LOREAL_Registration_Document_2017

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

maintaining or restoring existing natural habitats and s biodiversity; maximising the green space areas on the site (even in s excess of the local regulations) and minimising the impermeable areas or natural spaces. Noise pollution L’Oréal’s industrial activities are not particularly noisy. The sites comply with the noise standards to which they are subject. The internal environmental reporting system informs L’Oréal each month of any non-compliance on this subject. Provisions for environmental risks The amount of the provisions booked for environmental risks is not material. Two sites have set aside a provision for the treatment of their soil. Most of this provision corresponds to land which does not require any treatment for the activities which are currently carried out on the site (see note 12.3. of the Consolidated Financial Statements). In order to make environmental performance lasting part of industrial processes, L'oréal has embarked since 2003 on the process of ISO 14001 (Envrionmental Management) certification of all its plants. As of the end of 2017, 88% of plants are ISO 14001 certified, i.e. 36 plants out of 41. Over the next few years, the last plants acquired or those recently built will be ISO 14001 certified. The Group has also defined processes and guidelines making it possible to achieve levels of excellence in all the business units. Furthermore, in 2015, the Group launched an ISO 50001 (Energy management) certification programme with the objective of certifying all its plants by 2020, according to a defined roadmap. As of the end of 2017, 44% of plants are ISO 50001 certified, i.e. 18 plants, including 16 in Europe, 1 in Brasil and 1 in India. Deploying the environmental strategy outside the industrial sites Reducing the environmental impact related to transportation L'Oréal as pledge, within the scope of the Sharing Beauty With All programme, to reduce by 20% the CO 2 emissions per sales Implementation of a continuous improvement process

unit per kilometre generated by transportation of its products between 2011 and 2020. The scope of consolidation covers the transportation flows of finished products from the production sites up to the first customer delivery point. In 2017, the Group developed, in collaboration with the transportation teams and transportation partners, a strategy based on the pillars of the Sharing Beauty With All programme. The implementation of this strategy is based employee access to operational tools that allow them to prioritise sustainable transportation: guidelines according to the mode of transportation, comparison sheets of the modes of transportation and energy that are available together with a simulation tool for calculating emissions and the publication of a standard whose aim is to reduce shipments by air. As a matter of priority, partners will henceforth be chosen based on quality of service and Sustainable Development criteria. The processes making it possible to apply the environmental policy on the industrial sites have been gradually rolled out at the administrative sites and the research centres. Audits (risk, culture, combined risk and culture, real estate) are carried out on those sites in particular and EHS training courses are now accessible to EHS managers of these sites. The environmental indicator reporting requirement has now been extended to these sites in order to be able to measure, monitor and manage their performance more precisely. In this regard, the Working Sustainably programme provides for objectives of reducing between 2020 from a 2016 baseline CO 2 emissions by 60% in absolute terms, energy consumption in kWh per 100 hours worked by 20%, water consumption in litres per 100 hours worked by 20%, and waste generation in kg per 100 hours worked by 20%. It aims to reinforce the commitment of the administrative sites and the research centres with regard to the environment and to encourage them to identify and formally provide for action plans. It also involves engaging employees at these sites in the development of eco-responsible behaviours. The environmental data reporting system for administrative sites and research centres is audited annually. The 2016 data were audited in order to establish the baseline for these objectives. Deploying the environmental strategy on the administrative sites and in the research centres

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ENVIRONMENTAL INDICATORS OF THE ADMINISTRATIVE SITES AND RESEARCH CENTRES:

2017 68,481

Indicator

Unit

Hours worked (L’Oréal and temporary employees)

1,000 hours

Total energy consumption

MWh

181,457 ;

Energy consumption per 100 hrs worked

kWh/100 hours

265

CO 2

emissions (Scopes 1&2) (1)

Tonnes

33,171 ; 399,340 ;

Water consumption

m 3

Water consumption per 100 hrs worked

l/100 hours

583

Transportable waste (2)

Tonnes

6,104 ;

Transportable waste per 100 hrs worked

Kg/100 hours

8.9

; The Statutory Auditors have expressed a reasonable assurance with regard to this indicator. CO 2 emissions calculated in accordance with the concepts defined by the GHG protocol, and monitored according to the Market-based CO 2 (1) indicator. Transportable waste excluding returnable packaging rotation, with returnable packaging accounted at source. (2)

REGISTRATION DOCUMENT / L'ORÉAL 2017

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