L'Oréal - 2018 Registration Document

L’Oréal’s corporate social, environmental and societal responsibility POLICIES, PERFOR MANCE INDICATORS AND RESULTS

TYPES OF AUDITS CONDUCTED IN 2018

OBJECTIVES

METHODOLOGY

2018 AUDITS

Ensuring that the technical equipment, processes and operating methods implemented by management and used by employees do not carry risks of damage to their health, safety or the environment. Ensuring that the sites comply with the significant regulatory requirements of their activities. Giving the Group’s General Management objective knowledge of the risks in the areas of EHS on the L’Oréal sites and providing the assurance that they are under control. Measuring and developing management’s leadership and internal EHS culture so that EHS is at the heart of the responsibilities of all operational managers.

These audits cover all international operations. They are carried out by external independent experts.

These risk audits were carried out at 4 distribution centres.

Risk audits

3

All of the Group’s industrial sites and research centres are subject to regular EHS culture audits. Such audits are carried out by internal EHS specialists through interviews with 20-30% of the site’s workforce.

Thse EHS culture audit were carried out at 4 administrative sites.

EHS culture audits

This combined audit is carried out with the help of external independent

These combined audits were carried out at 4 plants, 7 distribution centres, 2 research centres and 3 administrative sites (including 1 combined administrative site and research centre).

Combined EHS Risk and Culture Audits

Combination of the risk and culture audits.

experts for the risks aspects and by internal teams for the culture-related aspects.

This audit is conducted for plants on the basis of the reference manuals for each of the EHS, Quality and Performance professions, with the help of external independent experts as regards EHS risks, and internal experts for each of the audited areas.

Combined Quality, Environment, Health, Safety and Performance Audits

Optimising the professional practices audits at a site by combining the various existing Operations Direction audit programmes.

These combined audits were carried out at 10 plants (risks and culture), 1 plant (culture), and 2 distribution centres (risks and culture).

Checking that the buildings are in compliance with the Group’s real estate procedures, and on the due and proper completion of extension or renovation operations and preservation of the assets. Since 2009, these audits have included an additional component: internal air quality and energy performance. Verifying the production conditions of the Group’s industrial subcontractors (manufacture of products, particularly aerosols, inflammable products, etc.)

The Real Estate Department carries out annual audits of the Company’s real estate assets on a rotating basis with the assistance of external independent experts.

Real estate audits

1 site was audited.

These audits are carried out with the assistance of external independent experts. If necessary, a follow-up audit is scheduled. These audits are carried out with the assistance of external independent experts. The evaluation of the site following the audit determines the action plan to be implemented and the frequency of future audits.

Industrial subcontractor audits

55 sites were audited.

The objective is to evaluate the level of EHS management of the site and to identify the presence of insufficiently controlled risks.

Logistics subcontractor audits

23 logistics subcontractors were audited.

In addition to these programmes, prevention inspections are regularly conducted by experts from the Group’s insurance companies as part of external Fire and Environment insurance policies. In 2018, 5 plants, 1 distribution centre and 1 research centre in 3 countries (France, Russia, United States) were inspected with regard to environmental risks, and 17 sites in 10

countries (China, France, Germany, India, Indonesia, Netherlands, Poland, Spain, Turkey, United States) with regard to

fire prevention.

Of the audits described above, 96% involved a risk component which is always carried out by external independent auditors specialising in the area being audited.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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