2025 Universal Registration Document

4. Sustainability Report

4.12.1.1 Material impacts, risks and opportunities related to responsible marketing and advertising
Material impacts, risks and opportunities related to responsible marketing and advertising
  Description Sub-topics Policy Action plans

IRO: negative impact

Time horizon: short term/medium term

L'Oréal's influence on the world of marketing and advertising carries with it an element of social responsibility. Failing to effectively break down stereotypes in its advertising campaigns could contribute to spreading unrealistic and exclusionary beauty standards. This could give rise to self-esteem and mental health problems among certain populations, particularly if they are exposed to messaging of this kind on social media, and could also breach the right to non-discrimination.

L'Oréal's influence on the world of marketing and advertising carries with it an element of social responsibility. Failing to effectively break down stereotypes in its advertising campaigns could contribute to spreading unrealistic and exclusionary beauty standards. This could give rise to self-esteem and mental health problems among certain populations, particularly if they are exposed to messaging of this kind on social media, and could also breach the right to non-discrimination.

Sub-topics

Responsible marketing practices

L'Oréal's influence on the world of marketing and advertising carries with it an element of social responsibility. Failing to effectively break down stereotypes in its advertising campaigns could contribute to spreading unrealistic and exclusionary beauty standards. This could give rise to self-esteem and mental health problems among certain populations, particularly if they are exposed to messaging of this kind on social media, and could also breach the right to non-discrimination.

Policy

Responsible advertising and marketing communications policy

L'Oréal's influence on the world of marketing and advertising carries with it an element of social responsibility. Failing to effectively break down stereotypes in its advertising campaigns could contribute to spreading unrealistic and exclusionary beauty standards. This could give rise to self-esteem and mental health problems among certain populations, particularly if they are exposed to messaging of this kind on social media, and could also breach the right to non-discrimination.

Action plans

Emphasise responsible content

Respect human rights and diversity, equity and inclusion

Roll out a child-conscious responsible marketing approach

Respect data confidentiality and ethics

Using generative artificial intelligence responsibly

Promote sustainability

IRO: positive impact

Time horizon: medium term/long term

On the other hand, L'Oréal's commitment to responsible marketing practices represents a potential opportunity to make a positive impact in terms of inclusion. The shift towards campaigns that value diversity and represent the whole spectrum of beauty, as well as promoting a positive view of ageing, could contribute to a more inclusive and responsible industry. The Group's commitment to authenticity and to not using artificially generated or retouched images could have a positive impact on consumers' self-esteem and mental health.

4.12.2 Responsible marketing and advertising policy

L'Oréal strives to act as a responsible company by adopting marketing and advertising practices that comply with laws and regulations in all markets. This ambition is reflected in the Group's responsible advertising and marketing policy, anchored by the Group's Code of Ethics, Human Rights Policy (see section 4.9.2), diversity, equity and inclusion policy (see section 4.7.4.1.1) and Influencer and Content Creator Values Charter.

L'Oréal applies the Consolidated ICC Code of Advertising and Marketing Communication Practice and Cosmetics Europe's Guiding Principles on responsible advertising and marketing communication. The Group also shares best practices with its peers and is a member of several initiatives, including the WFA Planet Pledge, the Global DEI Charter for Change, Ad Net Zero and the Unstereotype Alliance.

L'Oréal's responsible advertising and marketing policy is underpinned by collaborative governance. The Digital & Marketing team oversees the development of the policy, in line with best ethical, social and environmental practices. It is rolled out worldwide and applied consistently by the Divisions and brands. Strategy is overseen by members of the Executive Committee, which ensures that the policy evolves appropriately.

4.12.3 Action plans in place

L'Oréal has put several measures in place to make its marketing and advertising ever more responsible:

To emphasise responsible content, L'Oréal:

  • ensures that its advertising is sincere, true, non-misleading and decent, with the minimal use of visual retouching techniques restricted to correct technical issues only;
  • ensures that its claims are based on solid, verifiable data;
  • applies a vigilant policy to the purchase of advertising space to exclude inappropriate environments (hateful or discriminatory content, etc.);
  • undertakes not to denigrate competitors or categories of products;
  • ensures that influencers fully disclose their commercial links with L'Oréal to their audience; and
  • refrains from using content that mimics protected works or people without permission.

To respect human rights and diversity, equity and inclusion, L'Oréal:

  • embeds diversity and inclusion into its advertising, taking into account aspects such as gender, age, socio-economic background, skin colour, body shape, sexual orientation and religion;
  • respects human dignity and avoids presenting degrading stereotypes or disrespecting minority communities or those historically excluded or marginalised;
  • encourages a fair representation of beauty, by minimising recourse to visual retouching techniques; and
  • offers accessible advertising, including subtitles, coded subtitles and transcriptions.

As part of its responsible marketing approach to children, L'Oréal:

  • does not target children under the age of 16, except for hygiene, dermatological and sun protection products;
  • takes care not to suggest that the use of a product would give a child a social or physical advantage over other children; and
  • refrains from partnering with influencers below the legal age to sign a contract, in line with local laws.

To respect data confidentiality and ethics, L'Oréal:

  • ensures transparency on how data will be used, and does not use misleading methods; and
  • retains personal data for a limited period, allowing users the option to amend or delete their personal data at any time.

To use generative artificial intelligence responsibly, L'Oréal:

  • does not use AI-generated human-like models to promote product benefits; and
  • complies with legislation on intellectual property and privacy of AI-related data.

To promote sustainability, L'Oréal:

  • markets refillable and sustainable products in its advertising, while promoting a more environmentally friendly lifestyle;
  • ensures that consumer interest in the environment, or limited knowledge of environmental issues, is not unfairly exploited without full transparency; and
  • measures and seeks to reduce the carbon footprint of its advertising, in line with its decarbonisation ambitions as validated by the SBTi.