The Operations Department is responsible for the EHS metrics for Group sites. These are reported monthly by each entity in the GRAAL consolidated reporting tool for safety data, which is available in each country where a L'Oréal subsidiary operates. Health and safety reporting includes manufacturing facilities, internal distribution centres, research centres, administrative sites with more than 50 employees, as well as all stores and sales teams.
This reporting system allows all data on work-related accidents within the Group to be collected. Data on work-related accidents are categorised, from fatal accidents (also including deaths due to occupational illness) to first aid. L'Oréal includes all accidents, from fatalities to accidents requiring medical treatment (excluding commuting accidents and first response care) in its frequency and severity rate for accidents at work (eTIR) and in its total number of accidents under the CSRD.
The ISO 45001 certifications covering 97% of manufacturing facilities and the corpus of rules (EHS manual and all associated procedures) applicable to the Group's chief executive officers ensure that 100% of employees are covered by the Health and Safety management system based on legal requirements and/or recognised standards or guidelines.
Gender pay gap
The components of remuneration taken into account are the annualised base salary at 31 December, as well as the variable remuneration received during a given year (bonuses, commission and profit sharing) and any long-term incentive plans (LTIPs) awarded during that year, as calculated at fair value. One-off bonuses, fixed remuneration, shift premiums, car allocations and overtime are not included. For expatriate employees, L'Oréal takes into account the "home country benchmark salary" and the "home country benchmark bonus", not the remuneration in the host country.
Foreign currencies are converted into euros using the exchange rate at 31 December as set by the Group.
The contracts taken into account in the calculations include apprentices and interns if they are defined as employees under standards applicable to the country. Maternity and parental leave as well as long-term sick leave are excluded from the calculation in 2024 but will be included in 2025.
Due to the high proportion of beauty advisors in the Group's workforce (almost 25%), L'Oréal reports pay gaps for two scopes: one excluding beauty advisors and one covering beauty advisors only. The beauty advisor population, 90% of whom are women, has the lowest pay levels in the Group.
Remuneration ratio
The components of remuneration taken into account are the annualised base salary at 31 December, as well as the variable remuneration received during a given year (bonuses, commission and profit sharing) and any long-term incentive plans (LTIPs) awarded during that year, as calculated at fair value. One-off bonuses, fixed remuneration, shift premiums, car allocations and overtime are not included. For expatriate employees, L'Oréal takes into account the "home country benchmark salary" and the "home country benchmark bonus", not the remuneration in the host country.
Foreign currencies are converted into euros using the exchange rate at 31 December as set by the Group.
Expatriates are associated with their home region rather than their host region.
A pay gap ratio by zone is also published, combining emerging and mature countries with a similar cost of living into homogeneous groups.
The Ethics, Risks and Compliance Department is responsible for social metrics relating to (i) reported incidents and complaints of discrimination, including harassment, and (ii) severe human rights incidents connected to the Company's workforce. It works with the Legal Department to identify the fines, penalties and compensation for damages as a result of these incidents and complaints.
Number of incidents/complaints: calculations are based on proven reports identified using established procedures (in particular the Speak Up whistleblowing platform).
Fines, penalties and compensation for damages as a result of incidents: L'Oréal includes fines, penalties and compensation for damages levied by a judicial or administrative authority. Any damages awarded as part of individual settlements are not taken into account insofar as they are strictly confidential and relate to disputed allegations (a dispute must exist for a settlement to be reached).
Gender equality ratio: this ratio is calculated based on the list of members of the Board of Directors, excluding Directors representing the employees.
