Cosmetics Wholesaling
Australian subsidiary established in 1934. L'Oreal do not manufacture in Australia.
Company Ownership
L'Oreal Australia Pty Ltd
AUS
L'Oreal SA
owns 100% of L'Oreal Australia Pty Ltd
FRA
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.
Nestle SA
owns 20% of L'Oreal SA
SWI
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.
Company Assessment
(Last updated Nov 2024)
Praise
Criticism
Information
L'Oreal Australia Pty Ltd
Praise
Criticism
Information
3/5 for packaging performance
This company received a packaging performance level of 3 (Advanced) in its 2024 APCO Annual Report. Australian Packaging Covenant Organisation (APCO) is a not-for-profit organisation leading the development of a circular economy for packaging in Australia. Each year, APCO Members are required to submit an APCO Annual Report and Action Plan, which includes an overall performance level from 1 (Getting Started) to 5 (Beyond Best Practice).
Source: APCO
(2024)
2009 CHOICE Shonky Award
Named and shamed in the 2009 CHOICE Shonky Awards. L'Oreal's magazine ads are littered with terms such as 'clinically proven', 'dermo-clinical trials' and 'in vitro testing', while substances with obscure names tantalisingly obscure with names such as 'Tetrahydroxypropyl Ethylenediamine', 'Elemi PFA', 'Oli-vityl', 'Bioxilift' and 'Nutrileum' proliferate. But these are all just ads for cosmetics, which ' if they actually lived up to any clinically meaningful claims ' would have to be registered with authorities, which they're not.
Source: Choice
(2009)
Employer of Choice for Gender Equality
This company is listed by the Workplace Gender Equality Agency (WGEA) as a Employer of Choice for Gender Equality citation holder. The citation is designed to encourage, recognise and promote active commitment to achieving gender equality in Australian workplaces.
Source: WGEA
(2022)
Banksia Sustainability Award 2022
This company won the Diversity Award at the 2022 Banksia Sustainability Awards. "L'Oreal Australia is driving equal access, opportunities and rewards through their Gender Equality Strategy. This strategy revolves around four pillars - flexibility, pay equity, equal parental leave and career pathways."
Source: Banksia Foundation
(2022)
L'Oreal SA
Praise
Criticism
Information
CDP Climate Change score of A
In 2023, 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
(2023)
CDP Forests score of A
In 2023, 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
(2023)
Palm oil scorecard - WWF
The 2024 WWF Palm Oil Buyers Scorecard evaluates the progress and performance of 285 major retailers and manufacturer companies, focusing on 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 'leading the way' with a score of 20.31 out of a possible total of 24.
Source: WWF Palm Oil Scorecard
(2024)
CDP Water Security score of A
In 2023, 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
(2023)
15/20 in Social Benchmark
The 2024 Social Benchmark assesses the world's 2,000 most influential companies on their responsibility in meeting society's fundamental expectations towards three measurement areas: respecting human rights, providing decent work, and acting ethically. This company was assessed in 2024 and received a score of 15/20. The average score was an alarmingly low 4.6/20 and the highest score was 15.5/20.
Palm oil rating - WAZA
The PalmOil Scan app, produced by the World Association of Zoos and Aquariums (WAZA), rates companies on their commitment to sourcing sustainable palm oil. Companies are scored on their use of certified sustainable palm oil (CSPO), commitment to sourcing CSPO, on-the-ground conservation action, and membership to the RSPO. Companies can earn a rating of Excellent, Good, Poor or No Commitment. This company is rated "Good" (retrieved 18 Nov 2023).
Source: WAZA
(2023)
39.9% in Nature Benchmark
The Nature Benchmark ranks 816 companies across 20 industries on their efforts to protect our environment and its biodiversity. Companies were assessed in three phases between 2022 and 2024 using three measurement areas: governance and strategy; social inclusion and community impact; and ecosystems and biodiversity. This company was assessed in 2024 and is ranked #19/816, with a total score of 39.9/100.
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)
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)
24.52% for supply chain practices in China
The Green Supply Chain Corporate Information Transparency Index (CITI) evaluates consumer-facing companies that have a sizeable supply chain in China. The evaluation uses government supervision data and public information to assess the environmental management of their supply chains in China. This company received a score of 24.52/100 (retrieved 24 Nov 2023).
Source: IPE
(2023)
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)
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)
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)
Palm oil sourcing
In the 2018 Greenpeace report "The Final Countdown", this company was identified as sourcing palm oil from at least 20 of the 25 dirty palm oil producers identified in the report. 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. [Listed under Information due to age of report]
Source: Greenpeace
(2018)
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)
Nanoparticles in cosmetics
Testing commissioned by Friends of the Earth Australia found nanoparticles in foundations and concealers sold by L'Oreal.
Source: FOE
(2009)
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)
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)
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)
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)
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)
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)
Gender equality
This company appears on the 2023 Bloomberg Gender-Equality Index, signifying a commitment to supporting gender equality through policy development, representation, and transparency.
Source: Bloomberg
(2023)
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)
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)
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.
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
(2023)
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)
Ellen MacArthur Foundation partner
This company is a partner of the Ellen MacArthur Foundation, whose stated mission is to accelerate the transition to a circular economy. The Ellen MacArthur Foundation works with business, government and academia to build a framework for an economy that is restorative and regenerative by design.
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)
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
(2023)
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)
47.9% 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 47.9%.
Source: Forest 500
(2023)
C+ grade in Plastic Promises Scorecard
As You Sow's 2024 Plastic Promises Scorecard measures the corporate ambition and action of 225 large companies across six industries on six core pillars of plastic packaging pollution prevention: 1) Recyclability, 2) Reduction, 3) Recycled Content, 4) Recovery, 5) Reuse, and 6) Producer Responsibility. This company received a grade of C+.
Source: As You Sow
(2024)
'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)
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)
Company Details
Type:
Wholly-owned subsidiary
Founded:
1934
Revenue:
605 million AUD
(2018)
Employees:
910
(2018)
Contact Details
Address:
564 St Kilda Road, Melbourne, VIC, 3000, Australia
Phone:
03 8680 0000
Freecall:
1300 659 359
Website:
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L'Oreal Australia
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