2021 UNIVERSAL REGISTRATION DOCUMENT

L’Oréal also shares with its subcontractors the objective of improving Environmental, Health and Safety performances. Audits are carried out in addition to social audits by independent third party specialists on manufacturing or logistics subcontracting sites, in accordance with the criteria defined by L’Oréal and similar to those used for the Group’s entities.

In 2021, in the context of the Covid-19 health crisis:

• 2 risk audits were conducted on-site;
• 2 combined risks and EHS culture audits were conducted on site;
• 2 combined Quality, Environment, Health, Safety and Performance audits were conducted on-site;
• More than 270 Covid audits were carried out, most of them remotely; and
• 29 additional EHS audits of subcontracting sites were carried out in factories and 4 in distribution centres. All of these audits were conducted on-site.

In addition to these audit programmes, prevention inspections are regularly conducted by experts from the Group’s insurance companies as part of external Fire and Environment insurance policies. In 2021, given the Covid-19 health crisis, site inspections were reduced: 9 sites (6 factories, 2 distribution centres and 1 administrative site) were inspected for environmental risks in four countries (France, Germany, Spain and China). 5 remote reviews were also completed to ensure progress in the effective implementation of recommendations made during previous inspections. With regard to fire prevention inspections, only 4 sites were inspected in 2021 (3 factories and 1 administrative site) in France. 18 sites around the world were reviewed remotely.

100% of all preventive audits and inspections described above involved a risk component, which is always carried out by external independent auditors specialised in the area being audited.

A continuous improvement process

The implementation of the standards, the spread of the L’Oréal EHS culture and the governance system in place contributes to the continuous improvement of the Group’s EHS performance. Major developments occurring within the framework of the Group’s Operations are also included with this same goal, whether it involves the construction of a new factory, the purchase of new equipment or the definition of new processes, each industrial development is an opportunity to reduce the environmental footprint and safety risks.

Lastly, some major programmes within EHS, or more generally within the Group, are vectors for progress in the areas of safety or the environment for all entities, and are the subject of detailed improvement plans, the effectiveness of which is evaluated during the audits.

LIFE programme (Life-threatening Incidents or Fatality Events)

For all L’Oréal sites, this programme covers activities posing risks that, if not controlled, could result in serious injury or illness. Over time, the Group is prolonging the ambition of moving towards “zero accidents” by ensuring the sustainability of actions and defining the requirements in terms of preparing for emergencies following an incident. It is backed up by a three-year communication campaign relayed by managers to cover the 10 identified families of LIFE risks.

The L’Oréal for the Future programme

Building on the Sharing Beauty With All programme, L’Oréal for the Future, the Group’s new sustainability programme announced in June 2020, has set a second generation of particularly ambitious and concrete targets for 2030, covering all the impacts of the Group’s value chain (supply chains, consumer product use, etc.) and its operated sites (production and distribution sites, administrative sites, and research centres).

The main environmental objectives of the programme concerning operated sites are as follows:

• Climate: reaching carbon neutrality for all operated sites by 2025, by improving energy efficiency and using 100% renewable energy. L’Oréal is also committed to halving the transport footprint of its products by 2030.
• Water: in 2030, 100% of the water used in our industrial processes will be recycled and reused in a loop.
• Biodiversity: by 2030, all of our operated buildings and all industrial sites will have a positive impact on biodiversity compared to 2019.
• Natural resources: by 2030, 100% of the waste generated in our operated sites will be recycled or reused. L’Oréal is also committed to no longer send waste to land fill.

The Group is committed to an ISO certification process to permanently anchoring EHS performance on its industrial sites:

• Since 2003, L’Oréal has committed to ISO 14001 certification“Environmental Management” in all of its factories;
• In 2015, the Group launched an ISO 50001 “Energy Management” certification programme with the goal of certifying all its factories in accordance with a clearly defined roadmap. Some administrative sites and research centres have also initiated this process; and
• Since 2007, L’Oréal has committed to OHSAS 18001 certification, and then ISO 45001 “Occupational Health and Safety Management” certification to all its plants.

An internal Group communication system exists so that each site is informed when accidents, near misses, or significant incidents occur. Specific communication is circulated worldwide so that the facts and lessons to be learnt, the existing rules and the new requirements to be applied are taken into account. Finally, a historical record is accessible by each site covering the nature and root causes of EHS incidents/accidents that have occurred in all sites.