Our Social And Environmental Performance: External Recognitions

L’Oréal has always considered social and financial reporting as a strategic tool to monitor its progress in the field of sustainability. Reporting is not perceived as a tick-box exercise but rather an indispensable working instrument which guides our internal transformation and that of our stakeholders.

Every year, we communicate transparently, providing data on our corporate social and environmental responsibility strategy, challenges and results in several reports (Universal Registration Document, the Group’s Annual Report, etc.). L’Oréal’s social and environmental performance and its reporting via robust, reliable indicators verified by statutory auditors, have enabled the Group to be recognized by the most demanding global organizations in this area.

Triple A List stamp 2022 200x200
In 2021, L’Oréal achieved an A score, the highest possible rating, for all three environmental themes assessed by CDP: tackling climate change, managing water sustainably and acting to protect forests. This global non-profit organization encourages businesses to disclose their environmental data and assesses their performance and efforts to pursue transparency. L’Oréal is the only company to have received a triple A for 6 years running.

In 2021, L’Oréal came 1st in all categories of Vigeo Eiris’ ranking, an international extra-financial rating agency that looks at companies’ governance, and their social and environmental performance. This recognition allows L’Oréal to be included in the CAC40 ESG Index.

In 2021, for the 7th year in a row, L’Oréal was identified as being among the most highly engaged participants in the United Nations Global Compact. The UN Global Compact is a call to companies to align their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption, and to take action in support of UN goals and issues embodied in the Sustainable Development Goals.

In 2021, L’Oréal was rated AAA (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment. MSCI, a non-financial agency, provides in-depth research, ratings and analysis of the environmental, social and governance-related business practices of thousands of companies worldwide.

In November 2021, L’Oréal received an ESG Profile Score of 77 out of 100, one of the highest globally. Combined with a strong Preparedness Score (+8), the company’s overall ESG Evaluation Score reached 85. Our ESG Evaluation reflects our ability to deliver a strong ESG performance thanks to our leadership’s commitment to a comprehensive and ambitious sustainability strategy.

In 2021, L’Oréal was recognized for its ethical excellence by the Ethisphere Institute for the 12th year running.

L'Oréal was recognized in Bloomberg’s 2021 Gender-Equality Index (GEI) for the 4th year in a row. This recognition underlines the Group’s long-term commitments to Diversity & Inclusion and to empower people of all genders.

In 2021, Equileap recognized the Group’s commitments towards diversity and inclusion, in particular gender equity. L’Oréal was ranked fourth in the international ranking, and first in France.

In 2021, for the 10th consecutive year, ISS ESG Corporate Rating, one of the world’s leading ratings agencies for sustainable investments, awarded L’Oréal a Prime status. According to ISS ESG, companies are categorized as “Prime” if they achieve/exceed the minimum sustainability performance requirements (Prime threshold) defined for a specific industry (absolute best-in-class approach) in the ISS ESG Corporate Rating. “Prime” companies are those that rank among the global sustainability leaders in their industry.

In November 2021, L’Oréal was evaluated as a Low-Risk company with an ESG Risk Rating Score of 16.9. The company is evaluated at low risk of experiencing material financial impacts from ESG factors, due to its medium exposure and strong management of material ESG issues.

In September 2021, L'Oréal was, once again, one of the world’s top 100 companies according to the 2021 Refinitiv Diversity & Inclusion Index. Refinitiv Diversity & Inclusion Index (formerly known as the Thomson Reuters D&I Index) ranks the top 100 organizations globally on a wide-ranging set of Diversity & Inclusion metrics among the over 9,000 international organizations it assesses.

L'Oréal came 5th in the Universum 2021 global rankings of business students’ favorite companies, moving up 5 places from 2020. The Group is the highest-ranking EU multinational company in this prestigious ranking.

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