L'Oréal - 2018 Registration Document

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

ingredients presents risks in terms of supply related to the same period, the proportion of raw materials meeting green consequences of climate change (availability and price), and chemistry criteria increased from less than 10% to 27%.

can also result in environmental consequences through the cultivation of the crops that produce these ingredients (deforestation, soil depletion, consequences on biodiversity, for instance). Between 2013 and 2018, the percentage of raw materials by volume increased from 43% to 59%. Over the

59% (by volume) of the raw materials used by L’Oréal are renewable, i.e. roughly 1,567 raw materials from nearly 338 species of plants from over 100 countries.

45 % in terms of number of the Group’s newly registered raw materials are renewable and 24% of them respect green chemistry principles.

The respect for Human Rights in accordance with ILO principles is now expected throughout the production chain. In terms of culture and plant harvesting, attention is also placed on the economic development of producers and respect for traditional knowledge issued from biodiversity in accordance with the principles of the Nagoya Protocol; equality between producers; preservation of biodiversity and fighting against climate change. By relying on sustainable sourcing for the supply of renewable raw materials, L’Oréal contributes to the social integration of disadvantaged population groups while ensuring environmentally friendly sourcing. Fair trade and equal opportunities have gradually become major pillars of the Solidarity Sourcing responsible purchasing programme launched in 2010 (see 3.3.3.4 “Solidarity Sourcing”). In 2018, 100% of the renewable raw materials used by the Group were reassessed based on criteria such as respect for biodiversity and contribution to socio-economic development in the territories from which they originate. Out of the 338 plants species which are the source of the renewable raw materials used by the Group, around 12% (in number) involve significant biodiversity issues (protection measures, impact of production on natural environments) depending on their geographic origin and their extraction or production method. They are the subject of specific action plans entered into with suppliers and, where necessary, benefit from the systematic support of independent external third parties, in order to handle the real impacts on the territories of origin of the ingredients. For the palm oil and derivatives channel, 100% of supplies were subject to action plans with the suppliers concerned as of the end of 2018.

Products marketed in 2018 had a proportion of renewable raw materials above 97% Beauty oil

La Provençale Bio

Fleur de Figuier hand and nail purifying gel Miracle cream - Aura Botanica Cleansing oil in nourishing illuminator gel

Roger&Gallet

Kérastase

Lancôme

L’Oréal finalised the traceability campaigns launched with all its suppliers, thus making it possible for 100% of plant-based ingredients to now be traced to their country of production, or even as far as the biomass production site. With regards to raw materials, the Group promotes green chemistry principles which encourage the development of ingredients with a favourable environmental profile made from plant raw materials, which minimise the number of synthesis stages, non-toxic solvent, energy consumption, and the production of by-products. Currently, more than 27% of the raw materials used by L’Oréal (in terms of volume) are based on green chemistry principles ( i.e. , they come from renewable resources, are transformed using an environmentally respectful process and have a favourable environmental profile). This represents more than 740 raw materials. In 2018, 28 new raw materials based on green chemistry principles were registered. As part of L’Oréal’s individual commitments for Biodiversity Act4nature, the Group has set itself the target of ensuring that 100% of the Group’s renewable raw materials are sustainably sourced by 2030. To be included in this category, they must be traceable, with an identified botanic and geographic origin. Respect for biodiversity and societal contribution

REGISTRATION DOCUMENT / L'ORÉAL 2018

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