L'Oréal - 2018 Registration Document

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

Reducing waste generation at source Waste reduction requires the involvement of a large number of players. It is an environmental performance indicator, first and foremost for its industrial sites but also across the Group’s value chain: from packaging, in which the teams are mobilised through s an eco-design approach to packaging articles and transport packaging (reduction of weight or volume, optimisation, reuse, etc.) aimed at reducing waste starting with the design of packaging; to the purchasing teams, which are privileged contacts with s suppliers, with the aim of optimising packaging used for the transport of raw materials and packaging items received in the Group’s plants, a major source of waste. The development of the wall-to-wall approach (production of packaging items close to the Group’s production facilities) is a particularly effective means of reducing waste related to the supply of components at the source; through all the industrial teams involved in a process of s continuous improvement of manufacturing and packaging processes in order to reduce losses during production; and to the whole of the supply chain, for which the s reduction in obsolete inventories is essential for the reduction of waste related to the Group’s activity. The Asia region has initiated a programme that combines industrial agility and improved sales forecasts with the aim of reducing obsolete products, and ensuring better flows via the establishment of outlets, family sales, sales to staff and donations to not-for-profit organisations. Furthermore, the Group has initiated a campaign against wasting food. Serving around 2,000 meals a day in the Paris region, L’Oréal adopts best practices in its directly managed restaurants: a genuine awareness programme for employees, the recovery of 100% of food waste via the Bio-Waste system, a very strict monitoring of use-by dates and stocks, real-time and on-demand cooking methods, and attention to quantities served. A food donation agreement has been signed with NGO Restaurants du Cœur, which as a result received more than 4,500 meals in the town of Aulnay-sous-Bois in 2018. The donation of surplus food is also requested of company restaurants run as concessions so as to promote this initiative with not-for-profit organisations such as Le Chaînon Manquant. In 2018, the equivalent of 3,000 meals were collected and redistributed. Many initiatives are also being taken to develop responsible, fair and sustainable food in the Group’s restaurants and cafeterias, such as the supply of fair trade coffee, the development of the use of local and organic products, and an emphasis on seasonal fruit and vegetables in the preparation of menus.

THE WATER DISCLOSURE PROJECT: A CDP INITIATIVE FOR TRANSPARENCY IN RESPECT OF INFORMATION ON WATER AND WATER RISK MANAGEMENT ACROSS THE VALUE CHAIN Since 2010, L’Oréal has taken part in the Water Disclosure Project, of which it is one of the Founding Responders. This programme is aimed at encouraging companies to publish every year their water management strategy, their results and the projects they have launched to improve their performances and to reduce the risks with regard to their activities related to water consumption. It was launched by the CDP, an important, independent non-profit organisation which promotes transparency and environmental information reporting with regard to several topics: global warming, water, deforestation, etc. In 2018, L’Oréal was recognised for the third consecutive year as one of the world leaders for its strategy and actions in the sustainable management of water throughout its entire value chain, from the production of raw materials to the use of products by consumers, receiving a score of “A”, i.e. the highest possible level of performance in the CDP rating. L’Oréal is also working with its supply chain on sustainable water management (see section 3.3.1.3.2. “Within the supply chain”). Preserving resources and reducing waste C/ For several years, the Group has been implementing an ambitious approach to waste optimisation that goes well beyond regulatory compliance. As part of the Sharing Beauty With All programme, the Group has set itself the goal of reducing the waste generated by its plants and distribution centres by 60% (g/FP) compared with 2005, and the waste generated by its administrative sites and research centres by 20% (Kg/100 hours worked). An ambitious challenge, in light of L’Oréal’s exacting definition of waste. Indeed, any solid discharge that is not a finished product intended for consumers is considered as waste, whatever its treatment and future recovery. This includes, for example, raw material packaging or packing compounds, wastewater treatment plant sludge, broken pallets, etc. At the same time, the Group is committed to recovering more than 99% of waste generated by reusing it, recycling it, or using it as an energy source; for industrial sites, the proportion of materials recovered (reuse or recycling) will be 70% in 2020.

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REGISTRATION DOCUMENT / L'ORÉAL 2018

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