L'Oréal - 2018 Registration Document

L’Oréal’s corporate social, environmental and societal responsibility METHODOLOGICAL NOTES

Data 3.5.4.3. The following methods are used to collect data for the defined scope: the data relating to Ethics and Human Rights for L’Oréal s subsidiaries is collected by the Ethics Department using the Annual Ethics Reporting platform. The scope is aligned with individual company data unless otherwise indicated for each indicator in the report: Human Rights data for the employees of the Group’s s suppliers are consolidated by the Purchasing Department and collected during social audits by an independent and accredited third party that carries out the audits and shares the data collected as well as the audit reports; the other data are collected from the corporate s departments concerned (Corporate Social Responsibility Department, Worldwide Safety Evaluation, Risk Management and Compliance Department and the L’Oréal Foundation). INNOVATING SUSTAINABLY DATA 3.5.5. Scope of consolidation 3.5.5.1. The calculation is performed using a scope restricted to products designed or updated by L’Oréal’s design centres and produced by the Group’s plants or by subcontractors. The products of brands for which the quantity of data available is sufficient, i.e. those that were acquired/created before 2013, are taken into account. The calculation of the indicators is based on all new or updated products (sales models only), i.e. products manufactured in 2018 which did not exist in 2017. The products considered in 2018 cover all categories of formulas (including make-up and perfumes). The calculation of the indicators is made on the basis of the number of new or updated products, in terms of formula or packaging or with a social benefit. New or updated products do not include extensions to the range of colours, changes in appearance that do not affect the environmental and social profile or changes to ensure compliance with regulations or due to the unavailability of a raw material.

In order to improve the system of waste performance monitoring and exhaustively record the waste generated by the use of reusable packaging, a system of recording reusable packaging at source was put in place in 2014. L’Oréal thus records the weight of its reusable packaging at source in transportable waste, with each of the sites being responsible for maximising the number of rotations. The recording of the weight of reusable packaging at source is a measure intended to encourage rotation of this reusable packaging and contributes, through its reuse, to increasing the useful life of the packaging. Sites that no longer send any waste for destruction or to landfill except for regulatory constraints are considered to have attained a 100% recovery rate. To obtain a more accurate understanding of the recovery and raw material recovery indices, these indicators are now calculated excluding transport pallets which represent a significant part of the reusable packaging in rotation. Data 3.5.3.3. The collection of data for the defined scope uses the following method: environmental data are collected using the dedicated intranet-based site reporting system, available in all countries where L’Oréal has a subsidiary. The required data are reported every month by the local managers. When the data are compiled, each site or zone must validate the accuracy of the data provided. A process of continuous improvement of these systems has been put in place. They are reviewed each year by the Statutory Auditors and modified taking into account their recommendations and monitoring objectives for subsequent years: updating the indicators to be monitored, improving their definition and the communication, monitoring and control process.

3

HUMAN RIGHTS DATA 3.5.4. Scope of consolidation 3.5.4.1.

The scope covers, depending on the indicators, L’Oréal parent company, France or the Group. The specific scope is specified for each indicator. Indicators 3.5.4.2. The indicators chosen are those within the scope of the applicable regulations, with in particular the aim of data comparability.

REGISTRATION DOCUMENT / L'ORÉAL 2018

223