LOREAL_Registration_Document_2017

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

THE L’ORÉAL GROUP’S SOCIETAL 3.1.4. COMMITMENT Via the Sharing Beauty With All programme, the Group has reaffirmed its commitment to responsible growth shared with its employees, its suppliers and the surrounding communities. As the Group’s societal commitment extends well beyond its philanthropic activities, L’Oréal maintains an ongoing dialogue with its stakeholders and continually interacts with the local social and economic fabric in which it carries out its business activities. Furthermore, L’Oréal applies the strictest measures in terms of consumer safety, anti-corruption measures and respect for Human Rights. Conducting a constant dialogue with 3.1.4.1. stakeholders L’Oréal attaches great importance to the dialogue with its stakeholders, namely with all those whose actions are likely to have an impact on L’Oréal and all those who are concerned by its activities. Within the framework of an ongoing dialogue and as part of a process aimed at making continual progress, L’Oréal endeavours to take account of stakeholder expectations in its strategy. For this purpose, the Group has defined and developed a method of ad hoc interaction, that it considers the most efficient and appropriate, with all those involved. A strategy of an evolving dialogue The dialogue conducted by L’Oréal with its stakeholders took place in three phases: 1 st phase: upstream of the definition of the Group's Sharing Beauty With All commitments with regard to Sustainable Development, L’Oréal engaged in dialogue between 2011 and 2013 with 754 organisations, including an in-person dialogue

with 232 of them, through forums organised by the Group in 8 key countries. In 2012, the Group launched a “materiality analysis” to establish the priority focuses of its Sustainable Development strategy. This made it possible to identify 29 topics for attention shared by the stakeholders with regard to the Group. L’Oréal was then able to compare stakeholder expectations with the definition of its own CSR strategy. The materiality analysis took place in 4 phases: identification and prioritisation of stakeholder expectations; s identification and prioritisation of Sustainable Development s challenges for L’Oréal; establishment of materiality; s revision of CSR strategy and L’Oréal’s indicators. s Thanks to this process, L’Oréal is able, at regular intervals, to revise the priorities of its CSR strategy, assess the relevance of its indicators and adapt its reporting by communicating on the most “material” topics, namely those that are at the heart of the concerns of the stakeholders and the main challenges for the Group. 2 nd phase: in 2013 the Group set up a dialogue platform hosted on the loreal.com website making it possible to continue this dialogue on-line, offering the possibility for NGOs, associations and non-profit organisations to interact with the Group’s experts. 3 rd phase: since 2013, L’Oréal has set up special-purpose panels and consultations with regard to various topics in order to include the views of NGOs, associations, non-profit organisations and experts in its thought process and its projects. In 2016, the Group updated its materiality grid and, in 2017, engaged in dialogue with 110 stakeholders in order to challenge its projects and progress.

3

REGISTRATION DOCUMENT / L'ORÉAL 2017

169