Value creation

At L’Oréal, shared value creation is our compass, guiding our decisions every day. We’re committed to dual excellence, combining economic performance with positive social and environmental impact.

Key word of the year?

C. Babule: Agility. As we operate in a world facing unprecedented challenges – economic uncertainty, social and political shifts, and environmental concerns – the agility of our teams is key to adapting, adjusting and joining forces with our ecosystem to find solutions to new challenges that emerge.

E. Barcenas: Purposeful. In 2024 we continued to lead and act with purpose to drive meaningful impact. Further embracing our deep-rooted sense of responsibility and the power of purpose, we continued to pursue partnerships internally and externally to accelerate our transformation. Fostering a culture of trust and resilience, our teams continued to find ways to ignite innovation and harmonise our collective efforts.

How does purpose help create value?

EB: Purpose is fundamental to how we create shared value. This approach enables us to better serve our consumers while finding bespoke solutions to our shared challenges. Ultimately, a strong sense of purpose aligns our business strategy and our values with the needs of the world and our communities.

CB: Our approach is deeply purpose-driven – and collaboration is key. We actively seek out cutting-edge solutions and partnerships that align with our sustainability goals. Our corporate venture fund, BOLD, partners with innovative startups specialising in green sciences and biotechnology for a more sustainable future. Our recent three-way agreement with two companies, Abolis Biotechnologies and Evonik, exemplifies this purposeful approach. This partnership will enable the production of purpose-made, sustainable ingredients at the scale needed to meet global demand for responsible beauty, in line with our commitment to prioritise bio-based ingredients in our beauty formulations.

A flagship initiative of dual excellence?

EB: The validation of our new decarbonisation trajectory by the Science Based Targets initiative. This rigorous process, co-led by our Sustainability and Finance teams, involved aligning our 2030 and 2050 ambitions with the latest Net Zero standard demonstrating our commitment to science-based targets and marking a significant milestone in our climate action journey.

CB: From a financial perspective, I’d highlight the launch of the Solstice debt fund. Co-created with Chenavari Investment Managers, with our commitment to an initial €50 million investment, this pioneering initiative demonstrates how our strong financial performance enables us to invest in sustainability across our value chain. Solstice aims to support the decarbonisation efforts of our strategic industrial partners, amplifying our impact across the entire ecosystem. It’s a concrete example of L’Oréal’s dual excellence, combining financial performance with positive social & environmental impact.

Beauty trend of the year?

EB: A significant beauty trend in 2024, one we are actively driving, is the rise of refillable products. Our teams are rethinking packaging to make refills the new normal. For instance, our Luxe Division is reconciling desirability and sustainability on refills, striving to set a new industry standard. This shift in consumer behaviour towards refills significantly reduces waste, promotes a circular economy and empowers consumers to make more sustainable choices without compromising their beauty routines.

CB: Refills offer a compelling value proposition for consumers. They typically come at a better price point than purchasing a brand-new product, offering savings over time. Choosing refills allows consumers to participate in sustainable practices while also benefiting from a more economical approach to beauty.

How is L’Oréal future-fit?

CB: Being future-fit is rooted in our deep transformation agenda. We’re building the L’Oréal of the future today. A key element is leveraging the power of tech and data. Internally, we’re using data-driven insights to make smarter strategic decisions and optimise resource allocation. This helps us anticipate future trends and ensure our investments are aligned with long-term sustainable value creation. Externally, we’re using data to empower consumers, with information and tools like QR codes on products, enabling them to make more informed choices that align with their values. Data is a powerful lever for L’Oréal to remain future-fit and continue to lead in the fast-changing beauty market.

EB: The climate emergency, nature crisis and growing inequality all demand that we constantly adapt and innovate. L’Oréal’s future fitness comes from our ability to navigate this complex and evolving landscape. The close collaboration and dynamic partnership between our Finance and Sustainability teams ensure that our sustainability efforts on climate, nature and livelihoods continue to inspire a broader movement towards global sustainable development. We’re confident that L’Oréal is well positioned to strengthen its global leadership while continuing to serve our consumers and communities around the world.