L'Oréal - 2018 Registration Document

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

Replace: substitute non-renewable sourced materials, s alternative materials such as recycled materials or materials of natural origin. These pillars are applied well ahead of each launch, right from the Marketing brief, and are orchestrated via a global, systematic eco-design process for the Group’s packaging, notably with the help of the SPOT measurement tool. This process is continuously enriched with documents and tools. The Sharing Beauty With All commitments are an integral part of the Group’s packaging strategy.

This approach has been extended to POS (Point-of-Sale) advertising display stands. An eco-design process based on detailed best practices and key performance indicators has been defined. A pilot process was launched in 2015, then rolled out to 7 operational entities in 2016. Enhanced by this experience, the eco-design process was adjusted in 2017 in order to allow a worldwide rollout from 2018 onwards.

In 2018, 58% of new or updated products had an improved environmental profile due to improved packaging.

Respect: materials vigilance and preservation of resources

Ushuaïa, L’Oréal Paris), and to design packaging that is compatible with existing sorting and recycling channels, thereby promoting material recovery after use of the product. Weight and volume reduction: optimising resources used Weight and volume reduction in packaging, an integral part of design, is a major driver for improvement in the environmental profile of products. Every year, L’Oréal launches new initiatives aimed at reducing the quantity of materials used in packaging. A continuous process is in place to reduce the weight of existing products in the catalogue. To illustrate, the following weight-reduction initiatives were implemented in 2018: 22% of the weight of the micellar cleansing water bottles for s the Garnier brand in the Asia zone, i.e. 35 tonnes of PET plastic saved; 57% reduction in the weight of the PP plastic lids used for s Vichy’s Neovadiol brand in Europe, with 16 tonnes of plastic saved; Lightening of the weight of the glass pots for L’Oréal Paris in s the Asia zone, representing glass savings of 7 tonnes. In addition, to improve the use of resources used for packaging, L’Oréal is introducing ever more refillable products into the market. Rechargeable or refillable systems are increasingly being developed in the Group’s various Divisions, including L’Oréal Professionnel’s La Source fountain (Professional Products Division), the L’Oréal Paris refillable skincare jar and the pocket-sized 1,000 ml refill for Elsève’s “Huile Extraordinaire” in Asia (Consumer Products Division) and Lancôme’s refillable L’Absolu jar (Luxury Division). To limit packaging volumes for its finished products, L’Oréal has established its own procedures for reduction at source. L’Oréal’s requirements are respectful of local regulations, and even exceed regulations in most countries.

L’Oréal requires that all materials used in packaging in contact with its products be food grade. The Group also takes a proactive approach with its suppliers in order to ensure that packaging does not contain any sensitive substances. Audits are conducted regularly in order to ensure the conformity of the packaging items delivered. This ensures an uncompromising level of quality and safety for consumers. L’Oréal has undertaken not to produce finished products containing PVC from 1 January 2018. This undertaking was met, since, except for recent acquisitions, no components made from PVC were used in the manufacture of finished products in 2018. Control of the source of the materials used in the packaging is a major issue which requires responsible sourcing. L’Oréal has set itself the target of using, for its paper, cardboard or wooden packaging, materials from responsibly managed forests, exploited with respect for populations and forest ecosystems. The paper and cardboard used for packaging come from forests that are preferably FSC or PEFC certified (or have obtained any other certification recognised by PEFC International). In 2018, 100% of the paper used for product leaflets and more than 99.9%% of the cardboard used for boxes was certified as being from sustainably managed forests. This certification process is also used for POS advertising (cardboard stands, graphic prints): in 2018, 93% of the paper/cardboard used in POS advertising was certified (this figure covers 99% of expenditure in this category). Since 2010, L’Oréal has been a member of the Forest Stewardship Council (FSC) in France and the FSC branding is the only one claimed on packaging for L’Oréal products. Finally, with the objective of improving the recycling of the products it markets, several Group brands have undertaken to provide consumers with detailed sorting instructions (Mennen,

REGISTRATION DOCUMENT / L'ORÉAL 2018

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