L'Oréal - 2018 Registration Document

1 Presentation of the Group Integrated report

GOOD GROWTH MOMENTUM FOR SHARED, LASTING DEVELOPMENT

Developing sustainably Sharing growth with its stakeholders is one of L’Oréal’s priorities. In this spirit, the Group applies its vision of responsible corporate citizenship with its employees, its suppliers and the communities with which it interacts.

living sustainably, to engage with consumers and offer them s the possibility to make sustainable consumption choices; developing sustainably to share growth with all the Group’s s stakeholders (employees, suppliers, communities).

…with employees “By 2020, L’Oréal employees (1) will have access to healthcare, social protection and training, wherever they are in the world.” The L’Oréal Share & Care programme is a large-scale social countries: social protection, healthcare, parenthood and programme initiated at the end of 2013. It consists of quality of life at work. commitments revolving around 4 pillars put in place in all

Protect Providing employees with effective support particularly of a financial nature in the event of unexpected life events

Care Providing employees and their families with access to a high-quality healthcare system which is one of the top performers on the local market

Balance Enabling all employees to live important life moments to the full, such as maternity and paternity, while pursuing their careers

Enjoy Offering high standards of quality of life at work to all the Company’s employees.

...with suppliers “By 2020, 100% of the Group’s strategic suppliers (2) will be participating in our supplier Sustainable Development programme.”

L’Oréal considers that the activities of its suppliers are part of its wider social and environmental footprint. This is why the Group has decided to associate its suppliers with its social, ethical and environmental commitments. This concerns first and foremost its “strategic” suppliers, who represent over 80% of the Group’s direct purchases (raw materials, packaging and subcontracting). Following on from the responsible purchasing policy it has implemented since 2002 known as the L’Oréal Buy & Care programme, the Sharing Beauty With All program has enabled

the Group to associate its suppliers more with its CSR initiatives by developing a twofold approach: the supplier selection process now takes into consideration s their environmental and social performances; the Group makes available to them continuous s improvement tools to enable them to carry out a better self-assessment and improve.

I.e. 100% of the employees within the scope of the “L’Oréal Share & Care” programme (the Group's permanent employees except, in certain countries, (1) part-time contracts <21 hours a week, beauty advisers and store employees, noting that the integration of recent acquisitions and new subsidiaries takes place gradually). Strategic suppliers are suppliers whose added value is significant for the Group by contributing to the L’Oréal sustainable strategy by their weight, their (2) innovations, their strategic alignment and their geographical deployment. 80% of the amount of direct purchases will be ultimately covered by this approach. The portfolio of suppliers will therefore solely consist, in 2020, of suppliers with the best CSR results: new suppliers selected on their performances and longstanding suppliers whom the Group continues to use as they are some of the best.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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