This sustainability report presents L'Oréal's main environmental, social and governance (ESG) impacts, risks and opportunities, as well as its main sustainable development ambitions. It forms part of an approach based on transparency towards our stakeholders, including investors, consumers, employees(1), suppliers, customers (distributors) and civil society. This report has been drawn up in accordance with the Corporate Sustainability Reporting Directive (CSRD), which is aimed at standardising and improving the quality of sustainability reporting published by European companies. The reporting scope is based on that of the financial statements, with certain exceptions and estimates (based on the information available at the date of the report). These exceptions and estimates, together with the related uncertainties and limitations, are described in section 4.14.
Beauty is a universal aspiration that transcends time, borders and cultures. More than just desire, beauty fulfils a deep-seated need rooted in our lives and in society. Our contact with beauty starts with our first breath and ends with our last. Every important moment of our lives – from first lipstick to wedding day make-up – involves beauty rituals that act as a social bond, feeling at one with ourselves and connecting us to others.
Beyond appearances, beauty is closely linked to health and well-being. In a world where almost two billion people suffer from skin problems(2), the beauty industry plays a crucial role in prevention and treatment, thereby having a positive effect on physical and mental health. Feeling beautiful boosts self-confidence and facilitates social bonding, giving expression to individual identity in an increasingly connected world. In today's digital age, “social beauty” is re-inventing our interaction with each other, facilitated by social networks and e-commerce, widening access to products. L'Oréal is a pure player in this rapidly changing market, in which innovation and creativity are driving change.
Innovation is central to the L'Oréal model. With over €1.354 billion invested in Research & Innovation and 4,200 researchers, L'Oréal turns scientific discoveries into concrete solutions, keeping one step ahead of the needs of a market in continual flux. L'Oréal's strategy is built on the two complementary pillars of universalisation and singularisation. L'Oréal's unique multi-polar model allows us to respond to the aspirations of all consumers while respecting local cultural diversity. The interplay in L'Oréal's model between the collective and the individual is driving balanced, multi-polar growth across all Regions and Divisions that is proving resilient on a global scale.
Well aware that in the future there can be no economic growth without sustainability, L'Oréal has set itself a clear ambition to combine economic excellence with social and environmental performance. With a firm belief that economic excellence cannot be achieved without strong environmental and social responsibility, L'Oréal seeks to combine growth and sustainability. With this in mind, in 2025 the Group conducted a strategic review of its flagship programme, L'Oréal for the Future, which is now structured around 15 concrete objectives divided into four major pillars of sustainability: the climate, nature, circularity and communities (see section 4.1.2). The Group's Environmental Policy sets out guiding principles on climate, water and biodiversity, while guiding the integration of environmental considerations throughout its operations and value chain. This framework policy serves as the foundation document and is broken down into several detailed thematic policies, all of which are presented in this report and published on the Group's website, in order to give concrete form to these ambitions and ensure their operational implementation.
Driven by its humanist values, L'Oréal has always placed the individual at the heart of its strategy. The Group's people-oriented and employee relations approach is based on two key priorities: the development of each employee through ongoing training and career opportunities, and a unique social model, embodied by the Share & Care programme, launched in 2013 and based on competitive employee relations performance and sharing the benefits of growth.
For more than 20 years, L'Oréal has been striving to building a sustainable, equitable, inclusive and diverse organisation. These initiatives showcase the Group's determination to create a working environment that is conducive to personal fulfilment. This ambition extends beyond L'Oréal, with the Group striving to respect human rights along its entire value chain.
