The Group’s US subsidiaries are currently being sued in the United States in product liability cases related to the alleged presence of asbestos particles in certain cosmetic products containing talc. To date, none of the cases involving the Group’s subsidiaries have gone to trial. Some complaints have also been dismissed. As of 31 December 2025, approximately 620 proceedings are pending. L’Oréal strongly contests the claims made in these actions.
Group entities are currently being sued in product liability cases related to the alleged presence of ingredients in hair relaxers that have caused various health problems. As of 31 December 2025, the Group’s U.S. companies were sued in approximately 10,670 federal proceedings consolidated into a multi-district (“MDL”) proceeding pending before the U.S. District Court for the Northern District of Illinois, and in approximately 1,140 individual actions (sometimes consolidated) before various state courts. The discovery phase is ongoing. Other actions are also pending in connection with the same products, including a class action, for financial damages. The Group strongly contests the claims brought in these actions.
At the present time, no other exceptional events or disputes are highly likely to have a material impact on the earnings, financial situation, assets, or operations of the Company or the L’Oréal Group.
The Group strictly complies with regulations and laws relating to environmental protection, and does not expect current regulations to have any significant impact on the Group’s operations, financial position, earnings or assets.
For many years, L’Oréal has shown a strong commitment to environmental, social and societal responsibility. L’Oréal placed sustainability at the heart of its strategy, notably the launch in 2013 of the Sharing Beauty With All programme with 2020 targets focused on sustainable production, sustainable innovation, sustainable consumption and shared growth.
In June 2020, L’Oréal initiated the second phase of its ambition to sustainable development, under the umbrella of the L’Oréal for the Future programme, with a new set of particularly ambitious and concrete targets for 2030, in order to cover all the impacts associated with its value chain: its production and distribution sites as well as its supply chains and the impacts associated with the use of products by consumers.
In 2025, halfway through this program launched in 2020, the Group assessed the progress made, learned from its experiences, refined its roadmaps and objectives for 2030. The L'Oréal for the Future program is described in the sustainability report.
These commitments made by the Group do not call into question the value of the assets or the useful lives of non-financial assets, in particular:
Furthermore, as mentioned in note 7.3, the scenarios considered in order to determine the potential impacts of climate change on the Group's assets and in particular on the assets of the Group's Cash Generating Units, did not highlight any significant impact likely to generate a risk of depreciation of these assets.
The Group’s L’Oréal for the Future programme rests on its financing, short- and long-term investment and compensation strategies.
The credit lines indexed to the Group's sustainable development performance incorporate a borrowing cost adjustment mechanism.
The L’Oréal Group has a syndicated loan from 20 banks of €11 billion, which had not been used at the end of December 2025, of which €7 billion incorporate a mechanism whereby the margin is adjusted in line with the Group’s performance with regard to ESG KPIs: climate, biodiversity and resources.
The Group issued in 2022 a €3 billion bond, one tranche of which in an amount of €1,250 million is sustainability-linked (note 9.1).
