L..'.OREAL OPERATIONS

SHARING BEAUTY WITH ALL

Dr. Jay R. Harf

Vice President

Environment Health Safety and Sustainability

PEOPLE & PAlnNERS

DEVELOPI G SUSTAINABLY

DESIGN & SOURCING

INNOVATINC SUSTAINABLY

INFORM & EMPOWER

LIVING SUSTAINABLY

LESS&MORE

PRODUCING SUSTAINABLY

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How We Got Here Sharing Beauty With All: 2020 Strategy

Producing Sustainably Reduce our environmental footprint (CO2, Water, Waste) by 60% for our Operations facilities

SHARING BEAUTY WITH ALL

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SHAHJ?\TGALTTY BE WITH ALL

~OREAL OPERATIONS

0

-81

-48

-38

CO2

Water

Waste

2005

Baseline

+42% Units

Since 2005

Water Recycling Projects • Florence (Live)

• Piscataway (In Process)

• Cosbel (Live)

Carbon Neutrality USA

-100 -50 • April Earth Day

2019 2018

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~OREAL OPERATIONS

PRODUCING SUSTAINABILITY

Path to Carbon Neutrality – Electricity Portfolio

MONTREAL, CANADA

85% reduction in

carbon emissions

100% renewable

electricity

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17 renewable

energy projects

54 miles of

solar panels

WE CONSIDERED EACH OF THE CONCERNS ABOUT THE PROJECT

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USA OPERATIONS DIRECTED BIOGAS PROJECT 2018 – SUSTAINABLE INNOVATION

Reduction of 20% of global C02 Footprint for L’Oreal

1 2 3

Anaerobic Digester - Carbon Offsetting - Landfill BioGas -

• Capital / Time Investment Intensive • Not recommended by Group • Single long term solution

• Feed Stock Concerns • Reputation for “Greenwashing” • Multiple Agency support

• Cost of Stock / Supply of Stock • Continuing to burn brown gas • Community Impact Locally (Jobs)

• Maintenance / Headcount • Need Project • Media attention

• Electricity Consumption Concerns • Biogas Purchaser / No Capex / limited

exposure

LA --OAS COLLECTION-- OAS CONTROL ANO PROCESSING -- ---- GAS UTILIZATION ----6

DIRECTED BIOGAS

NORTH AMERICA PIPELINE

Big Run Landfill

L'Oréal

Carbon Neutral 2019

2 Miles

SBWAN. America– Key Point 3

Legend

--- = Interstate Pipelines

--- = Intrastate Pipelines

Source: Energy Information Administration, Office of Oil & Gas, Natural Gas Division, Gas Transportation Information System

The Solution Directed Biogas

KENTUCKY

The Solution Directed Biogas

• Directed Biogas

• 15 year RNG purchase agreement

• Big Run Landfill in Kentucky

Biagas Transformation L'Oreal USA Operations has signed a 15-year purchase agreement for renewable natural gas (RNG) from a Kentucky landfill . RNG or LOREAL biomethane, is derived from many abundant renewable sources, including decomposing organic waste in landfi ll s, wastewater treatment, and ag riculture. This scalable, financially viable solution will propel L'Oreal USA Operations, including 21 manufacturing and distribution facilitiesOPERATIONS across 12 states, to be carbon neutral by 2019.

The collected landfill gas is Landfi ll gas, predominantly consisting of

then processed to remove methane - a greenhouse gas 25 times more

impurities to produce pipeline damaging to the climate than CO2 - is

quality renewable natural gas collected from the Big Run Landfill in

(RNG).Ashland, Kentucky.

The RNG is injected from the Big Run Landfill processing plant into

portfolio and is a key element of the reducing carbon

global Sharing Beauty With All emissions. Iii

sustainability program.c,sU, - II • ~I' ,,

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the natural gas pipeline network.

This RNG transformation fu rther diversifies L'Oreal's renewable energy

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RENEWABLE NATURAL GAS IMPLEMENTATION TIMELINE

• • • • • •

•

RNG PROGRESS

USA Ops – 16,000 Tons CO2

80,000 ACR CO2 Carbon Offsets

Renewable Thermal Collaborative

EPA LMOP Program Member

Contract Amendment – June 12th

Begin Storage of RNG for

registration

Refrigerant Management Plans

COMPLETE IN PROGRESS

• Site Engineering Review

(Complete)

• In Process

• Certificate of Analysis (COA)

• RIN Protocol by BRPP

• Affidavit Contract Summary

• EPA Registration Electronically

• EPA Submission - August 25

• Need Equal Production Match

FINAL STAGE

• Carbon Neutrality

• Revenues $$

• Announcement

• Coincide with KY Water

EPA

REGISTRATION

CARBON

NEUTRALITY

element MARKETS

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A ------------------ e I ement -------------MARKETS

MARKETS

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~OREAL OPERATIONS

RNG TO VEHICLE FUEL MARKET

Credits are sold to Obligated/Regulated Parties to

satisfy annual compliance obligations

Credit generation

Pipeline quality biomethane

Data collection Renewable fuel credit (RIN or LCFS)

RIN/LCFS credit revenue

RIN/LCFS Credit Revenue

L'Oréal USA

Biogas is collected and upgraded to

meet pipeline quality

requirements

Biomethane is Element Markets RNG is converted to injected into delivers CNG or LNG by a

pipeline Biomethane/RNG fleet operator and to transportation dispensed as vehicle

market fuel

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~OREAL OPERATIONS

CARBON NEUTRALITY

Results from communication efforts

In The News

“L’Oreal is

obviously, very

much an early

adopter in procuring

renewable natural

gas”

NPR

“It s significant for

such a large beauty

manufacturer to

commit to RNG”

Cosmetics Design

“L’Oreal s latest

innovation doesn t come in lipstick

tubes or compact

cases but rather in

sustainability”

Bloomberg

Initial announcement made

to 450 influlential

sustainability stakeholders,

businesses, policy, experts,

NGOs, and media.

Press coverage in 44 national

and regional outlets including

U.S. News, World Report, and

The Washington Times.

Recognition in news articles from

CERES, C2ES, Alliance to Save

Energy, High Line, RNG Coalition,

U.S. Department of

Energy, and the Kentucky

Economic Development Cabinet.

Multi-tiered communication strategy receiving over 52 million impressions, 1,357 online mentions, and 694 unique posts.

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In question CCll.3 companies shall report total MWh of energy, including certified biogas. Therefore, the use of certified biogas will be considered to be equivalent to "zero" Scope 1 emissions for the purpose of reporting to CDP." ~OREAL

OPERATIONS

L'ORÉAL USA OPERATIONS

17 Carbon neutral facilities in 12

states