L'Oréal - 2018 Registration Document

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

THE “DRY FACTORY” CONCEPT The “dry factory” concept involves only using town mains water for human consumption and for producing high-quality water used as raw material for product manufacture; the water required for industrial processes (cleaning equipment, steam production, etc.) is derived from reused water or water that is recycled continuously on the site. It involves the implementation of a two-step system: optimisation of industrial processes: improvements to s industrial processes have contributed to an 80% reduction in water requirements compared with 2005;

the installation of a water recycling system: industrial s effluents, after pre-treatment in the on-site treatment plant, are reprocessed using various technologies (ultrafiltration, reverse osmosis, nanofiltration, etc.) in order to extract very high quality water. This is then used continuously to clean production tools and services as a replacement for town mains water. As such, water requirements for utilities are fully covered. The "dry factory" concept was adopted for the first time in 2017 by the Burgos plant in Spain. In 2018, it was extended to the Vorsino and Settimo plants in Russia and Italy. It will be rolled out gradually to all plants where the conditions are met for its implementation.

WATER CONSUMPTION OF ADMINISTRATIVE SITES AND RESEARCH CENTERS

WATER CONSUMPTION OF INDUSTRIAL SITES ;

2018

2005

-11%

- 48% (in litres per finished product)

2016

2018

(in litres per 100 hours worked)

2020 TARGET

-60%

Total water consumption in the plants and distribution centres was 2,302 thousand m 3 ; in 2018, representing a 4% increase in absolute terms compared with 2017. The total water consumption of administrative sites and research centres was 412,000 m 3 in 2018, which represents 574 l/100h worked.

; The Statutory Auditors have expressed a reasonable assurance on this indicator.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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