2019 Sustainability Report Extract from the 2019 Universal Registration Document SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATION (2019 NON-FINANCIAL STATEMENT OF ESSILORLUXOTTICA) ESSILORLUXOTTICA MISSION 1 1 ESSILORLUXOTTICA’S APPROACH TO SUSTAINABLE DEVELOPMENT 3 1.1 Business model, environmental and social challenges 3 1.2 Stakeholders engagement 4 1.3 Sustainable offering 5 1.4 Main pillars of EssilorLuxottica Sustainability approach 7 2 MANAGEMENT OF SUSTAINABLE DEVELOPMENT 8 2.1 EssilorLuxottica CSR Committee and sustainability team 8 2.2 CSR risk management 8 2.3 Protocol and organization of non-financial reporting 7 3 FUNDAMENTAL SUSTAINABILITY PILLARS TO SUPPORT ESSILORLUXOTTICA MISSION 11 3.1 People 11 3.2 Environment 15 3.3 Society 20 4 NEXT STEPS OF ESSILORLUXOTTICA SUSTAINABILITY PROGRAM 28 5 METHODOLOGY NOTE AND CORRESPONDENCE TABLE 29 6 REPORT BY ONE OF THE STATUTORY AUDITORS, APPOINTED AS AN INDEPENDENT 33 THIRD-PARTY, ON THE NON-FINANCIAL STATEMENT INCLUDED IN THE MANAGEMENT REPORT EssilorLuxottica Mission To help everyone everywhere "see more, be more and While EssilorLuxottica was created in 2018, its long- live life to its fullest". standing commitment to expand sustainable access to The Mission of EssilorLuxottica drives its strategy and vision care builds on both Essilor and Luxottica’s everything it does. It is at the heart of the Company's investments and partnerships with not-for-profit values and principles and informs its integrated approach organizations: to sustainable development. • Since 2013, Essilor has created sustainable access to The Company’s groundbreaking products correct, protect vision care for over 300 million people in developing and frame the beauty of the most precious and powerful communities by establishing more than 15,000 inclusive sensory organ: the eyes. By combining the expertise in lens businesses around the world as part of Essilor’s 2020 technology and eyewear manufacturing, a portfolio of sustainability targets. Training and empowering young brands consumers love and global distribution capabilities, people to become entrepreneurial primary vision care EssilorLuxottica enables people everywhere to learn, work providers in rural communities not only opens up access and express themselves better and in order to fulfil their to vision care, it also improves livelihoods and promotes potential. skills development. To date, Essilor has equipped 33.5 million people “at the base of the pyramid” (1) with Lack of access and awareness have led to a global vision vision care. crisis with severe social and economic consequences for billions of people. EssilorLuxottica exists to give vision a • As a founding sponsor of the not-for-profit organization louder voice and respond to the world's growing vision OneSight, Luxottica and its employees have helped to needs. The Company achieves this by meeting the open 171 Sustainable Vision Centers in Africa, China, changing lifestyles and tastes of its consumers and India, Southeast Asia and the United States, providing inventing new ways to reach the 2.7 billion people who access to vision care to over 35 million peope. suffer from uncorrected poor vision, and the 6.2 billion • EssilorLuxottica continues to provide free vision tests, people who do not protect their eyes from harmful rays. eyeglasses and sun protection to the people most in EssilorLuxottica is a powerful advocate for the vision cause. need. In 2019 alone, 3.1 million people benefitted from A passionate campaigner for greater awareness and a the Company’s philanthropic eyecare programs, pioneering eyewear innovator, the Company provides including its support of Vision for Life and the Essilor solutions and styles that bring ever-greater improvements Vision Foundation. so everybody everywhere can enjoy the life-changing benefits of good vision. This explains why EssilorLuxottica made Fortune magazine’s 2019 Change the World list, taking the 17th spot. The list recognizes companies that have had a positive social impact through activities that are part of their core business strategy. Among 52 companies, the Company is honored in particular for its commitment to bring good vision to those in need. (1)“Base of the pyramid” refers to underprivileged and high-risk populations characterized by high rates of poverty, living on less than 2.50 USD a day. 2019 Sustainability Report • EssilorLuxottica 1 To accelerate solutions to the global vision crisis, the In addition, EssilorLuxottica supports international scientific Company acts on many levels to elevate awareness on the collaborations on R&D and expert-to-expert knowledge importance of vision correction and vision protection, sharing on vision science as well as patient needs. educating policy makers and consumers with dedicated • EssilorLuxottica supports the Vision Impact Institute, campaigns. whose mission is to make good vision a global priority, • In 2019, the report “Eliminating Poor Vision in a through research and data driven advocacy. Generation - What will it take to eliminate uncorrected • The Company continues to tackle the growing myopia refractive errors by 2050?” defined a first-of-its-kind epidemic with global awareness and engagement efforts roadmap on eliminating poor vision in a generation. The on myopia control among key opinion leaders, eyecare report was launched in New York, during the week of the professionals and the public. These actions include United Nations General Assembly, with the support of publishing China's first ever white paper on myopia NGOs and government partners of the development control and helping to establish the industry-wide Global community. Myopia Awareness Coalition as one of the founding • The Company continues to be a main supporter of members. “Think About Your Eyes”, a consumer advertising These, and all the actions of EssilorLuxottica, are driven by campaign on the importance of getting a its long-standing commitment to sustainable development. comprehensive eye examination. The campaign was The Company’s efforts in this area are recognized by ECPI launched in the United States in 2010 together with The Indices and Ethibel as a constituent of the Ethibel Vision Council, The American Optometric Association Sustainability Index Excellence Europe and Global. and other partners. Other consumer-facing media campaigns supported by EssilorLuxottica include “Good Vision For Life” in Australia. 2 2019 Sustainability Report • EssilorLuxottica EssilorLuxottica’s approach to Sustainable Development 1. EssilorLuxottica’s approach to Sustainable Development 1.1. Business model, environmental and social challenges EssilorLuxottica is a global leader in the design, • supply chain: situated close to manufacturing sites, the manufacture and distribution of ophthalmic lenses, frames role of the Company’s distribution centers is to and sunglasses. Its business model combines healthy coordinate the logistics flow between suppliers, growth, sustainability and the pursuit of excellence and, as manufacturing sites, lens laboratories, wholesale clients, such, relies on natural, human and financial resources. retail network and e-commerce customers. Most of the Delivering growth while making a positive social impact is environmental impact of these centers – 14 at Essilor part of EssilorLuxottica's business approach. and four at Luxottica - comes from greenhouse gas As described in Chapter 1 of this Universal Registration emissions from transportation (air and road freight, etc.). Document, the Company, which was formed in 2018, Given the high number of employees, the nature of brings together the complementary expertise of two their activities, the Company’s greatest focus here is on industry pioneers, one in advanced lens technologies and workplace health and safety; the other in the craftsmanship of iconic eyewear, to create • wholesale distribution: the Company serves eyewear a vertically-integrated business that is uniquely positioned retailers (e.g. independent ECPs, optical retail chains, to address the world’s evolving vision needs and the specialty sun retailers), department stores, duty-free demands of a growing eyewear industry. Influential shops and online players in more than 150 countries. eyewear brands including Ray-Ban and Oakley, lens Certain brands, including Oakley, are also distributed to technology brands including Varilux and Transitions, and sporting goods stores and specialty sports locations. world-class retail brands including Sunglass Hut and Pre and post-sale services, information security and data LensCrafters are part of the EssilorLuxottica family. protection are key for the success of long-lasting, trust- At EssilorLuxottica, value creation and sustainable growth based relationships. EssilorLuxottica’s sustainability go hand-in-hand with employee well-being and social efforts extend to its subsidiaries, in terms of impact across geographies and businesses. From product environmental footprint reduction (e.g. energy development and manufacturing to the sale to the end optimization) and of social impact on local employees consumer, the Company deploys a unique go-to-market (e.g. development opportunities and mobility) and strategy globally, including Retail, Wholesale, e-commerce communities (e.g. access to quality eyecare); and inclusive business models: • direct-to-consumer presence: with approximately • manufacturing capabilities: the Company’s 11,000 stores globally and proprietary e-commerce manufacturing capabilities – Essilor’s 33 lens production platforms, EssilorLuxottica