Cosmetics and beauty products maker
World's #1 beauty products company, and the top nanotechnology patent-holder in USA. Its ownership is split among several entities, including Nestle as a large stakeholder.
| Nestle SA
owns 23% of L'Oreal SA
In 2020, 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: CDP (2020)
In 2020, 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: CDP (2020)
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: WWF Palm Oil Buyers Scorecard 2019 (2019)
In 2020, 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: CDP (2020)
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: Newsweek (2017)
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: Rainforest Foundation UK (2016)
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: Naturewatch (2020)
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: Greenpeace (2018)
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: PETA (2020)
This company received a score of 14.1/100 (retrieved 10-Oct-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: IPE (2020)
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: China Labor Watch (2015)
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: news article (2017)
L'Oreal is 23.29% owned by Nestle, who have a boycott call, several criticisms and an overall Shop Ethical rating of F.
Source: Shop Ethical (2020)
This company uses plastic microbeads in some of its personal care products. These particles are not retained by wastewater treatment so end up in the ocean where they contribute to ocean plastic pollution, and are hazardous to sea life. While the effects of microplastics on human health are not completely understood, there are concerns about plastic additives, such as phthalates, which are known endocrine disruptors which are shown to have harmful effects on life.
Source: Beat the Microbead (2021)
Testing commissioned by Friends of the Earth Australia found nanoparticles in foundations and concealers sold by L'Oreal.
Source: FOE (2009)
L'Oreal and Nestle have a joint venture, Laboratoires Inneov (functional foods). Nestle is the target of a long-standing boycott call.
Source: company website (2014)
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: news article (2012)
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: news article (2014)
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: news article (2011)
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: We Mean Business (2017)
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: news article (2016)
This company appears on the 2021 Bloomberg Gender-Equality Index, signifying a commitment to supporting gender equality through policy development, representation, and transparency.
Source: Bloomberg (2021)
This company was named in the Working Mother 100 Best Companies 2020 for being a mum-friendly employer. Listed companies demonstrate progress in offering paid parental leave and opportunities to return to work gradually, as well as family-friendly benefits and opportunities for women to advance.
Source: Working Mother (2020)
This company is a signatory to the New Plastics Economy Global Commitment, whose goal is to eliminate plastic pollution at its source.
Source: New Plastics Economy (2019)
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: Ecovadis (2017)
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: Quantis (2016)
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: Responsible Mica Initiative (2020)
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: UN Global Compact (2020)
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 50%.
Source: Forest 500 (2020)
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: Greenpeace (2016)
WWF-UK analysed and ranked the 10 largest publicly-traded luxury brand-owners on their environmental, social and governance (ESG) performance.
Source: WWF UK (2007)
Call to boycott by BDS due to involvement in Israel. [This assessment has not been used in calculation of ratings].
Source: BDS (2009)
This company received an S&P Global ESG Score of 48/100 in the Personal Products category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 7 Feb 2021). 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: S&P Global (2021)
|Revenue||30 billion EUR (2019)|
|Subsidiaries||L'Oreal Australia Pty Ltd
Urban Decay Cosmetics LLC
Products / BrandsL'Oreal Australia
Biotherm Skin Care
CeraVe Skin Care
David Yurman Fragrances
Elnett Hair Styling
Essie Nail Care
Garnier Tanning Lotions
Garnier Skin Care
Garnier Fructis Shampoo
Garnier Fructis Hair Styling
Garnier Nutrisse Hair Colour
Giorgio Armani Fragrances
Giorgio Armani Cosmetics
Helena Rubinstein Cosmetics
Kiehl's Skin Care
L'Oreal Skin Care
L'Oreal Hair Styling
L'Oreal Hair Colour
L'Oreal Tanning Lotions
L'Oreal Men Expert Mens Grooming
Porsche Design Fragrances
Ralph Lauren Fragrances
Shu Uemura Cosmetics
SkinCeuticals Skin Care
Thierry Mugler Fragrances
Viktor Rolf Fragrances
Yves Saint Laurent Cosmetics
Urban Decay Cosmetics