L'Oréal US: 1st Company Worldwide to Receive New EDGEplus Certification for Gender Pay Equity

L'Oréal USA Becomes First Company Worldwideto Receive New EDGEplus Certification Addressing Intersectional Gender Equity

Beauty leader creates a pay assessment toolbased on EDGE's methodology to achieve organizational gender pay equity

NEW YORK AND ZUG, [AUGUST 26, 2021] -L'Oréal USA is the first company worldwide to be EDGEplus certified, a new certification from the EDGE (Economic Dividends for Gender Equality) global standard that enables organizations to go beyond gender and measure the intersectionality between gender and race/ethnicity, gender identity, sexual orientation, age, disability and nationality, the company announced jointly with the EDGE Certified Foundation today on U.S. Women's Equality Day.

As part of the certification process, L'Oréal developed an internal global pay measurement toolbased on the EDGE methodologyto consistently measure and monitor equitable pay across its global workforce. The results demonstrated that L'Oréal USA exceeded the EDGE standard for pay equity at the organizational level, virtually eliminating a pay gap based on gender, controlling for observable and explainable factors such as performance.

EDGEplus certification was granted to L'Oréal USA after an independent verification of the findings by third-party auditors. L'Oréal USA's certification accelerates its progress on a journey toward gender equity and gender balance, inclusive of multiple dimensions of diversity at all levels of the company. This work was first certified in 2014 when L'Oréal USA was one of the first companies worldwide - and the first company in the United States - to be EDGE certified.

'We are proud to pioneer the new EDGEplus certification for the beauty industry and other sectors around the world and are motivated by this milestone to accelerate our progress,' said Stéphane Rinderknech, President & CEO of L'Oréal USA. 'For topics as important as gender equality and pay equity for all, it is reassuring to have a partner like EDGE to validate the path we have taken and support us in the next steps we must take to achieve our goals. Our diversity and inclusion mission requires a collective effort, and our recent results are a testament to L'Oréal's commitment to developing and fostering a culture of inclusion, belonging, and growth.'

L'Oréal USA began the EDGEplus certification processin January 2021. The processincludeda comprehensive review of the company's DE&I policies and practices to ensure equitable career opportunities, in addition to a statistical analysis of the entire U.S. workforce of more than 11,000 employees. L'Oréal USA received feedback from more than 3,500 of its employees on perceptions of the company's inclusive culture, fair opportunities for promotion and career advancement, equitable pay, and flexible work arrangements.

'L'Oréal USA's investment in EDGE and the EDGEplus certification underscores our responsibility to consistently measure gender equity through various dimensions of diversity - race/ethnicity, gender identity, disability, age and veteran status - in a sustainable way,' said Angela Guy, Chief Diversityand Inclusion Officer of L'Oréal USA. 'Overall, we showed even greater representation of women at the senior leadership level, including those in the pipeline and improved in most of the employee perceptions on a variety of key metrics.'

Since its launch at the World Economic Forum in January 2011, more than 250 large organizations in 48countries, representing 37industries and encompassing more than 2.4 million employees, have used the EDGE assessment methodology and certification process to create an optimal, balanced workplace for men and women. The methodology and standard measurement allow for consistent analysis across companies and industries. EDGE measures where organizations stand in terms of representation, pay equity, effectiveness of policies and practices to ensure equitable career flows, as well as inclusiveness of their culture.

'What is remarkable about L'Oréal USA is just how intentional, prioritized, systematic and structured they have been in their DE&I journey,' said Aniela Unguresan, Founder, EDGE Certified Foundation.'Their certification at the EDGEplus level is a clear demonstration of the company's commitment and leadership in the DE&I arena.'

L'Oréal USA has implementedprograms, policies and practices that support the advancement of women in the workplace and ensure equity across various dimensions of diversity. In 2020, women represented 56% of L'Oréal's leadership positions in the U.S. The company's diverse leadership also play a critical role in L'Oréal USA's employee-driven Think Tanks focused on various aspects of workforce diversity, including[email protected]'Oréal, which advances initiatives that protect LGBTQIA+ rights, the Women of Color Think Tank, L'Oréal for Women, Women in Leadership in Operations, Women in Technology, [email protected] 'Oreal, VALOR (Veteransat L'Oréal), and Quiet Leaders at L'Oréal, which acknowledges introverts in the workplace.Additionally, L'Oréal USA offers a minimum of 16 weeks paid leave for mothers and eight weeks for other parents (fathers and co-parents). As part of L'Oréal USA's permanent hybrid work model, eligible employees also have the flexibility to work 40% of their time remotely each week.

Furthermore, L'Oréal's work to achieve intersectional gender equity throughout its organization has been recognized by leading organizations.

• For the fourth consecutive year, L'Oréal Group was included in Bloomberg's 2021 Gender Equality Index (GEI) based on criteria such as female leadership and talent pipeline, gender pay parity, inclusive culture, and sexual harassment policies.EDGE also partners with the Bloomberg GEI and is the only DE&I certification to be incorporated as a scoring criteriainto leading ESG ratings.

• L'Oréal USA has been recognized by Seramount(formerly known as Working Mother Media) with the Seramount2021 Inclusion Index Award, which recognizes companies for implementing programs, policies, and accountability measures to create more inclusive paths to success. The company has also been named 2021 Best Companies for Multicultural Women, Top Companies for Executive Women, and 100 Best Companies.

• For the fourth year in a row, L'Oréal USA has earned a perfect score of 100 on the 2021 Disability Equality Index (DEI), the nation's most comprehensive annual benchmarking tool for disability inclusion. The company also scored 100 on the 2021 Human Rights Campaign Foundation's Corporate Equality Index, earning it the designation of 'Best Place to Work for LGBTQ+ Equality' for the fourth consecutive year.

About L'OréalUSA
L'Oréal USA is the largest subsidiary of the L'Oréal Group, the world's leading beauty company. Through its management of over 35 iconic beauty brands, L'Oréal USA has generated more than $7 billion in sales annually. Products are available across all distribution channels including hair salons, department stores, mass market, pharmacies, medi-spas, e-commerce and more. L'Oréal USA's commitment to growth is generated through sustainable innovation and driven by the company's L'Oréal for the Future ambition which demonstrates sustainable development across the Group's value chain. The company is headquartered in New York City, employs more than 11,000 people, and operates administrative, research, manufacturing, and distribution facilities across 16 states.

About EDGE Certification
EDGE is the only global assessment methodology and business certification standard for gender and intersectional equity. The EDGE assessment methodology was developed by the EDGE Certified Foundation and launched at the World Economic Forum in 2011. EDGE Certification has been designed to help companies not only create an optimal workplace for women and men, but also benefit from it. EDGE stands for Economic Dividends for Gender Equality and is distinguished by its rigor and focus on business impact. The methodology uses a business, rather than theoretical approach that incorporates benchmarking, metrics, and accountability into the process. It assesses policies, practices, and numbers across five different areas of analysis: equal pay for equivalent work, recruitment and promotion, leadership development training and mentoring, flexible working, and company culture. EDGE Certification has received the endorsement of business, government, and academic leaders from around the world.