2021 UNIVERSAL REGISTRATION DOCUMENT

L’Oréal’s purpose (raison d’être) is a core principle for the Group, to see ourselves as a high-performing, committed, responsible, inclusive company showing solidarity in decades to come. L’Oréal’s raison d’être is included in the strategies defined by its Board of Directors and its business model.

L’Oréal’s raison d’être was developed following work implemented over almost two years, initiated and driven at the highest level by Mr Jean-Paul Agon and Mr Nicolas Hieronimus, as well as several members of the Executive Committee. L’Oréal’s raison d’être was the result of dialogue with Group employees in three of its key countries (France, the United States and China) and many external stakeholders, including consumers. The progress made was discussed several times in the Executive Committee. For L’Oréal, the aim was to collect and formalise what it contributes to the world as a company, its values and its commitments in one document.

This raison d’être was approved on 6 February 2020 by the Board of Directors, who incorporated it into their Management Report published in the 2019 Universal Registration Document and presented to the Annual General Meeting of Shareholders on 30 June 2020.

A single sentence epitomises L’Oréal’s sense of purpose (raison d’être): “Create the beauty that moves the world.” It is defined in concrete actions made to consumers, employees, clients, suppliers, shareholders, service providers and communities. L’Oréal is committed to fighting climate change, by respecting biodiversity and preserving natural resources, and to championing the cause of women.

In its Management Report, L’Oréal’s Board of Directors reports on the implementation of the commitments included in its raison d’être, and on the progress towards the goals set:

• for L’Oréal, economic performance is inseparable from its corporate social responsibility performance. The results of the Group’s non-financial performance, which are reviewed by external auditors along with its financial performance, reflect the achievements of L’Oréal arising from its raison d’être. Chapter 4 of this document, “L’Oréal’s Corporate Social Responsibility”, reports on the social, environmental and societal policies and progress, inclusion and ethics within the L’Oréal for the Future programme covering the Group’s commitments to sustainable development;
• L’Oréal also presents its progress and achievements in non-financial areas through its annual reporting made to the United Nations Global Compact;
• this chapter also reports on the Group’s financial performance, particularly through its business model (see section 1.2. “Business model: Economic and societal excellence to create lasting value for all” of this document); and
• the Group’s Corporate Social Responsibility performance is one of the factors considered in determining the variable portion of the remuneration of L’Oréal’s executive corporate officers (see section 2.4. “Remuneration of directors and corporate officers” of this document) and the Group’s senior managers.

1.1.2. A clear mission and strategy 

L’Oréal has defined a clear vision that is broken down into two points: its sense of purpose (raison d’être), which is detailed above, and Beauty for All. L’Oréal aims to offer women and men around the world the best in cosmetics in terms of quality, effectiveness, safety, sincerity and responsibility in order to meet all their needs and all their beauty wishes in their infinite diversity. More than ever, L’Oréal’s vision takes on its full meaning and represents a strong anchor in this increasingly unpredictable and complex environment.

L’Oréal’s strategy is Glocalization, meaning the globalisation of its brands with a detailed understanding and respect for local differences. The goal is to offer beauty by responding to the specific aspirations of consumers in every region of the world. In contrast to standardisation, it is based on careful attention to consumers and a deep respect for their differences⁽¹⁾.

1.1.3. The challenge of innovation: the strength of Research, Innovation and Technology

L’Oréal believes that beauty happens when science and technology come together to impress and meet the needs of consumers who expect new experiences over and above products and services.

On the one hand, the beauty of the future is now focused on Green Sciences as a new frontier of Research that reconciles efficiency, naturalness and sustainability to give the Group’s products, formulas or even packaging a competitive advantage; and, on the other hand, on Beauty Tech to enhance science via cutting-edge technologies on a large scale and to offer unparalleled beauty experiences.

Innovation is at the heart of the model and, coupled with technology, is a driving force for growth and discovery of new areas of beauty. Data, artificial intelligence, robotics and nanotechnologies will strengthen and speed up the Group’s innovations to help make it a champion of Beauty Tech. L’Oréal invents the beauty of the future while becoming the company of the future.