2023 universal registration document

The policy on diversity and gender balance deployed in the Group includes a yearly goal to maintain a proportion of women and men employees that may not be less than 40% in strategic positions (around 300 positions, including members of the Executive Committee). General Management reports annually to the Board of Directors on this policy and the results obtained during the previous financial year. From 2022, the long-term compensation plans include both non- financial and financial performance criteria, including a criterion linked to gender balance in strategic positions.

Since March 2019, L’Oréal has published its “Index of Professional Gender Equality”, which is calculated using five indicators defined by the “Professional Future” law.

This 2024 Group Index (2023 data) is at 97% for all of L’Oréal’s French entities.

Since 2007, L’Oréal has collaborated with the French National Institute for Demographic Studies (Institut national d’études démographiques – INED) to conduct an annual analysis of the differences in remuneration between women and men working in France. The aim is to ensure equal pay among those with the same skill level and classification. The median pay gap in France decreased from 10% in 2007 to 0% in 2019 (stable in 2020, 2021 and 2022) and the mean pay gap in France also fell during this period, from 31% in 2007 to 7% in 2022 (10% including the Executive Committee)⁽¹⁾For more information, see the “Diversity, Equity and Inclusion key figures” section under the “Commitments” tab on the loreal.com website..

In addition to the analysis in France, in 2020 L’Oréal launched a global tool to measure gender pay equality “all other things being equal” (net of structural effects), based on EDGE methodology, which uses a tolerance threshold of +/-5% ⁽²⁾ The methodology uses regression analysis to estimate the relationship between salary and pay (dependent variables) and one or more independent variables (such as gender, level of responsibility, age, length of service, etc.). The analysis was extended to 39 countries/regions ⁽³⁾ Argentina, Australia, Belgium, Brazil, Canada, Chile, China, Croatia, Czech Republic, Denmark, France, Germany, Greece, Hong Kong SAR, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Mexico, Netherlands, Norway, Philippines, Poland, Portugal, Russia, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan Region, Thailand, Türkiye, United Arab Emirates, United Kingdom, United States.in 2023, representing more than 90% of the global workforce (compared to 32 countries/regions in 2022). According to this analysis, the adjusted average salary gap in these countries/ regions is 0.71% in favour of men.

Measuring the gender pay gap is key to enable the Group to identify any potential challenges and implement targeted actions. L’Oréal aims to expand the scope of this analysis to all the countries in which the Group has more than 150 employees by 2025 ⁽⁴⁾ Around 50 countries in total.. In addition, L’Oréal is deploying a Gender Pay module in the HR information system so that countries/regions can monitor, analyse and improve their gender pay statistics. Structural effects are also addressed within a framework of equitable and inclusive HR policies.

L’Oréal has chosen to have its gender equality practices and policies audited and relies on two independent organisations to measure and assess the situation of its subsidiaries: Gender Equality European & International Standard (GEEIS) and Equity, Diversity and Gender Equality certification (EDGE). The Group’s head office in France and 27 of its countries⁽⁹⁾Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Latvia, Lithuania, Norway, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, the United Arab Emirates, Saudi Arabia and the United Kingdom.have been awarded the GEEIS label , and are audited every two years by Bureau Veritas to measure the progress achieved.

Eight other countries⁽¹⁰⁾ Australia, Brazil, Canada, India, Philippines, Russia, Switzerland and United States.currently rely on the EDGE certification process. The countries are audited by the third- party organisations Flocert or Intertek in order to be certified. L’Oréal USA has achieved EDGE Plus status, which provides an additional analysis of intersectional equity (LGBTQIA+, age, ethnicity, disability and nationality).

In total, 35 countries held EDGE or GEEIS certifications in 2023 ☑, The Statutory Auditors have expressed reasonable assurance about this indicatorwhich represents more than 60% of the Group’s workforce.

In 2023, an initiative from L’Oréal Brazil was awarded a GEEIS-SDG trophy in the fourth edition of the awards, organised by Arborus with the cooperation of the Representation in France of the European Commission and the United Nations agencies responsible for monitoring the Sustainable Development Goals.