RESPONSBILE BEAUTY 2 SAFE, ECO-DEVELOPED RESPONSIBLE BEAUTY ECO-DEVELOPED by JonathanZrihen OUR VISIONOF AN ON-GOING COMMITMENT RESPONSIBLE RESPONSIBLE INGREDIENTS OPERATIONS LOW IMPACT PURCHASES EMPLOYEES DEDICATED PRODUCTS FORMULAS pages 30 22 24 26 14 18 3 8

SUMMARY ‘Make life more beautiful…’ committed to. Clarins. Itisalsoapromise thatwe’ve madeandapromise weare become asclose aspossible to ourclients.This isanewstepfor have some control of our supply chain (upstream) and (downstream) them from organic farming sources. To do so, we want to be able to ingredients (grown andpurchased) and, whenever possible, obtain what theyexpect: natural products withtheabilityto trace allthe Today, wewantto go even further. Ourgoal isto offer ourclients lations withwhomwedevelop, where appropriate, fair trade programs. and social.Ithasincreased ourinterest intheworkof thelocalpopu materials makes usattentive to alloperating conditions, environmental nature- leadtheway. Thesearch for avery highqualityfor ourraw Our twomainsources of innovation- listeningto womenandobserving of thistopic. byreflected eco-indicators to demonstrate the strategic importance we have indexed of aportion ourmanagers’ bonuspay ontheprogress has themapitneedstodepartment bestmove forward. Onthisnote, of our products across the entire process, by making sure thatevery Our approach consists incontinually improving theeco-development (CSR) andhave department relays inevery country wedobusiness in. For thelast12years, wehave hadaCorporate SocialResponsibility worldwide, often onapersonal level, whichcontribute to oursuccess. of initiatives andalevel of engagement ourteamsdeploy, environmentally responsible development. Thisvisionunfolds over a integrated into itsway of conducting business avisionof socialand that guidesusandinspires usevery day. Thecompany has always of this has led Clarins toward a more responsible approach to business with clientsandaccompany life ontheplanetby protecting nature. All employeesupport growth, foster arelationship of trustandproximity Olivier stillhave thisvisionplays outacross three corporate missions: life more beautiful.’ Thecompany now runby hissons, Christianand Courtin-Clarins and the motto he followed for his company: ‘Make Our approach to responsible beautyisrooted inthevisionof Jacques By JonathanZrihen–President - "The framework over thelong term." which play out family’s beliefs is basedon of ourcommitments EDITORIAL a

3

A committed group…

THE GROUP’S VISION: “To be known as the company that listens the most to its clients, the closest to its employees and the most committed to guaranteeing quality products while practicing responsible beauty.”

64 YEARS OF EXISTENCE A French family group with independent capital

10,000 87 % EMPLOYEES OF OUR EMPLOYEES COMMITTED HAVE A LONG-TERM 93% TO RESPONSIBLE CONTRACT OF SALES BEAUTY (VERSUS 81% IN 2016) ARE

O F W H I C H EXPORTED 57 % OF OUR EMPLOYEES Products 95 distributed in 87 % EXPERTS DEDICATED RECEIVE TRAINING (ALL PROFESSIONS COMBINED - ARE WOMEN TO RESEARCH EXCLUDING PRODUCT TRAININGS) MADE IN FRANCE 141 100 % COUNTRIES 3 SECTORS OF ACTIVITY & MAKE-UP FRAGRANCES FASHION 4 2 5 CORPORATE MANUFACTURING REGIONAL OFFICES SITES LOGISTICS 24 4 BRANDS CLARINS MY BLEND MUGLER AZZARO IN PARIS IN FRANCE CENTERS SUBSIDIARIES

SEVEN COMMITMENTS 1 2 3 4 5 6 7

RESPONSIBLE SAFE, ECO-DEVELOPED RESPONSIBLE LOW IMPACT LONG-TERM DEDICATED INGREDIENTS ECO-DEVELOPED PRODUCTS PURCHASING OPERATIONS COMMITMENT EMPLOYEES FORMULAS

4 5 … from the very beginning

2007 2012 2014 2017 • Creation of • Access to water • New eco-designed • 420,000 trees 1984 the Group Clarins programs are continued buildings in Paris. planted worldwide Responsible in Madagascar and (received BREEAM with PUR Projet When Development. in Burkina Faso. and HEQ certifications- since 2011. introduced on ‘green’ designations Stock Exchange, • Clarins starts and energy efficiency). • Fair trade allows stocks and stock- supporting FEED, to build a new school options offered 2010 the world food in Madagascar, with 1954 to all employees. program for children. 2015 the help of Jardins • Biodiversity du Monde. partnership •Jacques with Tchendukua •ISO 14001 and • 10% recycled Courtin-Clarins and Deyrolle. ISO 50001 certification plastic is used in founded Clarins. • First formal fair for all 3 industrial sites the new Double trade agreement • ClarinsMen in France. Serum bottle. in Madagascar. Environment 1964 1989 1993 2004 Award given to • First honey harvest Bertrand Piccard from rooftop hives • Launch of • Creation of • Partnership • The first for the Solar on Paris building. the 100% pure the Polyarthritis with Alp Action ClarinsMen Impulse project. plant extract oils. Research to help preserve Environment The Légion Association (PRA). biodiversity Award goes to • New tool for d’Honneur is given in the Alps. the ethnobotanist 2008 • marketing teams: to Christian Courtin- Jean-Pierre environmental st Clarins by the French Nicolas, for his 1 Carbon • eco-calculator. Ministry of Ecology. association Jardins footprint on du Monde. French sites. • Clean water supply for Morarano village and expansion of the school 1965 1992 1997 2006 in Marovoay 2011 2013 2016 2018 in Madagascar. • Profit sharing • Launch of • Creation of the • Creation of the • Launch of the • Roland Jourdain • Opening of ‘Domaine • More than for employees. Thierry Mugler’s ‘Dynamic Woman’ Arthritis Fondation Mugler Forest receives the Clarins’ in the Alps. 20 million school ‘Angel’, award to support Courtin, taking and the Santa ClarinsMen meals offered since the refillable work being done on after ARP. Rosa Botanical Environment Award • Launch of a pilot the beginning of perfume. to help children. Garden in Peru for his Explore agroforestry program the Clarins-FEED with Pur Projet. Foundation. to improve the sourcing partnership. of the sugar beetroot used in • Support of Plastic (alcohol). Odyssey to raise awareness about the 1999 • Azzaro starts plastic pollution of the supporting ‘Under oceans and build low- tech and open-source Clarins stops Best Laboratory The Group extends The Pole3’. • • • depolluting machines. using plastic bags. Practices (grade ‘A’) its responsible discerned to Pontoise. commitments. • Agreement with Pro-Natura • Clarins leaves International in Brazil the stock exchange for the preservation as part of a long-term, of natural environments. strategy.

6 7 8 1

2018 RESULTS PLANTS FROM FROM THE CATALOG COME OF ACTIVE INGREDIENTS CERTIFIED ORGANIC

RESPONSIBLE SUPPLY CHAINS’ DIAGNOSED SOURCING AND10PLANTS INTO ORGANIC FARMING PLANTS INGREDIENTS CONVERTED

2019 GOAL of 10newsupplychainsdiagnosedperyear. study of plants’ supplychainswiththegoal Furthermore, Clarinshasreinforced the paid (+41%)inoneyear. and oneinIndia,withanincrease inbonuses place: 6inMadagascar, 4inBurkina Faso, In 2018, 11fair trade programs were putin thanks to fair trade bonuses. the livingconditions of thelocalpopulations develop socialprograms thathelpimprove practices thatrespect thesoilandto was to bepaidinorder to growing support from developing countries, thatafair price related. whenplantscame Itwasimportant, social concerns have always beenclosely At Clarins, visionary, environmental and and people. chain possible whilerespecting plants, soil them iskey to having thesafest supply raw materialsusedandbeingableto trace quality’ iscloselylinked to thequalityof the plants from 40different countries. ‘Clarins The herbarium contains more than200 ‘sustainable development’ wasever coined. to protect nature… longbefore theterm for itssuccess andhasalways looked supply of itsingredients wasaprerequisite understood earlyonthatthesustainable ingredients from thevegetal world,Clarins very beginning. Taking inspiration andkey for theClarins Groupimportant from the Observation andcare for nature have been THE SOIL ANDHUMANS THAT RESPECT PLANTS, SUPPLY CHAINS raw materials quality forourplant-based thehighest Guarantee Pur Projet (seep. in partnership withthesocialenterprise than 446,216trees have beenplanted to regenerate thesoil.Worldwide, more In twoyears, 3800trees have beenplanted beet alcohol usedintheGroup perfumes. is aimingto create asupplychain for sugar of part Francethe northern (Picardie) which an experimental agro-forestry project in it’s declined.InFrance, theGroup supports restoring biodiversity where has alsobeencommitted to For thepastfew years, Clarins ones in2019. Our goal isto convert sixnew sweet lupineandcamellia. meadowsweet, rhododendron, fig, gypsophila,sweet orange, guarana, nipplewort, flower, in thecatalog: kangaroo Group converted nineplants Alps (seep. 12).In2018, the 2016 of intheheart theFrench Clarins Domaincreated in that wasselectedfor the of organic growing practice in Australia. Itisthismode example of kangaroo flower theircreationsupports asintherecent the supply chainsdonot exist, Clarins for allnewplant-based ingredients. When is to findorganically-sourced ingredients the soilandbiodiversity. Today, thepriority sourcing isthelogical next stepinprotecting of plantsinourcatalog toward organic In thesameway, theprogressive conversion ORGANIC SOURCING INGREDIENTS FROM MORE ACTIVE

29). 9 10 we cango even further. learned alot. Intermsof respecting theenvironment, the planet? 60years of workingwithplantsmeanswehave ourselves anddoingsoinaway thatcompletely respects already exist. Whynot make anexample by growing plants and have created organic supplychainswhentheydon’t of plant-based ingredients through fair trade programs Domain. We already thesustainablesupply helpsupport Organic farming iswhatwewantedfor theClarins Pur Projet, PlasticOdyssey andUnderthePole. knowledge andprotecting biodiversity withprojects like the Group initiatives supports whichfocus on expanding that respects nature andlocalpopulations.Furthermore, whom wehave worked closelyresearching plantsinamanner an ethnobotanist, and founder of ‘Jardins duMonde’, with of ecology. He introduced meto Jean-Pierre Nicolas, I alsospentalot of time withJean-MariePelt, aprecursor protect theAlpsthrough hisorganization ‘Alp'Action’. with Prince Aga KhanwhenIpledged Clarinsto helping It’s always beenaboutheartfeltencounters. Beginning to fair trade back in2007. and ‘Economical’ whichmeanspaying afair pricefor thiswork. ThisiswhatIdidwhencommitted theGroup be summedupinthree words: ‘Ecology’ whichmeansprotecting nature, ‘Societal’ whichmeanscreating jobs swim intheseawithoutbeingsurrounded by plasticandother waste. Myideaof sustainabledevelopment can My ‘a-ha’ momentoccurred to mewhenmydaughterVirginie wasborn in1985.Iwondered ifshe’d beableto It wasmyfather’s dream- he’d hadavisionthattheAlpswere aplaceof purityandneededto beprotected. Our company wasbornamongplants.Ourfirst products were the100%pure plantextract oils. for thefounding family of theClarinsGroup.’ ‘Return to nature whatnature have given us’ hasalways beenamotto Nature asourlegacy ORGANIC SOURCING, WHY? TO USEPLANTS FROM YOU MAKEITAPRIORITY WHAT GUIDESOURCOMMITMENTS? A PRIORITYFOR CLARINS PRESERVING NATURE HAS ALWAYS BEEN Conversation withChristianCourtin-Clarins -President of theSupervisoryBoard

‘  go even further.’ environment, we can the of respecting expertise. Interms acquired agreat knowledge we have In 60years ofplant

in several other of thebrand’s formulas. is found intheHydra-Essentiel range and level for improved hydration. Thisingredient moisture-retention mechanismsinevery This extract stimulatestheskin’sown water, even inextreme drought conditions. leavesThe fleshy of leafof life holdonto It istheprincipleof ‘bio-mimicry’. of thefundamentals of ClarinsResearch. Observing nature for inspiration isone populations. use of medicinalplantsamonglocal ‘Jardins duMonde’ whichhighlightsthe work hedoeswithhisorganization Pierre Nicolas intheframework of the highlighted by theethnobotanist Jean- Madagascar. Kalanchoe pinnatawas and grows primarilyinnortheastern plant hasskin-healingproperties Nicknamed ‘leafof life’, thissucculent plant medicinal A

PLANTS’ LEAVES HUMIDITY INTHE LEVEL OF

for Clarins. transformed into raw extracts Madagascar before being harvested anddriedin 10 tons of leaves are grown, and fair trade) by Ecocert. ‘Fair for Life’ (organic farming Leaf of life hasbeencertified and extraction sourcing Organic KALANCHOE

programs inschools. help provide nutrition consultations andto dedicated to health community center possible to builda this bonusmadeit of schools…).In2018, programs, renovation projects (wateraccess finance infrastructure to thevillages to the extract, paid on production and leaves andabonus women whopickthe revenue for the a complement to process. Thismeans fair trade production of life; anorganic and harvest anddryleaf been developed to with twovillages has this, apartnership 2004. Based on in Madagascar since ‘Jardins duMonde’ side by sidewith Clarins hasworked supply chain A fair trade EVERY YEAR HARVESTED OF LEAVES 10 tons 11 The Clarins Domain is located at an altitude of 1400 m in the French Alps.

T THE HEART OF THE CLARINS DOMAIN

10 HECTARES IN THE MIDDLE OF 80,000 HECTARES are dedicated to organic farming and to observing plants. The Clarins Domain incarnates all the Group’s philosophy: care for plants and respect for nature.

The result of a commitment to responsible Their cosmetic properties are explored as supply chains, Clarins acquired land in 2016 is the best way to extract key ingredients. in the heart of a protected nature in the This domain also represents an opportunity French Alps, at an altitude of 1400 meters. for Clarins to go to the full extent of its Thirty Alpine plant species, like sanicula goal: complete mastery of the supply chain, or rhodiola, are grown in as gentle manner from the field to the finished product, as possible: no chemicals or pesticides are making it possible to meet clients’ high used (the entire domain is organic certified), expectations around quality and optimal techniques that respect the seasons and in traceability. Some ingredients from the line with plants’ natural rhythm, a respect for domain like organic extracts of houseleek life and the soil (superficial ploughing using or rhododendron are already being used in only horse-drawn equipment). a few of the brand’s product ranges. Others will join the catalog over the next few years. This domain is both an open-air laboratory and a source of raw materials of exceptional quality for our products. ‘Laboratory’, because plants are being observed and studied molecule by molecule, for an even better understanding of how they function.

‘ This domain will allow us to obtain a dozen ingredients which will be used in our formulas. And some of our products will be exclusively formulated with ingredients from the Domain.’

Christian Courtin-Clarins

12 13 Perfect our formulas 2 on an on-going basis

SAFETY IS PLANTS AND A PRIORITY GREEN CHEMISTRY

Clarins always aims for product excellence Clarins can claim the central role played by and bases this on an essential trio - safety, plant extracts, which make up 90% of the efficacy and sensoriality - without which active ingredients used by its Laboratories. a product is not launched on the market. To obtain these plant extracts, researchers Clarins skin care products, My Blend products, have relied on extraction processes over fragrance products from Mugler and Azzaro, the last 12 years based on ‘green’ chemistry, as well as most of our make-up products are meaning, they respect the plant and the formulated in France, at the research center environment: green solvents and ultra-sound in Pontoise, which means we have optimal techniques which shorten the heating time mastery of the process. Over the course and use less energy. of development, each formula undergoes more than 250 quality controls and ingredients are Today, the Group is working to gradually selected in conformity with regulations in replace synthetic components with ones more than 150 countries, some of which are of natural origin, especially preservatives, pharmaceutical. To meet the expectations stabilizers or other excipients which of transparency of its customers, Clarins goes enhance sensoriality. The goal? Offer the even further in terms of traceability and even most effective products possible without more regarding sustainability of its ingredients compromising safety or sensoriality. and formulas. To do so, our Laboratories Clarins is also focused on the impact its developed an internal pilot tool called the formulas have on the environment with the "Clarins Green Score" which makes it possible goal of having 100% biodegradable formulas to evaluate the environmental, social and by 2025. health impact of each formula over its lifecycle (see p. 17). In 2020, Clarins is committed to evaluating all its formulas and pledges to keep only the best.

ZOOM ON INGREDIENTS (2018)

RAW MATERIALS PLANTS Active Ingredients, Excipients,

SAFE, ECO-DEVELOPED SAFE, ECO-DEVELOPED FORMULAS Fragrances, Filters…

TOTAL NUMBER OF TOTAL NUMBER OF PLANTS SCORES NUMBER OF ORGANIC RAW NUMBER OF ORGANIC WITH ROLL RAW MATERIALS MATERIALS PLANTS PLANTS SUSTAINABLE

OUT OF USED USED USED USED BONUSES THE GREEN 1,028 82 234 58 10 SCORE OF NEW SKIN CARE 2020 GOAL 2020

2018 RESULTS RESULTS 2018 FORMULAS

14 15 A system of Clarins Green Score Rating our formulas ‘open formulas’ to select only the best

In line with its responsible ingredient policy, Clarins is looking to constantly improve its product formulas. Based on a desire to seek constant improvement, Clarins developed an internal tool which makes it possible to rate product formulas r Explained by D Olivier Courtin-Clarins – Managing Director based on an evaluation of each of the ingredients.

WHAT IS YOUR HOW DO YOU INTEGRATE AN INTERNAL APPROACH TO THIS IN YOUR FORMULATION TOOL FOR OUR 2020 GOAL: ECO-DEVELOPMENT? APPROACH? LABORATORIES SCORE 100% OF SKINCARE Every ingredient and excipient are carefully We can say that our formulas are eco- At Clarins, we aim to keep one thing in mind FORMULAS evaluated using a range of criteria. Three themes developed to the extent that our goal is when creating new formulas: PRICE IS NOT were established (environmental, social and to constantly improve them. To do this, A CONSIDERATION, only the benefits of we use the Green Score tool (see insert). the formula and its ‘sustainable’ evaluation. health) based on a list of 10 criteria, objectified If the product already exists, our goal is to We therefore have a lot of freedom when by 18 indicators. The raw material is therefore reformulate it to optimize it by using more developing a new product, but this becomes evaluated using several aspects: its origin (natural natural stabilizers for example. If it is a more difficult when reformulating an existing or synthetic), absence of pesticides, water footprint, ‘ It’s one of the new product, we favour ingredients that product because it will always be compared country of manufacturing, including an environmental are certified organic, and we prohibit the to the original product, especially in terms perspective (processes, carbon footprint…) and most complete use of certain components. Clarins strives of sensoriality. social (CSR practices and Ecovadis ratings of scoring tools in to continually perfect product formulas. suppliers). Certain criteria like organic certification It is what we call ‘open formulas’ and this the profession. or fair trade practices are bonuses, others, however, approach includes eco-development. Therefore, we evaluate by steps. This takes It allows us to time and to date, not every component is able weigh in negatively such as the social risks inherent to be substituted. It is sometimes difficult to certain countries. The overall rating of the analyze our raw to obtain the same results with plant-based formula is obtained by adding the ingredients’ materials, classify ingredients, especially for make-up products. scores. them by results For example, we are starting to use plant- based preservatives, but I will never replace (low, moderate synthetic preservatives if I’m not absolutely or high) and make ALWAYS certain that my products are completely risk- the best choice.’ free for consumers. AIMING FOR CONTINUAL IMPROVEMENT

There are several advantages of using the Green Score. One of the first is the enhance the sharing Sandrine Milesi – Director of Ingredient Research of information between suppliers and Clarins teams. If the supplier is not transparent, the raw material will be docked by receiving a score of 0. And for the same ingredient, Clarins will choose the supplier with the best practices. The Green Score also makes it possible to guide formulators in their choice of ingredients, the scores are made available in the laboratories’ information system. And, most importantly, the score helps identify the suppliers and raw materials where improvement is needed so that a formula’s overall rating goes up. 17 Develop packaging 3 that enhances the circular economy

MINIMIZE THE USE THE PACK SCORE: OF NATURAL RESOURCES HELPS TO CHOOSE

Since 1992, Mugler Perfumes have been on RESPONSIBLE PACKAGING the forefront of the profession in terms of reducing packaging with the concept of the Since 2010, Clarins has been using decision refillable bottle at the Mugler Source that support and life cycle analysis (LCA) tools makes it possible to save 1.5 million bottles for eco-design. The Group is taking an extra every year and just as much cellophane, step toward developing the Pack Score, outer cartons and inserts (see p. 21). In the similar to the Green Score for ingredients wake of this wonderful success, Clarins and formulas. The Pack Score makes it has integrated eco-development criteria possible to evaluate and compare different over the past several years for each new packaging ideas for the same product in packaging development, at all levels of order to identify areas of improvement. decision making. Together, teams look The tool is based on 8 eco-development for the best solution which combine criteria: the material and its impact on performance, price and sustainability. the environment, the percentage of recycled material, lightness, volume, decor We want this approach to be global: it elements, simplicity (the presence or not targets both sustainable materials- all outer of extra packaging elements), end of life cartons and corrugated cardboard are considerations (recyclability or refill), the from sustainably managed forests- reduced level of formula restitution. The goal is weight and volume- removal of product to put in place this new tool in 2019 for wedges and inserts, lighter glass- and the continual improvement for all our packaging use of recycled and/or recyclable materials. developments.

Regarding this last point, Clarins already offers packaging that is for the most part, recyclable — 63% are made of glass or cardstock – and since 2012, all glass packaging contains at least 25% recycled glass. Today, a priority is being given to

ECO-DEVELOPED ECO-DEVELOPED PRODUCTS a circular economy, meaning, the use of material that is easy to recycle and, in the case that recycling cannot be guaranteed (like for plastic), the integration of recycled LAUNCH ROLL OUT NEW material (PCR- post-consumer recycled, OF THE PACKSCORE made from single-use packaging). A first TOOL TO IMPROVE packaging product with 10% PCR plastic was launched with the new Double Serum and the use of raw materials from recycling is unfolding in new developments, everywhere PCR PLASTIC this is technically possible. Due to a lack of

2020 GOAL 2020 confidence in supply chains, the use of agro-

2018 RESULTS 2018 PACKAGING OF PACKAGING plastic was not retained, except for plastic DEVELOPMENTS based on sawmill waste which the Group is still experimenting with.

Technical drawing and photo of Double Serum 18 bottle with 10% of PCR plastic 19 Pioneer in the industry, the Mugler Source prepares its transformation Federate others around ecodesign The new for the fourth time. An innovative creation by its aesthetic, technical and eco-res- Mugler Source ponsible qualities. Developed in 2018 in partnership with THE DIAM GROUP, it is The Clarins Group is very active within the and encourages decrypted destined to be used to refill the brand’s eco-friendly packaging and POP elements by defining common practices. three emblematic women’s fragrances at Let’s look at two recent initiatives: CYCLEAPP and SPICE. sales sites: ANGEL, ALIEN and AURA.

1992 2007 2013 2019

CYCLEAPP, CREATE THE FIRST SPICE, A GUIDE RECYCLING NETWORK FOR POP FOR MAKING GOOD MATERIAL IN FRANCE ECO-DECISIONS

Clarins joined the Cycleapp project initiated Launched in May 2018, SPICE — Sustainable by Chanel along with other actors in the sector. Packaging Initiative for Cosmetics — is a collective This project aims to test a solution that supports initiative in the beauty industry to think about the the end of life of POS in the perfumeries. future of sustainable and responsible packaging. The final goal is to easily collect the POP at the The program counts a dozen members, mainly sales sites then sort them for recycling and give brands and a few associations. Clarins has been them value. By connecting all the actors in the chain, a corporate member since the launch. What is this initiative helps create a real recycling network. SPICE’s ambition? To allow brands to develop their eco-development strategies using harmonized methodologies, well-known in the industry. Year 1 made it possible to develop a common evaluation methodology. SPICE also gives its GENESIS members a chance to affirm their position on major In 1992, Mugler Perfumes rein- topics such as recycled materials, agro-plastics, vented the tradition of per- refillable packaging, take-back programs and how fume fountains born in the 18th ECO-DEVELOPMENT to dispose of products at the end of their lifecycle century when precious bottles DESIGN REFILL were continuously refilled with An important amount of per country. They’ve reached an agreement, for their original fragrance. The The idea behind the new TECHNIQUE eco-development work went example, to only consider as recycled materials Mugler Source was developed creative approach was to into this project to improve those from post-consumer use (PCR) and not to avoid throwing away the create a more feminine, The new Mugler Source the Source’s eco-develop- materials from industrial waste. precious bottles that housed ethereal design, more offers clients a new way to ment dimension: a reduction the Angel perfume, initiating round. This is where the refill their bottle using a in material thickness, the an eco-responsible attitude chrome drops come in ‘correct amount of product’ ability to separate parts to before such an attitude was which represent the origin thanks to a new open and facilitate recycling; all the ‘in’. Over the last 20 years, the of fragrance– the drop that close refill cap and an adap- elements clip together wi- Mugler Source has remained falls from the bottle– and tation of the Source to this thout needing any glue or one of a kind. Mugler’s celestial universe. new technique. adhesive.

ONE BOTTLE FILLED EVERY 25 SECONDS

‘ The Diam group has worked with Clarins for more than 30 years. There is a real partnership spirit between the two groups. The most beautiful result of this partnership is the Source. We were involved from the very beginning of this project with merchandising and creative teams. We worked hand in hand in the creation and technical development.’

Bruno Blin – Sales Director for Prestige Europe, Diam

20 21 4 22

2018 RESULTS ECOVADIS EVALUATED BY OF SUPPLIERS

RESPONSIBLE IN 5PILOT LOCATIONS. WITH SUPPLIERS EVALUATED

ECOVADIS ROLLOUT PURCHASES

2019 GOAL for work carriedoutaround agro-forestry insugar beetfarming. The Purchasing teamwasrecognized attheHA!Awards in2017 vis itspartners. to actingasaresponsible enterprisevis-à- measures. Inreturn, theGroup iscommitted of products andservicesby allpertinent environment andto minimizetheimpact of theiremployees, thepreservation of the suppliers, respect for thehealthandsafety Rights for themselves andfor theirown for theUN’sUniversal Declaration of Human across four areas: business ethics, respect to respect number of acertain criteria suppliersthe charter, for theGroup pledge and environmental responsibility. By signing same valuesof integrityalong withsocial all actors involved initsactivitiesshare the drawnCharter upin2013, is to ensure that The Group’s primarygoal, withtheSupplier and transparency of itssupplychains. guarantee customers thetraceability consideration Clarinshasinorder to environmental performance isakey are concerned withsocial,ethicaland Working withcommitted suppliers who THE ENTIRESUPPLYCHAIN PRACTICES ACROSS GUARENTEE GOOD Responsible Beauty goals Beauty Responsible withour on board Bring suppliers in order to promote bestpractices. aims to share suppliers’ CSRevaluations This alliance, afirst inthecosmetics sector, with L'Oréal andtheRocher andCoty group. the Responsible BeautyInitiative in2017 the beauty sector, Clarinsco-founded To accelerate thetransformation of thresholds. the Group’s purchasing policyacross minimal extend to allsubsidiaries andto spread and Japan.Theambitionisto eventually Swiss Hub(agents andtravel retail), China in 5pilot subsidiaries: Mexico, Switzerland, evaluated by 20% by rolling outtheinitiative for 2019: increase thenumberof suppliers and +37 represents more than85%of purchases of 2018, 285suppliers were evaluated, which chose to workwithEcovadis andattheend its responsible commitments. TheGroup Purchasing inorder department to alignwith of suppliers, managed by theGroup’s by organizing itsfirst ratings campaign Since 2016, Clarinshaswantedto go further BY ECOVADIS SUPPLIER RATINGS SPREAD

% innumberversus 2017. Thegoal 23 Optimize all operations, 5 production, management and distribution

ENVIRONMENTAL AN EXEMPLARY MANAGEMENT CORPORATE OF ALL SITES HEADQUARTERS

For more than 10 years, the Clarins Group The twice-certified corporate office has carried out measured actions on all building in Paris (High Environmental its operations with the goal of reducing Quality-HEC- and BREEAM) opened in July 2014 and was designed to optimize greenhouse gas emissions and optimize employee well-being and respect for the the use of natural resources. In France, environment. In 2016, its HEQ certification this policy is carried out by the Health, was raised to ‘Exceptional.’ The building Safety and Environment department at has the highest performing installations three industrial sites (Amiens, Pontoise and in terms of insulation and energy, climate Strasbourg) which are certified ISO 14001 control and acoustics, and work conditions. and 50001. Internationally, this action is 100% of the electricity is from renewable placed under the responsibility of subsidiary sources (solar panels produce energy that presidents who roll out the strategy through is reintroduced in the building), rainwater is adapted, local initiatives. collected to water the garden.

In a context of increased production, the The Group’s commitment for 2019 is Group’s global energy use remained stable for each country to obtain the BREEAM in 2018. All the French sites now benefit certification for one of its boutiques, from contracts that favour using electricity beginning in France, then worldwide in generated by renewable energy sources. 2020. Clarins commitment is to obtain 100% of its electricity* from renewable sources in 2020. Besides the Paris offices, four subsidiaries, Italy, Switzerland, Germany and Mexico, all have solar panels and produce a part of the electricity they use.

LOW IMPACT IMPACT LOW OPERATIONS A FEW Concerning water use, the industrial site ENVIRONMENTAL in Pontoise was equipped in 2016 with a water pre-treatment installation which aims INDICATORS STABLE THE FIRST ENERGY to alleviate its impact on the public network and all industrial sites have their own ENERGY USE IN EFFICIENT (BREEAM waterproofing systems in order to prevent 2016 2018 A CONTEXT CERTIFIED) BOUTIQUE water and ground pollution incidents. OF INCREASED TO USE THIS APPROACH For the consumption of water in their Total energy use buildings, two subsidiaries, in Switzerland 38, 142 33,900 PRODUCTION IN EACH COUNTRY GOAL 2019 (MWh)

2018 RESULTS 2018 and in Mexico have their own reservoirs which are filled by rainwater. Share of green electricity 34 % 42 % in total electricity To harmonize the actions being carried out, employees representing all business lines Water use 0.92 0.73 and regions of the Group have been working (L/sales unit) together since 2014 on a large and ambitious project called Scoop, which aims to optimize all production, management and distribution Recyclable packaging 62 % 68 % operations. 24 25 *At sites belonging to the Clarins Group 26 6

A LONG-TERM

FINANCED SCHOOL LUNCHES ARTHRITIS FOUNDATION RESEARCH FOR THE EUROS COMMITED TO COMMITMENT TREES PLANTED become aninternationalcause. lunches distributedworldwide, FEEDhas in 2011. Withmore than23 millionschool from aninitiative withtheUSsubsidiary style. Thepartnership withFEEDwasborn that characterizes theGroup’s management also linked to Clarins’ entrepreneurial spirit organizations. Thissocialcommitment is for clientsto thevarious helpsupport messengers of solidarity, makingitpossible Every year, specialShare Products become been 88award recipients in14countries. for children inneed.Asof 2018, there have who are committed to makinglife better recognizes theworkof exceptional women (childhood protection award), which Award in1997, whichisnow thePrix Clarins creation of the‘MostDynamicWoman’ which helpchildren inneed.Thisledto the seemed natural to projects alsosupport at thecenterof theGroup’s attention,it worldwide. Andsincewomenare always family butalsoconsumers andemployees carried by theunwavering of support the a major pillarfor jointdiseaseresearch, FoundationThe Arthritis hassincebecome suffering for thosewiththedisease. family personally, withthegoal of relieving Research, afterthediseasesaffected the created theAssociation for Polyarthritis in 1989whenJacquesCourtin-Clarins company’s very foundation. Itallbegan ofsocially-minded dimensionispart the consumers andstakeholders. Thisshared lever to weave arelationship of trustwith commitment to socialissues apowerful and projects thereby makingits 168associations Clarins hassupported TO SUPPORT APPROACH A SHAREDDESIRE and biodiversity childrenhealth, Acting for

vulture to theAlps region. since 2005 whichhasworked to reintroduce thebearded The Group theAsters hassupported conservatory is impossible. passionate peoplewhoare proving nothing the first partner. At thehelmyou’ll find Plastic Odyssey, for whomClarinswas Impulse, UnderthePole andvery recently, pioneering expeditions suchasSolar Our ambitionisalsoto accompany Jardins duMonde,Pur Projet, etc… projects workingto protect nature: Asters, hasgreatlysupport widenedto other endangered species.Initswake, Clarins in theAlpsandto protect hundreds of possible to deploy 5preservation programs commitment alongside AlpActionmadeit began intheAlps90s.This10-year withthehistoricalstarting project which biodiversity inseveral regions of theworld, never stopped takinginitiatives to protect founding commitments. TheGroup has nature isalsoanintegral of part Clarins’ of vegetal raw materials, protecting Closely associated withthesustainability NATURAL ECOSYSTEMS PROTECT ANDRESTORE 27 ̒ For Clarins, the beauty is only meaningful if accompanied generosity, SEEDS OF kindness and humanity.’ BEAUTY 446,216 TREES PLANTED Christian and Olivier Courtin-Clarins AROUND THE WORLD

The partnership between Pur Projet and Clarins was born from an encounter in 2011 between Christian Courtin-Clarins THOUSANDS OF CHILDREN and Tristan Lecomte who, after founding and developing Alter GO TO SCHOOL THANKS TO Eco, created Pur Projet in 2008 to fight climate change and THE ARTHRITIS deforestation. This initiative allows companies to invest in sustainable social and environmental programs, at the heart By supporting FEED of their supply chains, especially in agro-forestry projects. FEED since 2011, the American FOUNDATION Clarins supports the Botanical Gardens in Santa Rosa, in Peru, subsidiary of the Clarins A SUCCESS STORY which makes it possible to protect a hundred native plants Group had a goal: and to raise awareness locally around nature conservation SERVING THE SICK replace the Gift with as well as the Povos da Floresta project in Brazil that aims Purchase offer so dear to restore damaged areas in the Amazon which several local to distribution with a communities. Through the ‘Seeds of Beauty’ program in Asia, Since 2006, the year the Gift with Purpose. This Clarins supports reforestation and agro-ecology projects foundation was recognized initiative was born from a developed by Pur Projet with small producers in Thailand, as being of public utility, the meeting with Lauren Bush China and Indonesia. Since 2016, the Group has carried out Arthritis Foundation has raised Lauren, who has worked location actions in Indonesia, in several regions on the island 12 million euros to support since 2007 to create of Sumatra, with the goal of improving the quality of the scientific research on different the FEED Projects which soil, reduce erosion and increase and diversify revenues for joint diseases, including aim to provide school producers. A virtuous circle that clients are a part of when severely disabling pathologies lunches. Thus, began an they purchase the brand’s products. like rheumatoid polyarthritis unwavering partnership or ankylosing spondylitis. with Clarins: for each Presided by Dr. Olivier Courtin- FEED skin care/make-up Clarins, it is the only foundation bag purchased, 10 school of its kind in France to support lunches are distributed academic research on joint through the UN’s World disease. The Clarins Group Food Program. finances all overhead costs which means the Foundation And for any purchase can donate all of its donations over a certain amount to research. In 2018, Nadège (i.e. 65 euros in France), Nziza, a PhD student in Clarins clients receive Montpellier, filed a patent a collector bag, thereby for juvenile arthritis. In the supporting a great cause. steps of the Courtin-Clarins Providing a school lunch family, employees, suppliers, makes it possible to not brands and consumers strive only feed children in need to make the Foundation but also to encourage a scientific crossroads, an regular attendance at innovation and discovery school and achieve an tool but also a formidable education. To date, FEED loudspeaker for joint disease. has provided more than 4 million school lunches every year in 40 different countries.

28 29 Make life more beautiful 7 for every one of our 10,000 employees

‘Here, managers have a desire to see teams grow.’

At age 39, Samuel Colin AN HR VISION BASED was named General Manager ON COMMITMENT for Export and is based Employees are the primary focus in Geneva. He started his of the motto developed by the founder career at Clarins in 2002 of the company, Jacques Courtin-Clarins, as an intern while a student ‘Make life more beautiful.’ Allow the company and employees to grow together, at Sciences Po. A talented anticipate needs of competencies, develop career marked by inspiring and train teams, are the essential missions encounters and real pride that Clarins takes on in terms of managing belonging to a very devoted human relations. group. This is his story. And just as the Group has as a priority listening to clients to improve product quality, Clarins also listens to employees Samuel Colin – General Manager for Export in order to better meet their needs. It is in this spirit that Clarins launched in January 2015 "Your Say," its first international survey I’ve worked with different markets, in France which explored more than 40 themes and and internationally. Everywhere, I found a real community has become a management and continuous of shared values among those who work for this improvement. company. Everyone understands the vision and sense In 2017, 82% of the Group’s employees of what Clarins wants to accomplish for clients, the planet participated in the second annual survey and for employees. This shared vision creates a sense and an impressive level of commitment of adherence that creates meaning. of 84%. Common topics emerged in all I’ve been lucky to have a very multidisciplinary career of the countries and Clarins responded and to progressively take on responsibilities in a position by putting in place clear and coherent that has grown little by little. I’ve crossed paths with people policies in terms of remuneration, social who have always been there to help me grow, take me out DEDICATED DEDICATED EMPLOYEES advantages, performance, development of my comfort zone in a caring way to help support my (training, mobility) and career (talent) personal growth. In this way, I’ve been able to do trainings, management. With these new policies, both in terms of personal development and in manager OF OUR EMPLOYEES SUPPORT Clarins shows its commitment to paying coaching. The Group makes it possible to constantly learn attention to internal equity and external THE COMPANY’S VALUES*: RESPECT, new things and has a real desire to develop teams outside competitiveness. COMMITMENT, COLLABORATION, the traditional framework of career development. This is AUDACITY AND PASSION Raising employee awareness around fundamental for facilitating mobility. But I think what makes the difference is the overall managerial vision. The human * Clarins Your Say 2017 sustainable development values is a major and differentiating point of our HR dimension of Clarins is important for everyone. My greatest policy so that everyone feels invested in motivation is to see people who move up in the Group the roll out of the Group’s commitments. and remain loyal to their values of respect and proximity, In 2018, Clarins formalized its code whether with internal teams or with outside partners. of ethics and the setting up of an alert This is what we strive to promote as managers: ensure system, destined to be unfolded in all employee well-being, their development, and convince them our subsidiaries. that they can have a positive impact on their environment and on others.

30 31 RESPONSBILE BEAUTY

Direction Développement Responsable Groupe Clarins – 12 avenue de la Porte des Ternes 75017 PARIS Photography credits : ©Guido Mocafico - Design and creation : Sidièse [email protected] Tel +33 1 56 60 62 38 www.groupeclarins.com