on the basis of the climate monitoring of the L’Oréal for the Future programme, using a threshold of work, so as to focus the analysis on the most significant projects.
Checks are conducted centrally to ensure each project is eligible and to ensure that the same project is not counted twice.
Approach to the qualification of 2022 aligned investments:in accordance with the instructions of the Delegated Acts, an investment is classified as “aligned” to the Taxonomy, if it meets the three criteria below.
1. The technical criteria for substantial contribution broken down by business activity: In terms of the acquisition of buildings constructed before 2021 for which experts appointed by the Group do not have the buildings’ EPC(1) or are not aware of the threshold relating to the top 15% of the best performing buildings in terms of primary energy consumption at national or regional level, the labels for which energy performance is a certification criterion and for which the maximum level of certification has been reached, the buildings in question have been considered, in the context of this transition exercise, as making a substantial contribution to climate change mitigation with regard to the Taxonomy. The buildings are then considered highly likely to be among the best performing buildings in the country and should be placed in the top 15% of the country or region. If the label’s best score is not achieved, a case-by-case analysis is conducted. For these buildings, the experts reconstitute primary energy consumption from energy consumption by applying a conversion factor that is specific to the country in which the building is located. They then compare it to national or regional thresholds in order to confirm that it comes in the top 15% locally.
(1) Energy Performance Certificate (EPC)
