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L'Oréal is a world leader in beauty, offering makeup, cosmetics, haircare, and perfume products globally with a focus on quality, efficacy, and safety.

Positive signals

L'Oréal’s Board of Directors has prioritized ESG skills, focusing on CSR strategy within an international group, and has integrated sustainability expertise at the highest governance level as of April 2025.

L'Oréal received an ESG rating of 85 out of 100 from Standard & Poor’s Global, reflecting strong environmental and social performance, and an ESG profile score of 77 out of 100, highlighting its ambitious sustainability strategy and responsible business model.

L'Oréal achieved 100% renewable energy use across all its European operations, including factories, distribution centers, and offices, as of December 2024. This milestone is a major step toward the company’s global goal of reaching carbon neutrality and 100% renewable energy at all sites by 2025.

Concerns

L'Oréal faces a lawsuit alleging that it failed to disclose the presence of PFAS (per- and polyfluoroalkyl substances) in its mascara and other cosmetic products, raising concerns about product safety and transparency in ESG marketing.

Sustainalytics’ ESG Risk Rating for L'Oréal notes that the company has faced material ESG controversies in the past three years, with the highest controversy level impacting its overall ESG risk profile, though specific incidents are not detailed in the public summary.