With their complementary expertise and freedom of judgement, the Directors collectively ensure that the measures adopted contribute to the implementation of L'Oréal's strategy.
The topics falling within the remit of the Board of Directors are becoming broader and more complex, particularly in relation to ESG, cybersecurity and artificial intelligence. Consequently, it is essential that L'Oréal's Directors are competent and committed and, on the basis of the technical support provided by L'Oréal experts, are able to make an active contribution to defining the Group's strategic vision.
In ESG matters specifically, three priority skills areas have been identified: experience in developing the CSR strategy of an international group, experience of governance and business ethics and societal commitment, including philanthropy.
The breadth and wealth of Directors' experience should enable the Board to address ESG issues from a collective, overarching perspective and consider them in greater depth by working with internal and external experts (e.g., Statutory Auditors certifying the sustainability information, specialist training consultants, etc.).
The intrinsic skillsets of each Director are identified by the Nominations and Governance Committee based on their profile, experience and career, to ensure that the Board has a range of complementary skills and can operate as a collegial body based on collective thinking and decision-making. These skills are supplemented by a dedicated learning plan to ensure that L'Oréal's specific characteristics are fully understood and developed through high-level presentations at Board and Committee meetings.
The above table gives an overview of the skills matrix for Directors. The Board has a broad range of experience across various business sectors and expertise in various fields, which means it is able to meet the strategic and performance-related challenges faced by L'Oréal. Moreover, regardless of their individual nationalities, some two-thirds of the Directors have spent portions of their careers working abroad.
The skills matrix is monitored and reviewed annually by the Nominations and Governance Committee and by the Board of Directors. The aim is to ensure that the skills of Directors are commensurate with L'Oréal's current and future challenges, to determine the profiles to be identified in connection with changes to the composition of the Board and to ensure effective succession planning for Directors. This allows the Committee to draw up (i) a short-to-medium- and (ii) long-term vision (12 years maximum, in accordance with the AFEP-MEDEF Code's independence requirements), in order to target skills in line with the Company's strategic priorities and that complement or strengthen the skills already present on the Board. In this way, the Board is provided with the key skills identified in the matrix on an ongoing basis. The Directors also assess this themselves as part of the annual assessment of the Board.
As soon as they are appointed, new Directors are offered a tailored induction programme. This two-year programme aims to provide an in-depth understanding of L’Oréal and the Board of Directors’ operations, thereby facilitating a swift and efficient start to their duties. Similar tailored support can also be provided when a Director joins a Committee.
The induction programme includes a comprehensive welcome pack, and privileged interactions and discussions with the members of the Board and the Executive Committee, and the possibility of site visits. Specific meetings are also organised for new Directors to learn more about the Group's culture, history, areas of business and governance, as well as the operating procedures of the Board of Directors. They may also be put in contact with the Group’s key experts to prepare them for potentially joining a Board Committee.
Directors' training carries on after they join the Board as part of a continuous training process. Additionally, each Director can ask the Chairman of the Board to provide them with any documents and information they feel they need to enable them to effectively carry out their duties and make fully informed decisions. Board meeting agendas regularly include an item devoted to strategic presentations on specific topics given by the Group's key executives, so that the Directors can gain greater insight into the Group's challenges. These presentations enable the Board's members to deepen their knowledge about L'Oréal specifically (manufacturing, R&I and new technology) and the beauty sector in general, and to increase their expertise on particular technical topics (such as ESG and regulatory requirements). The meetings attended by the Group's key executives are also an opportunity for them to contribute to the Board's discussions. Each Director can also ask for any training they feel they need to carry out their duties.
Directors representing employees are provided with additional training tailored to their role on the Board.
