GROUPE ROCHER - 2014 CSR report EVERYDAY, WECOMMIT r esponsibility corporate

14 20 s ocial r epo r t This document concerns all the Rocher Group brands: the “laboratoires de Biologie Végétale Yves Rocher”, Petit Bateau, Stanhome, Dr Pierre Ricaud, Daniel Jouvance, Kiotis Paris, ID Parfums, Flomar and covers the activities set up between the 1st of January 2014 and the 31st of December 2014. Some section may include information related to older initiatives. INTRODUCTI ON © Dominique Rolland © Patrick Wallet

he Groupe Rocher acts by way of its brands, its activities and in all that it undertakes both in France Tand internationally motivated by shared values: Being Committed, Respectful, Demanding and Passionate. These values define what we really are: a family group, pioneering, acting with respect for nature and making sustainable development a lever for value creation. I deeply believe in companies. I am convinced that today, more than ever, the company is the best tool we have at our disposal to promote social unity, generate integration and diversity. All companies are there to try to make the world a better place, for everyone. By acting differently, by creating emotion and infusing meaning in every action, the Groupe Rocher is reaffirming its historical commitments to serve this ambition. Once again this year, this CSR Report reveals a picture of concrete 2014 initiatives taken by our Group, all driven by implicated and convinced people within the company. I wish to extend my gratitude and particular thanks to each and every person who has contributed.

Bris Rocher Groupe Rocher President and CEO

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 3 INTRODUCTION © Patrick Wallet

or 50 years, we have attended a fantastic development of population and economic growth. This is not without Fconsequences on the natural circles, the disappearance of animal and vegetable species, on global warming… It is a known fact: human activities harm certainly the planet but accordingly humanity itself. A global awareness to act and create a new mode of long-lasting society is appearing. This society movement is in motion. All of us, citizens of the word and consumers, companies, cities and governments, we need, each at our own level, to participate in this transformation. This is what is at stake during the United Nations Cop21, held at the end of the year 2015 to stop global warming. Our Group, since its origins, carries the deep consciousness of its environmental and social responsibility. Our Group, since its origins, acts for a more sustainable world. We have it in us, it is not about being opportunist, but about taking a position in a long term perspective. As such, since 2008, we have defi ned together a common and shared vision for which social and environmental responsibility is intrinsically linked with growth and value creation. Since 2008, remarkable advances were made thanks to our common sense, thanks to the technological evolution but also to our entrepreneurial spirit. You will fi nd in this document numerous examples showing that we know how to act and we should continue in this direction. Sustainable Development is synonymic of growth, our purpose is to operate within a long-term framework to improve our impact while creating a dynamics within the Group and within every Brand, because we know what our customers want and know they will always want more, more quality, services and consciousness, But also more shared values generating a feeling of community. Our Brands: Yves Rocher, Petit Bateau, Stanhome, Pierre Ricaud, Daniel Jouvance, Kiotis, ID parfums, Flormar, have each, according to their personality, a role to play. Our industrial and tertiary sites, our shared services have, each on their territory, a vocation of mobilization, representation and innovation. In the Group, we are more than 15 000 in the world, carriers of these values. Through our sales networks in stores and in Direct Selling, we are more than 300 000 carriers of these values. We have the extraordinary luck to be in direct contact with more than 40 million women. Up to us to win their hearts. Jacques Rocher Directeur Prospective

EVERYDAY, WE COMMIT 4 2014 corporate social responsibility report - GROUPE ROCHER ROCHER GROUP PROFILE KEY FIGURES 2014

2014 corporate social responsibility report - GROUPE ROCHER 5 © Emmanuel Berthier

“ Within our Brands, our activities and in all that it undertakes both in France and internationally, our shared values are being Committed, Respectful, Demanding and Passionate. ” Bris Rocher

CONTE NTS

■ ROCHER GROUP PROFILE ...... 5 CONTENT ...... 6

■ ENVIRONMENTAL INFORMATION...... 8

GENERAL ENVIRONMENTAL POLICY ...... 9 Company with commitment ...... 9 Historic approach ...... 10 Group policy ...... 11 Summary of the Rocher Group’s environmental performance ...... 12 Provisions and guarantees for environmentally-related risks ...... 13

POLLUTION AND WASTE MANAGEMENT ...... 15 Emissions ...... 15 Waste management ...... 16 Noise pollution ...... 19

Ladies and Gentlemen, In accordance with Article 225-102-1 paragraph 5 and the following of the French Commercial Code, we present below the corporate social and environmental responsibility report of the Yves Rocher Plant Biology Laboratories and its subsidiaries (hereafter the Rocher Group).

6 2014 corporate social responsibility report - GROUPE ROCHER THE SUSTAINABLE USE OF RESOURCES ...... 20 Water ...... 20 Raw materials ...... 22 Eco-design packaging ...... 28 Land use ...... 29 adaptation and fi ght against global warming ...... 31 Measuring greenhouse gas emissions ...... 34 Optimizing the Yves Rocher stores ...... 34 Environmental shipping policy ...... 35

PROTECTION OF BIODIVERSITY ...... 36 Biodiversity strategy at the Group level ...... 36 Biodiversity and supplies ...... 37 agreements on biological diversity, fi ght against desertifi cation, and climate change...... 37

■ SOCIAL RESPONSABILTY ...... 38

ROCHER GROUP’S HUMAN RESOURCES POLICY ...... 39

ROCHER GROUP SOCIAL DATA ...... 40 Employment ...... 40 Organisation of work ...... 43 Labour-management relations ...... 44 Health and safety ...... 45 Training ...... 49 Diversity and equal opportunity ...... 51

■ IMPACT ON SOCIETY ...... 54

REGIONAL IMPACT IN THE AREA OF EMPLOYMENT AND REGIONAL DEVELOPMENT ...... 55 Cosmetics & detergents ...... 55 Textiles ...... 58

STAKEHOLDERS RELATIONS ...... 59 Supplier and subcontractor ecosystem - Cosmetics & Detergents Production ...... 59 Textile supplier and subcontractor ecosystem ...... 65 Sponsorships ...... 65 Relationships with environmental organisations ...... 68

FAIR TRADE PRACTICES ...... 69 Actions undertaken to prevent corruption...... 69 Measures taken in favour of consumer health and safety ...... 70 Respect for international conventions and human right ...... 74

■ METHODOLOGICAL NOTES ...... 76 Environment ...... 77 Social ...... 80 Societal...... 81

CROSS REFERENCE TABLE FOR ENVIRONMENTAL AND SOCIAL INDICATORS ...... 82

YVES ROCHER PLANT BIOLOGY LABORATORIES French sa company with capital of 4,373,602 euros - head offi ce: la Croix des archers - 56200 la Gacilly - 876 580 077 RCs Vannes

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 7 20 ENVIRONMENTAL INFORMATION PLANET RESPECT14 // GROUPE ROCHER © Emmanuel Berthier ENVIRONMENTAL INFORMATION

GENERAL ENVIRONMENTAL POLICY A COMPANY WITH COMMITMENT LOGO PLANET RESPECT

Sustainable development is seen today as an opportunity for the Rocher Group. With support from the highest levels of lBV YR General Management, its principles are conveyed to all the teams in an eff ort to educate and involve all of the Group’s 15,000 employees. The General Management of the Rocher Group has formalized the Group’s policy on responsibility in its internal strategy, named Planet Respect.

One of the pillars of this strategy, called «Action for Since 2007, the Group’s Sustainable Development Nature», aims to break down the following principles Department team has promoted the responsibility and communicate them to all the subsidiaries: policy through a network of business line and brand Sienna representatives thatOrange it organizes on an ongoing ◗ «life cycle» approach for all product of the diff erent basis. The Sustainable Development Department is brands; CMJN CMJN C31 - M30 - J36 - N0 also responsible for:C0 - M60 - J94 - N0 RVB RVB ◗ processes that respect nature; R169 - V130 - B114 R255 - V130 - B0 Hexadécimal ◗ ensuring the GroupHexadécimal Sustainable Development ◗ brands that broadly promote #a98272environmentally policy; #ff8200 friendly behaviour; ◗ promoting, supporting and coordinating ◗ a Biodiversity vision. sustainability projects; For many years, the Rocher Group has applied ◗ dialoguing with the stakeholders; these principles in an eff ort to reduce the overall ◗ promoting actions internally and externally; environmental impacts of its subsidiaries. ◗ evaluating and reporting on the entire process.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 9 HISTORIC APP ROACH 1959 1972 1989 1991

In his native village of The first convention The Yves Rocher Creation of the Yves Rocher La Gacilly, in the Brittany of the young friends brand brings a halt to Foundation - Institut de region of France, Yves Rocher of animals and nature its animal testing France for the protection used plants to develop his is held in La Gacilly and preservation of the very first products (1,500 young people) plant world 1992 1994 1997 1998

Participation of the Yves The first Daniel Jouvance 1st ISO 14001 certification Organic Agriculture Rocher brand at the Earth eco-refills for the Yves Rocher certification of La Gacilly Summit in Rio and the factory in Ploërmel flower fields run by presentation of a petition to Yves Rocher save the Amazon rainforest, signed by 300,000 customers 2005 2007 2008 2009

The “Eco-Design” The Jury prize at the Jacques Rocher is a Petit Bateau Observeur du Design Prize Oxygen Awards for the co-founder of the Natural launched a for Inositol Végétal Rocher Group’s sustai- Resources Stewardship 100% organic nable logistics policy Circle cotton line

2011 2012 2013 2014

Entreprises & Establishment of the 100% of the new vehicles Signature of the New York Environment Prize, Yves Rocher brand’s used by Stanhome Declaration on Forests Biodiversity & Entreprises Biodiversity Strategy France are covered by an at the UN by category ecological bonus the Rocher Group and the Yves Rocher Foundation - Institut de France

10 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

GROUP POLICY

That is how the Yves Rocher Brand can reduce its environmental impact throughout all phases in the lifecycle of its products. > Cosmetics and detergents It is this approach in particular that enables the The Yves Rocher Brand has made a contract with Yves Rocher Brand to reduce its environmental the world of plants. Respect for the environment impact at every stage of its products’ life cycle. is built into the company’s very genes, and it is also its responsibility. A Botanist, Harvester, The four major cosmetics production plants Manufacturer and Distributor, Yves Rocher is (shared by all the Group’s cosmetic Brands - except the only global brand of Beauty products that Flormar) obtained the following certifi cations: chooses to manage all the fi elds in its business. ISO 9001 Quality, ISO 14001 Environment and OHSAS 18001 Safety. Three of them are located in Brittany and one in Cork, Ireland. The site for the joint production of detergents and cosmetics products in Venezuela (Stanhome), while not yet certifi ed, has received investments to meet «Good Manufacturing Practice» (GMP) requirements that guarantee a product’s quality and process and the Group’s environmental standards. Measures were taken long ago to monitor and reduce energy consumption and

© Emmanuel Berthier waste, with water effl uents managed through the site’s treatment plant. Cornfl owers harvest la Gacilly, France

> Petit Bateau brand The Petit Bateau brand is working at all its manufacturing sites to minimize its environmental impact. The main actions being taken include: ◗ the treatment of dyeing effl uents by preprocessing Summer 2015 collection- Petit Bateau stations; ◗ the recycling of industrial waste by specialists in the The brand’s two production facilities are located trade; in France (Troyes) and in Morocco. The lean management approach initiated in 2013 on its ◗ the fi ght against the release of harmful substances industrial sites was continued in 2014. It aims to through selection of the dye products; further the actions already underway by helping ◗ the reduction of water consumption/kg of knitwear to reduce the output of waste and cut water and treated by optimizing the dye bath ratios. energy consumption, among other things.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 11 AXE 1 - PICTOS ASSOCIÉS AXE 1 - PICTOS ASSOCIÉS AXE 1 - PICTOS ASSOCIÉS

ENVIRONNEMENT SOCIAL POLITIQUE SOCIÉTAL ENVIRONNEMENT SOCIAL POLITIQUE SOCIÉTAL ENVIRONNEMENT SOCIAL POLITIQUE SOCIÉTAL

SU MMAR Y O F T HE ROCHER GROUP’S EN VIRONMENTAL PERF ORMANCE énergie Santé, sécurité & ergonomie Approvisionnement respectueux Actions citoyennes énergie Santé, sécurité & ergonomie Approvisionnement respectueux Actions citoyennes énergie Santé, sécurité & ergonomie Approvisionnement respectueux Actions citoyennes 21 % 19 % reduction in the water consumption of cosmetics reduction in the Group’s manufacturing between gross consumption between 2010 and 2014 WATER MANAGEMENTEau 2010 and 2014 (m³ /D toniversité of & égalité des chances manufactured bulk) BIODIVERSITY Eau Diversité & égalité des chances Diversité & égalité des chances BIODIVERSITY TRANSVERSE Eau BIODIVERSITY TRANSVERSE TRANSVERSE 93,9 % 26 % 19 % reduction in the of the Group’s reduction in waste from cosmetics the Group’s WASTE MANAGEMENT waste was reused manufacturingSalariés engagés between éco-conception Good practices AXE 1 - PICTOS ASSOCIÉS or recycled in 2014 waste between WASTE MANAGEMENT 2010Salariés and 2014 engagés 2011 and 2014 éco-conception Good practices WASTE MANAGEMENT (gSalariés of waste/ engagés end product) éco-conception Good practices

ENVIRONNEMENT SOCIAL POLITIQUE 15 % SOCIÉTAL3 % Objectifs 2020 CLIMATE CHANGE reduction in the Group’s reduction in the Group’s charte plantes Objectifs 2020 CLIMATE CHANGE energy consumption between greenhouse gas emissions charte plantes Objectifs 2020 CLIMATE CHANGE 2010 and 2014 between 2013 and 2014 charte plantes

énergie Santé, sécurité & ergonomie Approvisionnement respectueux Actions citoyennes La Gacilly welcomed % 2,600 visitors 100 who took part in 160 events of the Rocher Group’s around the theme of biodiversity French industrial sites are during the summer of 2014 now “Biodiversity Refuges”. Seventy hectares of preserved A magnificent diversity: Diversité & égalité des chances Eau BIODIVERSITY environment are now areas 64 species of birds and where wild fauna and flora are TRANSVERSE49of butterflies have protected been identified

What the following indicators cover is explained in the methodological note on page 78.

WASTE MANAGEMENT Salariés engagés 12 2014 corporate socialéco-conception responsibility report - GROUPE ROCHER Good practices

Objectifs 2020 CLIMATE CHANGE charte plantes ENVIRONMENTAL INFORMATION

PROVISIONS AND GUARANTEES FOR ENVIRONMENTALLY-RELATED RISKS

At this point, the Group companies do not have any provisions or guarantees for risks related to the environment. In the 2014 fi scal year, no Group company paid compensation pursuant to a judicial decision concerning the environment, and there were no legal actions to repair any damage caused to it.

> Resources devoted Since 2014, the Group training programme in «Key to environmental risks Cosmetics Skills» has included a Raw Materials module, which deals with the environmental The certifi cates mentioned in the Group Policy and social commitments of the Group’s Brands, are helpful in preventing environmental risks. The responsible sourcing for our raw plant materials, and same standards as those required in the certifi ed regional anchoring and development using what is European plants are applied in the Venezuelan grown at La Gacilly. production site and verifi ed by the operations Department. In addition, for over 20 years, «Green Days» are held each year on most Rocher Group sites in order to raise employee awareness about a sustainable development issue. Each site holds events in a fun and friendly spirit, in line with the theme defi ned by the sustainable Development Department of the Yves Rocher Plant Biology Laboratories (Yves Rocher LBV). In 2014, the theme chosen was «sustainable innovation», the aim being to raise employee awareness of the fact that the ultimate environmental and social impact of any product or service is taken into account when it is fi rst designed.

Production area- Villes Geff s site, la Gacilly, France

> Training and awareness-raising about sustainable development For employees Campaigns to raise awareness are conducted on the Group’s sites, particularly with regard to waste: in the offi ces and canteens, to encourage employees to sort and cut down on waste; and in the cosmetics production facility located in Rieux, in Brittany, which employs 400 people, in order to introduce a training module for all newcomers about sorting waste. Green Day 2014, Rieux, Morbihan

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 13 In 2014, the Ecodesign working group began a tour of the Group’s sites as part of the «ECO-TUBE TOUR». This tour has presented more than 1,600 employees in 7 different sites the 2014 Ecodesign Innovation (awarded best innovation - silver medal - at the CSR Awards in November 2014): the Yves Rocher brand KARITE Expert Repair tube, equipped with a new capsule with 25% less plastic. Regular activities were conducted to raise employee awareness at every site involved in the «Refuge for Biodiversity» effort (discovery of nature and of the biodiversity conservation approach), which involved members of France’s Bird life international (“LPO”). In Rieux, for example, there were communications about the site’s biodiversity: the species planted the flora and the fauna. Employees were also involved in planting 230 trees of various species in partnership

© Emmanuel Berthier with a voluntary organisation for the preservation of fruit trees, called the «Fruit Heritage of the Vilaine region». As our new Group building built in Issy-les- ◗ At the Grenelle commercial site in Issy-les- Moulineaux has acquired Refuge classification, an Moulineaux, 600 employees enjoyed a variety of event was held there to enable employees to discover events for 2 days: an eco-driving simulator, a test the bird protection group: a facilitator presented the of electric cars, a light-hearted workshop on the Refuge approach and raised employee awareness life cycle of waste, and the sale of eco-designed through the use of games about fauna and flora. water bottles. A visit to the Isséane central sorting and incineration unit was also organised in Issy-les- For beauty consultants Moulineaux. The Yves Rocher brand rolled out a new ◗ At the Stanhome Italy commercial site, an eco- programme for integrating its beauty advisors, drinks waste compactor was installed and called the “Cours de la Cosmétique Végétale®” information was provided about carpooling for 75% (Botanic Cosmetics Course). This one-day training of the site’s workforce, while toys were collected uses an e-Learning platform for the France and for the Peter Pan Association. international teams and contains a training module dedicated to the brand’s Sustainable ◗ At all the Brittany sites, clothing drives were held Development activities and a presentation of the for Emmaüs and Le Relais from September to end Yves Rocher Foundation. November 2014. Employees donated a total of 1609 kg of clothing. This has helped the efforts of As part of opening a new Dr Pierre Ricaud shop both the Emmaus Community in Vannes and the Le in September 2014, an ergonomics audit was Relais social inclusion agency. conducted in order to ensure the well-being of the employees and clients. A guide to good posture ◗ At the Petit Bateau site in Murard, a day was and gestures was developed for the advisors organised during European Mobility Week to so that they can avoid the onset of pain due to present alternative travel possibilities to staff prolonged poor posture. (electric vehicles, carpool platforms, etc.). ◗ In Madrid, about thirty Yves Rocher employees took part in the solidarity «Eco run» for the environment. A contest was held on the Group’s intranet to collect video testimonials from employees on how they make sustainability innovations in their daily work. This video, in French with English subtitles, was shown internally (internal screens and networks) to promote sustainability initiatives. Dr Pierre Ricaud shop

14 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

POLLUTION AND WASTE MANAGEMENT

AXE 1 - PICTOS ASSOCIÉS ÉMISSIONS

ENVIRONNEMENT SOCIAL POLITIQUE SOCIÉTAL

énergie Santé, sécurité & ergonomie Approvisionnement respectueux Actions citoyennes © Sophie Zénon

Cosmetic production site, les Villes Geff s, la Gacilly, France

> Air emissions station in Tenmar (Morocco). All sites control the COD of the wastewater, and there was no see the chapter adaptation and fi ght against violation of COD standards on the discharge of global warming. effl uents into the natural environment in 2014. > Wastewater > Ground pollution Diversité & égalité des chances Water management is a major concern for both The Rocher Group’s activities are not likely to Eau the BIODIVERSITYRocher Group’s cosmetics business and its release substances into the ground that could textile business. One of the Group’s priorities is harm the environment. to control the quality of both its wastewater and TRANSVERSE its facilities in order to avoid polluting the water in the natural environment. Four industrial production sites are equipped with their own wastewater treatment plants (physico chemical and biological treatment), and four sites are equipped with a pre-treatment plant (physicochemical) in order to treat the wastewater in the industrial processes. These sites are connected to a municipal treatment WASTE MANAGEMENT Salariés engagés plantéco-conception and are therefore not responsible for the Good practices fi nal Chemical oxygen Demand (CoD) prior to discharge into the natural environment. Establishment of an automatic dye kitchen in Troyes for the Petit Bateau There were signifi cant investments in 2012 and 2013 production site, which has helped to in treatment plants for the sites in Rieux (Brittany) reduce emissions of dye byproducts. and Cork (Ireland) and for the pretreatment

EVERYDAY, WE COMMIT Objectifs 2020 CLIMATE CHANGE charte plantes 2014 corporate social responsibility report - GROUPE ROCHER 15 THE GROUP HAD CUT ITS WASTE BY 19% SINCE 2011

WASTE MANAGEMENT

The Rocher Group’s waste management policy aims to raise employee awareness about sorting in order to reduce the amount of waste generated by its activities and to direct a growing share of its waste to recovery facilities. In 2014, 13,046 tonnes of wastes were generated by the Group, including: ◗ 3,773 tonnes of composting sludge; ◗ 8,433 tonnes of non-hazardous waste (NHW); ◗ 840 tonnes of hazardous industrial waste (HID); On a like-for-like basis, the Group had thus cut its waste by 19% since 2011.

BreAKDOWn BY TYpe Of WASTe rOcHer GrOup – like-for-like perimeter

65 %

35 %

5 %

HID NHW SLUDGE

2011 2012 2013 2014

What the following indicators cover is explained in the methodological note on page 78.

16 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

> Reductions at source As part of its botanical business, the Yves Rocher brand encourages its partners to recycle their co- products or waste as fuel to run their processing equipment. In Burkina Faso, Shea cake produced from the butter press is reused to heat almonds before they are pressed into butter; it’s provided to women with improved ovens (replacing the wood usually used for preparing meals); and it is also currently the subject of composting trials for use in gardening in neighbouring villages. The reuse of these co-products, which avoids the cutting and use of fi rewood, helps the Yves Rocher brand to reduce its impact on climate change (see adaptation and fi ght against global warming). The Rocher Group also seeks to limit the waste generated by the consumption of these products by its customers. This will be discussed in the section on eco-design. > Cooperation strategy A joint monitoring and reporting system was set up for the various industrial sites in Brittany to assess the environmental performance of waste management. This more centralized management system enables the sites to fi nd common solutions for cutting waste and reducing the impact of transporting waste, as well as for waste sorting arrangements.

Biodegradable cushioning for expedition packages, La Croix des Archers, La Gacilly, France

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 17 AXE 1 - PICTOS ASSOCIÉS > Waste reduction policy Between 2010 and 2014, the production of waste per product manufactured decreased by 26% in the main cosmetics production sites. Several projects are conducted every year to reduce the materials needed by logistics and by processing at the industrial sites. The tertiary sites are targeting the reduction of major consumables, such as paper. WASTe perfOrmAnce InDex – cOSmeTIcS prODucTIOn ENVIRONNEMENT SOCIAL POLITIQUE SOCIÉTAL

énergie Santé, sécurité & ergonomie Approvisionnement respectueux Actions citoyennes > Landfill At the Group level, the portion of waste that was used, recycled or reused came to 93.9% in 2014. Only 6% of waste went to landfill, and 59% of sites did not send any waste to landfill.

PORTION OF WASTE THAT WAS USED, RECYCLED OR REUSED ROCHER GROUP 93,1 % 93,3 % 91,9 % 93,7 % 93,9 % Diversité & égalité des chances Eau BIODIVERSITY 2010 2011 2012 2013 2014 TRANSVERSE > Recycling 4519 tonnes of waste, i.e. 41% of the Group’s waste, was recycled in 2014. Main recycled wastes include cartons, pallets and paper. Some other recycled waste is more specific to each site. The industrial sites are constantly on the WASTE MANAGEMENT Salariés engagés éco-conceptionlookout for new recycling systems that Good practices are suitable for their waste. At the cosmetics production sites in Brittany, new outlets have been identified for thermoformed shells (used for the supply of packaging materials) which makes for better re-use. At Troyes, the Petit Bateau production site has set up a compactor for its plastic waste which has reduced the number of trucks used to collect the waste by a factor of height.Objectifs 2020 CLIMATE CHANGE charte plantes

18 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

> Reuse The reused waste mainly concerns cardboard trays from the production of cosmetics. For several years now, the cardboard used in the supply of fi nished products from the cosmetics production sites has been sorted on the French distribution site, La Croix des archers, and then sent back to the production sites for reuse. Some Stanhome sites and cosmetics production sites also recycle the packaging waste from their suppliers. > Valorisation Recovery sludge produced by the waste water treatment plant located on the Group’s industrial sites is composted. This represents about 3,773 tonnes, i.e. 34% of the Group’s total waste. 9% of the Rocher Group’s waste is also used to produce energy.

NOISE POLLUTION

Work was carried out in 2014 on the site that exceeded noise limits in 2013. Today all sites comply with the noise standards that they are governed by and so do not have to deal with specifi c problems or issues on the part of their employees and / or their neighbours. When necessary due to the noise volume, employees © Christophe Urbain are informed of the protocols to follow and are equipped with the appropriate protective gear Petit Bateau production site, Troyes, France and an area for visitors is clearly marked.

SHARE OF VARIOUS WASTE REMOVAL MEANS ROCHER GROUP on like-for-like perimeter

60 %

40 %

20%

0 % landfi ll Incineration Recycling Reuse Use as energy Use as sludge

2010 2011 2012 20103 2014

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 19 AXE 1 - PICTOS ASSOCIÉS

ENVIRONNEMENT SOCIAL POLITIQUE SOCIÉTAL

énergie Santé, sécurité & ergonomie Approvisionnement respectueux Actions citoyennes

Diversité & égalité des chances THE SUSTAINABLE USE OF RESOURCES Eau BIODIVERSITY

WATER TRANSVERSE

What the following indicators cover is explained in the methodological note. Water is at the heart of the Rocher Group’s businesses: as raw material for cosmetics and cleaning products, water is vital to our activities. In 2014, 465,281 m³ of water was consumed on all sites to power the production process and meet employees’ health needs. WASTE MANAGEMENT Salariés engagés On a like-for-like basis, this was 19% less than in Good practices éco-conception2010. Water management is a key concern at the Group’s sites, and a great effort is made every year to reduce or optimize consumption. Between The Villes Geffs site undertook a 2013 and 2014, 60% of the sites reduced their project to reduce multiple washes consumption of water. in its NEP (on-site cleaning) process, The major source of the Group’s water consumption which has already led to a reduction in water and energy consumption. is the production of textiles (49%), followed by the Just under 10% of the water used production of cosmetics and detergents (43%). in this process was saved in 2014. The water needed for the production of cosmetics Significant results are expected for 2015. was cut from 2010 to 2014 by 21% (m³ consumed / Objectifs 2020 CLIMATE CHANGE ton of bulk product). The main source of On the Stanhome Italy commercial consumptioncharte plantes is the cleaning of the manufacturing site, in 2015, fire protection will be and packaging facilities, which is essential for provided by a water well and not compliance with hygiene regulations. All the sites drinking water, which will enable concerned are working to optimize and adapt the subsidiary to save approximately automatic washing facilities. 500,000 liters of drinking water per year.

BREAKDOWN OF THE ROCHER GROUP’S WATER USE IN 2014

3 % 5 %

Cosmetics and detergents production

Textile production 49 % Distribution

43 % Other

20 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

> Water management is a key concern at the Group’s sites The production of textiles consumes water mainly BETWEEN 2013 for the dye baths and the heat setting procedures. To reduce water consumption, Petit Bateau is AND 2014, 60% making innovations in its technology in the dyeing OF THE SITES service and is investing in dyeing machines with a lower liquor ratio. Recent years have seen work REDUCED THEIR done on the water systems and to cut waste (repairing leaks, promoting employee awareness). CONSUMPTION OF WATER

> Sources of consumption Most sites are supplied by their local municipal Nor are any of the Group’s production plants system. The Petit Bateau sites Tenmar in Morocco located in an area of absolute stress on the water and Troyes in France use water pumped directly supply (1). While the Tenmar factory in Morocco is from the groundwater with the agreement of the located in a water stress area (2), all the other sites local authorities. No source of water supply has are located in areas where there is a suffi cient or been signifi cantly impacted by a site’s water use. even abundant supply of water.

The Walkway, La Gacilly, France

(1) Renewable water resources of less than 500 m³ per person per year (Source: Global Water Tool 2009 - 3) (2) Renewable water resources of between 500 m³ and 1,000 m³ per person per year (Source: Global Water Tool 2009 - 3)

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 21 RAW MATER IALS Y VES R OCHER > Cosmetics and detergents P LANTS CHARTE R The raw materials policy at Yves Rocher All Yves Rocher brand products are designed from THE YVES ROCHER BRAND plants: DEFINES OUT RULES ON PLANTS ◗ all the products contain plants that are specially IN ITS PLANTS CHARTER THAT studied and selected for their cosmetic properties; MUST BE ABIDED BY ALL ITS ◗ many botanical active ingredients present in Yves In-housE TEaMs anD all ITs Rocher products are exclusive creations that arise PARTNERS. from research and have a patent; ◗ Yves Rocher neither uses nor promotes tests on The rules include the following actions: animals, whether for finished products or the ◗ Protecting endangered species; ingredients that they contain. ◗ Promoting the use of cultivated plants or Due to the specific features related to the management of plant materials and their regenerative plant parts; geographical origins (high seasonality, potential ◗ Refusing to incorporate genetically diseases, geopolitical events, supply management modified plant ingredients; and quality control, dependence on upstream producers, control of environmental and social ◗ Developing activities certified by the issues, etc.), we have implemented a Plants Charter French Organic label “Agriculture and a system to monitor the world of plants. Biologique”. © Dominique Rolland

Shea nuts- Burkina Faso, Africa

22 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

The Yves Rocher brand thus organizes its management approach to the botanical supply chains around 3 core values: Supply, Protect and Share. Audits and assessments are conducted, mostly by Yves Rocher teams in the fi eld, but they can also be performed on the basis of an initial self- assessment by the supplier partners. These audits are used to set up coordinated actions between Yves Rocher and its supplier partner in order

© Emmanuel Berthier to improve and strengthen the supply chain Cornfl owers fi eld, la Gacilly, France wherever necessary. In the fi rst four years following the implementation > Botanical sectors at Yves Rocher of the position of Coordination of Botanical supply, Yves Rocher wants to ensure that there is thorough 30 plants were audited in 16 diff erent countries. knowledge and traceability concerning the plants Steps were taken at every stage in these rights used in its products, their harvesting and their up to our Yves Rocher factories in order to render use as cosmetic ingredients. The brand selects its the use of plant raw materials more effi cient. plants from La Gacilly but also from around the These improvements included specifi cations for world. The brand employs an ambitious procedure harvesting or cultivation, quality controls at all the targeting continuous improvements based on the relevant stages, optimizing storage areas and the sustainability of its plant sectors for all its supplies. FIFO system, adapting container sizes, making use of byproducts, etc.

Argan tree fruit, Morocco

The Yves Rocher brand uses about 250 plant materials , each linked to a supply chain. The Yves Rocher brand thus has an overview of its entire portfolio of botanical raw materials, and its commitments and management procedures are adapted to the needs of each category of material. A botanical supply chain refers to the continuous chain involved in using a plant raw material from a given geographical area. A supply chain depends on a closely linked network of established partners. It aims to ensure the traceability and quality of the raw material at every stage of processing right to © Dominique Rolland the end product. Organic Chamomile harvest - La Gacilly, France

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 23 EXAMPLES OF ACHIEVEMENTS

> Organic fair trade Argan oil after a comprehensive field study, the choice of the supply was made based on common values with the Since September 2013, Yves Rocher has Group: the preservation of trees, fair pay, and respect sourced its organic-certified fair trade for the traditional skills of women. The women are Argan oil in Morocco. involved in manually gathering, crushing and sorting fruits from which the oil is extracted, which is mainly used in the «Tradition de Hammam» range of Yves Rocher brand. This painstaking process is crucial to ensure the exceptional quality of the Argan oil.

Argan oil traditional production, Morocco, Africa

The activity is spread over a number of surrounding villages and gives hundreds of women (and many families) access to ongoing work that is fairly paid.

> Organic Andiroba oil, emblem of our commitment to traceability and sustainability For its Andiroba oil, which is a Beautifying Dry Oil from the Yves Rocher brand, the Group has used a Brazilian supplier that has strong values and shares the Group’s approach. The harvest of the Andiroba seeds is performed by men and women from northeastern Brazil, who are organized in cooperatives and voluntary groups.

Andiroba nuts, Brazil, South America

It is performed very early in the morning on the banks of the Amazon, after the river has deposited the seeds. Importance is given to the sustainability of the sector, the involvement of the communities and the transfer of expertise and added value to them.

24 2014 corporate social responsibility report - GROUPE ROCHER AXE 1 - PICTOS ASSOCIÉS

ENVIRONMENTAL INFORMATION

ENVIRONNEMENT SOCIAL POLITIQUEIN 2014 YVES ROCHER BRANDSOCIÉTAL AND THE GOVERNMENT OF MADAGASCAR SIGN A PRIOR INFORM CONTENT (PIC) IN APPLICATION OF THE NAGOYA PROTOCOL

énergie Santé, sécurité & ergonomie Approvisionnement> profi t Sharing respectueux Actions > Palm oil As for the “Sharing» aspect of the process, since As LBV YvesActions Rocher is wellcitoyennes aware of the potential 2007, LBV Yves Rocher has undertook action environmental and social issues related to the and committed fi nancing for facilities with local production of palm oil, it has been making a partners. In order to structure this process, for thorough review of this sector for many years. 5 years, a specifi c budget dedicated to what are Since 2010, LBV Yves Rocher has been a member called «sharing» actions has been set up to share of the Roundtable on Sustainable Palm Oil (RSPO), the benefi ts of the facilities’ use with the supplier an international roundtable for sustainable countries and populations. Three types of projects palm oil, and exclusively supplies itself with SG are being given support: the preservation of RsPo certifi ed palm oil (segregated), based on a biodiversity; the improvement of living conditions; continuing progress approach. and, the main one, economic development of the Diversité & égalité des chances To take its commitments even further, since 2011 Eau supply chain. These projects are a priority because BIODIVERSITY LBV Yves Rocher has partnered with Paneco they are win-win: their aim is to achieve more value NGO in Indonesia for the planting of oil palms added locally, higher volumes, an improvement in TRANSVERSE using organic farming on land degraded by quality and thanks to all this the empowerment of deforestation, with small independent producers. the local partner. Finally, since 2012, the Yves Rocher brand has been For example, in the Shea and sesame sectors LBV working on a strategy for palm derivatives. Three Yves Rocher is supporting the industrial develop- workshops were organised as part of the Natural ment of a Malagasy partner, as well as its Malian and Resources Stewardship Circle (NRSC) with all of Burkinabe partners. the suppliers so as to work with them to progress towards solutions derived from sustainable This long process is built through interaction with sources. WASTE MANAGEMENT Salariés engagés representatives of the local population as well Good practices aséco-conception with UN authorities (Convention on Biological Diversity) and in late 2014 led to signing a Prior Inform Content (PIC) contract between the Yves Rocher brand and the Government of Madagascar. This contract, a pioneer in this area, as it is the fi rst PIC contract for Madagascar under the Nagoya Protocol signed in 2010 by the members of the un, refl ects Yves Rocher’s pioneering strategy in the fi elds of biodiversity and its capacity to co- construct new forms of interaction with the public authorities and government administration. Objectifs 2020 CLIMATE CHANGE charte plantes The Group’s objective in 2020 is to have 100% of oil and palm derivatives coming from sustainable sources, with no deforestation.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 25 PETIT BATEAU’S RAW MATERIALS PURCHASING POLICY IS BASED ON THE QUALITY OF THE FINISHED PRODUCT

> Textiles Petit Bateau’s raw materials purchasing policy is The mills are known and visited by Petit Bateau based on 3 points: teams, as are some of the cotton fields. Petit Bateau’s need for top quality and its high rate of light colours ◗ quality of the threads and fibres used; requires the use of cotton from industrialized crops, ◗ economic criteria: price and capacity; which can be taken from GMO farms. Sustainable or even organic cotton crops can be exploited only ◗ longevity of the supplier, sustainability, equipment, at the margins, as there is no guarantee of the procedure. regularity of the technical properties of these fibres. The geographical origin and the process of harvesting the fibres used are familiar to Petit Bateau’s buyers and technicians, because they have a strong impact on the yarn’s final quality and the knitting of the finished products. The high quality of the yarn provides a solid guarantee that the finished products are long-lasting, a quality that is dear to Petit Bateau. © Christophe Urbain

Knitting spool, Petit Bateau, Troyes, France

26 2014 corporate social responsibility report - GROUPE ROCHER AXE 1 - PICTOS ASSOCIÉS

ENVIRONNEMENT SOCIAL POLITIQUE SOCIÉTAL

ENVIRONMENTAL INFORMATION

énergie Santé, sécurité & ergonomie Approvisionnement respectueux Actions citoyennes

Diversité & égalité des chances Eau BIODIVERSITY

TRANSVERSE © Emmanuel Berthier WASTE MANAGEMENT Salariés engagés éco-conception Good practices

> Paper The Group’s activities (including distance selling) make it a major consumer of paper (about 18,543 tonnes in 2014). Since 2007, work was carried out by central purchasing with paper suppliers (mainly European) to ensure the renewability of the resource; hence more than 95% of the pulp is now FsC or PEFC certifi ed(3) . As for printing paper, the Papyrus project, Objectifs 2020 CLIMATE CHANGE launchedcharte in 2012,plantes has helped to modernize the fl eet of printers, copiers, scanners and fax machines. In 2014, the project led to a 19% reduction in the The Group’s objective for 2020 is number of pages printed since the start of the to have 100% cardboard and paper project. The ratio of colour / black and white has (all uses: mailings, books, offi ce, also decreased, from 30% to 28.5%. Thanks to this packaging) from sustainably project, about 94 tonnes of offi ce paper has been managed forests. saved.

(3) The Forest stewardship Council (FsC) and the Programme for the Endorsement of Forest Certifi cation (PEFC) are environmental labels, which ensure that the production of wood or a wood-based product has complied with procedures ensuring sustainable forest management.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 27 AXE 1 - PICTOS ASSOCIÉS

ECO-DESIGN PACKAGING

ENVIRONNEMENT SOCIAL > YvesPOLITIQUE Rocher SOCIÉTAL For the Yves Rocher brand, eco-design packaging is a way of thinking diff erently, based on Innovation, Creativity and Desirability. The emphasis is on the use and pleasure values. The two cornerstones of this approach are: REDUCE the consumption of renewable resources by reducing the weight of packaging and incorporating énergie Santé, sécurité & ergonomie Approvisionnementrecycled raw materials. respectueux Actions citoyennes RECYCLE by designing recyclable packaging within the existing sectors and encouraging customers to sort their packaging. To support the teams involved in product development, for the last 4 years the Yves Rocher brand has developed “eco-design packaging guidelines”. This tool is updated annually and is shared by the teams from marketing, purchasing, development and R & D. It sets out rules and Diversité & égalité des chances guidelines for eco-design packaging for all products Eau in theBIODIVERSITY Green Book of Beauty. 160 people were directly trained in eco-design between 2012 and 2014, and any newcomer to the TRANSVERSE above-mentioned teams routinely receives this training. Today all cosmetics products in the Green Book of Beauty go through an eco-design approach.

WASTE MANAGEMENT Salariés engagés éco-conception Good practices

In 2014, the new Ecotube was launched within the Expert Repair range for a certifi ed organic fair trade Shea butter this tube uses 25% less plastic. This savings was made through the use of an innovative service capsule. Extending the Ecotube to other productsObjectifs will lead 2020to saving 10 CLIMATE CHANGE charte plantes tonnes of plastic in 2015.

28 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

KEY FIGURES FOR 2014

Yves Rocher products already contain plastic from recycled bottles (PET), i.e. a target of 97 tonnes of virgin plastic to be saved in 2015. The Yves Rocher brand has set itself a target of including recycled PET 51 in 50% of its PET packaging by 2015.

88 % 100 % of the cardboard used in Yves Rocher of Yves Rocher face care packaging is certifi ed as coming from jars will be in glass, and sustainably managed forests. The goal thus recyclable, by the has been set at 100% for 2020. end of 2016.

> Textiles Petit Bateau has launched an eco-design approach. Since 2014, the new eco-packaging charter has For the moment this involves a limited part of been affi xed to all CD boxes, gift boxes and paper the packaging, but it is being applied as quickly as bags. This charter encourages the consumer to sort possible: more clearly (disposable plastic hook, recyclable cardboard box, etc.). ◗ the media used for the «hangtags” (4) and cardboard packaging of boxed products is recyclable. These are produced from cardboard made from wood from sustainably managed forests; ◗ the protective window is not stack to the box and is made of cellulose acetate, which is made from wood. The white colour of the boxes is obtained without the addition of chlorine; ◗ the printing inks are plant-based and are authorized for food contact, and the adhesives do not use solvents; ◗ there is limited use of plastic (mainly hangers and sachets) and a refusal to use PVC (for example,

the gift cards are not PVC plastic but composite © Christophe Urbain paperboard). Clothing manufacture, Petit Bateau, Troyes, France

(4) Removable label specifying the composition of an item.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 29 LAND U SE

> Impact of Yves Rocher activities on land use The impact on the soil is a concern that is at the heart of the Yves Rocher brand’s Biodiversity strategy. The first significant action was the conversion to organic farming of 55 ha of fields in la Gacilly in 1997, which was awarded certification in 1998. The “Plant Charter» and the botanical supply chain approaches around the world have also encouraged partners to grow their plants organically. Moreover, support from the Yves Rocher Foundation- Institut de France for planting 8 million trees in 2014 has put an area of approximately 8,000 ha to use. © Michel Cambornac organic agriculture fields, la Gacilly, France

> c ontribution to adaptation and the fight against global warming What the following indicators cover is explained in the methodological note on page 45. The Group has not identified any major immediate risks from its business related to climate change. Protecting Biodiversity is nevertheless a clear challenge for the Group, which is committed to this cause (cf. Protection of Biodiversity). Well aware of the challenges associated with climate change and its responsibility as an industrial, the Rocher Group is working to reduce its greenhouse gas emissions (GhGs). The main fields of activity include improving energy efficiency and the search for alternatives to fossil fuels on its sites. The fight against climate change also involves the selection of raw materials, the reduction of their use, and the recycling of packaging (see Ecodesign packaging). © Dominique Rolland

organic Cornflowers harvest- la Gacilly, France

30 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

ADAPTATION AND FIGHT AGAINST GLOBAL WARMING

> Reducing dependence on fossil fuels Improving energy effi ciency The Rocher Group is reducing its energy consumption in order to minimize its impact on climate change. In 2014, the Rocher Group consumed 90,474 MWh on its sites (excluding stores), or 83,837 MWh on the like for like perimeter.

enerGY cOnSumeD (mWH) BY THe rOcHer GrOup’S InDuSTrIAL AnD SerVIce SITeS (excluding retail stores) on like-for-like perimeter

2014 83 837 2013 90 595 2012 91 174

2011 91 156 MWh 50 000 60 000 70 000 80 000 90 000 100 000

ENERGY CONSUMPTION 90,474 ENERGY CONSUMPTION PER BRAND by type of energy used Rocher Group (mWH/Yr) 2014 4% % 54,924 7

29,860 19% 42%

2,695 2,996

% Flormar 28 Stanhome Petit Bateau Yves Rocher General total

Electricity Natural gas Other gas Fuel oil Firewood

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 31 AXE 1 - PICTOS ASSOCIÉS

ENERGY EFFICIENCY OF COSMETICS PRODUCTION – like-for-like perimeter

2014 100

ENVIRONNEMENT SOCIAL 2013POLITIQUE 104 SOCIÉTAL 2012 107

2011 111

2010 115

2009 116 Wh/end product

90 95 100 105 110 115 120 énergie Santé, sécurité & ergonomie Approvisionnement respectueux Actions citoyennes

The cosmetics production (which represents The sites gradually are eradicating greenhouse gas 40% of the Group’s total energy consumption) refrigerants such as CFCs and HCFCs (5), replacing improved its energy effi ciency by optimizing the the cooling units with newer models. energy consumed by industrial workshops and Work projects are also being carried out on the by investing in more fuel-effi cient equipment. repair of lighting, the automation of heating Between 2009 and 2014, the improvement was systems (operation only if employees are present, 14% (Wh / fi nished product). off on weekends, installation of thermostats, etc.) Diversité & égalité des chances and the renewal of air, always with the aim of Eau BIODIVERSITY reducing energy consumption.

TRANSVERSE

WASTE MANAGEMENT Salariés engagés éco-conception © Sophie Zénon Good practices Rieux production site, Morbihan, France

Thermal insulation to prevent heat At the industrial sites, investments are made loss. each year to purchase more energy-effi cient equipment or to adapt the industrial processes In 2014, the Rieux site replaced a in order to optimize their consumption. The 20 m³ uninsulated hot water tank industrial processes are also regularly audited by by a 6 m³ thermo insulated tank. external providers so as to identify possibilities for The thermal insulation was then reductions and to develop good practices. extended to the valves and the entire steam network. Objectifs 2020 CLIMATE CHANGE charte plantes

(5) CFC: Chlorofl uorocarbons, hCFC: hydro chlorofl uorocarbons

32 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

20% OF THE ELECTRICITY CONSUMED IN THE GROUP IS ELECTRICITY FROM RENEWABLE SOURCES (6% MORE THAN IN 2013) © Dominique Rolland

Wood fuelled-boiler, La Croix des Archers, La Gacilly, France

> Renewable energy The industrial sites are also involved in the The two main cosmetic distribution sites in Brittany fi ght against global warming by reducing their are now equipped with wood boilers (installed in consumption of fossil fuels in favour of renewable 2011 and 2014, respectively), which now provide heating for 950 employees from renewable energies. Thus 20% of the electricity consumed in energy. The emission of about 1,600 tonnes of the Group is electricity from renewable sources CO2e will now be avoided annually following the (6% more than in 2013), with suppliers on some replacement of the gas boilers. sites selected on the basis of this criteria. The use Thus 13% of the energy used by the Rocher Group of fuel oil is marginal and being reduced, often by is from renewable sources. being replaced by natural gas.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 33 MEASURING GREENHOUSE GAS EMISSIONS

The greenhouse gas emissions of the Rocher Group came to 19,194 tCO2 equivalent in 2014. They are mainly due to fossil fuel consumption for heating the buildings and the water to clean the industrial sites, as well as to electricity consumption:

GHG emissions in tCO2e on the ISO perimeter - Rocher Group 2013 2014 Trends 2013 / 2014 Direct emissions of the sites 11,393 10,073 -12% SCOPE 1 Direct emissions of the automobile stock 1,702 1,934 14% DIRECT EMISSIONS 13,095 12,006 -8% Indirect emissions of the sites 5,458 4,050 -26% SCOPE 2 Indirect emissions of the Yves Rocher stores 955 920 -4% INDIRECT EMISSIONS 6,413 4,970 -23% TOTAL EMISSIONS ON ISO SCOPE 19,508 16,976 -13%

Total GHG emissions in tCO2e - Rocher Group 2014 Direct emissions of the sites 10,566 SCOPE 1 Direct emissions of the automobile stock 1,934 DIRECT EMISSIONS 12,499 Indirect emissions of the sites 5,494 Indirect emissions of the Yves Rocher stores 920 SCOPE 2 Indirect emissions of the Petit Bateau stores 280 INDIRECT EMISSIONS 6,695 TOTAL GROUP EMISSIONS 19,194

OPTIMIZING THE YVES ROCHER STORES

The Yves Rocher stores are being gradually fl oors). In addition, these stores have signifi cantly transformed into Botanical Beauty Ateliers reduced their waste by using new advertising (Ateliers de la Cosmétique Végétale®), a unique media from renewable resources (cardboard). concept created in 2009, one of whose objectives is to reduce the impact of the stores on climate change. In France, the air conditioning, lighting and appliances in these stores have been optimized to reduce the annual energy costs by 25%. In 2014, the stores in France consumed 15,337 MWh and emitted 920 tCO2e. In order to preserve biodiversity, the materials used in the Botanical Beauty Ateliers have been carefully chosen both for their ecological qualities (wood furniture from sustainably managed forests) and for their ease of recycling at end of life (easily disassembled furniture and laminate Atelier de la Cosmétique Végétale® - Gran Via - Spain

34 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

Seventy-three tonnes of plastic are thus saved each year in France. Approximately 96% of the stores will have been transformed into Botanical Beauty Ateliers in France by end 2015, with the goal being 100% at end 2016. A «laboratory» store was created in September 2014 in Boulogne-Billancourt with the idea of providing consumers with a new experience. It will in particular feature more sustainable lighting using LEDs, which have a lifespan of almost 12 years. Atelier de la Cosmétique Végétale® - Rue de Rennes - Paris IV

ENVIRONMENTAL SHIPPING POLICY

For many years, the Rocher Group’s environmental policy has been at the heart of all its developments, and the Group’s Shipping Department has been particularly concerned because of the decisive role it plays. The Group’s policy has always been oriented towards improving shipping methods in terms of sustainable development, such as by reducing the environmental impact of its shipments.

Electrical vehicle- La Croix des Archers, La Gacilly, France

◗ the widespread use of what are known as “double- decker» trucks equipped for optimal fi lling so as to reduce hauls across Europe by more than 40%; ◗ it is standard practice in calls for tender to prioritize shippers using the latest generation of more environmentally-friendly vehicle (EURO V / Deliveries to all Yves Rocher shops in Paris made with Greenway electrical vehicles EURO VI); ◗ to complement these arrangements, the Group Key points in the environmental policy of the has asked its courier services to progressively transport sector include: equip themselves with «green» vehicles for urban deliveries (electric and hybrid vehicles in the Paris ◗ the application of security protocols by our region in particular); providers is monitored very carefully; ◗ the Group is also counting on the development of ◗ in making these choices, systematic consideration multimodal schemes, including rail / road in Sweden is given to training drivers in «Eco Driving”, which is and sea / road in Russia (ranked 4th in the Group in not only the best guarantee of the security of the terms of turnover in 2014); staff and the goods being carried, but is also the most important vector for saving fuel and reducing ◗ ongoing refl ection on how to optimize deliveries in CO2 emissions; city centers.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 35 LOGO PLANET RESPECT PROTECTION OF BIODIVERSITY

BI ODIVER SITY STRAT EGY AT THE GROUP GEVEL

The Rocher Group has clearly identified the need In 2014, Petit Bateau also set up a naturalist to protect Biodiversity in its strategy diagnosis with the LPO for its Murard site in Troyes. This diagnosis will be conducted in spring 2015. The future Buchères warehouse will also adopt a “Biodiversity Refuge» approach. Ambassadors of Biodiversity As a true Ambassador for Biodiversity, the Group welcomed more than 2,600 participants during awareness-raising activities conducted in La Gacilly, in its Botanical Garden. More than 160 events were held in the summer of 2014 for school groups, employees and the general public.

Site management All the industrial sites in France have adopted a biodiversitySienna management process in partnershipOrange

with theCMJN Ligue pour la protection des oiseauxCMJN C31 - M30 - J36 - N0 C0 - M60 - J94 - N0 (LPO), RVBequivalent of Bird Life International RVBin France.R169 - V130 - B114 R255 - V130 - B0 Hexadécimal Hexadécimal Following#a98272 a naturalist diagnosis of the site#ff8200 (inventory of wildlife, flora, and environmental

elements), the LPO proposes an ecological © Dominique Rolland management plan that is adapted to the location, Botanical Garden visit in La Gacilly, France with the aim of providing living environments that support biodiversity.

Since 2010, the Yves Rocher brand has In Brittany, 100% of the Rocher Group’s industrial sites formalized its Biodiversity Strategy. This specializing in cosmetics and detergents are now strong voluntary commitment aims to “Biodiversity Refuges”. Seventy hectares are now position the brand as a major player in environmentally friendly areas. cosmetics that promotes biodiversity. In Ploërmel, for example, after 5 years of The strategy revolves around three main biodiversity-friendly management, the naturalist points: diagnosis identified eight new species of birds on site, making a total of 50 species, including 33 that ◗ To be the brand that pioneers a new nest on site. relationship to the living world, by changing practices as society evolves; The “Biodiversity Refuges» sites also host vulnerable species, both animal (Meadow ◗ To be a responsible manager of natural Pipit, spotted Grey Flycatcher, Bullfinch Peony, resources, an industrialist that respects Melodious Linnet) and plant (Water Violets and the living environment; Royal Ferns). ◗ To be an ambassador for biodiversity, in Given these positive results, the LPO and the particular among the 30 million customers Rocher Group have extended their agreements of the Yves Rocher brand worldwide. for 5 years.

36 2014 corporate social responsibility report - GROUPE ROCHER ENVIRONMENTAL INFORMATION

IN SEPTEMBER 2014, THE YVES ROCHER BRAND SIGNED THE NEW YORK DECLARATION ON FORESTS

BIODIVERSITY AND SUPPLIES

LBV Yves Rocher sets out rules in its Plant Charter Furthermore, the «Protect» component in the that must be observed by all its in-house teams Yves Rocher management approach to botanical and all its partners that supply raw plant materials supply chain emphasizes the commitment of Yves (cf. Raw materials). Rocher to respect the environment, biodiversity and the people involved in its supply chains (cf. Raw materials).

AGREEMENTS ON BIOLOGICAL DIVERSITY, FIGHT AGAINST DESERTIFICATION, AND CLIMATE CHANGE

In September 2014, the Yves Rocher brand was invited by Ban Ki-Moon, Secretary-General of the UN, to a climate summit at UN headquarters. At this meeting, the Yves Rocher brand signed the New York Declaration on Forests. In October 2014, the Yves Rocher brand was able to testify and host a panel discussion at the UN Conference of the Parties (COP12) on Biological Diversity in Pyeongchang, Korea. The main themes of the seven interventions were the entry into force of the Nagoya Protocol and the relationship between business and biodiversity. On this occasion the brand presented the work of the Orée association on «biodiversity management by the players; from awareness to action», as well as on the actions on good practices taken by the NRSC association, which was co-founded by Jacques Rocher, Sustainable Development and Perspective Director.

Claude Fromageot, Sustainable Development Director Rocher Group, O.N.U conference - Pyeongchang, Corée

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 37 20 SocIAL rESPonSABILItY PLAnEt rESPEct // GrouPE rocHEr 14 © Emmanuel Berthier SOCIAL RESPONSABILITY

ROCHER GROUP’S HUMAN RESOURCES POLICY

The Rocher Group, a major player in the fi eld of beauty and textiles in many countries, has established a human resources policy that links human development and economic performance. The strong values of its various brands and their attractiveness on the markets are refl ected in the values that underlie the employees’ overall working environment.

The Rocher Group has always believed that practices in addition to pure performance; economic performance, which is essential for the 5. the development of modern digital HR tools development and long-term survival of its brands, (such as TALENT YOU) worldwide for all the must serve human aspirations, and in particular managers with a view to promoting and further good job quality and industrial relations. developing the Group’s main assets.

The Group’s Human Resources policy is In addition to this individual development thus based on various concrete elements to policy there is a well-developed company promote and develop talent: approach to human resources: ◗ our Group’s strong appeal among young graduates, ◗ a compensation policy defi ned at the global level which is refl ected in various independent opinion for managers; surveys, particularly in France, and an active presence in educational institutions including in ◗ an eff ort to develop a working situation and the main European countries. In 2013, the Rocher conditions that promote career development, Group won the «Region Jobs» label as the second- ergonomics and job security; most attractive employer for Brittany; ◗ an active dialogue with the employee ◗ recruiting young professionals with increasingly representatives from the country / brands where international profi les in order to deal with the the Group operates; major challenges facing the Group’s development ◗ a special proactive focus on diversity, particularly on world markets; concerning gender (the Group’s workforce is over ◗ a talent development policy based on: 80% female) and disability; 1. geographic and vocational mobility; ◗ a search for fairness and balance between the 2. a training policy; occupational categories so as to keep diff erences 3. putting personnel into responsible business in pay and social benefi ts under control based on situations where they can learn right from the market realities. start of their careers; 4. regular feedback through an effi cient evaluation system (EPG system: Evaluation of overall performance for managers) that recognizes and rewards professional and human relations

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 39 THE ROCHER GROUP’S WORKFORCE

EMPLOYMENT

Total workforce and breakdown of employees by geographic area, gender and age THE ROCHER GROUP ROCHER EMPLOYS MAINLY WOMAN 14,259 82 % 18 % OF EMPLOYEES OF EMPLOYEES ARE WOMEN ARE MEN

EMPLOYEES IN THE WORLD In 2014, the Rocher Group had 14,259 employees around the world, 80% of them in Europe.

BREAKDOWN BY GEOGRAPHIC ZONE

NORTH AMERICA 517

ASIA 572

MAGHREB 645

CENTRAL AMERICA AND LATINE 1,.083

EUROPE EXCL. FRANCE 5,040

FRANCE 6,402

BreAKDOWn men/WOmen BREAKDOWN BY AGE GROUP COSMETICS PETIT BATEAU STANHOME GROUP

81% 83% 83% 82% 23% 19% 17% 17% 18 % 30%

Women Men

BREAKDOWN BY TYPE OF CONTRACT COSMETICS PETIT BATEAU STANHOME GROUP 47%

86% 87% 97% 88% 14% 13% 3% 12% Under age 30 Between 30 and 50 Over age 50 Permanent Fixed-tern

40 2014 corporate social responsibility report - GROUPE ROCHER SOCIAL RESPONSABILITY

> Hiring and departures The Rocher Group does not generally run into In some countries facing serious economic diffi culties with recruitment, for any category of diffi culties, it may be indispensable to carry out restructurings in order to adapt the situation staff , and regardless of the country. to the local context. These actions will be as An active policy of partnership with educational limited as possible and conducted in such a way institutions has been set up in France to promote as to support the personnel while ensuring the brand awareness and enhance their attractiveness. protection of the Group’s other activities, which must have all the resources necessary to grow and A human resources structure (HR) is established invest. in a country once our operations have reached a certain minimum size. Where this is not the case, These actions, which, in various forms, have been the country in question is then supervised by a carried out in Mexico, Ireland and Canada, were cross-departmental HR so that there is still HR the subject of close local social dialogue and in support. Ireland in particular led to the conclusion of an agreement with the staff representatives. In 2014, there were 5,064 departures (6). The Petit Bateau Company conducted the sale The Group hired 4,617 employees in 2014, of its Tunisian subsidiary Tunitex in this same including 1,895 on permanent contracts and 2,722 spirit. As part of this sale there was a guarantee on fi xed-term contracts (CDD), due mainly to the of maintaining a declining volume of production steady growth of the store network in numerous for a period of eight years, which created the countries. conditions for maintaining local employment on The Group also had 341 redundancies and 582 the date of the sale so as to help the long-term dismissals for individual reasons. future of this company. The Rocher Group, like any business, must ensure a level of performance that ensures its long- term future. In most countries, natural turnover (number of resignations) exceeds redundancies and dismissals (1,875 resignations in the Group in 2014).

> In-house mobility The Group also has an internal mobility policy designed to support the personal development of employees whenever the activity permits.

Change Physical Total Total mobility in % of positions move mobility of workforce 2014 Cosmétiques 352 445 797 9% Petit Bateau 240 215 455 16% Stanhome 15 17 32 1% GROUPE 607 677 1,284 9%

(6) Departures include dismissals for economic and personal reasons, resignations, retirements, deaths and departures for other reasons (including the end of fi xed-term CDD contracts)

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 41 95% OF THE GROUP EMPLOYEES IN FRANCE HAVE AN INCENTIVE SYSTEM

> Remuneration policy > p rofit-sharing, stock options and The Rocher Group considers its pay policy to be a incentives major component of its Human Resources policy. The Rocher Group aims to associate employees Thus, for managers, the system of remuneration with the results of their company, while taking and pay rises is defined and monitored at the into account the fact that the Group is not listed global level as part of a comprehensive policy. on the financial markets and is controlled by a This system aims to reward responsibility and family shareholding. individual performance, in direct connection with In addition to the system of profit-sharing, the annual staff appraisal process (called the and leaving aside the Stanhome France sales Global Assessment of Performance). representatives whose remuneration is based The level of responsibility of each member of on turnover, 95% of the Group employees in management is also reviewed periodically so as France have an incentive system. This incentive to be in line with market data on remuneration, system is designed on an equal footing so that which are transmitted by specialized firms that are the least-skilled employees receive the same level internationally recognized and independent of the of incentives as senior management. The total company. amount of incentives paid in France in 2014 came to 5.0 million euros. As for the vast majority of employees, the lowest wages paid in most countries are higher than the This system uses an egalitarian approach to legal minimum wage. associate all employees with the collective performance of their company and therefore represents for the least-skilled employees an additional amount of income that is particularly significant (over 10% of income for the least- qualified Yves Rocher employees). similarly for legal profit-sharing, the agreement signed by the parent company LBV Yves Rocher, which has a floor and a ceiling, leads to profit- sharing that favours the least-qualified employees. Finally, a Company Savings Plan has been established, which is a specific fund enabling employees to invest their assets in shares of the parent company LBV Yves Rocher. In order to enable the Group’s French companies to take avail of this possibility if they want, a Group Savings Plan was created in 2009. > Employee costs staff costs represent a very significant element in the Group’s expenses, i.e. 485,160,000 euros in 2014. The share of employee remuneration in relation to the Group’s added value has increased in recent years, and today represents on the order © Dominique Rolland of 69%. Rose petals drying preparation- La Gacilly, France

42 2014 corporate social responsibility report - GROUPE ROCHER SOCIAL RESPONSABILITY

ORGANISATION OF WORK

> The organisation BREAKDOWN BY WORK TIME of the work week Rocher Group 2014 The Rocher Group naturally strives to fulfi l its legal and contractual obligations in every country where it operates. Working hours thus depend on the local context and the activity. 20% There are part-time employees in all the professional categories. 94% of part-time staff are women. Recall that in France; in 1996 the parent company LBV Yves Rocher implemented a reduced work week agreement, which very early on meant a work week that was shorter than the legal requirement, even before a reduction in working 80% time was made compulsory in France. This agreement has remained in force ever since, with a few adjustments, and is always negotiated with the social partners. 4%

> Absenteeism

Overall rate of absenteeism Rocher Group - 2014 (see defi nition in the methodological note P80) Cosmetics 7.64% 96% Petit Bateau 0.78% Stanhome 2.74%

GROUP TOTAL 2.19% Part time Full Time

Absenteeism rate by reason Rocher Group - 2014 Reducing the rate of absenteeism may be an (see defi nition in the methodological note P80) important issue in some countries. Many steps Work accidents 0.07% are being taken to reduce this rate, and the rates in the main are low. Absenteeism in France other Travel accidents 0.02% than for a lengthy illness is well below 3% in the Illness with time off 2.10% cosmetics sector. GROUP TOTAL 2.19%

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 43 L ABOUR-MAN AGEMENT RELA TI ONS

The organisation of the social dialogue, > Summary of collective including employee information and agreements consultation procedures and negotiations The Rocher Group carries on a social dialogue The Rocher Group has always been attentive that makes it possible to reach many collective to ensuring a good quality social dialogue in its agreements in its various entities every year. In various companies around the world. The Group 2014, 31 agreements were signed in France and strives to respect the trade union rights laid down 32 in the rest of the world. Most international by local legislation. agreements cover pay and changes in various Employee representative bodies have been set social benefits. up, particularly in the European subsidiaries. In France, the legal entities generally have trade union organisations as well as works councils, committees on hygiene, safety and working conditions and staff representatives. IN 2014, If it is not possible to set this up because there is no legal framework or the subsidiary is not large 31 AGREEMENTS enough, management will opt for a direct dialogue WERE SIGNED with employees. At European level, an Yves Rocher Europe IN FRANCE AND Committee (CYRE) was established by a trade union agreement in 2001. This committee meets 32 IN THE REST once a year on a plenary basis, in addition to OF THE WORLD frequent smaller meetings of its Bureau. The Yves Rocher Group Committee is kept informed of the general progress of the Group’s activities in Europe, and more specifically, with regard to transnational projects. In 2013, the Group signed what is undoubtedly a An agreement signed on 21 June 2011 with major agreement, the «Generation Agreement”, the social partners representing the Group’s which was concluded by LBV Yves Rocher with main companies in Europe (CYRE) reformed its the unanimous agreement of the representative information and consultation powers upstream trade unions as defined at the level of the Group’s of transnational decisions that could significantly French companies. This agreement includes, in affect jobs in several countries. addition to provisions for hiring young employees, a variety of actions to support older workers and Thus, depending on the situation, large-scale to deal with difficult working conditions. This projects could lead to consultation of a plenary agreement covers all Group employees in France, session of the Yves Rocher Europe Committee i.e. more than 6,000 people. (CYRE), or, for smaller projects, meetings could be expanded to include CYRE members representing the countries directly impacted.

44 2014 corporate social responsibility report - GROUPE ROCHER SOCIAL RESPONSABILITY

> HEALTH AND SAFETY

> Occupational health and safety 147 accidents leading to time off were recorded in 2014 at the Rocher Group’s various sites. Level of severity of accidents Rocher Group - 2014 (see Defi nition in the methodological note P80 ) Cosmetics 0.07 Petit Bateau 0.06 Stanhome 0.24 GROUP TOTAL 0.08

The main causes of work accidents are related to risks associated with carrying loads and handling. Prevention and training activities are organised every year to limit these risks. As for LBV Yves Rocher France, safety training represents more than 20% of the time spent on vocational training. In 2014, averages of 0.08 days of absence for accidents with time off were declared in the Rocher © Christophe Urbain Clothing manufacture, Petit Bateau Group per 1,000 hours theoretically worked.

Level of frequency of accidents Rocher Group - 2014 (see defi nition in the methodological note P80) Cosmetics 3.2 Petit Bateau 2.6 Stanhome 23.1 GROUP TOTAL 4.0

In 2014, an average of 4 accidents were declared in the Rocher Group per million hours theoretically worked.

no. of people aff ected by an occupational illness In % of Rocher Group - 2014 workforce cosmetics 10 0.1% Petit Bateau 6 0.2% Stanhome 15 0.6% GROUP TOTAL 31 0.2%

31 people were aff ected by an occupational illness in 2014 in the Group, of whom 15 were from

© Dominique Rolland Stanhome, i.e. 0.2% of the workforce. Production site Ville Geff s, la Gacilly, France

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 45 THE ROCHER GROUP WORKS TOWARDS IMPROVING WORKING CONDITIONS, PREVENTING ACCIDENTS AND REDUCING EXPOSURE TO RISK

The Rocher Group is particularly attentive to the Bringing all the Parisian sites together in a single working conditions of its employees. It works place in a new building will help to improve working every day on all its industrial sites to improve conditions. All the Group subsidiaries based in the the working conditions of the staff, to prevent Paris region (except for Petit Bateau and Cerco) occupational accidents and diseases and to reduce will now be gathered in a new building. This any exposure to risk and hardship. project, called CAP ROCHER, is already underway, and the social partners are closely involved in its In the sites most exposed to risks or hardship development, which ended with moving in early factors, the factories and distribution centers, 2015. policies to prevent accidents on the job have been implemented. In France, studies on psychosocial risks were carried out in all the industrial sites and in This policy is based on the involvement of the cosmetics distribution, in close connection with staff, on regular, targeted communications, and the social partners, and ergonomics actions are on action plans developed for each business being taken to limit hardships at work. line. Concretely this is expressed in terms of measures such as improving the ergonomics of workstations, reducing manual handling and exposure to chemicals, organizing awareness days and information and training sessions.

FOCUS

FLORMAR

The Flormar subsidiary has carried out a number of measures to renovate its ventilation systems in its manufacturing facility, in particular to reduce the concentrations of solvents in the air. The changing rooms have also been overhauled. These actions have improved employee working conditions. Flormar also holds an annual blood drive among its staff to benefit the Red Cross.

46 2014 corporate social responsibility report - GROUPE ROCHER SOCIAL RESPONSABILITY

> Cosmetics and detergents Twelve projects that are intended to improve workstation ergonomics and working conditions at the Brittany production and distribution sites took shape in 2014. These projects included: ◗ studies on diffi culties at work stations; ◗ studies on the management of people with impaired skills; ◗ the reorganisation of workstations to improve constraints on posture, reduce physical strain and repetitive movements, and allow access by people with medical restrictions; ◗ the installation of new equipment, machinery and production lines; for example, 3 high-speed lines for the sites in Rieux, Villes Geff s and Cork; ◗ individual facilities for the ongoing employment of employees recognized as workers with a disability; ◗ the automation of tasks with poor ergonomics when they are performed manually; ◗ the creation of «soft jobs» for people with medical restrictions; ◗ training and awareness of in movements and postures. For example, 80 people were trained ◗ ergonomic expertise on the ALOES project on the logistics platform and the Rieux site (repatriation of the Spain business to La Villouet) (production / logistics). Training is also being and the associated impact on our activities; provided on stretching and warm-ups with the operational staff on the 3 sites; ◗ assistance in the choice of furniture for the new «CAP ROCHER” building; ◗ ergonomic expertise on the new Yves Rocher and Dr Pierre Ricaud brand concept store as well as ◗ tests on innovative new materials for health: support on movements and postures for the shop exoskeletons (5 Brittany sites tested) + handling staff ; system with the Scara manipulator.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 47 > Textiles > Retail In accordance with the law on occupational hazards In order to improve the well-being of employees and in compliance with the recommendations and customers, an ergonomic audit was conducted made by the Occupational Health Department, in the workshop store and the new Laboratoire Petit Bateau management has initiated a process Yves Rocher store as well as in the new Dr Pierre to improve the quality of life at work in partnership Ricaud concept store opened in September 2014. with a specialized firm (PsYa). The analysis and the ensuing recommendations have helped to adjust the heights of some items The purpose of this study is to objectively assess (the tills, for instance). A guide to good postures the organisational facts that may impact the and movements was also developed in the quality of life at work and then establish an training module for Yves Rocher and Dr Pierre accessible, realistic action plan that has a real Ricaud advisors so as to prevent the onset of pain impact on everyday life. due to prolonged poor positions. Finally, online Initially, based on the recommendations of training in fire safety and in welcoming people the Occupational Health Department and the with disabilities has been available from October C.H.S.C.T., this approach was rolled out in the R&D 2014 for Yves Rocher consultants, which has a and Purchasing departments. good take-up rate as 527 people have completed the 2 modules and 163 others are in the process of A joint steering committee was set up. 45 being validated. employees participated in group and individual interviews organised by PSYA, which enabled them to speak freely on topics such as changes, A summary of agreements with the trade management, communications, workloads, job unions or employee representatives on health recognition and support practices. and safety at work Eight working groups were formed, enabling In 2014, seven agreements on health and safety more than 30 employees to become a proactive were signed internationally. force with respect to managing information, opening departments up and providing support The Group strives to involve the social partners at to employees who are having difficulties. the level of the employee representative bodies in the process of implementing ergonomic measures and programmes related to psychosocial The year 2015 will enable Petit Bateau to risks. In addition to these collective bargaining continue its efforts to improve the quality of agreements, it is especially important to take a life at work and to more firmly establish the hands-on approach to defining and implementing good practices already in place. well-adapted measures. As for Stanhome France, on 3 December 2014 it reached a collective agreement to improve working conditions with its social partners and to define global and national actions for staff exposed to hardships at work.

48 2014 corporate social responsibility report - GROUPE ROCHER SOCIAL RESPONSABILITY

TRAINING

> Training policies implemented Some of these courses are taught in English so that all the managers, whatever their country of Training is an integral part of the Group’s human origin, can benefi t from them. resources policy and is intended, in all countries, to maintain the skills necessary for assuming Similarly, «multicultural» training is provided to positions and responsibilities and to ensure safety facilitate a good understanding on the job of at work and the professional development of the people from diff erent cultures who have to work employees. together. At Group level, there is a great deal of «corporate» The «corporate» training complements measures training which caters to all the Group’s managers. that are implemented in each country based on This training is aimed both at integrating and their own respective needs. promoting management methods that are in line with the Group’s culture and values. © Dominique Rolland

«Les Primevères» sheltered workshop, La Gacilly France

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 49 IN TOTAL, 127,657 HOURS OF TRAINING WERE PROVIDED TO ROCHER GROUP EMPLOYEES IN 2014

AVerAGe numBer Of HOurS Of TrAInInG BY GenDer - rOcHer GrOup 2014

33 32 27 25 21 20 17 18 18 18 19 14

COSMETICS TEXTILE DETERGENTS ROCHER GROUP

Average number of Average number of Average number of hours hours per woman hours per man (men and women)

AVerAGe numBer Of HOurS Of TrAInInG BY STATuS - rOcHer GrOup 2014

33 27 25 25 21 22 18 16

COSMETICS TEXTILE DETERGENTS ROCHER GROUP

Value - Average nomber of hours per Executive Value - Average nomber of hours per non- Executive

50 2014 corporate social responsibility report - GROUPE ROCHER SOCIAL RESPONSABILITY

> DIVERSITY AND EQUAL OPPORTUNITY

> Measures taken to promote gender equality The Rocher Group overwhelmingly has women employees and naturally ensures equal pay for equal work, regardless of the employee’s gender. The Rocher Group has a policy of non- discrimination, which is an integral part of the Group’s culture and its human resources policy. also in terms of governance, an eff ort to achieve parity is being made, with the result that 53% of the members of the management committees of the Group’s main brands are women. In France, in response to legal criteria, the Group’s companies have entered into agreements with

the social partners on «Equality between Women © Dominique Rolland and Men». Atelier de la Cosmétique Végétale® LBV Yves Rocher has also just concluded a new agreement of this type on 30 October 2014 for a Measures taken to promote the employment period of 3 years with all its representative trade and integration of people with a disability unions. In 2014, the Rocher Group employed 366 people In the course of the wage bargaining conducted with disabilities. These workers represent on within the lBV Yves Rocher parent fi rm, the social average 2.6% of the Group companies’ total partners have been able to observe that there workforce. This low value does not refl ect the are no signifi cant diff erences in pay rates for reality on the ground, as the legislation defi ning equivalent positions. These observations have disability diff ers greatly from one country to been recorded in the wage agreements every another, and not all the sites abroad are able to year since 2008 as well as in the Agreement of 30 calculate this rate. October 2014. Beyond the simple issue of remuneration, equal access for women and men to all aspects of Rate of human resources policy (e.g. training) is being Number of employment carefully monitored. disabled of disabled employees 2014 workers 2014 Cosmetics 252 2.9% Petit Bateau 72 3.0% Stanhome 42 1.6% GROUP 366 2.6% © Christophe Brachet

Research and Innovation Direction - Rocher Group

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 51 THE ROCHER GROUP HAS LONG BEEN STRONGLY CONCERNED ABOUT THE ISSUE OF DISABILITY

IN 2014, THE ROCHER GROUP EMPLOYED 366 PEOPLE WITH DISABILITIES

AVERAGE EMPLOYMENT RATE OF DISBLED PEOPLE rOcHer GrOup - frAnce 6.5% 6.0% 4.6%

1.6%

France Total Cosmetics Petit Bateau Stanhome

2011 2012 2013 2014

In France, taking into account all brands, the More generally, there was awareness-raising average rate of employment of disabled people among all the personnel in the Paris region, is 5%, and over 6% in cosmetics and textiles. The including the advisors, to develop the outsourcing Rocher Group has long been strongly concerned of this sheltered sector. In this eff ort, and about the issue of disability. in Brittany in general, initiatives have been undertaken, including in catering, as part of the Thus “les Primevères”, French “Entreprise training courses. adaptée”, a company specially adapted for These actions are of course combined with workers with disabilities, located in La Gacilly, numerous local eff orts aimed primarily at has 29 disabled workers. promoting the ongoing employment of all employees, disabled or not, who face restrictions This company, an indirect subsidiary of the parent on their professional activity for medical reasons. company LBV Yves Rocher, is an integral part of the The Rocher Group strives to fi nd solutions that Group. Its activity consists in providing assistance promote job retention. to other Group subsidiaries as required (order preparation, commercial off ers, management of product returns, etc.). The Group also works with other adapted companies from the Brittany region to promote their local activity.

52 2014 corporate social responsibility report - GROUPE ROCHER SOCIAL RESPONSABILITY © Dominique Rolland

«Les Primevères» sheltered workshop, La Gacilly France

> Anti-discrimination policies The Rocher Group, which is an international fi rm, promotes the recruitment of multicultural profi les. Collective agreements entered into force in A large number of Group employees work in France, such as the generation contract, also help countries that they are not natives of, thus making to enhance access to training, particularly for for a mixture of cultures that can help avoid any older workers, so as not to shunt them aside and a priori cultural generator of discrimination. Thus to promote career development. the Yves Rocher brand in Canada, Germany, Spain, Belgium, Italy, and Russia, as well as the Stanhome All these practices are very carefully monitored. brand and Stanhome France, are all run by non- Thus, in 2011 managers’ awareness was raised natives. about these topics on the occasion of the introduction of a general principle of the absolute Similarly, HR policy, which focuses on talent prohibition of discrimination in the internal development, aims to allow all executive regulations of most Group entities. employees to be quickly exposed to their responsibilities. These practices have resulted in a wide range of ages within the population of managers.

SHARE OF FOREIGN NATIONALS ROCHER GROUP 8,5 %

4,1 % 4,0 %

1,3 %

Group Cosmetics Petit Bateau Stanhome

2011 2012 2013 2014

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 53 20 IMPACT ON SOCIETY PLANET RESPECT // GROUPE ROCHER 14 © Emmanuel Berthier IMPACT ON SOCIETY

REGIONAL IMPACT IN THE AREA OF EMPLOYMENT AND REGIONAL DEVELOPMENT

COSMETICS & DETERGENTS

> Growth and economic vitality in Brittany The presence of the Rocher Group boosts the vitality of the region through its industrial activities but also through its involvement in the development of tourism in La Gacilly.

In 2014, the Group’s activities employed 2,727 people directly in La Gacilly, Brittany. 29 people were employed at the Les Primevères sheltered workshop (100% workers with disabilities). In La Gacilly, most of the Group employees are from the surrounding area: ◗ 75% of the staff live in a small town Located less than 20km away, ◗

© Frank Bel 63% live in Morbihan, Organic Chamomile ◗ 33% in Ille and Vilaine. ROCHER GROUP EMPLOYEES IN BRITTANY These activities also generate indirect (excl. sales reps) 2014 employment among external local suppliers and Executives and similar ...... 514 service providers: temp agencies, dispatching, logistics, storage, cleaning, security, construction, Supervisors and employees ...... 1,193 and catering. Given the volume of purchases and Workers ...... 912 expenses made locally (activities neighbouring Apprenticeship and professionalization the production sites), it is estimated that every or other contracts ...... 108 year the Group generates the equivalent of 600 Total workforce ...... 2,727 full-time equivalent jobs locally. © Dominique Rolland

La Croix des Archers - La Gacilly France

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 55 > Eco-Hotel Spa La Grée des Landes Yves Rocher An Yves Rocher Eco-Hotel Spa was inaugurated in 2009 in La Gacilly. Its aim is to show that a place of well-being can be developed on a long-term basis that minimizes its environmental impact. The activity of the Eco-Hotel Spa contributes to job creation and growth in the region; it raises awareness about sustainable development and contemporary art through its occasional events and its very purpose. With European Ecolabel certification, its energy performance is very good thanks to the choice of building materials, the electrical equipment and the heating system: thermo-stone walls, green roofs, hemp insulation, eaves that allow thermal regulation, a wood boiler, solar panels, etc. The Eco-Hotel Spa is also a pacesetter for its management of water (use of a number of innovative technologies, rainwater recovery, etc.) and waste (100% of waste is re-used or recycled). “Les Jardins Sauvages” restaurant, La Gacilly, France It plays a role in the preservation of biodiversity by The gourmet restaurant «Les Jardins Sauvages» at protecting the local fauna and flora. The «Refuge the Eco-hotel spa has been certified organic since LPO» management plan and the arrangements July 2013. Its cuisine is local, since it works mainly made in the last 5 years have had a remarkable with growers located within a radius of 30 to 40 positive effect on the site’s biodiversity. kilometres. © Sophie Zénon

La Grée des Landes - Eco-hôtel Spa Yves Rocher

56 2014 corporate social responsibility report - GROUPE ROCHER IMPACT ON SOCIETY

> Cultural events Aimed at employees The la Gacilly corporate catering service off ers an organic menu every day, including cooked vegetables, which are provided mostly by the internal garden of La Forêt Neuve or by local market gardeners. Employees can benefi t from fresh, seasonal produce all year round.

Aimed at the local population and visitors The Group is heavily involved in the life of the region and has also developed tourism in La Gacilly by the organising activities in the Yves

Rocher brand’ s emblematic locations. A number © Sophie Zénon

of events punctuate the summer in La Gacilly area, Vegetable garden, La Grée des Landes- La Gacilly, France with a view to the democratization of culture and education for sustainable development. To ensure maximum accessibility, they are all free. ◗ This year the Foundation exhibition center ◗ LBV YR and the Yves Rocher Foundation-Institut in La Gacilly highlighted the work of Pascal Maitre, “Magic Kinshasa, between artists, chaos de France are funding partners of the «People and tradition”, which produced for National and Nature» Photo Festival, the largest open-air Geographic, and the exhibition of Michael Nichols, photography festival in France, which celebrated «The King of the Serengeti”, which documents its 11 years in 2014. More than 350,000 people the precarious existence of these big cats over have enjoyed works by famous international an entire year. These pictures were published a photographers exhibited in the village’s streets, National Geographic magazine (August 2013). parks and passageways. ◗ In the Végétarium Café, 9 aperitif concerts and a music festival were held in the summer of 2014, and a Christmas concert in the winter. Nearly 3,000 visitors participated in one of these cultural activities in 2014. ◗ As a true Ambassador for Biodiversity, the Yves Rocher brand has welcomed more than 2,600 participants to events and awareness-raising activities held in the Botanical Garden at La Gacilly. More than 160 events were organised in the summer of 2014 for school groups, employees and the general public, such as “Encounters with Yves Rocher» (agronomist-grower, botanical gardener), guided tours about Botanical Beauty and the Genius of the plant, and biodiversity workshops. © Dominique Rolland

Botanical Garden, La Croix des Archers- La Gacilly, France

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 57 PETIT BATEAU IS THUS NOW ONE OF THE LARGEST EMPLOYERS IN THE FRENCH TEXTILE INDUSTRY

Collection Petit Bateau

TEXTILES Petit Bateau has 3,000 employees worldwide, nearly half of whom are in France. In the context of a French textile industry that is suffering (loss of half of its workforce between 2000 and 2011); Petit > Growth and economic vitality Bateau has kept its workforce in the Aube at more Petit Bateau has opted to remain a French than 1,000 people. Petit Bateau is thus now one of manufacturer while also being an international the largest employers in the French textile industry. corporation. Petit Bateau’s activities in the Troyes employement Based in Troyes since 1893, Petit Bateau’s St. area also generate indirect jobs locally: temp Joseph factory perpetuates know-how and agencies, logistics, storage, cleaning, security, unique qualities that have been transmitted catering, etc. from generation to generation. To maintain its profitability and a high-quality manufacturing > Environmental awareness-raising tradition, starting in the 1980s Petit Bateau has and cultural events developed industrial clusters in the Maghreb. The Petit Bateau France also organizes activities to factories that make Petit Bateau products from raise its employees’ awareness about sustainable Tunisia to Morocco use exactly the same raw development - “Green days”. In September 2014, materials, manufacturing processes and quality the Green day focused on the theme of responsible control, as do the factories in Troyes. driving.

58 2014 corporate social responsibility report - GROUPE ROCHER IMPACT ON SOCIETY

STAKEHOLDERS RELATIONS

SUPPLIER AND SUBCONTRACTOR ECOSYSTEM - COSMETICS & DETERGENTS PRODUCTION

> Role of subcontracting The Purchasing & Quality Department of the Rocher Group handles the management of outsourcing for LBV Yves Rocher. The programmes and procedures that are used in relationships with subcontractors are the same as those developed for suppliers (see the Purchasing Policy). Subcontractors can, for instance, take part in the Supplier Awards.

Sub-contracting plays a diversity of roles in Cosmetics and Detergents: ◗ The Yves Rocher, Dr Pierre Ricaud and Daniel Jouvance cosmetics brands make use of subcontracting for the production of make-up (except mascara and lipstick), some face care, soaps, depilatory waxes, food supplements and herbal teas, wipes, and candles; ◗ For the Yves Rocher brand, and to reduce the impact of shipping large volumes of products for major sales markets, the Group can also use subcontracting, hygiene products in Russia; e.g. ◗ The Stanhome brand uses subcontractors for the production of its entire Home Care range (detergents). For Stanhome’s Family Care line as well as for the Kiotis brand, 20 to 30% of the output is provided by subcontractors, with the rest manufactured by the Group’s factories. ◗ As for Santé Naturelle, 98% of the production is As proof of this commitment, starting from provided by subcontractors. late 2013 the new umbrella procurement and production contracts systematically include Management of relations criteria / requirements about sustainable with suppliers & subcontractors development. The Rocher Group’s Purchasing & Quality Further evidence of this is the recent completion Department is concerned about its supplier and by two of the Rocher Group’s strategic suppliers of subcontractor ecosystem, and is committed to tree plantations on their sites, as part of the Plant developing and promoting among its partners for the Planet programme of the Yves Rocher the values of respect for nature and for people Foundation - Institut de France, at the impetus of supported by the Group. the Purchasing & Quality Department.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 59 TODAY, MORE THAN EVER, THE GROUP IS COMMITTED TO UNDERTAKING FUTURE ORIENTATED PROJECTS INVOLVING ITS SUPPLIERS

> Purchasing policy ◗ innovation and boldness as driving forces in differentiation and competitive strength; The Rocher Group’s Purchasing & Quality Department places Quality and Sustainable Development at the ◗ a refusal to stoop to dissimulation and deception. heart of its concerns as part of its effort to produce Today, more than ever, the Group’s employees excellent products and services based on continuous are committed to undertaking the future-oriented improvements and competitiveness. It propagates projects in which the Rocher Group’s purchasing and the Group’s values, giving a purpose to all its work. Quality Department wants to involve its suppliers. The Group already relies first of all on the suppliers This determination is a step towards the achievement selected on their sensitivity to the Group’s values, of everyone’s goal of long-term relationships and an as they bring their expertise and contribute to the efficient business model. accessibility of the products and services by sharing To continue developing this Responsible Purchasing three fundamental principles: approach, the Rocher Group has created the position ◗ the preservation of the environment and of Rocher Group Manager Sustainable Procurement biodiversity; and Plant Supply chain. © Dominique Rolland

organic Chamomile field- la Gacilly, France

60 2014 corporate social responsibility report - GROUPE ROCHER IMPACT ON SOCIETY

EXAMPLES OF PRACTICAL ACHIEVEMENTS

> Signature of the Responsible Supplier Relations Charter On 5 April 2013, the Operations Manager of the LBV Yves Rocher Group signed the Responsible Supplier Relations Charter at La Gacilly, in the GROUPE ROCHER presence of the Prefect of Morbihan. This Charter, called the «Charter of 10 commitments for responsible purchasing”, was created to address the diffi culties facing sMEs in their relations with arouse the interest of current and future suppliers suppliers and to establish a framework for mutual of the Rocher Group, to motivate innovation, and trust. to recognize the suppliers as a more proactive It is also helpful in defi ning, within the signing force. entity, one or more “SME Correspondent” who can be contacted by suppliers in case of a dispute. > Business review The Rocher Group holds annual business reviews > Supplier Portal with its largest suppliers, whether in the fi eld of In late 2013, the Rocher Group launched its Supplier packaging, raw materials or subcontracting. These Portal (www.groupe-rocher-fournisseurs.com), a provide an opportunity for the suppliers to present website dedicated to all Rocher Group suppliers. their performance and a summary of the year, and This site, which was set up at the instigation of for the Rocher Group to share its strategic vision the Purchasing and Quality Department, aims to with its suppliers.

FOCUS

SUPPLIER AWARDS

In continuity with its three previous editions, the Rocher Group held the 2014 Supplier Awards for suppliers and subcontractors. The themes recognized this year were: Competitiveness, Innovation, Sustainability, and Quality. These awards are intended to help further organize the ecosystem of Group suppliers by promoting mutual exchanges of knowledge and skills and ensuring the success of its brands and its partners.

SERIOPLAST supplier rewarded in the quality category, for its work on «Jardin du monde» packaging

EVERYDAY,EVERYDAY, WE COMMITCOMMIT 2014 corporate social responsibility report - GROUPE ROCHER 61 EXAMPLES OF P R A CTIC AL A C HIEVEMENTS

> Quality support programme for > Lean management project our suppliers Lean management projects are another example Quality is a key element in building a reliable of the consolidation of the supplier ecosystem, and lasting relationship with suppliers. The by co-building win-win projects between the consolidation of the Quality Department into Rocher Group and motivated supplier partners. a single Purchasing and Quality Department In 2013-2014, two lean management projects has facilitated the development of targeted were developed jointly between Yves Rocher support programs to improve the quality of Yves and two suppliers, one in packaging, the other a Rocher suppliers. During the last 2 years, these products subcontractor. This project concerns programmes have led to a 25% reduction in the the Crèmes Fondantes and Exfoliants Plaisir non-compliance of the Group’s packaging items Nature jars. Thanks to the joint Rocher Group / coming into the factory. subcontractor effort and the shared investment for new equipment, the perceived product quality To achieve this, the Rocher Group conducts very has improved significantly, prices have been regular monitoring using tools such as audits and cut (and the gains divided equally between the quality & business reviews. Rocher Group and the subcontractor). The quality of the relationship has been strengthened, thanks ◗ Every month, the suppliers are assessed by the to a better understanding of the workings and central Quality Department based on the rate of constraints on each party. non-compliance and follow-up of client complaints. Action plans are overseen by the central Quality Department or by the on-site Quality teams, with regular reporting. There is collaboration between the various stakeholders, including the central Quality Department and the on-site Quality teams. ◗ In addition, between 80 and 100 supplier quality audits are carried out annually, mainly by the Group’s auditors. Overall, the quality monitoring operations cover 92% of the subcontracted turnover of the cosmetic brands.

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WORK WITH THE SHELTERED SECTOR EMPLOYING DISABLED PEOPLE

The Purchasing and Quality Department is committed to developing purchases from the sector with sheltered employment in specially adapted work environments. In 2013, subcontracting with specialist companies (EA, ESAT, prisons) represented 2.3% of total subcontract sales.

As part of the month of Social Economics and employability and continued employment of Solidarity and the Week for the Employment of disabled people, present the skills of sheltered People with Disabilities (November 2014, France), sector companies and go even further in our from November 3 to 7 the Rocher Group held a purchases from this sector. The Group’s objective «Disability Week» in order to inform employees for 2020 is to increase its purchases with the about the Group’s activities, promote the sheltered sector by 5% over 2014.

CLOSE-UP ON

DISABILITY WEEK

> Time for > Time for exchanges information The organisation of a 2-hour Round The installation of 4 Table on «Purchasing from the Sheltered informational boards in sector», with the participation of the lobby of our Grenelle four speakers: our Rocher Group site in Issy-les-Moulineaux subcontracting Purchasing Manager, on the themes: Disability a Petit Bateau hR project offi cer, a Commitments of the Petit representative of APF Entreprises and Bateau brand, Ergonomics, the head of the sheltered ESAT company Primevères protected l’Atelier du Château. A sale of gift workshop, Sheltered products by the sheltered ESAT company sector purchases. l’Espérance was held on our site in Paris just before Christmas. > Uploading awareness- The organisation of an raising tools and decision- ergonomics workshop, making aids led by the ergonomist Publication of two new tabs with the Industrial «Sustainable Procurement» and “Close- Operations Department, up on Disability» on our Group Intranet; in order to educate and to close the Week putting online a employees about good quiz on Disability with 3 Handi’Box to preventive habits and win, fi lled with objects and products postures. made by or for the benefi t of sheltered Rocher Group ergonomics EsaT and Ea fi rms and associations.

EVERYDAY,EVERYDAY, WE COMMITCOMMIT 20142014 corporatecorporate socialsocial responsibilityresponsibility reportreport -- GROUPEGROUPE ROCHERROCHER 6363 SOCIAL AUDIT POLICY, EVALUATION AND AWARENESS

> Payment terms the elimination of discrimination with respect to employment and occupations, and the actual In a very challenging economic environment, abolition of child labour. meeting payment deadlines is crucial for the financial sustainability of sMEs. The Rocher For these three countries, the evaluation is based Group pays special attention to compliance with on the themes below, which are described and payment terms. reorganised based on an expert reading of the standard by our auditor partners, according to > EcoVadis CSR evaluation the specificities of the country. an environmental theme is also included that is not present in SA The Rocher Group has always been attentive to 8000. the environmental, social and labour situation of its suppliers, and given the size of its network of Criteria for generic audits, which may be subject to suppliers, the Group decided to extend its action changes: by drawing on the EcoVadis CSR Monitoring ◗ Platform. This will help organize and strengthen internal control and documentation; the supplier - Rocher Group relationship, a topic at ◗ labour law; the heart of the Group’s values. ◗ employee rights (information, trade union In 2014, 100 “pilot” suppliers out of the entire range of purchasing portfolios were asked to representation, etc.); undergo this assessment. ◗ working hours; > Social audit policy in countries ◗ pay and social security benefits; at risk ◗ subcontracting and distance work (China); social audits are conducted in countries identified ◗ right of recourse (India, Vietnam); as «at risk» in which the Rocher Group is dealing with suppliers and subcontractors. 100% of the ◗ freedom of association and right to collective suppliers doing business with the Asia Operations bargaining; Department (DOPA) are subject to a quality audit before being qualified, followed by a social audit ◗ child labour; upon the first order. ◗ forced labour; China, India and Vietnam in particular have been ◗ identified as “countries at risk». The Rocher discrimination, harassment or abuse; Group’s suppliers in these countries are therefore ◗ non-discrimination; subject to social audits. These are carried out by the Bureau Veritas in China and WethicA in India ◗ disciplinary measures (China); and Vietnam, in accordance with their respective ◗ health, safety, hygiene; social audit grid, based on the issues in the SA 8000 standard. ◗ the environment. The audit criteria concern respect for human rights Each audit gives rise to an evaluation and an analysis and are based on the Universal Declaration of sent to the Rocher Group. Plans for corrective action Human Rights, International Labour Organisation conventions, and the UN Convention on the Rights are then drawn up, shared with our suppliers, and of the Child. In particular they take into account monitored by the Rocher Group. A factory with a freedom of association and collective bargaining, very high level of risk (red) is not approved.

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>TEXTILE SUPPLIER AND SUBCONTRACTOR ECOSYSTEM

> Role of textile > Textile supplier ecosystem subcontracting To meet quality requirements and comply with its OEKO-TEX Petit Bateau sometimes makes use of certifi cation, Petit Bateau must be heavily involved in choosing subcontracting in Tunisia or around its the components provided by its second-tier suppliers. Moroccan factory. In France, Petit Bateau Its employees make frequent visits to the sites carrying is one of the last fi rms to place orders for out weaving, spinning, stamping, injections, printing, etc. industrial textiles, so the brand has found Certifi cation with the oEKo-TEX label means that these itself increasingly alone in supporting the suppliers use chemical products with little or no impact on existence of enterprises that perform the the environment. textile fi nishing that its activity requires. Gradually, to deal with the disappearance The sourcing process also involves working with a specifi c of this sector, these skills have been textile zone by relying to the utmost on the expertise present integrated into Petit Bateau’s own in the area so as to minimize the carbon impact of shipments activities. of goods between the various industrial sites.

SPONSORSHIPS

THE ROCHER GROUP SPENT 3.5 MILLION EUROS ON GIFTS AND SPONSORSHIPS IN 2014.

Photo Festival 2014- La Gacilly, France © Dominique Rolland

This breaks down as follows: ◗ 80% to help environmental ◗ 3% to help the fi ght against disease; actions; ◗ 12% to help miscellaneous actions ◗ 5% to promote social actions; (La Gacilly Photo Festival, etc.).

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 65 > Yves Rocher Foundation Institut de France The Yves Rocher Foundation was established in 1991 at the initiative of Yves Rocher and Jacques Rocher. It helps to carry on the commitments made by Yves Rocher at the creation of his company, such as environmental protection, the education of young people, and expertise in plants. The Yves Rocher Foundation is today under the aegis of the Institut de France, and it is funded by both donations from companies in the Rocher Group and private donations ( the general public and other sponsors).Its activity is based on four points: ◗ To support the struggle of women with the Women of the Earth Award, which recognizes women who are working every day to protect the environment; ◗ To promote reforestation with the Plant for the Planet programme. The goal is to plant 50 million trees by 2015; ◗ To support botanical expertise; ◗ To support photographic work through sponsorships. > Daniel Jouvance Foundation Institut de france: study and preservation of the marine world The Daniel Jouvance Foundation - Institut de France carries forward the ethical and environmental commitments that have been promoted by the Daniel Jouvance brand for many years. Today it focuses mainly on two areas: the study and the preservation of the marine world. Three activities are aimed at promoting the development of scientific and technical knowledge: Every summer on Brittany’s Île de Houat, 30 young enthusiasts aged 12 to 16 benefit from a free Océan-Océan visit, which raises their awareness about the life of marine ecosystems. Every year the Foundation awards a 4,000 euro prize to young researchers for their work in the field of marine biology. The Foundation also takes part in organizing the International Schools of Marine Biology. These sessions last 10 days and are held in the emerging countries so as to promote the transfer of expertise in the field of marine biology and Océan Océan trip, Daniel Jouvance Eclosarium, Ile de Houat, Morbihan ecology.

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> Stanhome and childhood Dr Pierre Ricaud has also set up an annual operation, called Sharing Products, which involves donating one euro per lipstick bought during a specifi ed period. Thus since 2008, Dr Pierre Ricaud has given 129,859 euros in total to Forces Femmes, including 17,438 in 2014. In addition, Dr Pierre Ricaud holds makeup workshops to help women in their beauty preparations and to regain confi dence prior to job interviews (3 were organised in 2014). > Petit Bateau

Italy Stanhome & Peter Pan Association

Stanhome has been working for over 18 years to defend the cause of children and has a partner voluntary organisation in every country which supports it. The brand is committed to take to heart its responsibility to build a better world for children and is involved locally in projects to improve health, education, welfare and the environment. For the years 2013 and 2014, various Stanhome subsidiaries have contributed 510,000 euros to charitable projects that defend these causes, which receive a portion of the profi ts from the sale of Stanhome’s “Sharing Products”.

> Dr Pierre Ricaud and Force Femmes

Petit Bateau & “La Source” association

Petit Bateau has been working to fulfi l its commitment to the development of the creativity and imagination of childhood. In 2014, Petit Bateau signed a sponsorship partnership with the «La Source” charity for a period of three years. Petit Bateau has chosen this organisation because its values are so close to the brand’s own DNA. La Source is a charity under Law 1901 and has been recognized as a public interest charity since May Dr Pierre Ricaud & “Forces Femmes” association 2002; its primary mission is to help children and youth aged 6 to 18 in diffi culty (family, school or Since 2008, Dr Pierre Ricaud has supported the identity) to develop their artistic creativity. Force Femmes voluntary organisation that helps Through this partnership, Petit Bateau fi nances women over age 45 to re-join the world of work. 3 to 5 creative and artistic courses for children in Force Femmes supports women as they return to diffi culty and supplies the textile materials (fabric, a working life or create businesses through various thread, packaging, etc.) used in the workshops. actions such as personalized support, coaching sessions, group discussions and meetings with The children’s creations will be exhibited at the professionals. Petit Bateau sites.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 67 R ELATI ONSHIPS WIT H EN VIRONMENTA L ORGAN ISATI ONS

In 2014, the Group was involved in the «Inspirations» of Correns, organised by the Inspire organisation on Biodiversity issues, as well as the Botanical Society of France sessions in Nancy in early July. The Yves Rocher Foundation also spoke at the UNESCO Conference on Botanists of the 21st Century. LBV Yves Rocher has joined in environmental protection with many other voluntary associations and national and international institutions. The International Union for the Conservation of Nature (UICN) and the LPO are longstanding partners. At the French level, LBV Yves Rocher is a member of the Environmental Bureau of the Federation of of several voluntary associations in which it is Beauty (FEBEA) and renewed its membership in active, such as Orée, in which LBV Yves Rocher is the COS Cosmetics Group (Strategic Orientation co-chair of the working group on biodiversity and Committee) of the Foundation for Biodiversity is supporting doctoral work to imagine the future Research (FRB), taking on the vice presidency. use of ecosystem services, in coordination with the INRA. The company has also been a founding member Work on plant supply chain and their sustainability is being conducted with the Natural Resources Stewardship Circle (NRSC), as well as on an approach to issues of access and Benefit sharing (ABS) under the Nagoya Protocol, which was signed by the United Nations in 2010. The NRSC is a non-profit organisation whose founding text is based on the principles of the UN Convention on Biological Diversity, on those of the Declaration on the Rights of Indigenous Peoples, and on the UN Global Compact and the International Labor Organisation. The purpose of the NRSC is to collectively engage brands and suppliers in the supply of natural resources on a sustainable and ethical basis. Finally, acting in its own name and through its Foundation, the brand now has relations with international institutions such as the Convention on Biological Diversity (CBD) of the United Nations and with the UNCTAD.

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FAIR TRADE PRACTICES

ACTIONS UNDERTAKEN TO PREVENT CORRUPTION

In 2014, the Rocher Group implemented a Code of Business Conduct aimed at all its employees, suppliers, partners and sales agents as well as its co-contractors and distributors.

This Code of Conduct is intended, in compliance with the laws and regulations applicable to the IN 2014, THE Rocher Group, to create, in all the countries ROCHER GROUP where it operates, a minimum set of common rules in order to ensure the compliance of the IMPLEMENTED Group’s operations, to guarantee that each employee of the Rocher Group benefi ts from A CODE OF at least the minimum rights set out by the International Labour Organisation, and to ensure BUSINESS CONDUCT the development of a common corporate culture that benefi ts everyone. It is based on a number of AIMED AT ALL principles that the Rocher Group intends to apply ITS EMPLOYEES in the conduct of its business and specifi es the rules that guide the behaviour of employees in AND PARTNERS their professional practice. Moreover, the Group’s system of internal control provides procedures for checking on operational activities, particularly in terms of the separation of duties. The Group’s Internal Audit teams are particularly vigilant in this respect. Any risks of corruption are subject to specifi c examinations during audits.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 69 MEASURES T AKEN IN FAV OUR O F CONSU MER HEALT H AND SAFET Y

> Internal quality policy The French and Irish sites for the production of cosmetics have ISO 9001 «Quality Management systems - Requirements» certification from an independent recognized third party (Bureau Veritas) for the development, production and testing of cosmetic products. This guarantees that the products manufactured and packaged are controlled using established methods. Yves Rocher aims to put on the market only products that meet quality requirements. In addition, all the production sites (in and outside Europe) comply with «Good Manufacturing Preparation of an organic Calendula Extract Practices (GMP) for cosmetics» (ISO 22716), which provides for controls at the various stages of These checks cover the compliance of the products production (reception, checks during production, and components with established standards. A final inspection and the release of products by the “compliant” product or component (by its design quality of the site). and its development) is considered to be satisfactory in terms of product safety for the consumer. The checks carried out on bulk and finished products are generally: ◗ organoleptic inspections (appearance - colour - odour); ◗ physico-chemical inspections (viscosity, density, active ingredient contents, preservatives); ◗ microbiological controls (total germs, yeasts and moulds).

70 2014 corporate social responsibility report - GROUPE ROCHER IMPACT ON SOCIETY © Sophie Zénon

Perfumes Production site - Ploërmel, France

> Quality policy - Suppliers > Cosmetics and detergents Product / process-type audits are conducted on The Rocher Group pays special attention to suppliers. These help to ensure that the suppliers compliance with the regulatory frameworks are able to meet the quality requirements of the established for marketing authorizations Rocher Group, and to identify any weak points for the fi nished products that it sells. In this among the suppliers. If a supplier has certain respect, in Europe, the REACH (Registration, weaknesses but demonstrates its motivation to Evaluation, Authorization and Restriction of work with the Rocher Group and to support its Chemicals) regulations have a direct impact on growth, the Rocher Group Purchasing & Quality the vast majority of the Group’s products. As a Department has the capability to invest the time downstream user of raw materials, this means and resources needed to help this supplier deal cosmetics and home maintenance products, with its weaknesses by defi ning and implementing gifts, home fragrance products, accessories and corrective action plans. This helps to foster long- textile products. Ensuring the compliance of term relationships between Yves Rocher and the these products with the requirements of REACH suppliers. requires the involvement of all the business lines involved in their development and manufacture. > Safety and effi cacy in cosmetics Furthermore, through its professional representative A Center for Study and Research in Cosmetology bodies, the Group has been active in the discussions (CERCO) created by Yves Rocher in 1977 is that led to the development of these regulations, intended to test the safety, effi cacy and sensory whose principles are part of the policy that the Group characteristics of every formula on panels of has held for many years, namely, environmental women and men. Confi rmed by a state-of-the- protection and the health and safety of the workers art cosmetics monitoring system, the guarantees who come into contact with the raw materials, as of respect and safety for the skin provided by well as the end consumers. The work goes on in the Rocher Group are well-known to consumers these bodies in such a way that the industrial sectors around the world. concerned remain fully aware of their obligations.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 71 THE GROUP MAINTAINS A DIALOGUE WITH ITS SUPPLIERS AND SUBCONTRACTORS TO REDUCE RISKS AND PROPOSE ALTERNATIVE SOLUTIONS

The Group realized very quickly that many of its suppliers and subcontractors had only a poor knowledge of their own obligations and of their duties vis-à-vis their customers. Based on this observation, numerous training campaigns were conducted with them up to 2010 through various letters and surveys that aimed, in particular to: ◗ clarify their intentions concerning the registration of raw materials; ◗ spell out any measures taken by the Group,

© Christophe Brachet particularly with respect to modifications in specifications; Since 2007, depending on the current situation, all or ◗ communicate the exposure scenarios for some of the Group’s various businesses affected by cosmetics products drawn up by the trade. REACH meet 2-3 times a year to: These numerous exchanges led to the establishment ◗ share the knowledge they have acquired on of a genuine dialogue, which now greatly facilitates REACH; discussions about the internal qualification process ◗ centralize the information required for the for new materials or items, as well as for updating application of REACH; the documentation attached to these products. In addition, every year the Group develops, maintains ◗ decide on and implement any necessary actions and communicates a list of prohibited substances to vis-à-vis suppliers and subcontractors; its suppliers and subcontractors, with the dual aim ◗ inform and when necessary alert the Group’s of eliminating any that present a risk early on and General Management about any difficulties that helping the suppliers to come up with alternatives as might be encountered. quickly as possible. Thus in 2013, three working meetings were devoted Two issues have been the subject of particular to the development of an internal procedure developments under this regulation: first, designed to optimize the management of the substances of very high concern (SVHC), and second, Material Safety Data Sheets (MSDS) and Extended the processing of information conveyed in the eSDS Safety Data Sheets (eSDS) of cosmetic raw materials. (Security data record). In-house experts are involved in continuous training through their participation in training sessions organised in particular by the French Union of Chemical Industries (UIC). These experts belong to different departments of the Group: regulatory, research and development, purchasing, safety and the environment.

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A CENTER FOR STUDY AND RESEARCH IN COSMETOLOGY (CERCO)

created by Yves Rocher in 1977 is intended to test the safety, effi cacy and sensory characteristics of every formula on panels of women and men. © Christophe Urbain

With regard to the SVHC, they are the subject of > Textiles quality policy specifi c measures that are adapted to the nature (internal and suppliers) of the products. If they are banned in cosmetics, textiles and accessories, the Group carries out Quality is part of the DNA of the Petit Bateau analytical checks on representative samples brand. Petit Bateau’s quality policy is based on to ensure they are absent. For other types of the safety and quality of product use. Petit Bateau products, imports in particular, a content of less has gained an OEKO-TEX label, and thus imposes than 0.1%, as required by the REACH regulation, very strict standards in terms of toxicology. is required and is also checked by a series of Petit Bateau’s standards go beyond the REACH analytical assays. standards in place in Europe. Petit Bateau checks the quality of the components at various stages of The processing of information in the e-SDS production in its own laboratories or in external constitutes a major new challenge, due both labs. Petit Bateau includes its suppliers in its to the complexity of interpretation and to strategy by ensuring that they meet OEKO-TEX the implications in terms of the protection of standards, which represent a guarantee of their employees at industrial sites. This has led the textile know-how. Group to organize a team of experts responsible for making a diagnosis very quickly after receiving a raw material with respect to its use in cosmetics. A constructive dialogue is engaged with the suppliers in order to make this diagnosis. For detergent products manufactured under contract in Europe, a mapping was drawn after an audit of all the suppliers concerning the measures in place or planned to accompany the entry into force of the REACH regulations. This mapping also provides an opportunity for dialogue and continuous improvements with the Group’s external service providers.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 73 R ESPECT FOR INTE RNATI ONAL CONVENTI ONS A ND HU MAN R IGHT S

The Rocher Group strives to promote and respect the principles contained in International Conventions on human rights within the Group and in its sphere of influence. Based on the Group’s measures and procedures related to internal controls and human resources, it ensures that these rights are respected internally, in all the Rocher Group’s subsidiaries. Moreover, Purchasing Departement checks these issues by asking suppliers and subcontractors to make a commitment to respect international conventions on human rights, and in some

countries identified as «at risk», it carries out social © Dominique Rolland audits.

The Rocher Group’s internal measures to promote The Purchasing Department, for its part, ensures and ensure respect for the conventions of the that suppliers and subcontractors who have direct International Labour Organisation (ILO) relationships with the Group undertake to respect and ensure respect for the following international The Rocher Group is committed to respect the instruments, in particular the latest version in force: fundamental conventions of the International Labour Organisation, even in countries where the ◗ the Universal Declaration of Human Rights; Conventions have not been ratified. ◗ the UN Convention on the Rights of the Child; The point for the Rocher Group is to respect ◗ the UN Convention on the Elimination of All Forms freedom of association and recognize the right to of Discrimination against Women; collective bargaining, to strive for the elimination of all forms of forced or compulsory labour and ◗ the Conventions of the International Labour child labour, and to work to combat all forms of Organisation (ILO), including on forced and discrimination in employment and professionally. compulsory labour (Conventions 29 and It is the responsibility of the Human Resources 105), minimum age (Convention 138 and Department to ensure that these Conventions are Recommendation 146) and the prohibition of the respected and properly applied. worst forms of child labour (Convention 182). As preserving the environment is a core value of the Rocher Group, the suppliers and subcontractors under contract also undertake to comply with all the laws and various regulations in force that are applicable in the territory or territories involved with respect to the environment. The freedom of association and collective bargaining is implemented through compliance with the applicable laws and collective agreements in the countries where the Group operates, with it being understood that when such provisions are inapplicable due to the lack of a legal framework or because the business is too small, the Group ensures that other forms of dialogue with the employees will

© Dominique Rolland be set up.

Shea nuts harvest- Burkina Faso, Africa

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Certain measures dealing with discrimination were evoked in the section on anti-discrimination policy, it being understood that the protection of children is ensured by the following means: ◗ verifi cation of the age of employees hired by the Group’s employees; ◗ a demand made of suppliers and subcontractors doing business with the Group to respect and enforce the International Conventions on the rights of the child. Audit processes are used to verify compliance with this obligation. © Christophe Urbain

Fashioning, Petit Bateau, Troyes, France

> Social audit policy in countries at risk Cosmetics and detergents Cf. Stakeholder relations - social audit policy in countries at risk, P64. Textiles Suppliers working with Petit Bateau in areas deemed to be at risk (India, China, Vietnam, Madagascar) have earned several OEKO-TEX labels and ISO 9000 or even ISO 14000 compliance. They are of a limited size and there is always direct contact with the factories. The most critical countries have been avoided, including Bangladesh, which today is very exposed. Several times a season Petit Bateau suppliers receive a visit from Purchase or Quality teams, some of whom have been trained in carrying out simplifi ed audits on the basis of the sa 8000 standard. These evaluations give rise to plans for improvement, which are intended to improve the product quality and the production environment, thereby eliminating any risk factors. Collection Petit Bateau

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 75 20 METHODOLOGICAL NOTES PLANET RESPECT // GROUPE ROCHER 14 © Emmanuel Berthier METHODOLOGICAL NOTES

ENVIRONMENT

> Scope of the reports ◗ 962 stores operated internationally by the Yves Rocher brand directly in equity or on a lease The consolidation scope for the environmental reporting includes the production and distribution management basis; industrial sites for cosmetics, detergents and ◗ 635 outlets operated under the Yves Rocher brand textiles that belong to the Rocher Group: 8 by franchisees. production sites (Yves Rocher Villes Geff s, Yves Rocher Ploërmel, Yves Rocher Rieux, Yves Rocher ◗ 12 outlets operated in France by the Cork, Stanhome Venezuela , Flormar Sanayi, Petit Dr Pierre Ricaud brand directly in equity Bateau Troyes and Petit Bateau Tenmar) and or on a lease management basis; 11 distribution sites (Yves Rocher La Croix des Archers, Yves Rocher La Villouet, Stanhome Les ◗ The outlet operated in France by the Lauriers Verts, Petit Bateau Chapelle St Luc, Petit Daniel Jouvance brand directly in equity; Bateau Pont Sainte Marie, Yves Rocher Kain, Yves ◗ 362 outlets operated by the Petit Bateau brand Rocher Helsingborg, Yves Rocher Portugal, Yves in France and abroad in various forms and in Rocher Longueuil, Yves Rocher Russia, and Flormar Pazarlama). Also included are the six commercial subsidiaries. sites in France as well as the international commercial sites employing at least 250 people (Stanhome les Primevères, Yves Rocher Rennes, Yves Rocher Grenelle, Petit Bateau Réaumur, Yves Rocher Stuttgart, Yves Rocher Madrid). Then 1 laboratory site (Yves Rocher Roosevelt) and 1 tourism site (Eco-Hôtel Spa La Grée des Landes). In total, the data from 27 sites are consolidated in the environmental part of the reporting. The store network is excluded from the scope of consolidation, except when specifi ed in the text. In this case, this means 452 establishments in France that are operated directly by the Yves Rocher brand, and 122 establishments in France that are operated by the Petit Bateau brand in equity or on a lease management basis. The following are excluded from the stores perimeter:

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 77 > Details on the perimeters by environmental theme By “Cosmetics and detergents production» is For waste-related indicators, the words «Group» understood the activities of the six sites operated or “Rocher Group» refer to all the sites within by LBV Yves Rocher, which produce cosmetics the global scope, except for 4 sites: Stanhome and detergents for various Group brands. These Venezuela, Petit Bateau Morocco, Petit Bateau sites include Yves Rocher Villes Geffs, Yves Rocher Réaumur and Flormar Pazarlama. These sites Ploërmel, Yves Rocher Rieux, Yves Rocher Cork, are also excluded in their respective business Stanhome Venezuela and Flormar Sanayi. categories (cosmetics and detergents production / textile production / commercial sites / Cosmetics In order to compare them over time and over an Distribution). equivalent perimeter, the indicators showing the change in the impact of “cosmetics production» In order to compare them over time on an are calculated on the perimeter of the Group’s 4 equivalent perimeter (since 2010), the indicators main production sites, Yves Rocher Villes Geffs, illustrating the changes in the impacts of the Rocher Group and its business sub-categories are Yves Rocher Ploërmel, Yves Rocher Rieux and calculated on the same perimeter as mentioned Yves Rocher Cork (these sites cover 86% of the earlier, excluding 8 sites (Flormar Sanayi, Yves Group’s cosmetic production in 2014). Rocher Longueuil, Yves Rocher Portugal, Yves For indicators relating to energy and the Rocher Russia, Petit Bateau Chapelle Saint Luc, calculation of GHG emissions, the words «Group» Petit Bateau Pont Sainte Marie, Eco-Hôtel La or “Rocher Group» refer to all the sites within Grée des Landes, Yves Rocher Grenelle), which the global scope, except for the Yves Rocher represent 15% of the waste produced by the Group Longueuil site. This site is also excluded from its in 2014. business sub-categories (commercial sites). For indicators related to water consumption, the In order to compare them over time and over an words «Group» or “Rocher Group» refer to all the equivalent perimeter (since 2010), the indicators sites within the global scope, except for 4 sites: illustrating the changes in the impacts of the Petit Bateau Réaumur, Petit Bateau Pont Sainte Rocher Group and its business sub-categories are Marie, Yves Rocher Longueuil and Yves Rocher calculated over the same perimeter as mentioned Russia. These sites are also excluded in their earlier, with the exclusion of 7 sites (Petit Bateau respective business categories (commercial sites / textile distribution). Chapelle St Luc, Petit Bateau Pont Sainte Marie, Stanhome Venezuela, Yves Rocher Portugal, In order to compare them over time and over an Yves Rocher Russia, Flormar Sanayi and Flormar equivalent perimeter (since 2010), the indicators Pazarlama), which represent 7% of the Group’s illustrating the changes in the impacts of the energy consumption in 2014. Rocher Group and its business sub-categories are calculated over the same perimeter as mentioned earlier, with the exclusion of 5 sites (Flormar Sanayi, Flormar Pazarlama, Petit Bateau Chapelle Saint Luc, Stanhome Venezuela, Yves Rocher Portugal), which represent 9% of the Group’s water consumption in 2014.

78 2014 corporate social responsibility report - GROUPE ROCHER METHODOLOGICAL NOTES

> Indicators > Calculation of the stores’ energy The indicators presented are those monitored by consumption and GHG emissions the sites’ operational personnel. They refl ect the The 452 stores operated by the Yves Rocher Rocher Group’s commitments on environmental brand in France, in equity or management, form policy. the perimeter for the calculation of the energy consumption and GHG emissions of the Yves > Data Rocher stores. The data are collected through an online sharing Their large number and their diverse situations tool. Every month one or more contributors per (in shopping centers, city centers, etc.) make it site input quantitative and qualitative data on extremely complex to collect their actual energy water, energy and waste. This data is consolidated consumption. Knowing that the stores consume annually by the Sustainable Development only electricity, the method chosen was to analyze Department. Each site must then validate the the consumption of a representative sample of 26 consolidated data that are submitted to it. stores, and calculate their average kWh / sq.m / year. > Calculation of GHG emissions specifi cally, the average kWh / year / sq.m for The operating perimeter for emissions includes each generation of stores were calculated. There scope 1 and 2 of the accounting method of the are currently four generations: 3G, 4G, 5G and GHG Protocol (1). The emission factors used are Botanical Beauty Workshops (ACV®), the most those in the ADEME Carbone® Base (2). The share recent and most widespread version. of renewable electricity for each country comes (3) The 122 stores operated by the Petit Bateau from the Observ’ER . In some cases, the emission brand in France, in equity or management, form factors for electricity and the share of electricity the perimeter for the calculation of the energy from renewable sources are provided directly by consumption and GHG emissions of the Petit the suppliers. Bateau stores. For these stores, in the absence of their own values, the activity data provided by the ADEME was used in average kWh / sq.m / year. Thanks to these estimates, the total average energy consumption of the stores was then calculated. The factor for the emission of the ADEME Carbone® Base for electricity in France in 2014 was then applied to this activity data.

(1) Greenhouse Gas Protocol, an international standard for the calculation of carbon. (2) French Agency for the Environment and Energy Management (ADEME). (3) Renewable energy monitor.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 79 EMPLO YEE DATA

> Perimeter > Definitions of indicators By «Rocher Group» is understood all the companies rate of absenteeism: number of calendar days related to the parent company Laboratoires de absent (permanent employees) / number of Biologie Végétale Yves Rocher, as shown on page theoretical days worked (permanent employees). 26 of the Consolidated Financial Statements at 31 Days absent includes absences for work accidents December 2014. with time off, travel accidents with time off, and illness with time off. The scope of consolidation for the “labour information» section is based on the average Level of severity: number of calendar days absent annual workforce of the Rocher Group subsidiaries for work accidents with time off (permanent that had employees as of 31 December 2014. employees) x 1,000 / number of theoretical hours worked (permanent employees). Regarding the data described for pay and changes, working time, absenteeism, work accidents and Level of frequency: number of work accidents occupational diseases and training, the indicators with time off (permanent employees) x 1,000,000 / calculated are based on permanent employees number of theoretical hours worked (permanent only. employees). The subsidiaries Flormar Germany, Flormar Spain, Flormar Investments Netherlands, Flormar Cosmetics Netherlands and Flormar Russia are excluded from the total workforce. The subsidiaries of Flormar Sanayi (production), Flormar Pazarlama (distribution) and the subsidiaries Yves Rocher Slovakia and Romania are excluded from all quantitative social indicators (except workforce). > Data The quantitative data are collected through an online sharing tool. Every month one or more contributors per subsidiary input the data. These contributors are primarily the Human Resources managers of their respective subsidiaries. The quantitative data is then consolidated annually by the Sustainable Development Department, on behalf of the Human Resources Department, which checks the consistency and accuracy with the contributors. The data on the workforce and mobility are averages over the year 2014. The qualitative information is provided by the Human Resources Department of LBV Yves Rocher.

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SOCIAL

The information presented in the Fair trade practices section is provided directly by the Purchasing, Risk Management, Human Resources and Asia Operations (DOPA) Departments, and then integrated into the report by the Sustainable Development Department.

EVERYDAY, WE COMMIT 2014 corporate social responsibility report - GROUPE ROCHER 81 CORRESPONDA NCE T ABLE – GLO BAL R EPORTI N G INIT IAT IVE (GR I) R EFERE NCE DOCUMENT

REPORTING ART 225 GRENELLE 2 GRI 3.1 PAGES SOCIAL INFORMATION

Total workforce LA1 40 Workforce broken down by gender Workforce broken LA1 40 Employment down by age bracket Workforce broken down by region Hires, Redundancies LA2 40 Compensation ; Evolution of compensation EC1, EC5, LA3 42 Organization of work time LA 43 Organization of work Absenteeism LA7 43 Organization of social dialogue LA4 44 Labor relations Outcome of the collective agreements LA4 44 Health and safety conditions at work 45 Outcome of the collective agreements signed with trade LA9 48 Occupational health & unions regarding occupational health and safety safety Frequency and seriousness of incident LA7 45 Occupational diseases LA7 45 Policies implementated regarding training LA11 49 Training Total number of training hours LA10 50 Measures promoting gender equality LA14 51 Measures promoting the employment and integration LA13 51 Equal treatment of people with disabilities Policy against discrimination LA13 53 Respect for the right to organise and collective HR5 75 bargaining Promotion and respect Abolition of discrimination in employment and LA14 53 for the clauses of ILO occupation conventions Abolition of forced or compulsory labor HR6, HR7 74 Abolition of child labor HR6 74 ENVIRONMENTAL INFORMATION

Organization of the company to take into account environmental concerns. If applicable Environmental 9 evaluation and verification approachs. Training and information towards employees on 13-14 Environmental policy environmental protection Budget dedicated to environmental protection and 13 environmental risk mitigation

Financial provisions for environmental risks EN28, EC2 13

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CORRESPONDANCE TABLE – GLOBAL REPORTING INITIATIVE (GRI) REFERENCE DOCUMENT

REPORTING ART 225 GRENELLE 2 GRI 3.1 PAGES INFORMATIONS ENVIRONNEMENTALES

Prevention, reduction and fi xing of air/water/soil EN22 à EN24 15 Pollution and waste emissions management Prevention, recycling and cuting waste EN22 18 Noise pollution and others types of pollution EN25 19 Water consumption Water supply considering local EN8, EN9 20 resources Consumption of raw materials Measures taken to 22 Sustainable use of improve the effi ciency of raw materials use resources Energy consumption Measures to improve energy EN3 à EN7 33 effi ciency and better use renewable energies Land use 30 Greenhouse gaz EN16, EN17 EN18 34 Climate change Measures to adapt to climate change EN18 31 Biodiversity Measures taken to save and develop biodiversity EN12 à 15 20-34-36 preservation INFORMATION REGARDING COMMUNITY AND SOCIAL INVOLVEMENT PROMOTING SUSTAINABLE DEVELOPMENT

Regional, economic and social impact created Regarding employment and local development EC8, EC9 55 by the activity of the company Impact on local and neighbouring communities EC1, EC6 55 Conditions of the dialogue with the persons and 4.14 59-63-72 Stakeholder organizations relationship Philanthropic actions and community involvement EC1, 4.12, 4.13 65 Integration of the social and environmental issues within EC6, HR6, HR 7 60 Subcontracting and the sourcing policy suppliers Importance of subcontracting and integration of CSR in 4.14 60 the relationships with suppliers and subcontractors Fair operating practices. Actions implemented to prevent SO3, SO4 69 any kind of corruption Fair operating practices Measures implemented to promote consumer health PR1, PR2 70 and safety Other actions promoting human rights HR 74

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GROUPE ROCHER - Rapport RSE 2014