LOREAL_Registration_Document_2017

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

2017 results GENERATION OF TRANSPORTABLE WASTE

The generation of waste at the industrial sites represented 87,187 tonnes in 2017 corresponding to a 1% decrease in absolute value as compared to 2016, and a 4% decrease with regard to production (g/FP). This reduction is the result of a number of medium- and long-term projects, right across the value chain of the Operations Division.

-37% (grams per finished product, excluding returnable packaging rotation, with returnable packaging accounted at source) 2005 2017

3

2017

2016

Transportable waste excluding returnable packaging rotation, with returnable packaging accounted at source (tonnes)

88,342 21,112 105,826

87,187 ; 19,026 ; 101,253 ‚;

Returnable packaging rotation (tonnes) (2)

Total recovered (tonnes) Recovery index (%) (3)

97 63

96 ;

Material recovery index (%) (4) 61 ‚; System for recording returnable transport packaging, excluding transport pallets: L’Oréal records the weight of its returnable packaging in transportable waste when it is used (1) for the first time. Then, each of its sites endeavours to maximise the number of rotations. This recording of the weight of returnable packaging at source is an incentive for rotation and contributes to increasing the life of the packaging through its reuse. In order to obtain a more accurate understanding of the recovery and raw material recovery indices, these indicators are now calculated excluding transport pallets which (2) represent a significant part of the returnable packaging in rotation. The recovery index corresponds to the quantity of waste recovered (101,253 t) whether material or energy, excluding transport pallets, divided by the total amount of waste (3) generated (105,326 t), including returnable packing rotation, excluding waste sent to landfill due to regulatory obligations and excluding transport pallets). The material recovery index corresponds to the quantity of waste recovered, excluding transport pallets, reused or recycled (64,543 t) divided by the total amount of waste (4) generated (105,326 t), including returnable packing rotation, excluding waste sent to landfill in accordance with regulatory obligations and excluding transport pallets).

Recovering the waste generated The reduction of waste generation also reflects the efficient use of resources. The Group’s ambition is to pursue this commitment, while associating it with that of recovery of the waste that it has not been possible to avoid. Indeed, the Group makes sure, at the same time, that it treats the waste in the best possible manner, and an extremely good recovery performance has been obtained for many years. In 2013, L’Oréal further set an objective of zero waste to landfill by 2020 for its industrial sites (excluding regulatory obligations); work was undertaken with specialised companies and the local authorities for the implementation of suitable treatment solutions. Mobilisation of all the sites thus made it possible to get very close to zero waste to landfill target over 2017 as a whole. With the exception of one site in the first months of the year, each distribution centre was successful in finding a channel for all of its wastes in 2017.

Achievement of the target of “zero waste to landfill” is the first stage of a more global process of circular savings in which the Group is engaged. The objective is to maximise the recovery of its waste by giving priority to reuse or recycling. Furthermore, L’Oréal seeks to promote as far as possible the local treatment of waste, in order to reduce the environmental impact of the waste and to create potential synergies with other organisations and entities in the territory. 2017 results 96% of waste was recovered in 2017 ; , i.e. 10% more than in 2005 (29 plants and 29 distribution centres have a recovery rate of 100% in 2017). ; 3.8% of waste was destroyed without recovery (incineration without recovery for energy use and waste to landfill not including regulatory constraints), i.e. 4,034 tonnes.

; The Statutory Auditors have expressed a reasonable assurance with regard to this indicator.

REGISTRATION DOCUMENT / L'ORÉAL 2017

195