Climate Report

Fighting climate change As the latest IPCC report confirmed in April 2022, “it is now or never” that we need to act to avoid the worst impacts of climate change. In that perspective, industrial companies must commit to a voluntary transition towards a low carbon economy. At L’Oréal, for over 20 years, we have been committed to tackling climate change. In 2020, with L’Oreal For the Future programme, our commitment is to ensure that our activities are respectful of the so-called “Planetary Boundaries”. In 2015, we were among the first one hundred companies to set Science Based Targets on Climate (SBT). Our overarching climate change objective is to align our greenhouse gas (GHG) emissions with the +1.5°C scenario, meaning we will reduce all GHG emissions by 50% per finished * product for Scopes 1, 2 and 3 in 2030, and achieve Net-Zero by 2050. At the end of 2021, we already had reduced the CO emissions of our plants and distribution centres 2 by 87% in absolute value, compared with 2005, while our production increased by 37%. And we met our targets without relying on carbon-offsetting projects. This is the only way we can make a truly positive contribution to the fight against climate change. We must ensure our activities are compatible with Planetary Boundaries and do not threaten our safe operating space. It is the philosophy that guides our L’Oréal for the Future programme. 2021 2030 results goals Our targets and achievements to date By 2025, all our sites will achieve carbon neutrality by improving 58% 100% energy efficiency and using 100% renewable energy. By 2030, we will innovate to enable our consumers to reduce their greenhouse gas emissions resulting from the use of our products by 25% compared to -12% -25% 2016, on average and per finished product (tCO eq/kg of formulas sold). 2 What are scope 1, 2 and 3 emissions? L’Oréal has been awarded for nine years Scope 1 Scope 3 in a row, an A rating for our leadership in Direct emissions from owned or All other indirect emissions tackling climate change controlled sources. related to product by global environmental supply chain (‘upstream’ non profit CDP. Scope 2 emissions) and the use Indirect emissions related to the of products and services consumption of electricity, heat or during their life cycle steam necessary for product (‘downstream’ emissions). processing or to our operation.