This is a translation into English of one of the statutory auditors’ report on the ESG key performance indicators presented in section 4.16 of the Universal registration Document for the year ended December 31, 2025 of the Company issued in French and it is provided solely for the convenience of English speaking users.
This report should be read in conjunction with, and construed in accordance with, French law, the professional guidance issued by the French Institute of statutory auditors (Compagnie Nationale des Commissaires aux Comptes “CNCC”) applicable to such engagement and International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board.
To the President of the Board of L’Oréal,
In our capacity as Statutory Auditor of L’Oréal (hereinafter the “Company”), appointed as External Verifier under the Bond Prospectus entered into between the Company and the Bondholders, relating to the issue, on 29 March 2022, of Sustainability‑Linked Bonds in an aggregate principal amount of €1,250,000,000, bearing interest at a rate of 0.875% per annum and maturing on 29 June 2026 (hereinafter the “SLB”), we have undertaken a limited assurance engagement on the ESG key performance indicators, together with the related explanatory notes, for the year ended December 31, 2025 (hereinafter the “ESG KPIs”), presented in Section 4.16 of the Universal registration document (hereinafter the “URD”) and prepared in accordance with the Sustainability‑Linked Financing Framework.
A summary of these ESG KPIs, extracted from Section 4.16 of the URD, is set out below:
| Performance objectives | At 31/12/2025 | Statuts |
|---|---|---|
| KPI 1a: All L'Oréal operated sites will achieve 100% renewable energy (formerly known as “carbon neutral”) by 31 December 2025 (1) | KPI 1a: All L'Oréal operated sites will achieve 100% renewable energy (formerly known as “carbon neutral”) by 31 December 2025 (1)At 31/12/2025 96% |
KPI 1a: All L'Oréal operated sites will achieve 100% renewable energy (formerly known as “carbon neutral”) by 31 December 2025 (1)Statuts Not achieved |
| KPI 1b: Greenhouse gas emissions (Scopes 1, 2 & 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year (2) | KPI 1b: Greenhouse gas emissions (Scopes 1, 2 & 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year (2)At 31/12/2025 -5% |
KPI 1b: Greenhouse gas emissions (Scopes 1, 2 & 3) on a “cradle-to-shelf” scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year (2)Statuts Not achieved |
| KPI 2: By 2025, 50% of the Group's plastic packaging will be recycled or biobased (3) | KPI 2: By 2025, 50% of the Group's plastic packaging will be recycled or biobased (3)At 31/12/2025 50% |
KPI 2: By 2025, 50% of the Group's plastic packaging will be recycled or biobased (3)Statuts Achieved |
Our assurance does not extend to information in respect of earlier periods or to any other information not included in the ESG KPIs.
Based on the procedures we have performed, as described in the section “Summary of the work we performed as the basis for our assurance conclusion”, and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Company’s ESG KPIs, including in particular the statement as to whether or not the Sustainability Performance Targets have been achieved, as presented in the “Status” column of the table in Section 4.16 of the URD, for the year ended December 31, 2025, have not been prepared, in all material respects, in accordance with the Sustainability‑Linked Financing Framework.
We do not express an assurance conclusion on information in respect of earlier periods not covered in the ESG KPIs or on any other information not included in the ESG KPIs.
The absence of a commonly used generally accepted reporting framework or a significant body of established practice on which to draw to evaluate and measure the ESG KPIs allows for different, but acceptable, measurement techniques that can affect comparability between entities and over time.
Consequently, the ESG KPIs need to be read and understood taking into account the Sustainability‑Linked Financing Framework used by the Company to prepare the ESG KPIs.
