LOREAL_Registration_Document_2017

L'Oréal’s corporate social, environmental and societal responsibility* METHODOLOGICAL NOTES

Data 3.3.3.3. The following method is used to collect data for the defined scope: the data are collected using the dedicated intranet-based site reporting system, available in all countries in which there is a L’Oréal subsidiary. The required data are reported every month by the local managers. When the data are compiled, each site or zone must validate the accuracy of the data provided. A process of continuous improvement of these systems has been put in place. They are reviewed each year by the Statutory Auditors, taking into account their recommendations and monitoring objectives for subsequent years: updating the indicators to be monitored, improving their definition, and enhancing the communication, monitoring and control process. Scope of consolidation 3.3.4.1. The scope covers, depending on the indicators, L’Oréal parent company, France or the Group. The specific scope is specified for each indicator. Indicators 3.3.4.2. The indicators chosen are those within the scope of the Grenelle II regulations, with the aim of data comparability. Data 3.3.4.3. The following methods are used to collect data for the defined scope: the data relating to Ethics is collected by the Ethics s Department using the Annual Ethics Reporting platform. A certain amount of data is collected by the Country reporting intranet system for the collection of Human Resources data (see the Human Resources data reporting methodology described above); the other data are collected from the Corporate s Department concerned (Communications Department, Sustainable Development Department, Human Resources Department, Purchasing Department, Worldwide Safety Evaluation and the Director of Risk Management and Compliance). SOCIETAL DATA 3.3.4.

The calculation of the indicators is based on all new or updated products (sales models only), i.e. products manufactured in 2017 which did not exist in 2016. The products considered in 2017 cover all categories of formulas (including make-up and perfumes). The calculation of the indicators is made on the basis of the number of new or updated products, either in terms of formula or in terms of packaging. New or updated products do not include “nuanced extensions” or changes in appearance that do not affect the environmental and social profile. Indicators 3.3.5.2. Concerning the indicator on the “Percentage of products analysed with an improved social or environmental profile (as a %)”: a new or updated product is included in the indicator if its profile has been improved according to the SPOT methodology. This methodology seeks to aggregate the performance of each driver to ensure that the potential deterioration of one of them is scientifically offset by an overall improvement in the environmental and social profile. With regards to the indicator “Percentage of new or renovated products having an improved environmental profile thanks to a new formula with a reduced environmental footprint”: the improvement is assessed on the basis of the biodegradability and eco-toxicity criteria of the new formula or the updated formula compared to the average rating of the product family concerned, for an equivalent use. It concerns products with a new or updated formula, but also new products with an existing formula in new packaging. Concerning the indicator “Percentage of new or renovated products having an improved environmental profile thanks to a reduction in the environmental footprint of new packaging”: the improvement is assessed on the basis of the criteria of the quantity of resources used, quality/sustainability of the resources used (recycled) and management of the end of life of the new packaging or updated packaging compared to the average rating of the product family concerned, for an equivalent use. It only concerns products for which the packaging is new or updated. Concerning the indicator “Percentage of new or updated products having an improved social profile because of their positive social impact”: the indicator corresponds to the percentage of new or updated products including raw materials or packaging obtained under the Solidarity Sourcing programme. It also includes products providing information to consumers about product performance or best practice in terms of Sustainable Development.

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INNOVATING SUSTAINABLY DATA 3.3.5.

Scope of consolidation 3.3.5.1. The calculation is performed using a scope restricted to products designed or updated by L’Oréal's design centres and produced by the Group's plants or by subcontractors.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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