Climate change risks and opportunities
L'Oréal used two opposing scenarios to measure the risks and opportunities related to climate change that could impact the Group's activities in the medium and long term. The methodology used is in line with the practices of the TCFD (Task force on climate Financial Disclosure) and the TNFD (Taskforce on Nature-related Financial Disclosure). The scenarios used are:
- the IPCC SSP1-2.6 scenario (formerly RCP 2.6) called Climate Nature Equilibrium. This scenario foresees strong international cooperation to limit global warming to 1.5°C, inline with the Paris Agreement, by focusing on sustainable development and effective climate policies;
- the IPCC SSP5-8.5 scenario (formerly RCP 8.5) called Disorderly and Degraded based on warming above 4°C, with strong population growth, limited environmentalregulations and minimal efforts to combat climate change. The integration of these scenarios into the business plans of the CGUs at risk did not reveal any significant impact likely to generate a risk of depreciation of assets.
The net carrying amount of goodwill and brands with indefinite useful life breaks down as follows for the largest Cash Generating Units:
This diagram presents a grouped bar chart illustrating the net book value of goodwill and indefinite-lived brands for the most significant Cash Generating Units (CGUs), over three financial years.
Retail Skincare (Luxe):
2025: approximately €2,450m
2024: approximately €2,550m
2023: approximately €2,500m
Maybelline & Mass Market Make-up:
2025: approximately €2,200m
2024: approximately €2,250m
2023: approximately €2,150m
Perfumes:
2025: approximately €2,050m
2024: approximately €2,100m
2023: approximately €2,050m
L'Oréal Paris & Luxury Make-up:
2025: approximately €1,500m
2024: approximately €1,000m
2023: approximately €1,000m
Color Wow:
2025: approximately €1,000m
SkinCeuticals / Skinbetter Science:
2025: approximately €950m
2024: approximately €975m
2023: approximately €950m
Garnier & Access Make-up:
2025: approximately €950m
2024: approximately €975m
2023: approximately €975m
Makeup (Luxe):
2025: approximately €950m
2024: approximately €975m
2023: approximately €950m
Lancôme:
2025: approximately €950m
2024: approximately €960m
2023: approximately €950m
CeraVe:
2025: approximately €950m
2024: approximately €960m
2023: approximately €950m
Redken/PureOlogy:
2025: approximately €950m
2024: approximately €960m
2023: approximately €950m
Matrix:
2025: approximately €950m
2024: approximately €960m
2023: approximately €950m
Skincare (Luxe):
2025: approximately €870m
2024: approximately €880m
2023: approximately €870m
Medik8:
2025: approximately €820m
YSL Beauté:
2025: approximately €800m
2024: approximately €800m
2023: approximately €800m
Note 8 Investments accounted for under the equity method
| € millions | 31.12.2025 | 31.12.2024 | 31.12.2023 |
|---|---|---|---|
| INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD | INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD 31.12.2025
|
INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD 31.12.2024
|
INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD 31.12.2023
|
| SkinSpirit(1) | SkinSpirit (1)31.12.2025 263.6 |
SkinSpirit (1)31.12.2024 — |
SkinSpirit (1)31.12.2023 — |
| Amouage(2) | Amouage (2)31.12.2025 93.2 |
Amouage (2)31.12.2024 102.0 |
Amouage (2)31.12.2023 — |
| Other | Other 31.12.2025 19.1 |
Other 31.12.2024 24.4 |
Other 31.12.2023 27.0 |
| TOTAL | TOTAL 31.12.2025 376.0 |
TOTAL 31.12.2024 126.4 |
TOTAL 31.12.2023 27.0 |