Scope of consolidation: the scope of consolidation covers POS purchasing expenses, such as displays or advertising elements at the points of sale, in the countries in which a L’Oréal subsidiary that has a Sourcing team is established. Every year the Sourcing teams in question report the POS expenses and the percentage of compliance with eco-design “Must Haves”.
Data: Country data are collected using the Intranet system dedicated to reporting by country, which can be accessed by each Sourcing team. Each team is responsible for compiling the data for their Country, and must validate the accuracy of the data communicated. The data are also validated by the Sourcing Zones. The indicator is consolidated at the Group level by the Global Retail Sourcing teams. In 2023, 52 countries or hubs participated in the reporting. The Sourcing teams and suppliers concerned are trained in eco-design, including the associated data collection process. The process is defined and explained every year to the teams responsible. The percentage of eco-designed POS is calculated in accordance with a self-declared statement from the suppliers trained in eco-design.
Scope of consolidation: the scope includes the Group’s new or fully renovated operated stores worldwide. The period considered is from 1 January to 31 December.
A store is considered eco-designed if the eco-design rate reaches 100% and/or if the store is LEED Gold certified. The eco design rate of the operated stores is calculated on the basis of the process tracking and the documentation of the Sustainable Retail Box checklist and according to a self- declaration of compliance of the points of sale, unless the store holds an external LEED certification.
Data: at the time the data is compiled, each Country team is responsible for verifying the accuracy of all data communicated to the teams of each of the Zones. The teams monitoring the process and the documentation of the Sustainable Retail Box checklist are trained in eco design. A process of continuous improvement of these systems has been put in place.
Scope of consolidation: to define the list of strategic suppliers, the spend baseline is from April 2023. The N-1 spend is updated at the end of November for indicators related to CDP and the environmental and social performance of suppliers.
Data: Suppliers participating in CDP had to be invited in advance by L’Oréal according to defined criteria:
CDP Climate Change: In 2014, participation in CDP Climate Change programme was made compulsory for all strategic suppliers. The Group also invites suppliers that are strategic for a Zone or country.
CDP Water: L’Oréal selects suppliers according to three criteria: particularly water-intensive technology or activity; location of at least one production site in a water-stressed catchment area; size of L’Oréal’s purchasing volumes.
CDP Forests: L’Oréal selects suppliers according to the impact of their activity on deforestation. Major suppliers of paper, palm oil and soy are invited to participate.
Clarification: no attempted bribery occurred this year during the social audits. The concept of attempted bribery mentioned in the audit report refers to an attempt to bribe the auditor and not to the fact that the supplier may have been involved in a bribery case.
Scope of consolidation: the period considered is from 1 January to 31 December over a worldwide scope. This scope covers workers from economically or socially disadvantaged communities who work at the Group’s suppliers and at their subcontractors. The programme is also for administrative staff of disadvantaged suppliers: companies owned and led by disadvantaged communities (support for female entrepreneurship or companies owned and led by minorities (1)As part of the Inclusive Sourcing programme, L’Oréal supports entrepreneurship among minorities recognised by the country’s governmental standards.,veterans, people from the LGBTQIA+ community) and small companies facing large competitors in their market. Beneficiaries of the programme must produce materials, goods or services purchased by L’Oréal. At least one of the following two criteria must be fulfilled: access to and remaining in a permanent job if their community is generally excluded or under-represented in the activity, or a substantial and lasting improvement in income thanks to the activity associated with the programme (fair sourcing).
Data: in the majority of projects, the methodology is based on the number of FTEs under local regulations, on the basis of a full year. The FTE number is proportional to L’Oréal’s weight in the supplier’s business activity, i.e. the proportion of the supplier’s payroll that is involved in the production of L’Oréal products. If the supplier’s employees work for other customers, the amount of the orders in relation to the supplier’s total revenue determines the number of hours assigned to the L’Oréal production. For projects related to the sustainable sourcing of natural raw materials, the unit of measurement of the beneficiaries is not FTE, but the number of producers concerned. The supplier, with the assistance of an independent third party, defines a threshold at which the project has a significant impact on the target community with respect to the local situation.
(1) As part of the Inclusive Sourcing programme, L’Oréal supports entrepreneurship among minorities recognised by the country’s governmental standards.
