LOREAL_Registration_Document_2017

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

Indeed, any solid discharge that is not a finished product intended for consumers is considered as waste, whatever its treatment and future recovery. This includes, for example, raw material packaging or packing items, wastewater treatment plant sludge, broken pallets, etc. Reducing waste generation at source L’Oréal’s commitment concerning waste reduction requires the involvement of a large number of players. It is an environmental performance indicator, first and foremost for its industrial sites but also across the Group’s value chain: from packaging, in which the teams are mobilised through s an eco-design process for transport packaging (reduction of weight or volume, optimisation, reuse, etc. ) aimed at reducing waste as from the design of packaging; to the purchasing teams, the privileged contacts with s suppliers who are the main producers of transport packaging for raw materials and packing items received in the Group’s plants; through all the industrial teams involved in the quest for s ongoing improvement of the manufacturing and packaging processes, in order to reduce losses; or also by developing wall-to-wall production, a process which reduces at source the waste related to the procurement of components; and up to the whole of the supply chain for which the s reduction in obsolete inventories is essential for the reduction of waste related to the activities. For example, in 2016, the Europe zone initiated a programme for the reduction of obsolete products through concerted action, firstly, with regards to sale forecasts and, secondly, with regards to recovery via outlets, family sales, staff sales and gifts. Furthermore, the Group has initiated a campaign against wasting food. L’Oréal adopts best practices in the Company restaurants that it manages directly, serving approximately 2,000 meals a day in the Paris region: there is very strict monitoring of use-by dates and inventories, real-time and on-demand cooking, and a service that is attentive to the quantities served while satisfying individual demands. A food donation agreement has been entered into with Restaurants du Cœur which has as a result been able to benefit from around 3,000 meals in the Aulnay-sous-Bois municipal area in 2017. Donations of excess food are also requested from Company restaurants managed as concessions in order to encourage this initiative to support non-profit associations. Reduction of waste generation by the industrial sites is therefore a cross-disciplinary, managerial and organisational challenge.

THE WATER DISCLOSURE PROJECT : A CDP INITIATIVE IN FAVOUR OF THE TRANSPARENCY OF WATER INFORMATION Since 2010, L’Oréal has taken part in the Water Disclosure Project , of which it is one of the Founding Responders. This programme is aimed at encouraging companies to publish every year their water management strategy, their results and the projects they have launched to improve their performances and to reduce the risks with regard to their activities related to water consumption. It was launched by the CDP, an important, independent non-profit organisation which promotes transparency and environmental information reporting with regard to several topics: global warming, water, deforestation, etc. In 2017, L’Oréal was recognised for the first time as one of the world leaders for its strategy and its actions with regard to sustainable water management given a score of “A”, i.e. the highest possible level of performance in the CDP rating. L’Oréal is also working with its supply chain on sustainable water management. In 2017, for the 5 th edition of the Water Disclosure Project supply chain, L’Oréal selected 97 of its suppliers, mainly of raw materials, packaging items and subcontracting services on the basis of the following 3 criteria: technologies using particularly high amounts of water, the location of at least one production site in water stressed areas, and the significance of the volumes of purchases by L’Oréal. 84 of them agreed to take part in the programme and will be given an individual result sheet showing the comments of the Group’s environmental experts, which will enable them to identify the key points for progress. L’Oréal also encourages these suppliers to measure, report and set themselves water consumption reduction targets for each of their production sites and to deploy a water-related risk assessment and management system.

Reducing waste generation per 3.2.2.3.

finished product by 60% from a 2005 baseline

For many years, L’Oréal has followed an ambitious waste management policy that goes far beyond regulatory compliance and the prevention of risks. Within the framework of the Sharing Beauty With All programme, the Group has raised its ambition by pledging to reduce the waste generated by its plants and distribution centres by 60%. An ambitious challenge, in light of L’Oréal’s exacting definition of waste.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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