LOREAL_Registration_Document_2017

L'Oréal’s corporate social, environmental and societal responsibility* TABLES OF CONCORDANCE

Location of information

Standard number Disclosure title

Level of compliance Fully compliant

Theme

Additional information

All new suppliers completed the ethical commitment letter (except for certain categories, such as subscriptions for example, considered as not at risk). L'Oréal actively seeks to work with suppliers who share its ethical values and commitments. Its purchasing teams have the task of identifying new suppliers and integrating them in light of the Group's expectations and its strategy via the Welcome On Board (WOB) supplier referencing process. L’Oréal also uses analyses and ratings provided by Ecovadis, an analytical company, to evaluate the policies implemented by the Suppliers, among others, in terms of the items of the Vigilance Plan. Moreover, 76% of all direct L’Oréal suppliers have participated in the CDP Supply Chain Climate Change programme, and 60% have reported target actions.

308-1 New suppliers that were

3.1.3.4

Supplier Environmental Assessment

screened using environmental criteria

SOCIAL Employment

3

401-1 New employee hires and employee turnover 403-1 Workers representation in formal joint management–worker health and safety committees

Employee turnover : 12,78%

Fully compliant Fully compliant

3.2.1

3.1.2.6 3.1.3.2

Occupational Health

and

Safety

Training Education Training Education

and

404-1 Average hours of training per year per employee

Fully compliant Fully compliant

3.1.2.2

and

404-3 Percentage of employees

All employees receive an annual performance and career development review.

3.1.2.3

receiving regular performance and career development reviews

Fully compliant

3.1.4.4

Child Labor

408-1 Operations and suppliers at significant risk for incidents of child labor

87% of strategic suppliers have completed a self-assessment of their sustainability policy with the Group’s Sustainable Development. This percentage is based on the calculation of the number of suppliers who, in 2017, had been assessed on their social, environmental and ethical policies, as well as the application of such policies at their own suppliers, by Ecovadis. Out of all cases of non compliance, 3,8% related to child labour. In the event of major non-conformities, corrective action plans are put in place and are subject to a follow-up audit. The most serious cases of non-compliance or the absence of effective implementation of a corrective action plan may lead to the cessation of commercial relations.

Forced

or

409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

Fully compliant

3.1.4.4 5.4.3.2

Compulsory Labor

Human Rights Assessment

412-1 Operations that have been

Fully compliant

3.1.4.4

subject to human rights reviews or impact assessments

Human Rights Assessment

412-2 Employee training on human rights policies or procedures

Fully compliant

3.1.4.4

Supplier Social Assessment

414-2 Negative social impacts in the supply chain and actions taken

86% of portfolio of suppliers audited (out of those to be audited) Audits – Europe : 237 Audits – Asia, Pacific : 558 Audits – Americas : 395 Audits – Africa, Middle East Zone : 41 Out of all cases of non compliance: 36,4% were related to working conditions, health and safety

Fully compliant

3.2.4.2

22,9% were related to working hours 18,5% were related to remuneration 22,2% were categorised as "Other"

In the event of major non-conformities, corrective action plans are put in place and are subject to a follow-up audit. The most serious cases of non-compliance or the absence of effective implementation of a corrective action plan may lead to the cessation of commercial relations.

Customer Health and Safety

416-1 Assessment of the health and safety impacts of product and service categories 417-1 Requirements for product and service information and labeling

Fully compliant

3.1.4.5

Marketing and Labeling

L'Oréal complies with legal requirements regarding the labelling and marketing of its products, in particular their composition, methods of use and disposal instructions in the countries it operates in. Policies and initiatives going beyond legal requirements are listed in the report. Fully compliant

3.1.4.5 3.2.1.4 3.2.3.3

REGISTRATION DOCUMENT / L'ORÉAL 2017

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