L'Oreal SA

#### Governance

Sustainability is integrated into L'Oréal's overall business strategy and governance at the highest level and throughout the organization. Every year, the Board of Directors determines L'Oréal's strategic directions, which integrate the challenges of climate change and, more generally, the issues of sustainable development, as well as the Group's sense of purpose to \"Create the Beauty that moves the world\". The Board receives information and training on sustainability topics and considers environmental impacts in its decision-making processes.

The Board can rely on four Board Committees that are responsible for investigating the issues within their area of expertise. For climate change specifically, the Strategy and Sustainability Committee (SSC) of the Board is in charge. The Chairman and President of L'Oréal is the chairperson of the SCC and the Chief Sustainability Officer reports on the Group's activities and gives a status update on the L'Oréal for the Future program at every meeting of the SSC. The committee ensures that L'Oréal's sustainability and climate commitments are duly taken into account, considering the challenges specific to the company's business activities, market, development, and objectives.

In order to implement the sustainability strategy of the Group, the Chief Executive Officer can rely on the commitment of every member of the Executive Committee within the respective scope of the member. More specifically, the Chief Sustainability Officer ensures strategic consistency between the measures the Group takes to integrate sustainable development across its entire value chain and its charitable contributions. She is responsible for the formulation and implementation of the sustainable development strategy, assesses and manages climate-related risks and opportunities through the action plans of the Group's sustainability programs.

Under her direction, different internal committees related to sustainable development, composed of the experts responsible for the deployment of the sustainability programs, define the roadmaps for each of the entities represented (Operations, Research, Divisions and Zones). The experts responsible for the rollout of the sustainability agenda participate in these Committees. Each of the internal Committees defines annual objectives to reach the Group's targets and directs their deployment throughout the L'Oréal value chain. Twice a year, the Chief Sustainability Officer brings together some members of the Executive Committee in the L'Oréal for the Future Executive Committee to make strategic decisions about the program, which includes the Group's climate goals.

Moreover, sustainable development must be driven by all teams. All L'Oréal employees are encouraged to receive training on the challenges of sustainable development. They have access to a comprehensive range of online training courses available in 15 languages as part of the L'Oréal for the Future program.

Remuneration structures have been adopted to ensure a strong correlation with L'Oréal's strategy for which economic and social performance go hand-in-hand. Non-financial objectives in line with the Group's goals for sustainability are included in the variable remuneration of the CEO, top management, including international brand managers and country managers. The same applies to long-term remuneration.

The Group's approach to governance, including details on remuneration structures linked to sustainability, and climate risk management are disclosed annually in its URD.

The Group's actions are part of an ongoing dialog with its stakeholders on its commitments, particularly with regard to Climate Change. This dialog also includes shareholders and investors, who periodically receive informations on the Group's Climate strategy in the URD and at the Annual General Meeting.

#### Policy engagement and industry collaboration

At local, national and international level, L'Oréal maintains close relationships with public authorities, via professional associations and through direct engagement. The Group's public advocacy and policy engagement is conducted in accordance with its Responsible Lobbying Policy. The Group facilitates discussions with institutional representatives on the role that companies should play with regards to major sustainability issues, including on climate policy and decarbonization. In line with its own corporate commitments, L'Oréal supports public policy that aligns to a 1.5°C path and enables transition to Net-Zero. In 2019, L'Oréal was one of the first companies to sign the Business Ambition for 1.5°C pledge of the UN Global Compact, thereby committing to reach \"Net-Zero emissions\" by 2050 over its entire value chain, in accordance with the 1.5°C path of the IPCC. Moreover, L'Oréal continues to engage positively with its industry and policymakers, for example through participation in major international institutional events such as Climate Week NYC and the World Economic Forum Davos Summit, and in industry consortiums, such as the EcoBeautyScore.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]L'Oréal has put in place a governance and concrete measures to ensure that its global & local executives act consistently to ensure that our engagement activities do NOT conflict with our sustainability strategy and in fact support science-based environmental legislation: 1/ L'Oréal has a sustainability programme with indicators that can be closely & transparently monitored by external stakeholders. Our public affairs engagement activities operate in the same spirit of transparency and accountability. In our host country France for example, we disclose all of our lobby activities under the HATVP. 2/ Under Our Responsible Lobbying Policy, L'Oréal "Employees authorised to lobby must inform their management should they encounter a real or potential conflict of interests situation that could influence the relationship between L'ORÉAL and public decision-makers†. This includes situations where our lobbying efforts would contradict our corporate responsibility principles. 3/ Under the same policy, in the event of conduct contrary to our sustainability policy, employees may report this to a member of the Group Executive Committee, Zone or Country Management Committee in their reporting line, or to their Ethics Correspondent. 4/ All members of L'Oréal's Ex-Com and all its country GMs have both sustainability & public affairs responsibilities and therefore must meet with our Chief Corporate Responsibility Officer as part of their induction. 5/ All senior executives are evaluated (as part of their annual performance criteria) on how they've advanced the company's sustainability strategy, including by way of their PA responsibilities. 6/ Our Chief CR Officer also meets with the Global PA team at HQ on a regular basis to review all PA activities as relates to sustainability, including review of environmental legislative initiatives. 7/ All PA Officers in markets are expected to collaborate with their local Sustainability counterparts on how to advance our sustainability strategy. 8/ L'Oréal is not a member of any trade association opposed to climate legislation. In the event, one of our trade associations should take a position which is not aligned with our sustainability strategy, we have been known to distance ourselves from their stance or to inform them that we disagree.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]L'Oréal has put in place a governance and concrete measures to ensure that its global & local executives act consistently to ensure that our engagement activities do NOT conflict with our sustainability strategy and in fact support science-based environmental legislation: