2023 universal registration document

3. Risk factors and risk management

MATRIX THAT TRIGGERS SUPPLIER AUDITS ACCORDING TO RISK MAPPING

Business sector Description of business sector Type of country Suppliers audited
Raw materials Raw materialsDescription of business sector

Suppliers of ingredients used to produce cosmetics in L’Oréal factories

Raw materialsType of country

Countries classified as “high risk”

Raw materialsSuppliers audited

100% of Suppliers

Packaging PackagingDescription of business sector

Suppliers of packaging used for production in L’Oréal factories

PackagingType of country

Countries classified as “high risk”

PackagingSuppliers audited

100% of Suppliers

Subcontractors SubcontractorsDescription of business sector

Suppliers producing cosmetics for L’Oréal (Full-buy, Full-service etc.)

SubcontractorsType of country

Countries not classified as “high risk”

SubcontractorsSuppliers audited

100% of new Suppliers (initial audit)

When the “satisfactory” or “NCI” (Needs Continuous Improvement) rating is achieved, additional audits are no longer necessary

Business sector

Countries classified as “high risk”

Description of business sector

100% of subcontractors

Dermo-cosmetic devices Dermo-cosmetic devicesDescription of business sector

Suppliers of equipment & electronics

Dermo-cosmetic devicesType of country

Countries classified as “high risk”

Dermo-cosmetic devicesSuppliers audited

100% of Supplier Production Sites

Manufacturing equipment Manufacturing equipmentDescription of business sector

Suppliers of manufacturing equipment (processing tanks, filling machines etc.)

Manufacturing equipmentType of country

Countries classified as “high risk”

Manufacturing equipmentSuppliers audited

100% of Supplier Production Sites

Promotional items Promotional itemsDescription of business sector

Suppliers of promotional items (bags etc.)

Promotional itemsType of country

Countries classified as “high risk”

Promotional itemsSuppliers audited

100% of Supplier Production Sites

Items intended for points of sale Items intended for points of saleDescription of business sector

Suppliers of items intended for the presentation of products at points-of-sale

Items intended for points of saleType of country

Countries classified as “high risk”

Items intended for points of saleSuppliers audited

100% of Supplier Production Sites

Services intended for points of sale Services intended for points of saleDescription of business sector

Architects, general contractors, maintenance

Services intended for points of saleType of country

Not applicable

Services intended for points of saleSuppliers audited

Not applicable

Co-packing Co-packingDescription of business sector

Co-packing Suppliers (sometimes called subcontractors or Co–Packers)

Co-packingType of country

Countries not classified as “high risk”

Co-packingSuppliers audited

100% of new Suppliers (initial audit)

When the “Satisfactory” or “NCI” (Needs Continuous Improvement) rating is achieved, additional audits are no longer necessary

Business sector

Countries classified as “high risk”

Description of business sector

100% of Supplier Production Sites

Logistics service providers (excluding transport) Logistics service providers (excluding transport)Description of business sector

External distribution

centres
Logistics service providers (excluding transport)Type of country

Countries not classified as “high risk”

Logistics service providers (excluding transport)Suppliers audited

100% of new Suppliers (initial audit)

When the “Satisfactory” or “NCI” (Needs Continuous Improvement) rating is achieved, additional audits are no longer necessary

Business sector

Countries classified as “high risk”

Description of business sector

100% of Suppliers’ logistics sites