2025 Universal Registration Document

Biogenic carbon emissions from the combustion or bio-degradation of biomass not included in Scope 1 GHG emissions

Renewable energy purchases and contractual instruments (E1-6 AR 45)

4.2.5.4 GHG removals and GHG mitigation projects financed through carbon credits (E1-7)

Although the cosmetics industry has a low carbon footprint compared to other industries, L'Oréal is focusing its efforts on decarbonising the value chain. The Group does not currently use carbon offsetting mechanisms and relies on biodiversity to capture carbon. In 2020, the Group launched the L'Oréal Fund for Nature Regeneration. Endowed with €50 million, its mission is to restore one million hectares of ecosystems by 2030, with the overall goal of capturing 15 to 20 million tonnes of CO₂ and creating jobs⁽¹⁾ in the process.

4.2.5.5 Alignment with the EU Taxonomy

4.2.5.5.1 Reminder of the regulatory environment and L'Oréal's sustainability strategy

L’Oréal publishes its taxonomy report in accordance with Regulation (EU) 2020/852 (the “Taxonomy Regulation”) and the associated delegated regulations. These include Delegated Regulation (EU) 2021/2139 and Delegated Regulation (EU) 2023/2485 on climate objectives, and Delegated Regulation (EU) 2023/2486 on non-climate environmental objectives. This approach incorporates the European Commission and Platform on Sustainable Finance doctrine, and takes into account the new Delegated Regulation (EU) 2026/73 published in the Official Journal of 8 January 2026, which amends Delegated Regulations (EU) 2021/2178, (EU) 2021/2139 and (EU) 2023/2486.

This report identifies L'Oréal's eligible activities and specifies which of them meet the alignment requirements of the Taxonomy Regulation. To be aligned, an activity must not only be eligible, i.e., it must comply with the Taxonomy definition of the activity, but must also make a substantial contribution to an environmental objective, and must not cause significant harm to the other five environmental objectives under the “Do No Significant Harm” (DNSH) principle. In this context, L'Oréal Groupe has selected only the climate change mitigation objective (CCM) to conduct its eligibility and alignment analysis.

In addition to these environmental criteria, the alignment of an activity also requires compliance with the minimum safeguards defined by the Regulation. L'Oréal demonstrates its compliance with these safeguards through a rigorous governance and risk management framework that is fully integrated and managed within its real estate activities. The Group is based on the recommendations of the Platform on Sustainable Finance's (PSF) report through the following mechanisms:

• its Code of Ethics and Vigilance Plan (to prevent risks of violations of human rights, fundamental freedoms, health, safety and the environment – see sections 3.2.1 and 3.6);
• its anti-corruption policy (see section 3.2.3);
• the integration of taxation into its sustainability statement (see section 3.2.4); and its Legal Charter (compliance with local legislation, particularly competition law – see section 3.5.3).

In accordance with the European Commission communication of 16 June 2023 on minimum safeguards (2023/C 211/01) and with the Sustainable Finance Disclosure Regulation (SFDR), the Group is not exposed to the manufacture or sale of controversial weapons.