Organizational Strategy - Sustainable Development - L'Oréal

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3 L’oréaL - GrI DaTa SHEETS 2011 In addition to this document, L’oréal has chosen to provide information according to the GrI guidelines within “data” sheets intended for a more specialised audience. These data sheets will be presented as downloadable PDF files. The following departments are involved in writing these data sheets: Ethics, Human resources, Labour relations, research, Environment, Finance, operations and Social affairs. In July of each year, L’oréal asks all contributors (divisions, subsidiaries, brands) to communicate about key sustainable development subjects, programmes, initiatives and progress for the year in their areas Then, the people responsible for the Sustainable Development report meet with each individual contributor to jointly select the subjects to be highlighted and to begin the interviews and article-writing. SELECTION OF INDICATORS The L’oréal values and issues (see Strategy Sheet 1.1 on page 1) that are integral to its business guide us in selecting the sustainable development indicators used in this report. The environmental, employment and societal criteria selected by the group are consistent with the group’s strategies: they correspond to group policies and help monitor the group’s performance in areas deemed crucial and strategic for the years to come. This is why, since 2006, the group launched a process to verify its environmental and employment data to ensure the relevance of the accepted criteria. Every year since 2006, its environmental and employment data have undergone an audit by its Chartered accountants. In 2010, the data on the environment, health and safety were verified by Environmental resources Management (ErM) and the employment affairs data by PricewaterhouseCoopers audit. In 2011, the employment affairs, environment, health and safety data were verified by Deloitte & associés and PricewaterhouseCoopers audit. To prepare its Sustainable Development report 2011, L’oréal examined current practices and studied the recommendations emanating from international institutions and specialised organisations such as the United Nations, the oECD, the European Commission and the WBCSD. Now more than ever, the group considered the Global reporting Initiative (GrI) G3 principles of sustainable development communication in analysing and reporting its performance. The relevance of monitoring indicators will be reviewed and honed in relation to the work planned by L’oréal with its stakeholders (see 4.16 approaches to stakeholder engagement, Governance Sheet p. 24). SCOPE OF CONSOLIDATION FOR EMPLOYMENT, HYGIENE AND SAFETY DATA, REPORTING INDICATORS, METHOD AND SYSTEMS EMPLOYMENT DATA Scope of consolidation The employee numbers indicated in the “Head count” and “Geographic distribution of employees” tables correspond to the total head count on 31 December of the year in question. For companies that are consolidated through proportional integration, employee numbers on 31 December are recorded in proportion to L’oréal’s interest. other employment indicators are presented in the Employee Information section of the “Cosmetics” and “The Body Shop” branches (2) . If a given indicator pertains to a scope other than that of the “Cosmetics” and “The Body Shop” branches, the scope of consolidation is indicated in a note. Indicators The accepted indicators are those used in managing personnel and in group employment issues. They reflect the results of the Human resources policy. Data Collecting data for the defined scope requires four methods: • The bulk of the data is gathered using the “reporting by country” intranet system available in each country where L’oréal has a subsidiary. The system covers several areas: head count, ethics, global employee participation, labour relations, remuneration, Human resources expenses, recruitment and training, absenteeism. at the beginning of each year, local Human resources Directors send the required data on the preceding year. When the data are being compiled, each country must validate a charter of engagement on the accuracy of the submitted data. • The other data are collected by the divisions in question (namely Training, recruitment), using targeted systems that implement the same operational and communication approach. It should be noted that the Unity tool, used for the monitoring of training at Group level, does not include all the hours of training for the reporting year when the non-financial data collection ceases. The number of hours of training and the number of staff members trained are higher than the figures published in this report. an action plan will be conducted in 2012 to make these data more accurate. • If the data are not consolidated for the entire scope of the Cosmetics branch, they can be extrapolated using the available results for the scope of the entities connected to the local Information Systems (IS), provided that this scope is representative (3) . • Finally, the specific data pertaining to “executives” are collected using the “CaroL” online career monitoring system used for all “Cosmetics group” subsidiaries. a process for continuously improving these systems has been implemented. The systems are reviewed each year with consideration for the recommendations of the Chartered accountants and the monitoring objectives for the following years: update the indicators to be monitored, improve their definition and improve the process for communication, monitoring and control. 3/18
3 EXPErT L’oréaL - GrI DaTa SHEETS 2011 (1) Including employees with a permanent or fixed-term contract of employment. (2) Innéov is included, Galderma (dermatology) is excluded. (3) In France, the gender distribution of the Cosmetics workforce was extrapolated from the gender breakdown of the entities connected to the France HrIS. The extrapolation method concerns 5% of the French workforce, which is not yet connected to the local HrIS. > For more information, see the “Methodological note” on 193 of the 2011 reference Document. HYGIENE AND SAFETY DATA Scope of consolidation The safety indicators pertain to the manufacturing entities, distribution centres, administrative sites and research centres of the “Cosmetics”, “Dermatology” and “The Body Shop” branches. Safety reporting covers all industrial or manufacturing sites and distribution centres. In 2011, it covered 70% of the staff of the administrative sites and research centres. The safety indicators for manufacturing sites and distribution centres that have been transferred or closed down during the year are integrally reported until the date when they leave the scope. The manufacturing sites or distribution centres that join the group have at most two years to integrate their environmental and safety reporting: however, for 2011, the majority of the recently acquired manufacturing sites and distribution centres had participated in reporting. Indicators The accepted indicators are those used in the management of the Company’s sites. They reflect the group’s Environmental, Health and Safety (EHS) policy. Data Collecting data for the defined scope uses the following method: The health and safety data are collected using the intranet system of information on quality dedicated to site reporting, which is available in each country where L’oréal has a subsidiary. The local managers submit the required data every month. When the data are being compiled, each site must validate the submitted data. a process for continuously improving these systems has been implemented. The systems are reviewed each year with consideration for the recommendations of the Chartered accountants and the monitoring objectives for the following years: update the indicators to be monitored, improve their definition and improve the process for communication, monitoring and control. > For more information, see the “Methodological note” on 193 of the 2011 reference Document. DATA ENVIRONNEMENT Scope of consolidation The environmental indicators pertain to the manufacturing sites and distribution centres of the “Cosmetics”, “Dermatology” and “The Body Shop” branches. If a given indicator pertains to a scope other than that of the “Cosmetics”, “Dermatology” and “The Body Shop” branches, the consolidation scope is indicated in a note. The environmental indicators for manufacturing sites and distribution centres that have been transferred or closed down during the year are integrally reported until the date when they leave the scope. The manufacturing sites or distribution centres that join the group have at most two years to integrate their environmental reporting: However, for 2011, the majority of the recently acquired manufacturing sites and distribution centres participated in reporting. Indicators The accepted indicators are those used in the management of the Company’s sites. They reflect the group’s Environmental, Health and Safety (EHS) policy. Data Collecting data for the defined scope uses the following method: The data are collected using the intranet system of information on quality dedicated to site reporting, which is available in each country where L’oréal has a subsidiary. This system covers several areas: quality, process performance and EHS data. The local managers submit the required data every month. When the data are being compiled, each site must validate the submitted data. a process for continuously improving these systems has been implemented. The systems are reviewed each year with consideration for the recommendations of the Chartered accountants and the monitoring objectives for the following years: update the indicators to be monitored, improve their definition and improve the process for communication, monitoring and control. > For more information, see the “Methodological note” on 198 of the 2011 reference Document. SOCIETAL DATA The information pertaining to societal commitments, which constitutes a new section in addition to the employment and environmental items, is part of the requirements emanating from the French Grenelle II environmental regulations. Scope of consolidation Depending on the indicator, the scope covers the data of L’oréal S.a. on either a French or a group level. The scope is specified for each indicator. 4/18
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Organizational Strategy - Sustainable Development - L'Oréal

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