L’Oréal presents its Corporate Social Responsibility strategy (1) The acronym “CSR” refers to Corporate Social Responsibility.in order to meet the requirements of the Non-Financial Reporting Directive (2)NFRD – Prepared pursuant in particular to Articles L. 225-102-1 and L. 22-10-36 of the French Commercial Code, resulting from French Order no. 2017-1180 which transposed Directive 2014/95/EU of the European Parliament and the Council of 22 October 2014 on the disclosure of non-financial information. in particular. This Statement sets out the Group’s main non-financial risks and describes the policies implemented to address them.
Performance indicators follow and measure these policies as well as their results. This presentation refers to the Group’s business model, set out in subsection 1.3.1. As L’Oréal has had a long‑standing commitment to CSR, section 4.3. also incorporates the policies and actions voluntarily implemented beyond a response to the main risks.
The main environmental and social risks, the main risks related to human rights and the main corruption risks(3)According to the regulations, information on the fight against tax avoidance is given in subsection 4.3.5. “Tax policy”. are detailed(4)In application of the European Directive of 22 October 2014 on the disclosure of non-financial information, as transposed into French law. to the extent necessary to gain an understanding of the Company’s position, business development, economic and financial results, and impacts of its activity.
Chapter 3 presents the Group’s significant risks, i.e. risks that cover all areas of the Group’s activities and that could have a material impact on its business, financial position or outlook. They have been established in conjunction with the Group risk mapping (see subsection 3.5.2.).
Some of these risks are specific to non-financial issues. Others are broader and may stem from environmental or societal causes: these are the CSR risks. The principal ones have been selected within the meaning of the NFRD following a detailed analysis. This analysis was carried out based on the work of Group experts, in conjunction with the Ethics, Risk and Compliance Department and in compliance with the Group’s business model. This work also draws on the double materiality analysis carried out by the Group based on interviews with its stakeholders (interviews with in-house and external ESG experts, see section 4.1.), the climate study on environmental risks, the Group’s Human Rights and corruption mapping, and corruption mapping conducted for each country. It takes into account the risk analysis carried out in connection with the Vigilance Plan (see section 3.4.).
The risks associated with climate change are subject to a long‑term approach – more than 10 years – given their specific nature. The main risks have been validated at the highest level of responsibility of the organisation by the relevant General Managements.
The main risks in respect of CSR, human rights and corruption identified by the Group are detailed below. Other risks, of which the Group is not currently aware or which it does not consider material at present, could have a negative impact. The approach is based on double materiality: the concept of risk covers both risks related to the impact of the Group’s business activities on its ecosystem and the risks of the impact of climate change in the short and medium-term on its business model, activity and financial performance(5)Pursuant to French Financial Markets Authority (AMF) recommendation no. 2018-12 of 29 October 2018, the 2019 AMF report on the “Corporate social responsibility of listed companies”, and the Guidelines of the European Commission on Climate of 20 June 2019..
