2025 Universal Registration Document

4. Sustainability Report

As L'Oréal's beauty business activities have not yet been included in the EU Taxonomy list, they are considered ineligible within the meaning of these regulations. Accordingly, L'Oréal only reports on its secondary activities, mainly related to real estate.

In accordance with the introduction of a materiality threshold of 10% under the new Regulation (EU) 2026/73 of 8 January 2026, L'Oréal is now authorised to omit the assessment of the eligibility and alignment of taxonomy-related economic activities whose cumulative value falls below 10% of the denominator of the relevant indicator (Turnover [Net sales], Capital expenditure (CapEx), Operating expenditure (OpEx)). Consequently, only two types of L'Oréal property investments were assessed for the purposes of taxonomy reporting at 31 December 2025:

  • fixed rental payments capitalised in accordance with IFRS 16, relating to building leases;
  • acquisitions of fully-owned buildings.

These investments are grouped under activity 7.7 “Acquisition and ownership of buildings”, which is the only taxonomy-related activity published by L’Oréal.

Under the Regulation, non-financial companies must publish three key performance indicators (KPIs), which are presented in the two new regulatory tables below. Based on financial aggregates (Turnover, CapEx, OpEx), these KPIs are defined as follows:

  • KPI for eligible activities: this indicator represents the proportion of the Company’s Turnover, CapEx or OpEx related to economic activities eligible for the Taxonomy, whether aligned or not.
  • KPI for aligned activities: this indicator represents the proportion of the Company’s Turnover, CapEx or OpEx related to economic activities aligned with the Taxonomy. This implies that the activity meets the criteria of making a substantial contribution to an environmental objective, does not significantly harm other objectives (DNSH), and complies with the minimum standards.
  • KPI for non-material activities: this new indicator makes it possible to report the proportion of activities considered insignificant for the respective KPIs and for which assessment of eligibility and alignment with the Taxonomy is not required.

It should be emphasised that the key performance indicators set out in the European Taxonomy only capture L'Oréal's sustainability strategy to a very limited extent. These KPIs focus on specific assets and do not reflect the extent of the Group's climate commitment, nor the breadth of its actions to preserve water resources, adopt a circular economy model, prevent pollution and protect biodiversity across its entire value chain.

4.2.5.5.2 Regulatory templates and data analysis
TEMPLATE 1: PROPORTION OF TURNOVER, CAPEX AND OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ELIGIBLE OR TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
TEMPLATE 1: PROPORTION OF TURNOVER, CAPEX AND OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ELIGIBLE OR TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
  Breakdown by environmental objectives of Taxonomy-aligned activities
KPI 2025 Total in millions of euros Proportion of Taxonomy eligible activities Taxonomy-aligned activities in millions of euros Proportion of Taxonomy aligned activities Climate change adaptation Water Circular economy Pollution Biodiversity Proportion of enabling Proportion of enabling activities Proportion of transitional activities Not assessed activities considered as non-material Taxonomy aligned activities in previous financial year (2024) in millions of euros 

Proportion of Taxonomy aligned activities in previous financial year (2024)
Sales(1) 44,052 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0 0%
CapEx 2,583 16% 5 0% 0% 0% 0% 0% 0% 0% 0% 0% 2% 38 2%
OpEx 1,632 0% 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0 0%