LOREAL_Registration_Document_2017

L'Oréal’s corporate social, environmental and societal responsibility* THE SHARING BEAUTY WITH ALL PROGRAMME

Replace Aware that non-renewable resources will not last forever, the Group seeks to replace them with recycled materials or biomass-based materials. Several brands include in their bottles up to 100% of recycled plastic (Kiehl’s, Redken, L’Oréal Paris), or recycled glass (L’Oréal Professionnel, Garnier, Biotherm, Vichy). L’Oréal also contributes to the development of new sources of recycled materials by means of a partnership with new suppliers. In India, for example, L’Oréal supported the creation of a channel of new recycled, food quality PET plastic with Reliance. 7,294 tonnes of recycled materials made it possible to save the equivalent quantity of virgin materials in 2017 (nearly 10% more than in 2016). The 250 ml bottle of the Kiehl’s “Calendula” range is 100% recycled PET plastic, thus saving 32.6 tonnes of virgin plastic over a year. The bottles of the L’Oréal Paris “Botanicals” ranges

are also 100% recycled PET plastic, which enables 84.5 tonnes of virgin plastic to be saved over a year. In 2017, L’Oréal launched for the first time on the market 100% recycled, food quality PE plastic shampoo bottles: Pureology, Biolage, Redken, in the United States. The Pureology launch also received a prize at the NJPEC Awards in the cosmetics category, rewarding the efforts put into the eco-design of this packaging. Beyond the eco-design of this packaging, L’Oréal is also researching solutions to improve the end-of-life of its packaging. In this area, L’Oréal has created a consortium with Carbios to perfect and enzymatic biorecycling process with the goal of restoring the original material without it degrading. L’Oréal has also joined the Ellen MacArthur foundation whose objective is to rethink the life-cycle of plastic so that plastic packaging never becomes a waste and is re-inserted into the economy in the form of materials with biological or technical value.

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7,294 tonnes of recycled materials used in the Group's packaging

Demonstrating a societal benefit 3.2.1.5. The objectives of the Sharing Beauty With All programme express L’Oréal’s conviction that the reduction of the environmental footprint of its products has to be accompanied by an improvement in their societal benefit. By using fair trade for its procurement of raw materials, L’Oréal responds to this requirement. It contributes to the social 2017 results

integration of people in difficulty while guaranteeing environmentally friendly sourcing. Equity in business and equal opportunities have gradually become major pillars of the Group’s responsible purchasing programme Solidarity Sourcing launched in 2010 (see paragraph 3.2.4.3 Solidarity Sourcing ).

31% of new or updated products have an improved social profile thanks, in particular, to the Solidarity Sourcing programme.

For example, in 2017: since 2014, 100% of our shea butter purchases come from s Burkina Faso. the Group's purchasing contracts guarantee 36,000 s women, who are partners within the female of women producers: prepayments for their crops, • a fair price, • access to training, • the implementation of community projects; •

in Burkina Faso, less than 3% of families have access to s electricity and 87% of households use wood for cooking. Energy expenditure represents almost one quarter of household budgets and 105,000 hectares of forest disappear every year. Since its introduction in 2016, the sustainable and fair sourcing system has striven to combat fuel poverty and deforestation by facilitating the distribution of so-called improved stoves to women. The project's impacts are increasing: household wood consumption has reduced by half and • significant savings are being achieved,

REGISTRATION DOCUMENT / L'ORÉAL 2017

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