L’Oréal presents its Corporate Social Responsibility strategy(1) in order to meet the requirements of the Non-Financial Information Statement(2) in particular. This Declaration sets out the Group’s main non-financial risks and then describes the policies implemented to address them, which are monitored and measured by performance indicators and their results. This presentation refers to the Group’s business model, set out in section 1.2. “Business model: economic and societal excellence to create lasting value for all” of this document. As L’Oréal has had a long-standing commitment to corporate social responsibility, section 4.3. “Policies, performance indicators and results” of this document also includes the policies and actions voluntarily implemented beyond a response to the main risks.
In application of the European Directive of 22 October 2014 on the disclosure of non-financial information, as transposed into French law, the main environmental and social risks, the main risks related to Human Rights and the main corruption risks(3) are detailed in this section 4.2. to the extent necessary to gain an understanding of the Company’s position, business development, economic and financial results, and impacts of its activity.
The Group’s significant risks, i.e. the risks that could have a material impact on its business, financial position, or outlook, are described in chapter 3 of this document (see section 3.5.“Risk factors and risk management” of this document) and have been established in conjunction with the Group risk mapping (see section 3.5.2. “Risk mapping” of this document). These risks cover all areas of the Group’s activities. Some of these risks are specific to non-financial issues; others are broader and may stem from environmental or societal causes.
These so-called “CSR” risks were the subject of detailed analysis to select the main risks within the meaning of the Non-Financial Information Statement. This analysis was carried out based on the work of Group experts, in conjunction with the Ethics, Risk and Compliance Department and in compliance with the Group’s business model. This work also draws on the sustainable development materiality analysis, the Group’s Human Rights and corruption mapping and corruption mapping conducted for each country, as well as on the risk analysis carried out within the framework of the Vigilance Plan (see section 3.4. “Vigilance plan” of this document).
The risks associated with climate change have been the subject of a long-term approach – more than 10 years – given their specific nature.
The main risks have been validated at the highest level of responsibility of the organisation by the relevant General Managements.
The main risks in respect of corporate social responsibility, Human Rights and corruption identified by the Group, as described in section 4.2.1. “Risk identification process” of this document, are set out below. Other risks, of which the Group is not currently aware or which it does not consider material at the date of this Document, could have a negative impact.
For the main environmental risks, the concept of risk covers both risks related to the impact of the Group’s business activities on its ecosystem and the risks of the impact of climate change in the short and medium terms on its business model, activity and financial performance(4).
(1) The acronym “CSR” refers to Corporate Social Responsibility.
(2) NFIS, Non-Financial Information Statement – Prepared pursuant in particular to Articles L. 225-102-1 and L. 22-10-36 of the French Commercial Code, resulting from French Order no. 2017-1180 which transposed Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 on the disclosure of non-financial information.
(3) In accordance with the regulations, information on the fight against tax evasion is given in section 4.3.5. “Tax policy” of this document.
(4) Pursuant to French Financial Markets Authority - AMF recommendation no. 2018-12 of 29 October 2018, the 2019 AMF report on the “Corporate social responsibility of listed companies”, and the Guidelines of the European Commission on Climate of 20 June 2019.
