September 2025 L'Oréal Sustainability Report Review

March 2, 2024

About L'Oréal

France

L'Oréal Sustainability Rating is 3.5

This means L'Oréal are below average compared to other companies in the Asset Management & Custody Activities.

Industry positioning

L'Oréal

Industry averange

Overall

Environmental

Social

Governance

L'Oréal positioning within the Asset Management & Custody Activities

L'Oréal Sustainability Rating Breakdown:

L'Oréal Overall Sustainability Rating is 3.5 out of 5.0

L'Oréal Environmental Rating is 3.9 out of 5.0

L'Oréal has an environmental rating score of 3.9, focusing in the following areas:

Climate risk (2.8): This score reflects L'Oréal understanding and management of climate-related risks that could impact their operations. A score of 2.8 suggests a reasonable awareness and management of these risks.
Greenhouse Gas (GHG) Emissions (3.1): This score measures the emissions of greenhouse gases produced by L'Oréal and their efforts to reduce these emissions. A score of 3.1 indicates a strong effort is being put toward reducing emissions of greenhouse gases.
Energy Management (4.4): This score demonstrates the effective management of energy consumption. s. A score of 4.4 indicates an excellent effort towards using sustainable energy sources.
Land Use and Biodiversity (4.2): This score indicates how L'Oréal considers the impact of its operations on land use and biodiversity. A score of 4.2 suggests an excellent level of commitment to minimising negative impacts.
Materials Sourcing (2.7): Reflecting the sustainability and ethical considerations in sourcing materials for their products, a score of 2.7 suggests a reasonable effort in responsible sourcing of materials.
Pollution Prevention and Management (4.7): This score represents the policies and impact of L'Oréal that aim to prevent and minimise pollution. L'Oréal has an excellent pollution prevention and management score.
Waste Hazards and Management (4): A score of 4 assesses how L'Oréal handles waste and hazardous materials. This indicates a strong waste management strategies and minimization of hazardous waste are in practice.
Water Management (3.8): This score evaluates water usage and conservation efforts. A score of 3.8 suggests L'Oréal makes a strong effort in water management.
Environmental Certifications (4.8): A score of 4.8 reflects an excellent commitment to obtaining environmental certifications, demonstrating adherence to recognized standards and practices in environmental stewardship.
Environmental Opportunities (4.2): A score of 4.2 indicates that L'Oréal is excellent at identifying and taking advantage of opportunities to benefit the environment, potentially through innovative practices or sustainable growth strategies.
Environmental Compliance (4.2): A score of 4.2 rates the level of compliance with environmental regulations and standards, indicating strong adherence to legal and ethical norms in environmental matters.

L'Oréal Social Rating is 3.2 out of 5.0

L'Oréal has an overall social score of 3.2, which can be broken down into various components, reflecting the company's performance in relation to social challenges:

Social-related Certifications (4.4): This score indicates an excellent level of certifications related to social issues.
Community Engagement (3.5): This score assesses a company’s involvement in and contribution to local communities. A score of 3.5 indicates L'Oréal have a good commitment to community engagement.
Corporate Philanthropy (3.7): A score of 3.7 suggests L'Oréal make a generous contributions to philanthropic causes, demonstrating their measure of commitment to social responsibility through charitable endeavours.
Products and Services (1.2): This score reflects the social impact of products and services provided by L'Oréal, indicating that they are designed and delivered with a weak consideration for social responsibility.
Diversity and Inclusion (4.4): This category indicates an excellent commitment level of L'Oréal to creating an inclusive and diverse workplace and culture.
Health and Safety (3.6): The health and safety score reflects a strong robustness of the measures in place at L'Oréal to protect the well-being of its employees and customers.
Human Rights Abuses (3.5): This score reflects some risk of L'Oréal involvement in or exposure to human rights abuses in company operations.
Labour Relations (2.8): This score reflects the company's relationship with its workforce, including aspects like union relations and employee treatment. A score of 2.8 indicates a reasonable level of performance in this area.
Cyber Risk (2.4): This score assesses exposure to and management of cyber risks that may disrupt business operations. A score of 2.4 suggests a reasonable preparedness against cyber threats.
Product Quality Management (2.1): This score reflects the quality and safety of current and future products and services provided by L'Oréal. A 2.1 indicates a reasonable standard in managing product quality.
Supplier Engagement (4): This score assesses how L'Oréal engages with its suppliers on social issues. A score of 4 suggests a strong level of engagement and collaboration with suppliers in managing social risks.

L'Oréal Governance Rating is 3.2 out of 5.0

L'Oréal has an overall governance score of 3.2, which encompasses various aspects of its corporate governance practices and structures:

Business Resilience and Sustainability (4.5): This score reflects the capacity of L'Oréal to sustain its operations over the long term and adapt to business challenges. 4.5 suggests an excellent strategies for resilience and sustainability in the business model of L'Oréal.
Corporate Compliance Behaviours (1.7): This score assesses adherence to laws, regulations, and internal policies. 1.7 shows a weak L'Oréal Corporate Compliance Behaviours.
Governance-related Certifications (4.2): A score of 4.2 in this category reflects an excellent level of accountability and adherence to governance-related certifications.
Board Accountability (2.3): This moderate score measures the accountability shown by the board of directors at L'Oréal relating to responsible governance, oversight of operations, and commitment to stakeholder interests.
Business Ethics (2.7): This score evaluates ethical conduct in business operations. A score of 2.7 indicates a decent standard of ethics.
Business Transparency (3.6): This indicates the level of transparency in the business operations and disclosures of L'Oréal, suggesting a good communication with stakeholders and clear reporting of activities and financial information.

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