2025 Universal Registration Document

1. Presentation of the Group – Integrated Report

1.3.2 Value chain CSRD (1)

Value chain
Research, Innovation and Technology
  • 725 patents filed in 2025
  • €1,380m in 2025 expenditure (3% of sales)
  • 22 cosmetic research centres, 13 assessment centres
  • More than 4,300 employees in the Research team
Design
  • In 1989, end of animal testing for finished products
  • Development of predictive method with the production of reconstructed skin
Sourcing

1,499 social audits were conducted in 2025

Factories and logistics hubs
  • 37 factories worldwide
  • In 2025, 100% of the Group’s plants were ISO 9001 certified and 100% were ISO 22716 certified (see section 1.3.5.)
Digitaland marketing
  • 40 international brands
  • 79.2% of our media investments are digital
  • 4th largest advertiser worldwide, across all industries(2)
  • Responsible communication commitment: Member of the Unstereotype Alliance
  • L'Oréal's Influencer Value Charter
  • All the Group’s brands committed to diversity, equity and inclusion
Distribution channels
  • More than 7 billion products distributed
  • 160 distribution centres
Use and end-of-life of products

The 3 “R”s approach to the eco-design of packaging: Reduce packaging intensity; Replace with materials with a better environmental footprint; Recycle by creating packaging that will contribute to the circular economy

Performance of the L'Oréal for the Future programme in 2025 (See section 1.4.2)

67% of ingredients in formulas are sourced from nature(3) or recycled materials

100% renewable energy at operated sites and stores(4)

44% of all materials used in product packaging either from recycled or biobased sources

56% recycled or reused water for industrial purposes in factories

95% of biobased materials in formulas and packaging are sustainably sourced

Help 109,674 people from disadvantaged communities gain access to employment(5)

37% reduction of the use of virgin plastic for product packaging in absolute terms, compared to 2019

Creating value for our stakeholders
Employees
  • Nearly 45,000 employees are L’Oréal shareholders
  • 25,000 job opportunities created for young people under 30 each year
Scientific community and start-ups
  • €1.3bn invested in Research & Innovation
  • More than 30 minority investments made by BOLD over the beauty value chain including brands, tech, platforms and biotech
Suppliers
  • €50 million investedin the Solstice debt fund, dco-created with Chenavari to support the decarbonisation of industrial suppliers
  • 25% of strategic suppliers have signed a living wage pledge with a time-bound action plan
Customers and distributors

Partnerships with customers and distributors as part of the Green Joint Business Plans to encourage more sustainable consumption habits, for example using refillable productsand the decarbonisation of product transportation

Consumers
  • Over 7 billion products distributed in more than 150 countries
  • Member of the EcoBeautyScore consortium which creates a common display system to provide consumers with a clear, transparent and comparable assessment of cosmetic products’ environmental impact
Consumers and planet
  • CDP AAA rating for the 10th consecutive year for initiatives to combat climate change, protect forests and ensure sustainable water management
  • More than 5 million people benefiting from the Group’s brands’ social commitment programmes since 2020
Public authorities

€3.3bn taxes and duties paid to governments and local authorities in 2025

Shareholders and investors
  • 4.8% annual shareholder return over the past 5 years
  • A dividend that has never declined in over 60 years
  • L’Oréal is part of the CAC 40 Index

(see section 7.5)

SUPPORTED BY THE FUNCTIONAL DEPARTMENTS providing the essence of the Group’s strength

FINANCE AND LEGAL

Financial policy, investments, management, financial communication, M&A, consolidation, legal and compliance

HUMAN RELATIONS

Recruitment, development and social innovation (including social dialogue)

CORPORATE AFFAIRS AND ENGAGEMENT

Corporate communications, public affairs and coordination of brand communications

CORPORATE SOCIAL RESPONSIBILITY

Sustainable development with the L’Oréal for the Future programme, sponsorship and the L’Oréal Corporate Foundation

ETHICS, RISK AND INTERNAL CONTROL

Code of Ethics available in 30 languages, and as an audiobook in French and English Internal control