LOREAL_Registration_Document_2017

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

LIVING SUSTAINABLY 3.2.3 “By 2020, the Group wants to empower all L’Oréal consumers to make sustainable consumption choices”.

2020 TARGETS

2017 RESULTS

100% of new or updated products are assessed using the SPOT product assessment tool. The indicator of the percentage of brands that provide consumers with information from the SPOT tool will be completed as soon as the environmental and social information system, which is in the process of being prepared and which will be deployed by 2020, is finalised. 91% of the brands have evaluated their social or environmental impact. This percentage is calculated on the basis of their share of consolidated sales for 2016. 46% of the brands have carried out an action to raise awareness among consumers. The percentage of brands raising awareness among consumers about sustainable lifestyle choices in 2017 is calculated on the basis of their share of consolidated sales for 2016. Following the framework of the consultative panels in 2016, the Group's initiatives take into account consumers' expectations expressed in a series of surveys conducted in 2017 on Sustainable Development challenges. footprint (formula and packaging), these impacts are added together using the so-called Planetary Boundaries method. The final stage involves comparing the footprint to a benchmark in order to obtain a dimensionless score between zero and 10 which allows the product design teams to measure their progress. This tool has enabled the environmental and societal/social footprint of all updated or new products in 2017 to be assessed. Developing ongoing improvement plans with the brands At the same time as the development of the tool, each brand will have assessed its environmental and societal footprint by 2020 and will have made commitments to improve it. In order to do so, the Packaging & Development teams, the CSR team and the laboratories conduct, with the Management Committees of the international brands, analyses of their portfolios of formulas and their packaging. The aim is to define sustainable innovation plans in order to systematically identify the possible improvement drivers for each range and each product in order to activate them.

A product assessment tool will evaluate the environmental and social profile of all new products. All brands will make this information available to allow consumers to make sustainable lifestyle choices.

All brands will have assessed their environmental and social impact and made commitments to improve their footprint.

Every brand will report on its progress and associate consumers with its commitments.

Our consumers will be able to influence our sustainability actions through a Consumer Sustainability Panel.

Assessing the footprint of our 3.2.3.1. products

The Sustainable Product Optimisation Tool: a tool for assessing the environmental and social footprints of our products In 2017, the SPOT ( Sustainable Product Optimisation Tool ) tool has been rolled out to all Group brands (except recent acquisitions). This tool enables the complete environmental and societal/social footprint of a product to be calculated in accordance with the European Commission recommendation ( Product Environmental Footprint ) on the use of common methods to measure and communicate the life cycle environmental performance of products and organisations. A methodology for measuring the social impact products has been jointly developed with 9 international experts in the field of social life cycle assessments. The SPOT tool provides exhaustive measurements of all environmental factors by integrating 14 impact factors used by the European product environmental footprint framework. A standardised version of these different impacts is applied on the basis of the average impacts of a European consumer. Then, in order to entertain a unique product environmental

REGISTRATION DOCUMENT / L'ORÉAL 2017

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