Leading a Business Model Transformation by Engaging the Entire Value Chain

Alexandra Palt@AlexandraPaltChief Sustainability Officer

L’Oreal

1979RECONSTRUCTED SKIN

1995 ENVIRONMENTALRESEARCH LABORATORY

2002

SOCIALAUDITS

2007

2013

SUSTAINABLE DEVELOPMENT AS A STRATEGIC PILLAR

L’OREAL’s IMPACT

RAWMATERIALPACKAGINGSUPPLIERS

28 %

PRODUCTION

5 %

DISTRIBUTION

7 %

CONSUMPTION

58 %

WASTE

2 %

CONTINUOUSLY IMPROVING THE

ENVIRONMENTAL PROFILE OF OUR

PRODUCTS, IN ORDER TO OFFER MORE AND

MORE SUSTAINABLE PRODUCTS TO

CONSUMERS

1 /

MAKING AVAILABLE ALL RELEVANT

ENVIRONMENTAL AND SOCIAL INFORMATION ON

PRODUCTS SO THAT CONSUMERS CAN MAKE

MORE SUSTAINABLE LIFESTYLE CHOICES

2/

MAKING SUSTAINABILITY DESIRABLE FOR

CONSUMERS THROUGH OUR BRANDS AND

THEIR COMMITMENTS

3/

INNOVATINGSUSTAINABLY

BY2020,WEWILLINNOVATESOTHAT100%OFPRODUCTSHAVEANIMPOVED

ENVIRONMENTALORSOCIALPROFILE.

PERFORMANCE

PROFITABILITY

CONTRIBUTIONTO SUSTAINABLE

DEVELOPMENT

2015 2015

74%ALREADY

ACHIEVED

80%89%

RENEWABLE INGREDIENTS

BIODEGRADABILITY

SUSTAINABLE

SOURCING

QUINOA HUSK EXTRACT

EXCITINGSOURCE OF INNOVATION

PRO-XYLANE

GREEN CHEMISTRY

PRODUCINGSUSTAINABLY

BY2020,WEWILLREDUCEOURENVIRONMENTALFOOTPRINTBY60%

WHILSTBRINGINGBEAUTYTOONEBILLIONNEWCUSTOMERS.

2020 TARGETS

-60% CO2 EMISSIONS

CO2EMISSIONS

-56%

:::: ::::::......::::..........

FIRST 100%GREEN ELECTRICITY CHINESE FACTORY

9 PLANTSWITH CARBON NEUTRALITY

LIVINGSUSTAINABLY

BY2020,WEWILLEMPOWEREVERYL’ORÉALCONSUMERTOMAKE

SUSTAINABLECONSUMPTIONCHOICESWHILEENHANCINGTHEBEAUTYOFTHE

PLANET.

LIVINGSUSTAINABLY

• WEWILLUSEAPRODUCTASSESSMENTTOOLTOEVALUATETHEENVIRONMENTALAND

SOCIALPROFILEOF100%OFNEWPRODUCTSANDALLBRANDSWILLMAKETHIS

INFORMATIONAVAILABLETOCONSUMERS,

• EVERYBRANDWILLREPORTONITSPROGRESSANDRAISEAWARENESSAMONG

CONSUMERSABOUTSUSTAINABLELIFESTYLECHOICES.

LIVING SUSTAINABLYOUR RESULTS

66.6% of brands have evaluated their environmental

or social impact.

34.4% of brands conducted a consumer awareness initiative

CONSUMERSAREWILLINGTOCHANGETHEIRHABITS FORSUSTAINABILITY…

CONSUMERS & SUSTAINABILITY ?FROM A MENTAL CONCEPT TO A DAILY REALITY

…BUT THEREISSTILLAGAPBETWEENATTITUDESANDBEHAVIORS

Ifgiventheopportunity92%*wouldbuy

aproductwithsocialorenvironmentalbenefit

SourceCONECOMMUNICATION– GlobalCSRstudy– 2013*USA,Canada,Brazil,UK,Germany,France,Russia,China,India,Japan

**Source :National©

Only67%* declarehavingboughtaproduct

withasustainablebenefitinthelast10months

Only 45%**declare trying vey hardtoreduce

their own impactontheenvironment

OUR CHALLENGES

• FROMINCREMENTALINNOVATIONTODISRUPTIVEINNOVATION,

• COMMUNICATION TOCONSUMERS

• MAKESUSTAINABLELIFESTYLEEASY

ARE WE CHANGING FAST ENOUGH ?

ALL