Scope of consolidation: newly acquired entities are included in the scope of publication as soon as possible following their acquisition and, at the latest, in the first full financial year following their acquisition. By way of exception, if all or part of the information and data relating to a newly acquired entity are not available in sufficiently reliable form, this entity will only be included from the second full financial year following its acquisition.
Entities sold are excluded from the scope of publication from the financial year in which they are sold.
The employees indicated and their breakdown correspond to the total workforce(1)Certain acquisitions/subsidiaries (Aēsop, Modiface, Lactobio, Bak Skincare and L’Oréal in Luxembourg (Atelier Cologne)), whose IT systems are not integrated with that of the Group, are excluded from the reporting. Aēsop’s workforce represents 4.57% of the Group’s total employee workforce and the workforce of other subsidiaries excluded from social data represent 0.09%..
The 393 employees in the Luxury of Retail (formerly known as Retail Excellence 4), Centre thermal de La Roche Posay, Thermes Saint-Gervais Les Bains Le Fayet, Real Campus by L’Oréal (hairstyling and entrepreneurship school) and Mugler Fashion entities are included in the total workforce. The distributions of these employees are calculated in proportion to the distribution of France employees. They are excluded from the indicators on diversity, learning, minimum salaries and the number of collective agreements.
Indicators: the indicators chosen are those used in the management of employees and of the social aspects of the Company. They reflect the results of the HR policy.
Data: four methods are used to collect data for the defined scope. Most of the data are collected using the dedicated “Country Reporting” Intranet, available in all countries in which there is a L’Oréal “subsidiary”. In the context of this “Country/Region Reporting”, a subsidiary is a structural HR concept: each subsidiary comprises one or more legal entities, and covers one country or supra-national or sub-national region. Exceptionally, the United States, Korea and Hong Kong SAR each have two subsidiaries. Some subsidiaries cover several countries: the Baltic Countries (Lithuania, Latvia, Estonia), Croatia (Croatia, Slovenia, Bosnia), the United Arab Emirates-Saudi Arabia (United Arab Emirates, Saudi Arabia), and the United Kingdom (United Kingdom and Ireland). The system covers several topics: employees; learning; absenteeism; labour relations; the L’Oréal Share & Care programme; compensation; diversity; recruitment; freedom of association; and profit sharing. At the beginning of the financial year, the local HR Directors provide the required data for the previous year. Other data are collected by the Learning and Recruitment Departments using dedicated systems which follow the same operational and dissemination approach. If information is not consolidated for the entire scope of the Group, it can be extrapolated from the available results for the entities connected to the local Information Systems (IS), provided that the scope covered by such entities is representative. The data relating to specific populations, such as expatriates or key positions, for example, are gathered from the “CAROL” online career monitoring system,deployed in all subsidiaries of the Group. Trained employees include the total number of employees, including those who left the Group during the year or who completed at least one learning course during the year, regardless of the format (in person, virtual classroom, digital) and length of the learning course. Hours spent in a learning course that straddles two years are recorded in the second year. Learning hours may include lunch breaks for all day learning. Concerning the L’Oréal Share & Care indicator relating to healthcare coverage, the best practices in the countries are regularly evaluated in each country in which the Group is present.
A process of continuous improvement of these systems has been put in place. They are reviewed each year, taking into account the Statutory Auditors’ recommendations and the monitoring objectives for subsequent years (updating the indicators to be monitored, improving their definition and their communication, monitoring and control process).
Scope of consolidation: safety indicators relate to 95% of the sites, such as factories, distribution centres, administrative sites, research centres with more than 50 employees, stores, and salesforces. At year-end 2023, 173 administrative sites and research centres, salesforces and stores participated in the reporting. To achieve better monitoring of accident history by type of site, safety reporting from administrative sites has been refined and split into three categories: administrative sites with only administrative staff, salesforces for travelling staff and stores for in-store beauty consultants managed by L’Oréal. The safety indicators of the factories, distribution centres, administrative sites or research centres sold or closed during the financial year are reported in full up to the date they exit the scope. The factories, distribution centres, administrative sites or research centres that join the Group have a maximum period of two years to integrate the environmental and safety reporting systems. It should be noted that the number of sites varies little from one year to the next.
Indicators: the indicators applied are those used in the management of the Group’s sites. They reflect the results of the Group’s Environment, Health and Safety (EHS) policy. Hours worked report the time during which the staff is exposed to professional risks, including remote work or the equivalent. They include overtime hours. However, they do not include public holidays or days of absence, such as sick days and paid holidays.
Data: the health and safety data are collected using the dedicated Intranet-based site reporting system. This is available in all countries in which there is a L’Oréal subsidiary. The required data are reported every month by the local managers. When the data are compiled, each site or zone must validate the accuracy of all the data provided. A process of continuous improvement of these systems has been put in place.
(1) Certain acquisitions/subsidiaries (Aēsop, Modiface, Lactobio, Bak Skincare and L’Oréal in Luxembourg (Atelier Cologne) ), whose IT systems are not integrated with that of the Group, are excluded from the reporting. Aēsop’s workforce represents 4.57% of the Group’s total employee workforce and the workforce of other subsidiaries excluded from social data represent 0.09%.
