Preferential dividend: a dividend increase equal to 10% of the dividend granted to any shareholder who can prove at the end of a financial year, that shares have been registered in their name for at least two calendar years and that they continue to be registered in their name at the date of payment of the dividend (see “Registered Shares”).
Product with an improved environmental profile: in the case of new products, a product for which environmental improvement is measured in relation to an average of the brand’s existing and comparable products; for an updated product, environmental improvement is measured and compared to the earlier product.
Registered shares: shares registered in the shareholder’s own name, enabling the issuing company to identify them by name. Pursuant to Article 15 of the Articles of Association of L’Oréal, any shareholder who can prove at the end of a financial year, that shares have been registered in their name for at least two calendar years and that they continue to be registered in their name at the date of payment of the dividend paid for that financial year, will be entitled to a preferential dividend on the shares that are thus registered, equal to 10% of the dividend.
Risk factors: risks specific to L’Oréal that are key to making informed investment decisions (see section 3.5.).
Scopes 1, 2 and 3: the categories in which greenhouse gas emissions are classified. According to the Green House Gas Protocol, Scope 1 emissions are “direct emissions from sources owned or controlled by the reporting entity”. Scope 2 emissions are “indirect emissions related to the consumption of electricity, heat or steam necessary for product processing or operating the reporting entity”. Scope 3 emissions are “other indirect emissions related to product supply chain (upstream emissions) and the use of products and services during their lifecycle (downstream emissions)”.
Sense of purpose (raison d’être): see “Create the beauty that moves the world” and section 1.1.1.
Share & Care: a programme created in 2013 and deployed in all our subsidiaries, that offers employees a set of benefits organised around four pillars, which were updated in 2021: welfare schemes, healthcare, work/life balance and the working environment (see section 4.3.2.4).
Shareholder structure: shareholders, whether individuals or legal entities, of L’Oréal, who own a portion of the capital of the company in the form of shares (see sections 1.1.3 and 5.3).
Sharing Beauty With All: a sustainability programme launched by L’Oréal in 2013 with sustainable production, sustainable innovation, sustainable consumption and shared growth targets for 2020.
Social selling: the approach that uses social networks to find new customers and/or sell products.
Solidarity Sourcing: a responsible purchasing programme launched in 2010 whereby L’Oréal is committed to sourcing from suppliers with an inclusive solidarity model, in other words, companies that offer employment to vulnerable workers and people in economically or socially disadvantaged communities (see section 4.3.3.6).
Specialised committees of L’Oréal’s Board of Directors: The Board of Directors has set up four specialised committees to help all Directors carry out their principal duties in a collective manner: the Strategy and Sustainability Committee, the Audit Committee, the Human Resources and Remuneration Committee, and the Nominations and Governance Committee. The duties of these Committees are set out in detail in section 2.3.3.
SPOT: a tool that calculates the environmental and social footprint of a product in accordance with the European Commission recommendation. It is based on a rigorous scientific methodology for assessing environmental impacts. SPOT has been rolled out to all Group brands (except recent acquisitions). It is an integral part of product launch processes, putting sustainable innovation at the very heart of product development. See section 4.3.1.3.1.
Supply Chain: the process of planning, executing and monitoring all activities relating to flows of materials and information, the purchase of raw materials, the intermediate processing of the product and its delivery to the end customer.
Taxonomy: under European Regulation 2020/852 of 18 June 2020, refers to a framework for classifying economic activities that have a positive impact on the environment (see section 4.31.4.4).
TCFD (Task Force on Climate Related Financial Disclosure): a working group set up by the G20 Financial Stability Board that created a system for disclosing climate-related financial information (see section 4.3.1.4.3).
TSR: the rate of return of a share over a given period, combining dividends received and capital gains realised.
