2021 UNIVERSAL REGISTRATION DOCUMENT

3. Risk factors and control environment

SUBSIDIARY AUDIT MATRIX
Type of country Sites audited
All countries

All countries

Sites audited

Factories, dispatch centres, R&D sites and administrative sites

MATRIX THAT TRIGGERS SUPPLIER AUDITS ACCORDING TO RISK MAPPING
Business sector Description of business sector Type of country Suppliers audited
Raw materials Raw materialsDescription of business sector

Suppliers of ingredients used to produce cosmetics in L’Oréal factories

Raw materialsType of countryCountries classified as “high risk” Raw materialsSuppliers audited

100% of Suppliers

Packaging PackagingDescription of business sector

Suppliers of packaging used for production in L’Oréal factories

PackagingType of country

Countries classified as “high risk”

PackagingSuppliers audited

100% of Suppliers

Subcontractors SubcontractorsDescription of business sector

Suppliers producing cosmetics for L’Oréal (Full-buy, Full-service, etc.)

SubcontractorsType of countryCountries not classified as “high risk” SubcontractorsSuppliers audited

100% of new Suppliers (initial audit) When the “satisfactory” or “NCI” (Needs Continuous Improvement) rating is achieved, additional audits are no longer necessary

 

 

Description of business sector

 

 

Type of country

Countries classified as “high risk”

 

Suppliers audited

100% of subcontractors

Dermo-cosmetic devices Dermo-cosmetic devicesDescription of business sector

Suppliers of equipment & electronics

Dermo-cosmetic devicesType of country

Countries classified as “high risk”

Dermo-cosmetic devicesSuppliers audited

100% of Supplier Production Sites

Manufacturing equipment Manufacturing equipmentDescription of business sector

Suppliers of manufacturing equipment (processing tanks, filling machines, etc.)

Manufacturing equipmentType of country

Countries classified as “high risk”

Manufacturing equipmentSuppliers audited

100% of Supplier Production Sites

Promotional items Promotional itemsDescription of business sector

Suppliers of promotional items (bags, etc.)

Promotional itemsType of country

Countries classified as “high risk”

Promotional itemsSuppliers audited

100% of Supplier Production Sites

Items intended for points of sale Items intended for points of saleDescription of business sector

Suppliers of items intended for the presentation of products at points-of-sale

Items intended for points of saleType of country

Countries classified as “high risk”

Items intended for points of saleSuppliers audited100% of Supplier Production Sites
Services intended for points-of-sale  Services intended for points-of-sale Description of business sector

Architects, general contractors

,

maintenance

Services intended for points-of-sale Type of country

Not applicable

Services intended for points-of-sale Suppliers audited

Not applicable

Co-packing Co-packingDescription of business sector

Co-packing Suppliers (sometimes called subcontractors or

Co–Packers)
Co-packingType of country

Countries not classified as “high risk”

Co-packingSuppliers audited

100% of new Suppliers (initial audit)When the “Satisfactory” or “NCI” (Needs Continuous Improvement) rating is achieved, additional audits are no longer necessary

 

 

Description of business sector

 

 

Type of country

Countries classified as “high risk”

 

Suppliers audited

100% of Supplier Production Sites

Logistics service providers (excluding transport) Logistics service providers (excluding transport)Description of business sectorExternal distribution centres Logistics service providers (excluding transport)Type of country

Countries not classified as “high risk”

Logistics service providers (excluding transport)Suppliers audited

100% of new Suppliers (initial audit) When the “Satisfactory” or “NCI” (Needs Continuous Improvement) rating is achieved, additional audits are no longer necessary

 

 

Description of business sector

 

 

Type of country

Countries classified as “high risk”

 

Suppliers audited100% of Suppliers’ logistics sites