2024 universal registration document

4. Sustainability Report

4.1.3.2 Importance of continuous stakeholder dialogue

As part of a continuous improvement approach, L'Oréal places great emphasis on dialogue with its stakeholders and, wherever possible, strives to incorporate their expectations, interests and points of view into its strategy.

To that end, the Group has developed specific methods of interaction, designed to be both efficient and adapted to each player. This dialogue has intensified over the years. Since 2013, with the Sharing Beauty With All sustainability programme, stakeholders have played a key role in helping to define and follow up on the Group's commitments. In 2019, seven groups of internal experts contributed to creating the L'Oréal for the Future programme for 2030. They carried out independent studies and worked with external partners and civil society to set goals aimed at reducing L'Oréal's impacts while amplifying the Group's positive contribution to its ecosystem as a whole.

In preparation for the implementation of the CSRD, L'Oréal updated its double materiality assessment, a strategic exercise conducted with its stakeholders. More than 45 external partners – investors, NGOs, distributor customers, industry bodies and suppliers – and numerous internal experts took part in targeted interviews. These discussions were an opportunity to confirm findings, provide new perspectives and identify areas for improvement, which were then incorporated into the final analysis.

For L'Oréal, maintaining regular, constructive relationships with its stakeholders is essential. It feeds into L’Oréal’s strategy, keeps its efforts focused and contributes to creating shared value, which benefits both the company and its ecosystem.

Stakeholder Purpose of stakeholder dialogue Examples of initiatives and awards in 2024
Consumers Consumers

Purpose of stakeholder dialogue
  • Staying attentive to current and future needs and concerns, expectations and changing consumption patterns;
  • Informing consumers of sustainable development improvements made in the Group's product and service portfolios;
  • Encouraging consumers to adopt more responsible consumption habits (e.g., waste sorting instructions, refills, no-rinse products).
 Consumers

Examples of initiatives and awards in 2024
  • Participation in the EcoBeautyScore(1) Association to develop a shared scientific methodology to provide consumers with clear, transparent and comparable information on products’ environmental impact;
  • Launch of communication and promotion campaigns for refillable products across the Group's brands in a host of countries, particularly in the Perfume, Skincare, Body Care and Make-up categories;
  • Quantitative studies, particularly in the United States, Brazil and China, to assess consumer reactions to transparent labelling of the environmental performance of their products.
Customers (distributors) Customers (distributors)

Purpose of stakeholder dialogue
  • Ensuring that products and services are properly marketed by participating in initiatives for more sustainable products and services;
  • Maintaining sincere trust-based relationships;
  • Sharing industry best practices in sustainable development;
  • Launching business transformation projects to help consumers make responsible consumption choices.
 Customers (distributors)

Examples of initiatives and awards in 2024

Continued collaboration and development of sustainable development partnerships with its distributor customers (Europe, North and South America, North Asia and SAPMENA) as part of green joint business plans based on the following priorities: engaging consumers in more sustainable modes of consumption (e.g., joint actions on refills and refillable products), reducing waste and unsold products, eco-design of point-of-sale advertising and decarbonising our joint activities in product transportation and logistics.
Employees Employees

Purpose of stakeholder dialogue
  • Ensuring that employees work in a safe and caring environment;
  • Being attentive to each individual’s needs to develop personalised career paths;
  • Strengthening the sense of belonging by building on the employer brand and empowering employees to play a key role in the Group's transformation.
 Employees

Examples of initiatives and awards in 2024
  • More than 35,000 people logged on to Ethics Day sessions and more than 5,000 questions were submitted worldwide;
  • 90% of the employees invited took part in the annual "Pulse" engagement survey;
  • L'Oréal was recognised for the 15th time as one of the world's most ethical companies by the Ethisphere Institute.