LOREAL_Registration_Document_2017

3 L'Oréal’s corporate social, environmental and societal responsibility*

At the end of 2013, the Group presented its Sustainable Development commitments for 2020, through the Sharing Beauty With All programme. This public announcement testifies to L’Oréal’s ambition and the strong commitment of its management and all its teams to build and ensure sustainable growth. L’Oréal has a solid Sustainable Development legacy. This chapter describes the L’Oréal Group’s corporate social, environmental and societal policies while also reporting on the progress made within the scope of the Sharing Beauty With All programme.

Introduction L’Oréal’s ambition is to win one billion new consumers by developing a universalisation strategy to respond to the specific beauty needs of men and women all over the world. The Group’s growth strategy is partly based on its commitment to decouple its growth from its consumption of natural resources and its emissions, and to involve consumers, who are at the heart of its business activities, by offering them products which are both sustainable and aspirational, thus inciting them to make sustainable choices. Convinced that Sustainable Development is an essential factor for success and durability, L’Oréal has adopted an ambitious corporate social, societal and environmental policy, which is shared by its management and teams and is based on a core EFFORTS THAT HAVE BEEN RECOGNISED AND REWARDED In 2017, as in previous years, L’Oréal was acclaimed by the most demanding organisations in this field, and in particular: the extra-financial rating agency Vigeo Eiris ranked the s Group No. 1 in all sectors; for the sixth consecutive year, the extra-financial rating s agency Oekom Research AG gave L’Oréal Prime status, a rating awarded to the top-performing companies; the CDP, an independent international NGO that s assesses companies' environmental performance, gave L’Oréal a triple “A”, representing the top score, for each of the ratings made on key topics: the fight against climate change, sustainable water management and forest conservation. Only two companies in the world obtained this triple "A" score in 2017;

set of strong ethical principles defined by the Group: Integrity, Respect, Boldness and Transparency. In 2013, a new level was reached with the implementation of the Sharing Beauty With All programme. Clear targets were set for 2020 in terms of innovation, production, meeting the challenges of sustainable consumption, and sharing the Group’s growth. Every year, L’Oréal reports on the progress made and its achievements in its Registration Document, in the Sharing Beauty With All Progress Report, its dedicated website www.sharingbeautywithall.loreal.com and through annual reporting with regard to the United Nations Global Compact L’Oréal was recognised for the eighth time as one of the s « World’s Most Ethical Companies » by the Ethisphere Institute and ranked first throughout 2017 in the Personal and Household Goods category in the Covalence ranking. The Group’s good performances mean that it is regularly included in the indices requiring the highest standards: extra-financial rating agency Ethibel’s Sustainability s Indices Excellence Europe and Excellence Global; the FTSE4Good index; s the United Nations Global Compact 100 stock index s since its creation in 2013; the Euronext-Vigeo indices which highlight the top s performing companies in the areas of the environment, corporate social responsibility and governance. which L’Oréal has supported since 2003.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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