2021 UNIVERSAL REGISTRATION DOCUMENT

Digital development criteria	Weighting 7.5%
Increase in sales achieved in e‑commerce	Increase in sales achieved in e‑commerce Weighting 7.5% €9.3 billion in net sales, i.e. 28.9% of Group sales (+ 2.3 points), up +26% compared to 2020. Strong acceleration in Europe and in SAPMENA.
Partnerships and innovation	Partnerships and innovation Weighting 7.5% Ecosystem of partnerships developed in collaboration with the IT/R&I and Beauty Tech teams: advanced research and discoveries via Verily, Clue and BreezoMeter. L’Oréal and Facebook announced a technological integration allowing buyers on Instagram to virtually try on makeup products with ModiFace, L’Oréal’s owned augmented reality and artificial intelligence company. Continued development of technologies coming from the ModiFace acquisition. Roll-out of 1,253 projects (+240 in 2021) at the sites of 24 brands in 110 countries, scaling of virtual try-outs of makeup, hair colour, skin diagnostics, and product recommendations. Integration of our Modiface technologies at 50 retailers, including Watsons, DM, Amazon, Sephora, and TMall. Integration of Modiface technologies on the most important digital platforms (Facebook, Instagram, YouTube, Google Search, Snapchat, WeChat, Pinterest). Gaming initiatives: sponsorship of the Dignitas female team by NYX PMU.
New consumer interaction models	New consumer interaction models Weighting 7.5% Harnessing new platforms such as TikTok. Development of the Livestreaming & Liveshopping programme: > 10,000 livestream sessions for L’Oréal brands.
Continuation of the Company’s digital transformation	Continuation of the Company’s digital transformation Weighting 7.5% Continuing to shift the Beauty experience from products to services. Deployed skin diagnostic tools in 2021 – 15,000 images from R&I were used to identify 16 different skin problems. Increased digital media investments (73% of media expenditure vs 61% in 2020). Recruitment and training: the digital community is made up of more than 3,500 experts (vs 2,800 at the end of 2020) and nearly 25,000 people were trained as part of the Digital Upskilling programme in 2021, i.e. 50% of the number of people trained over the period 2015–2020. Third season of the CM1 test: 4,940 employees passed this test in 2021 (priority was given to marketing, CMI and communication functions), as well as nearly 8,000 applicants in the recruitment phase.
Gartner L2 Digital ranking	Gartner L2 Digital ranking Weighting 7.5% Six brands in the top 20 of the Gartner Digital transformation ranking in the key countries: USA, UK, France, Germany and China. Ranked no. 1 in Gartner’s Digital IQ Index: Personal Care U.S.

Qualitative criteria: Management	Weighting: 7.5%
Governance	Governance Weighting: 7.5% Prepared the new governance structure and ensured that Nicolas Hieronimus’ transition to CEO was an exemplary process. L’Oréal received the AGEFI Grand Prix Award for exemplary corporate governance in 2021.
Covid-19 crisis management	Covid-19 crisis management Weighting: 7.5% When conditions made it possible, a new hybrid work model was implemented. 12,909 employees completed the Best of Both Worlds (BOB) training module to familiarise themselves with a hybrid working environment. Maintained a very high level of health safety for employees around the world.

Qualitative criteria: Image, Company reputation, Dialogue with stakeholders	Weighting: 7.5%
The Group’s influence at international and national level	The Group’s influence at international and national level Weighting: 7.5% Member of the International Business Leaders’ Advisory Council (IBLAC), the Advisory Council for the Mayor of Shanghai. Member of the Steering Committee of the European Round Table. Member of the French Association of Private Enterprises (AFEP) Board of Directors.
Attendance at forums and conferences that promote the value of the Company in society	Attendance at forums and conferences that promote the value of the Company in society Weighting: 7.5% Speech at the European Commission’s launch event for the EU Green Consumption Pledge, for which L’Oréal is a pledging company. Speech as part of the EU-China business dialogue platform, in the presence of the Chinese prime minister. Participation in a discussion panel during EU Industry Days. Presentation at the launch of the first hackathon by Hi! PARIS, an interdisciplinary centre dedicated to AI and data science created by HEC Paris and IP Paris, of which L’Oréal is a partner. Presentation at the 2021 OECD Global Anti-Corruption and Integrity Forum.
Sustainable development	Sustainable development Weighting: 7.5% L’Oréal is the only company in the world, among nearly 6,000, to have received three “A” ratings from the Carbon Disclosure Project for the sixth consecutive year, which is the highest score in three areas: climate, sustainable water management and the fight against deforestation. L’Oréal received the Terra Carta Seal by HRH The Prince of Wales in recognition of its commitment to creating a sustainable future. L’Oréal was ranked No. 1 across all categories in the Vigéo Eiris ranking.
Diversity and inclusion	Diversity and inclusion Weighting: 7.5% L’Oréal was one of the top 100 companies in the Refinitiv Diversity & Inclusion ranking. L’Oréal won the “Parité du Top 100” Special Award for the Feminisation of Governing Bodies. L’Oréal was one of the top five most advanced companies in the world in terms of gender equality (Equileap’s 2021 Gender Equality Global Ranking, which assesses nearly 4,000 companies in 23 countries). Mr Jean-Paul Agon received the "Courage Against Hate" award from the Anti-Defamation League.
Ethics	Ethics Weighting: 7.5% L’Oréal was recognised for the twelfth time as one of the “World’s Most Ethical Companies” by the Ethisphere Institute. For the seventh consecutive year, L’Oréal was recognised as a Global Compact LEAD company by the United Nations.