L'Oréal - 2018 Registration Document

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

The Statutory Auditors have expressed a reasonable assurance with regard to this indicator. competition. The selection criteria are the reduction in CO 2 emissions, innovation, collaboration and replicability. 24 initiatives were submitted, and each area voted for its winning For the first time and so as further to engage and value the initiative in December 2018. The four finalists, selected to Group’s transport community, a CO 2 Challenge was launched represent the Group’s four geographies, will take part in the in May 2018. This challenge allows L’Oréal entities in each area 2019 global challenge. to highlight their local initiatives and compete in a global

WINNING INITIATIVES OF THE FIRST STAGE OF THE CO 2 CHALLENGE #2018 EDITION For Europe, the winner was the Nordics Hub. The s Danish-based Nordics Hub, in collaboration with a local sustainable transport partner, is to set up “mini”-urban power plants to allow the use of electric vehicles for deliveries in certain streets in central Copenhagen. The pilot will start in early 2019 and will use the subsidiary’s parking spaces and charging stations for the duration of the test. This initiative will save 32,727 kg of CO 2 per year. For APAC, the winner was China with “Go Direct”. To s optimise distribution between the L’Oréal China distribution centre, the e-Distributor distribution centre in China and the JD.com regional centre, one of the country’s leading e-commerce platforms, the subsidiary has collaborated with the latter. This “Go Direct” initiative enabled the subsidiary to make deliveries directly to its client’s distribution centres, without first delivering to the distributor’s centre. The “Go Direct” project has had numerous results: a 60% reduction in CO 2 emissions, a three-day improvement in delivery times, an increase in the order compliance rate from 80% to 98%, and a 50% reduction in unloading-related risk. For the Africa-Middle East zone, the Cairo plant won the s challenge with the “Slipsheet” project. The Cairo plant and Dubai distribution centre have joined forces to implement new loading processes and make a shared

investment in hardware to introduce slipsheets (cardboard supports that replace traditional wooden pallets). Not only are they lighter and cheaper, but they also optimise container use, with use at 90%, vs. 65% with standard pallets. This project resulted in a 25% reduction in CO 2 emissions and reduced the number of deliveries by 20%. The Africa Middle East zone has extended the project to other countries in the zone, notably Lebanon. For the Hispanic zone and Brazil, the winner was Brazil. Its s initiative allows deliveries between the Sao Paulo plant and the Rio de Janeiro business centre to shift from using diesel to biomethane. L’Oréal is a pioneer in biomethane energy in Brazil; not only does it enable a reduction in CO 2 emissions by between 75% and 95%, but it also has a positive effect on waste reduction. Another notable initiative is the “Milk Run” shipping initiative in Canada. In collaboration with Walmart, one of the Group’s largest customers in Canada, the project consists in consolidating orders shipped in “Milk Runs” so as to reduce mileage and transport costs. This initiative, part of the Walmart Freight Program, not only generates 93 tonnes in CO 2 savings per year, but also saved more than €33,000 in 2018. Canada plans to roll out this initiative to all customers and also to flows between plants and the distribution centre. Tonnages shipped by the Group by air freight increased by 41% in 2018, resulting in a 42% increase in CO 2 emissions and a deterioration in the overall indicator. The increase stems chiefly from flows from our plants to the Luxury division’s Asian markets, as well as deliveries to our Travel Retail customers in Asia. By contrast, road transport emissions did not increase in 2018, despite a 3% increase in tonnages. Over the 2011-2018 period, road transport emissions increased four times slowler than tonnages shipped. Preserving water resources B/ L’Oréal is committed to preserving water resources throughout its value chain, especially on each of the sites operated. As part of the Sharing Beauty With All programme, the Group has raised its ambition by undertaking to reduce the water consumption of its plants and distribution centres by 60% (l/FP) compared with 2005, and the water consumed by its administrative sites and research centres by 20% (1/100 hours worked), where the Producing Sustainably and Working Sustainably programmes set a goal for the sustainable management of this vital resource. The action plans implemented around the world are based notably on the following key principles:

-8%

2011

2018

(in absolute terms: tonnes of CO 2 at constant scope, as per the GHG Protocol)

Product transport resulted in 413,568 tonnes of CO 2

emissions

in 2018,representing 0.0256 g CO 2

/sales unit/km.

OBJECTIF 2020

-20%

REGISTRATION DOCUMENT / L'ORÉAL 2018

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