The Group’s Sustainability-Linked Financing Framework was independently assessed by Sustainalytics, an organisation that evaluates the sustainability of listed companies, which noted contributions to three of the United Nations Sustainable Development Goals(1) A site must meet the following criteria: Direct CO2 (Scope 1) = 0, with the specific exception of the gas used for catering, the fuel oil used for sprinkler tests, the fuel oil (or diesel) used temporarily by backup units, fossil energy consumed during maintenance of on-site renewable facilities, cooling gas leaks if they are lower than 130 tonnes CO2 eq./year; and indirect CO2 Market Based (Scope 2) = 0
The financial characteristics of sustainability-linked bonds are linked to three performance objectives that are related to sustainability. These objectives are presented below along with their 2023 level of achievement in relation to the objectives for 2025.
| Performance objectives | 2023 Results | Details | 2025 target |
|---|---|---|---|
| All L’Oréal operated sites will achieve 100% renewable energy (formerly known as “carbon neutral”)(1) A site must meet the following criteria: Direct CO2 (Scope 1) = 0, with the specific exception of the gas used for catering, the fuel oil used for sprinkler tests, the fuel oil (or diesel) used temporarily by backup units, fossil energy consumed during maintenance of on-site renewable facilities, cooling gas leaks if they are lower than 130 tonnes CO2 eq./year; and indirect CO2 Market Based (Scope 2) = 0 by 31 December 2025 | All L’Oréal operated sites will achieve 100% renewable energy (formerly known as “carbon neutral”)(1) A site must meet the following criteria: Direct CO2 (Scope 1) = 0, with the specific exception of the gas used for catering, the fuel oil used for sprinkler tests, the fuel oil (or diesel) used temporarily by backup units, fossil energy consumed during maintenance of on-site renewable facilities, cooling gas leaks if they are lower than 130 tonnes CO2 eq./year; and indirect CO2 Market Based (Scope 2) = 0 by 31 December 20252023 Results 77% |
All L’Oréal operated sites will achieve 100% renewable energy (formerly known as “carbon neutral”)(1) A site must meet the following criteria: Direct CO2 (Scope 1) = 0, with the specific exception of the gas used for catering, the fuel oil used for sprinkler tests, the fuel oil (or diesel) used temporarily by backup units, fossil energy consumed during maintenance of on-site renewable facilities, cooling gas leaks if they are lower than 130 tonnes CO2 eq./year; and indirect CO2 Market Based (Scope 2) = 0 by 31 December 2025DetailsSee p. 194-195 | All L’Oréal operated sites will achieve 100% renewable energy (formerly known as “carbon neutral”)(1) A site must meet the following criteria: Direct CO2 (Scope 1) = 0, with the specific exception of the gas used for catering, the fuel oil used for sprinkler tests, the fuel oil (or diesel) used temporarily by backup units, fossil energy consumed during maintenance of on-site renewable facilities, cooling gas leaks if they are lower than 130 tonnes CO2 eq./year; and indirect CO2 Market Based (Scope 2) = 0 by 31 December 20252025 target 100 % |
| Greenhouse gas emissions (Scopes 1, 2 and 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year(2)The CO2 emissions by product sold in this cradle-to-shelf scope exclude emissions from Aēsop sites and products. | Greenhouse gas emissions (Scopes 1, 2 and 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year(2)The CO2 emissions by product sold in this cradle-to-shelf scope exclude emissions from Aēsop sites and products.2023 Results
434 434 (g of CO2 per product sold) I.e. -3.3% compared to 2021 |
Greenhouse gas emissions (Scopes 1, 2 and 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year(2)The CO2 emissions by product sold in this cradle-to-shelf scope exclude emissions from Aēsop sites and products.DetailsSee p. 223 | Greenhouse gas emissions (Scopes 1, 2 and 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year(2)The CO2 emissions by product sold in this cradle-to-shelf scope exclude emissions from Aēsop sites and products.2025 target -14;% |
| By 2025, 50% of the Group’s plastic packaging will be recycled or biobased. | By 2025, 50% of the Group’s plastic packaging will be recycled or biobased.2023 Results 32 % |
By 2025, 50% of the Group’s plastic packaging will be recycled or biobased.DetailsSee p. 215 | By 2025, 50% of the Group’s plastic packaging will be recycled or biobased.2025 target 50% |
The mission of L’Oréal’s Human Resources Department (HR) is to support the Group’s growth and its transformation initiatives. The Group places people at the heart of its organisation. L’Oréal’s HR strategy is built on this double conviction: individualised management linked with collective strength.
To meet the challenges of a world that is constantly changing, which impact both the organisation and relationships with work, the Group initiated a process of transformation to adjust its model to new aspirations. It is implementing dedicated HR policies on recruitment, development and engagement. The Chief Human Relations Officer, who is member of the Executive Committee, reports directly to the Chief Executive Officer on a regular basis.
L’Oréal has always placed the individual at the centre of its model, convinced that the qualities of each one contribute to the performance of all. L’Oréal finds, recruits, and supports its employees with a long-term engagement vision. Learning and development play a central role all along their professional careers. In order to fully perform their function as strategic partner, Human Resources integrates the technological and digital dimensions and takes into account strong challenges such as social responsibility.
HR plays a central role in the transformation of work methods and management culture. Thus, they supported the rollout of the Simplicity programme, initiated in 2016, to foster a management style based on trust, leaving room to initiative, cooperation and development. The programme was supported by a major learning programme , LeadEnable for Simplicity, and specific goals target the highest level of the Group.
Since 2020, the members of the Executive Committee and their Management Committees have been evaluated by their peers and their teams via the Leadership Survey.
In 2023, we launched the Simplicity 2 programme, which structures new ways of working to reduce workloads and focus more closely on tasks with high added value.
For L’Oréal, economic growth cannot be separated from social progress. To support this conviction, the L’Oréal Share & Care programme, created in 2013 and deployed in all our subsidiaries, offers employees a set of benefits organised around four pillars: social protection, healthcare, work/life balance and the working environment. This programme is constantly evolving and it is regularly improved, most recently in 2023 to support employees with cancer, to ensure it remains relevant and meets employees’ needs and expectations at every key moment of their lives.
L’Oréal is committed to providing learning programmes for 100% of its employees every year, worldwide, with the aim of developing their employability over the long-term. As part of a responsible and innovative social policy, in 2021, L’Oréal has also developed L’Oréal for Youth, a global programme to promote the employment of young people, which provides them with professional opportunities. 25,000 young people benefited from this in 2023.
L’Oréal offers its employees a policy of sharing its growth. Profit-sharing programmes have been in place globally for many years. In 2023, a total of €461 million was paid out under these schemes. L’Oréal set up an employee share ownership plan in 2018, 2020 and 2022. Over 37,000 Group employees worldwide have been able to become shareholders in L’Oréal.
Quality social dialogue is also one of the essential components of the L’Oréal model. It illustrates the Group’s desire to involve employees and their representatives to its development.
