2023 universal registration document

The method for identifying eligible and aligned projects and their amounts is described in the methodology note (see section 4.5.). This method will be integrated into the Group’s investment validation processes in a more systematic way over the coming years. The Group will continue to adapt its alignment and eligibility analysis and methodology in light of changes to the regulations, listed activities and technical review criteria relating to the Taxonomy Regulation.

Operating expenses indicator: As there were no eligible sales, there were no operating expenses corresponding to activities related to sales that could be qualified as eligible. As a result, the various measures implemented especially to reduce the carbon footprint of the Group’s products have not been considered in the performance indicators relating to operating expenses.

The OpEx⁽¹⁾Operating expenses denominator required by the Taxonomy Regulation is primarily composed of R&I costs (€1,289 million in 2023). It represents a low percentage of the Group’s operating expenses. In light of this low weighting, the Group applies the Taxonomy Regulation exemption that allows them not to calculate the OpEx numerator and reports this amount as 0.

Furthermore, L’Oréal concluded that its Research & Innovation programmes are not eligible because they do not fall within the scope of the activities currently covered by the Taxonomy (heavy chemicals). R&I at L’Oréal is focused towards Green Sciences (as described in paragraphs 1.2.8 and 4.3.1.3.1). The allocated annual budget for this was €1,289 million in 2023.

PROPORTION OF NET SALES, CAPEX, OPEX FROM TAXONOMY-ELIGIBLE OR TAXONOMY-ALIGNED ECONOMIC ACTIVITIES BY ENVIRONMENTAL OBJECTIVE — INFORMATION FOR 2023