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2005 SUSTAINABLE DEVELOPMENT REPORT

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ORGANISATION<br />

AND MANAGEMENT<br />

Organisation<br />

The Executive Vice-President for the Production<br />

and Technology Department (DGT) has<br />

functional responsibility for SHE. He is a<br />

member of the L’Oréal Executive Committee<br />

reporting directly to the President of L’Oréal.<br />

He has a Senior Vice-President reporting to<br />

him who manages the SHE Department<br />

which is located within DGT. This Department<br />

is administratively tied to DGT but has grouplevel<br />

responsibilities across L’Oréal.<br />

The SHE Department is linked to each operational<br />

entity through SHE managers who<br />

coordinate the actions of local experts at each<br />

of their sites. Each Division or zone has a<br />

dedicated person or persons responsible for<br />

the management of SHE within their areas.<br />

This includes factories, warehouses, administrative<br />

sites, stores, and research.<br />

At the local level, SHE managers have responsibility<br />

for their operations. The number of<br />

people assigned this responsibility varies by<br />

the complexity of the operations and their size.<br />

For example, for a typical factory of 350 workers,<br />

3 to 4 full time staff are usually found in<br />

SHE department, while administrative sites<br />

typically have one person assigned this<br />

responsibility on a country wide basis.<br />

❯ The DGT SHE Department is responsible<br />

for:<br />

■ worldwide technical assistance in Safety,<br />

Industrial Hygiene and Environment,<br />

■ the technical supervision of experts and<br />

SHE specialists at all levels of the organisation<br />

on all sites and locations,<br />

■ developing and monitoring the application<br />

of internal standards and best practice through<br />

auditing and other measures,<br />

■ providing technical training on SHE matters,<br />

■ measuring and publishing our SHE performance<br />

internally.<br />

Coordination with<br />

the Director of Sustainability<br />

In <strong>2005</strong>, the Department of External Affairs<br />

took over the management of Sustainability,<br />

previously the responsibility of the Production<br />

and Technology Department. The SHE<br />

Department maintains an active partnership<br />

Sustainable Development Report_L’ORÉAL <strong>2005</strong><br />

with the new Director for Sustainability and<br />

the Sustainable Development Steering Committee.<br />

For example, we have appointed a dedicated<br />

member of the DGT SHE department<br />

as responsible for sustainability. This person<br />

is responsible for producing a sustainability<br />

newsletter which is published quarterly and<br />

distributed throughout L’Oréal, and works<br />

on new sustainability initiatives.<br />

Sharing best practice<br />

The SHE department organises many activities<br />

to share SHE best practice internally.<br />

This includes quarterly all day meetings in<br />

Paris of all regional SHE managers worldwide<br />

for factories and separately for warehouses.<br />

These meetings include a review of<br />

SHE performance, current issues and new<br />

initiatives. The SHE department also has a<br />

number of ongoing task forces comprising<br />

these members for the development of new<br />

standards, best practices, and technologies.<br />

Quarterly training sessions are held for new<br />

SHE staff to familiarise them with SHE management.<br />

Finally, a three day worldwide SHE<br />

conference is held every two years.<br />

We also participate in many technical organisations<br />

which allows for learning, benchmarking<br />

and sharing of best practice. Many<br />

of these organisations are international in<br />

their scope, such as the Conference Board<br />

(Health & Safety and Environmental Councils),<br />

International Occupational Hygiene<br />

Association, World Business Council on Sustainable<br />

Development and others. We take<br />

part in quarterly meetings with the worldwide<br />

SHE managers of other multinationals<br />

to share best practice and compare our SHE<br />

performance data.<br />

SHE management systems<br />

L'Oréal makes use of several different but<br />

internationally recognised SHE management<br />

systems including OHSAS 18001, the Occupational<br />

Safety and Health Administration<br />

Voluntary Protection Programme (OSHA VPP)<br />

in the United States, and ISO 14001.<br />

As of March 2006, all but two factories were<br />

fully ISO 14001 accredited. The remaining two<br />

sites are expected to achieve their accreditation<br />

in 2006 thus fulfilling the goal set in<br />

2003 to have every L’Oréal factory accredited.<br />

Six of our seven factories in the United States<br />

are in the OSHA VPP. This is a government<br />

supported management system that includes<br />

very strict entrance and performance requirements<br />

representing the best of the best in<br />

safety and health management. The remaining<br />

factory not in this programme is in the<br />

process of applying. This programme is available<br />

only in the United States. We are ahead<br />

of the public commitment we made three<br />

years ago to have all of our manufacturing<br />

sites in this programme within five years.<br />

In Europe, Africa and the Middle East, 15 of<br />

our 23 factories are registered to OHSAS<br />

100% factories certified to ISO 14001 by 2006,<br />

Piscataway plant (United States).

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