LOREAL_Registration_Document_2017

3 L'Oréal’s corporate social, environmental and societal responsibility* L’ORÉAL’S CORPORATE SOCIAL, ENVIRONMENTAL AND SOCIETAL POLICIES

TYPES OF AUDITS CONDUCTED IN 2017

OBJECTIVES

METHODOLOGY

2017 AUDITS

Ensuring that the technical equipment, processes and operating methods implemented by management and used by employees do not carry risks of damage to their health, safety or the environment. Ensuring that the sites comply with all the legal obligations to which they are subject. Giving the Group’s General Management objective knowledge of the risks in the areas of EHS on the L’Oréal sites and providing the assurance that they are under control.

For five years, these audits have covered all international operations. They are carried out by external independent experts.

These risk audits were carried out at one plant, 10 distribution centres and 2 administrative sites.

Risk audits

All the Group’s sites are subject to regular EHS culture audits. These audits are carried out by internal EHS specialists through Group interviews with 20-30% of the site’s workforce. This combined audit is carried out with the help of external independent experts for the risks aspects and by internal teams for the culture-related aspects. This audit is conducted on the basis of the reference manuals for each of the EHS, Quality and Performance professions, with the help of external independent experts as regards EHS risks and by internal experts for each of the audited areas.

Measuring and developing management’s leadership and internal EHS culture so that EHS is at the heart of the responsibilities of all operational managers.

An EHS culture audit was carried out at 1 administrative site.

EHS culture audits

These combined risk and culture audits were carried out at 2 plants, 2 distribution centres, 2 research centers and 2 administrative sites.

Combined EHS Risk and Culture Audits

Combination of the risk and culture audits.

Combined Quality, Environment, Health, Safety and Performance Audits

Optimising the professional practices audits at a site by combining the various existing Operations Division audit programmes.

These combined audits were carried out at 9 plants.

Checking that the buildings are in compliance with the Group’s real estate procedures, and on the due and proper completion of extension or renovation operations and preservation of the assets. Since 2009, these audits have included an additional component: internal air quality and energy performance. Verifying the production conditions of the Group’s industrial subcontractors (manufacture of products, particularly aerosols, inflammable products, etc.)

The Real Estate Department carries out annual audits of the Company’s real estate assets on a rotating basis with the assistance of external independent experts.

Real estate audits

11 sites were audited.

These audits are carried out with the assistance of external independent experts. If necessary, a follow-up audit is scheduled. These audits are carried out with the assistance of external independent experts. The evaluation of the site following the audit determines the action plan to be implemented and the frequency of future audits.

Industrial subcontractor audits

46 sites were audited.

The objective is to evaluate the level of EHS management of the site and to identify the presence of insufficiently controlled risks.

13 logistics subcontractors were audited.

Logistics subcontractor audits

In addition to these audits, loss prevention inspections are countries (Germany, China, Spain, France, Italy, Japan, carried out regularly by external independent experts within Mexico, Russia, Singapore, Taiwan and the USA).

the scope of the Group’s Fire and Environment insurance policies. In 2017, 8 plants, 1 distribution centre and 1 laboratory were inspected in 6 countries with regard to environmental risks (Belgium, Brazil, France, United States, India and Poland) and 16 sites with regard to fire prevention in 11

Of the audits described above, 91% involved a risk component which is always carried out by external independent auditors specialising in the area being audited.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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