L'Oréal - 2018 Registration Document

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

improvement in energy efficiency; s promotion of productive, low-carbon agricultural practices; s development of forest management and agroforestry s projects. To evaluate and support this approach, L’Oréal has developed, with the help of a committee of independent experts specialising in carbon, the Carbon Balanced programme framework, a methodology for selecting, developing and monitoring such projects. This document is shared with all suppliers, project leaders and the auditing bodies involved. Example in Burkina Faso: 3 years of collaboration whose impacts far exceed carbon gains Since 2016, L’Oréal has been supporting the activities of social enterprise Nafa Naana, which has enabled more than 4,200 women, all shea gatherers in the South-West region of Burkina Faso, to access improved cooking equipment, fighting energy poverty and its consequences in terms of poverty and deforestation. Since its launch, the project has avoided the emission of more than 9,000 teqCO 2 , and the cutting of more than 4,500 tonnes of Reducing energy consumption For over 20 years, the Group has been endeavouring to reduce its energy consumption. These efforts essentially concern two areas: ongoing improvement of industrial processes and the s performance of associated equipment; optimisation of energy consumption in the buildings. In this s respect, any new Group building has to comply with the strictest environmental standards. THE ENERGY EFFICIENCY OF PLANTS HAS IMPROVED THANKS TO THE ENERGYSCAN APPROACH To support our Sharing Beauty With All objectives, and to facilitate ISO 50001 energy efficiency certification, the Energyscan tool, a standard tool for the analysis and exhaustive mapping of energy consumption, has now been rolled out at each of the Group’s plants. This tool allows the different energy utilisation items (utilities, production, buildings) to be categorised and the consumption for each of these categories to be identified.

In 2018, L’Oréal continued to exchange views with external experts on issues relating to Insetting mechanisms, notably within the International Insetting Platform, or on methodologies for accounting for Scope 3 emission reductions by joining the Value chain intervention consortium led by the Gold Standard. It has been estimated that the five energy and forestry projects implemented since 2015 made it possible to generate carbon savings of 59,341 tonnes of CO 2 equivalent in 2018.

3

wood traditionally harvested in forests. The use of the 5,370 items of cooking equipment, namely improved cooking stoves, has reduced unpaid domestic work by women – mostly spent preparing meals and collecting wood, often at the expense of income-generating activities – by more than 500,000 hours. Thanks to the wood savings achieved, energy expenditure, representing up to 30% of the household budget, has been reduced by more than CFA

45 million in the space of three years.

This policy reduced the consumption of plants and distribution centres in kWh per finished product by 36% between 2005 and 2018, and the consumption of administrative sites and research centres by 11% in kWh/100h worked between 2016 and 2018.

The best performance levels for a given use are established as a standard for plants with similar technology and then represent a target for each plant. A platform for exchanging “Best Practices” between sites complements The projects making it possible to achieve these targets are identified and quantified on each site and the completion of such projects scheduled over time. This forms the Group’s “Energy roadmap”, the performance of which is monitored on a monthly basis. this diagnostic tool.

REGISTRATION DOCUMENT / L'ORÉAL 2018

163