L'Oréal - 2018 Registration Document

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

An internal Group communication system exists so that each site is informed when accidents, near accidents or significant incidents occur. Specific communication is circulated worldwide so that the facts and lessons to be learned, the existing rules and the new requirements to be applied are taken into account. A process of integrating new sites The Group regularly acquires new sites. A formal integration process then makes it possible to provide these sites (1) with extra support and assistance in order for them to be brought into compliance with all the EHS requirements defined, and to bring the potential risks under control. The purpose of this process is to enable these sites to rapidly achieve the performance level expected by the Group. It comprises: a regulatory compliance audit carried out by an 1. independent third party within 6 months of the acquisition; deployment of the EHS processes described above (EHS 2. manual, EHS reporting, training, audit programme); monitoring of the integration within the Group. 3. Managing risks and controlling the 3.3.1.2. impact of sites on their environment The Group systematically issues warnings about the environmental impacts of its activities in the places where it operates, whether they concern soil, water or the air. Controlling and limiting risks to the environment Each site has a general environmental analysis that must be updated at least once every three years or whenever a significant change occurs. All activities performed by employees (permanent or temporary) are covered by an environmental aspects analysis, including routine and maintenance activities. The preventive measures described in the internal procedures must be complied with in order to avoid all forms of pollution (soil, surface water, groundwater, air, etc.). Contingency plans in the event of accidental events are planned and are the subject of training for the people concerned. The proper implementation of these measures is verified during preventive inspections by insurers and periodic EHS audits. Depending on the site, if significant risks are identified or if the L’Oréal standards or regulations impose specific requirements, a more detailed evaluation is carried out for the activities concerned. Appropriate action plans – with immediate action where necessary – are implemented to reduce significant risks to an acceptable level. Any establishment or renovation of a site, any introduction of new equipment or manufacturing processes, and any changes in industrial processes also give rise to a risk assessment and action plans to reduce the potential impacts.

In the same way, at the time of the purchase of land or buildings, L’Oréal conducts due diligence, which includes, in particular, a review of the environmental aspects. Land use L’Oréal’s land use commitments are based on the following fundamentals: establish an ecological inventory of the site. The purpose of s the inventory is to preserve, restore and develop the site’s biodiversity in its ecosystem. The inventory is performed by a local expert using the SITESv2 reference guide for sustainable land design and development, which is aligned with LEED environmental certification (Leadership in Energy and Environmental Design); reduce the impact of construction on the environment, for s instance by choosing a zone that is already industrially developed, or an existing industrial site or industrial wasteland, or, for administrative sites, an urban area with a high population density close to a residential neighbourhood, ideally located in the city centre or in a neighbourhood well served by public transport; if possible, place the site on land located more than s 30 metres from any body of water (sea, ponds, lakes, rivers, etc.), outside natural areas, public green spaces, land with endangered or threatened species, or any other undeveloped area (farmland, etc.); prevent soil erosion which may result from rainwater runoff or s wind erosion during construction, inter alia by protecting the arable soil layer which is stored to enable it to be reused; maintain or restore native natural habitats and biodiversity; s maximise the green space areas on the site (even in excess s of the local regulations) and minimising the impermeable areas or natural spaces; remediate polluted sites (industrial wasteland) where s development is more difficult due to environmental contamination (real contamination or contamination perceived as such), thus avoiding construction on natural or undeveloped land. Surface water The Group has adopted standards for rainwater management in order to monitor its quality and avoid polluting it. For instance, sites are equipped with oil separators for parking areas. Similarly, any storage and operating area where spills are liable to occur must have adequate retention capacities. Sites must also have holding capacity to contain fire extinguishing water. No spills were reported in 2018.

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Does not apply to stores. (1)

REGISTRATION DOCUMENT / L'ORÉAL 2018

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