L'Oréal - 2018 Registration Document

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

Greenhouse gas assessment: an annual exercise 3.3.1.3.4

L’Oréal carries out an annually Greenhouse Gas Assessment (GHG Assessment) for all the Group’s activities, in order to measure its CO 2 emissions and identify the action plans that will enable it to reduce its impact. This assessment, which has been performed since 2007 is made in accordance with the Greenhouse Gas Protocol (GHG Protocol) rules, the international reference method for recording GHG emissions. It makes it possible to determine the Group’s total carbon footprint according to three defined scopes: Scope 1: “direct emissions from sources owned or s controlled by the reporting entity”; Scope 2: “indirect emissions related to the consumption s of electricity, heat or steam necessary for production of the product or the operations of the reporting entity” ; Scope 3: “other indirect emissions related to the supply s chain (upstream emissions) and the use of products and services during their life cycle (downstream emissions)”. In 2017, work was carried out to improve all scopes of the GHG Assessment tool in order to refine its perimeters and input data and to align emission factors with those of SPOT (Sustainable Product Optimisation Tool: the Group’s specific tool for assessing the environmental and social footprint for its products). SCOPES 1 AND 2 – EMISSIONS MEASURED AND REPORTED ON A MONTHLY BASIS These CO 2 emissions are measured by all the Group’s sites and reported monthly. Scopes 1 and 2 correspond to those for which the Group takes direct action via programmes to control energy consumption deployed on the sites and for the procurement of renewable energy. They are the subject of

ambitious reduction targets as part of the Sharing Beauty With All programme (see section 3.4). the “Producing sustainably” objectives cover industrial s sites (plants and distribution centres), and provide for a 60% reduction in CO 2 emissions in absolute terms between 2005 and 2020; commitments related to the “Working Sustainably” s programme cover all administrative sites and research centres, and provide for a 60% reduction in CO 2 emissions in absolute terms between 2016 and 2020. For 2018, all these emissions represented 55.5 ; thousand tonnes for the plants and distribution centres, and reduced by 77% as compared to 2005, and 33.4 thousand tonnes for the administrative sites and research centres reduced by 18% vs 2016. SCOPE 3 – EMISSIONS ESTIMATED ANNUALLY Scope 3 covers all other greenhouse gas emissions not directly related to the sites operated by the Group or to the manufacture of products in the plants but to other stages in its life cycle (procurement, transportation, use, end of life, etc.) and other impacts related to the Group’s activities (business travel, etc. ). These emissions are the subject of an annual estimate according to the GHG Protocol methodology. In 2018, work was carried out on Scope 3 of the GHG Assessment in order to improve its input data and emission factors. For 2018, L’Oréal Group’s GHG balance is estimated to be 11,944 million tonnes, representing an increase of 2 million tonnes compared with 2017, mainly from the updating of the emission factors.

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

REGISTRATION DOCUMENT / L'ORÉAL 2018

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