L'Oréal - 2018 Registration Document

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

For plastic packaging, Matrix’s “Total Results” 300 ml bottle, for example, uses 100% recycled PET plastic, saving 70 tonnes of virgin plastic each year. The bottles used in the Pureology range are made from fully recycled PE plastic, which saves 176 tonnes of virgin plastic each year. As a reminder, L’Oréal launched fully recycled, food grade PE plastic shampoo bottles on the market for the first time in 2017. For glass packaging, initiatives have been in place for several years, such as Vichy’s Mineral 89 bottle, which contains 25% recycled glass, or the Biotherm Aquasource jar. In addition, the first loop of the premium glass circular economy was established by L’Oréal in 2018, in partnership with glassmaker Pochet. Glass waste from "Original Perfumery and Cosmetics" origin was recycled to produce the Viktor & Rolf brand’s "Bonbon" and "Flowerbomb" bottles (for their Christmas editions). L’Oréal also contributes to the development of new sources of recycled materials by means of a partnership with new suppliers. In India, for instance, L’Oréal has developed a recycled food grade PET plastic channel with Reliance. Beyond the eco-design of this packaging, L’Oréal is also researching solutions to improve the end-of-life of its packaging. In this area, L’Oréal has created a consortium with Carbios to perfect an enzymatic biorecycling process with the goal of restoring the original material without degrading it. Similarly, in July 2018, L’Oréal signed a letter of intent with LOOP® for the provision of food grade PET plastic by chemical recycling. In 2017, L’Oréal also joined the Ellen MacArthur foundation, whose objective is to rethink the life-cycle of plastic so that plastic packaging never becomes a waste and is re-inserted into the economy in the form of materials with biological or technical value. L’Oréal became a core member of the Ellen MacArthur Foundation in 2018, with the aim of adopting reusable, recyclable and/or compostable plastic for all packaging by 2025.

To optimise the flow of components, L’Oréal has developed wall-to-wall (1) production enabling the environmental impact to be reduced. To evaluate the impact of its finished products, L’Oréal makes the following tools available in its design centres: An innovative tool, SPOT (Sustainable Product Optimisation s Tool), to meet Sharing Beauty With All commitments (see paragraph 3.3.1.3.3). A tool to help in reducing the environmental impacts of s transport packaging for packing componants from suppliers to plants and finished products from plants to the Group’s distribution centres, particularly through optimisation of palletisation. To share its research and results with the cosmetics industry, the Group created the SPICE initiative (Sustainable Packaging Initiative for Cosmetics) with Quantis (a consulting firm) in 2018. SPICE’s purpose is to share the best practices and methodologies of each stakeholder (SPOT for L’Oréal), in order to harmonise the methods used to assess the packaging-related environmental footprint. Replacement: new materials sources Aware that non-renewable resources will not last forever, the Group seeks to replace them with recycled materials or biomass-based materials. L’Oréal is committed to using non-fossil sources for 50% of its plastics by 2025, with an initial target of 40% for PET plastic by 2020. Several brands use recycled plastic in their bottles – up to 100% – or recycled glass. 8,705 tonnes of recycled material (including 3,720 tonnes of recycled PET plastic, i.e. 15% of total PET consumed) saved the equivalent amount of virgin materials in 2018.

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8,705 tonnes of recycled materials used in the Group's packaging

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Giving preference to the use of sustainably sourced renewable raw materials The Group’s constant concern with regard to the sourcing of its raw materials is, over and above quality considerations, to guarantee the sustainability of resources. In 2010, the signatory countries to the Convention on Biological Diversity adopted the Nagoya Protocol, aimed at regulating access to the genetic resources of a given region and the fair and equitable sharing of the benefits arising from the use of those resources. Conscious of these issues well before the Nagoya Protocol came into force, L’Oréal’s Research Department has

continuously striven, since 2005, to adopt an approach aimed at securing its sourcing channels for the future to respond to the issues of sustainable use of Biodiversity. For this purpose, the Group gives preference, in particular, to the use of renewable raw materials, namely those whose carbon content is mostly of plant origin, and ensures that they are responsibly sourced. L’Oréal has adopted green chemistry principles to promote the use of renewable raw materials, to design products serving to reduce waste and to preserve the water cycle. For more than 10 years, green chemistry has been a catalyst for L’Oréal’s sustainable innovation policy. In the broadest sense, green chemistry aims to prevent upstream pollution and to combat the use and contamination of the

environment at source. The increasing use of plant-based Since 2010, the Group has implemented wall-to-wall production, which consists in setting up, within its plants, a production unit for packaging (1) operated by a supplier. This partnership makes it possible to develop reactivity and industrial flexibility, while reducing the transportation of packaging and generation of waste related to its packing.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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