2021 UNIVERSAL REGISTRATION DOCUMENT

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

4.5.2.2.  Empowering the Group’s business ecosystem
Beneficiaries of the Solidarity Sourcing programme
Scope of consolidation

The period considered is 12 months from 1 January to 31 December of the current year over a worldwide scope.

Conditions apply and must be met in order to be counted as a beneficiary of the Solidarity Sourcing programme:

  • Workers from economically or socially disadvantaged communities who work at the Group’s suppliers and their subcontractors;
  • The supplier must also produce materials, goods or services purchased by L’Oréal; in other words, the work hours are assignable to the Group;
  • Finally, being counted as a beneficiary requires meeting at least one of the following two criteria: access to and remaining in a permanent job if their community is generally excluded or under-represented in the activity and, as applicable, a substantial and lasting improvement in income thanks to the activity associated with the "Solidarity Sourcing” programme.
Data

In the majority of projects, the counting methodology is based on the number of full-time equivalents (FTE) under local regulations and on the basis of a full year. The FTE number is proportional to L’Oréal’s weight in the supplier’s business activity. Thus, the number of beneficiaries of the "Solidarity Sourcing” programme who work at a supplier is calculated as a proportion of the payroll of the supplier who participates in the production of L’Oréal products. However, if the supplier’s employees work for customers other than L’Oréal, it is then the amount of the orders in relation to the supplier’s total revenue that determines the number of hours assigned to the L’Oréal production.

A specific feature should be noted for projects related to sustainable sourcing of raw materials (e.g. Projects based on fair trade principles); the unit of measurement of the beneficiaries is not FTE, but the number of producers concerned. The supplier, with the assistance of an independent third party, defines a threshold at which the project has a significant impact on the target community with respect to the local situation (for example, living conditions or income). It is then possible to count the beneficiary workforce for said project resulting from the “Solidarity Sourcing" programme.

People from very difficult social or economic situations trained in beauty professions.
Scope of consolidation

This indicator is calculated over a global scope using annual data and a sliding total over four years.

This is the number of people trained (beneficiaries) within the Beauty for a Better Life programme implemented by the partner structures (NGOs, etc.) between 1 January and 31 December 2021.

Data

The data collection is performed by managers of the programme at L’Oréal’s subsidiaries on the basis of the information and a certificate of compliance transmitted to them by the partner structures. The data are collected and consolidated by the Foundation teams (within the Department of Corporate Responsibility) that perform consistency controls.

People in very difficult social or economic situations who have benefited from beauty care and wellbeing treatments
Scope of consolidation

This indicator is calculated over a France scope using annual data. This is the number of people who have benefited from beauty care under the Beauty for a Better Life programme implemented by the partner structures (NGOs, etc.) between1 January and 31 December 2021.

Data

The data are collected by the programme’s partners structures. The data are collected and consolidated by the Foundation teams (within the Department of Corporate Responsibility) that perform consistency controls.

Beneficiaries of our brands’ social engagement programmes
Scope of consolidation

This indicator is calculated over a scope limited to the brands that have social engagement programmes. The scope excludes the brands’ environmental programmes. Also excluded from the scope of consolidation are product donations and media awareness-raising campaigns.

Data

The following method is used to collect data for the defined scope: in order to be counted, a beneficiary must be directly supported by a NGO partner of the brand’s programme or have received training from the brand or the NGO partner of the brand’s programme. The data are collected and consolidated by each Marketing department and each subsidiary, which must validate the accuracy of all the data consolidated and communicated.

Displaying the environmental and social impact of the products
Scope of consolidation

The indicators concern all rinse-off products that belong to one of the following categories: Shampoo, Conditioner & Masks, Leave-in care & Oil, Colouring, Face Cleanser, or Body Cleanser manufactured in the year 2021 over a Group scope. The indicators do not count the Hand Cleanser and Rinse-off Shave Cream categories.

The indicators used are those used in the application of the Product Impact Labelling (PIL) methodology. They reflect the results of the Group’s policy for measuring the environmental and social impact of the products. The calculation method and the data are verified by independent auditors.

Data

The data for the defined scope is collected by the Operations Department using SPOT (Sustainable Product Optimization Tool).