Under her direction, different internal Committees related to sustainable development, composed of the experts responsible for the deployment of the programme, define the roadmaps for each of the entities represented (Operations, Research, Divisions, Zones). Each of the internal Committees defines annual objectives and directs their deployment throughout the L’Oréal value chain.
The mission of the Sustainable Finance Department created in 2020, is to integrate the environmental challenges from a financial standpoint. This Department, which reports to the Chief Administrative and Financial Officer and to the Chief Corporate Responsibility Officer, aims at developing and directing Sustainable Finance actions by coordinating the actions within the finance teams and by continuing to integrate sustainability in decisions on investments and acquisitions.
All L’Oréal employees are encouraged to receive training on sustainable development issues through a full range of online courses that are delivered as part of the L’Oréal for the Future programme, which are available in 15 languages. In 2021,over 41,400 employees completed the Green Steps or Green tests training modules.
Because sustainable development is a strategic transformation that must be driven by all teams, remuneration structures have been revised. At the highest level, the variable portion of the Chief Executive Officer’s annual remuneration incorporates quantitative and qualitative non-financial objectives, including objectives associated with the L’Oréal for the Future programme (and previously, the Sharing Beauty with All programme). The long-term remuneration of the Chief Executive Officer will introduce criteria for non-financial performance in addition to financial performance in order to correlate them with L’Oréal’s strategy for which economic and social performance go hand-in-hand (see section 2.4. “Remuneration of directors and corporate officers” of this document). Moreover, from 2016, non-financial objectives inline with the Group’s goals for sustainability have been included in the variable remuneration of the top management, including international brand managers and country managers.
Finally, within the framework of ongoing dialogue and as part of a process which aims at making continual progress, L’Oréal takes into account its stakeholders’ expectations in its strategy. For this purpose, the Group has defined and developed a method of ad hoc interaction, which it considers to be the most efficient and appropriate, with a representative panel of outside experts around the world. It has also set up bodies dedicated to important issues, for example in the form of a women advisory board, to ensure that these issues sufficiently meet the expectations of civil society. Section 4.1.2. “Constant dialogue with stakeholders” of this document sets out the primary stakeholder interactions.
Convinced that acting ethically is the only way for a company to succeed over time, the Chief Executive Officer can also rely on the Chief Ethics, Risk & Compliance Officer who reports directly to the CEO so that strong ethical principles continue to guide L’Oréal’s development and contribute to establishing its reputation.
In 2021, for the seventh consecutive year, L’Oréal was recognised as a Global Compact LEAD company for its continued commitment to the Ten Principles of the UN Global Compact and for placing the UN Sustainable Development Goals at the centre of its growth strategy.
