2023 universal registration document

The Human Rights Department is engaged in a dialogue and partnerships with outside stakeholders, including NGOs, institutions and human rights associations.

Accordingly, L’Oréal is a partner of:

• Fair Wage Network, an NGO which provides the Group with a database on living wages in 200 countries and assists it with implementing its strategy in Operations and with strategic suppliers; and
• the United Nations Global Compact.

Furthermore, L’Oréal is a member of: the Shift Business and Human Rights Learning programme; the Human Rights Coalition of the Consumer Goods Forum; Open for Business, a coalition of companies committed to LGBTQIA+ inclusion; and Unstereotype Alliance, under the authority of UN Women.

In 2023, L’Oréal:

• presented the Group’s approach to the 8^th European peer review 2023 in Copenhagen, organised by the UN Global Compact and focused on the living wage, in order to promote it among other companies;
• committed to the living wage through the UN Global Compact’s Forward Faster initiative, which aims to accelerate the achievement of sustainability goals;
• consulted external stakeholders when drafting its first Human Rights Report; and
• joined the Harvesting the Future project launched by the Fair Labor Association, which was extended in January 2023 to cover the rose sector in Turkey for an initial two-year period until December 2024. The project aims to improve working conditions and respect for human rights in the rose sector in Turkey, focusing on empowering seasonal agricultural workers and their families. The project brings together various stakeholders, including the Turkish government, civil society organisations, processors, growers and companies in the beauty and perfume sectors, in order to support and strengthen these companies as they establish systems for monitoring human rights in their supply chains. The project builds engagement with local stakeholders.

Every year, L’Oréal improves the information it shares with its stakeholders and holds regular discussions with ESG rating agencies. The Group also discusses CSR issues with its shareholders and may raise these issues with financial institutions (banks, insurance companies).

L’Oréal is in regular contact with numerous non-financial rating agencies, including Moody’s ESG Solutions, ISS ESG, S&P Global, MSCI etc. These interactions make it possible to discuss the Group’s non-financial performance and identify potential areas for improvement. Dialogue with financial institutions can lead to a discussion on sustainability matters as part of discussions about Sustainability Linked Bonds, for example (see paragraph 4.3.1.6.).

Research & Innovation teams maintain close links with numerous public or private research centres worldwide⁽¹⁾The National Institute for Materials Science (NIMS) in Japan and the Singapore Centre for Environmental Life Sciences Engineering (SCELSE), among others. in areas as diverse as Green Chemistry, life cycle analysis, synthetic biology, genomics, skin stem cells, microfluidics, bioprinting and microbiomes.

The Group’s researchers also participate in the implementation of sustainable agricultural practices. They optimise tools and measurement methods with agronomic research institutes to monitor the environmental benefits of more resilient practices on site. L’Oréal collaborates in particular with the French Bureau of Geological and Mining Research (Bureau de recherches géologiques et minières – BRGM) to learn about the minerals it uses (accessibility, extraction procedures, availability etc.).

In April 2023, Polytechnique Montréal and the International Reference Centre for the Life Cycle of Products, Processes and Services (Centre international de référence sur le cycle de vie des produits, procédés et services – CIRAIG), along with the Université du Québec à Montréal, in partnership with L’Oréal and other industry partners, launched the International Research Consortium on Life Cycle Assessment and Sustainable Transition, which aims to implement strategies to accelerate the transition to a net-zero economy.

The environmental Research teams work with the University of Nantes to develop innovative methods to easily assess the biodegradability of mixtures of chemical substances. These teams are collaborating with the Fraunhofer Institute in the development of one method to evaluate the bioaccumulation of substances in aquatic environments.

The Group’s researchers participate in various programmes to identify and test substances likely to be subject to endocrine disruption, both in France (French National Research Agency Zebra Fish Embryo Assay for Toxicological riSk assessment – FEATS ANR) and across Europe (EndocRine Guideline Optimisation – ERGO) and in the United States (Health and Environmental Sciences Institute – HESI).

• At local, national or international level, L’Oréal maintains close relationships with the public authorities, in particular via professional associations and its own associations by direct engagement
• Accordingly, the Group facilitates discussions with institutional representatives on the role that companies should play with regard to major CSR issues

• A member of many associations worldwide, including: the French federation for beauty companies (Fédération des Entreprises de la Beauté – FEBEA), Cosmetics Europe, the European Brands Association, World Federation of Advertisers (WFA), US Personal Care Products Council (PCPC), China Association of Fragrance Flavour and Cosmetic Industries (CAFFCI), Cosmetic, Toiletry & Perfumery Association (CTPA)
• Meetings with French government ministers during visits to our sites or at institutional events 
• Participation in major international institutional events, such as Climate Week NYC and the World Economic Forum Davos Summit 
• Member of the UN Global Compact.