L'Oréal - 2018 Registration Document

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

A continuous improvement process The implementation of the standards, the spread of the L’Oréal EHS culture and the governance system in place contribute the continuous improvement of the Group’s EHS performance. Major developments occurring within the framework of the Group’s operations are also included, with this same aim; whether it involves building a new plant, purchasing new equipment or defining new processes, each industrial development is an opportunity to reduce the environmental footprint and safety risks. Lastly, some major programmes within the EHS, or more generally within the Group, are vectors for progress in the areas of safety or the environment in all entities, and are the subject of detailed improvement plans, whose effectiveness is evaluated during audits: For all L’Oréal sites, this programme covers activities posing risks that, if not controlled, could result in serious injury or illness. It extends over time the aim of moving towards “zero accidents” by ensuring the sustainability of actions and defining the requirements in terms of preparation for emergencies following an incident. It is backed up by a three-year communication campaign relayed by managers to cover the 10 identified families of LIFE risks. The Sharing Beauty With All programme The programme’s Producing Sustainably component has contributed to the continuous improvement in the sites’ environmental performance for several years, notably via the definition and dissemination of best practices in terms of energy efficiency, CO 2 emissions, consumption of water and natural resources, and waste reduction and treatment. It sets reduction targets for reducing CO 2 emissions by 60% in absolute terms, water consumption in litres per finished goods by 60%, and waste generation in grams per finished product by 60%, with no more waste landfilled, between 2005 and 2020. Major achievements and technological innovations have been made in each of the four areas (CO 2 , water, waste, biodiversity), some involving the implementation of completely integrated solutions taking into consideration all the The Life programme (Life threatening Incidents or Fatality Event)

environmental impacts. Some plants, like those in Libramont (Belgium), Burgos (Spain) and Settimo (Italy), have facilities on their sites making it possible to produce renewable energy (from biomethanation, biomass or photovoltaics), to treat and recycle part of the industrial water, and to reduce waste generation while promoting waste recovery. The programme’s Working Sustainably component aims to achieve continuous improvement of the environmental performance of administrative sites and research centres. It lays down targets for reducing CO 2 emissions by 60% in absolute terms, energy consumption in kWh per 100 hours worked by 20%, water consumption in litres per 100 hours worked by 20% and waste generation in kg per 100 hours worked by 20%, between 2016 and 2020. It aims to reinforce the commitment of the administrative sites and the research centres with regard to the environment and to encourage them to identify and formalise improvement plans. It also involves engaging employees at these sites in the development of eco-responsible behaviours. For instance, the Chevilly-Larue research centre has developed a programme aimed at integrating local biodiversity, which was recognised by the Ministry for the Environment through the “Business and Environment” prize in 2015. In 2018, this site also became a “birdlife sanctuary” through the efforts of the NGO LPO (League for the Protection of Birds) to create a refuge. The Group is committed to an ISO/OHSAS certification process to permanently anchoring EHS performance on its industrial sites: In 2003, L’Oréal embarked on the process of ISO 14001 s (Environmental Management) certification of all of its plants. As of the end of 2018, 85% of plants were ISO 14001 certified, i.e. 34 plants out of 40. Over the next few years, the last plants acquired or those recently built will be ISO 14001 certified. In 2015, the Group launched an ISO 50001 “Energy s Management” certification programme with the objective of certifying all of its plants by 2020, in line with a clearly defined roadmap. As of the end of 2018, 60% of plants had been ISO 50001 certified, i.e. 24 plants, of which 18 in Europe, 3 in the United States, 1 in Brazil and 2 in China.

ISO 50001

2018 60%

2020 TARGETS

100%

Some administrative sites and research centres have also initiated this process. The Madrid site was the first of the Group’s administrative sites to receive ISO 50001 certification in 2017.

Since 2007, L’Oréal has been involved in OHSAS 18001 and s then ISO 45001 “Occupational Health and Safety Management” certification of all of its plants. As of the end of 2018, 83% of the Group’s plants were OHSAS 18001 or ISO 45001 certified, i.e. 33 sites.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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