“Over the coming months, our societies will face social crises giving rise to situations of great human suffering, particularly for the most vulnerable. At the same time, we are fully aware that environmental challenges are increasingly pressing,” commented Jean-Paul Agon, chairman and CEO of L’Oréal. “It is essential not to step back from the sustainable transformation that the world needs. We therefore wish to reaffirm our commitment to the environment and to the preservation of biodiversity, and to help mitigate the social crisis for women. These two causes reflect the values and the historic commitment of L’Oréal.”
Supporting Vulnerable Women
Women are disproportionately affected by the Covid-19 crisis, particularly in terms of job and income loss. They make up a large majority of single-parent families, and are increasingly forced to turn to food banks to meet their most basic needs. At the same time, domestic and sexual violence has increased worldwide, including in France (+30%), particularly due to the effects of lockdown measures.
To directly help struggling women, L’Oréal is creating a $54.1 million charitable endowment fund to support field organizations and local charities in their efforts to fight poverty, help women achieve social and professional integration, provide emergency assistance to refugee and disabled women, prevent violence against women and support victims.
Environmental Impact Investing
In addition to its ongoing long-term efforts to reduce its environmental impact as part of its Sharing Beauty with All sustainable development program, the L’Oréal Group has decided to engage $108.2 million into impact investing, in order to act upon two key environmental challenges:
- Regenerating damaged natural ecosystems: $54.1 million will be used to finance marine and forest ecosystem restoration projects that also create new social and economic development opportunities for the populations that depend on these ecosystems (developing sustainable agriculture and fishing, eco-tourism, sale of carbon credits).
- Preventing climate change: $54.1 million will be directed to financing for projects linked to the circular economy.
The L’Oréal Group plans to present its new sustainability program for 2030 in late June, which will complete the L’Oréal for the future plan and will ensure that all of L’Oréal’s activities are respectful of the planetary boundaries.