Mobilisation of Divisions, Zones and support functions
The comprehensive transformation plan affects all Divisions, Zones, functions and business lines. The Chief Executive Officer relies on the commitment of each Executive Committee member in their area of responsibility in ensuring that the Group's strategic sustainability orientations are implemented.
On the Executive Committee, the Chief Corporate Responsibility Officer oversees the development of the sustainability strategy, ensures due implementation of the L’Oréal for the Future programme, and monitors the consistency of the strategy as applied by the Group's activities. She guides various internal committees on sustainability issues in drawing up roadmaps for the different entities (Operations, Research & Innovation, divisions, zones, countries, etc.). The experts responsible for administering the programme participate actively in these committees, setting annual objectives, reviewing assumptions and trends, and overseeing how they are implemented across the value chain.
Action plans on sustainability matters are regularly finetuned. A network of dedicated leaders reporting to the Executive Committee oversees the implementation of the L'Oréal for the Future programme in each Division, Zone, function and business line.
Twice a year, the Chief Corporate Responsibility Officer meets with Executive Committee members as part of the L'Oréal for the Future Executive Committee in order to set the programme's strategic orientations.
A strategic transformation driven by all
In order for the transformation strategy to succeed, sustainability is being driven by all of L'Oréal's teams. To that end, all L’Oréal employees undertake dedicated learning programmes. They have access to a comprehensive range of online courses as part of the L'Oréal for the Future programme, made available in 15 languages.
Remuneration structures have been revised at the highest level. The variable portion of the Chief Executive Officer's annual remuneration incorporates quantitative and qualitative sustainability targets. Consistent with L'Oréal's strategy, which closely combines economic and social performance, the longterm 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 (see section 2.4). 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.
This chart illustrates the governance structure overseeing sustainability efforts within the Group:
- Board of Directors Oversees strategic sustainability matters via specialised committees.
- Chief Executive Officer Reports to the Board of Directors.
- Executive Committee Includes the Chief Corporate Responsibility Officer.
- Chief Corporate Responsibility Officer Leads sustainability strategy execution.
Coordinates with both:
- Internal Sustainability Committees
Including the L’Oréal for the Future Committee (Executive Committee level).
- Sustainability Leaders Network
Structured across:
- Zones → Countries
- Divisions → Brands
- Business Functions
- Internal Sustainability Committees