2005 SUSTAINABLE DEVELOPMENT REPORT

“
We intend to continue moving forward,
step by step through concrete and
measurable initiatives. ”
Pudong near Shanghai, China, to better
understand the specificities of Chinese skin
and hair. We opened a research centre in
Chicago in 2003 devoted to research on the
skin and hair of people of African origin.
Diversity is also expressed in the development
approach to our brands. Because L’Oréal
does not want to impose a single face of
beauty, we seek to express all kinds of beauty;
to do that we have developed a unique portfolio
of brands of different cultural origins in
order to satisfy the varying sensitivities all
around the world.
It is our deepest belief that a company can
not fully integrate differences unless it is also
composed of teams which illustrate diversity.
L’Oréal therefore is a mosaic of individuals
of varying culture, sex, colour, religious
conviction and social origin. This diversity,
more than any kind of homogeneity, makes us
more creative, more imaginative and more
dynamic. We shall pursue our efforts along the
path of diversity in our sources of recruitment.
Such responsible human resources management
is one of the key elements of our
determination to be open to the world and
contributes to the harmonious and sustainable
development of our group.
Our beliefs and our actions in favour of diversity
were recognised twice this year: by the Anti-
Defamation League, one of the top-ranking
American organisations which fights all forms
of discrimination, and by the World Diversity
Leadership Council which paid tribute to L’Oréal
for the cultural diversity of its products.
Thanks to this international recognition, the
52,000 employees of the group can be proud
to see their hard work, their commitment and
their actions rewarded.
Sustainable Development Report_L’ORÉAL 2005
A SENSE OF RESPONSIBILITY
Our sense of responsibility involves an obsession
to guarantee innovation, quality and
safety to all of our customers. Their health
and well-being are an absolute priority for
L’Oréal. It is with determination and a proactive
approach that our company has
adhered to a responsible policy over many
years now in the selection of the ingredients
used in our products. This is one of the main
pillars of our commitment to sustainable
development.
In 2005, we developed a methodology to assess
our ingredients against a set of 25 sustainability
criteria, including social, environmental
and biodiversity impacts, and fair trade
principles. This sustainability assessment is
being piloted during 2006 and we hope to roll
it out during 2006-2007.
Developing alternative methods to animal
testing requires a significant investment in
terms of research. That is why in early 2006,
we bought the company SkinEthic, which is
specialised in the reconstruction of human
tissue. This will enable L’Oréal to strengthen
its position and make further progress in this
key area of development.
Responsibility also means we produce our
own products. This is an additional guarantee
of the global quality of our products but
also a guarantee that our social, ethical and
environmental principles are adhered to.
Our sense of responsibility also means limiting
the impact of our business activities on
the environment. In an industry such as ours,
which already has a low level of energy consumption
and a low level of pollution, the
group has made very significant progress in
the last ten years and has set even higher
goals for the future.
For L’Oréal corporate responsibility goes even
further. It means extending the appropriate
gestures to prove our will to be close to the
communities where the group operates.
This is a factual document intended to show
how L’Oréal takes on its responsibilities day
to day. It is intended as an on-going report to
be used as a tool to make further progress.
The Executive Committee, ourselves, and all
of our teams around the world are committed
to pursuing these goals even further in the
development of our company. It is in this way
that we reaffirm our vision of truly sustainable
growth for the future.
SIR LINDSAY OWEN-JONES
Chairman and Chief Executive Officer
JEAN-PAUL AGON
Deputy Chief Executive Officer