Shareholder structure: shareholders, whether individuals or legal entities, of L’Oréal, who own a portion of the capital of the company in the form of shares. (see subsection 1.1.3. and section 7.3).
Registered shares: shares registered in the shareholder’s own name, enabling the issuing company to identify them by name. Pursuant to Article 15 of the Articles of Association of L’Oréal, any shareholder who can prove at the end of a financial year, that shares have been registered in their name for at least two calendar years and that they continue to be registered in their name at the date of payment of the dividend paid for that financial year, will be entitled to a preferential dividend on the shares that are thus registered, equal to 10% of the dividend.
Autorité des Marchés Financiers (AMF): an independent, public, stock market authority, which is responsible for the protection of savings invested in financial products, investor information and the proper functioning of the markets.
Beauty Tech: new technologies for the cosmetics industry intended to enhance science via large scale cutting edge technologies and to offer unparalleled beauty experiences. (see paragraph 1.3.6.).
Market capitalisation: the market value of a company at a given moment. It is calculated by multiplying the market price by the number of shares comprising the share capital. On 31 December 2023, the market capitalisation of L’Oréal was €241 billion.
“Carbon neutral”: at the end of 2023, the Group replaced the internal “carbon neutral” status with a commitment to achieving 100% renewable energy(1)On the Group’s operated sites, excluding safety and security as defined in paragraph 4.5.1.3. Environmental data for all operated sites by 2025. However, it is still monitored to ensure compliance with the commitments that have already been made. It is defined as follows: a site must meet the following requirements: 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 and cooling gas leaks if they are lower than 130 tonnes CO2 eq./year; and indirect Market Based CO2 (Scope 2) = 0. It should be noted that renewable energy sources no longer need to be located less than 500 kilometres from the site.
CDP (formerly the “Carbon Disclosure Project”): an independent, recognised, international not for profit organisation, offering a system for assessing a company’s strategy, initiatives and results in the fight against climate change, sustainable water management and forest protection.
Code of Ethics: available in 30 languages, and as an audiobook in French and English, it is distributed to all employees worldwide. It enables employees to understand how Ethical Principles (Integrity, Respect, Courage and Transparency) need to be reflected in their behaviour and actions, by providing simple rules and a description of concrete situations they may encounter. The Code of Ethics applies to all employees, directors and corporate officers and members of the Executive and Management Committees of the Group and its subsidiaries worldwide. (see subsection 4.3.3.).
AFEP-MEDEF Code: a code of corporate governance comprising a set of recommendations drawn up by the Association Française des Entreprises Privées (AFEP) and the Mouvement des Entreprises de France (MEDEF), in the light of consultation with various market players on corporate governance issues. L’Oréal refers to this Code.
Specialised committees of L’Oréal’s Board of Directors: the Board of Directors has set up four specialised committees to help all Directors carry out their principal duties in a collective manner: the Strategy and Sustainability Committee, the Audit Committee, the Human Resources and Remuneration Committee, and the Nominations and Governance Committee. The duties of these Committees are set out in detail in subsection 2.3.3.
Consolidated financial statements: the consolidated financial statements include the financial statements of all the companies within the L’Oréal Group.
Financial statements: the parent company financial statements correspond to the annual financial statements of the Company, L’Oréal S.A. (the parent company).
Board of Directors: the collegiate body that defines the Company’s business strategy and monitors its implementation, in accordance with its corporate interest, taking into consideration the social and environmental challenges associated with its business activity.
Create the beauty that moves the world: L’Oréal’s sense of purpose (raison d’être). It is defined in concrete actions made to consumers, employees, clients, suppliers, shareholders, service providers and communities. L’Oréal is committed to fighting climate change, by respecting biodiversity and preserving natural resources, and to championing the cause of women. A full explanation of L’Oréal’s sense of purpose is given in subsection 1.1.1.
CSRD (Corporate Sustainability Reporting Directive): Directive (EU) 2022/2464 of 14 December 2022 on sustainability reporting standards. The CSRD will enter into force in 2025 for the financial year 2024 reporting period (Universal Registration Document 2024).
Non-financial performance statement (“NFPS”): the full range of information required by the regulations (European Directive of 22 October 2014 transposed into French law by the Order of 19 July 2017) on environmental, social and human rights, the fight against corruption and tax avoidance (see cross reference table in section 4.6.). This information is reported alongside additional, non mandatory information in chapter 4.
Preferential dividend: a dividend increase equal to 10% of the dividend granted to any shareholder who can prove at the end of a financial year, that shares have been registered in their name for at least two calendar years and that they continue to be registered in their name at the date of payment of the dividend (see “Registered Shares”).
EFRAG: the European Financial Reporting Advisory Group, a european advisory group that provides the European view on financial reporting, appointed to fully prepare drafts of the EU Sustainability Reporting Standards (ESRS) as stipulated by the CSRD.
Risk factors: risks specific to L’Oréal that are key to making informed investment decisions. (see section 3.5.).
