Combining economic and social excellence

In line with our purpose— “Create the beauty that moves the world”—our goal is to have a positive and sustainable social and economic impact that benefits all stakeholders in our ecosystem.

Economic performance is inextricably tied to social and environmental performance

L’Oréal firmly believes that financial performance goes hand in hand with social, environmental and governance performance. These two pillars of value creation are inextricably tied to one another for the Group. In line with this strategy, L’Oréal consistently acts in the best interests of all of its stakeholders: employees, consumers, shareholders, customers, suppliers, and more.  

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Value creation

Impact investing: responsible finance

Impact investing refers to socially responsible investments that aim to generate a positive social or environmental impact, while also ensuring a return on those investments. 

Through the €50m L’Oréal Fund for Nature Regeneration, founded in 2020, the Group will invest, over the course of three years, in about 10 projects devoted to restoring and protecting forests, oceans and coastlines. The fund is already supporting a rewilding initiative launched in the United Kingdom in 2021. The Group will provide regular updates on the fund’s financial performance as well as its measurable positive impact on the environment.

In 2021, the Group also launched the Circular Innovation Fund, which aims to invest 150 to 200 million euros (50 million of which come directly from L’Oréal) by 2030 in projects related to recycling, the new economy, public transport, sustainable packaging, new materials and waste management.

To monitor the roll-out of these initiatives and their impact in the long term, the Group has set up dedicated governing bodies. For the L’Oréal Fund for Nature Regeneration, there are three such bodies: the investment committee, which manages the fund and makes investment decisions; the expert committee, whose mission is to issue strategic recommendations on project selection; and the supervisory council, made up of L’Oréal representatives who approve the accounts as well as any modifications to the fund’s rules and regulations, and review the manager’s work once a year.