2025 Universal Registration Document

3. Risk factors and risk management

Applicable Rules to prevent risks of serious adverse impacts on Safety and Health in the workplace and the Environment
EHS guidelines

The Group's Environment, Health and Safety (EHS) Policy aims to minimise the impact on the environment and guarantee the health and safety of the employees of its Subsidiaries and Suppliers, its customers and the communities in which L'Oréal carries out its activities. For the Subsidiaries, this policy is built on an EHS management system composed of standards with stringent requirements that set the principles of L'Oréal's EHS policy, which is all included in the EHS guidelines.

Additional Environment, Health and Safety actions

In addition to the action taken as a result of the risk analysis conducted on the business activities of the Group and its Suppliers, L'Oréal conducts Environmental Health and Safety in the Workplace initiatives in addition to those implemented under the French law on Duty of Vigilance.

(i) Additional actions intended for Subsidiaries' sites

In terms of site security, L'Oréal implements the LIFE (Life-changing Incident or Fatality Event) programme, covering activities on all its sites which, if not properly managed, could result in potentially serious employee injury or illness. The Group extends the ambition of moving towards "zero accidents" by ensuring the sustainability of actions and defining post-incident emergency preparedness requirements.

In parallel, under the L'Oréal for the Future programme, Subsidiaries have set the following environmental objectives:

  • Climate: by 2030, reach 100% renewable energy on operated sites and in stores(1) ;
  • Water: by 2030, use 100% recycled or reused water for industrial purposes in factories.

These objectives, which are defined annually and tracked by monthly reports, make it possible to assess the performance of each site, country and Region. A summary of the results of the L'Oréal for the Future programme is provided in section 1.4.2.

To validate and reinforce the effectiveness of its EHS policy, the Group is engaged in a process of continuous performance improvement based on an ISO certification programme for its sites. This includes ISO 45001 certification for occupational health and safety and improved working conditions, ISO 14001 certification for environmental management systems and improved environmental performance, and ISO 50001 certification for energy management.

Specific audits are carried out by in-house EHS specialists to assess the extent to which the EHS culture has been rolled out to all employees at Subsidiaries. The results of these audits provide information on the knowledge of EHS management tools and the maturity of audited sites with regard to the Safety and Environment culture at all levels of the hierarchy.

Particular attention is paid to the management of leaks of cooling gas used for the production of cold (e.g., refrigeration units) and heating gas (e.g., heat pumps) at sites operated by the Group. Following an overall inventory of the facilities, a risk reduction strategy was put in place, based on two pillars: detecting and managing leaks and replacing traditional cooling gases with alternative cooling gases with low global warming potential.

(ii) Additional actions intended for suppliers

L'Oréal is committed to selecting its suppliers rigorously, based on open and transparent competitive bidding. Suppliers are selected based on objective criteria such as quality, price and innovation capabilities as well as performance in terms of social and environmental responsibility.

As part of the L'Oréal for the Future programme, L'Oréal has set the following environmental objectives that concern Suppliers or that could relate to their business:

  • Climate: by 2030, reduce its Scope 3 greenhouse gas emissions from the Group's purchased goods and services, employee business travel, upstream transportation and distribution by 28% compared with 2019;
  • Biodiversity: (i) ensure that at least 90% of the biobased ingredients and materials used in formulas and packaging come from sustainable sources and (ii) regenerate an area of land larger than the Group's footprint within priority ecosystems to improve their health and resilience.
Sustainable purchasing of raw materials

L’Oréal’s Forest Policy, updated in April 2025, reaffirms the Group’s vision regarding forest stewardship and restoration. It also aims to prevent deforestation and ecosystem conversion, and any violation of human rights along its supply chains of raw materials subject to deforestation risk. In this context, L’Oréal is committed to sustainable palm production and is developing a roadmap based on six pillars:

  • Sourcing certified raw materials:In 2025, 100% of the palm oil and 99.9% of palm derivatives purchased by the Group is Roundtable on Sustainable Palm Oil (RSPO) certified. This certification attests to compliance with environmental and social standards for sustainable palm oil production, including the protection of forests, workers' rights, local communities and indigenous peoples. 
  • Transparency in the palm sector: L'Oréal identifies the Suppliers in its palm value chain through the Action For Sustainable Derivatives (ASD) coalition, which the Group co-founded in 2019. 97% of L'Oréal's 2024 volumes of palm was traced back to the refinery and 97% traced back to the mill.
  • Analysis and management of associated risks: This transparency enables L'Oréal to analyse the risks associated with its supply zones. The Group has set up satellite surveillance of supply areas around identified mills to detect potential cases of deforestation. The overall risk identification system is rounded out by reports received from external stakeholders, media monitoring, and publications by the ASD grievance taskforce.