L'Oréal - 2018 Registration Document

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

The ambition of the programme is to associate economic performance with a positive social, societal and environmental footprint. In 2018, the Solidarity Sourcing programme enabled 56,842 people from socially or economically vulnerable communities all over the world to gain access to work or to keep a job and receive a decent income. This represents an additional 8,150 people (+16.7%) compared with 2017 on a like-for-like basis (1) . Solidarity Sourcing has 234 projects up and running in 44 countries, with the support of 35 third parties. This programme has offered the opportunity for the Group’s purchasers to enrich their jobs by contributing to improving the lives of thousands of people involved in the production of the goods and services purchased. As a result, in 2018, the number of purchasers involved in a Solidarity Sourcing project reached 144, an increase of 30% over the last two years. In addition, L’Oréal encourages its strategic suppliers to implement programmes inspired from the Solidarity Sourcing programme for their own purchases. In 2018, 13% of these suppliers have thus applied a similar programme. L’Oréal pledged that 20% of them would be involved in the project by the end of 2020.

In 2018, 13% of strategic suppliers were involved in the Group’s Solidarity Sourcing programme.

2020 TARGET

20%

FOCUS on the Group’s solidarity purchases in France 64 of the global Solidarity Sourcing programme projects support employment in France (one in four). France, the L’Oréal Group’s country of origin, is the country that undertakes the highest number of Solidarity The number of jobs generated by the Solidarity Sourcing programme in France was up 79% compared with 2017 (+692 jobs), thanks in large part to the mobilisation of Group purchasing managers and 379 suppliers. These projects cover a wide range of purchases including cardboard, glass and plastic packaging; point-of-sale advertising supports; and services, packaging and logistics. Nearly 30% of beneficiaries are people with disabilities (468 jobs) More than half of beneficiaries are located in areas classified as vulnerable (808 jobs), namely areas classified as “Rural Revitalisation Zones” (ZRR) and “Sensitive Urban Zones” (ZUS). For instance, a project was launched in 2018 with the IDC France (International Distribution Centre) platform located in the ZRR area of Moÿ de l’Aisne. It centralises and stores finished products from the six plants of the Consumer Products Division and prepares all supplies of finished products for subsidiaries in France, Europe and other geographic areas. Logistics and transport activities for L’Oréal accordingly represent 68 jobs at this site This project actively supports a partner supplier, CITRA-BLONDEL, which is committed to promoting economic activity and the development of local employment in an economically and socially deprived area. The other solidarity purchase projects in France mainly concern people in social integration, support for SMEs, older people experiencing discrimination in hiring, women’s access to jobs from which they are generally excluded, Living Heritage Enterprises (EPV label), and a bio-solidarity cooperative. Sourcing projects (out of 44 countries in which the programme operates). In 2018, solidarity purchases in France represented 1,573 full-time jobs. Every year since 2010, L’Oréal’s employees spend a day of their working time offering their skills and devoting their energy to several hundred associations in the social and environmental field. This involves, for example, cleaning natural sites, setting up well-being workshops for people in vulnerable situations, repainting senior centres or people facing hardships, helping job-seekers to prepare their résumés, etc. For the last nine years, more and more employees have demonstrated their commitment. In 2018, with some 27,600 participants and more than 170 000 hours of voluntary work, the L’Oréal Citizen Day provided support to 855 associations in 63 countries. Considering that beauty is at the heart of the self-reconstruction process, the L’Oréal Foundation, through its Beauty for a Better Life programme, supports and funds the provision of free beauty care and well-being treatments in medical and social environments thanks to the partnerships that it has built with non-profit and hospital organisations such as Unicancer, Emmaüs and Joséphine. These treatments are provided by specially trained socio-beauticians. They play a role in improving well-being, self-esteem, fighting spirit and social cohesion, and are key moments, whether for patients whose bodies are ravaged by illness or people who are marginalised in society.

Employees mobilised: Citizen Day

Beauty for a Better Life: a programme of the L’Oréal Foundation

En 2018,en France, plus de 32 000 soins de beauté et de bien-être ont été prodigués, permettant à la Fondation L’Oréal de soutenir plus de 17 000 personnes fragilisées.

L’Oréal, all geographic zones and areas of purchases. (1)

REGISTRATION DOCUMENT / L'ORÉAL 2018

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