2021 UNIVERSAL REGISTRATION DOCUMENT

4. L’Oréal’s social, environmental and societal responsibility

Exceptional measures to manage the Covid-19 health crisis

Since the beginning of the Covid-19 health crisis, L’Oréal has played its role as a solidary employer and a responsible company by taking strong measures to guarantee the health and safety of its employees in all its subsidiaries:

  • more than 40 international instructions are now in place in all the subsidiaries of the Group and adapted to the different locations and type of work (factories, distribution centres, laboratories, administrative sites). These measures were audited and certified in several subsidiaries by an independent organisation. They are constantly updated according to health situation evolution;
  • measures focused on prevention have been in place in all L’Oréal sites since the beginning of the crisis, including social distancing, the daily distribution of masks, the availability of sanitisers; the e-learning module #safetogether was rapidly developed internally to train employees in good personal protection practices;
  • vulnerable or at-risk employees are exempt from being physically present at work, depending on the health situation in each country;
  • an international travel ban was declared in February 2020 and lasted until July 2021. Since 1 August 2021,international travels are permitted in compliance with the healthcare protocols of each country, and provided that it is exceptional and essential;
  • L’Oréal’s remote working arrangements are tailored to the health situation of each country. From the start of the Covid-19 health crisis, e-learning modules were developed and disseminated to the best support to employees eligible for remote working. A hybrid work policy (see section 4.3.2.4. “Creating the conditions for a stimulating and attractive work environment” of this document) has been developed and is applied worldwide when allowed by sanitary conditions;
  • measures were taken to strengthen cyber security in the face of the increased risk of cyber-attacks during this period (see section 4.3.2.4. “Creating conditions for a stimulating and attractive work environment” of this document);
  • the fixed salaries of employees were 100% guaranteed during lockdown periods.
Policy INDICATORS AND PRINCIPAL RESULTS

Preserving employee health and safety

Moving towards « zero accidents » is the ambition that L’Oréal has set for itself.

Number of injured with lost-time: 129 (L’Oréal employees and temporary staff).

Objective: Conventional Frequency Rate (TFc) < 0.5 for all Group sites.

Conventional Frequency Rate (TFc): 0.73.

Enlarged total incident rate reported (TIRe): 1.39.

Accident gravity rate: 0.02.

Recruiting talented employees for the present and future success of the Group around the world

12,996 employees hired under permanent contracts

Over one million applications received in 2021.

Over 3.9 million followers on LinkedIn.

Development of employees all along their careers

Anticipate professional changes and the needs for future skill

100% of employees trained in 2021.

3,180,718 training hours

Creating the conditions for a positive and attractive work environment

Share & Care programme launched in 2013 and updated in 2021 to continue the existing program, with new perspectives in terms of personal wellbeing and flexibility at work, in line with the changing needs of the employees.

93% of the Group’s permanent employees benefit from financial protection in the event of unexpected life events

97% of the Group’s permanent employees benefit from healthcare coverage aligned with best local practices

86% of the Group’s employees work in subsidiaries where there are employee representative bodies.

46% of the Group’s employees are covered by a collective agreement and 97% of them are covered by company collective agreements.

Offering a motivating and competitive remuneration system

Amounts of profit-sharing schemes: €352 million distributed to employees.

Plan for the conditional grant of shares to employees: more than 3,600 employees involved 2020 employee shareholding plan: 35% participation

Insurance and retirement programmes: complementary pension plans in place in 88% of the countries where L’Oréal operates with its employees.

Strengthen gender equality

Accelerate the inclusion of disabled workers

Increase the diversity of socioeconomic and cultural origins in our teams.

On 31 December 2021, women represented:

  • 47% of strategic positions;
  • 51% of all key positions within L’Oréal S.A. ;
  • 55% of all key positions within the Group;
  • 32% of Executive Committee members; and
  • 50% of members of the Board of Directors.

With the goal of reaching parity up to the most strategic positions.

31 countries EDGE or GEEIS certified ☑.

1.8% employees with disabilities worldwide. L’Oréal’s goal is that people with disabilities will account for 2% of the Group’s statutory employees by 2025.

Over 75,000 employees trained in Diversity Workshops.

☑ The Statutory Auditors have expressed reasonable assurance about this indicator.