L'Oréal - 2018 Registration Document

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

In 2018, 93% of strategic suppliers completed a self-assessment of their sustainability policy with L’Oréal’s support. 2020 TARGET

100%

Selecting and evaluating strategic suppliers based on their environmental and social performance The Group has decided to use its partners’ environmental and social performances as a selection criterion. On this basis, the commitments under the Sharing Beauty With All programme fit in with, and follow on from, those in the Group’s responsible purchasing policy initiated in 2002 with the L’Oréal Buy & Care programme. This contributes to sharing good practices and the Company’s values and standards with its suppliers. The CSR commitments of suppliers play a significant role in the choice of the Group’s business partners. In this respect, L’Oréal’s purchasing teams have defined 5 pillars of performance that make it possible to assess and choose suppliers: quality; s corporate Social and Environmental Responsibility; s

innovation; s supply chain & Service; s competitiveness. s

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These pillars form the basis both for daily performance and for long-term strategies. A global scorecard has been deployed for all purchasing fields and makes it possible to precisely measure suppliers’ results, in particular their compliance with their environmental, social and societal commitments which represent 20% of the final assessment. The CSR strategy and action plans of suppliers are fully integrated into their relationship with L’Oréal and are therefore discussed at strategic meetings (Business Reviews). In this way, in 2018, 325 business reviews were carried out. The evaluation of suppliers on the CSR pillar is based, in particular, on their compliance with their social audits, the implementation of Solidarity Sourcing projects and their results in the “CDP Supply Chain” programme for the reduction of CO 2 emissions.

In 2018, 83% of the Group’s strategic suppliers were assessed and selected to date on the basis of their environmental and social performance. 2020 TARGET

100%

They represent more than 73% of total direct purchases (raw materials, packaging items and subcontracting). To give suppliers access to L’Oréal training tools aimed at optimising their Sustainable Development policies, an online

site dedicated to suppliers has been launched. It offers e-learning modules, videos, presentations on ethics, climate change, social audits, etc. Initially available to strategic

suppliers, it is in the process of being rolled out.

A dedicated online training platform was launched at the end of October 2016. It will firstly be made available to strategic suppliers, before being gradually implemented more broadly.

2020 TARGET

100%

REGISTRATION DOCUMENT / L'ORÉAL 2018

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