Information is assured by independent assurors (e.g., accounting or consulting firm) against recognized assurance standard (e.g., ISAE3000, AA1000AS, other national or industry-specific standard)

Is 'in accordance - core' with GRI Standards

Provides information on the company’s profile and context of operation

Analyze each segment of the value chain carefully, both upstream and downstream, when mapping risks, opportunities and impacts

Communicate policies and expectations to suppliers and other relevant business partners

Implement monitoring and assurance mechanisms (e.g. audits/screenings) for compliance within the company’s sphere of influence

Undertake awareness-raising, training and other types of capacity building with suppliers and other business partners

Other established or emerging best practices

In 2014, 52000 people accessed work through the Solidarity Sourcing Programme.

Place responsibility for execution of sustainability strategy in relevant corporate functions (procurement, government affairs, human resources, legal, etc) ensuring that no function is conflicting with company sustainability commitments and objectives

Align strategies, goals and incentive structures of all business units and subsidiaries with corporate sustainability strategy

Assign responsibility for corporate sustainability implementation to an individual or group within each business unit and subsidiary

Design corporate sustainability strategy to leverage synergies between and among issue areas and to deal adequately with trade-offs

Ensure that different corporate functions coordinate closely to maximize performance and avoid unintended negative impacts

Other established or emerging best practices

In 2014, L’Oréal was recognized for the fifth time by Ethisphere as one of the World’s Most Ethical Companies, and has been part of the United Nations Global Compact 100 stock index since its creation.

Commitment to comply with all applicable laws and respect internationally recognized human rights, wherever the company operates (e.g., the Universal Declaration of Human Rights, Guiding Principles on Human Rights) (BRE1 + ARE1)

Integrated or stand-alone statement of policy expressing commitment to respect and support human rights approved at the most senior level of the company (BRE 1 + BRE5 + ARE 1 + ARE 5)

Statement of policy stipulating human rights expectations of personnel, business partners and other parties directly linked to operations, products or services (BRE 1)

Statement of policy publicly available and communicated internally and externally to all personnel, business partners and other relevant parties (BRE 1 + BRE 5 + ARE 1 + ARE 5)

Other established or emerging best practices

In 2014, the Chairman and Chief Executive Officer signed, on behalf of L’Oréal, the Women’s Empowerment Principles, a UN Women and UN Global Compact initiative, which aims to promote gender equality and for the empowerment of women.

System to monitor the effectiveness of human rights policies and implementation with quantitative and qualitative metrics, including in the supply chain (BRE3 + ARE3)

Monitoring draws from internal and external feedback, including affected stakeholders

Leadership review of monitoring and improvement results

Process to deal with incidents the company has caused or contributed to for internal and external stakeholders (BRE 4 + ARE 4)

Grievance mechanisms that are legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning, and based on engagement and dialogue (BRE4 + ARE4)

Outcomes of integration of the human rights principles

Other established or emerging best practices

Within the scope of the legal due diligence reviews carried out prior to proposed acquisitions, the Group’s Legal Department includes an “Ethics and Human Rights questionnaire” prepared by the Office of the Chief Ethics Officer.

Process to ensure that internationally recognized human rights are respected

On-going due diligence process that includes an assessment of actual and potential human rights impacts (BRE 2 + BRE 3 + ARE 2 + ARE 3)

Internal awareness-raising and training on human rights for management and employees

Operational-level grievance mechanisms for those potentially impacted by the company’s activities (BRE 4 + ARE 4)

Allocation of responsibilities and accountability for addressing human rights impacts

Internal decision-making, budget and oversight for effective responses to human rights impacts

Processes to provide for or cooperate in the remediation of adverse human rights impacts that the company has caused or contributed to (BRE 3+ BRE 4 + ARE3 + ARE 4)

Process and programs in place to support human rights through: core business; strategic philanthropic/social investment; public policy engagement/advocacy; partnerships and/or other forms of collective action (BRE 6 + ARE 6)

Other established or emerging best practices

All framework agreements signed with suppliers/ subcontractors contain a societal clause providing for compliance with the Fundamental Conventions of the International Labour Organisation.

Reference to principles of relevant international labour standards (ILO Conventions) and other normative international instruments in company policies

Reflection on the relevance of the labour principles for the company

Written company policy to obey national labour law, respect principles of relevant international labour standards in worldwide company operations and engage in dialogue with representative organization of the workers (international, sectoral, national).

Inclusion of reference to the principles contained in the relevant international labour standards in contracts with suppliers and other relevant business partners

Specific commitments and Human Resources policies, in line with national development priorities or decent work priorities in the country of operation

Structural engagement with a global union, possibly via a Global Framework Agreement

Other established or emerging best practices

The L’Oréal Share & Care Programme aims to give the Group’s employees the best benefits in four areas: financial coverage for unexpected life events, health care system, family life and quality of life at work.

System to track and measure performance based on standardized performance metrics

Dialogues with the representative organization of workers to regularly review progress made and jointly identify priorities for the future

Audits or other steps to monitor and improve the working conditions of companies in the supply chain, in line with principles of international labour standards

Process to positively engage with the suppliers to address the challenges (i.e., partnership approach instead of corrective approach) through schemes to improve workplace practices

Outcomes of integration of the Labour principles

Other established or emerging best practices

Social audits are carried out on behalf of L’Oréal by independent external service providers. The initial audits are financed by L’Oréal and the followup audits are paid by the suppliers.

Risk and impact assessments in the area of labour

Dialogue mechanism with trade unions to regularly discuss and review company progress in addressing labour standards

Allocation of responsibilities and accountability within the organization

Internal awareness-raising and training on the labour principles for management and employees

Active engagement with suppliers to address labour-related challenges

Grievance mechanisms, communication channels and other procedures (e.g., whistleblower mechanisms) available for workers to report concerns, make suggestions or seek advice, designed and operated in line with the representative organization of workers

Other established or emerging best practices

In 2004, L’Oréal was a founding member of the first Diversity Charter in France. The Group has now signed nine charters in all (Germany, Austria, Belgium, Italy, Poland, Spain, Finland, France and Sweden), five of which were created on its initiative.

Reference to relevant international conventions and other international instruments (e.g. Rio Declaration on Environment and Development)

Reflection on the relevance of environmental stewardship for the company

Written company policy on environmental stewardship

Inclusion of minimum environmental standards in contracts with suppliers and other relevant business partners

Specific commitments and goals for specified years

Other established or emerging best practices

Because deforestation is a major cause of greenhouse gas emissions, L’Oréal made a public commitment in 2014 to a “Zero deforestation” policy with the aim that none of its products will be associated with deforestation by 2020 at the latest.

System to track and measure performance based on standardized performance metrics

Leadership review of monitoring and improvement results

Process to deal with incidents

Audits or other steps to monitor and improve the environmental performance of companies in the supply chain

Outcomes of integration of the environmental principles

Other established or emerging best practices

Between 2008 and the beginning of 2015 4070 tonnes of packaging materials were saved due to action reducing them at source.

Environmental risk and impact assessments

Assessments of lifecycle impact of products, ensuring environmentally sound management policies

Allocation of responsibilities and accountability within the organisation

Internal awareness-raising and training on environmental stewardship for management and employees

Grievance mechanisms, communication channels and other procedures (e.g. whistleblower mechanisms) for reporting concerns or seeking advice regarding environmental impacts

Other established or emerging best practices

The remuneration of factory managers and distribution centre managers is partly linked to their performances in the field of health, safety and the environment.

Publicly stated formal policy of zero-tolerance of corruption (D1)

Commitment to be in compliance with all relevant anti-corruption laws, including the implementation of procedures to know the law and monitor changes (B2)

Statement of support for international and regional legal frameworks, such as the UN Convention against Corruption (D2)

Detailed policies for high-risk areas of corruption (D4)

Policy on anti-corruption regarding business partners (D5)

Other established or emerging best practices

The Chief Ethics Officer meets systematically with each new Country Manager in order to raise their awareness in particular on corruption prevention.

Leadership review of monitoring and improvement results (D12)

Process to deal with incidents (D13)

Public legal cases regarding corruption (D14)

Outcomes of integration of the anti-corruption principle

Support by the organization’s leadership for anti-corruption (B4)

Human Resources procedures supporting the anti-corruption commitment or policy, including communication to and training for all employees (B5 + D8)

Internal checks and balances to ensure consistency with the anti-corruption commitment (B6)

Actions taken to encourage business partners to implement anti-corruption commitments (D6)

Management responsibility and accountability for implementation of the anti-corruption commitment or policy (D7)

Communications (whistleblowing) channels and follow-up mechanisms for reporting concerns or seeking advice (D9)

Internal accounting and auditing procedures related to anticorruption (D10)

Develop and implement partnership projects with public or private organizations (UN entities, government, NGOs, or other groups) on core business, social investments and/or advocacy

Join industry peers, UN entities and/or other stakeholders in initiatives contributing to solving common challenges and dilemmas at the global and/or local levels with an emphasis on initiatives extending the company’s positive impact on its value chain

Align core business strategy with one or more relevant UN goals/issues

Develop relevant products and services or design business models that contribute to UN goals/issues

Adopt and modify operating procedures to maximize contribution to UN goals/issues

Other established or emerging best practices

In 2014, L’Oréal tested a new inclusive business model in India around waste management, particularly for shampoo packaging. The

Pursue social investments and philanthropic contributions that tie in with the core competencies or operating context of the company as an integrated part of its sustainability strategy

Coordinate efforts with other organizations and initiatives to amplify—and not negate or unnecessarily duplicate—the efforts of other contributors

Take responsibility for the intentional and unintentional effects of funding and have due regard for local customs, traditions, religions, and priorities of pertinent individuals and groups

Other established or emerging best practices

At the end of 2014, 4% of the strategic suppliers have implemented a Solidarity Sourcing action.

Publicly advocate the importance of action in relation to one or more UN goals/issues

Commit company leaders to participate in key summits, conferences, and other important public policy interactions in relation to one or more UN goals/issues

Other established or emerging best practices

L’Oréal signed the agreement with the International Labour Organisation to become part of this organisation’s Disability Network.

CEO leads executive management team in development of corporate sustainability strategy, defining goals and overseeing implementation

CEO publicly delivers explicit statements and demonstrates personal leadership on sustainability and commitment to the UN Global Compact

CEO promotes initiatives to enhance sustainability of the company’s sector and leads development of industry standards

Make sustainability criteria and UN Global Compact principles part of goals and incentive schemes for CEO and executive management team

Publicly recognize responsibility for the company’s impacts on internal and external stakeholders

Define sustainability strategies, goals and policies in consultation with key stakeholders

Consult stakeholders in dealing with implementation dilemmas and challenges and invite them to take active part in reviewing performance

Establish channels to engage with employees and other stakeholders to hear their ideas and address their concerns

Other established or emerging best practices

Every year since 2009, L’Oréal organizes an Ethics Day in order to ensure ongoing internal communication on this topic.

Board of Directors (or equivalent) assumes responsibility and oversight for long-term corporate sustainability strategy and performance

Board establishes, where permissible, a committee or assigns an individual board member with responsibility for corporate sustainability.

Board (or committee), where permissible, approves formal reporting on corporate sustainability (Communication on Progress)

Management practices aimed at preventing corrupt relationships with government officials

Information on how policies, strategies and operating practices have been adapted to the specific high-risk/conflict context based on due diligence

Adherence to best practices even where national law sets a lower standard, including in the management of security services

Other established or emerging best practices

When necessary, policies and practices are adapted to take into consideration L’Oréal’s presence in high risk and/or conflict affected areas (see Criterions 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13)

Stakeholder engagement mechanisms across company and contractor operations

Approaches to stakeholder engagement involving civil society, international organizations, etc

Gender impact assessments or consideration of gender-related impacts as part of its social and/or human rights impact assessments

Ensuring female beneficiaries of community programmes

Community initiatives specifically targeted at the empowerment of women and girls

Strategies to ensure that community investment projects and programmes (including economic, social and environmental) positively impact women and girls

Strategies to ensure that community investment projects and programmes (including economic, social and environmental) include the full participation of women and girls

Other established or emerging best practices

The L’Oréal Foundation launched in October 2014 L’Oréal for Girls in Science.

Achieving and maintaining gender equality in senior management and board positions

Achieving and maintaining gender equality in middle management positions

Equal pay for work of equal value

Flexible work options

Access to child and dependent care

Support for pregnant women and those returning from maternity leave

Recruitment and retention, including training and development, of female employees

Education and training opportunities for women workers

Creating and maintaining workplace awareness of gender equality and, inclusion and non-discrimination for all workers

Mentoring and sponsorship opportunities for women workers

Other established or emerging best practices

In 2014, L’Oréal was awarded the Human Capital Trophy in the “Place of Women in the Company” category for its initiative on “successfully combining career and motherhood”.

Achieving and maintaining gender equality in senior management and board positions

Achieving and maintaining gender equality in middle management positions

Equal pay for work of equal value

Recruitment and retention, including training and development, of female employees

Education and training opportunities for women workers

Creating and maintaining workplace awareness of gender equality and, inclusion and non-discrimination for all workers

Other established or emerging best practices

Reporting of additional key figures: Workforce breakdown by part-time/full-time contract by gender Workforce breakdown by temporary/permanent contract by gender

Supplier diversity programme

Supplier monitoring and engagement on women's empowerment and gender equality including promotion of the Women's Empowerment Principles to suppliers

Gender-sensitive marketing

Gender-sensitive product and service development