THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT

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THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
THE L’ORÉAL INDIA SUSTAINABILITY COMMITMENT
THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
L’Oréal is on a mission to
                                   make life more beautiful,
                                   and is committed to making
                                   beauty    sustainable. Our
                                   programme, Sharing Beauty With
                                   All integrates all the principles of
                                   sustainable development at the
                                   heart of the company, covering the
                                   entire value chain of innovation,
                                   production, distribution, consumers and
                                   communities.

                                   This commitment stands strong and is
                                   testified by the recognition we received in
                                   2016 and 2017. L’Oréal has been hon-
                                   oured to be one of the only two compa-
                                   nies in the world to have received a triple
                                   “A”, the highest score from the Carbon
                                   Disclosure Project (CDP is an independent
                                   international organisation that evaluates
                                   the environment performance of compa-
                                   nies) in three areas: climate protection,
Jean-Christophe Letellier          sustainable water management and the
Managing Director, L’Oréal India   fight against deforestation. This type of
                                   external recognition encourages us to go
                                   even further and proves that we can com-
                                   bine economic growth with ambitious
                                   sustainable development commitments.

                                   Globally, we have crossed a key milestone
                                   by achieving and even exceeding our
                                   target of -60% reduction in CO2 emissions
                                   four years ahead of schedule. India has
                                   contributed substantially to help achieve
                                   these results. And we continue to actively
                                   drive initiatives for India with key achieve-
                                   ments.

                                   Our priorities in India will continue to be
                                   the best practice leader in women
                                   empowerment, skill development and
                                   environmental sustainability while devel-
                                   oping ourselves further under the Sharing
                                   Beauty With All programme.

                              2
THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
LOréal India key figures
                 Environment (2016)

                 -62% Water Consumption per finished good from 2005 baseline
                 70% Green Electricity
                 0% Waste to landfill

                 Economic

                 250mn Units sold in India
                 Over 90% produced locally

                 Skill Development

                 210,000       Hairdressers and beauticians trained in 2016

                 4,000+      Beauticians trained under Beauty For A Better Life
                             programme since 2009

                 Gender Equality

                 Edge     First company in India to be certified in 2015 and the
                          only FMCG company in India to be recertified in 2016

Global
                 Triple ‘A’ rating worldwide

* Pune factory

                                           3
THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
LOréal India at a glance

                              L’Oréal, the no.1 cosmetics group worldwide, has
                              been present in India as a wholly owned subsidiary
                              of L’Oréal S.A. since 1994. L’Oréal India employs
                              1,600 employees directly and 5,000 employees
                              indirectly including beauty advisors.
L’Oréal India is no. 2 with
14 powerful international     Today, L’Oréal India is the no. 2 player in the beauty
brands                        industry with a strong portfolio of 14 powerful
                              international brands across all distribution
                              channels. Our products are available in mass
                              market channels (L’Oréal Paris, Garnier, Maybelline
                              New York, NYX Professional Makeup); in hair and
                              beauty salons (L’Oréal Professionnel, Matrix,
                              Kérastase, Cheryl’s Cosmeceuticals, Decleor); and
                              in luxury distribution (Kiehl’s, Yves Saint Laurent,
                              Giorgio Armani, Ralph Lauren and Diesel).

                              Our mission in India is to offer to the Indian
                              consumers the best cosmetics innovations in terms
         90%                  of quality, efficacy and safety. L’Oréal India
                              supports the progressive reforms undertaken by
                              the government of India and especially the ‘Make
Make In India
                              in India’ programme. Today, 90% of our portfolio is
90% produced locally
                              sourced and produced locally at our factories in
                              Pune and Baddi. Our Research and Innovation
                              centres in Mumbai and Bengaluru have been
                              created to meet the future of beauty in India.
THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
We also contribute actively to the ‘Skill India’
                             programme through our beauty training initiatives
                             for beauty advisors, beauticians and hair dressers. In
                             2016 alone, 210,000 beauty trainings were
                             conducted in our academies by our educators to
Skill India - Grooming for
                             upskill the salon industry. It has been a heartening
sustained growth
                             journey to see these people self-sustain and
                             achieve their dream of being a professional or
                             business owner in the booming beauty and
                             wellness industry.

                             L’Oréal India is also the proud recipient of the
                             worldwide Economic Dividends for Gender
                             Equality (EDGE) certification in 2015 and 2016
Gender equality always a     in recognition for its commitment to achieving and
top priority                 sustaining gender equality in the workplace.

                             While the Indian beauty market is worth 48,000 Cr
                             and is growing at a rapid pace, it is poised to
                             become one of the top 6 beauty markets globally in
                             the next 10 years. With an increase in awareness of
                             global trends, growing disposable incomes,
                             changes in consumption patterns and lifestyles,
                             and digitalisation of consumers along with
                             advanced economic reforms, the country promises
                             exciting times ahead.
THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
LOréal's presence in India

                             Baddi
                                     Dehradun
                  Ambala         Roorkee

                                    Rudrapur
                           Delhi
                               Gurugram                         Gangtok

                    Jaipur              Lucknow                                 Guwahati

                                                  Patna

  Ahmedabad                                       Ranchi

                      Indore                                              Kolkata

                        Nagpur                            Cuttack
          Vasai
           Taloja
 Mumbai           Chakan
            Pune                 Hyderabad

             Goa

                                       Chennai
                               Bengaluru           Head office (HO)

                                                   Regional Sales Office (RSO)

                                                   Research and Innovation Centres (R&I)

                                                   Factories

                                                   Beauty For A Better Life training centres

                                                   Distribution Centres

                                                   L’Oréal Academy

                                                   Technical Training Centres

                                                   Subcontractors
THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
Consumer Products Divsion

Professional Products Division

        Luxe Division
THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
2020
LOréal Group Commitments
Every year, L’Oréal publishes the progress made in its sustainable development
performances as compared to the targets set for 2020.

Innovating sustainably
            100% of L’Oréal products will have a positive environmental or social impact.

            Every time a product is created or renovated, the Group will improve its environmental
            or social profile with regard to at least one of the following four criteria:

                        The new formula reduces the environmental footprint,
                        particularly with regard to water use;

                        The new formula uses renewable raw materials that are
                        sustainably sourced or derived from green chemistry;

                        The new product has a positive social impact;

                        The new packaging has an improved environmental
                        profile.

Producing sustainably
            L’Oréal will have reduced CO2 emissions from plants and distribution
            centres by 60% in absolute terms, from a 2005 baseline.

            L’Oréal will have reduced CO2 emissions from the transportation of
            products by 20% (in grams of CO2 per sales unit per km), from a 2011
            baseline.

            L’Oréal will have reduced water consumption by 60% per finished
            product unit, from a 2005 baseline.

            L’Oréal will have reduced waste generation by 60% per finished product
            unit, from a 2005 baseline.

            L’Oréal will send zero waste to landfill.

                                                        8
THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
Living sustainably
        L’Oréal will use a product assessment tool to evaluate the environmental
        and social profile of all products. All brands will make this information
        available to allow consumers to make sustainable choices.

        All brands will assess their environmental and social impact and make
        commitments to improve their footprint.

        Every brand will report its progress and raise consumer awareness of its
        commitments.

        Consumers will be able to influence L’Oréal’s sustainability actions through
        a consumer advisory committee.

Developing sustainably
 … with communities
       By 2020, L’Oréal will enable more than 100,000 people from underprivileged
       communities to access work through the following programmes:

       Solidarity Sourcing;

       vocational training in the beauty sector;

       employment of disabled people.

 … with suppliers
       All strategic suppliers will be evaluated and selected based on their
       environmental and social performance.

       All strategic suppliers will have completed a self-assessment of their
       sustainability policy with L’Oréal’s support.

       All suppliers will have access to L’Oréal training tools to improve their
       sustainability policies.

       20% of strategic suppliers will be associated with the Solidarity Sourcing
       programme.

 … with employees
       L’Oréal will provide healthcare coverage for employees reflecting best practices
       in their country of residence.

       L’Oréal will provide financial protection for all employees in the event of
       non-work-related accidents.

       Every L’Oréal employee worldwide will have access to at least one training
       session per year.

                                                   9
THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT
INNOVATING
                    SUSTAINABLY
        By 2020, 100% of L’Oréal’s products will have an improved environmental or social profile.
        Reduction of the environmental footprint of formulas, respect for biodiversity via a
        sustainable and responsible sourcing policy for raw materials, eco-design of packaging and
        commitment to zero deforestation are all levers used by L’Oréal to drive sustainable
                                                 innovation.

                                Reducing the environmental footprint of formulas / 11
                                            Respecting biodiversity / 12
                                          Advanced Research Centre / 13
                                            Optimising packaging / 13
                                         Achieving zero deforestation / 13

INNOVATING SUSTAINABLY
                          PRODUCING SUSTAINABLY              DEVELOPING SUSTAINABLY     LIVING SUSTAINABLY
Reducing the environmental footprint of formulas
After defining 143 product categories and screening more than 40,000 formulas for two
years, an eco-design tool was crafted by the end of 2015. The aim was to guarantee all new
formulas developed adhere to the goal of improved environmental profile with identical
benefits for the consumer.

In 2016, this tool was deployed and is currently being used by all product formulators in
L’Oréal to assess the biodegradability and water footprint at the time of creation of all the
new formulas.

                   143 product                          40,000+
                     categories                           formulas

Plastic microbeads are replaced by particles of natural origin, thus, improving the
social/environmental profile of the products. In 2016, LOréal Group had reformulated
100% of its rinse-off exfoliating products: none of these contain plastic
microbeads. Included in the launch of Garnier Light Facewash and Garnier Acnofight
facewash (2017).

Aligned to the global mindset of
reducing the environmental footprint of
formulas, Garnier Men launched Matcha
Gel Facewash. This product has an
exceptional environmental profile with
90% biodegradability and water
profile 50% lower than the average
facial wash.

82%      of new or updated
products have an improved
environmental or social profile

                                              11
Respecting Biodiversity
        To achieve our 2020 goal, L’Oréal promotes the use of renewable raw materials that are
        sustainably sourced or derived from green chemistry. All raw materials used by L’Oréal are
        reassessed based on criteria such as respect for biodiversity and contribution to
        socio-economic development in the territories from which they originate.

        54%                                                 94%
        (in terms of volume) of the raw materials           of the renewable raw materials (in Group
        used by L’Oréal are renewable, namely               purchase volumes) are the subject of
        around 1,540 raw materials from nearly              improvement plans or actions with the
        350 species of plants from over 100                 suppliers concerned in order to ensure
        countries.                                          sustainable sourcing.

        17%                                                 Less than     13%
        of the raw materials used by L’Oréal (in            (in number) out of the 350 plant species
        terms of volume) are obtained                       which are the source of the renewable
        according to the principles of green                raw materials used by the Group involve
        chemistry (i.e., they come from                     significant biodiversity issues (protection
        renewable resources, are transformed                measures, impact of production on
        using an environmentally respectful                 natural environments) depending on
        process and have a favourable                       their geographic origin and their
        environmental profile).                             extraction or production method.

        In India, L’Oréal’s Guar Gum Project won the
        gold medal under the Sustainable and
        Responsible purchasing category at the 2016
        Purchasing Awards.

        Initiated in 2014, the project used gum
        extracted from Guar, a drought-resistant plant
        of the pea family grown as vegetable and
        fodder crop. Grown mainly in the states of
        Rajasthan and Haryana, Guar gum is
        increasingly being used as a thickener and
        emulsifier in hair care and hair colour products.
        L’Oréal collaborated with guar supplier, Solvay
        and the NGO, Technoserve, to improve the living
        conditions of 1,500 farmer-harvesters, while
        promoting environmentally-friendly agricultural
        practices.

INNOVATING SUSTAINABLY
                           PRODUCING SUSTAINABLY        DEVELOPING SUSTAINABLY          LIVING SUSTAINABLY
L’Oréal India’s shampoos namely Garnier Ultra blends, L’Oréal Paris Total Repair and
Extraordinary Clay Shampoo will use this sustainably sourced Guar gum which will further
improve the social and environmental profile of our products.

                                        Advanced Research Centre
                                        This centre in Bengaluru comprising of dynamic
                                        scientists focuses its research on natural ingredients
                                        and plant extracts for applications in both skin and
                                        hair cosmetics. It includes process based innovation
                                        in the development of natural extracts, innovative
                                        raw material sourcing, analysis of complex mixtures
                                        and knowledge of the mode of action of these
                                        ingredients on hair and/or skin.

Optimising packaging
      Reducing carton paper thickness helps save 120MT of paper

      100% of folding boxes used for packing our products are FSC certified

L’Oréal India realised that the largest impact maker in the value chain were the materials
used for product packaging. L’Oréal identified the need to relook product packaging
materials to reduce the environmental impact they make.

Achieving zero deforestation
Palm Oil: Including the fight against
deforestation in the suppliers selection process

In 2016, L’Oréal changed its evaluation and selection
matrix for its suppliers of palm oil and palm kernel oil
derivatives.

The Group created a Sustainable Palm Index, which
takes into account their commitment and their
achievements in terms of knowledge of their own
supply chain, sustainable procurement practices and
compliance with a zero deforestation policy. All
L’Oréal’s direct suppliers were evaluated using this new
matrix. This new Sustainable Palm Index will be made
public and made available to all companies and
business partners in the sector at the beginning of
2017, in order to support efforts made to ensure
sustainable palm oil sourcing.

                                               13
PRODUCING
                     SUSTAINABLY
        L’Oréal has set a target for 2020 of reducing the environmental footprint of its plants and
        distribution centres by 60% from a 2005 baseline. The reduction of greenhouse gas emissions
        in absolute terms, of water consumption and of waste generation per finished product unit,
        and the reduction of impacts related to transportation, have become fundamental criteria
                                      for L’Oréal’s industrial performance.

                                         Reducing CO2 emissions / 16
                                       Reducing water consumption / 17
                                         Zero waste recoverable / 18

                          PRODUCING SUSTAINABLY
INNOVATING SUSTAINABLY                                   DEVELOPING SUSTAINABLY     LIVING SUSTAINABLY
A testimony to LOréal India’s
unwavering commitment
Status in                                     Target in
2016                                          2020
        Carbon Emission                              Carbon Emission
-12 %   Reduction in carbon emission
        from 2005 to 2016                     -60%   We will reduce CO2 emissions at
                                                     our plants and distribution
                                                     centres by 60% in absolute terms

        Water Consumption                            Water Consumption
-62%    Water consumption per finished
        good from 2005 to 2016                -60%   Target 2020 per finished good

        Waste to Landfill
 0%     Waste sent to landfill from
        our production sites in India
                                                        70 %
                                                         Green
                                                     Electricity in
                                                          Pune Factory

                                         15
Reducing
        CO2 emissions
        Globally, L’Oréal has reduced its greenhouse gas emissions by 67% from 2005 to 2016, in
        absolute terms, and increased its production volume by 29% at the same time. Our ambitious
        commitment towards the climate is synced to our economic success.

                     45%
                     Reduced
                                                                          70%
                                                                         Electricity
                   Electricity                                            From
                  Consumption                                          Green Power
                                               Pune factory

        Green Power Project

        Closer home, L’Oréal’s Pune plant has
        succeeded in reducing electricity
        consumption by almost 45% in 2016
        (base year 2012) by implementing
        multiple projects. The plant purchased
        5.7 million KWH of energy, of which 70%
        was obtained from green power. By
        2017, L’Oréal India aims to further
        reduce its power consumption by
        another 15%. Across the APAC region,
        as of 2016, L’Oréal’s Pune plant is the
        only ISO 50001 certified plant on Energy
        Management System.

                           PRODUCING SUSTAINABLY
INNOVATING SUSTAINABLY                                DEVELOPING SUSTAINABLY        LIVING SUSTAINABLY
Reducing
water consumption
In time, L’Oréal has prioritised two key actions:
     Optimising consumption
     Developing recycling and reuse of water projects at the production sites

Globally, we have pledged to reduce water consumption by 60% per finished product unit
by 2020, from a 2005 baseline. And closer home, we initiated this with our Water Reclaim
Project.

               2005                                            2020
                                      60%
                                     Water saved

                                                    Water Reclaim Project

                                                    Implemented in 2012, L’Oréal’s Pune
                                                    factory decided to treat the two
                                                    streams of effluents, i.e, sanitary
                                                    wastewater and utility reject in a more
                                                    sustainable way. We explored the
                                                    Membrane Bioreactor technology, the
                                                    world’s foremost technology in the
                                                    treatment of sanitary wastewater where
                                                    the       wastewater       goes      through
                                                    Ultrafiltration. With the help of reverse
                                                    osmosis and the ultraviolet process, all
                                                    remaining contaminants that may
                                                    have been missed are removed. To
                                                    ensure standards were maintained in
                                                    the process, a programme OPTICIP was
                                                    implemented. This filtered water is used
                                                    in all our utilities at the factory.

                                               17
Reducing
        waste
        By 2020, L’Oréal will have reduced the waste generated by its plants and distribution centres
        by 60%, from a 2005 baseline and India will have contributed significantly to the global
        targets.

                2005                                                  2020
                                      60% less
                                     Waste generated

                                                         Joining Hands

                                                         Together, both L’Oréal India and the
                                                         Indian Beauty & Hygiene Association
                                                         (IBHA) joined hands with a local NGO,
                                                         Stree Mukti Sanghatana (SMS). They
                                                         work actively with about 200 women
                                                         ragpickers and the Municipal Corpora-
                                                         tion of Greater Mumbai to recycle 2,000
                                                         kgs of plastic out of which 60% waste has
                                                         been recycled so far.

                          PRODUCING SUSTAINABLY
INNOVATING SUSTAINABLY                                 DEVELOPING SUSTAINABLY         LIVING SUSTAINABLY
Vermiculture Project

At L’Oréal India, a vermiculture treatment plant was piloted in the production facility in
2009 as an experiment to understand the best use of waste. Under observation, over
the years, the project yielded results akin to green technology, leading to low emissions
and at the same time ensuring the vermi-compost produced has no adverse impact
on the soil’s micro flora and fauna. Vermicomposting samples confirm that this
treatment will have no long-term influence on carbon and nitrogen transformation in
soils as it is non-toxic to both, soil and aquatic microorganisms. L’Oréal further ensured
this treatment is extended to the sludge generated by the Effluent Treatment Plant
(ETP). Around 10% of the ETP liquid sludge gets treated via vermiculture in the Pune
plant.

These initiatives undertaken by LOréal serve as testimony in time to our
ambitious actions to reduce waste at source, while ensuring the recovery of
residual waste.

                                             19
DEVELOPING
                     SUSTAINABLY
        Sharing its growth with its internal and external stakeholders is a priority for L’Oréal. The Group
        promotes access to work for people from underprivileged communities by deploying various
        programmes, associates its suppliers with its sustainable development policy and
                    guarantees its employees the best social practices all over the world.

                                     Developing Sustainably with our Employees / 22
                                  Developing Sustainably with our Strategic Suppliers / 26
                                    Developing Sustainably with our Communities / 33

                                                                 DEVELOPING SUSTAINABLY
INNOVATING SUSTAINABLY      PRODUCING SUSTAINABLY                                            LIVING SUSTAINABLY
Sharing our growth with internal and external stakeholders is a priority

Our vision for 2020
                                       EMPLOYEES

   Best in class Healthcare

                                                                Financial protection against
                                                                unexpected life events

   Easy access to training
   and development

                                  STRATEGIC SUPPLIERS

   Evaluate social and environmental                                  Access to L’Oréal’s
   performance                                                        training tools

   Assess sustainability policy                                      20% part of Solidarity
                                                                     Sourcing programme

                                   INCLUSIVE HIRING

                                                                      Beauty
   Solidarity Sourcing                                                professionalisation

      Inclusive hiring                                                Mentoring and
                                                                      community education

                                       Inclusive distribution

                                                21
DEVELOPING SUSTAINABLY

        with our Employees
        L’Oréal is known for putting employees, our internal partners at the centre of commitments.
        They are our greatest assets and we believe in sharing the company’s growth and success
        with them.

        Our Share and Care programme is unique and has been implemented worldwide, including
        in India. It not only encompasses a common set of benefits and social practices but also
        includes a set of measures that are relevant locally. Our ambition is to provide all L’Oréal
        employees easy access to healthcare coverage, financial protection and training because
        we are determined to provide our employees with the best environment to work in.

                                                      DEVELOPING SUSTAINABLY
INNOVATING SUSTAINABLY    PRODUCING SUSTAINABLY                                      LIVING SUSTAINABLY
Best in class insurance for all our employees               Flexi work policy
      along with annual health checkup                    (Flexi hours, work from
                                                            home, sabbatical)
Life and personal accident cover is     3x times
                base salary

          26 weeks maternity leave
          12 weeks adoption leave
     Paternity leave increased to 2 weeks

Continuous medical insurance for parents self
           funded by employees

          2 days of work from home                           Scholarship for our
                                                              factory worker’s
                  in a month
                                                                  children

                                     100% accessible sites
                                       6 employees with
   Robust training                           disability
programms for career
   advancement

L’Oréal’s Share & Care programme, which is in its 3rd year of
implementation in India, provides employees a universal set of social
benefits. This has resulted in us not only achieving a global common
social framework, but sustaining our leadership position in social
innovation. We intend to continue implementing differentiating initiatives,
while focusing on improving the quality of life at work and putting
measures in place for new parents.

               Roshni Wadhwa
               HR Director, L’Oréal India

                                        23
LOréal India
        Women are important to our success

                                                         33%
                                                    of our leadership
                                                        is women
                            approx.   50%
                             women across
                            Head Office and
                               Research

            L’Oréal India -
           First company in
         India to receive the
          EDGE Certification                                                                     Equal
                                                                                               Opportunity
                                                                                                Employer

               Daycare
              centres /
              child care
             allowance
          for new mothers                                                                  Pre-natal travel
                                                                                            allowance of
                                                                                               30,000

                             Flexi-time                                       Internal
                            for working                                     complaints
                              mothers                                    committee for the
                                                     Strong             prevention of sexual
                                               Anti-Harassment              harassment
                                              & Anti-Bullying Policy

                                                             DEVELOPING SUSTAINABLY
INNOVATING SUSTAINABLY          PRODUCING SUSTAINABLY                                           LIVING SUSTAINABLY
Accolades won by us
L’Oréal’s commitment to creating a gender equal workplace has been recognised by
independent organisations like Edge certification and Equileap Ranking. These
organisations extensively study and evaluate companies across various spectrums to
identify optimal workplaces for both women and men.

     First company in                                      Ranked no. 1
    India to be certified                                   worldwide

   EDGE Certification                                 Equileap Ranking
   The world’s leading global                         Accesses       organisations
   certification    system       for                  accelerating        progress
   workplace gender equality,                         towards gender equality in
   uniquely applicable across                         the workplace, using the
   industries and geographical                        power     of    investments,
   regions. The certification has                     knowledge and donations.
   been      designed    to   help                    Equileap Ranking makes
   companies not only create an                       corporate progress towards
   optimal workplace for women                        gender equality transparent
   and men, but also benefit from                     and globally comparable
   it. Our organisation’s efforts                     across all sectors using an
   helped us win this certification                   extensive Gender Scorecard
   for the second time in a row.                      to rank companies.

                                         25
DEVELOPING SUSTAINABLY

        with our Strategic Suppliers
        By 2020, L’Oréal aims to involve 100% of its strategic suppliers to participate in its sustainable
        development programme. At the global level, a twofold approach was charted and we
        follow the same in India. We select our suppliers on the basis of their environmental and
        social performance. To help them grow, we also provide them with the necessary training
        tools.

                                           LOréal India

                                                 Raw materials
                                              purchased benefited
                                               2,175 farmers
               100%          of our                                          100% suppliers for
             suppliers have signed                                           indirect purchase have
            the Ethical Commitment                                           gone through the social
                      Letter                                                           audit

                                                               All strategic suppliers will be evaluated
                                                               and selected basis their social and
                                                               environmental performance

                                                               All strategic suppliers will have
                                                               completed a self-assessment of their
                                                               sustainability policy with our support

                                                               All suppliers will have access to L’Oréal
                                                               training    tools    to  improve     their
                                                               sustainability policies

                                                               20% of strategic suppliers will be
                                                               associated with our Solidarity Sourcing
                                                               programme

                                                         DEVELOPING SUSTAINABLY
INNOVATING SUSTAINABLY      PRODUCING SUSTAINABLY                                          LIVING SUSTAINABLY
DEVELOPING SUSTAINABLY

with our Communities
Promoting access to employment and social inclusion in line with L’Oréal’s global vision of
providing people in difficulty access to work, we have developed a vocational training
programme for India under the Beauty For A Better Life programme.

Examples of our other CSR programmes include education (Baddi school) and empowering
women (FYWIS), Employee engagement in CSR (L'Oreal Citizen Day).

  Skill Development                School for children of
     & Up Skilling                  migrant labourers

                Promoting education in science and vocational skill training in
                beauty for women, are the bedrocks of our CSR programme.
                Women’s participation in scientific fields and vocational
                education is especially low as compared to men. We aim to
                support women who wish to make a career, earn a livelihood
                and empower them via our For Young Women in Science
                scholarships and Beauty for a Better Life training programme.

                          Snehhal Chitneni
                          Chief - Communication, Sustainability & Public Affairs,
                          L’Oréal India

                                                  27
BEAUTY FOR A BETTER LIFE (BFBL)

        Beautiful Beginnings
        The L’Oréal Foundation is committed to social causes based on
        the two fields of expertise, science and beauty. The Beauty For A
        Better Life programme provides high quality training
        opportunities in different beauty professions to vulnerable
        groups in order to help them feel better and do better.

        In India, L’Oréal established the Beauty For A Better Life -
        Beautiful Beginnings programme in 2009. With an aim to create
        livelihood opportunities for young women from disadvantaged sections of the society, the
        programme partnered with LabourNet and Sambhav Foundation, an organisation
        specialising in vocational training to provide skill training in beauty and hair care to
        participants. The curriculum developed for the programme by in-house L’Oréal trainers is
        rigorous. It includes 3 months classroom training followed by mandatory 2 months long
        internship in a professional salon before graduation.

        Over time, the participants build upon their learnings in a professional set-up which gives
        them the opportunity and confidence to find employment in beauty salons or start their own
        enterprises.

        Thus far, 4,000+ participants have been trained, many of whom have been placed in the
        industry or have started their own home grown beauty salon or services.

                                                        DEVELOPING SUSTAINABLY
INNOVATING SUSTAINABLY     PRODUCING SUSTAINABLY                                     LIVING SUSTAINABLY
Our Achievements

                                          9 Beauty for
             4,000+                       a Better Life                Curriculum
            young women                 (BFBL) centres                    developed by
                trained                      pan India                  in-house trainers
              since 2009

Changing lives
  From being a housewife to being a beautician has been a long
  but fruitful journey. Thanks to the beauty therapy course provided
  by L’Oreal and Sambhav, today I am able to supplement my
  husband’s income. This has given me a sense of achievement
  and the confidence to open my exclusive parlour in Baddi soon
  with some financial assistance.

  Presently working as: Beautician;                                            Jashoda, Baddi
  Income: INR 8,000-10,000 per month

                        I am grateful   to L’Oreal and Sambhav for providing me quality
                        training. The   exposure I received has helped me maintain
                        international    standards in my work. Within no time I have
                        managed to      land a good position and salary at Blue Belle in
                        Kolkata.

                        Presently employed full-time;
Heera Kumari            Income: INR 12,500 per month
Sharma, Kolkata

  I belong to a family of daily wage earners, and was forced to give
  up my formal education due to lack of financial support. The
  beauty and wellness training provided by L’Oreal has helped me
  become a beauty consultant with two parlours namely, Priyanka
  Beauty Parlour and Looks Beauty Parlour in Hyderabad. This has
  improved my financial status to a great extent.

  Presently working as a beauty consultant;                                 Nani D, Hyderabad
  Income: INR 8,500 per month

                                               29
For Young Women in Science

        L’Oréal India strongly believes that science is the source of progress, and the contribution of
        women is vital to its future. That is why we have initiated the L’Oréal India For Young Women in
        Science (FYWIS) Scholarship Programme – a countrywide initiative which encourages and
        supports young women to pursue their careers in science.

        The programme was instituted in 2003 and has empowered over 300 young women from
        economically disadvantaged backgrounds to pursue their higher education in any scientific
        field from a recognised college or university in India. A scholarship of 250,000 is granted to
        each of the promising young women and covers their college fees.

                                                        DEVELOPING SUSTAINABLY
INNOVATING SUSTAINABLY     PRODUCING SUSTAINABLY                                         LIVING SUSTAINABLY
Views on FYWIS from jury members

                                     It’s been a pleasure to be a part of L’Oréal’s FYWIS programme
                                     over the years. And I have always felt this programme goes
                                     much beyond financial support because both, the Jury and
                                     L’Oréal officials take the time to provide career guidance to
                                     extremely bright girls handpicked from across the country. My
                                     association with the programme has been one of my most
                                     fulfilling experiences and I hope to always be a part of it.
Dr. Taslimarif Saiyed
CEO and Director
Centre for Cellular and Molecular Platforms
(A Dept. of Biotechnology, Govt. of India Initiative)
Bengaluru

              These are bright, young girls with dreams in their eyes aspiring
              to be scientists, engineers, doctors, agriculturists, veterinary
              physicians, etc. And the only place where they lack,
              unfortunately, is access to resources. Granting scholarships via
              FYWIS to help them fulfil their dreams is a great service to
              society being rendered by L’Oréal consistently for over a
              decade. The empathy shown by L’Oréal and its employees                      Dr Kavita Rege
              towards these young girls deserves great appreciation!                                   Principal
                                                                                     P.T.V.A.'s Sathaye College
                                                                                                       Mumbai

                  Testimonials from FYWIS scholars
           I got placed in Tata Consultancy Services and have published a
           research paper based on Photonic Crystal Fiber (PCF) in a
           National Conference. All of this has become possible because of
           your scholarship which has lead me towards a bright future.
           Thank you for everything.
                                                                      - Charu Sharma, FYWIS scholar

           I feel very honoured for being a recipient of the FYWIS
           scholarship from LOréal India. This scholarship was like a
           stepping stone for me, without which I could not have started
           climbing the ladder of success. Now I am a B.Tech holder in
           Aerospace Engineering and preparing for civil services exams. I
           am very confident about my success and this all is because of this
           scholarship.                          - Sunita Tanawade, FYWIS scholar

          There are no words that can convey the appreciation and
          gratitude that I feel for LOréal India. Your scholarship helped me
          to complete my Engineering when I was financially very weak;
          your support has played a key role in my success.
                                                                      - Varsha Sasane, FYWIS scholar

                                                         31
School for children of
        migrant-workers

        As part of L’Oréal India’s commitment to the
        communities around us, our Baddi factory in
        Himachal Pradesh launched a community
        outreach initiative with a school for the children of
        migrant workers near the factory. In partnership
        with Nirmala Niketan, an NGO, the programme
        provides free education to approximately
        200 students in the age group of 6 to 14
        years. The objective of this programme is to equip
        and enable the children enough to transfer them
        into mainstream education, eventually.

                                                          DEVELOPING SUSTAINABLY
INNOVATING SUSTAINABLY      PRODUCING SUSTAINABLY                                  LIVING SUSTAINABLY
Citizen Day
Launched in 2010 as a global initiative, Citizen Day is L’Oréal’s annual solidarity day. Over the
past years, Citizen Day has become a commitment whereby our employees from across the
world unite to engage in social outreach activities, to make a difference in the communities
we serve.

                                   LOréal India 2016

                               80%
                              Employee
                             participation

             10                                 704                           5,300+
      Partner / non-profit                   Beneficiaries                  Volunteer hours
        organisations

                                                  33
Reporting:
a recognised performance
Every year, L’Oréal communicates transparently, giving figures with regard to its strategy, the
challenges it faces and its results in the field of corporate social responsibility and the
environment in three reports: the Registration Document, L’Oréal’s progress report to the
United Nations Global Compact, and the progress report on the Sharing Beauty With All
sustainable development programme. L’Oréal’s CSR performance and its reporting via
robust, reliable indicators audited by the Statutory Auditors led to the Group being rewarded
by the most demanding organisations in this area and this was the case more than ever in
2016.

                  The CDP, an independent                            L’Oréal supports the Global
                  international     organisation                     Compact and publishes a
                  which       evaluates        the                   progress report to the United
                  environmental performance                          Nations Global Compact
                  of    companies,       awarded                     every year. In 2015, L’Oréal
                  L’Oréal     a       triple “A”,                    joined    the   UN     Global
                  representing the top score, in                     Compact LEAD programme,
                  each of the ratings made in                        which brings together the
                  three key areas: climate                           companies who are the most
                  protection, sustainable water                      committed to sustainability.
                  management and the fight
                  against deforestation. Only
                  two companies in the world
                  obtained this triple “A” score.

                  The Ethisphere Institute, one of                   In December 2016, the
                  the world leaders in the                           extra-financial rating agency
                  definition and promotion of                        VigeoEiris     once     again
                  ethical standards, ranked                          included L’Oréal in several
                  L’Oréal for the seventh time as                    Euronext-Vigeo indices. The
                  one of the “World’s Most                           Group is ranked No. 1 in its
                  Ethical Companies”.                                business sector.

                  For the fifth year running, the                    In October 2016, L’Oréal was
                  extra-financial rating agency                      re-included in the two Ethibel
                  Oekom Research AG gave                             Sustainability Indices (ESIs):
                  L’Oréal Prime status, which is                     Excellence      Europe      and
                  awarded to the                                     Excellence Global.
                  top-performing companies.

                                                     34
INNOVATING
                          SUSTAINABLY
                          DESIGN & SOURCING

DEVELOPING                                                        PRODUCING
SUSTAINABLY                                                       SUSTAINABLY
PEOPLE & PARTNERS   THE L'ORÉAL INDIA SUSTAINABILITY COMMITMENT   LESS & MORE

                          LIVING
                          SUSTAINABLY
                          INFORM & EMPOWER

                                       35
A – Wing, 8th Floor, Marathon Futurex, N.M Joshi Marg,
Lower Parel, Mumbai, India - 400 013. Ph: +91 22 67003000

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