2024 universal registration document

4.10.2 Quality and safety policy

Personal safety of consumers is an absolute priority for L'Oréal. Assessing safety is central to any new product development process and a prerequisite before any new product can be brought to market. The Group’s quality and safety policy is built around four key principles:

• meeting consumer expectations;
• complying with legal obligations and safety requirements;
• maintaining and regularly reviewing assessment standards; and
• ensuring product quality and conformity across the supply chain.

Under the responsibility of the Deputy Chief Executive Officer in charge of Research, Innovation and Technology, the Worldwide Safety Evaluation Department focuses on evaluating the human safety of raw materials and finished products. It establishes the toxicological profile of ingredients and verifies the tolerance of formulas before they are brought to market to ensure that they are completely safe. These safety standards are applied consistently worldwide to ensure the same level of quality across the globe.

L'Oréal also anticipates regulatory changes by assessing the environmental profiles of raw materials. New substances that could have an adverse environmental impact are excluded from the catalogue.

In addition, an international cosmetovigilance network is in place to monitor any adverse effects that arise once a product is on the market and, if necessary, to take the appropriate corrective measures. Staffed by health experts at Group, R&I and science department levels in 100 or so countries, this network is an integrated surveillance system which collects, records, evaluates and processes spontaneous reports of adverse health events observed in relation to products on the market. Reports can be submitted by external stakeholders, particularly consumers. By analysing this health data using scientific methods, L'Oréal is able to:

• confirm that the products marketed are appropriately tolerated;
• if necessary, propose appropriate corrective measures, such as improving tolerance through reformulation, removing or substituting certain ingredients,
• identify certain misuses;
• improve labelling to ensure better use of products (e.g., recommendations for use).

This market surveillance system also meets the regulatory requirements in force in certain countries through dialogue with the competent authorities.

In response to concerns expressed in civil society regarding certain substances and their effects on health and the environment, L'Oréal has adopted a three-pronged approach:

• continuous monitoring of new scientific data;
• close cooperation with the relevant authorities; and
• strict precautions, with ingredients being substituted in the event of a proven or strongly suspected risk.

To give comments or warnings about products, consumers can contact L'Oréal's consumer service team in various ways (mainly by phone, social media or e-mail). The address of each brand's consumer service team is displayed on the products. Contacts are managed at country level based on multi-divisional governance and segmentation by brand. Every contact is treated with care: the consumer service team records the reason for the contact request and seeks to resolve the problem using a decision tree. The team is required to keep the consumer informed of the progress of their case. This information is passed on to the brand managers in the Group's divisions through Voix du Consommateur consumer feedback reports. Requests to analyse certain products are forwarded to the quality coordinator and then to the internal unit concerned. The consumer systematically receives a response from the consumer service team summarising the exchange and the next steps.

4.10.3 Action plan in place

L'Oréal has implemented an ambitious action plan to ensure that its production is safe, based on strict standards and thorough monitoring. Quality requirements cover formula, packaging and process design, as well as compliance during production and distribution. All production facilities are ISO 9001 certified and apply ISO 22716 compliant Good Manufacturing Practices.

These standards also apply to subcontractors under a specific quality charter. Regular and rigorous audits are conducted to improve the Group’s visibility over production safety throughout the value chain.