Organizational Strategy - Sustainable Development - L'Oréal

5 L’oréaL - GrI DaTa SHEETS 2011
Below you will find below the elements of the CDP Supply Chain Public report and Custom report for 2011:
PROVIDeNT, ReTIReMeNT aND OTHeR beNeFIT PLaNs
L’oréal participates, according to the laws and customs of each country, in retirement and career-end management plans, and also in
provident plans, offering various additional guarantees to its employees.
In 2002, L’oréal set up a Monitoring Committee for the retirement and provident plans offered by its subsidiaries. This committee
oversees the implementation and monitoring of the L’oréal policy for retirement and providence, as defined by the group’s Executive
Committee.
This policy expresses general principles in the following areas: the design and setting up of plans, relations with employees, financing and
the cost of plans, management of the plans. any setting up of a new system, or modification of an existing one, must obtain prior approval
from the oversight Committee. The oversight Committee works in collaboration with the operations Managements in the Divisions and
the Zones. The characteristics of the retirement plans and other career end benefits offered by the subsidiaries outside France vary
according to the applicable laws and regulations and also company practice in each country.
In many countries, L’oréal participates in setting up supplementary pensions for its employees through a set of plans with defined benefits
and/or defined contributions (examples: United States, Netherlands, Belgium, Canada, South american countries). In some cases, plans
with defined benefits have been closed to new employees who are now offered plans with defined contributions (Germany, Belgium,
United Kingdom). This group of plans with defined benefits and defined contributions allows the risks to be shared and provides better cost
stability. In defined contribution plans, the company’s commitment consists essentially of paying a percentage of the employee’s annual
salary into the pension plan each year. Defined benefit plans are financed by payments into special funds or by setting up provisions in
agreement with the accounting standards adopted by L’oréal. The performance of the administrators of the main funds set up, likewise
the scoring of the financial stability of the trustees, is regularly monitored by the oversight Committee.
ReTIReMeNT PLaNs IN FRaNCe
In France, L’oréal extended its pension system by creating, on 1 January 2001, a system of defined benefits with non-fixed entitlements,
dependent on completing one’s career in the company, then on 1 September 2003, a system with defined contributions and acquired
rights.
DeFINeD beNeFITs PLaN
In order to possibly add to the compulsory retirement plans under retirement Insurance within Social Security, operated by arrCo
or aGIrC, on 1 January 2001, L’oréal set up a retirement plan with defined benefits with non-fixed entitlements, the “Guarantee of
resources for retired Former Senior Managers”. on 31 December 2000, L’oréal had closed another pension plan with defined benefits,
also with non-fixed entitlements, the “Pension Guarantee for Members of the Management Committee”. access to the “Guarantee
of resources for retired Former Senior Managers” created on 1 January 2001, is open to former L’oréal senior managers who, apart
from the condition of having finished their career within the company, in particular, meet the condition of having held the position
of Manager, as defined in article L. 3111-2 of the Labour Code for at least ten years at the end of their career. This plan opens the
right to the payment to the beneficiary pensioner of an annuity and, after his/her death, to the spouse and/or former spouse(s)
of a reversionary annuity and to the children of an orphan’s annuity, subject to certain conditions. The basis for calculation of the
Guarantee of resources is the average of the salaries of the three best years from the seven calendar years prior to the end of a career
within L’oréal. The Guarantee of resources is calculated according to the beneficiary’s number of years of service in the company, uprated
on the date the career in L’oréal ends, up to a limit of 25 years, every year giving a progressive and regular increase of 1.8% of the
level of the Guarantee. at that point, the gross Guarantee of resources may not exceed 50% of the calculation basis of the Guarantee
of resources, nor exceed the average of the fixed part of the salaries of the three years taken into consideration in this base. a gross
annuity and a gross constituent capital are then calculated, taking into account the sum of the annual pensions acquired on the date
of their liquidation by the person retiring, by virtue of his/her professional activity and taking 65 as the beneficiary’s age. The annuity
is the result of the conversion into a pension at the beneficiary’s age on the date of the liquidation of the gross constituent capital,
reduced by the amount of all compensation due by reason of the termination of the contract of employment, other than notice
and paid holiday, and all salary paid on the occasion of a career end holiday, if such a capital sum results from these operations.
7/14
L’Oréal CDP members
Number of participants 48 1,864
Number of invited participants 55 4,234
Rate of participation 87% 44%
Strategic awareness 83% 59%
Ambitions in terms of reduction (Suppliers with a reduction aim) 57% 41%
Capacities in terms of publication (Transparency and relevance of responses) 54% 47%
Practices implemented (Practical actions and initiatives in respect of climate
change)
EC3
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