L'Oréal - 2018 Registration Document

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

Achievement of the target of “zero waste to landfill” is the first stage of a more global process of circular savings in which the Group is engaged. As far as possible, L’Oréal seeks to promote the local treatment of waste, in order to reduce the environmental impact of the waste and to create potential synergies with other local stakeholders.

Use of landfills due to regulatory requirements totalled 90 tonnes for plants and distribution centres, and 97 tonnes for administrative sites and research centres.

97% waste recovery in 2018 for industrial sites 5

Maplecroft are subject to a mandatory social audit (and prior to any inclusion on the supplier panel) aimed notably at ensuring compliance with the applicable laws, Human Rights and labour law. This audit also covers employee safety and working conditions, and the way in which the impact of activities on the environment is taken into account. The social audits are carried out on behalf of L’Oréal by independent external service providers. The initial audits and the re-audits three years later are financed by the Group. Follow-up audits that make it possible to verify the effectiveness of the action plans are paid for by the suppliers. Ten areas are audited: child labour; s forced and compulsory labour; s the environment, hygiene and safety; s compliance with the laws relating to trade unions; s non-discrimination; s disciplinary practices; s sexual harassment or a hostile working environment; s due payment of remuneration and benefits; s working time; s relations with subcontractors. s L’Oréal’s social audit is based to a great extent on the internationally recognised SA 8000 standard. The Group has also imposed more stringent criteria, particularly with regard to the minimum age for child labour. It is set at 16 years of age for all employees working for suppliers, a higher age limit than the minimum age required by the Fundamental Conventions of the International Labour Organization (ILO).

97% of waste was recovered in 2018 for industrial sites , i.e. 10% more than in 2005. 19 plants and 29 distribution centres had a recovery rate of 100% in 2018. 3% of waste was destroyed without recovery (incineration without energy recovery and sent to landfill not including regulatory constraints) in 2018, i.e. 2,984 tonnes.

90 % waste recovery in 2018 for administrative sites and research centres

90% of waste generated on administrative sites and research centres was recovered in 2018. 35 administrative sites and 3 research centres had a recovery rate of 100% in 2018. Within the supply chain 3.3.1.3.2 Above and beyond its strict requirements with regard to its own sites, L’Oréal has for a number of years applied an environmental policy throughout its value chain. Indeed, L’Oréal works in partnership with its suppliers to improve the environmental and social profile of its products via the eco-design of packaging, ingredients and formulas and their method of transportation. There are thousands of suppliers throughout the world who cover the Group’s needs in terms of packaging, raw materials, subcontracting, production equipment, promotional and advertising items, etc. The global volume of purchases directly related to production represented €4.64 billion in 2018. The Group’s subcontractors and its suppliers of raw materials, packaging, production equipment and POS advertising/promotional items and materials located in countries identified as being at risk according to Verisk

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

REGISTRATION DOCUMENT / L'ORÉAL 2018

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