L'Oréal - 2018 Registration Document

L’Oréal’s corporate social, environmental and societal responsibility INTRODUCTION

CONSTANT DIALOGUE 3.1.2. WITH STAKEHOLDERS

The materiality analysis took place in 4 phases: identification and ranking of stakeholder expectations; s identification and ranking of Sustainable Development s challenges for L’Oréal; establishment of materiality; s review of the Sustainable Development strategy and s L’Oréal’s indicators. Thanks to this process, L’Oréal is able at regular intervals to revise the priorities of its Sustainable Development strategy, assess the relevance of its indicators and adapt its reporting by communicating on the most “material” topics, namely those that are at the heart of the concerns of stakeholders and the main challenges for the Group. 2 nd phase: in 2013 the Group set up a dialogue platform hosted on the loreal.com website making it possible to continue this dialogue on-line, offering the possibility for NGOs, associations and non-profit organisations to interact with the Group’s experts. 3 rd phase : since 2013, L’Oréal has set up special-purpose panels and consultations with regard to various topics in order to include the views of NGOs, associations, non-profit organisations and experts in its thought process and its projects. In 2016, the Group updated its Sustainable Development materiality analysis. Each year, the Group dialogues with its various stakeholders in order to challenge its projects and progress. Over 60% of the Group’s employees took part in Ethics Day in 2018, and more than 6,800 questions were raised worldwide. Employees were also asked to respond to an ethics survey in 2018. During annual Business Reviews, L’Oréal discusses 5 main subjects with its suppliers: quality, Corporate Social Responsibility, innovation, delivery/supply chain and competitiveness. In 2018, 325 Business Reviews took place. In 2018, extending the work of the Advisory Committee established in 2016, L’Oréal continued its policy of actively listening to consumers on sustainable development issues through a number of studies conducted with consumer panels in the United States, China and Europe with a view to understanding their expectations and fine-tuning its policies. Publication of an interactive and enriched digital Annual Report; s Publication in 2018 of the second edition of its Integrated s Report; Participation in 2018 in the Actionaria Stock Market Fair for the s 15 th consecutive year; Organisation of around 10 meetings and site visits with s shareholders from all French regions; Distribution of shareholders’ letters and newsletters; s Presentation of L’Oréal China by the country CEO, member of the s Executive Committee at the Annual General Meeting in April 2018. SOME INITIATIVES IN 2018

L’Oréal is keenly aware that a company can only grow and prosper if it cares about its ecosystem, which is made up of many actors. The Group attaches great importance to dialogue with all stakeholders. Within the framework of ongoing dialogue and as part of a process aimed at making continual progress, L’Oréal endeavours to take into account of stakeholder expectations in its strategy. For this purpose, the Group has defined and developed a method of ad hoc interaction, that it considers the most efficient and appropriate, with all those involved. The dialogue conducted by L’Oréal with its stakeholders has gained importance over time. In the Sharing Beauty With All programme, for instance, it has seen three major phases: 1 st phase : upstream of the definition of the Group’s Sharing Beauty With All commitments with regard to Sustainable Development, between 2011 and 2013 L’Oréal engaged in dialogue with 754 organisations, including an in-person dialogue with 232 of them, through forums organised by the Group in 8 key countries. In 2012, the Group launched a “materiality analysis” to establish the priority focuses of its Sustainable Development strategy. This made it possible to identify 29 topics for attention shared by the stakeholders with regard to the Group. L’Oréal was then able to compare stakeholder expectations with the definition of its own strategy.

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The table below highlights some examples among the initiatives taken in 2018.

RELATIONSHIPS MAINTAINED

L’Oréal sets up a large number of dialogue arrangements with its employees to ensure their health, safety and well-being at work while listening to their concerns. L’Oréal maintains an extensive dialogue with its suppliers and shares with them its ambitions and best practices in the area of Sustainable Development.

Employees

Suppliers

L’Oréal is heedful of both current and future needs and concerns of its consumers, in particular with regard to Sustainable Development.

Consumers

L’Oréal is committed to developing a relationship of trust with all shareholders. To this end, the Financial Communication Department offers a range of multimedia tools, organises regular meetings with shareholders and their associations, and takes part in market initiatives.

Shareholders

REGISTRATION DOCUMENT / L'ORÉAL 2018

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