L'Oréal

L'Oreal reports a two-tier governance structure supporting its sustainability approach. In 2024 the Board of Directors comprised 15 non-executive members, 1 executive member and 2 employee representatives, with 43% women and 57% men, and 50% independent members (calculated excluding directors representing employees under the AFEP-MEDEF Code and French Commercial Code). The Board has incorporated environmental, social and governance skills into its diversity policy, with 13 members holding experience in this area in 2024. Sustainability oversight is exercised through four specialised Board Committees: the Strategy and Sustainability Committee, the Audit Committee (which has overseen sustainability issues and sustainability risk management since 2018), the Human Resources and Remuneration Committee, and the Nominations and Governance Committee. The Board reviews its skills matrix annually as part of its self-assessment, taking into account sustainability issues and the diversity policy. Reference: 4.1.1.

L'Oreal reports how sustainability matters are addressed by its governance bodies. The Audit Committee's remit was strengthened following CSRD implementation to include reviewing the double materiality assessment and monitoring the progress of the Sustainability Report at each of its 2024 meetings. The Strategy and Sustainability Committee reviews strategic orientations in light of sustainability, monitoring progress on commitments such as decarbonisation and the L'Oreal for the Future programme through regular presentations by the Chief Corporate Responsibility Officer. The Board is regularly informed of expectations of investors, non-financial rating agencies and employees, and receives information on diversity, equity and inclusion. A table sets out the topics examined by the Board and its Committees in 2024 across all material matters (E1 to E5, S1 to S4, G1), including the decarbonisation strategy, TCFD and TNFD study results, the Human Rights Policy, the Vigilance Plan and the Ethics Policy. Reference: 4.1.1.

L'Oreal reports that sustainability-related performance is integrated into its remuneration structures at the highest level. The variable portion of the Chief Executive Officer's annual remuneration incorporates quantitative and qualitative sustainability targets alongside financial targets. Consistent with the Group's strategy combining economic and social performance, the long-term remuneration of the Chief Executive Officer, as well as that of more than 2,000 other recipients of performance shares, incorporates sustainability performance criteria in addition to financial targets. Since 2016, the determination of the variable remuneration of top management, including international brand managers and country managers, has also incorporated non-financial targets aligned with the Group's sustainability objectives. The Human Resources and Remuneration Committee submits proposals on the non-financial targets applicable to the Chief Executive Officer's variable remuneration and the long-term targets for the conditional share grant plan. Reference: 2.4.1.2.1.

L'Oreal provides a statement on due diligence mapping the core elements of the due diligence process to the relevant sections of its sustainability statement. Embedding due diligence in governance, strategy and business model is addressed in section 4.1.1 (corporate governance). Engaging with affected stakeholders in all key steps of the due diligence is covered in section 4.1.3.2 (continuous stakeholder dialogue). Identifying and assessing adverse impacts is covered in section 4.1.3.1 (double materiality assessment methodology). Taking actions to address adverse impacts is covered in section 4.1.3.3 (findings of the material topics), with remediation measures for each material negative impact explained in the policy and action plan sections of the relevant topic. Tracking the effectiveness of these efforts and communicating is covered in section 4.1.3.3, with monitoring explained in the policy, action plans and quantitative results sections. Reference: 4.15.2.

L'Oreal reports on risk management and internal controls over sustainability reporting. The Group has maintained a system for reporting, monitoring and controlling sustainability data for many years, adapted to meet CSRD requirements, with definitions, scope and controls for each required metric formally documented in a single Book of Norms for Sustainability Reporting. The Chief Financial Officer is responsible for preparing the Group's sustainability information, supported by the Sustainable Finance and Legal Departments, and this information is reported to the Audit Committee, which monitors sustainability information and the related risk management system on behalf of the Board. Quality and reliability rest on a three-level system: experts producing and reporting information; the Sustainable Finance function setting the reporting framework and supervising reliability; and the Internal Audit Department and Sustainability Auditors assessing effectiveness and issuing recommendations. The process of identifying and assessing sustainability risks is integrated into the Group's overall risk management. Reference: 3.4.

L'Oreal reports its strategy, business model and value chain. The Group describes itself as a pure player in beauty, pursuing a dual goal of combining economic excellence with social and environmental performance, built on the two complementary pillars of universalisation and singularisation and a unique multi-polar model serving some 1.3 billion consumers. In 2024 it invested over 1.354 billion euros in Research and Innovation with 4,200 researchers. The strategy is based on its business model (section 1.3.1) and rolled out across the entire value chain (section 1.3.2), which spans upstream sourcing of raw materials, its own activities (Research and Innovation, production, design and marketing) and downstream distribution, product use and end-of-life. The Group's transformation towards a more sustainable operating model aims to stay broadly within the planetary boundaries defined by science, supported by digital transformation, transformation of work and transformation of operations. Reference: 1.3.1 / 1.3.2.

L'Oreal reports the interests and views of its stakeholders. The Group places emphasis on continuous dialogue with stakeholders and strives to incorporate their expectations, interests and points of view into its strategy, using specific methods of interaction adapted to each player. In preparation for CSRD implementation, L'Oreal updated its double materiality assessment as a strategic exercise conducted with stakeholders: more than 45 external partners, including investors, NGOs, distributor customers, industry bodies and suppliers, and numerous internal experts took part in targeted interviews to confirm findings, provide new perspectives and identify areas for improvement, which were then incorporated into the final analysis. The report sets out the purpose of dialogue and 2024 initiatives for each stakeholder group, including consumers, customers (distributors), employees, international organisations and NGOs, local communities, non-financial rating agencies, public authorities, the scientific community, shareholders and investors, students and graduates, and suppliers. Reference: 4.1.3.2.

L'Oreal reports the material impacts, risks and opportunities identified through its double materiality assessment and their interaction with strategy and business model. The results are presented by topic and sub-topic in accordance with the ESRS. The assessment found all ten topical standards material: climate change (E1), pollution (E2), water resources (E3), biodiversity and ecosystems (E4), resource use and circular economy (E5), own workforce (S1), human rights in the value chain and affected communities (S2/S3), product safety, responsible labelling and consumption and responsible marketing and advertising (S4), and business conduct (G1). For each topic the report identifies the relevant positive impacts, negative impacts, risks and opportunities and the corresponding value chain location, organised across upstream sourcing, L'Oreal's own activities and downstream. Each dedicated topical section begins with a detailed presentation of the material IROs, providing information about L'Oreal's resilience to sustainability challenges. Reference: 4.1.3.3.

L'Oreal describes the process to identify and assess material impacts, risks and opportunities. In preparation for CSRD, the Group updated its double materiality assessment with its stakeholders, based on impact materiality (positive or negative gross impacts on environment and people, considering severity, scope and likelihood of remediation) and financial materiality (sustainability-related gross risks and opportunities and their potential effect on financial performance), with dependencies analysed under both dimensions. The scope covers the entire L'Oreal Groupe with no exceptions, including Aesop following its 2023 acquisition. A five-step methodology was applied: documentary analysis; identification of IROs with a specialist consultancy categorised under the ESRS framework; quantitative assessment and rating across short, medium and long-term horizons against a materiality threshold; stakeholder consultation with more than 45 external stakeholders and internal experts; and validation and reporting by governance bodies including the Board's Audit Committee. TCFD and TNFD methodologies supported detailed climate and nature analyses. The assessment found all ten topical standards material. Reference: 4.1.3.1.

L'Oreal discloses the ESRS Disclosure Requirements covered by its sustainability statement through an index (ESRS 2 IRO-2) that lists each Disclosure Requirement and its reference location. For the cross-cutting standards, this covers BP-1, BP-2 and the ten ESRS 2 general disclosures (GOV-1 to GOV-5, SBM-1 to SBM-3, IRO-1 and IRO-2), with references such as section 4.1.1 for GOV-1 and GOV-2, section 2.4.1.2.1 for GOV-3, section 4.15.2 for GOV-4, section 3.4 for GOV-5, sections 1.3.1 and 1.3.2 for SBM-1, section 4.1.3.2 for SBM-2, section 4.1.3.3 for SBM-3 and section 4.1.3.1 for IRO-1. The index continues into the topical standards E1 to E5, S1 to S4 and G1, mapping each topical Disclosure Requirement to the corresponding section of the sustainability report. A separate list of data points derived from other EU legislation is provided in application of ESRS 2 Appendix B. Reference: 4.15.3.

L'Oréal discloses a climate transition plan whose decarbonisation pathway has been validated by the SBTi and aligned with the IPCC 1.5°C ambition, revised in 2023 with new net zero targets and integrated into the L'Oréal for the Future programme. The plan pursues two ambitions against a 2019 baseline: by 2030, reduce Scopes 1 and 2 emissions by 57% and Scope 3 emissions by 28% (for purchased goods and services, business travel, and upstream transportation and distribution); and by 2050, reduce global emissions by 90%, with residual emissions offset to reach net zero. Decarbonisation levers span Scopes 1 and 2 (energy efficiency, 100% renewable energy at operated sites, electric vehicle fleet) and Scope 3 (packaging 50%, product formulas 30%, digital marketing 30%, logistics 10%, business travel 5%, other 5%). Offsetting through carbon capture is limited to a maximum of 10% of residual emissions, ramping up to 2050. On financing, L'Oréal reports €78 million of eligible CapEx under the EU Taxonomy climate change mitigation objective but states it cannot yet publish specific future decarbonisation investment amounts. Reference: L'Oréal section 4.2.3.

L'Oréal's climate change mitigation policy is embodied in its SBTi-validated climate transition plan under the L'Oréal for the Future programme, targeting net zero and setting decarbonisation trajectories across Scopes 1, 2 and 3. Commitments include reaching 100% renewable energy at all operated sites (excluding safety and security equipment) and pulling multiple decarbonisation levers across sites, packaging, product formulas, digital marketing, logistics and business travel, with supplier engagement across the value chain. On climate adaptation, the Group operates three continuity plans. The raw materials continuity plan anticipates climate risks to plant-based raw material supply through source diversification, adaptation of production areas and more sustainable farming practices. The business continuity plan protects sites against extreme weather through a four-stage approach: external risk audit, climate scenario analysis, site risk reviews and tailored adaptation plans. The product consumption continuity plan responds to water scarcity by developing formulas that use less water or require no rinsing, and investing in innovations such as the L'Oréal Water Saver showerhead. Reference: L'Oréal sections 4.2.3 and 4.2.4.

L'Oréal describes actions and resources supporting its climate policies through the decarbonisation levers set out in its transition plan. For Scopes 1 and 2, actions include improving energy efficiency of operated sites, reaching 100% renewable energy at operated sites and stores, and transitioning the vehicle fleet to electric vehicles. Scope 3 actions target packaging (reducing weight, increasing reusable, refillable and recycled formats), product formulas (biobased ingredients, replacing carbon-intensive ingredients, reducing aerosol propellant impact, combating deforestation), digital marketing, logistics (shifting air freight to sea and rail, multimodal transport, optimising fill rates) and business travel, with supplier engagement across each lever. Adaptation actions include supply chain diversification, site protection measures and water-saving product innovation. On resources, a management standard integrated into budget processes ensures each entity factors decarbonisation into financial planning; however, the Group states it cannot separate out or publish specific climate transition investment amounts, particularly for Scope 3. L'Oréal reports €78 million of eligible CapEx recognised under the EU Taxonomy climate change mitigation objective. Reference: L'Oréal sections 4.2.3 and 4.2.4.

L'Oréal discloses climate targets against a 2019 baseline. By 2030, it aims to reduce Scopes 1 and 2 carbon emissions by 57% and Scope 3 carbon emissions (from purchased goods and services, business travel, and upstream transportation and distribution) by 28%. By 2050, it aims to reduce Scopes 1, 2 and 3 emissions by 90%, with residual emissions offset to reach net zero. An energy target aims for 100% renewable energy at operated sites by 2025. The pathway is validated by the SBTi and aligned with the IPCC 1.5°C ambition. The Group reports 2024 progress against these targets: Scopes 1 and 2 emissions were down 51% versus 2019 (against the 57% target); Scope 3 emissions were up 9% (against the 28% reduction target); renewable energy at operated sites reached 97% (against the 100% target); and combined Scopes 1, 2 and 3 emissions were up 6% (against the 90% reduction target). Milestone values include a 2030 Scopes 1 and 2 market-based target of 63,763 tCO2eq and a 2050 total market-based target of 683,639 tCO2eq. Reference: L'Oréal section 4.2.5.

L'Oréal reports total energy consumption of 1,001,631 MWh in 2024. Total energy consumption from fossil sources was 101,926 MWh (10% of the total), comprising 4,171 MWh from crude oil and petroleum products, 32,419 MWh from natural gas, and 65,336 MWh from purchased electricity, heat, steam and cooling from fossil sources, with no consumption reported from coal or other fossil sources. Consumption from nuclear sources was 96 MWh (0%). Total renewable energy consumption was 899,609 MWh (90% of the total), made up of 251,927 MWh of renewable fuel consumption including biomass, 572,894 MWh of purchased renewable electricity, heat, steam and cooling, and 74,788 MWh of self-generated non-fuel renewable energy. Energy intensity from activities in high climate impact sectors was 23 MWh per €m of net revenue; the Group's activities are classified under NACE code C20.4. Reference: L'Oréal section 4.2.5.2.

L'Oréal reports GHG emissions per the GHG Protocol for 2024. Gross Scope 1 emissions were 49,691 tCO2eq (down 44% versus 2019). Gross Scope 2 emissions were 177,359 tCO2eq location-based and 23,325 tCO2eq market-based (down 61% versus 2019). Scopes 1 and 2 combined reached 227,051 tCO2eq location-based and 73,017 tCO2eq market-based (down 51% versus 2019). Total Scope 3 emissions were 7,187,462 tCO2eq (up 7% versus 2019), of which material Scope 3 categories totalled 5,900,802 tCO2eq (up 9%); the largest category was purchased goods and services at 5,361,644 tCO2eq. Total GHG emissions were 7,414,513 tCO2eq location-based and 7,260,479 tCO2eq market-based (both up 6% versus 2019). GHG intensity was 171 tCO2eq/€m location-based and 167 tCO2eq/€m market-based. Biogenic carbon emissions outside Scope 1 were 63,214 tCO2eq. Renewable electricity purchased was 510,798,042 kWh, comprising 9% Power Purchase Agreements, 55% bundled and 37% unbundled Energy Attribute Certificates. Reference: L'Oréal section 4.2.5.3.

L'Oréal reports that it does not currently use carbon offsetting mechanisms and instead relies on biodiversity to capture carbon. In 2020, the Group launched the L'Oréal Fund for Nature Regeneration, endowed with €50 million, with the mission of restoring one million hectares of ecosystems by 2030, aiming to capture 15 to 20 million tonnes of carbon and create jobs in the process. The Group emphasises that its strategy focuses on deep decarbonisation across the value chain rather than offsetting, with carbon capture reserved for residual emissions of up to a maximum of 10%, ramping up gradually through to 2050. No GHG removals are reported as being financed through carbon credits, and the Group does not report the use of carbon credits to meet its targets. Reference: L'Oréal section 4.2.5.4.

L'Oréal addresses pollution primarily through its global Environment, Health and Safety (EHS) policy, which applies to all operated sites, subcontractors and suppliers, and is designed to reduce the Group's environmental footprint while ensuring the safety of employees and partners. Key features include an EHS management system, a manual setting out protective measures, an ISO certification programme for production facilities, regular indicator-based monitoring, mandatory employee training and an internal and external audit system covering all sites worldwide. The policy rests on four pillars to prevent pollution risk: reduce impact, avoid accidental spills, increase treatment capacity and act on atmospheric pollution. It covers monitoring of surface water, treatment of industrial effluent (using chemical oxygen demand as the key water indicator) and control of non-methane volatile organic compound (NMVOC) air emissions through solvent management plans. Upstream pollution is addressed through the sustainable purchasing policy, and downstream product pollution through the Research and Innovation policy, which drives eco-design via the SPOT tool, reduction of substances of concern and removal of microplastics. Reference: 4.3.2.

L'Oréal's pollution action plans span its operations and value chain. For water, local sites carry out annual self-assessments or internal audits to manage industrial effluents, with each facility equipped with real-time monitoring of regulated indicators such as chemical oxygen demand (COD), pH and effluent temperature, enabling detection of overshoots and triggering corrective actions. The Waterloop technique is deployed to improve water treatment and recycling, and sites work towards the internal objective of limiting COD to 1,000 mg per litre of effluent from the design phase. For air, L'Oréal assesses NMVOC emissions from solvent use each year, compiling solvent purchase data and applying Solvent Management Plans that include reduction methods and action plans, with high-risk plants required to prepare such a plan. Upstream, suppliers signing the Mutual Ethical Commitment Letter commit to preventing accidental pollution of air, soil and water during production, storage and transport, supported by a risk-based audit grid. Downstream, the Research and Innovation action plan improves product environmental profiles, enhances biodegradability, removes microplastics and reduces substances of concern. Reference: 4.3.3.

L'Oréal reports a voluntary target on water pollution: it aims for 100% of its factories to comply with a limit of 1,000 mg of chemical oxygen demand (COD) per litre of effluent by 2030. This threshold represents the maximum quantity of chemically oxidisable organic matter authorised in discharges, and it was defined using studies from the first Waterloop facilities, performance at the most modern wastewater treatment plants and the rates observed in domestic water. The Group notes this objective is presented on a voluntary basis and does not result from any legal obligation. As of 2024, 24 industrial sites had wastewater below 1,000 mg COD per litre, representing 67% of manufacturing facilities. For NMVOC air emissions, L'Oréal states it has not set a quantitative target for that topic and reserves the right to do so at a later date. Reference: 4.3.4.3.

L'Oréal discloses outcomes for the pollutants identified as material under its E-PRTR-based assessment, namely non-methane volatile organic compounds (NMVOCs) for air and chemical oxygen demand (COD) for water. For 2024, NMVOC emissions totalled 743 tonnes and chemical oxygen demand after on-site treatment reached 3,690 tonnes. On other water pollution outcomes, 24 industrial sites had wastewater below the 1,000 mg COD per litre threshold, corresponding to 67% of manufacturing facilities, against the Group's aim for 100% of factories to comply by 2030. Pollution risk is managed through the EHS policy covering environmental assessment, surface water monitoring, industrial effluent treatment and control of air emissions, with real-time monitoring of regulated indicators at production sites and Solvent Management Plans for NMVOCs. The materiality assessment covered pollution of water and air from the Group's own industrial activities, as well as upstream supplier activities and downstream consumer use of rinse-off products. Reference: 4.3.4.

L'Oréal reports outcomes on microplastics and substances of very high concern (SVHCs) alongside its air and water pollutant results. In 2024, microplastics used represented less than 0.03% of the total volume of the Group's ingredients, and total substances of very high concern accounted for approximately 0.44% of that volume. By main hazard class, SVHCs classified as PBT (persistent, bioaccumulative, toxic) represented approximately 0.007% and those classified as vPvB (very persistent, very bioaccumulative) approximately 0.44% of total ingredient volume, noting that a single substance may fall into several classes. The Group prohibits the introduction of new ingredients classified as SVHC in its portfolio and undertakes to remove any substance later identified as such. The SPOT eco-design tool automatically factors in the environmental impact of substances of concern and minimises their use and concentration, while ingredient toxicological and environmental profiles are assessed in line with the REACH and CLP Regulations. L'Oréal eliminated plastic microbeads from exfoliating products by 2017 and microplastics from all rinse-off formulas by 2020. Reference: 4.3.4.

L'Oréal's water policies form part of the L'Oréal for the Future programme, which aims to reduce water consumption at every stage of the products' life cycles. The EHS policy for water management at operated sites governs the use of water from withdrawal to discharge and centres on the Waterloop concept, through which the Group uses recycled and reused water in industrial processes, deploying equipment by order of priority according to the water situation in the watersheds where it operates. Waterloop rests on process optimisation and on reuse and recycling using advanced technologies such as ultrafiltration and reverse osmosis. The sustainable purchasing policy, built on four pillars formalised in the Mutual Ethical Commitment Letter, requires strategic suppliers to commit to sustainable water management in the areas where they operate, monitored in particular through their CDP Water scores, with a 20% weighting on environmental and social commitments in supplier evaluation. The Research and Innovation policy aims to reduce water consumption linked to product use by developing formulas requiring less rinsing or no rinsing, and innovations such as the L'Oréal Water Saver showerhead. Reference: 4.4.2.

L'Oréal's water action plans operate at operated sites, across the supply chain and in product use. At production sites, a multidisciplinary approach maps water use with the internal Waterscan tool, installs equipment and processes for reduction (including the OPTImisation Cleaning in Place approach for cleaning industrial equipment, the largest consumer of water at production sites), and reuses industrial water through the Waterloop concept. With suppliers, the action plan rests on three pillars: mapping and assessing water risks and dependencies to anticipate risks and set up projects to preserve and restore ecosystems and watersheds; sustainable water management by strategic suppliers, monitored through CDP Water questionnaire scores under the L'Oréal for the Future programme; and strategies for optimising water use such as efficient irrigation, recycling and continuous monitoring. In product use, L'Oréal applies eco-design via the SPOT tool along three pillars: innovation in routine through no-rinse products, reducing rinse-off water quantities by improving rinsability, and deploying technologies such as the L'Oréal Water Saver in hair salons. Reference: 4.4.3.

L'Oréal reports that it has not set a quantitative target for water resources. Instead, its approach to managing water consumption and withdrawals is framed by the L'Oréal for the Future programme, which aims to reduce water consumption at every stage of the products' life cycles, and is pursued through policies and action plans rather than a numerical objective. At operated sites, the Group maps water use with the Waterscan tool, installs equipment and processes to reduce consumption, and reuses industrial water through the Waterloop concept. Across the value chain, it works with strategic suppliers to promote responsible water stewardship, monitored through CDP Water scores, and applies eco-design via the SPOT tool to reduce the water footprint associated with product use, including no-rinse products and reduced rinse-off water quantities. Progress is tracked through outcome indicators such as total water consumption, consumption in areas at water risk, water recycled and reused, and water intensity. Reference: 4.4.

L'Oréal discloses its water consumption outcomes for 2024 in line with the CSRD disclosure requirements for E3-4. Total water consumption was 972,374 m3. Total water consumption in areas at water risk, including areas of high water stress, was 353,639 m3, an indicator calculated on the Group factories scope. Total water recycled and reused amounted to 877,222 m3. Water intensity, expressed as total water consumption per net revenue on own operations, was 22 m3 per euro million, with the turnover figures used for this ratio set out in the financial statements. These outcomes reflect the Group's action to limit its water footprint at operated sites through mapping, reduction and reuse, notably via the Waterloop concept, and across the value chain through work with suppliers and eco-design of products. Reference: 4.4.4.1.

L'Oreal sets out its biodiversity policies given that it prioritises plant-based ingredients in formulas and packaging. The Group aims to ensure that the biobased ingredients used are traceable and sourced sustainably, and that the land cover required to produce ingredients remains unchanged. The sustainable purchasing policy promotes an integrated approach reconciling respect for human rights with the protection of ecosystems, with a focus on regenerative agriculture to restore soil quality and preserve biodiversity while accounting for climate change. The forest policy aims to establish a fully sustainable and traceable supply of forestry raw materials, without deforestation or exploitation, and while respecting the rights of workers and communities. It is built on two pillars: responsible forest management, encouraging traceable and sustainable sourcing; and protection and rehabilitation, supporting the protection and restoration of forest ecosystems while promoting a sustainable economy for local populations. Grievance mechanisms include the Speak Up platform and the palm alert procedure. The L'Oreal Fund for Nature Regeneration, a 50 million euro impact investment fund managed by Mirova, supports projects to restore natural ecosystems. Reference: 4.5.2.

L'Oreal describes actions to reduce its impact on biodiversity and restore ecosystems. To reduce impact on ecosystems, the Group measures its biodiversity footprint with The Biodiversity Consultancy, quantifying land cover through required ground surface and biodiversity loss, expressed in MSA.ha (Mean Species Abundance) and using the Species Threat Abatement and Recovery (STAR) metric based on IUCN data. It works to keep land cover unchanged through regenerative agriculture, innovative alternatives via the Green Sciences programme, and support for rehabilitation projects. It prioritises sustainably sourced renewable raw materials using the ISO 16128 standard and the SCAN Index, and pursues a zero deforestation approach through traceability, specific action plans for palm oil, soya and wood fibre, risk management and supplier engagement. Improvement plans are in place with suppliers representing 70% of the volume of raw materials with sustainability challenges. Specific actions cover palm oil (RSPO), soya bean oil and paper and cardboard (FSC or PEFC). To restore biodiversity, the Group implements regenerative farming practices with suppliers and supports ecosystem regeneration through the L'Oreal Fund for Nature Regeneration. Reference: 4.5.3.

L'Oreal reports that it has not set a quantitative target for biodiversity and ecosystems. Instead, the Group frames its approach around two priorities: combating deforestation, conversion and the degradation of forestry ecosystems; and restoring degraded ecosystems and regenerating nature. It describes qualitative ambitions rather than measurable targets, including ensuring that biobased ingredients are traceable and sourced sustainably and that the land cover required to produce plant-based ingredients remains unchanged. Related ambitions cited elsewhere in the biodiversity section include the L'Oreal Fund for Nature Regeneration's aim to help restore one million hectares of degraded ecosystems by 2030 and to capture 15 to 20 million tonnes of CO2. The Group is actively involved in international bodies such as the Science-Based Targets for Nature network, the B4B+ club of CDC Biodiversity, and the One Planet Business for Biodiversity (OP2B) collective as it continues to develop assessment methodologies. Reference: 4.5.

L'Oreal sets out its circular economy policies covering the responsible management of ingredients and packaging materials. The circular packaging policy is an eco-design policy overseen by the Sustainable Packaging Department and approved by General Management, applying the reduce, replace and recycle principle (the 3Rs) at each product launch and using the SPOT eco-design process when developing new products. It aims to reduce packaging intensity compared with 2019, use recycled or biobased plastics, and use plastic packaging that is refillable, reusable, recyclable or compostable. The Research and Innovation policy aims to increase the proportion of ingredients that are biobased, derived from abundant minerals or from circular processes, and to develop formulas with biodegradable materials, in line with the R&I policy in section 4.3.2. The EHS policy addresses waste, with each site aiming to recycle or reuse 100% of the waste it generates and to reduce waste production by 30% compared to 2019, within the broader ambition of zero waste to landfill. Reference: 4.6.2.

L'Oreal describes action plans for resource use and circular economy across packaging, formulas and operated sites. For circular packaging, the Group works on four aspects: reducing packaging intensity by making packaging lighter and developing refillable formats; using recycled or biobased materials for plastic packaging, including social audits and a Mutual Ethical Commitment Letter for recycled plastics suppliers; promoting refillable, reusable, recyclable or compostable packaging by removing elements that interfere with recycling; and developing collection and recycling channels with partners, supporting Extended Producer Responsibility (EPR) initiatives. For formulas, the Group accelerates circularity through transitioning raw materials from petrochemical-based to biobased alternatives, the Green Sciences programme, and strategic partnerships with biotech start-ups. To preserve resources and reduce waste at operated sites, it reduces waste at source through eco-design, waste mapping, optimised transport packaging and process improvement; reuses and recycles waste targeting 100% material recovery by 2030; pursues zero waste to landfill; and accelerates the circular economy through the Circular Innovation Fund. Reference: 4.6.3.

L'Oreal reports that it has not set a quantitative target for resource use and circular economy. Instead, the Group describes its approach through the circular economy as a key pillar of the L'Oreal for the Future programme, seeking to preserve natural resources and improve practices across the product life cycle from design to end of life. Qualitative ambitions described in the topic include reducing packaging intensity compared with 2019, using recycled or biobased plastics, and using plastic packaging that is refillable, reusable, recyclable or compostable. Operational ambitions cited within the section include each site aiming to recycle or reuse 100% of the waste it generates, reducing waste production by 30% compared to 2019, targeting 100% material recovery from waste through reuse and recycling by 2030, and pursuing zero waste to landfill for all sites since 2017. On the formulas side, the Group aims to increase the proportion of ingredients that are biobased, derived from abundant minerals or from circular processes. Reference: 4.6.

L'Oreal reports outcomes related to resource inflows for 2024. The overall total weight of products and technical and biological materials used during the reporting period was 306,477 tonnes for primary and secondary packaging and 1,203,544 tonnes for formulas. The percentage of the total weight of ingredients that are biobased and from sustainable sources was 18%, and the percentage of the total weight of packaging materials that are biobased and from sustainable sources was 11%. The weight of recycled packaging components was 78,375 tonnes in absolute terms, representing 26% as a percentage. Reference: 4.6.4.1.

L'Oreal reports outcomes related to resource outflows for 2024. The percentage of recyclable content in packaging was 53%. The total amount of non-recycled waste was 50,462 tonnes, representing 31% of waste as a percentage. Total waste amounted to 164,938 tonnes, comprising 23,373 tonnes of hazardous waste and 141,565 tonnes of non-hazardous waste. Recovered waste totalled 156,907 tonnes, made up of 4,699 tonnes recovered through preparation for reuse, 109,777 tonnes recovered through recycling, and 42,430 tonnes through other recovery operations (energy recovery). Waste directed to disposal totalled 8,032 tonnes, comprising 7,222 tonnes disposed of by incineration and 810 tonnes sent to landfill, with no waste reported under other disposal operations. Reference: 4.6.4.2.

L'Oreal reports waste outcomes for 2024. Total waste generated was 164,938 tonnes, of which 23,373 tonnes was hazardous and 141,565 tonnes was non-hazardous. Recovered waste totalled 156,907 tonnes (18,902 tonnes hazardous and 138,005 tonnes non-hazardous), split between 4,699 tonnes recovered through preparation for reuse, 109,777 tonnes recovered through recycling, and 42,430 tonnes through other recovery operations (energy recovery). Waste directed to disposal totalled 8,032 tonnes, comprising 7,222 tonnes disposed of by incineration and 810 tonnes sent to landfill, with no waste reported under other disposal operations. The total amount of non-recycled waste was 50,462 tonnes, equivalent to 31% of waste. The Group targets 100% material recovery from waste through reuse and recycling by 2030 and pursues zero waste to landfill for all sites. Reference: 4.6.4.2.

L'Oreal's own workforce policies are anchored in its HR policy, Employee Human Rights policy, Share & Care programme, Code of Ethics, EHS policy and Diversity, Equity and Inclusion policy. The Group commits to respecting employees' human rights in line with the Universal Declaration of Human Rights, ILO conventions, OECD Guidelines and the UN Guiding Principles, and has been a UN Global Compact signatory since 2003. Policies cover social dialogue, freedom of association and collective bargaining, overseen by the Executive Director of Labour Relations and Social Innovation. A living wage policy guarantees minimum and living wages covering housing, healthcare, food and education. The EHS policy sets a culture of safety across the value chain. The diversity, equity and inclusion policy, led by the Global Chief Diversity, Equity & Inclusion Officer, is built around four themes: socio-economic and multicultural diversity, physical, mental and social well-being, age and generations, and gender equity and LGBTQIA+ inclusion. The human rights policy prohibits all forms of violence and harassment in the workplace. Reference: 4.7.2.1 / 4.7.3.1 / 4.7.4.1.

L'Oreal engages with its own workforce and workers' representatives through structured social dialogue. The Executive Director of Labour Relations and Social Innovation, who reports to the Chief Human Relations Officer, oversees the policy, ensuring that elections to employee representation bodies are organised without interference, that workers' representatives have access to premises and employees subject to confidentiality and safety, and that alternative forums for dialogue exist in countries where freedom of association is restricted. The Group organises events such as the annual Ethics Day alongside regular town halls to encourage discussion, experience sharing and feedback. An annual PULSE survey collects employee feedback on their experience working for the Group. L'Oreal ensures workers' representatives can operate effectively in all host countries, even where union rights are limited, and maintains dialogue with representative bodies across the majority of subsidiaries in Europe, Asia, Africa and the Americas. Since 1996, a collective bargaining agreement has existed between L'Oreal and the European trade unions, leading to the European Works Council of 30 members representing 26 countries, which provides a platform for ongoing dialogue with General Management. Reference: 4.7.2.1.1.

L'Oreal provides channels for its workforce to raise concerns and processes to remediate negative impacts. In line with its human rights policy, based on the OECD Due Diligence Guidance and the Code of Ethics, the Group aims to eliminate all forms of violence and harassment, including sexual, psychological and physical harassment, discrimination and intimidation, and undertakes to prevent them by raising employee awareness and building a culture of mutual respect. It strives to ensure all complaints of violence and harassment are dealt with diligently, confidentially and impartially through the Speak Up programme. The annual Pulse survey features 50 questions on human rights topics, enabling the Group to assess how well the policy is applied. Employees are encouraged to report acts of violence or harassment and are protected from retaliation. Clear, accessible and confidential reporting procedures are in place, complaints are handled rigorously with a specific process ensuring an appropriate response to each situation, and appropriate disciplinary action is taken against anyone who commits an act of violence or harassment. Special attention is paid to beauty advisors, who are often more exposed to this type of risk. Reference: 4.7.4.1.3.

L'Oreal takes action across working conditions, employee well-being and equal treatment. On social dialogue, collective bargaining agreements are signed each year with workers' representatives, and audits verify that working conditions respect fundamental rights; in 2024, 30 industrial sites underwent a human rights audit by expert external auditors, with remediation plans and re-audits where non-compliance is found. On wages, an in-depth review ensures salaries are living wages, and in 2024 the Group was certified for the second consecutive year by the Fair Wage Network as a Living Wage Employer, with the certification valid until 16 December 2025. On health and safety, L'Oreal pursues a zero-accident vision through transparent accident reporting, risk assessments and audits, the MESUR and LIFE programmes, an EHS culture roadmap, and Root Cause Analysis of incidents, with ISO 45001 certification covering 97% of manufacturing facilities. On diversity, equity and inclusion, actions cover socio-economic and multicultural diversity, disability inclusion, age and generational diversity, gender equity and LGBTQIA+ inclusion, an anti-domestic violence policy, and measures to combat violence and harassment. Reference: 4.7.2.2 / 4.7.3.2 / 4.7.4.2.

L'Oreal has set targets related to managing impacts on its workforce. On occupational health and safety, the Group aims for a zero-accident environment and has a 2030 goal of an Enlarged Total Incident Rate (eTIR) below 0.6 at its operated sites, which would require reducing its number of accidents by almost 50%. On diversity, equity and inclusion, the Group targets maintaining at least 40% women or men in strategic positions on an annual basis, and set an objective for persons with disabilities to represent 2% of the Group's workforce by 2025. On equal pay, L'Oreal aims to limit unjustified gender pay gaps to within a range of 5% above and below. On disability, it works with specialised partners toward the disability employment objective. These targets are monitored through annual reviews, indicators and internal surveys such as the Pulse Self-ID. Reference: 4.7.2.2.3 / 4.7.4.2.1.

L'Oreal reports a total of 95,023 employees for 2024, comprising 30,222 male, 64,590 female, 47 other and 164 not reported. The Group notes a change in calculation method in 2024, with the workforce now including all people with an employment relationship whether active or not, such as employees on long-term sick leave, early retirement or unpaid leave, and interns and apprentices where they have an employment relationship under local law. Countries with at least 50 employees representing at least 10% of the total workforce are France (17,777), the United States (13,577) and China (15,746). By contract type, there are 76,265 permanent employees (50,249 women, 25,819 men, 42 other, 155 not reported), 18,758 temporary employees (14,341 women, 4,403 men, 5 other, 9 not reported) and 510 non-guaranteed hours employees (332 women, 178 men). A total of 9,862 employees left the company, giving an employee turnover rate of 12.9%. Reference: 4.7.5.1.

L'Oreal reports collective bargaining coverage and social dialogue for employees in the European Economic Area, covering countries with more than 50 employees representing over 10% of total employees. Collective bargaining coverage for the Total European Economic Area and for France falls in the 80% to 100% band. For social dialogue, workplace representation within the EEA is reported for France, also in the 80% to 100% band. Reference: 4.7.5.2.

L'Oreal reports gender distribution at top management level and age distribution of employees for 2024. At top management level, there are 162 men and 154 women in key strategic positions including the Executive Committee, with women representing 49%. By age group, 23,332 employees are aged under 30 (of which 0 are aged under 16 and 6 are aged 16 to 18), 56,406 are aged 30 to 50, and 15,285 are aged over 50. Reference: 4.7.5.3.

L'Oreal reports that 100% of the Company's employees are paid an adequate wage in 2024. Reference: 4.7.5.4.

L'Oreal reports that the percentage of employees with disabilities is 2.1% in 2024. Reference: 4.7.5.5.

L'Oreal reports health and safety metrics required by ESRS S1-14 for 2024. The percentage of own workforce covered by the company's health and safety management system based on legal requirements or recognised standards or guidelines is 100%. There were 0 fatalities as a result of work-related injuries and work-related ill health. The number of recordable work-related accidents was 285, and the Enlarged Total Incident Rate (eTIR) was 1.46; this metric does not include workdays lost owing to commutes and first aid accidents. On a voluntary basis, the Group also reports a Lost Time Injury Rate (LTIR) of 0.79. Reference: 4.7.5.6.1.

L'Oreal reports remuneration metrics for 2024. The gender pay gap, as a percentage of the average pay level of male employees, is 2.9% excluding beauty advisors and -9.2% for beauty advisors only. Given the high proportion of beauty advisors in the workforce (almost 25%, 90% of whom are women and who have the lowest pay levels), two calculations are made; an adjusted pay gap that neutralises structural variables such as the beauty advisor role, level of responsibility and seniority comes out at 1.6%. The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees (excluding the highest-paid individual) is reported by Zone: Europe 179, Latin America 67, North America 49, North Asia 70, and SAPMENA & SSA 88. Reference: 4.7.5.7.

L'Oreal reports incidents, complaints and severe human rights impacts for 2024. The total number of incidents of discrimination reported, including harassment, was 34. The number of complaints reported through Speak Up in accordance with paragraph 2 of S1, in particular for working conditions, equal treatment and opportunities and other work-related rights (excluding cases already reported in the discrimination total), was 23. The total amount of fines, penalties and compensation for damages as a result of these incidents and complaints was 0 euros. The number of severe human rights incidents connected to the company's workforce was 0, with a total amount of fines, penalties and compensation for damages of 0 euros. Reference: 4.7.5.8.

L'Oreal reports a human rights policy that underpins its determination to respect human rights throughout the value chain, covering a wide range of products, supply countries and types of purchase. The policy draws on the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and rests on four core pillars: identification of salient risks, a culture of respect through employee training, stakeholder engagement, and the roll-out of transformation action plans. A separate sustainable purchasing policy and forest policy set social and environmental standards for suppliers, with the Mutual Ethical Commitment Letter committing suppliers to human rights and environmental standards throughout their own value chain. L'Oreal expects suppliers to prohibit child labour (minimum employment age 16), ban forced labour, ensure social dialogue and freedom of association, pay adequate wages, ensure occupational health and safety, guarantee access to water and sanitation, and combat violence and harassment. It notes it does not have a specific policy to promote long-term employment stability for value chain workers. Governance sits with the Chief Corporate Responsibility Officer, supported by more than 50 human rights correspondents and a Human Rights Committee for the supply chain. Reference: 4.9.2.

L'Oreal reports that its human rights policy includes stakeholder engagement as a core pillar, whereby the Group engages in active dialogue with its partners, takes their concerns into account and encourages them to set up transparent whistleblowing systems. It works with its stakeholders, especially those directly affected, to resolve situations of risk or harm. Action plans in place include supplier support and assessment, through which L'Oreal works closely with its direct suppliers to promote responsible social and environmental practices, particularly on human rights and adequate wages, using various tools and processes to assess suppliers. Suppliers in countries identified as high risk by Verisk Maplecroft undergo a compulsory social audit based on the SA 8000 standard before listing, and the Group conducts human rights impact assessments in at-risk regions. Where a violation affecting value chain workers is identified, the Group immediately engages in dialogue with suppliers, and information collected during discussions with stakeholders informs the actions taken. It also participates in coalitions and impact studies to gather insight and strengthen monitoring. Reference: 4.9.3.

L'Oreal reports that it has set up channels for reporting potential human rights violations affecting workers in the value chain. These include dialogue with stakeholders, the Speak Up platform (a secure, anonymous website accessible to all stakeholders around the clock and available in 30 languages, with performance monitored via indicators) and the palm alert procedure, which is communicated to all stakeholders including workers in the value chain. The oversight process is designed to ensure strict confidentiality, fair treatment, protection against reprisals and compliance with national legislation. Where a violation of the human rights of value chain workers is identified, the required actions depend on the specific context and are determined in light of an impact assessment and information gathered during discussions with stakeholders. The Group immediately engages in dialogue with suppliers and implements immediate measures to identify the source of the incident and roll out corrective action plans in the short, medium and long term. Consistent with its policy, L'Oreal commits to remedy damage using its own resources or in cooperation with other organisations. Reference: 4.9.3.

L'Oreal reports that it applies its sustainable purchasing policy through several main categories of measures targeting workers in the value chain. These include in-house training in responsible purchasing, with a compulsory module on human rights for all onboarding purchasers; supplier support and assessment, including compulsory SA 8000 social audits for suppliers in high-risk countries identified by Verisk Maplecroft and human rights impact assessments in at-risk regions; and roll-out of the Living Wage programme, which commits strategic suppliers to the principle of an adequate wage in line with recommendations from the International Labour Organisation and the IDH Sustainable Trade Initiative and with support from the Fair Wage Network and Wage Indicator Foundation. Further measures cover contractual commitments through the Mutual Ethical Commitment Letter, monitoring and complaints channels, and involvement in coalitions and impact studies such as the Consumer Goods Forum's Human Rights Coalition for Action. In response to a human rights risk in the Turkish rose sector, L'Oreal joined the Harvesting the Future initiative led by the Fair Labor Association, running to end-2026, to improve working conditions and empower seasonal workers. Reference: 4.9.3.

L'Oreal does not report a quantitative target for managing negative impacts, advancing positive impacts, or managing risks and opportunities related to workers in the value chain. Instead, it describes a policy-driven and action-based approach. In line with its human rights policy, the Group strives to take human rights issues into account through its conduct, identify and assess the main potential and proven negative impacts on value chain workers, stop, prevent and mitigate breaches of internationally recognised human rights using a risk-based approach in line with the UN Guiding Principles on Business and Human Rights and the French Duty of Care law, monitor the implementation and results of action plans, communicate transparently on how impacts are dealt with, and remedy damage using its own resources or in cooperation with other organisations. The Living Wage programme aims for all employees of its strategic suppliers to ultimately earn an adequate wage, and its forest policy aims for 100% sustainable and traceable sourcing. The Group is also preparing for the application of the European Corporate Sustainability Due Diligence Directive. Reference: 4.9.

L'Oreal reports that its human rights policy extends to affected communities, particularly in the sourcing value chain. The policy recognises the rights of indigenous peoples as defined by the United Nations Declaration on the Rights of Indigenous Peoples. The Mutual Ethical Commitment Letter commits L'Oreal and its suppliers to respecting human rights, including those of indigenous peoples, and the Group supports local communities through on-the-ground projects related to its value chain. Commitments include compliance with the principles of the Nagoya Protocol on access to genetic resources and fair and equitable benefit sharing, in line with the Code of Ethics, and implementation of due diligence procedures on the ground, notably under the forest policy, to identify and mitigate environmental and social risks including for indigenous peoples. The forest policy strives to create decent working conditions and respect the rights of local communities and indigenous peoples, recognising their right to self-determination and ensuring free, prior and informed consent for activities likely to affect their lands and resources. Governance sits with the Chief Corporate Responsibility Officer, supported by more than 50 human rights correspondents. Reference: 4.9.2.

L'Oreal reports that it engages with affected communities primarily through its field projects and its due diligence procedures. For each field project involving indigenous peoples and/or local communities, a consultation is carried out at the start of the project to ensure that the action plan is fully aligned with the needs of those peoples and communities. The action plan then involves members of the community directly or indirectly as beneficiaries, for example through training activities in good farming practices. The Group ensures it obtains the free, prior and informed consent of indigenous peoples for any activity likely to affect their lands and resources. In the palm oil sector, L'Oreal participates in the Action for Sustainable Derivatives Grievance Taskforce, which maintains regular dialogue with civil society organisations, including indigenous peoples, to facilitate the reporting of incidents. Consistent with its human rights policy, the Group engages in active dialogue with partners and works with stakeholders, especially those directly affected, to resolve situations of risk or harm. Information collected during discussions with stakeholders informs the actions taken where a violation affecting communities is identified. Reference: 4.9.3.

L'Oreal reports channels for affected communities to raise concerns and processes to remediate negative impacts. Reporting channels include dialogue with stakeholders, the Speak Up platform (a secure, anonymous website accessible to all stakeholders around the clock in 30 languages) and the palm alert procedure, through which supply chain grievances can be identified, assessed and monitored on an ongoing basis and, where necessary, a remedial action plan put in place. Specific systems for reporting suspicious practices are sometimes established for particular field projects, feeding into the wider reporting management mechanism. In the palm oil sector, L'Oreal proactively identifies alerts by participating in the Action for Sustainable Derivatives Grievance Taskforce. The oversight process ensures strict confidentiality, fair treatment, protection against reprisals and compliance with national legislation. Where a violation of the human rights of affected communities is identified, the required actions depend on the context and are determined in light of an impact assessment and stakeholder discussions, with immediate measures and corrective action plans rolled out with suppliers. Consistent with its policy, the Group commits to remedy damage using its own resources or in cooperation with other organisations. Reference: 4.9.3.

L'Oreal reports actions addressing impacts on affected communities, delivered largely through its forest policy and field projects. It implements due diligence procedures on the ground to identify and mitigate environmental and social risks affecting indigenous peoples, including the palm alert procedure. For each field project involving indigenous peoples or local communities, a consultation is carried out at the outset to align the action plan with community needs, and community members are involved as direct or indirect beneficiaries, for example through training in good farming practices. The Group participates in coalitions and impact studies, including the Action for Sustainable Derivatives Grievance Taskforce, which maintains dialogue with civil society organisations including indigenous peoples. In the Turkish rose sector, L'Oreal joined the Harvesting the Future initiative led by the Fair Labor Association (running to end-2026) and works with stakeholders including the Turkish government, local civil society organisations, processors and growers to strengthen human rights monitoring. Its zero deforestation and support for local populations, including working with small-scale producers and promoting regenerative agriculture, are detailed in the biodiversity section (4.5.3.1). Reference: 4.9.3.

L'Oreal does not report a quantitative target for managing negative impacts, advancing positive impacts, or managing risks and opportunities related to affected communities. Instead, it sets out a policy-driven and action-based approach. In line with its human rights policy, the Group strives to identify and assess the main potential and proven negative impacts on affected communities, stop, prevent and mitigate breaches of internationally recognised human rights using a risk-based approach consistent with the UN Guiding Principles on Business and Human Rights and the French Duty of Care law, monitor the implementation and results of action plans, communicate transparently on how impacts are dealt with, and remedy damage using its own resources or in cooperation with other organisations. It recognises the rights of indigenous peoples, applies free, prior and informed consent for activities affecting their lands, and complies with the Nagoya Protocol. Its forest policy aims for 100% sustainable and traceable sourcing. The Group is also preparing for the application of the European Corporate Sustainability Due Diligence Directive. Reference: 4.9.

L'Oreal sets out policies covering its four material consumer matters. The personal data protection policy commits the Group to comply with applicable laws in each country and rests on six principles: a people-centric approach, a trusting relationship with employees, a commitment to ethics, building lasting trust, involving General Management and managing risks. The quality and safety policy makes consumer safety an absolute priority and is built around four principles: meeting consumer expectations, complying with legal and safety requirements, maintaining and regularly reviewing assessment standards, and ensuring product quality and conformity across the supply chain. On responsible labelling and consumption, the Research and Innovation and packaging policy aims to guide consumers towards lower-impact products through greater transparency and eco-friendly design, supported by the EcoBeautyScore Association. The responsible advertising and marketing policy, anchored by the Code of Ethics, human rights policy, diversity, equity and inclusion policy and the Influencer and Content Creator Values Charter, applies the ICC Code and Cosmetics Europe guiding principles. Reference: 4.8.2, 4.10.2, 4.11.2, 4.12.2.

L'Oreal describes processes for engaging consumers across its material matters. On data protection, it provides a dedicated email address that consumers and employees can use to ask Data Privacy Officers questions about the protection of their personal data, and regularly reviews privacy procedures. On product safety, an international cosmetovigilance network staffed by health experts in around 100 countries collects, records, evaluates and processes spontaneous reports of adverse health events, including reports submitted by consumers, feeding analysis of tolerance and corrective measures. Consumers can contact each brand's consumer service team by phone, social media or e-mail, with the contact address displayed on products; feedback is compiled into Voix du Consommateur reports for brand managers. On responsible labelling, the Product Impact Labelling system displays A-to-E environmental ratings on the product pages of 12 brands across 32 countries, and L'Oreal co-founded the EcoBeautyScore Association, which ran a public consultation in June 2024. On marketing, the Group participates in initiatives such as the WFA Planet Pledge and the Unstereotype Alliance. Reference: 4.8.3, 4.10.3, 4.11.3, 4.12.3.

L'Oreal reports channels through which consumers can raise concerns and processes to remediate negative impacts. For data protection, a dedicated email address lets consumers and employees put questions to Data Privacy Officers about the protection of their personal data. For product safety, consumers can contact each brand's consumer service team by phone, social media or e-mail, with the address shown on products. Every contact is recorded and the team seeks to resolve the issue using a decision tree, keeping the consumer informed of progress and providing a response summarising the exchange and next steps; requests to analyse products are forwarded to the quality coordinator and the relevant internal unit. The cosmetovigilance network can propose corrective measures such as reformulation or removing or substituting ingredients where tolerance issues arise. On labelling, the Group works with distribution networks to present ratings clearly and communicate transparently. On marketing, L'Oreal restricts targeting of children and applies safeguards on influencer partnerships and data use. Reference: 4.8.3, 4.10.3, 4.11.3, 4.12.3.

L'Oreal takes action on its material consumer impacts, risks and opportunities. On data protection it operates a multilayered governance structure with Global Strategy, Zone Steering and Country committees, adheres to the 10 Key Points on Personal Data Protection charter and the GDPR-inspired Data Privacy at L'Oreal policy, maintains a network of professionals, runs training, conducts internal audits tracked through dashboards and included in the annual audit plan, and requires suppliers to meet data protection and cybersecurity standards. On product safety, the Worldwide Safety Evaluation Department establishes toxicological profiles and verifies formula tolerance before market, all production facilities are ISO 9001 certified and apply ISO 22716 Good Manufacturing Practices, subcontractors follow a quality charter, and regular audits cover the value chain. On labelling, L'Oreal rolls out Product Impact Labelling based on SPOT life cycle assessments and advances the EcoBeautyScore methodology. On marketing, it ensures sincere, verifiable claims, embeds diversity and inclusion, limits retouching, applies a child-conscious approach, uses generative AI responsibly and promotes sustainability. Reference: 4.8.2, 4.10.2, 4.11.2, 4.12.2.

L'Oreal does not report a quantitative target for its consumer and end-user matters, instead describing its management approach. On product safety, the Group relies on consistent worldwide application of safety standards, ISO 9001 certification and ISO 22716 Good Manufacturing Practices across all production facilities, continuous quality control and an international cosmetovigilance network to monitor and correct adverse effects. On responsible labelling and consumption, it pursues the ongoing roll-out of the Product Impact Labelling system, currently available on 12 brands across 32 countries and 12 categories, and the development of an industry-wide EcoBeautyScore methodology through the EcoBeautyScore Association. On responsible marketing and advertising, the Group applies its responsible advertising and marketing policy and industry codes, embeds diversity and inclusion, minimises image retouching, operates a child-conscious approach, uses generative AI responsibly and reduces the carbon footprint of its advertising in line with SBTi-validated decarbonisation commitments. Progress is steered through the relevant governance bodies and monitored qualitatively rather than against a defined numerical target. Reference: 4.10, 4.11, 4.12.

L'Oréal reports that its business conduct is governed by a Code of Ethics built on the principles of integrity, respect, courage and transparency. The ethics policy rests on two main pillars. The Code of Ethics applies to all employees, members of the Executive Committee and Management Committees, and the Group's corporate officers, guiding them in identifying sensitive situations and appropriate behaviour through clear rules and concrete examples. Compliance with these principles is factored into the performance assessment of each employee, particularly managers, and an ethical dimension is integrated into decision-making through regular dialogue with stakeholders and internal working groups. The second pillar is Speak Up, an internal whistleblowing system introduced in 2008 that employees and external stakeholders can use to report concerns or breaches in complete confidence, notably on human rights, safety, corruption and the environment. Reports may be submitted through a secure, anonymous website available around the clock in 30 languages, or through authorised persons, and are forwarded to the Chief Ethics, Risk and Compliance Officer. L'Oréal protects whistleblowers, keeps information confidential, and conducts an independent and impartial investigation into each report, followed by remediation if necessary. Reference: 4.13.2.

L'Oréal reports that it places great importance on an ethical and efficient value chain, putting sustainable and mutually beneficial relationships with suppliers at the heart of its priorities. This policy is formalised in The Way We Work With Our Suppliers, which guides the actions of the Group and its employees. L'Oréal undertakes to select its suppliers rigorously and fairly, using open and transparent competitive bidding based on objective criteria for assessing areas such as quality, price, innovation and performance in social and environmental responsibility. It commits to nurturing a climate of trust and collaboration by encouraging regular communication, guaranteeing that information exchanged is kept confidential, and prohibiting all forms of corruption or favouritism. All suppliers sign the Mutual Ethical Commitment Letter, which sets out requirements on respect for human rights, decent working conditions, environmental protection and business integrity. L'Oréal also commits to meeting its financial obligations by paying all suppliers on time, regardless of category and according to the agreed terms, pursuant to local legislation and the Group's contractual commitments. The disclosure does not separately address the treatment of small and medium-sized enterprises. Reference: 4.13.2.2.

L'Oréal reports outcomes related to its payment practices for 2024. The actual time to pay was 45 days, and 90% of payments complied with standard payment terms. The Group reported four legal proceedings currently outstanding for late payments. Payment practices coverage under G1-6 relates to payments outside the Group and reached 99% coverage, with Kenya and Aēsop excluded. To support these outcomes, L'Oréal monitors payment times by updating its internal tools and purchasing terms and conditions, and closely tracks pay-on-time payment performance indicators to ensure that contractual payment terms are respected. The Group states that it is committed to finding amicable solutions to any financial difficulties encountered by its suppliers. Reference: 4.13.4.