4 POLICY INDICATORS AND PRINCIPAL RESULTS An ambitious EHS policy shared by all ● a worldwide organisation and a unique reference manual ● trainings in EHS policy and practices: 13,459 training actions worldwide ● a worldwide audit programme: 39 EHS audits ● a continuous improvement process: 34 ISO 14001 certifications, 23 ISO 50001 certifications, 34 ISO 45001 certifications (factory scope) ● a process of systematic integration of new sites Managing risks and controlling the impact of sites on their environment ● an environmental analysis conducted on a regular basis and whenever a significant change occurs ● consideration of biodiversity and soil use in the design or operation of sites ● monitoring of surface water: no accidental spill ● monitoring of industrial wastewater: quality index for wastewater after treatment (0.33g of COD/FP) ☑ ● monitoring of air emissions, excluding greenhouse  gases: SO 2 0.3t; VOC 156t; ozone-depleting substances 1.1t ☑ ● monitoring of noise pollution Fighting climate change on operated sites  ● reducing greenhouse gas emissions (Scopes 1 and 2, according to the GHG Protocol): -35% for industrial sites (vs 2019); -77% for administrative sites and research centres (vs. 2019) ● Scopes 1 and 2 CO 2 emitted by sites; 100 “carbon neutral” sites at the end of 2021 ☑ ● reducing energy consumption: total energy consumption of sites: 783,211 MWh  ☑  for industrial sites and 170,582 MWh for administrative sites and research centres ● increasing renewable energy use: part of renewable energy consumed by sites: 80% for industrial sites; 82% for administrative sites and research centres ● reducing Group emissions from product transport (Scope 3 as per the GHG Protocol): CO 2 emitted by transport: +12% (tCO 2 eq./unit sold vs 2016) ● preserving water resources: total water withdrawal of sites: -5% for industrial sites (in litres per finished product vs 2019); +36% for administrative sites and research centres (in litres per 100 hours worked vs 2019); 6  “Waterloop Factories” at the end of 2021 ☑ ● preserving biodiversity: 80 biodiversity inventories carried out ● reducing waste and preserving material resources: total generation of transportable waste of sites; -1% for industrial sites (in grams per finished product vs. 2019); +55% for administrative sites and  research centres (in kg per 100 hours worked vs. 2019); recovery index: 97% for industrial sites ☑ ; 92% for administrative sites and research centres; material recovery index: 59% for industrial sites ☑ ; 48% for administrative sites and research centres Involving suppliers in the Group’s transformation ● 82% of the direct and indirect strategic suppliers have completed a self-assessment of their sustainable development policy with the support of L’Oréal Group. ● encouraging strategic suppliers to reduce their   greenhouse gas emissions: 565 suppliers participated in the CDP supply chain , representing 87% of the expenditures made for direct suppliers ● engaging strategic suppliers: 1,236 social audits were conducted in 2021 ☑ ● 767 suppliers completed an assessment by Ecovadis of their social, environmental and ethical policies. ● 89,093 people gained access to work through the Solidarity Sourcing programme Sustainability: from product design to end consumer ● 96% of the Group’s products are eco-designed ● 60% of our ingredients in formulas are from biobased sources, derived from abundant minerals or from circular processes ● “Zero Deforestation” commitment: 100% of purchases of palm oil and of palm oil and palm kernel derivatives have been certified as sustainable according to the RSPO criteria (1) ● 39% of the Group’s plastic packaging is refillable, reusable, recyclable or compostable. ● 91% of the advertising displays at points of sale are eco-designed ● number of people who have benefitted from the commitment of our brands: 985,089 Meeting the most demanding standards ● GHG assessment, an annual exercise: Scopes 1, 2 and 3: 12,526 thousand tonnes of CO 2 equivalent ● Science -Based Targets commitment ● UN Global Compact Pledge: “Business Ambition for 1.5°C” ● adapting the model to the climate emergency: alignment of the Group with the TCFD principles ● alignment with the European Taxonomy, the priority target of which is the sectors with the largest environmental footprint, in which L’Oréal is not included ☑ The Statutory Auditors have expressed reasonable assurance about this indicator. (1) Roundtable on Sustainable Palm Oil. L ’ ORÉAL I UNIVERS AL REGISTRATION DOCUMENT 2021 181 L’ORÉAL’S SOCIAL, ENVIRONMENTAL AND SOCIETAL RESPONSIBILITY Policies, performance indicators and results