Water-stressed markets are defined as L'Oréal country subsidiaries with high projected water resource risks up to 2030. This assessment is based on three categories of risk (physical, regulatory and reputational), classified according to the WRF (Water Risk Filter) scores of the World Wide Fund for Nature (WWF), themselves based on data from the Aqueduct Water Risk Atlas of the World Resources Institute.
The WRF indicators are assessed on a scale of 1 to 5. WWF considers scores above 3.4 to be high risk, but recommends that a cautious approach be taken when carrying out assessments, also paying attention to so-called medium risk when the score is 3 or above. L'Oréal has adopted a prudent approach that is relevant to its sector, taking into account the greater materiality of physical risk. A market is therefore considered to be under water stress if it meets at least one of the following criteria: physical risk (BPH) ≥ 3; regulatory risk (BRG) > 3.4: Reputational risk (BRP) > 3.4.
The metric associated with the land regeneration objective is calculated as follows:
To assess the Group’s agricultural footprint, the volume of ingredients purchased is broken down by country of origin and conversion factors are applied. L’Oréal takes into account the entire footprint of the crop, even if only a portion of it is used.
The published performance is based on data for 2024, due to the time required to collect and consolidate all data.
The calculations for packaging are based on the packaging and production item specification systems, while the calculations for raw materials are based on the formula specification system. The formulas are broken down into raw materials.
The Human Relations Department is responsible for indicators and metrics relating to social topics. Most of the data are collected using the “Country reporting” intranet, available in each country where a L'Oréal “subsidiary” is located. This system is input by HR systems (SAP SuccessFactors for employees, All Players for strategic roles and Rembox for monitoring remuneration metrics).
Employee numbers are published in a month-end workforce at 31 December. The scope of this section extends to all L'Oréal employees, including non-active employees (in particular those on long-term sick leave, notice of departure, early retirement, extended unpaid leave), as well as interns and apprentices, who are considered according to their status under local law.
Employee turnover is calculated as the ratio between the number of permanent employees leaving the company during the year (resignations, retirements, mutual agreements, isolated redundancies or redundancy plans, deaths) and the average number of employees over the year (the number of employees at the beginning of the year plus the number at the end of the year), divided by two.
L'Oréal publishes the metrics concerned for member countries of the European Economic Area in accordance with the transitional provisions.
As an indication, strategic positions are mainly those held by the participants in the Business Review meeting, namely: (i) the positions of members of the Executive Committee including the position of Chief Executive Officer, (ii) the positions of Directors with a direct management link to the Chief Executive Officer, (iii) the positions of Region General Managers, (iv) the positions of Region Division General Managers, (v) the positions of country or cluster General Managers, (vi) the positions of International Brand Directors, (vii) the positions of members of the Management Committees of Divisions, Regions, Corporate Research & Innovation and Functional Departments with a direct management link to the relevant member of the Executive Committee, (viii) the positions of Division General Managers for the United States, China and France markets, (ix) the positions of IT Directors who are members of Region Management Committees, (x) the positions of other members of the Management Committee, of a member of the Executive Committee with the approval of the Chief Executive Officer.
Disability data are based on individual reporting and therefore depend on local legislation and cultures. Some countries do not yet report people with disabilities, as the cultural environment may prevent people from declaring their disability.
Data on training hours is captured in the SAP SuccessFactors LMS (Learning Management System). When calculating the number of hours of training per employee, employees (CSRD scope) present on 31 December of the year are taken into account.
The Operations Department is responsible for the EHS metrics for Group sites. These are reported monthly by each entity in the GRAAL consolidated reporting tool for safety data, which is available in each country where a L'Oréal subsidiary operates. Health and safety reporting includes manufacturing facilities, internal distribution centres, research centres, administrative sites with more than 50 employees, and all stores and sales teams.
