2025 Universal Registration Document

Enhanced Research & Innovation (R&I)

L'Oréal harnesses AI to drive faster, more in-depth R&I processes, from initial discovery to scientific validation:

• discovery and advanced modelling, reduced lead times and costs;
• predictive formulation: development of the first predictive AI model for beauty formulation, based on massive data sets, enabling a reduction in time-to-market;
• scientific value creation: AI helps in the evaluation of products and in the justification of scientific claims, making processes more efficient and data more reliable.

Enhanced marketing and consumer services

• Enhanced content creation: the CreAItech GenAI Beauty Content Lab is a central platform for the rapid, large-scale generation of content for campaigns. It is specified that L'Oréal does not use AI-generated models resembling humans to promote the benefits of its products.
• Strategic and media marketing: AI optimises market strategies, the effectiveness of advertising campaigns and media deployment.
• Consumer experience: "Beauty Genius" is an AI personal assistant that delivers personalised interactions, speeding up response times and improving engagement.
• Optimising visibility: L'Oréal is adapting its supplier referencing strategy to incorporate the impact of generative search engine responses.

Internal AI adoption and talent development

L'Oréal is adopting a human-centred approach to AI, which must enhance employee development. The priority is to support everyone in this transformation and to continue to develop employees’ skills.

• An AI assistant for all: L'Oréal has made available a secure internal Generative AI platform with the aim of making it easier for employees to adopt the technology on a daily basis. This tool helps employees to simplify their tasks and to familiarise themselves with the technology in a controlled environment. Thanks to this platform, employees can have “assistants”: genuine personalised aids that help them save time on repetitive tasks.
• Adoption driven by competence: the rollout of this tool goes hand in hand with an extensive training programme. More than 65,000 employees worldwide have already been trained in AI fundamentals.

By systematically linking the tool to training, L'Oréal ensures that its teams have the technology and skills to use it, thereby developing their transferable skills and making AI an opportunity for everyone.

Sustainability

Sustainability has been an integral part of the Group’s strategy for many years now, as illustrated by its Sharing Beauty With All programme launched in 2013.

At the end of 2020, in response to urgent environmental and social challenges, L'Oréal sought to ramp up its efforts and desire for transformation through its L'Oréal for the Future programme. This programme is based on ambitious objectives in terms of the fight against climate change, the preservation of biodiversity and resources, the use of water and social issues.

In the fight against climate change, in 2024 the Group developed and submitted its new short- and long-term decarbonisation pathway with new targets for 2030 and 2050, in line with the emerging requirements of the Science Based Targets initiative (SBTi) Corporate Net Zero Standard. These targets were validated in April 2024.

In 2025, halfway through the programme launched in 2020, the Group assessed the progress made, drew lessons from its experience, fine-tuned its roadmaps and decided to further its ambition. Several of its initial objectives are now systematically integrated into operating practices and policies. Some of the roadmaps have been adjusted and new targets set on key issues, including the reduction of virgin plastics, nature regeneration and resilience to water stress.

The L'Oréal for the Future programme is now based on four key pillars:

• stewarding the climate transition;
• safeguarding nature;
• driving circularity;
• supporting communities.

All results and KPIs relating to the 15 key objectives of the L'Oréal for the Future programme are detailed in section 1.4.2.

Introducing the Sustainable Innovation Accelerator

Building on its long-standing culture of innovation and in line with its ambitions, L’Oréal has launched its sustainable innovation accelerator, dubbed "L'AcceleratOR". The five-year, €100 million programme, is designed to meet the industry's strategic challenges in terms of sustainable innovation, by identifying solutions and speeding up their implementation in order to achieve the Group's environmental ambitions.

In strategic partnership with the Cambridge Institute for Sustainability Leadership (CISL), our accelerator aims to identify, test and implement key technologies addressing our critical challenges and needs. The first 13 start-ups and innovative companies selected to join L'AcceleratOR were announced in January 2026.

A financial investment for impact: L'Oréal Funds

Alongside the objectives of its sustainability programme, the Group has set up specific funds to finance initiatives promoting nature, the circular economy and social inclusion. The amounts committed up to the end of 2025 are as outlined below.

• Nature: by 2030, the L’Oréal Fund for Nature Regeneration will have invested €50 million to help restore 1 million hectares of degraded ecosystems, capture 15 to 20 million tonnes of CO₂ and create hundreds of jobs⁽¹⁾. At 31 December 2025, investments totalled €25.3 million, out of a total target of €50 million.
• Circular economy: through the Circular Innovation Fund, the Group has committed to investing €50 million in circular economy projects by 2030. In 2025, the fund's invested capital totalled €21.1 million.
• Support for Women: the L'Oréal Fund for Women aims to allocate €80 million to support vulnerable women by 2026. This objective was met in 2025, with €80 million allocated.
• Climate change: the L'Oréal Climate Emergency Fund, endowed with €15 million to develop communities’ resilience to climate-related disasters by 2026, also met its target, with €15 million allocated in 2025.