L'Oréal - 2018 Registration Document

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

EVOLUTION IN SAFETY PERFORMANCE (TFC) (1)

3.50

3.00

2.50

2.00

3

1.50

1.00

0.50

0.00

2011 2010 2012 2013 2014 2015 2016 2017 2018

2008 2009

The increase in accidents in plants and distribution centres, together with the significant improvement in accident reporting in sales forces and stores, resulted in a deterioration in the 2018 results compared with the previous year, when accident data were particularly low for the Group as a whole.

144 lost-time accidents (L’Oréal staff and temporary employees) were reported in 2018, representing a conventional frequency rate (TFc) of 1.02 and an enlarged total incident rate (TIRe) of 2.1.

The 144 lost-time accidents (L’Oréal staff and temporary employees) registered in the Group in 2018 resulted in the following frequency rates by entity:

Sites

TFc 2018

Variation in TFc vs. 2017

TIRe 2018

Variation in TIRe vs. 2017

Plants and distribution centres

104%

-18% 25% -55% 86%

1.38 ;

3.08 ;

Administrative sites

0.44 0.76

2%

0.67 2.75 4.53 2.10

R&I Sites

-33% 22% 26%

Sales forces & Stores

2.1

Group: all sites

1.02

7%

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

organisation and HS practices in line with the Group’s 4. standards with OHSAS 18001 accreditation for all Operations Division sites; specific training programme for managers, EHS managers 5. and operators/technicians; ongoing improvement of the Health and Safety 6. management systems at all sites; active employee participation; 7. sharing of resources, feedback and best practices. 8. 83% of the Group’s plants OHSAS 18001 or ISO 45001 certified for their safety policy.

The accident severity rate, in line with the increase in the number of accidents, was slightly higher than in 2017 for the Group. It stands at 0.03 for the Group and 0.05 ; for the plants and distribution centres in 2018. Priorities The main HS priorities and orientations relate to the following 8 areas: definition and deployment of strategy and action plans to 1. achieve the 2020 target: TFc (Conventional Frequency Rate) (1) <0.5 for all the Group’s sites; commitment and visible participation by management; 2. initiatives to deal with the most frequent incidents, including 3. in particular a global ergonomics programme and a specific programme to prevent falls and hand injuries;

; The Statutory Auditors have expressed a reasonable assurance with regard to this indicator. TFc = Number of lost-time accidents per million hours worked for L'Oréal staff. (1)

REGISTRATION DOCUMENT / L'ORÉAL 2018

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