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L'Oreal

OVERALL

Owned
FRA
Rating
Criticisms

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.

Company Ownership

L'Oreal SA   FRA     website   email   facebook   twitter
  Nestle SA   
   owns 20% 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.

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
L'Oreal SA
Environment CDP Forests Score of A
In 2021, 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 (2021)
Environment CDP Climate Change Score of A
In 2021, 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 (2021)
Social CDP Water Security Score of A
In 2021, 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 (2021)
Business Ethics 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: Newsweek (2017)
Environment Palm oil scorecard - WWF
The WWF Palm Oil Buyers Scorecard 2021 assesses 227 companies on the actions companies have taken to ensure their own palm oil supply chain is sustainable and free of deforestation, natural ecosystem conversion, and human rights abuse. This company is rated 'well on the path' with a score of 18.71 out of a possible total of 24.
Source: WWF Palm Oil Buyers Scorecard (2021)
Animals 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: Naturewatch (2020)
Environment 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: Greenpeace (2018)
Animals 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: PETA (2022)
Environment Supply chain practices in China
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)
Business Ethics 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: news article (2017)
Business Ethics Part ownership by Nestle
L'Oreal is 20.1% owned by Nestle, who have a boycott call, several criticisms and an overall Shop Ethical rating of F.
Source: Shop Ethical (2021)
Environment Use of microplastics
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)
Social 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. [Listed under Information due to age of report]
Source: China Labor Watch (2014)
Business Ethics Nanoparticles in cosmetics
Testing commissioned by Friends of the Earth Australia found nanoparticles in foundations and concealers sold by L'Oreal.
Source: FOE (2009)
Business Ethics 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: company website (2014)
Business Ethics 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: news article (2012)
Business Ethics 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: news article (2014)
Business Ethics 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: news article (2011)
Environment 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.
Source: We Mean Business (2021)
Environment 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: news article (2016)
Environment Global Plastics Treaty endorsee
In 2022 after more than 170 nations backed a historic UN resolution to end plastic pollution, global businesses across the plastics value chain, financial institutions, and NGOs came together to announce a common vision for an effective and ambitious Global Treaty to End Plastic Pollution. The vision will form the basis for future policy engagements with governments through a newly launched Business Coalition for a Global Plastics Treaty which will be convened by the Ellen MacArthur Foundation and WWF. This company has endorsed the vision statement of the treaty.
Source: Global Plastics Treaty (2022)
Social Gender equality
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)
Business Ethics 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: New Plastics Economy (2022)
Business Ethics 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: Ecovadis (2017)
Business Ethics 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: Quantis (2016)
Business Ethics 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: Responsible Mica Initiative (2020)
Business Ethics 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: UN Global Compact (2020)
Environment 47% in Forest 500 Rankings
Forest 500 identifies the 350 companies and 150 financial institutions with the greatest exposure to tropical deforestation risk, and annually assesses them on the strength and implementation of their deforestation and human rights commitments. This company received a score of 47%.
Source: Forest 500 (2021)
Environment 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: Greenpeace (2016)
Environment C grade for plastic pollution
As You Sow's 2021 Corporate Plastic Pollution Scorecard ranks companies on plastic packaging pollution. The study measures the progress of 50 large companies in the beverage, quick-service restaurant, consumer packaged goods, and retail sectors on six core pillars where swift action is needed to reduce plastic pollution: 1) Packaging Design, 2) Reusable Packaging, 3) Recycled Content, 4) Public Data Transparency, 5) Support for Recycling, and 6) Producer Responsibility. This company received a grade of C
Source: As You Sow (2021)
Business Ethics '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: WWF UK (2007)
Business Ethics Political boycott
Call to boycott by BDS due to involvement in Israel. [This assessment has not been used in calculation of ratings].
Source: BDS (2009)
Business Ethics 58/100 S&P Global ESG Score
This company received an S&P Global ESG Score of 58/100 in the Personal Products category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 21 Oct 2022). 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 (2022)

> About the Icons

Company Details

Type Public company
Founded 1909
Revenue 30 billion EUR (2019)
Employees 88,000 (2019)
Subsidiaries L'Oreal Australia Pty Ltd 

Cosmetics Wholesaling

Australian subsidiary established in 1934. L'Oreal do not manufacture in Australia.


YSL Beaute 

Cosmetics

Gucci bought the YSL brand in 1999. L'Oreal bought YSL Beaute in 2008 (cosmetics and fragrances only).


Urban Decay Cosmetics LLC 

Cosmetics

Previously owned by LVMH who sold it to Falic Group, who sold it to private equity firm Castanea Partners, who sold it to L'Oreal in Nov 2012.

Contact Details

Address Paris, France
Website www.loreal.com

Products / Brands

L'Oreal Australia
Azzaro Fragrances
Biotherm Skin Care
Botanicals Shampoo
Cacharel Fragrances
CeraVe Skin Care
David Yurman Fragrances
Dermablend Cosmetics
Diesel Fragrances
Elnett Hair Styling
Elvive Shampoo
Essie Nail Care
Garnier Tanning Lotions
Garnier Skin Care
Garnier Deodorant
Garnier Fructis Shampoo
Garnier Fructis Hair Styling
Garnier Nutrisse Hair Colour
Giorgio Armani Fragrances
Giorgio Armani Cosmetics
Helena Rubinstein Cosmetics
Kiehl's Cosmetics
Kiehl's Skin Care
L'Oreal Skin Care
L'Oreal Hair Styling
L'Oreal Hair Colour
L'Oreal Cosmetics
L'Oreal Shampoo
L'Oreal Tanning Lotions
L'Oreal Men Expert Mens Grooming
Lancome Cosmetics
Matrix Shampoo
Maybelline Cosmetics
NYX Cosmetics
Porsche Design Fragrances
Ralph Lauren Fragrances
Redken Shampoo
Shu Uemura Cosmetics
SkinCeuticals Skin Care
Swarovski Fragrances
Thayers Skin Care
Thierry Mugler Fragrances
Valentino Fragrances
Viktor Rolf Fragrances
Yves Saint Laurent Cosmetics

Urban Decay
Urban Decay Cosmetics


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