2025 Universal Registration Document

1. Presentation of the Group – Integrated Report

Sustainable innovation powered by the Green Sciences programme

The Green Sciences programme continues to guide L'Oréal's strategy towards more sustainable, high-performance beauty, marking a year rich in innovation and strategic advances. Green Sciences cover all the scientific fields on which R&I relies to achieve L'Oréal's objectives in terms of the fight against climate change, the preservation of natural resources and biodiversity.

As part of its Net Zero pathway and the L'Oréal for the Future programme, L'Oréal is seeking to reduce the carbon impact of its raw materials. The Group is refining its understanding of the carbon footprint of its products, clarifying the sources and identifying the key levers to be pulled at every stage, from procurement through to production and processing. Under the Green Sciences programme, the Group is actively reducing the fossil-based inputs in its raw materials portfolio and reducing the carbon impact of its ingredient production processes. L'Oréal has joined the Carbon to Value initiative in the United States. 

A milestone was reached with the in-depth study of the biobased raw materials portfolio through the lens of agricultural production and the projection of the Group's evolving resource requirements through to 2030. This analysis enables us to define an appropriate strategy to ensure the resilience of supplies of existing or future biobased raw materials, taking into account the impact of climate change. Key partnerships have been forged in this regard, for example with Genesis to establish the health of the soils of major oil and sugar crops, or with Interstellar Lab to develop high added-value ingredients using controlled-environment farming. 

The impetus of the Green Sciences programme also drives innovation in future formulas. A challenge was launched in collaboration with the BioInnovation Institute (BII), a key player in supporting bioscience, to identify disruptive technologies aimed at replacing certain functional ingredients.

Lastly, the Group's detailed water footprint was established with Quantis using an innovative methodology. The approach makes it possible to study the dependence of the value chain on access to water, as well as the impact on the quantity and quality of the historically treated water volume. L'Oréal has therefore been able to quantify the dependence of the upstream value chain on rainwater that is absorbed and evapotranspired by plants (green water) and the downstream value chain on water taken from rivers or aquifers (blue water). This last point has enabled the Group to reformulate its L'Oréal for the Future target for water, thereby reinforcing our water stewardship goals.

Inclusivity at each stage of L'Oréal's innovation model

Inclusivity is a strategic pillar underpinning in every stage of L’Oréal’s innovation efforts, and celebrates the diversity of individuals and their beauty needs. This vision draws on an in-depth understanding of demographic trends and global market dynamics. By 2040, forecasts indicate that two-thirds of the world's population will have melanin-rich skin(1), while 43% of the world's population will have hair ranging from wavy to very curly, hair types that require specific care and cutting-edge expertise(2). The men's personal care market is booming(3), confirming the growing importance of male beauty. These trends are particularly noticeable in emerging markets such as Latin America (especially Brazil) and India.

Study of the biology of skin and hair diversity

L'Oréal's conducts critical scientific research into the biology of skin and hair diversity. This involves analysing reconstructed human skin using the Skin Technology by L'Oréal platform to decipher variations in fibroblasts and collagen, as well as the in-depth study of capillary mechanisms and types. This type of research is essential for developing solutions tailored to specific dermatological and hair care needs.

Knowledge of consumers

To optimise its understanding of consumer expectations, L'Oréal conducted an international study on the typology, diversity and representativeness of individuals around the world. The study involved 15,000 people, covering various genders, ages, skin tones, hair types and origins. These data enhance the Group's expertise, particularly as regards melanin-rich skin and textured hair, and help guide the development of digital labelling systems for foundation (light, shade, saturation) for specific and inclusive product ranges, such as the L'Oréal Paris True Match Super-Blendable Make-Up range.

Innovation driving advanced and inclusive beauty

L'Oréal adapts its products to changing demographics and specific needs (melanin-rich skin, textured hair, male beauty, Generation Z, etc.). L'Oréal Research & Innovation is at the forefront of this development, with products such as Anthelios UV Air sun protection and Dream Length Sleek Elseve smoothing serum. The patented ingredient Melasyl, resulting from nearly 20 years of research and named one of TIME’s “Best Inventions of 2025”, intercepts melanin precursors to reduce pigmentation spots and even out skin tone.

L'Oréal's aim is to offer inclusive, bespoke beauty, fuelled by cutting-edge science and an in-depth understanding of the different needs of each individual, in order to meet the challenges shaping the beauty of the future.