The Group expanded its mapping by identifying the potential salient human rights risks worldwide and in all markets. L’Oréal relied on the reporting framework of the United Nations Guiding Principles on Business and Human Rights (UNGP Reporting Framework). This identification process takes into consideration the severity, scale and remediability, as well as the likelihood of its impacts for people throughout its value chain. This study was conducted with an NGO specialised in the subject providing an independent analysis, and was reviewed by different external stakeholders. The most salient human rights risks are:
- discrimination against Group employees or workers within its value chains on grounds of gender, age, disability, gender identity and sexual orientation;
- child labour within the Group’s value chain and our raw materials supply chain;
- modern slavery within the Group’s value chain and our raw materials supply chain;
- non-payment of living wage in the value chain;
- a lack of worker voice mechanisms, social dialogue, freedom of association and collective bargaining in our value chain;
- the mental health of Group employees; and
- the contribution to reinforcing gender stereotypes via advertising.
Other potential risks identified concern the possibility of failures in product quality or safety or in data protection, respect for the environment, the right to access water, consideration of human rights in the choice of raw materials and, in particular, respect for free, prior and informed consent of indigenous peoples.
L’Oréal operates in many countries where the risk of corruption can be significant and could lead L’Oréal’s employees, as well as third parties acting in its name or on its behalf, directly or indirectly, voluntarily or involuntarily, to adopt practices contrary to the Group’s ethical principles and the prevailing regulations. Corruption takes a variety of forms that are not necessarily easy for employees to identify. For instance, the exchange of gifts or invitations of excessive value could be perceived as corruption. Corruption risk is assessed by specific mapping, carried out at the Group level and by each country in its local context. The Group’s activities involve in particular relations with:
- public authorities and their representatives, either directly or via intermediaries or professional bodies, to obtain the authorisations necessary for the Group’s activities, for instance. The countries in which the Group operates must be given support in the fight against public corruption;
- the Group’s customers and suppliers; and
- journalists, doctors etc., to whom products can be given so that they can recommend them. Relationships are also maintained with third parties that, beyond the Group’s products themselves, issue various or general opinions on L’Oréal. Any action potentially deemed as being intended to cause the persons in question to breach their obligation of loyalty must be avoided.
Any breach of the Group’s corruption prevention principles may be detrimental to L’Oréal and its partners. Equally, any failure of a partner may be detrimental to L’Oréal.
4.3. Policies, performance indicators and results
The Group’s policies address the need to prevent and mitigate the occurrence of the main CSR risks and aim to contribute to its sustainable growth in a control environment aligned with its businesses. There are however limits inherent in any system and process. These limits result from several factors, such as external uncertainties, or issues resulting from technical or human failures. These policies also reflect a proactive approach by the Group to consider stakeholder expectations (see subsection 4.1.5.).
4.3.1. An ambitious environmental policy
The Group has a long standing commitment to reducing its environmental footprint and aspires to be one of the most exemplary companies in this field. L’Oréal wishes to decorrelate growth and environmental impact. L’Oréal also wishes to contribute positively to its ecosystem throughout the world, particularly through its impact funds, brand commitments, and social programmes such as the Inclusive Sourcing programme.
- In 2013, L’Oréal launches the Sharing Beauty With All programme, based on four pillars: “Innovating sustainably”, “Producing sustainably”, “Living sustainably” and “Developing sustainably”
- In 2016, the Working Sustainably programme is rolled out within Sharing Beauty with All to integrate administrative sites and research centres to mitigate environmental and social impacts
- In 2017, L’Oréal joins the Science Based Targets programme, an initiative of CDP, the United Nations Global Compact, the World Resources Institute, and the NGO WWF. The Group thereby plans to reduce its overall greenhouse gas emissions by 25% compared with 2016 by the end of 2030
- In 2018, to progress further with regard to the individual Act4nature commitments, L’Oréal sets a goal of ensuring that 100% of its raw materials are renewable and sustainably sourced by 2030
- In 2018, L’Oréal becomes a partner of the Ellen MacArthur Foundation, with the aim of adopting refillable, reusable, recyclable, or compostable plastic for 100% of packaging by 2025
- In 2019, L’Oréal becomes one of the first companies to sign the “Business Ambition for 1.5°C” Pledge of the UN Global Compact The Group thereby commits to reaching zero net emissions by 2050 over its entire value chain, according to the 1.5°C pathways of the IPCC(1).
- In June 2020, the Group announces the follow up sustainability programme to the Sharing Beauty With All programme: L’Oréal for the Future. It sets a second generation of particularly ambitious and specific objectives for 2030 for combatting climate change and preserving natural resources. These cover all impacts associated with the Group’s value chain and its sites: from the search for renewable ingredients and the sustainable sourcing of raw materials to the transportation of products, their consumption, and their end of life
