2024 universal registration document

Additional procedures: L’Oréal also uses analyses and ratings provided by EcoVadis, an analytical company, to evaluate the policies implemented by the Suppliers in relation to the issues covered by the Plan, among others. This evaluation is an indicative guide that can be added to the audits described above. By participating in the EcoVadis assessment, L’Oréal compares its environmental and social policy with the expertise and the recommendations of external auditors qualified in the analysis of multi-sector risks. This is a useful rating for the continuous improvement of L’Oréal’s programme, it also contributes to the transparency of industry practices. This assessment is used to select suppliers by taking their environmental and social performance into consideration. L’Oréal is a co-founder of the Responsible Beauty Initiative (RBI), a sector initiative created in 2017 with EcoVadis. It brings together eight major players in the cosmetics industry for the sustainable transformation of the entire beauty supply chain.

(ii) Self-assessment system

Human Rights and Fundamental Freedoms: an annual ethics reporting system is used to monitor the implementation of the Applicable Rules in the Subsidiaries, particularly with regard to Human Rights and Fundamental Freedoms.

Environment, health and safety in the workplace: the Management Committees of L’Oréal Sites have tools for the self-assessment of their practices based on the audit standards provided to them. They can then produce an improvement plan, if required. These self-assessments are input data in the EHS risk audits.

To steer performance:

• every year, each Subsidiary site defines and revises its safety and environmental roadmaps to achieve the targets set by the Group and tracks its EHS indicators monthly;
• at Group level, the indicators are consolidated monthly by region and as a whole for the Group’s results; and
• a Greenhouse Gas Assessment is prepared annually (in accordance with the GHG Protocol).

3.5.6 Whistleblowing and reporting system

Speak Up, L’Oréal’s whistleblowing system, has been in place since 2008. It gives employees and stakeholders access to a secure website that they can use to raise any concerns they may have, including serious infringements of Human Rights and Fundamental Freedoms, the health and safety of people at work, and respect for the environment, with the Chief Ethics, Risk and Compliance Officer in a secure, effective manner that provides all the guarantees of confidentiality necessary for the reporting of potential breaches. Any allegations expressed in good faith are examined in detail and adequate corrective measures are taken, if applicable. Employees have several other methods of raising their concerns (line management, dedicated local hotlines, etc.). The whistleblowing line was opened to employees in 2008, and then to stakeholders in 2018. Information campaigns about the whistleblowing system are organised on a regular basis.

3.5.7 Update on effective implementation of the Plan

This section provides the 2024 results of the application of the Plan for Subsidiaries and Suppliers.

3.5.7.1 General results of whistleblowing and reporting systems

In 2024, 780 alerts were raised through the whistleblowing system, including:

• 38 on sexual harassment, 23 of which were proven, in whole or in part, and which resulted in ten departures from the Group;
• 87 on bullying, 12 of which were proven, in whole or in part, and which resulted in two departures from the Group;
• 57 on discrimination, 11 of which were proven, in whole or in part, and which resulted in seven departures from the Group;
• 40 on health and safety, 7 of which were proven, in whole or in part, and which did not result in any departures from the Group; and
• 3 on the environment, neither of which were proven, in whole or in part.