2023 universal registration document

In 2023, the following EHS audits were conducted:

• 22 risk audits;
• 8 combined EHS culture and risk audits;
• 8 combined Quality, Environment, Health, Safety and Performance audits and 1 combined Quality, Environment, Health and Safety audit; and
• 49 additional EHS audits of subcontracting sites in factories, and 18 in external distribution centres.

In addition, annual prevention inspections are conducted by experts from the Group’s insurance companies as part of external Fire and Environment insurance policies. In 2023, 10 factories in seven countries were inspected for environmental risks. In 2023, fire prevention inspections were carried out in 15 sites (four factories in France, and 11 sites worldwide). All the preventive audits and inspections mentioned above involved a risk component which is always carried out by external independent auditors specialised in the area being audited.

A continuous improvement process

The implementation of the standards, the spread of the L’Oréal EHS culture and the governance system in place contributes to the continuous improvement of the Group’s EHS performance. Major developments occurring within the framework of the Group’s Operations are also included with this same goal. The construction of a new factory, the purchase of new equipment or the definition of new processes are also opportunities to reduce the environmental footprint and safety risks. Some major programmes within EHS, or more generally within the Group, are vectors for progress in the areas of safety or the environment for all entities. They are therefore the subject of detailed improvement plans, the effectiveness of which is evaluated during the audits.

Life-changing Incidents or Fatality Events (LIFE) programme

For all L’Oréal sites, it covers activities posing risks that, if not controlled, could result in serious injury or illness. The Group continues to move towards“zero accidents” by ensuring the sustainability of actions and defining the requirements in terms of preparing for emergencies following an incident. It is backed up by a three year communication campaign relayed by managers to cover the 10 identified families of LIFE risks.

The L’Oréal for the Future programme

With the L’Oréal for the Future programme, L’Oréal is committed to improving the environmental footprint of its operated sites⁽¹⁾.“Operated” sites include all production sites (factories, distribution centres) as well as administrative sites and research centres. The reporting only includes sites with more than 50 people, as described in chapter 4.5.1.3. Environmental data.

The main environmental objectives of the programme for operated sites are as follows:

• climate: to reach 100% renewable energy⁽²⁾On the Group’s operated sites, excluding safety and security installations as defined in paragraph 4.5.1.3. “Environmental data”. for all operated sites by 2025;
• water: in 2030, 100% of the water used in our industrial processes will be from recycled and reused sources;
• biodiversity: by 2030, all of our operated buildings and industrial sites will have a positive impact on biodiversity compared to a baseline situation (established between 2019 and 2023);
• natural resources: by 2030, 100% of the waste generated in our operated sites will be reused or recycled. L’Oréal is also committed to no longer send waste to landfills.

The Group is committed to an ISO certification process in order to permanently anchor EHS performance on its production sites:

• since 2003, L’Oréal has committed to ISO 14001 “Environmental Management” certification in all of its factories;
• in 2015, the Group launched an ISO 50 001 “Energy Management” certification programme with the goal of certifying all its factories according to a clearly defined roadmap. Other sites (distribution centres, administrative sites and research centres) have also launched this process; and
• since 2007, L’Oréal has committed to OHSAS 18 001, and then ISO 45 001 certification “Occupational Health and Safety Management” certification in all of its factories.

An internal communication system exists to inform each site when accidents, near misses or significant incidents occur. Specific communication is circulated worldwide to raise awareness of the facts and lessons to be learnt, the existing rules and the new requirements to be applied. Finally, each site is provided with an historical record which covers the nature and root causes of EHS incidents/accidents that have occurred in all sites.