Value creation Where performance meets progress L’Oréal is committed to dual excellence – the fusion of economic performance with environmental and social progress. Together, they guide our long-term investment decisions and allow us to create and share sustainable value with our stakeholders. 1.6 m jobs supported worldwide 50 countries took part in The Refill Movement campaign Message from Christophe Babule and Ezgi Barcenas New lens Finance and sustainability: in perfect harmony Watch video Text version Christophe Babule Chief Financial Officer "It is our deep belief that our financial performance is completely tied to our progress on environmental and social issues." "It is our deep belief that our financial performance is completely tied to our progress on environmental and social issues." Ezgi Barcenas Ezgi Barcenas, Chief Corporate Responsibility Officer and CEO, Fondation L'Oréal "By sparking constant innovation in products, processes and business models, sustainability is a fundamental driver of long-term value." "By sparking constant innovation in products, processes and business models, sustainability is a fundamental driver of long-term value." Video transcript: Ask our value creation experts Ask our value creation experts Thomas (L’Oréal Global Operations Finance Controller): So, how has the dialogue between finance and sustainability changed over the years? Why is it so central to L’Oréal’s strategy today? Christophe Babule (L’Oréal Chief Financial Officer): Well, to put it simply, finance and sustainability are not two separate topics. For us, they are two sides of the same coin. We call this ‘dual excellence’. It’s our deep belief that our financial performance is completely tied to our progress on environmental and social issues. You simply can’t have one without the other. This idea is at the very heart of our strategy and guides every decision we make. Ezgi Barcenas (L’Oréal Chief Corporate Responsibility Officer): Indeed, and sustainability is a fundamental driver of long-term value, crucial for futureproofing our business. It supports financial performance by sparking constant innovation in products, processes and business models. Furthermore, sustainability builds resilience across our value chain, attracts top talent, and helps address the diverse aspirations and needs of our consumers. Emma (L’Oréal CSR Project Manager): So L’Oréal uses a range of financial tools, from philanthropy to impact funds. Could you explain more how you structure these different levers to maximize your impact and address specific needs? Ezgi: Great question! We leverage a full spectrum of solutions to match the needs ranging from philanthropy to impact investment to debt funding. For example, for community resilience and well-being, we use philanthropy through our Fund for Women. Whereas the L’Oréal Fund for Nature Regeneration (2020) and Circular Innovation Fund (2022) are impact investment funds, combining environmental impact with a financial return. This financial viability enables them to scale their operations, focusing respectively on nature protection and circular innovation. Christophe: Exactly. And through these experiences, we’ve learned which tools work best for each challenge. There is no ‘one-size-fits-all’ solution. Our transformation needs a whole range of financial tools, and we use them where they can make the biggest difference. For example, we launched the Solstice Fund. It is a specific fund to help our suppliers invest in reducing their carbon footprint, so we can move forward together. And now, we are picking up the pace even more. And speaking of acceleration, Ezgi is the best person to talk about our latest initiative. Ezgi: We launched a flagship program earlier this year, called L’AcceleratOR. Emma: “L’AcceleratOR”? Thomas: That sounds exciting. But what is it, exactly? Ezgi: It is a sustainable innovation accelerator program endowed with 100M€ over the next 5 years. L’AcceleratOR aims to identify, pilot and scale the most innovative startups and SMEs anywhere in the world, who are creating next-generation, sustainable technologies that can help us solve the toughest challenges in beauty. We’ve had over 950 responses to our first call for applications. These companies address challenges across Climate, Nature and Circularity. And we have selected the top 13 most promising ones to take part in the first cohort of our program – we can’t wait to learn from them and with them! Emma: So that’s value creation for the environment… what about social and economic progress? Christophe: On that front, I would point you to a global study that was done on our economic and social footprint. The results are incredible. The study showed that, on average, L’Oréal supports 1.6 million jobs worldwide. This means that for every person working directly at L’Oréal, 16 other jobs are supported around the world. This creates an economic impact of more than 223 billion US dollars. This is what we mean by creating real, tangible value. And that is precisely the beauty of ‘dual excellence’. It shows our commitment to delivering both financial performance and positive impact for society, hand in hand. Ezgi: We are creating value inside AND outside of L’Oréal, across environmental, social and economic dimensions. That’s how, together, we create the beauty that moves the world. Consumers Clients & distributors Communities Employees Suppliers Government & local authorities Scientific communities & startups Shareholders Consumers Clients & distributors Communities Employees Suppliers Government & local authorities Scientific communities & startups Shareholders test Consumers We offer each and every person the best of beauty in terms of quality, efficacy, safety, sincerity and responsibility. >7 billion products distributed globally 44,000+ human safety evaluations conducted on formulas and raw materials 70+ cosmetic companies including L’Oréal are now part of EcoBeautyScore 50 countries took part in The Refill Movement campaign Clients & distributors We work together to make beauty more inclusive and enable consumers to make more sustainable beauty choices. Partnerships including with Carrefour in France and JD. com in China to decarbonise beauty and encourage sustainable consumption Communities We act to champion the cause of women and to strengthen the communities with which we engage, while protecting the beauty of the planet by fighting climate change, respecting biodiversity and preserving natural resources. >5 m people supported through our brands’ social engagement programmes 25,000 professional opportunities created for youth 5 new spaces opened by the Fondation L’Oréal's Beauty for a Better Life programme in France, Italy, Spain, and Malaysia, allowing people in precarious situations to benefit from free beauty and well-being treatments Employees We provide the best working conditions, training and social protection, fostering inclusivity to ensure we are as diverse as the people we serve. €120 m invested in training 65,000+ employees upskilled in generative AI 45,000 employees are L’Oreal shareholders Suppliers We nurture lasting partnerships with our suppliers, based on mutual trust and collaboration, and support them in their sustainable transformation. 115,000 beneficiaries of our Inclusive Sourcing Programme >50% of our strategic suppliers now have SBTi -approved climate objectives €13 m allocated from the Solstice fund for decarbonisation projects Government & local authorities As a corporate citizen, we contribute to the social and economic development of the countries where we operate.3.3 billion euros in tax and duties paid to governments and local authorities Scientific communities & startups We lead the future of beauty by leveraging the best of science and technology through open innovation, increasingly inspired by nature. 725 patents filed and 140 scientific papers published 244 research fellowships awarded via L’Oréal-UNESCO For Women in Science programmes 13 First 13 startups and SMEs joined “L'AcceleratOR”, our sustainable innovation programme Shareholders We act to create value for all our shareholders by sustaining a robust business model and a stable governance. 10.6% total shareholder return (over ten years) A new lens on L’Oréal’s economic value L’Oréal has, for the first time, mapped its full socio-economic impact across 21 strategic countries and at a global level. Conducted with independent firm Asterès using OECD-based modeling, this landmark analysis reveals the Group’s broad economic footprint — from job creation and fiscal contributions to supply chain stimulation. The findings are clear: L’Oréal is more than a global beauty leader. It is a catalyst for national economies, a job multiplier, and a long-term fiscal partner. From suppliers to science hubs, from retail to professional salons, our entire value chain supports prosperity well beyond our walls. This data transforms beauty from perception to measurable value. 1.6 m jobs supported worldwide 1 L’Oréal job generates 16 globally (job ‘multiplier’ effect)194 billion euros in business output generated globally Economic Impact Results by Country Country Jobs Supported Job Multiplier Turnover generated (€) Public Revenues (€) USA 154,454 1 =37.7 billion5.4 billion China 334,214 1 =26.7 billion2.8 billion Brazil 43,300 1 =3.3 billion 540 m India 90,500 1 ~2.4 billion 175 m Poland 17,311 1 =1.9 billion 189 m Indonesia 26,884 1 ~1.2 billion 113 m Related articles Financial performance Environmental & social highlights Transformation

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