1.2. BUSINESS MODEL: ECONOMIC AND CORPORATE EXCELLENCE TO  CREATE LASTING VALUE FOR ALL 1 . Create the beauty that moves the world The purpose (raison d’être) is a core principle for the Group, to see ourselves as a high-performing, committed, responsible, inclusive company showing solidarity in decades to come. SENSE O F PURPOSE (“RAISO N D’ÊTRE”) L’Oréal’s ambition s to offer women and men around the world the best in cosmetics in terms of quality, responsibility, effectiveness, sincerity and safety, in order to meet all their needs and beauty wishes in their infinite diversity. BEAUTY FO R ALL Created in 1909, N o 1 in beauty, its sole business RESOURCES Research and innovation • 517 patents filed in 2021 • €1,029 million: Resear ch and Innovation expenses • 20 cosmetic research centres, 13 assessment centres • 4,054 employees around the globe Human capital • 85,412 employees • 55% of key positions held by women Purchases of goods and services • €5.01 billion in purchases related to production • 63% of newly referenced raw materials are renewable • 40% of newly referenced raw materials respect the principles of green chemistry Brands • 35 diverse and complementary brands • Supported by strong media investment • 4 th largest advertiser worldwide across all industries Production • 39 plants around the world • In 2021, 97% of L’Oréal plants were ISO 9001 (Quality Management) certified and 100% were ISO 22716 (Best cosmetics manufacturing practices) compliant Science Based Targets commitments By 2025, 100% of the Group’s plastic packaging will be refillable, reusable, recyclable or compostable L’Oréal is committed to reducing greenhouse gas emissions on its scopes 1, 2 and 3 by 25% in absolute value by 2030 A SUSTAINABLE CO MMITMENT 2021–2030 New commitments Transforming our business Empowering our ecosystem in our transformation By 2025, all our sites will have achieved carbon neutrality by improving energy efficiency and using 100% renewable energy. By 2030, 100% of the water used in our industrial processes will be recycled and reused in a loop. By 2030 , 100% of the biobased ingredients for formulas and packaging materials will be traceable and will come from sustainable sources, and none of them will be linked to deforestation. By 2030, 95% of our ingredients in formulas will be biobased,derived from abundant minerals or from circular processes. By 2030, 100% of the plastic used in our packaging will be either from recycled or biobased sources (we will reach 50% by 2025). By 2030, 3 million people will have benefited from our brands’ social engagement programmes. 58% 100% 2020 Results: 43% 21% 100% 2020 Results: 15% 15% 100% 2020 Results: 12% 94% 100% 2020 Results: 91% 60% 95% 985,089 3 million 14 L ’ ORÉAL I UNIVERSAL REGISTRATION DOCUMENT 2021 PRESENTATION OF THE GROUP INTEGRATED REPORT Business model: Economic and corporate excellence to  create lasting value for all