In 2023, L’Oréal launched a programme aimed at explaining the principle of a living wage to its strategic suppliers and sharing information on the adoption of a living wage approach. The programme consists of a series of meetings over several months with a group of suppliers, the Fair Wage Network and L’Oréal in attendance. The purpose of these meetings was to discuss the strategy and methodology, as well as to hear from the suppliers that were furthest forward in the process. This encourages companies to share best practices and any difficulties. The suppliers are invited to make commitments via a living wage pledge.
In 2023, more than 115 suppliers benefitted from individual support and more than 50 suppliers pledged to be compliant by 2030.
Through its Inclusive Sourcing programme, established in 2010, due to its many industrial and administrative sites all over the world, L’Oréal is heavily involved in the life of local communities and in the areas neighbouring its sites and suppliers.
The programme aims to use the Group’s purchasing power to serve social inclusion by dedicating part of its purchases to suppliers providing access to work and a sustainable income for people who are generally excluded from the labour market, economically vulnerable communities, including small businesses and those that have trouble accessing major contractors.
The programme concerns all the Group’s suppliers and values their commitment to Diversity, Equity and Inclusion. The Inclusive Sourcing programme concerns, for example: fair trade producers, companies which employ people with disabilities, social insertion enterprises, or companies owned by minorities (2) As part of the Inclusive Sourcing programme, L’Oréal supports suppliers who give access to employment to minorities recognised by the government standards of the country.(when this is permitted by national legislation).
Inclusive Sourcing helps to achieve L’Oréal’s goal of enabling 100,000 additional people who are socially or economically vulnerable to access employment by 2030.
L’Oréal works with beauty advisors to promote its products at points of sale. Depending on the markets, they may be L’Oréal employees, distributor employees or employees hired through temporary employment agencies. Predominantly women, these advisors are in direct contact with consumers and may sometimes be faced with consumer or management behaviour that does not reflect L’Oréal’s values. To improve their access to reporting tools, the Group has launched pilot projects in three markets.
For example, a mobile phone survey tool has been deployed for all beauty advisors employed by a temporary employment agency as part of a pilot in a Group country. This revealed human rights issues, concerning working conditions, employment contracts and harassment, in particular. These topics were addressed in a dedicated action plan that included measures to improve contracts and to train beauty advisors, distributors and employers of these advisors on violence against women.
Other similar feedback tool projects are being considered, as the ultimate goal is to increase the coverage of this at-risk population.
The risk analysis covers generic risks related to industrial activities and specific risks related to Suppliers’ and Subsidiaries’ own business activities.
As is the case for any production (manufacturing and packing), distribution, research and general administration operations, the Group and its Suppliers are exposed to safety and environmental challenges.
Based on the risk prevention work on the Environment, Health and Safety at the workplace carried out by L’Oréal for many years, the major risks below have been identified. On this basis, the Subsidiaries and Suppliers must define at each of their sites, the measures designed to prevent the risks identified in the Plan (the “Prevention System”).
The Subsidiaries conduct their own risk analysis based on the list of risks set out below, particularly the fire risk is controlled by very strict fire prevention standards (such as those issued by the National Fire Protection Association).
In addition to the generic risks, the Subsidiaries identify the specific risks related in particular to cosmetics production. For example, the physical risks are the subject of SHAP (Safety Hazards Assessment Procedure) studies, which identify the dangers, generally and for each workstation, assess the risks and allow the implementation of the necessary means of control. Environmental risks are also analysed to assess the nature of the aspects and impacts of a site’s activities on its environment and to control any that lead to potentially serious impacts for the air, soil, water, biodiversity and resources.
This environmental analysis is updated regularly by each of the Group Subsidiaries’ sites and whenever a significant change takes place. If significant risks are identified or if L’Oréal’s standards or regulations impose specific requirements, a more detailed evaluation is carried out for the activities concerned. Appropriate action plans with immediate action where necessary are implemented to reduce significant risks to an acceptable level.
With regard to water discharge, each industrial site has implemented a self-monitoring system representative of the wastewater discharged (3)Monitoring of regulated and contractual parameters: chemical oxygen demand (COD), biochemical oxygen demand (BOD) etc.. This self-monitoring is a tool for detecting risks of exceeding regulatory thresholds that helps to anticipate any non-conformities and initiate corrective actions. A total of 30 L’Oréal factories have their own wastewater treatment plant. L’Oréal is continuing with the installation of these plants.
(1) Previously called the Solidarity Sourcing programme.
(2) As part of the Inclusive Sourcing programme, L’Oréal supports suppliers who give access to employment to minorities recognised by the government standards of the country.
(3) Monitoring of regulated and contractual parameters: chemical oxygen demand (COD), biochemical oxygen demand (BOD) etc.
