2025 Universal Registration Document

b) Short-term investment

The Group's available cash is mainly invested in SRI SICAV money-market funds (63% of all short-term investment in 2025), term accounts (30% of all short-term investment in 2025 of which 50% in CSR STI) and in paid accounts (7% of investments in 2025).

c) Long-term investment

The Group recorded a total of €154 million in non-current financial assets related to sustainable development activities, measured at fair value through equity (note 9.3).

• in 2025, L'Oréal launched its sustainable innovation accelerator with €100 million over five years, which aims to address the strategic challenges of the sector in terms of sustainable innovation by identifying solutions and accelerating their implementation towards achieving the ambitions of the L'Oréal for the Future Program;
• in 2024, joint creation with Chenavari of a Solstice fund of €50 million to support the decarbonisation effort of industrial suppliers and in particular within the framework of the Group's commitments in terms of scope 3 emissions (including €11 million at end-2025)
• at the end of 2021, investment in Circular Innovation Fund amounting to €50 million. L'Oréal is one of the main contributors to this fund, that aims at financing innovative companies in the field of recycling, plastic waste management or even materials from the bioeconomy;
• in 2020, the creation of a fund for Nature Regeneration to financially support projects to restore natural marine, forest and agricultural ecosystems. This dedicated fund has an endowment of €27.6 million;

• investment in start-ups (€66 million in total), including:

  • the green chemistry start-up Carbios, which developed enzymatic processes for plastic biodegradation and biorecycling,
  • the French biotech Microphyt which developped a process with a low carbon impact to produce microalgae,
  • the American biotech company Debut, which specializes in the discovery, formulation and manufacturing of innovative natural and complex ingredients and products,
  • the Chinese biotech ShineHigh (specializing in cutting-edge supra-molecular chemistry),
  • Abolis, a French biotech, offering an integrated and versatile synthetic biology platform,
  • and in particular in 2025, Veminsyn, a Chinese biotech company specializing in the discovery, development, and manufacturing of innovative bioactive compounds.

d) Remuneration

The variable portion of the Chief Executive Officer’s current remuneration incorporates quantitative and qualitative nonfinancial objectives, including objectives associated with the L’Oréal for the Future programme. Since 2016, non‑financial objectives in line with the Group’s goals for sustainability have been included in the variable remuneration of the top management, including international brand managers and country managers.

For the conditional grant of free shares, plans since 2022 stipulate the fulfilment of non-financial performance criteria, of which:

• the fulfilment of environmental and social responsibility commitments made by the Group as part of the L’Oréal for the Future programme;
• gender balance within strategic positions including the Executive Committee.

Note 14 Off-balance sheet commitments

14.1 Lease commitments

These amounted to €127.3 million at 31 December 2025 compared with €94.5 million at 31 December 2024 and €91.0 million at 31 December 2023, of which:

• €47.5 million was due within one year at 31 December 2025, compared with €39.1 million at 31 December 2024 and €39.4 million at 31 December 2023;
• €74.0 million was due within one to five years at 31 December 2025, compared with €48.4 million at 31 December 2024 and €47.0 million at 31 December 2023;
• €5.8 million was due in over five years at 31 December 2025, compared with €7.0 million at 31 December 2024 and €4.6 million at 31 December 2023.