How L'Oréal Creates Value That Lasts

Value Creation Model | L'Oréal Finance
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Chairman’s message
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Strategy
Transformation
Governance
Ethics
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Global brands
Consumer Products
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Financial performance
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L’Oréal around the world
Leading the future of beauty
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Operations: driving value chain excellence
Championing environmental & social progress
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Value creation
Where performance meets progress
L’Oréal is committed to dual excellence – the fusion of economic performance with environmental and social progress. Together, they guide our long-term investment decisions and allow us to create and share sustainable value with our stakeholders.
1.6 m
jobs supported worldwide
50
countries took part in The Refill Movement campaign
Message from Christophe Babule and Ezgi Barcenas
Sharing value
New lens
FAQ
Finance and sustainability: in perfect harmony
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Text version
Christophe Babule
Chief Financial Officer
"It is our deep belief that our financial performance is completely tied to our progress on environmental and social issues."
Ezgi Barcenas
Ezgi Barcenas, Chief Corporate Responsibility Officer and CEO, Fondation L'Oréal
"By sparking constant innovation in products, processes and business models, sustainability is a fundamental driver of long-term value."
Video transcript: Ask our value creation experts
Ask our value creation experts
Thomas (L’Oréal Global Operations Finance Controller): So, how has the dialogue between finance and sustainability changed over the years? Why is it so central to L’Oréal’s strategy today?
Christophe Babule (L’Oréal Chief Financial Officer): Well, to put it simply, finance and sustainability are not two separate topics. For us, they are two sides of the same coin. We call this ‘dual excellence’. It’s our deep belief that our financial performance is completely tied to our progress on environmental and social issues. You simply can’t have one without the other. This idea is at the very heart of our strategy and guides every decision we make.
Ezgi Barcenas (L’Oréal Chief Corporate Responsibility Officer): Indeed, and sustainability is a fundamental driver of long-term value, crucial for futureproofing our business. It supports financial performance by sparking constant innovation in products, processes and business models. Furthermore, sustainability builds resilience across our value chain, attracts top talent, and helps address the diverse aspirations and needs of our consumers.
Emma (L’Oréal CSR Project Manager): So L’Oréal uses a range of financial tools, from philanthropy to impact funds. Could you explain more how you structure these different levers to maximize your impact and address specific needs?
Ezgi: Great question! We leverage a full spectrum of solutions to match the needs ranging from philanthropy to impact investment to debt funding. For example, for community resilience and well-being, we use philanthropy through our Fund for Women.
Whereas the L’Oréal Fund for Nature Regeneration (2020) and Circular Innovation Fund (2022) are impact investment funds, combining environmental impact with a financial return. This financial viability enables them to scale their operations, focusing respectively on nature protection and circular innovation.
Christophe: Exactly. And through these experiences, we’ve learned which tools work best for each challenge. There is no ‘one-size-fits-all’ solution. Our transformation needs a whole range of financial tools, and we use them where they can make the biggest difference. For example, we launched the Solstice Fund. It is a specific fund to help our suppliers invest in reducing their carbon footprint, so we can move forward together. And now, we are picking up the pace even more. And speaking of acceleration, Ezgi is the best person to talk about our latest initiative.
Ezgi: We launched a flagship program earlier this year, called L’AcceleratOR.
Emma: “L’AcceleratOR”? Thomas: That sounds exciting. But what is it, exactly?
Ezgi: It is a sustainable innovation accelerator program endowed with 100M€ over the next 5 years. L’AcceleratOR aims to identify, pilot and scale the most innovative startups and SMEs anywhere in the world, who are creating next-generation, sustainable technologies that can help us solve the toughest challenges in beauty. We’ve had over 950 responses to our first call for applications. These companies address challenges across Climate, Nature and Circularity. And we have selected the top 13 most promising ones to take part in the first cohort of our program – we can’t wait to learn from them and with them!
Emma: So that’s value creation for the environment… what about social and economic progress?
Christophe: On that front, I would point you to a global study that was done on our economic and social footprint. The results are incredible. The study showed that, on average, L’Oréal supports 1.6 million jobs worldwide. This means that for every person working directly at L’Oréal, 16 other jobs are supported around the world. This creates an economic impact of more than 223 billion US dollars. This is what we mean by creating real, tangible value.
And that is precisely the beauty of ‘dual excellence’. It shows our commitment to delivering both financial performance and positive impact for society, hand in hand.
Ezgi: We are creating value inside AND outside of L’Oréal, across environmental, social and economic dimensions. That’s how, together, we create the beauty that moves the world.
Sharing value with all
Consumers
Clients & distributors
Communities
Employees
Suppliers
Government & local authorities
Scientific communities & startups
Shareholders
Consumers
Clients & distributors
Communities
Employees
Suppliers
Government & local authorities
Scientific communities & startups
Shareholders
test
Consumers
We offer each and every person the best of beauty in terms of quality, efficacy, safety, sincerity and responsibility.
> 7 Bn 7 billion
products distributed globally
44,000+
human safety evaluations conducted on formulas and raw materials
70+
cosmetic companies including L’Oréal are now part of EcoBeautyScore
50
countries took part in The Refill Movement campaign
Clients & distributors
We work together to make beauty more inclusive and enable consumers to make more sustainable beauty choices.
Partnerships including with Carrefour in France and JD. com in China to decarbonise beauty and encourage sustainable consumption
Communities
We act to champion the cause of women and to strengthen the communities with which we engage, while protecting the beauty of the planet by fighting climate change, respecting biodiversity and preserving natural resources.
>5 m
people supported through our brands’ social engagement programmes
25,000
professional opportunities created for youth
5
new spaces opened by the Fondation L’Oréal's Beauty for a Better Life programme in France, Italy, Spain, and Malaysia, allowing people in precarious situations to benefit from free beauty and well-being treatments…

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