Club de Madrid – P80 Reunion

Proceedings Conference &

Global Solutions Summit

Dec 14th 2016

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The Global Leader of Beauty

#1 Beauty Company

in the World

25.3 Billion € Sales

in 2015

140 Countries

82,900 Employees

12% Market share

*

*Sourced from Beauty INC The 2015 Beauty Top 100, WWD

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A Unique Portfolio of Complementary Brands in the U.S.

Professional Products Consumer Products L’Oréal Luxe Active Cosmetics

The Body Shop

Multicultural Beauty

American Brand

L’Oreal’s Sustainability Strategy

for all channels and all categories.

Across All Distribution Channels

HAIR SALONS

MASS MARKET

DEPARTMENT STORES

PERFUMERIES

PHARMACIES DRUGSTORES

MEDISPAS

TRAVEL RETAIL

E-COMMERCE BRANDED RETAIL

Across All Beauty Categories

NAIL HAIR FRAGRANCE MAKEUP OTHER SKINCARE

Innovating Sustainably 100% of products will have an

environmental or social benefit

Producing Sustainably Reduce our environmental footprint by

60% whilst bringing beauty to one billion new customers

Developing Sustainably Employees L'Oréal employees will have

access to health care, social protection and

training, wherever they are in the world

Living Sustainably Empower every L’Oréal consumer to

make sustainable consumption choices

Sharing Beauty with All Commitments

Developing Sustainably Suppliers 100% of our strategic suppliers will be participating in our supplier sustainability program

Developing Sustainably Communities Enable more than 100,000 people from underprivileged communities to access work

CONSUMERS

RETAILERS SUPPLIERS

Product

Design

Sourcing of

Raw Materials

Manufac-

turing Distribution

L’Oreal’s Sustainability Strategy covers our full value chain

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A Systematic Approach to Renewable Energy on-site projects in nine facilities

L’Oréal USA Headquarters

Brand Headquarters

Distribution/Assembly Center

Manufacturing Plant

Research/Innovation Site

On Site Renewable Energy

Projects

CO2

Reduction

(tons/yr)

Waste

reduction

(g/FG)

*All results at YTD 2016, from a 2005 baseline

Water

reduction

(L/FG)

-80%

-82%

-41%

North Little Rock Plant*

North Little Rock - a best-in-class environmental plant Carbon Stewardship, Water Stewardship, Waste Reduction

Star of Efficiency

Manufacturing Award

LEED in Motion

Publication Feature

White House American Business

Act on Climate Pledge Signee

Joined Better Plants program

Joined CERES/

BICEP coalition

Joined EPA Green Power

Partnership

CO2 emissions

reduction

Waste

reduction

*All results at end 2015, from a 2005 baseline

Manufacturing Sustainably: Recognized Leadership in The USA

Water

reduction

-60%

-51.8%

-35%

-56%

-45%

-31%

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• 1.5 MW solar array

• Largest commercial solar

array in Kentucky

• 1.2 MW Solar array

• Third largest

commercial solar array

in Arkansas

• L’Oreal USA to achieve

100% renewable

electricity for US plants.

Florence Plant

KY

North Little Rock

Plant, AR

Purchase of locally-

sourced renewable

energy certificates

Achieves an 80% CO2 reduction in USA

(& an additional 8% reduction worldwide)

SOURCING OUR RAW MATERIALS SUSTAINABLY

A ZERO DEFORESTATION POLICY

• All Palm Oil & Palm Oil Derivatives are RSPO certified

• Aiming for 100% traceability to mills or plantations

• Developing new business models for smallholders

SUSTAINABLE SOURCING OF

RENEWABLE RAW MATERIALS

• 50% of raw materials from plant-based sources

• 1,400 ingredients from nearly 300 plant species

• Over 55% are sustainably sourced

Designing products to be more sustainable

THE USE OF SUSTAINABLY-

SOURCED INGREDIENTS:

• Argan

• Cocoa

• Shea

• Coconut Oil

LIGHTWEIGHTING OF

PACKAGING

• 25g for 12.5FL OZ S&C

bottles

30% RECYCLED

PLASTIC IN BOTTLES

• 425 tons of annual Virgin

plastic savings

DESIGN OPTIMIZED FOR

PALETTE SHIPPING

GARNIER WHOLE BLENDS

Redesigning products to be more sustainable

LIGHTWEIGHTING OF

PACKAGING

• 3g of 300ml bottle

• 10 tons of Annual Plastics

Savings

30% RECYCLED

PLASTIC IN BOTTLES

• 30% of PCR Plastics in

300ml PET bottle

• 23 Tons of Virgin Plastics

saved

MATRIX TOTAL RESULTS

SHAMPOO

Biolage R.A.W A new standard for natural-origin haircare

Up to 97% natural-origins &

98% biodegradable

No conventional preservatives

No sulfates, silicones or artificial dyes

100% recycled plastic bottle

Sustainable Innovation in Formulation

Thank you for your time