AFEP-MEDEF Code: a code of corporate governance comprising a set of recommendations drawn up by the Association Française des Entreprises Privées (AFEP) and the Mouvement des Entreprises de France (MEDEF), in the light of consultation with various market players, on corporate governance issues. L’Oréal refers to this Code.
Autorité des Marchés Financiers (AMF): the French financial markets authority, an independent, public, stock-market authority, which is responsible for the protection of savings invested in financial products, investor information and the proper functioning of the markets.
Beauty Tech: new technologies for the cosmetics industry intended to enhance science via large-scale cutting-edge technologies and to offer unparalleled beauty experiences (see section 1.1.2.3).
Board of Directors: the collegiate body that defines the Company’s business strategy and monitors its implementation, in accordance with its corporate interest, taking into consideration the social and environmental challenges associated with its business activity.
“Carbon neutral”: A site can claim “carbon neutral” status if it meets the following requirements:
The renewable energy sources must be located on site or less than 500 kilometres from the site, and be connected to the same distribution network. The “carbon neutral” status thus defined is achieved without offsetting. See section 4.3.1.1.3. B/.
CDP (formerly the “Carbon Disclosure Project”): an independent, recognised, international not-for-profit organisation, offering a system for assessing a company’s strategy, initiatives and results in the fight against climate change, sustainable water management and forest protection.
Code of Ethics: Available in 45 languages, and in French and English Braille, it is distributed to all employees worldwide. It enables employees to understand how Ethical Principles (Integrity, Respect, Courage and Transparency) need to be reflected in their behaviour and actions by providing simple rules and a description of concrete situations they may encounter. The Code of Ethics applies to all employees, directors and corporate officers and members of the Executive and Management Committees of the Group and its subsidiaries worldwide. Since 2010, 18 supplements to the Code of Ethics have covered certain aspects of it in more detail (see section 4.3.3.).
Company: the Company is the parent company, L’Oréal S.A.(see paragraph 5.1.).
Consolidated Financial Statements: the consolidated financial statements include the financial statements of all the companies within the L’Oréal Group.
Create the beauty that moves the world: L’Oréal’s sense of purpose (raison d’être). It is defined in concrete actions made to consumers, employees, clients, suppliers, shareholders, service providers and communities. L’Oréal is committed to fighting climate change, by respecting biodiversity and preserving natural resources, and to championing the cause of women. A full explanation of L’Oréal’s sense of purpose is given in section 1.1.1.
CSR: corporate social, societal and environmental responsibility (see chapter 4 in particular).
EFRAG: European Financial Reporting Advisory Group, responsible for advising the European Commission and mandated by the latter to develop sustainability standards under the Corporate Sustainable Reporting Directive.
L’Oréal BOOST: the latest programme in the L’Oréal for Youth initiative, launched by the Group in July 2021, aimed at the under-30s. It aims to offer 20,000 students each year access to a selection of on-demand, digital courses from Coursera, a leading provider of online learning for students and businesses.
L’Oréal for Youth: a comprehensive, long-term programme launched in 2021, which aims to support the employment of young people and improve their employment prospects. The Group is committed to increasing the number of job opportunities aimed at those under the age of 30, offering training packages and rolling out coaching and mentoring initiatives. As part of this programme, L’Oréal also grants scholarships to support students from disadvantaged areas (see section 4.3.2.).
L’Oréal for the Future: the second generation of L’Oréal’s commitments to sustainable development. The programme was launched in June 2020 with a new set of particularly ambitious targets for 2030, in order to cover all the impacts associated with the Group’s value chain. The programme, which aims to ensure that the Group’s business activities remain within the planetary boundaries defined by environmental science, thus marks a new ambition for the sustainable development of L’Oréal with the intention of capitalising on previous achievements [see section 1.3.2 and chapter 4].
Market capitalisation: the market value of a company at a given moment. It is calculated by multiplying the market price by the number of shares comprising the share capital. At 31 December 2022, the market capitalisation of L’Oréal was €178.5 billion.
Non-financial performance statement: the full range of information required by the regulations (European Directive of 22 October 2014 transposed into French law by the Order of 19 July 2017) on environmental, social and human rights, the fight against corruption and tax avoidance (see cross-reference table in section 4.6.1). This information is reported alongside additional, non-mandatory information in chapter 4.
Operations: a support department that harnesses the most specialised, agile, effective and connected technological expertise, from packaging design and product development, sourcing and production through to distribution of all the Group’s products. With its brands, it contributes to offering consumers worldwide the most advanced cosmetics products and services. It guarantees consumers compliance with strict standards of quality, safety, security and societal and environmental responsibility all over the world.
Packaging: all the materials which, without being part of the product itself, are sold with the product for the purposes of enabling or facilitating its protection, transportation, storage, presentation, packing, identification and use by consumers.
Parent company financial statements: The parent company financial statements correspond to the annual financial statements of the Company, L’Oréal S.A. (the parent company).
