Business risks/Human resources and organisational risk 
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| Risk identification | Risk management |
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One of the keys to L’Oréal’s success lies in the talent of its employees to ensure its growth. This is all the more true as L’Oréal is changing within a complex, highly competitive and rapidly changing environment (globalisation, diversity, equity and inclusion challenges, sustainability matters, acceleration of the digital transformation, etc.) that requires specific expertise. Today's job market is characterised by new employee expectations, particularly in terms of hybrid working (i.e., a mix of in-office and remote work), which has now become standard practice. If L’Oréal fails to identify, attract, recruit, retain, promote and develop competent and engaged employees who behave responsibly within diverse teams, the development of its activities and its results could be affected. Moreover, given L’Oréal’s activities, particularly its industrial operations, the risk of occupational injuries or illnesses could become a reality. Psychosocial risks may affect the well-being of Group employees. This could also have an adverse impact on their commitment and, consequently, on the Group’s performance. The Group’s ability to develop its business depends on the projects it puts in place to drive change (new information systems, processes, organisational structures, etc.), which require significant human and financial resources. Insufficient support for change could affect the successful implementation of these projects which would adversely impact the Group's performance. |
The Group is developing a motivating, professional environment with respect for its ethical values, including diversity, equity and inclusion. A long-term approach is taken to the recruitment and development of employees, which also helps ensure the continuity of key functions within the Group, in which training plays a core role throughout an employee’s career. The remuneration policy combines external competitiveness and internal fairness. It recognises both individual and collective performance. The worldwide Share & Care programme meets the essential needs of each of the Group’s employees in terms of benefits, healthcare, parenthood, flexibility and quality of life at work. Initiatives for stress prevention, psychological support and workstation ergonomics have been arranged. In order to meet employees’ expectations in this new hybrid working environment, L’Oréal has developed a balanced Group policy to ensure that opportunities for cooperation, discussion and creativity are always prioritised. Since 2010 and as part of the 2030 Health and Safety Strategy, the Group has set itself ambitious objectives and defined global procedures and standards based on two pillars: risk management and the development of an interdependent Health and Safety culture (see section 4.7.2.2.3). After an initial component of its Simplicity programme centred around the transformation of managerial behaviour was launched in 2018, the Group implemented a second component, Simplicity 2, in 2023, which focuses more on work habits and processes with a view to providing concrete solutions regarding workload, reducing tasks with low added value and improving employee well- being at work. The Pulse survey, an annual employee satisfaction survey, helps identify potential well-being risks and implement appropriate action plans. L'Oréal has set up a Group Transformation Department which manages project prioritisation, oversees the Group's transformation roadmap and rolls out change management policies and support measures. |