L'Oreal

OVERALL
Owned	FRA
Rating

Cosmetics and beauty products maker

World's #1 beauty products company, and the top nanotechnology patent-holder in USA. L'Oreal bought The Body Shop in 2006 and YSL Beaute in 2008. Its ownership is split among several entities, including Nestle as a large stakeholder.

Company Ownership

L'Oreal SA	FRA	website	email	facebook	twitter
Nestle SA       owns 23% of L'Oreal SA	SWI	website	email	facebook	twitter
Food and beverage company World's #1 food and beverage company. World's #1 coffee company. Its pet food, bottled water and baby food businesses are also amongst the largest in the world. Founded in Switzerland in 1866 by Henri Nestl.

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Company Assessment

PRAISE	CRITICISM	INFORMATION
L'Oreal SA
CDP Forests Score of A In 2019, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts towards removing commodity-driven deforestation and forest degradation from its direct operations and supply chains. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Forests Score of A. [Source 2019][More on Forests] CDP Climate Change Score of A In 2019, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of A. [Source 2019][More on Climate Change] Palm oil scorecard - WWF The WWF Palm Oil Buyers Scorecard 2019 assesses 173 companies on the commitments they have made, and the actions they have taken, to ensure that there is no destruction of nature including no deforestation along their supply chains; and support a responsible and sustainable palm oil industry beyond their own supply chain. This company is rated 'leading the way' with a score of 19.3 out of a possible total of 22. [Source 2019][More on Palm Oil] CDP Water Security Score of A In 2019, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security Score of A. [Source 2019][More on Human Rights] 89.9% in Newsweek Green Ranking 2017 This company received a score of 89.9/100 in the Newsweek Green Ranking 2017, which ranks the world's largest publicly traded companies on eight indicators covering energy, greenhouse gases, water, waste, fines and penalties, linking executive pay to sustainability targets, board-level committee oversight of environmental issues and third-party audits. Ranking methodology by Corporate Knights and HIP Investor. [Source 2017][More on Sustainability Reporting] 60% in Forest 500 Rankings The Forest 500 identifies, ranks, and tracks the governments, companies and financial institutions worldwide that together could virtually eradicate tropical deforestation. Rankings are based on their public policies and commitments and potential impacts on tropical forests in the context of forest risk commodities (palm oil, soy, beef, leather, timber and paper). This company received a score of 60%. [Source 2019][More on Forests] Palm oil scorecard - RFUK Ethical Consumer has ranked companies' practices and policies in relation to their palm oil sourcing for the Rainforest Foundation/Ethical Consumer palm oil campaign. This company received a 'green' rating. [Source 2016][More on Palm Oil] Global 100 The 2020 Global 100 Most Sustainable Corporations in the World list is an extensive data-driven corporate sustainability assessment. The ranked companies are leaders in the field of a sustainable business approach. The efficiency of a company's energy, water, CO2 and waste management is measured in relation to its total sales volume. The disclosure of that information is a pre-condition for the assessment. Of the 53 companies in its peer group, this company ranked #6. [Source 2020][More on Sustainability Reporting]	Boycott Call Naturewatch has a long-standing boycott of L'Oreal due to its continued use of animal testing for cosmetics. The French multinational uses ingredients that have been tested on animals, despite public statements to the contrary. It has also been criticised for lobbying against an EU ban on animal testing for cosmetics. [Source 2015][More on Animal Testing] Palm oil sourcing This company sources palm oil from at least 20 of the 25 dirty palm oil producers identified in the 2018 Greenpeace report "The Final Countdown". In addition to deforestation, the 25 individual cases in the report include evidence of exploitation and social conflicts, illegal deforestation, development without permits, plantation development in areas zoned for protection and forest fires linked to land clearance. [Source 2018][More on Palm Oil] Animal Testing This company appears on PETA's (People for the Ethical Treatment of Animals, USA) 'Companies That Do Test On Animals' list, signifying that they manufacture products that are tested on animals at some stage of development. [Source 2020][More on Animal Testing] Supply chain practices in China This company received a score of 11.5/100 (retrieved 25-Feb-2020) in the Corporate Information Transparency Index (CITI), a system for evaluating supply chain practices in China, particularly in regards to environmental management and water pollution. Scores are calculated using government compliance data, online monitoring data, and third-party environmental audits, as well as trends in the environmental performance of factories in the company's supply chains. [Source 2020][More on Habitats] Workers rights in China A 2014 report by China Labour Watch found poor working conditions in a Chinese factory that mainly manufactures cosmetic brushes for multinational beauty companies, including this one. Labor abuses include excessive overtime and poor worker safety measures. Also, the factory has not purchased social insurance for workers as required by law. Hundreds of workers went on strike in Jan 2014 after a female team leader was slapped by a male manager. [Source 2015][More on Workers Rights] Part ownership by Nestle L'Oreal is 23.29% owned by Nestle, who have a boycott call. [Source x][More on Governance] Price fixing in Greece In 2017 Greece's competition watchdog fined six leading cosmetics firms, including Christian Dior, Estee Lauder and L'Oreal 19 million euros for distorting competition. This company's Greek subsidiary was fined 2.6 million euros. [Source 2017][More on Governance] 'D' rating at rankabrand.org Rank a Brand searches the websites of brands for the answers to carefully targeted questions. From this they calculate sustainability scores based on the themes of environment, climate, labor issues, and transparency. Brands owned by this company received a 'D'. [Source 2016][More on Sustainability Reporting] Price fixing in France In Dec 2014 this company and 12 other consumer goods firms were fined a total of 951m euros by the French competition watchdog for price fixing in supermarkets. The regulator said the companies colluded on price increases between 2003 and 2006. L'Oreal received the largest fine of 189.5m euros. [Source 2014][More on Governance] 39/100 S&P Global ESG Score This company received an S&P Global ESG Score of 39/100 in the Personal Products category of the 2019 SAM Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices. The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices. [Source 2019][More on Sustainability Reporting]	Nanoparticles in cosmetics Testing commissioned by Friends of the Earth Australia found nanoparticles in foundations and concealers sold by L'Oreal. [Source 2009][More on Product Safety] Price fixing in Spain In Mar 2011 Spain's competition regulators fined P&G and L'Oreal over hair care price-fixing. L'Oreal were ordered to pay 23.2 million euros. The cartel of eight companies was allegedly formed in 1989. It is alleged that leaders of the eight business units met twice a year to discuss various market strategies, including pricing. [Source 2011][More on Governance] Joint venture with Nestle L'Oreal and Nestle have a joint venture, Laboratoires Inneov (functional foods). Nestle is the target of a long-standing boycott call. [Source 2014][More on Governance] Price fixing in France In Jan 2012 a Paris appeals court upheld a 40 million euro fine imposed in 2006 by the French competition watchdog, which said the companies involved had reached illicit agreements on price fixing, enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance. Thirteen leading perfume and luxury goods companies were fined. [Source 2012][More on Governance] Plastics Commitment signatory This company is a signatory to the New Plastics Economy Global Commitment, whose goal is to eliminate plastic pollution at its source. [Source 2019][More on Oceans] Sustainable Beauty Award winner In 2016 this company won the Sustainable Ingredient award at the Sustainable Beauty Awards, which aim to recognise the operators who are pushing the boundaries of sustainability in the beauty industry. L'Oreal has partnered with Bolivian growers for the sustainable sourcing of quinoa husk, which is used as an exfoliating ingredient in skin care products. [Source 2016][More on Eco-Certification] Climate action commitments As listed on the We Mean Business website, this company has committed to the following climate action initiatives: adopt a science-based emissions reduction target; report climate change information in mainstream reports as a fiduciary duty; remove commodity-driven deforestation from all supply chains by 2020. [Source 2017][More on Climate Change] Gender equality This company appears on the 2020 Bloomberg Gender-Equality Index, signifying a commitment to supporting gender equality through policy development, representation, and transparency. [Source 2020][More on Human Rights] Guidance member This company is a member of Guidance, a pre-competitive global initiative, convened by Quantis, which aims to provide a methodological guide with credible references that companies can use to account for the climate change impacts of their efforts on sustainable forests and agriculture in an accurate and credible manner. [Source 2016][More on Multi-Stakeholder Initiatives] Responsible Beauty Initiative member This company is a member of the Responsible Beauty Initiative, an industry initiative focused on sustainable procurement. It was founded in 2017 to improve sustainability throughout the entire beauty supply chain, through sharing best practices and processes, driving a common understanding across the industry, and to use and share common tools, creating efficiencies. [Source 2017][More on Multi-Stakeholder Initiatives] Responsible Mica Initiative member This company is a member of the Responsible Mica Initiative, a Do-Tank which aims to eradicate child labour and unacceptable working conditions in the Indian mica supply chain by joining forces across industries. [Source 2017][More on Multi-Stakeholder Initiatives] UN Global Compact participant The United Nations Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of 10 values in the areas of human rights, labour standards, the environment, and anti-corruption. However it's non-binding nature has been widely criticised, and many signatory corporations continue to violate the Compact's values. [Source x][More on Sustainability Reporting] Microbeads scorecard In 2016 Greenpeace East Asia ranked the world's 30 biggest personal care companies on their commitment to eliminating microbeads from their personal care products. The scorecard was based on four main criteria: commitment & transparency, definition, deadline and global application. This company was ranked as 'getting there'. Microbeads are not retained by wastewater treatment and end up in the ocean where they are a threat to the marine environment. [Source 2016][More on Oceans] Use of plastic microbeads This company uses microbeads in some of its personal care products, but have indicated it will replace them in a given timeframe or adapt the products accordingly. These particles are not retained by wastewater treatment so end up in the ocean. While microplastics aren't thought to be a health hazard to consumers, they are a threat to the marine environment. [Source 2014][More on Oceans] SB 657 disclosure statement The California Transparency in Supply Chains Act of 2010 (SB 657) requires companies operating in California to disclose their efforts to eradicate slavery and human trafficking from their direct supply chains. KnowTheChain.org has examined this company's disclosure statement and concluded that it addresses the majority of SB 657 requirements. Follow the link to see this company's disclosure statement. [Source 2013][More on Human Rights] Political boycott Call to boycott by BDS due to involvement in Israel. [This assessment has not been used in calculation of ratings]. [Source 2009][More on Politics] 'C+' grade in WWF Deeper Luxury report WWF-UK analysed and ranked the 10 largest publicly-traded luxury brand-owners on their environmental, social and governance (ESG) performance. [Source 2007][More on Governance]

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L'Oreal buys The Body Shop
17th Mar 2006 — In a controversial move, Dame Anita Roddick, founder of The Body Shop, sold the business to french cosmetics giant, L'Oreal, in March 2006. A boycott has since been called on The Body Shop.