LOREAL_Registration_Document_2017

L'Oréal’s corporate social, environmental and societal responsibility* THE SHARING BEAUTY WITH ALL PROGRAMME

Responsible sourcing: the Sharing Beauty With All programme has increased the Group’s ambitions in all areas of Sustainable Development. Thus, in 2020, 100% of the renewable raw materials must be sustainably sourced. In this respect, they must be traceable with an identified botanic and geographic origin. The respect for Human Rights in accordance with ILO principles is expected throughout the production chain. In terms of culture and plant harvesting, attention is also placed on the economic development of producers and respect for traditional knowledge associated with biodiversity in accordance with the principles of the Nagoya Protocol; equality of producers; preservation of biodiversity and combating climate change. In 2017, 100% of the renewable raw materials used by the Group were reassessed based on criteria such as respect for biodiversity and contribution to socio-economic development in the territories from which they originate. Out of the 360 plants species which are the source of the renewable raw materials used by the Group, around 8% (in number) involve significant biodiversity issues (protection measures, impact of production on natural environments) depending on their geographic origin and their extraction or production method. They are the subject of specific action plans entered into with suppliers and, where necessary, benefit from the systematic support of independent external third parties, in order to handle the real impacts on the territories of origin of the ingredients. At the end 2017, 98% of the renewable raw materials (in Group purchase volumes -74% in number) are the subject of improvement plans or actions with the suppliers concerned in order to ensure sustainable sourcing - this is the case, in particular, of the species identified as the most sensitive (8%) and for 100% of purchases of palm oil and derivatives. L’Oréal has defined “sustainable sourcing risk” indicators making it possible to assess the streams of renewable raw materials in sustainability terms. These environmental, social 2017 results 59% (in terms of volume) of the raw materials used by L’Oréal are renewable, namely around 1,650 raw materials from nearly 360 species of plants from over 100 countries.

and economic indicators from external data bases are consolidated within the SCAN index (Sustainable Characterization index). “Plant Information Sheets” have also been prepared for the plant species that may be used. They add to the SCAN index with bibliographical information enabling the assessment to be fine tuned. The Group updates the information collected regularly. For its Guar project in India, L’Oréal won the gold medal in the Sustainable and Responsible Purchasing category, at the 2016 Purchasing Awards. With regards to raw materials, the Group promotes green chemistry principles which encourage the development of ingredients with a favourable environmental profile made from plant raw materials, which minimise the number of synthesis stages, non-toxic solvent and energy consumption, and the production of by-products. THAILAND – Tree planting in rice fields to restore soils L’Oréal's obtains supplies of rice bran oil from the Isan region in North-Eastern Thailand where the producers are among the poorest in the country. In this context, L’Oréal has chosen to get its supplies from a certified fair trade and organic farming cooperative. In partnership with Pur Projet, L’Oréal has implemented an agroforestry programme: planting trees in rice production areas enriches the soils and biodiversity and helps to improve water retention. In 2017, more than 67,168 trees were planted making a total of 138,036 since 2015. This programme also contributes to L’Oréal's Carbon Balanced ambition, as the plantations have enabled the capture of 8,843 teq CO 2 . BIODIVERSITY AND LOCAL DEVELOPMENT

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46% in terms of number of the Group’s newly registered raw materials are renewable and 22% of them respect green chemistry principles.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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