Living sustainably 2020 CLOSING REPORT 2020 TARGETS 2020 RESULTS 2019 RESULTS L’Oréal will evaluate the environmental and social 100% of new or renovated products in 2020 profile of all its products using an assessment tool. * All brands will make this information publicly available were assessed using our product assessment tool . to allow consumers to make sustainable choices. The indicator of the percentage of brands that communicate 100% information arising from the SPOT tool to consumers will be completed as soon as the social and environmental display system is finalised. The system is currently being developed and implemented. All brands will assess their environmental and social impact 100% of the international brands present in the Group and make commitments to improve it. in 2013 have assessed their social and environmental impact. 99% Including the acquisitions since 2013, the percentage would be 89%. Every brand will report on its sustainability progress 79% of brands conducted a consumer and raise consumer awareness of its commitments. awareness initiative. 57% Consumers will be able to influence L’Oréal’s sustainability In 2020, in an extension of the advisory committee established in efforts through a consumer advisory committee. 2016, L’Oréal continued its policy of actively listening to consumers on sustainability topics. This encompassed multiple studies conducted among American, Indian and European consumer panels, enabling the Group to understand their expectations and refine its policies. Innovating sustainablyDeveloping sustainably… 2020 TARGETS 2020 RESULTS 2019 2020 TARGETS2020 RESULTS2019 RESULTS RESULTS … with communities 100% of L’Oréal products will have an improved environmental96% of new or renovated products or social profile.have an improved environmental or social profile. 85% By 2020, L’Oréal will enable more than 100,000 people from Every time the Group creates or renovates a product, it will underprivileged communities to gain access to employment 100,905 people from underprivileged communities gained 90,635 improve the product’s environmental or social profile withthrough the following programmes: access to employment. people regard to at least one of these four criteria: • the new formula reduces the product’s39% of new or renovated products now have an improved • Solidarity Sourcing programme;81,138 people gained access to work through 70,912 environmental footprint, particularly with regardenvironmental profile due to a new formula with a lower 46%the Solidarity Sourcing programme. people to water use;environmental footprint. 69% of new or renovated products now have an improved • vocational training in the beauty sector; 18,386 people in situations of significant vulnerability 18,443 • the new formula uses renewable raw materialsenvironmental profile due to a new formula incorporating were trained in beauty professions. people that are sustainably sourced or derived fromrenewable raw materials that are either sustainably sourced or 59% green chemistry;respect the principles of green chemistry. • equal opportunities for people with disabilities. 1,381 people with disabilities work for L’Oréal. 1,280 49% of new or renovated products now have an improved people • the new product has a positive social impact;social profile, as they incorporate raw materials from Solidarity 40% Sourcing programmes.… with suppliers • the new packaging has an improved85% of new or renovated products now have an improved L’Oréal will assess and select all strategic suppliers environmental profile due to packaging with a lower 67% ** environmental profile. on the basis of their environmental and social 97% of the Group’s strategic suppliers have been environmental footprint. performance. assessed and selected to date on the basis of their 87% *** environmental and social performance . All strategic suppliers will assess their own sustainability 99% of strategic suppliers have completed policy, with L’Oréal’s support. a self-assessment of their sustainability policy with 96% **** Producingsustainably L’Oréal’s support. All suppliers will have access to L’Oréal training Our dedicated online training platform was launched at the end 2019 tools to improve their sustainability policies. of October 2016. It is firstly being made available to strategic 2020 TARGETS2020 RESULTSRESULTS suppliers, before being gradually implemented more broadly. L’Oréal will reduce the CO emissions generated 2-81% reduction in CO emissions from plants and 20% of strategic suppliers will support by its plants and distribution centres by 60% in2- 78%the Solidarity Sourcing programme. 22% strategic suppliers are involved in 17% absolute terms, compared to 2005.distribution centres since 2005. the Solidarity Sourcing programme. L’Oréal will cut the CO emissions linked to the 2-24% reduction in CO emissions linked to the transport … with employees transport of its products by 20% (in gram of CO per2 2of products (in gram of CO per sales unit per km) since 2011 - 12% sales unit per km), compared to 2011.2 with 434,293 tonnes of CO2 emitted in 2020.Employees will benefit from health cover that reflects 96% of the Group’s permanent employees benefit from best practice in their country of residence. health cover that reflects best practice in their country of 94% L’Oréal will lower its water consumption by 60%-49% decrease in water consumption at plants residence. per finished product, compared to 2005.and distribution centres since 2005 (in litre/finished product).- 51%Employees will benefit from financial protection in the 92% of the Group’s permanent employees have access event of a life-changing accident. to financial protection in the event of a life-changing accident 91% L’Oréal will reduce its waste generation by 60%-37% reduction in waste generated from plants and - 35% (death or permanent disability). per finished product, compared to 2005.distribution centres since 2005 (in gram per finished product). Every L’Oréal employee will be able to attend at least 100% of the Group’s employees benefitted from 96% one training session per year, wherever they are in the world. at least one training session in 2020. L’Oréal will send zero industrial waste to landfill.* The 0 waste to landfill goal (beyond regulatory requirements) for all factories and distribution centres was achieved in 2018. * The scope includes products made by L’Oréal (except full-buy, recent acquisitions, testers and samples, etc.) since the beginning of the Sharing Beauty with All program in 2013. ** ‘Strategic suppliers’ are suppliers whose added value is significant for the Group by contributing to L’Oréal’s strategy through their weight, innovations, shared goalsand geographical representation. *** The number of suppliers assessed represents more than 85% of direct purchases by value (raw materials, items of packaging and sub-contracting). Elsewhere, in 2020, 1,268 audits were conducted, bringing the total to more than 13,600 since 2006. **** The percentage is derived from the calculation of the number of suppliers that had, in 2020, had their social, environmental and ethical policies (as well as the implementation of these policies among their own suppliers) assessed by Ecovadis. 10