The Group strictly complies with regulations and laws relating to environmental protection, and does not expect current regulations to have any significant impact on the Group’s operations, financial position, earnings or assets.
For many years, L’Oréal has shown a strong commitment to environmental, social and societal responsibility. L’Oréal placed sustainability at the heart of its strategy, notably the launch in 2013 of the Sharing Beauty With All programme with 2020 targets focused on sustainable production, sustainable innovation, sustainable consumption and shared growth.
In June 2020, L’Oréal initiated the second phase of its commitments to sustainable development, under the umbrella of the L’Oréal for the Future programme, with a new set of particularly ambitious and concrete targets for 2030, in order to cover all the impacts associated with its value chain: its production and distribution sites as well as its supply chains and the impacts associated with the use of products by consumers. The sustainable development objectives are detailed in the sustainability report.
These commitments made by the Group do not call into question the value of the assets or the useful lives of non-financial assets, in particular:
Furthermore, as mentioned in note 7.3, the scenarios considered in order to determine the potential impacts of climate change on the Group's assets and in particular on the assets of the Group's Cash Generating Units, did not highlight any significant impact likely to generate a risk of depreciation of these assets.
The Group’s L’Oréal for the Future programme rests on its financing, short- and long-term investment and remuneration strategies.
The credit lines indexed to the Group's sustainable development performance incorporate a borrowing cost adjustment mechanism.
The L’Oréal Groupe has a syndicated loan from 20 banks (€5 billion), which had not been used at the end of December 2024. This loan incorporates a mechanism whereby the margin is adjusted in line with the Group’s performance with regard to four ESG KPIs: climate, biodiversity, resources and social commitment.
The Group issued in 2022 a €3 billion bond, one tranche of which in an amount of €1,250 million is sustainability-linked (note 9.1).
The Group's available cash is mainly invested in SRI SICAV money-market funds (47% of all short-term investment in 2024) and term accounts (38% of all short-term investment in 2024 of which 90% in CSR STI) and in paid accounts (14% of investments in 2024).
The Group recorded a total of €246 million in non-current financial assets related to sustainable development activities, measured at fair value through equity (note 9.3).
Note that the Swiss environmental technology start-up Gjosa – which has developed innovative water-saving solutions and of which BOLD held 15% – was 100% acquired by L’Oréal in 2024.
