4.9 Human rights in the value chain and affected communities (S2/S3)
4.9.1 Background
This section outlines how L'Oréal manages human rights issues by integrating human rights principles into its practices and making efforts to influence its value chain. L'Oréal's value chain analysis enables the Group to identify potential human rights risks at different levels of its supply chain, including Tier 1 suppliers. These analyses are conducted on the basis of best efforts and depending on the availability of data and the complexity of the supply chain.
In the event of human rights issues or incidents, L'Oréal takes a risk-based approach with regard to the supply chain and involves Tier 1 suppliers in the implementation of action plans, as specified in the Vigilance Plan (see section 3.6.4.1). In line with its Human Rights Policy, the Group strives to:
- take human rights issues into account through policies in its conduct as a responsible business;
- identify and assess the main potential and proven negative impacts on workers in the value chain and on affected communities;
- stop, prevent and mitigate breaches of internationally recognised human rights and fundamental freedoms, using a risk-based approach in accordance with the United Nations Guiding Principles on Business and Human Rights (UNGP) and laws such as the French Duty of Care law. In particular, this means working with L'Oréal's stakeholders, especially those directly affected, to resolve situations of risk or harm. L'Oréal also works with peers and other industries to amplify its impact in the short, medium and long term;
- monitor the implementation and results of action plans;
- communicate transparently on how impacts are dealt with; and
- remedy damage through cooperation with other organisations.
The Group is also preparing for the application of the various aspects of the European Corporate Sustainability Due Diligence Directive, aimed at strengthening the protection of human rights and the environment.
