6 L’Oréal for the Future A strategy built on three pillars Overview of the strategy 1 TRANSFORMING OURSELVES AND RESPECTING PLANETARY BOUNDARIES Scientists unanimously agree that crossing the “Planetary Boundaries” will threaten humanity’s safe operating space . Hence, our commitment is to operate within the limits of the planet and adapt to what it can withstand, as defined by environmental science. We are implementing a new internal transformation program, with quantifiable objectives, to limit the impact of all our activities on climate, water, biodiversity and natural resources. CONTRIBUTING TO SOLVING THE CHALLENGES OF THE WORLD BY SUPPORTING URGENT SOCIAL AND ENVIRONMENTAL NEEDS Beyond the transformation of our business model, we want to help address some of today’s most pressing social and environmental challenges. This is our way of giving back to society and demonstrating that companies can be part of the solution. We are allocating 100 million euros to impact investing dedicated to the regeneration of ecosystems and the development of the circular economy, and 50 million euros to a charitable endowment fund to support highly vulnerable women. EMPOWERING OUR BUSINESS ECOSYSTEM HELPING IT TRANSITION TO A MORE SUSTAINABLE WORLD We believe it is our responsibility to involve our customers, suppliers and consumers in our transformation process. We are making new commitments to ensure our suppliers’ sustainable development policies are as ambitious as our own, and are including the empowerment of the communities we interact with as a key objective for 2030. We are also launching our environmental and social labelling system to allow our consumers to make informed purchasing choices that are in line with their values. 2 3 To define and refine L’Oréal’s next steps in sustainability, seven internal expert panels have been working since April 2019, coordinating independent studies and working with outside partners and civil society. The outcome is a strategy with measurable, time-bound impact reduction targets that will guide our internal transformation, that of our stakeholders and our contribution to urgent social and environmental needs.