LOREAL_Registration_Document_2017

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

82% of the Group’s strategic suppliers were evaluated and selected on their environmental and social performance. They represent more than 74% of total direct purchases (raw materials, packaging items and subcontracting).

Ten areas are audited: child labour; s forced and compulsory labour; s the environment, hygiene and safety; s compliance with the laws relating to trade unions; s non-discrimination; s disciplinary practices; s sexual harassment or a hostile working environment; s due payment of remuneration and benefits; s working time; s relations with subcontractors. s L’Oréal’s social audit is based to a great extent on the internationally recognised SA 8000 standard. The Group has also imposed more stringent criteria, particularly with regard to the minimum age for child labour. It is set at 16 years of age for all employees working for suppliers, a higher age limit than the minimum age required by the Fundamental Conventions of the International Labour Organization (ILO). Suppliers and subcontractors may nevertheless request waivers from the Group Purchasing Director for the use of employees under the age of 16 upon presentation of a complete file (schooling, type of contract, working conditions, type of work). Pursuant to the “Suppliers/Subcontractors and Child Labour” policy, formally laid down in 2011, waivers of this kind are only possible for apprenticeship programme or for children carrying out light work if this work does not affect their health and safety or their regular attendance at school, where the local law allows it and when the supplier/subcontractor has appointed an internal “tutor” for the children.

PROVIDING SUPPORT TO NEW SUPPLIERS L’Oréal actively seeks to work with suppliers who share its ethical values and commitments. Its purchasing teams have the task of identifying new suppliers and integrating them in light of the Group’s expectations and its strategy via the Welcome On Board (WOB) supplier referencing process. This allows it to make sure that the supplier is of real interest and to provide the supplier with all the information, documents and contacts required for it to understand the expectations and processes at L’Oréal. The final objective is to obtain the supplier’s commitment to L’Oréal’s values. Ensuring compliance with commitments by subcontractors and suppliers through social audits The Group’s subcontractors and its suppliers of raw materials, packaging, production equipment and POS advertising/promotional items and materials located in countries identified as being at risk in accordance with Verisk Maplecroft are subject to a mandatory social audit aimed in particular at ensuring compliance with the applicable laws, Human Rights and Labour law. This audit also verifies employee safety and working conditions in the workplace and how the environment is taken into account. The social audits are carried out on behalf of L’Oréal by independent external service providers. The initial audits and the re-audits three years later are financed by the Group. Follow-up audits that make it possible to verify the effectiveness of the action plans are paid for by the suppliers.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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