MAIN RESULTS 2018

“We are fully engaged in striving to reach the highly ambitious goals of our
Sharing Beauty With All programme by the end of 2020.( ...) L’Oréal will
continue to be a high-performing company if, and only if, it generates sustainable
growth while creating shared value.”

Jean-Paul Agon, Chairman and CEO

CONTENTS

1 / SUSTAINABILITY IS IN L’ORÉAL’S DNA

2 / SHARING BEAUTY WITH ALL, OBJECTIVES AND 2018 RESULTS

3 / SHARING BEAUTY WITH ALL, A RECOGNISED INITIATIVE

 SUSTAINABILITY
1/
IS IN L’ORÉAL’S DNA
 1995
Environmental research 2002
laboratory Social audits

2007
Fondation L’Oréal

1979
Reconstructed skin 2013
Sustainability, a strategic priority
for L’Oréal
 SHARING BEAUTY WITH ALL
2/
OBJECTIVES AND 2018 RESULTS
INNOVATING By the end of 2020, 100% of our products will have an improved environmental or social
SUSTAINABLY profile.

PRODUCING By the end of 2020, we will have reduced our environmental footprint by 60%.
SUSTAINABLY

LIVING By the end of 2020, 100% of our brands will report on their progress and raise consumer
SUSTAINABLY awareness of their commitments.

DEVELOPING
SUSTAINABLY
By the end of 2020, L’Oréal employees will have access to health cover, financial
EMPLOYEES
protection and training, no matter where they are in the world.

SUPPLIERS By the end of 2020, 100% of our strategic suppliers will take part in our sustainable
policy.

COMMUNITIES By the end of 2020, L’Oréal will enable 100,000 people from underprivileged
communities to gain access to employment through our diverse social inclusion
programmes.
 2018 IN 5 KEY FIGURES

- 77% 79% 57% 63,584 3

of CO2 emissions of new products have of our brands have people from L’Oréal was recognized
from our plants and an improved social or conducted a consumer underprivileged for the third year running
distribution centres. environmental profile. awareness initiative. communities have gained with 3 ‘As’ in the rankings
access to employment. conducted by CDP.
INNOVATING
SUSTAINABLY

BY THE END OF 2020, 100% OF OUR

PRODUCTS WILL HAVE AN IMPROVED
ENVIRONMENTAL OR SOCIAL PROFILE.
2018 RESULTS

79% OF NEW OR RENOVATED

PRODUCTS HAVE AN IMPROVED
ENVIRONMENTAL OR SOCIAL PROFILE.
A HAIR-STYLING MIST THAT RESPECTS
THE ENVIRONMENT

In 2018, L’Oréal Paris launched its Stylista Beach Wave Mist.

• An ultra-light mist texture combining two requirements:

effectiveness and respect for the environment.

• Its formula is more than 99% biodegradable.

• Its minimal water footprint is reduced by 98% compared

to the category average.
PRODUCING
SUSTAINABLY

BY THE END OF 2020, THE

ENVIRONMENTAL FOOTPRINT OF
OUR PLANTS AND DISTRIBUTION CENTRES
WILL BE REDUCED BY 60%.
2018 RESULTS

- 77% OF CO2 EMISSIONS

FROM OUR PLANTS AND
DISTRIBUTION CENTRES,
IN ABSOLUTE TERMS,
COMPARED TO 2005.
ACTIVE COSMETICS PRODUCTION:
TWO PLANTS GO CARBON NEUTRAL
Specialising in the fabrication of healthcare and dermo-cosmetic
products, the production facility Active Cosmetics Production
comprises the Vichy plant, which obtained carbon neutrality in 2017,
and the La Roche-Posay site.

• On this second site, energy efficiency efforts and research into

sources of renewable energy led to an innovative, biopropane-based
solution in early 2018.

• The plant began using this new source of energy in mid-2018, a first
for the industry in France. The La Roche-Posay plant’s energy mix
is now derived from 100% renewable sources.
2018 RESULTS

- 48% IN WATER CONSUMPTION

IN OUR PLANTS AND DISTRIBUTION
CENTRES, COMPARED TO 2005.

- 37% IN WASTE GENERATION

IN OUR PLANTS AND DISTRIBUTION
CENTRES, COMPARED TO 2005.
VORSINO PLANT : THE IMPLEMENTATION OF DRY
FACTORIES CONTINUES
The Vorsino plant in Russia became the Group’s third dry factory,
due to a major programme of modernisation and expansion of its
water treatment facility:

• The project enabled the plant to treat a larger volume of

industrial water and reach a very high level of water quality.

• The plant increased its physical, chemical and biological

treatment capacity and added a crystallisation mechanism to
minimise residues.

All these improvements combined now enable the Vorsino plant to

reuse 99% of its wastewater in a closed loop.
 LIVING
SUSTAINABLY

L’Oréal wants to offer its consumers the

opportunity to make sustainable consumption
choices.

BY THE END OF 2020, 100% OF OUR BRANDS

WILL HAVE ASSESSED THEIR FOOTPRINT AND
UNDERTAKE CONSUMER AWARENESS-RAISING
INITIATIVES.
2018 RESULTS

100% OF PRODUCTS CREATED OR

RENOVATED IN 2018 – 2,195 PRODUCTS –
WERE ASSESSED WITH SPOT, OUR
ENVIRONMENTAL AND SOCIAL PRODUCT
PERFORMANCE ASSESSMENT TOOL.

SPOT is a first in the beauty industry, it enables us

to measure a product’s environmental and social
impacts and identify opportunities for improvement.
2018 RESULTS

57% OF OUR BRANDS HAVE CONDUCTED

A CONSUMER AWARENESS INITIATIVE.
LANCÔME FIGHTS ILLITERACY

• In partnership with the global NGO CARE, Lancôme has

created the Write Her Future initiative in order to fight
illiteracy, which affects 76 million young women globally.

• Literacy programmes has been launched in Morocco,

Guatemala and Thailand, benefitting 2,047 people in 2018.

• Partnerships with local NGOs and Write Her Future were

launched in 2018 in France, Germany, the United Kingdom and
Spain.
DEVELOPING
SUSTAINABLY

BY THE END OF 2020, 100,000 PEOPLE

FROM UNDERPRIVILEGED COMMUNITIES
WILL HAVE GAINED ACCESS
TO EMPLOYMENT.
2018 RESULTS
COMMUNITIES

63,584 PEOPLE FROM UNDEPRIVILEGED

COMMUNITIES GAINED ACCESS TO
EMPLOYMENT.
A PLANT LEADING THE WAY ON INCLUDING
PEOPLE WITH DISABILITIES
In Bogota, the Group’s plant had already installed the latest
accessibility equipment and trained some of its employees in sign
language.

• In 2018, it expanded these initiatives with dedicated lifts, access

ramps, subtitling in meetings and Braille signs.

• The plant created an application dedicated to deaf employees and

those with hearing difficulties, allowing them to make telephone
calls using a video-calling service that links to a sign language
interpreter .
2018 RESULTS
SUPPLIERS

83% OF OUR STRATEGIC SUPPLIERS

WERE ASSESSED AND SELECTED
ON THE BASIS OF THEIR ENVIRONMENTAL
AND SOCIAL PERFORMANCE.
2018 RESULTS
EMPLOYEES

96% OF EMPLOYEES BENEFIT FROM

HEALTH COVER THAT REFLECTS BEST
PRACTICE IN THEIR COUNTRY OF
RESIDENCE.

93% OF EMPLOYEES BENEFIT FROM

FINANCIAL PROTECTION THAT REFLECTS
BEST PRACTICE IN THE MARKET.
 SHARING BEAUTY WITH ALL
3/
A RECOGNISED INITIATIVE
THE SCOPE OF SBWA
THE WHOLE VALUE CHAIN AND ITS IMPACTS, COVERED

PACKAGING
RAW MATERIALS
SUPPLIERS PRODUCTION DISTRIBUTION CONSUMPTION WASTE

28% 5% 7% 58% 2%
LOW CARBON GROWTH
A NEW AMBITION

-77% +38%
CO2 emissions production volume

In 2018, we have once again been able to show that economic

performance and environmental, social and societal performance
go hand in hand and are mutually reinforcing.
 PERFORMANCE INDICATOR
COMMITTED MANAGEMENT

• Part of L’Oréal CEO’s bonus based on the

performance of Sharing Beauty With All
(since 2014).

• Integration of SBWA performance criteria in

the bonus calculation for brand and country
managers (since 2016).
 CO-CREATION
WITH STAKEHOLDERS

More than 1,000 NGOs, associations and

experts were consulted since 2011.
 CONTRIBUTING TO THE OBJECTIVES
OF THE UNITED NATIONS

• For almost 20 years, L’Oréal has supported

and acted on the principles of the United Nations
Global Compact.

• The Group contributes to 14 of the 17 major

Sustainable Development Goals established by
the United Nations in 2015.
 REPORTING
A RECOGNISED PERFORMANCE

• Annual reporting through a Progress Report,

based on indicators verified by Statutory Auditors.
• 3 As awarded by CDP for the 3rd year running.
• L’Oréal ranked as one of the “World’s most Ethical Companies”
by the Ethisphere Institute.
• Vigeo Eiris ranks L’Oréal number 1 in all sectors.
• ISS-OEKOM presented L’Oréal with Prime status.
• L’Oréal retained its position in both of the Ethibel Sustainability
Indices.
• Covalence, the ethical reputation index ranked L’Oréal as No. 1
globally.
 SCIENCE BASED TARGETS
A RENEWED CLIMATE AMBITION

• New commitments towards 2030 in the fight

against climate change and the reduction of
our carbon footprint.

• Global goal: reduce by 25% in absolute terms,

all our direct and indirect greenhouse gas
emissions, compared to 2016.

• By 2025, all L’Oréal’s manufacturing,

administrative and research sites
will have achieved carbon neutrality.