2021 UNIVERSAL REGISTRATION DOCUMENT

L'Oréal publishes data using a “cradle-to-grave” approach in order to estimate its carbon footprint globally over the entire product lifecycle (from raw material purchase to upstream and downstream transport, to product use and end of life).

L'Oréal also analyses its emissions using a “cradle to shelf” approach, which includes the steps that L'Oréal has the most influence on through, for example, eco-design initiatives or support provided to suppliers.

These emissions associated with the “cradle to shelf” perimeter include (i) scopes 1 and 2 emissions of sites operated by L’Oréal (plants, distribution centres, administrative sites and research centres), (ii) indirect upstream GHG emissions linked to L’Oréal purchases of raw materials and packaging materials used for the products manufactured by the Group.(These emissions include the extraction of materials, their transportation to suppliers followed by their processing prior to delivery.), (iii) indirect downstream GHG emissions generated by the transport of products sold from production or distribution centres to clients. These emissions include transportation flows of finished products from the production sites to the first customer delivery point

In 2021, the CO₂ emissions associated with the “cradle to shelf” perimeter represent 446 g of CO₂eq per product sold.

THE MAIN ITEMS OF CO₂ EMISSIONS OF SCOPE 3

(thousands of tonnes of CO₂ equivalent)

The Group’s commitments to a low-carbon economy have already led to several initiatives and achievements aimed at reducing the important categories under Scope 3:

• since 2009, L’Oréal has involved its suppliers in the process of reducing its carbon footprint by encouraging them to participate in the CDP Supply Chain programme (see section 4.3.1.2.2. “Involving strategic suppliers in the Group's ambitions” of this document);
• the commitment made by the Group to reduce the impact of downstream transport by -20% per unit sold per kilometre between 2011 and 2020 (see paragraph “Reduction of greenhouse gas emissions from the transport of finished products” in section 4.5.2.1. Of this document);
• L’Oréal, through its Science-Based Targets (SBT) commitment validated by the initiative at the end of 2017, has sought to cover all impacts associated with its value chain. The commitment to reduce greenhouse gas emissions by 25% in 2030 (baseline 2016) comprises all of Scopes 1, 2, and 3 (according to the GHG Protocol) (see section 4.3.1.4.2. “Science-Based Targets commitment” in this document); and
• finally, in June 2020, in the context of the launch of its L’Oréal for the Future programme consistent with its Science-Based Targets (SBT) commitment (see section 4.3.1.4.2. “Science-Based Targets commitment” in this document), the Group specified its 2030 roadmap by committing to a reduction, from 2016, of 25% per finished product in the emissions associated with its product use phase, a 50% reduction in the emissions associated with its strategic suppliers and a 50% reduction per finished product in the emissions associated with product transportation.

CO₂ emissions in 2021 (Scopes 1, 2, 3) over the entire Group (industrial sites, administrative sites and research centres)

☑ The Statutory Auditors have expressed reasonable assurance about this indicator.