2023 universal registration document

• disability: to all employees, a fraction that depends on the level of disability, rising to 90% of their gross compensation limited to eight social security caps, up to this amount net of charges;
• death:
  • for all employees, the payment of a Lump Sum Death Benefit, increased depending on the employee’s family status. The amount of this Benefit is doubled in the event of accidental death;
  • for the employees affiliated with the benefit scheme for managers, employees governed by Article 36 of the AGIRC convention and sales representatives, the payment of a Spouse Pension to the surviving spouse. This ensures that the spouse has an income similar to the Surviving Spouse Pension paid for supplementary retirement contributions on the portion of remuneration greater than the annual cap on social security if death had occurred at the age of 65; and
  • for all employees, the payment of an Education Annuity to each dependent child, according to an age based schedule.

The total amount of the Lump Sum Equivalent for these guarantees may not exceed €2.3 million per event.

Minimum guaranteed lump sum death benefits: L’Oréal has established an additional guaranteed Lump Sum Death Benefit that supplements, where applicable, for all employees, the Lump Sum Death Benefit in an amount equal to three years’ average income. The total amount of the risk capital needed to fund the Surviving Spouse Pension and Education Annuity, the Lump Sum Death Benefits and the minimum guaranteed Lump Sum Death Benefit is capped.

Healthcare expenses: the healthcare scheme is compulsory for all the employees of L’Oréal and its French subsidiaries. Employees have the option of including their family members in these schemes. Contributions are, generally, individual. The employee contribution is partly financed by the Company.

4.3.2.6. Promoting Diversity, Equity and Inclusion (DE&I) 

Diversity, Equity and Inclusion are part of the strategic commitments of the Group, which aims to have teams that reflect the diversity of its consumers worldwide and to provide all employees with an equitable and inclusive working environment. The Group also adopts an inclusive approach towards communities, suppliers and stakeholders. The Group’s DE&I strategy is structured around four key pillars:

1. Increase socio- economic and multicultural diversity: promote and increase socio-economic and multicultural diversity in the Group’s teams;
2. Physical, mental and social well being: accelerate the inclusion of people with disabilities, by addressing both visible and invisible disabilities, mental health, chronic illnesses and neurodiversity, with a minimum target for the number of employees with disabilities in all countries;
3. Age and Generations: value and take into consideration people of all ages and generations; encourage dialogue and cooperation among employees of different generations; combat stereotypes based on age; and
4. Gender and LGBTQIA+⁽¹⁾LGBTQIA+: Lesbian, Gay, Bisexual, Transgender, Queer, Intersex, Asexual, +.: achieve gender parity at all levels and functions of the company; contribute to the establishment of more inclusive environments in favour of the LGBTQIA+ communities worldwide; act against any type of harassment or violence, particularly sexism, sexual harassment and gender based violence.

The Group’s DE&I policy is also reflected in its approach towards its suppliers (see paragraph 4.3.3.6.), its consumers, partners, communities and the NGOs and associations dedicated to inclusion in all Zones.

To achieve its objectives, L’Oréal relies particularly on an internal network of “DE&I Leads” within countries, functions and Divisions. They ensure the implementation of the Group's DE&I policy, which they adapt to their local context. The Group shares its achievements and progress in a dedicated section on the loreal.com website.

To measure employees’ perception of DE&I, “Pulse”, the annual in house survey on employee engagement, includes questions on this issue. In 2023, L’Oréal also included optional “self identification” (Self-ID) questions in the Pulse survey for the first time, providing employees with the opportunity to share information about their identity in complete anonymity. Analysis of the responses enables the Group to reinforce the fight against discrimination, to assess the effectiveness of the Group’s global DE&I actions and to better understand the diversity of its teams. 67% of employees answered the self identification questions in the countries where it was legally possible to include these questions in the Pulse survey. This represents more than 47,000 employees within the Group.

In advertising and marketing its products, L’Oréal is committed to communicating responsibly by ensuring that it respects the diversity of beauty needs and desires around the world. In its Code of Ethics, the Group commits not to harm the dignity of human beings or present degrading stereotypes in its advertising. It is also sensitive to possible reactions to the Group’s advertising from different religious, ethnic, cultural or social groups.

To strengthen its commitment to more inclusive marketing and advertising, L’Oréal joined the Unstereotype Alliance⁽²⁾Led by UN Women, the Unstereotype Alliance is a coalition of businesses and advertising industry bodies and organisations. The Alliance seeks to eradicate harmful stereotypes in media and advertising content, and to use advertising to drive positive change. in 2021. As a member of the World Federation of Advertisers⁽³⁾Global association of marketing specialists and national advertiser associations,in 2022 L’Oréal contributed to the publication of a Charter for Change, which aims to drive progress on DE&I issues within the advertising industry.

Launched in 2021, the Global DE&I Advisory Board brings together a diverse group of external experts and leaders from within the Group. The Board is co-chaired by the Chief Executive Officer and the Global Chief DE&I Officer. It met twice in 2023, and local boards also met in North America and the United Kingdom & Ireland.

In 2023, L’Oréal launched the second Beauty of Inclusion Awards, a competition to recognise the best DE&I initiatives led by local teams. The projects come from all Zones and Divisions, as well as functions and brands, and reflect L’Oréal’s commitment in all four pillars of the DE&I strategy. The final of the second edition of this competition is scheduled for 2024.