2020 CLOSING REPORT We are proving that it is possible to deliver economic performance while reducing our impacts on the environment. 2020 was a crucial year for the Group in Committee. And each one of our employees seized the the area of corporate responsibility. The opportunity to make a difference. All roles and Covid-19 pandemic revealed the departments within the organisation got involved in this magnitude of the health, environmental great revolution. From product design to supply chain, and social risks that weigh on humanity. production, packaging and marketing, the whole value It also highlighted the fundamental role chain has been transformed. that companies must play, alongside • Thirdly, we have always thought that we could only reach public authorities and civil society, to help our objectives through collaboration and partnerships. build a more responsible, sustainable and From the beginning, we have maintained a dialogue with inclusive world. all our stakeholders to co-create our commitments. Additionally, we have relentlessly sought to challenge our When the pandemic struck, our absolute priority was of achievements, through the critical observations of a course the health and safety of our employees. We also took ‘Panel of Critical Friends’, an external governance action, together with our partners, to help address the crisis, initiative established in 2014 and composed of figures of and provided support to health workers across the world. international importance. And throughout these years, we have built strong partnerships with our suppliers and And this year marks the end of our sustainability distributors to find innovative solutions, based on the programme, Sharing Beauty with All. conviction that it’s only together that we will be able to In seven years, we have achieved the majority of our goals, move the needle and create a real impact. even exceeding some of them. For example, we reached Today, sustainability is at the heart of the Group’s strategy, an 81% reduction in CO emissions, surpassing our 60% governance and performance. But we know that we must 2 reduction goal. At the same time, we have grown our go further. The decade before us is critical for the planet. production by 29%. In this way, we are proving that it is The urgency is there. We collectively have a decade to act. possible to deliver economic performance while reducing Our new programme, L’Oréal for the Future, launched in our impacts on the environment. And while for some other the midst of the pandemic, reflects the deeper goals, there is still a little further to travel, the dynamic of transformation that we want to deliver. It is an even more transformation has begun. profound transformation of our efforts to ensure that the This non-financial performance, which is audited in the company enlists in the only scenario possible for humanity: same way as our financial results, has been recognised by the respect of planetary boundaries across the whole independent organisations which place the Group at the lifecycle of our products. top of leading ESG ratings. Additionally, we have been This change is profound because we must consider the identified as one of the 41 LEAD businesses, an accolade impact we create beyond our own company. We must reserved for the most advanced companies in terms of support our nearly 1.5 billion consumers in making responsible business conduct and contribution to the sustainable choices, and continuously empower our Sustainable Development Goals. suppliers and customers to become more involved in this dynamic. Over these last few years, three overarching principles have Finally, even more profound, we are going to donate guided our efforts: €150 million to support vulnerable women and the • Firstly, the desire to set highly ambitious goals, without environmental crisis, two causes that reflect the Group’s certainty of achieving them. In this way, Sharing Beauty values and longstanding commitments, and that will be with All created a fundamental paradigm shift, aiming to at the core of the next decade. reinvent the way we design, make and market our We want to take more responsibility, engage our entire products, and more generally the way we do business. ecosystem and show that companies can be part of the This is an approach that has generated a real virtuous solution to the challenges facing the world. circle, prompting us to be ever bolder, more creative and more innovative. L’Oréal won’t be able to change the world alone, but the • Secondly, the whole company rose up to help. We world also needs actors like us to reinvent itself. And we will embedded this ambition at the highest level, integrating rise to the occasion. the function of sustainability within our Executive With the ambition: a better future for all. 4