2021 UNIVERSAL REGISTRATION DOCUMENT

4.5. Methodological notes

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

4.5. Methodological notes

4.5.1. Social and health and safety data

4.5.1.1. Social data
4.5.1.1.1. Scope of consolidation

The employees indicated and their breakdown correspond to the total headcount(1).

Employees in the Retail Excellence 4, Thermes de La Roche Posay, Saint Gervais Mont Blanc, Ecole OA and Mugler Fashion entities, a total of 444 employees, are included in the total workforce. The different distributions of these employees are calculated in proportion to the distribution of France employees. They are excluded from the indicators on diversity, training, minimum salaries and the number of collective agreements.

4.5.1.1.2. Indicators

The indicators chosen are those used in the management of employees and of the social aspects of the Company. They reflect the results of the Human Resources policy.

4.5.1.1.3. Data

Four methods are used to collect data for the defined scope:

    • most of the data are collected using the dedicated “Country Reporting” Intranet, available in all countries in which there is a L’Oréal subsidiary. The system covers several topics: employees, training, absenteeism, labour relations, the L’Oréal Share & Care programme, remuneration, diversity, recruitment, freedom of association and profit sharing. At the beginning of each financial year,the local Human Resources Directors provide the required data for the previous year;
    • other data are collected by each department concerned (i.e. Training, Recruitment) using dedicated systems which follow the same operational and dissemination approach;
    • if information is not consolidated for the entire scope of the Cosmetics Division, it can be extrapolated from the available results for the entities connected to the local Information Systems (IS), provided that the scope covered by such entities is representative; and
    • lastly, the data relating to specific populations (expatriates, key positions, etc.) are gathered from the “CAROL” online career monitoring system, deployed in all subsidiaries of the Cosmetics Division.

The number of employees trained is calculated on the basis of all types of training format and length. Trained employees include the total number of employees (including those who left the Group during the year) who took at least one training course during the year, including regular users of the My Learning platform.

Concerning the L’Oréal Share & Care indicator relating to healthcare coverage, the best practices in the countries are regularly evaluated in each country in which the Group is present.

For absenteeism because of illness, the scope and methodology of the indicator have not changed over the past three years. The 2019 and 2020 values for illness absenteeism were corrected (2.2% instead of 2.0%), as a result of a material error that was made in 2019 and 2020.

A process of continuous improvement of these systems has been put in place. They are reviewed each year, taking into account the Statutory Auditors’ recommendations and the monitoring objectives for subsequent years: updating the indicators to be monitored, improving their definition and their communication, monitoring and control process.

4.5.1.2. Health and safety data
4.5.1.2.1. Scope of consolidation

The safety indicators relate to all sites: factories, distribution centres, administrative sites, research centres and stores,as well as sales forces.

Safety reporting covers 100% of the plants, distribution centres, administrative sites, research centres, sales forces and stores.

At year-end 2021, 173 administrative sites and research centres, sales forces and stores participated in the reporting.

To achieve better monitoring of accident history by type of site, safety reporting from administrative sites has been refined in recent years by being split into three categories: administrative sites with only one strictly administrative staff; sales forces for travelling staff; stores for in-store beauty consultants managed by L’Oréal.

The safety indicators of the factories, distribution centres, administrative sites or research centres sold or closed during the financial year are reported in full up to the date they exit the scope. The factories, distribution centres, administrative sites or research centres that join the Group have a maximum period of two years to integrate the environmental and safety reporting systems.

4.5.1.2.2. Indicators

The indicators applied are those used in the management of the Group’s sites. They reflect the results of the Group’s Environment, Health and Safety (EHS) policy.

Hours worked report the time during which the staff is exposed to professional risks, including remote work or the equivalent. They include overtime hours. However, they do not include holidays and days of absence (illness, paid holidays).

(1) The subsidiaries in Venezuela were deconsolidated at 31 December 2015. Certain acquisitions /subsidiaries (Modiface, Stylenanda Japan, Takami Cosmetics, Côte d’Ivoire, Bangladesh, Luxembourg), whose information systems have not yet been integrated in the Group’s system, are excluded from the reporting. They represent 0.19% of the Group’s employees.