2024 universal registration document

4. Sustainability Report

4.16 Issuance of a sustainability-linked bond

On 22 March 2022, the Group issued its first sustainability-linked bond (SLB). This fixed-rate issue, which has a maturity of four years and three months and amounts to €1,250 million, is accompanied by a coupon of 0.875% per year. It is aligned with the Group's Sustainability-Linked Financing Framework, which covers all financial instruments with characteristics that are linked to the sustainability objectives. The bond was established with reference to the 2020 SLB Principles as defined by the International Capital Market Association. The Group's Sustainability-Linked Financing Framework was independently assessed by Sustainalytics, an organisation that evaluates the sustainability of listed companies, which noted contributions to three of the United Nations Sustainable Development Goals. The financial characteristics of the SLB are linked to three performance objectives that are related to sustainability. These objectives are presented below along with their 2024 level of achievement in relation to the objectives for 2025.

Performance objectives	2024 outcomes	2025 target
All L'Oréal operated sites will achieve 100% renewable energy⁽¹⁾ (formerly known as "carbon neutral") by 31 December 2025.	All L'Oréal operated sites will achieve 100% renewable energy⁽¹⁾ (formerly known as "carbon neutral") by 31 December 2025. 2024 outcomes 96%	All L'Oréal operated sites will achieve 100% renewable energy⁽¹⁾ (formerly known as "carbon neutral") by 31 December 2025. 2025 target 100%
Greenhouse gas emissions (Scopes 1, 2 & 3) on a "cradle-to-shelf" scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year⁽²⁾.	Greenhouse gas emissions (Scopes 1, 2 & 3) on a "cradle-to-shelf" scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year⁽²⁾. 2024 outcomes 436g of CO₂ per product sold	Greenhouse gas emissions (Scopes 1, 2 & 3) on a "cradle-to-shelf" scope will be reduced by 14% per product sold by 2025 compared to the 2021 base year⁽²⁾. 2025 target -14%
By 2025, 50% of the Group's plastic packaging will be recycled or biobased.	By 2025, 50% of the Group's plastic packaging will be recycled or biobased. 2024 outcomes 37%	By 2025, 50% of the Group's plastic packaging will be recycled or biobased. 2025 target 50%

A site must meet the following criteria: Direct CO₂ (Scope 1) = 0, with the specific exception of the gas used for catering, the fuel oil used for sprinkler tests, the fuel oil (or diesel) used temporarily by backup units, fossil energy consumed during maintenance of on-site renewable facilities and cooling gas leaks if they are lower than 130 tonnes CO₂ eq/year; and indirect market-based CO₂ (Scope 2) = 0.
The CO₂ emissions by product sold in this cradle-to-shelf scope exclude emissions from Aēsop sites and products.

4.17 Glossary of acronyms and initialisms used in the Sustainability Report

ACA: Conditional share grant
ASD: Action for Sustainable Derivatives (sustainable palm oil initiative)
BAC: Biobased, derived from abundant materials or from circular processes
B4B+: Business for Positive Biodiversity
BRGM: Bureau de recherches géologiques et minières (French geological and mining research bureau)
CAFFCI: China Association of Fragrance Flavour and Cosmetic Industries
CAPEX: Capital expenditure
CDP: Carbon Disclosure Project, a non-profit organisation that provides an environmental reporting framework for the private and public sectors
CEMS: Community of European Management Schools and International Companies
CFC: Chlorofluorocarbons
CHERIE: Checklist for the harmonisation of fire and explosion risk assessments
CIF: Circular Innovation Fund
CIRAIG: International reference centre for the life cycle of products, processes and services
NMVOC: Non-Methane Volatile Organic Compounds
CPGS: Corporate Procurement Guideline for Suppliers
CRHR: Human Resources and Remuneration Committee
CSRD: Corporate Sustainability Reporting Directive
CSDDD: Corporate Sustainability Due Diligence Directive
CTPA: Cosmetic, Toiletry & Perfumery Association
COD: Chemical Oxygen Demand
DNSH: Do No Significant Harm
EEA: European Economic Area
EDGE: Economic Dividends for Gender Equality
EHS: Environment, Health and Safety
E-PRTR: European Pollutant Release and Transfer Register
ERGO: EndocRine Guideline Optimisation
ESG: Environmental, Social and Governance
ESRS: European Sustainability Reporting Standards
EF: Emission factors
FEATS: French Endocrine-related Adverse effects Testing Strategy
FEBEA: Fédération des Entreprises de la Beauté (French federation of beauty companies)
FLA: Fair Labor Association
FPIC: Free, Prior a
nd Informed Consent
FSC: Forest Stewardship Council
GEEIS: Gender Equality European International Standard
GHG: Greenhouse gases
GHAP: Global Hazard Analysis Process
IPCC: Intergovernmental Panel on Climate Change
GRAAL: Global Reporting And Analysis for L'Oréal (internal reporting tool)
GW: Goodwill
HESI: Health and Environmental Sciences Institute
HDI: The Sustainable Trade Initiative
IFRS 16: International Financial Reporting Standard 16, Leases