Global Commitment 2021 Signatory Report

L’Oréal has devoted itself to Beauty for over 100 years with its unique international portfolio of 39 diverse and complementary brands. As the world’s leading beauty company, L’Oréal is present across all continents, offering products mainly in plastic packaging but also glass, cardboard & metal.

Africa: Eastern Africa, Middle Africa, Northern Africa, Southern Africa, Western Africa

America: Caribbean, Central America, Northern America, South America

Asia: Eastern Asia, Central Asia, South-eastern Asia, Southern Asia, Western Asia

Europe: Eastern Europe, Northern Europe, Southern Europe, Western Europe

Oceania: Australia and New Zealand, Melanesia, Micronesia and Polynesia

L'OREAL Global Commitment to reduce by 33% its use of virgin plastic based on 2019 represents 39 814 tonnes of plastics.

The 2019 base line of 120 649 tonnes corresponds to the weight of our plastic packaging (pack containing more than 50% plastic) but it is important to note that L'OREAL total plastic weight (all plastic) in 2019 was 137 280 tonnes.

L’OREAL is actively engaged in:

- Lightweighting its packaging whenever possible (Plastic weight reduction in 2020= 29t PE, 11t PET, 53t PP)

- Developing the use of refills (Armani Crema Nera Face cream refillable jar, Shu Uemura eye shadow refillable compact)

- Launching pouches (ex: Pouch Kiehl’s, la Roche Posay)

- Reducing sorting disruptors (ex: Reno Elseve w/o metallized labels)

- Developing innovative products to limit the use of plastic (ex: solid shampoo)

- Using alternative material to plastic (ex: tube made with carton)

L’OREAL has an ambitious strategy, L4TF, to minimize its footprint on the environment with specific goals:

- All packaging to be eco conceived by 2030,

- to be 100% recyclable, reusable & compostable by 2025,

- to be 50% fossil free plastic by 2025 & 100% fossil free plastic by 2030 (use of recycled or bio sourced plastic)

- to reduce by 20% the quantity of packaging in intensity (g/g) vs 2019

More specifically, L’OREAL plans to:

- Pursue the weight reduction of its packaging’s - lighter caps on tubes, lighter bottles.

- Develop packaging with alternative materials (glass, paper)

- Develop reuse models, large size pouches to refill small size bottles.

- Launch mono-material sachets

- Develop recyclable pumps w/o metal parts, recyclable tubes

- Reduce metallised labels, caps to improve packaging sorting rates

- Reduce the use of SAN & ABS

- Eliminate unnecessary components, carbon black, PETG, & PS

NB: there is no EPS,PVC,PVDC or oxodegradable elements in L’OREAL packs

Recent or in-progress pilots of reuse models for new products or packaging, Reuse models in place for consumer facing products or packaging

Product line(s) with reuse model(s): 4 (29% of total) (see endonotes for more information)

Market(s) where reuse models are available today: Eastern Africa, Middle Africa, Northern Africa, Southern Africa, Western Africa, Caribbean, Central America, Northern America, South America, Eastern Asia, Central Asia, South-eastern Asia, Southern Asia, Western Asia, Eastern Europe, Northern Europe, Southern Europe, Western Europe, Australia and New Zealand, Melanesia, Micronesia and Polynesia (100% of total)

L’OREAL 4 divisions are working on reuse model solutions for plastic, glass & metal with refill at home & refill on the go initiatives. We already launched in various markets worldwide Refills for jars, bottles, compacts & Pouches to refill bottles. We plan to expand the refill concept across more lines of products, but we also need to be aware that all formats do not match re-usable concept for user’s convenience. Projects are in the pipe to refill deodorant, perfume, lipstick & mascara. Furthermore, several of our brands implemented return from home models with Terracycle (example: Lancôme Skincare, make up & perfume packaging in store collect in China, Vichy empty products collect in pharmacies in Austria) and these initiatives will expand in the coming years.

Piloting reuse models for new products or packaging: 57 pilots

Introducing or expanding reuse models for consumer facing products/packaging

Implementing reuse models across a minimum number of product lines: 8 product lines (57% of total)

See endnotes for more information on the above target(s)

Many L’OREAL product lines will offer reusable models by 2025 (Shower gel, Shampoo, Conditioner, Body lotion, Face cream & serum, Make-up Eye shadow & blush, Deodorant, Mascara, Lipstick). Projects are underway with our four Divisions to offer to consumers new possibilities to refill their products at home and on the go. We recently launched L’Oréal Paris Elvive conditioner pouches in the UK and Maybelline Fit me pouch in the US. Additional reuse projects are happening with glass material packaging. Many fragrances can be refilled in store thanks to a fountain (Mugler range, Lancôme Idôle, Viktor & Rolf Flowerbomb) or with the purchase of individual refills (Armani My way, Acqua di Gio). These examples are not in the scope of this report.

L’OREAL will increase the recyclability of its packaging by eliminating the presence of recycling disruptors. We actively interact with Recyclass & APR to best understand & apply their recommendations in our packaging conceptions. Results are starting to show in our KPI with a significative jump from 32 to 40.7% of recyclable packaging in our catalogue. A task force has been set up to develop recyclable flexibles worldwide. We also develop a close partnership with our suppliers to build an ambitious and fast pace common road map. In parallel, we created a specific BI to extract sustainable data to identify our challenges, prioritize our actions & monitor our progresses & performances.

When recycling streams do not exist, L’Oréal promotes specific collection & recycling actions. Many brands (Lancôme, Maybelline, Armani, Nyx, YSL…) have initiated actions with Terracycle worldwide (France, US, Canada, Japan, Australia…). L’Oréal also encourages consumers to sort their waste by collaborating closely with eco organisms like Citeo in France and by communicating proper sorting instructions on its packaging’s & associated brand websites.

Yes

49.8 % (see endnotes for more information on the packaging considered as designed for recycling)

Please note: This optional metric is not the same as the percentage of recyclable plastic packaging contributing towards the 100% target. More information on the Global Commitment recyclability definition can be found in the 2021 Progress Report.

100% reusable, recyclable or compostable

L’OREAL is monitoring its % of recyclable plastic PE/PET/PP and investigating ways to replace SAN, ABS, PETG… by recyclable plastic whenever technically possible Recycling packaging disruptors are being analysed within each brand and action plans set up to remove or minimize them (reduction of metalized labels, elimination of foil barrier…). Focus was primarily on formats with recycling streams in practise & at scale (like bottle in PE& PP). The next step is to address all formats (sachet, tube, PET aerosol, pumps, small packs like mascara..) and task forces have been set up to tackle these topics. Regarding compostability, we are in the mist of evaluating new PLA/PHA materials to assess their industrial & at home composting performances.

To contribute to waste management L’OREAL’s ambition is to promote efficient recycling for a virgin-like recycling. The group is investing in different companies as Carbios (PET enzymatic recycling) and Purecycle (PP chemical recycling). Last month (June 2021), Carbios communicated having successfully produced PET bottles from enzymatic recycled PET. Biotherm will partner with Carbios to launch such bottles at industrial scale as of 2025.

L’OREAL is actively engaged in developing PCR sourcing for plastic and glass & metal. PCR represented 6.9% of L’OREAL total plastic tonnage in 2019 & 15.1% in 2020 (split in 54.8% rPET, 7.2% rPE & 4.1% rPP). It also represents 7.1% of L'OREAL plastic packaging in 2019 & 15.8% in 2020. These percentages are based on the following figures: L’OREAL total plastic weight = 137280 tonnes in 2019 & 154584 tonnes in 2020 All brands in L'OREAL four Division are actively engaged in increased the use of PCR in their portfolio. Examples of launches in 2020:

- Bottles with 100% PCR PET: Kiehl’s calendula toner; Vichy Eau micellaire; Sanoflore Aqua magnifica; Biotherm Biosource; Elseve low shampoo

- Bottles with 100% PCR HDPE: L’Oreal Paris Elseve in China; Garnier Whole blends

- Bottle with 95% PCR HDPE: Matrix bleach finder

- Tubes with PCR PE: Mizani Miracle cream – 53% PCR; Biolage – 30% PCR; Cerave Foot cream – 45% PCR

- Gloss with 100% PCR PET: Maybelline Sensational

L’OREAL’s goal is to use 50% fossil free plastic in 2025, 100% in 2030 and all brands are actively engaged to reach these targets. Multiple projects are in place with our four Divisions: to include & increase the % of PCR in PET & PE bottles, PET jar, PP bottles & PE tubes. In parallel, L’OREAL is investing in Carbios to help to increase PET recycled content supply worldwide by enzymatic recycling. L’OREAL has announced on June 24th, 2021 the realization with the brand Biotherm of the first cosmetic PET bottle made with the enzymatic technology from Carbios. The group has also an agreement with Purecycle to produce chemical recycled PP and an agreement was signed with Lanzatech & Total with whom we are developing a cosmetic PE bottle made of recycled industrial carbon emissions. By the end of 2030, 100% de L’OREAL plastic packaging will be fossil free (either post-consumer plastic or biosourced).

For reference, please find herewith a detail of our total plastic weight & total plastic packaging weight (> 50%) for 2019 & 2020: L’OREAL total plastic weight = 137280 tonnes in 2019 & 154584 tonnes in 2020 L’OREAL total plastic packaging weight (pack with plastic weight > 50%) = 129870 tonnes in 2019 & 137609 tonnes in 2020 These data represent the full scope of our portfolio with the exception of recent acquisitions which get reported as soon as the data become available.

External CAC (ie Commissaires aux Comptes = External Auditors) audit process of reporting, at end of each reported year for the L’Oréal Progress Report Deloitte is used as an independent 3rd party & Pricewaterhousecoopers on the audit part.

The total qqty of plastic packaging has progressed from 129870 to 137609 tonnes (+ 7.7tonnes, 6% increase). This is mainly due to the increase of production of Shampoo bottles Elseve & Fructis & Colo kit (2/3, 1/3).

We used PRE (Plastics Recycler Europe) /Recyclass guidelines to assess the design for recycling of our packaging’s. Formats entitled to Design for recycling are mainly sachets PE/PP <A4, tubes PE & Jars PP.

For product line(s) with available reuse model(s): The plastic product lines are product formats: bottle, dye kit, jar, tube, mascara/gloss, compact, lipstick, sachet, cosmetic on support, dispensers, pencil, aerosol, assembly pack, other. In 2020 we launched - refillable jars with a cupule (2) – Lancome Absolue Cream, Armani Crema Nera - refillable make up compacts (4) – Shue Uemura Face color compact, Maybelline Fit me Dexy Smooth cushion, L’Oréal Paris Le cushion, Shu Uemura pressed eye shadow - bottles with refill (2) – YSL Pure Shots, L’Oréal Paris Pro Rétinol Serum, - Pouches (9) – Cadum gel corps& cheveux, Cadum creme douche surgras, Cadum gel douche dermo-respect, Kiehl’s creme de corps, Kiehl’s Amino acide conditionner, La Roche Posay huile lavante, La Roche Posay Lipikar, La Roche Posay Effaclar, Garnier Ultra doux shampoo

For product line(s) with reuse model(s) to be introduced or expanded: Bottle, mascara/gloss, compact, lipstick, jar, sachet, Dispenser, Pencil