LOREAL_Registration_Document_2017

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

The Group’s environmental policy 3.1.3.4. L’Oréal, which has long been committed to reducing its environmental footprint, has stepped up its ambition with the Sharing Beauty With All programme. Deployment of the Group’s growth strategy, which aims at winning a billion new consumers, provides at the same time for acceleration of the reduction of the environmental impact of its activities. Low-carbon growth and the preservation of natural resources are at the centre of this strategy. The Group’s environmental policy thus rests on the foundations of the reduction in the consumption of natural resources (energy, water, raw materials), the use of renewable energies, wastewater management, and recovery of the waste generated to the best possible extent. The implementation of this policy provides for all the sites to systematically combine operational performance and environmental performance, through knowledge, measurement and optimisation of the environmental impacts, in carrying out their activities and the deployment of their projects. In each area (energy supply, water resources management and recovery of waste), the sites give preference as far as possible to the implementation of local projects in order to contribute to the development of the territories on which they are established. Whether it involves building a new plant, the purchase of new equipment, or defining new processes, each industrial development is an opportunity for reducing the environmental footprint. It is the fruit of a longstanding commitment. From 1992, the construction of a site performance measurement and reporting system for water and energy consumption and waste generation made it possible very early on to monitor the sites’ environmental results on a monthly basis, and from 2009, to set pioneering targets with regard to the Operations Division scope: a reduction of – 50% in CO 2 emissions in absolute terms, in water consumption in litres per finished product and in waste generation in grams per finished product by 2015 from a 2005 baseline. Within the scope of the Sharing Beauty With All programme, the Group has increased these initial commitments by raising these reduction targets from 50% to 60% between 2005 and 2020. The Group also pledged by 2020 to no longer send any industrial waste to landfill and to reduce CO 2 emissions from the transportation of its products by 20% per sales unit per kilometre from a 2011 baseline (transportation from the production sites to customer delivery). These targets have led to: the implementation by each site of detailed improvement s plans, the effectiveness of which is assessed at the time of the Group’s EHS audits; continuous improvement in the sites’ environmental s performance for several years, notably via the definition Reducing the environmental footprint of industrial operations

and dissemination of best practices in terms of energy efficiency, CO 2 emissions, consumption of water and natural resources and waste reduction and treatment; major developments and technological innovations in s each of the 3 areas (CO 2 , water, waste), going as far as the implementation of completely integrated solutions taking into consideration all the environmental impacts. Certain plants, like those in Libramont, Burgos and Settimo, now have facilities on their sites making it possible to produce renewable energy (from biomethanation, biomass or photovoltaics), to treat and recycle part of the industrial water, and to reduce waste generation while promoting waste recovery. See also paragraph 3.2.2. Producing sustainably . As soon as a project for a new site is being considered, an overall environmental impact study is required immediately during the design phase. The objective is to minimise the project’s impact on the environment and to adapt the project to local conditions at the destination site. In the same way, at the time of the purchase of land or buildings, L’Oréal conducts a due diligence which includes, in particular, a review of the environmental aspects. Ground use With regard to operation of the sites, the preventive measures described in the internal procedures must be complied with in order to prevent all forms of pollution (soil, groundwater, underground water, etc.). These measures are verified at the Managing risks and controlling the impact of sites on their environment reducing the impact of construction on the environment, for s example by using a zone which is already industrially developed, or an existing industrial site or industrial wasteland; if possible, the site will have to be on a plot of land located s over 30 metres from any body of water (sea, ponds, lakes, rivers, etc.); the site will avoid land situated on natural spaces, public s green spaces, land which is the habitat for endangered or disappearing species or any other undeveloped zone (for example: farmland, etc.); rehabilitating polluted sites (industrial wasteland) where s development is more difficult due to environmental contamination (real contamination or contamination perceived as such), thus avoiding construction on natural or undeveloped land; preventing soil erosion which may result from rainwater s runoff or wind erosion during construction, inter alia by protecting the arable soil layer which is stored to enable it to be reused; time of EHS audits and inspections by insurers. L’Oréal’s policy with regard to soil use is as follows:

REGISTRATION DOCUMENT / L'ORÉAL 2017

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