2023 universal registration document

4. Corporate Social Responsibility

In 2023, eligible investments totalled €631 million (including €587 million related to long-term capitalised leases on buildings according to IFRS 16), compared to total investments of €2,810 million as defined by the Taxonomy Regulation.

The individual measures under the climate-related objectives are eligible investments. They also include leases that have been capitalised in accordance with IFRS 16, which relate to Aēsop, a company that entered the Group’s scope of consolidation at the beginning of September 2023.

In 2022, the amount of eligible CapExCapital investment expenditure. stood at €434 million. The variation in the eligible balance in 2023 compared to the 2022 financial year is primarily the result of the frequency of lease renewals and the addition of Aēsop data for this first financial year.

In 2023, aligned investments for the climate change mitigation objective were €139 million, with €114 million invested for the climate change adaptation objective. Alignment under the four new objectives is not required for this financial year. The alignment of capitalised leases under IFRS 16 relating to Aēsop has not been tested in view of the entity’s recent integration.

In 2022, the amount of aligned CapExDo No Significant Harm. stood at €180 million. The variation in the aligned balance in 2023 compared to the 2022 financial year can be explained by the same reasons as the data for eligibility and the recent integration of Aēsop. These variations do not correlate with the Group’s investment policy on actions to adapt to or mitigate climate change.

Total investments as defined by the Taxonomy Regulation (€2,810 million in 2023) includes inflows of tangible and intangible assets for the financial year under review, before depreciation and before any remeasurement, including those resulting from revaluations and impairment, for the relevant financial year, with the exception of variations in fair value. It also includes any inflows of tangible and intangible assets arising as a result of business combinations. It can be reconciled with the consolidated financial statements as follows:

€ millions 2022 2023 Reconciliation with the financial statements
Intangible assets Intangible assets2022612.9 Intangible assets2023905.6 Intangible assetsReconciliation with the financial statementsVariations in intangible assets tables (note 7.2)
of which, acquisitions of which, acquisitions2022339.7 of which, acquisitions2023355.1 of which, acquisitionsReconciliation with the financial statements“Acquisitions/charges” column
of which, business combinations of which, business combinations2022208.2 of which, business combinations2023550,6 of which, business combinationsReconciliation with the financial statementsIncluded in the “Variations in the scope of consolidation” column
of which, allocation of GW to the brand of which, allocation of GW to the brand202265,0 of which, allocation of GW to the brand2023-0.1 of which, allocation of GW to the brandReconciliation with the financial statementsIncluded in the “Other movements” column
Tangible assets Tangible assets20221,002.7 Tangible assets20231,214.2 Tangible assetsReconciliation with the financial statementsVariations in property, plant and equipment tables (note 3.2.2)
of which, acquisitions of which, acquisitions20221,002.7 of which, acquisitions20231 150.6 of which, acquisitionsReconciliation with the financial statements“Acquisitions/charges” column
of which, business combinations of which, business combinations20220.0 of which, business combinations202363.6 of which, business combinationsReconciliation with the financial statementsIncluded in the “Other movements” column
Right of use (IFRS 16) Right of use (IFRS 16)2022395.5 Right of use (IFRS 16)2023690.1 Right of use (IFRS 16)Reconciliation with the financial statementsRight of use table (note 3.2.3)
of which, new and renewed leases of which, new and renewed leases2022395.5 of which, new and renewed leases2023500.9 of which, new and renewed leasesReconciliation with the financial statementsIncluded in the amount given in the note below
of which, business combinations of which, business combinations20220.0 of which, business combinations2023189.2
TOTAL ACQUISITIONS TOTAL ACQUISITIONS20222,011.1 TOTAL ACQUISITIONS20232,809.9 TOTAL ACQUISITIONSReconciliation with the financial statements

 

The alignment rate for the 2023 financial year was qualified with care and using the currently accepted marketplace practices in order to validate the three conditions required for alignment:

  • Substantial contribution and DNSHDo No Significant Harm. criteria: The Group’s property policy incorporates high standards in terms of the carbon footprint of its buildings, their energy performance and adaptation to the physical risks of climate change, while enhancing its assets through building labelling. In 2023, the Group worked on a property-specific sustainability strategy for operational roll-out in 2024, that will improve the performance of all the new assets acquired. The Group will continue to update and ensure the implementation of the Purchasing Charter and the Sustainable Design and Construction Guide for construction and leasing projects, in order to best address the environmental issues described in the Taxonomy.
  • Compliance with the minimum safeguards: the Group meets the requirements on minimum safeguards listed in the Platform on Sustainable Finance’s (PSF) report. The four themes are specified in other sections:
    • L’Oréal has implemented a Group-wide Code of Ethics as well as the L’Oréal Vigilance Plan, which contains reasonable due diligence measures intended to prevent the risk of serious adverse impacts on Human Rights and Fundamental Freedoms, as well as health, safety and the environment within the framework of a best efforts obligation (see paragraphs 3.4.4.1. and 3.4.5.1.);
    • L’Oréal has a corruption risk prevention policy (see subsection 4.3.4.);
    • L’Oréal considers that the contribution of taxation is an integral part of its CSR (see subsection 4.3.5.); and
    • the Group’s Legal Charter reaffirms the obligation to respect local laws and in particular sets out the internal principles for the right to competition (see paragraph 3.5.3.4.).

In connection with the European Commission communication of 16 June 2023 on minimum safeguards (2023/C 211/01)https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.C_.2023.211.01.0001.01.ENG&toc=OJ%3AC%3A2023%3A211%3AFULL and in connection with the SFDR (Sustainable Finance Disclosure Regulation), we confirm that the Group is not exposed to controversial weapons.