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.

Improving the way we manufacture products SPOTLIGHT ON (scopes 1 and 2) L’Oréal USA achieved carbon We have adopted a two pronged approach to curbing neutrality across all sites our carbon footprint. We have reduced emissions from our industrial sites by 87% since 2005 by In September 2021 our largest subsidiary, L’Oréal USA, increasing the use of local renewable energy and achieved carbon neutrality for Scope 1 and 2 emissions at improving energy efficiency, all while increasing its 25 US sites across 12 states, including manufacturing our production by 37% proving that it is possible to and distribution hubs, administrative sites, and research and combine economic growth with ambitious climate innovation facilities. All rolled out measures to reduce energy action. Energy from renewable sources now meets use and increase their reliance on renewables energy. As a 80% of the needs of L’Oréal factories and distribution result, 70% of L’Oréal USA sites are now involved in local centres, thanks to major projects leveraging solutions, renewable energy projects. Since 2005 L’Oréal has installed best suited to the location of each site such as 50,000 solar panels nationwide and incorporated the use of biomass, biomethanisation and solar panels along local renewable natural gas ( to heat water and workspaces. with the purchase of renewable gas and electricity. 100 of our sites achieved carbon neutrality by the end of 2021 including 25 factories. Empowering our suppliers and consumers to reduce their footprint (Scope 3) DID YOU Downstream, it means curbing carbon emissions linked to the KNOW? product use phase. To do so, we will pursue innovation to : 01 Reduce water needed to rinse our products off by 25% per finished product by 2030 (compared with 2016) such as solid shampoo. Upstream, this means ensuring our Change consumer habits to lower the temperature of their shower suppliers reduce their own emissions. 02 water and to take shorter showers through communication We have set specific targets to this end by campaigns and innovating to offer products that require less or 2030 our strategic suppliers will reduce their no water such as no rince conditioners. direct emissions (scopes 1 and 2) by 50% in absolute terms, compared with 2016. 03 Scale-up innovative technologies such as L’Oreal Water Saver, a showerhead developed with the startup Gjosa which reduce of water use in hairdressers salons by up to 65%. SPOTLIGHT ON Garnier’s no rinse conditioner In early 2022 our brand Garnier launched the first mass market no rinse Conditioner, which can save up to 100 litres of water compared to Ultimate Blends 200 ml conditioner bottle. With an average of up to 7 L of water used every time a person conditions their hair, removing the requirement for any rinse off whilst avoiding product residue can play a significant role in reducing consumer water consumption and cutting carbon emissions. The conditioner is produced in one of Garnier’s carbon neutral and waterloop” factories and in a cardboard integrated tube using 75% less plastic, compared to same size conventional 200 ml conditioner tube.