THE “

L'ORÉAL

FOR WOMEN”

ENDOWMENT FUND

Financial years 2020 to 2022

Organisation receiving donations

February 2025

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Executive Summary

An endowment fund dedicated to helping women

in vulnerable situations, closely managed by its founder

Established in summer 2020 by L'Oréal, against the backdrop of a health crisis that

exacerbated social inequalities, the “L'Oréal for Women” endowment fund aims to help

vulnerable women in France and abroad who are in precarious social situations, refugees,

victims of violence or suffering from disabilities.

Endowed by its founder with €50 million for its first three years of existence –

to which

an additional €30 million was added during the three

-year renewal for 2023-2026

–

and

operating with human and administrative resources provided by L'Oréal, the fund forms part of

the group's broader social and environmental responsibility strategy. However, its activities are

intended to serve the public interest and are distinct from the commercial activities of the latter.

The board of directors, composed exclusively of senior executives of the founder, is

actively involved in the governance of the fund and closely monitors its strategic direction. To

this end, it has appointed an advisory committee, provided for in the bylaws and made up of

qualified individuals specialising in issues related to “

vulnerability and gender

”, as well as a

committee of experts tasked with advising the fund’s governance and ope

rations on identified

needs in France.

These committees, the creation of which demonstrates the founder's commitment to

pluralism and openness, are nevertheless rarely consulted and their discussions are not

subject to any formal procedure. Progress must be made to ensure that their involvement

alongside the board of directors is effective, tangible and traceable. Furthermore, if the role of

the France Experts Committee is deemed important to preserve, its existence and

responsibilities should be formally

incorporated into the fund’s bylaws.

This necessary formalisation of the added value provided by the advisory bodies will also

make it possible to ensure more effective compliance with the rules of ethics and conflict of

interest prevention issued by the endowment fund, which must also apply to all members of

the board of directors and the fund's operational team.

Following the audit by the Court of Accounts, the endowment fund undertook to make

the necessary improvements on all these points without delay.

An active and diversified support policy, which could be improved

by stricter compliance with the procedures put in place

Over the first three years, the financial aid paid to associations and organisations totalled

€27.4 million (plus €23.3 million dis

tributed in 2023). After two years of rapid growth in activity,

the endowment fund financed 150 associations or organisations in 2022 (compared with only

21 in 2020), with beneficiaries based abroad accounting for 45 % of total aid disbursed.

Keen from the outset to focus on grassroots associations capable of carrying out

concrete projects with measurable effects for women in vulnerable situations, the fund

broadened the scope of its interventions during the three years under review. In light of the

impact studies conducted, it has strengthened its support for associations with growth and

innovation potential (to which higher individual grants are now awarded) and has decided to

provide longer-term support by developing multi-year funding.

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The internal procedures designed to govern the selection of applications, the allocation

of aid and the monitoring of the implementation of supported projects are precise and of high

quality. However, their practical implementation needs to be ensured more effectively on a

day-to-day basis.

For example, although the selection of applications is based on the general guidelines

laid down by the board of directors, it is essentially the responsibility of the operational team

and the fund's management. The method used could be improved and enhanced by drawing

on the expertise of advisory committees to examine all or some of the applications, which the

endowment fund has undertaken to implement following the audit by the Court of Accounts.

Expenditure commitments also comply with clear general rules, but regrettable

omissions were identified in some cases during the period under review, as the delegation of

powers and responsibilities in force was not fully respected.

Finally, the monitoring of the implementation of the projects supported is, in practice, too

formal and not sufficiently rigorous. The activity data reported by beneficiaries, such as

financial reports, require more thorough checks than those carried out to date by the fund's

departments, where necessary by calling on external service providers to exercise the right of

audit imposed on beneficiaries in the financing agreements.

These rigorous requirements for the selection and monitoring of supported projects are

all the more necessary when the fund assists associations whose social mission goes beyond

the mere defence of vulnerable women. In such cases, it is essential that all precautions be

taken to ensure strict compliance with the statutory corporate purpose of the endowment fund.

The endowment fund has taken note of the Court of Accounts' findings in this regard and

has stated its determination to strengthen the monitoring of the implementation of the

organisations or projects supported without delay.

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Opinion of compliance with reservation

Following its audit of the financial years 2020 to 2022, in light of the procedures it has

carried out and within the limits of its powers under Article L. 111-10 of the financial courts

code, the Court of Accounts finds that the expenditure incurred by th

e “L’Oréal for Women”

endowment fund during the years under review is consistent with the objectives it pursues in

accordance with its bylaws.

However, the Court issues the following reservation:

-

the financial aid granted to certain associations whose mission is not primarily focused

on defending vulnerable women and girls is not subject to sufficiently precise prior

agreements or sufficiently thorough monitoring to ensure that it is strictly in line with the

corporate purpose of the endowment fund.