L'Oréal - 2018 Registration Document

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

Group greenhouse gas emissions (Scopes 1 and 2, as per the GHG Protocol) To limit its impact on climate change and fulfil its objective of reducing greenhouse gas emissions (Scopes 1 and 2), L’Oréal has implemented a strategy based on three pillars: reducing its energy requirements by improving energy 1. efficiency across all its facilities (buildings, equipment, etc.); increasing the use of local renewable energy wherever 2. possible; achieving the targets defined for the sites without 3. recourse to carbon offsetting.

By 2016, the 2020 targets had been exceeded, with a 67% reduction in emissions. In 2018, a 77% reduction in CO 2 emissions was achieved on a 38% increase in production compared with 2005, demonstrating the Group’s ability to decorrelate its growth from its environmental impact. Lastly, in 2015, L’Oréal undertook to define Science Based Targets (SBT) to reduce its greenhouse gas emissions across its entire value chain and over the long term, in accordance with the Paris Climate Change Agreement. In December 2017, the “SBT” initiative validated the Group’s proposal: L’Oréal is committed to reducing greenhouse gas emissions from its Scopes 1, 2 and 3 (1) by 25% in absolute terms by 2030, compared with 2016 basline. In particular, L’Oréal Group is committed to reducing greenhouse gases from all of the sites that it operates by 100%.

3

CO 2

SCOPE 1 OF INDUSTRIAL SITES

CO 2 SCOPE 1 OF ADMINISTRATIVE SITES AND RESEARCH CENTERS (THOUSANDS OF TONNES EQUIVALENT) (2)

(THOUSANDS OF TONNES EQUIVALENT) (2)

54.6

49.7

46.6 5

10,7

8,6

7,7

2018

2016 2017

2018

2016

2017

; The Statutory Auditors have expressed a reasonable assurance with regard to this indicator.

As per the Greenhouse Gas Protocol (GHG Protocol): Scope 1: “direct emissions from sources owned or controlled by the reporting entity”; (1) Scope 2: “indirect emissions in connection with the consumption of electricity, heat or steam necessary for production of the product or the operations of the reporting entity”; Scope 3: “other indirect emissions related to the supply chain (‘upstream’ emissions) and the use of products and services during their life cycle (‘downstream’ emissions)”. The Group’s emissions are now calculated in accordance with the terms defined by the GHG protocol, and monitored in accordance with the (2) market-based CO 2 indicator. The monitoring indicator for CO 2 emissions includes emissions related to refrigerant leaks.

REGISTRATION DOCUMENT / L'ORÉAL 2018

161