LOREAL_Registration_Document_2017

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

Number of company-level agreements L’Oréal's social policy permits the signing of a certain number of company-level agreements in the subsidiaries every year. In 2017, 145 agreements were signed in France and 94 agreements were signed in the rest of the world. In total, the number of agreements in force at 31 December 2017 was 784, of which 519 are in France. These agreements, which mainly concern working-time organisation, remuneration and working conditions (working hours, quality of life at work, gender equality, telecommuting, etc.), contribute to the smooth running of the Company and to its performance, by reinforcing employee participation and dialogue with their representatives. L’Oréal’s health and safety standards are very strict and often exceed the statutory obligations in the various countries concerned. The Health and Safety committees and their activities do not necessarily lead to the signing of specific agreements, but rather to shared monitoring on this subject (application of legal and L’Oréal's standards, analysis of situations, etc.) in accordance with the principle of continuous improvement. 35 agreements in force at 31 December 2017 which totally or partially relate to health and safety issues have nevertheless been identified outside France. Diversity and Inclusion 3.1.2.7. L’Oréal creates products for men and women in every sphere of life. So that the Group's products meets beauty-related expectations and needs in all their infinite diversity, it is essential that our employees reflect this diversity and that they promote inclusion. In order to achieve this target, L’Oréal encourages working environments where everyone, whatever their ethnicity, social background, religion, gender, sexual orientation, age or disability feels valued. By creating an atmosphere that encourages all employees to develop and flourish, the entire Company benefits as a result. At L’Oréal, the human factor, in all its diverse aspects, is what is important, both inside the Company and within local communities and this applies on every continent. The Company is committed to supporting Diversity and Inclusion and its achievements are widely recognised. The Group has set itself three targets in order to continue to make progress in this area: ensuring gender equality at all levels of the Company; s Information on company-level agreements in force with regard to health and safety

A network of Diversity Coordinators present in 64 of the Group's entities ; conducts initiatives in relation with the Group’s policy, while adapting them to the local context in each country. In 2004, L’Oréal was a founding member of the first Diversity Charter in France. The Group has now signed 19 charters in total (Morocco, Hong Kong, the Baltics, the Czech Republic, Hungary, Poland, Slovakia, France, Argentina, Mexico, the United States, Austria, Belgium, Denmark, Germany, Italy, the Netherlands, Portugal and Spain). In Autumn 2017, out of over 5,000 companies, L’Oréal was recognised by Thomson Reuters as one of the 10 best companies with regard to Diversity and Inclusion. Gender equality Achieving real gender equality is a key challenge for the Company, both to promote a culture of Inclusion and to increase L’Oréal’s ability to innovate now and in the future. L’Oréal therefore ensures that all jobs are accessible to women and men both at the level of recruitment and with regard to career development possibilities up to top-level responsibilities. A significant amount of work is still being done to create a real ecosystem that supports the careers of all the Group’s men and women, with particular attention to the pivotal periods of parenthood (see section 3.1.2.4 “ Share & Care – Balance ”). Equileap, a non-profit organisation, has ranked 3,000 listed companies and awarded L’Oréal first place in its 2017 prize list. This new ranking will help investors to better identify leading companies in the area of gender parity and thus allow them to invest on the basis of a new differentiating criteria. In the fifth edition of the “Féminisation des instances dirigeantes des grandes entreprises françaises” (feminisation of management bodies of large French companies) awards, L’Oréal was awarded, in 2017, second prize for its commitments in support of equality at the highest level of the Company.

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L’ORÉAL AND EQUITY At 31 December 2017, women account for: 69% of the total workforce; s 63% of executives; s 62% of local managers; s

42% of expatriates in place; s 45% of Group key positions (1) ; s 68% of employees who were promoted; s 62% ; of international brands are managed by women; s 33% of the Audit Committee members; s 46% of the members of the Board of Directors. s

recruiting more people with disabilities; s reinforcing cultural and social diversity. s

The Group shares its achievements and progress in a new dedicated section of the website www.loreal.com (http://www.loreal.fr/group/diversite-et-inclusion).

Group key positions: Positions that are identified as key for the Group and followed directly on an international level by the members of the HR Audit (1) Committee (approximately 1,200 positions). ; The Statutory Auditors have expressed a reasonable assurance with regard to this indicator.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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