As a general rule, the reporting scope of the Sustainability Report is based on that of the financial statements, subject to specific exceptions described below:
L'Oréal reports sustainability data at Group level for all entities over which it has operational control, for applicable ESRS (E1 and E2).
Until an entity has been fully integrated into L'Oréal's IT systems, consolidation of its data is done manually and can therefore take longer. For these entities, if the rules on estimates cannot be applied and the cost of reporting is deemed unreasonable in relation to the size of the company, the entity may ask to be exempted from non-financial reporting. This exemption may be granted on a case-by-case basis and be renewed annually. The table below provides details on the exclusion of three entities. The entities concerned by exemptions vary according to the metric categories. Action plans are implemented to ensure data availability and reliability.
| Company (region) | Acquisition date | % employees | % units sold | Comments |
|---|---|---|---|---|
| Gjosa (Switzerland) | Gjosa (Switzerland) Acquisition date January 2024 |
Gjosa (Switzerland) % employees 0.01% |
Gjosa (Switzerland) % units sold - |
Gjosa (Switzerland) Comments - |
| Zhejiang Yesskin (China) | Zhejiang Yesskin (China) Acquisition date November 2024 |
Zhejiang Yesskin (China) % employees - |
Zhejiang Yesskin (China) % units sold - |
Zhejiang Yesskin (China) Comments 70% interest not consolidated in the financial statements in 2024 |
| Aēsop (Worldwide) | Aēsop (Worldwide) Acquisition date September 2023 |
Aēsop (Worldwide) % employees 4.3% |
Aēsop (Worldwide) % units sold 0.3% |
Aēsop (Worldwide) Comments - |
Entities or sites sold or closed during the financial year are reported in full up to the date they exit the scope.
The list of subsidiaries that do not report certain metrics and for which estimates are made, may differ depending on the nature of the metrics in question. The scope of coverage varies according to the category of metric.
Details of data coverage are given in the tables for each topic.
Sustainability information has been prepared in connection with the first-time application of article L. 233-28-4 of the French Commercial Code (Code de commerce). This first-time application is characterised by uncertainties as to the interpretation of the regulations and standards, a lack of reliable comparative data and benchmarks, and an absence of established frameworks. It required the Group to make estimates and use certain assumptions that may impact the sustainability information presented. These estimates and assumptions mainly concern the measurement of amounts relating to the value chain (Scope 3). The estimates used by L'Oréal are based on the information available at the date of preparation of the Sustainability Report as detailed in the methodological notes.
The following information could not be estimated:
Substances of concern (E2-5): the complexity of European regulations on substance classification and the absence of sector-specific recommendations have made it difficult to collect the relevant data in practice. L'Oréal will work to collect these data in light of the forthcoming clarifications, with a view to publishing them in the future.
Investments associated with the Scope 3 climate transition plan (E1-3): the Group's climate and environmental commitments are embedded into its strategic plan and its budget plans by each Group entity. This integrated approach means that material investments associated with the climate transition plan cannot be published in isolation, especially as L'Oréal's low eligibility for the Taxonomy Regulation does not reflect the scale of the Group's transformation in terms of climate and environmental issues. L'Oréal will work on estimating these investments with a view to publishing them in the future.
The information provided by L'Oréal on material impacts, risks and opportunities does not include data relating to Aēsop, which joined the Group's financial consolidation scope at the beginning of September 2023 and represents approximately 5% of its consolidated workforce in 2024.
The absence of a quantified target in the "Outcomes" part of a sub-section of this report indicates that L'Oréal does not define any such target for this topic. The Company reserves the right to define targets for the topics concerned at a later date.
