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‘Make life more beautiful’ has always been the Clarins Group’s vision. This motto helps guide our approach to responsible beauty and gives mea-ning to everything we take on for our employees, our clients, the planet and society itself, for which we humbly think we have a role to play.

In the social sphere, for example, we put in place a universal maternity leave that guarantees all our employees, worldwide, a minimal level of health coverage. Our long-term ambition is to align the social benefits we offer our employees, on a global scale. Another example that illustrates our commit-ment: L’Oréal’s social behavior was a determining factor to choose them as a partner for the sale of perfume brands initiated in March 2019. We wanted to protect the teams who had worked with us for so many years.

Furthermore, we are constantly stri-ving to improve our product offer to better meet our clients’ needs. Two innovations illustrate just how far we’d go. For younger clients, we launched the My Clarins range of vegan pro-ducts, with 88% of natural origin ingredients. We also developed a new range of facial cleansers and for the very first time, all the plants used in the Gentle Complex are from our very own, 100% organic ‘Domaine Clarins’ in the heart of the French Alps. This symbolizes our ambition to become an exemplary brand when it comes to ingredient sourcing and traceability. In this spirit of on-going innovation, we are finalizing the reformulation of

our entire skin care offer to align with ‘Green Beauty’ requirements around environmental impact, social conside-rations, and health aspects of all our ingredients and formulas.

We are striving for more client invol-vement in our responsible beauty actions, much like we’ve done since 1992 with the Mugler Source (fragrance refill system) which has become even more eco-friendly. We are also targe-ting packaging in our quest: the weight of the jars used in the My Clarins range was reduced by 30% and the packa-ging for the new sun range contains 25% recycled plastic. And we’re com-mitted to only using recyclable pac-kaging materials for all our products beginning in 2025. Our long-term goal is to promote recycling by raising awareness among consumers, espe-cially by offering the possibility of col-lecting empty packaging at sales sites. This concept is currently being tested in Canada.

The Group’s ‘responsible citizen’ dimension is part of our identity. In 2019, we also celebrated the Arthritis Foundation’s 30th anni-versary, proud to highlight this major player in medical research. Our initiatives are like little seeds that are planted and from which we see grow some amazing results like the 4 million school meals distributed via the FEED program in 2019. Thanks to our inter-national presence and our employees’ commitment, all these projects are growing every year and are making a real impact.

“Structuring advancesin line with our vision”

By Jonathan Zrihen – President

“Our ambition is to become an exemplary brand when it comes to ingredient sourcing and traceability.”

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RESPONSIBLE INGREDIENTS

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SAFE, ECO-DEVELOPED FORMULAS

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ECO-DEVELOPED PRODUCTS

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RESPONSIBLE PURCHASING

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LOW-IMPACT OPERATIONS

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ON-GOING COMMITMENTS

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DEDICATED EMPLOYEES

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OUR VISION OF RESPONSIBLE BEAUTY

by Jonathan Zrihen

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A committed company…

AZZARO

CLARINS

MUGLER

MYBLEND

4SKIN CARE & MAKE-UP FRAGRANCE FASHION

3 SECTORSHEADQUARTERS

IN PARISMANUFACTURING SITES IN FRANCE

INTERNATIONAL LOGISTICS CENTER

REGIONAL LOGISTICS CENTERS

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“To be known as the company that listens the most to its clients, the closest to its employees and the most commit ted to guaranteeing product quality while adhering to responsible beauty practices”

THE GROUP’S VISION:

SUBSIDIARIES

HUB

HUB + SUBSIDIARY

MANUFACTURING SITE

10 000EMPLOYEES COMMITTED TO RESPONSIBLE BEAUTY

83 %ARE

100 %MADE IN FRANCE MANUFACTURING

91 %OF SALES MADE THROUGH EXPORT

PRODUCED WITHA FABRICATION

47.5 %OF OUR EMPLOYEES RECEIVE TRAINING(THOSE WITH A PERMANENT CONTRACT, ALL PROFESSIONS, EXCLUDING PRODUCT TRAINING)

80 %OF OUR EMPLOYEES HAVE A PERMANENT WORK CONTRACT

95EXPERTS DEDICATED TO RESEARCH

65 YEARS

FRENCH FAMILY GROUP

WITH INDEPENDENT

CAPITAL, IN 2019

CLARINS CELEBRATED

ITS 65TH ANNIVERSARY

100 %ENERGY

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2018

• Support for Plastic Odyssey to raise awareness around plastic pollution in the oceans and to build low-tech, open-source machines that help remove plastic waste.

2019

• 524,000 trees planted worldwide with PUR Project since 2011.

• More than 29 million school lunches provided since the start of Clarins partnership with FEED.

2015

• ISO 14001 and ISO 50001 certification for all 3 industrial sites in France.

• First honey harvest from the rooftop hives in Paris.

2011

• Launch of the Mugler Forest and Santa Rosa Botanical Garden in Peru with Pur Project.

2013

• Roland Jourdain receives the ClarinsMen Environment Award for the Explore Foundation which supports initiatives with a positive impact.

2010

• Biodiversity partnerships with Tchendukua and Deyrolle.

• The ClarinsMen Environment Award given to Bertrand Picard for the Solar Impulse airplane.

• Eco-calculator made available to analyze product’s environmental impact.

2014

• New eco-designed office building in Paris (eco-certified BREEAM and HQE).

1954

• Jacques Courtin-Clarins founded Clarins.

2006

• Creation of the Courtin Arthritis Foundation, a continuation of the APR.

• Best Laboratory Practices accreditation (A rating) for the Pontoise site.

1965

• Profit-sharing for employees.

1984

• When introduced on Stock market, stocks and stock-options offered to all employees.

2004

• First ClarinsMen Environment Award, given to ethnobotanist Jean-Pierre Nicolas for his association Jardins du Monde.

1993

• Partnership with Alp Action to help protect biodiversity in the Alps.

1999

• Clarins stops using plastic bags.

1997

• Creation of the ‘most Dynamic Woman’ award which supports projects dedicated to helping children.

2008

• First Carbon Assessment.

• Drinking water access project in Morarano and school expansion in Marovoay (Madagascar).

• Diffusion of the Group’s responsible commitments.

• Left the stock market: long-term strategy in place.

2007

• Creation of the Group Clarins Responsible Development Department.

• First formal fair trade agreement in Madagascar.

2012

• Water access programs in Madagascar and Burkina Faso.

• Start of support for FEED, a worldwide nutrition initiative for school age children.

• Legion of Honor given to Christian Courtin-Clarins by the (French) Ministry of Ecology.

1964

• Launch of the 100% pure plant extract oils.

2017

• Fair trade practices allowed a school to be built in Madagascar with help from Jardins du Monde.

• 10% recycled plastic incorporated into the new Double Serum bottle.

2016

• The ‘Domaine Clarins’ opened in the French Alps.

• Launch of a pilot agroforestry program to improve the sourcing of the sugar beetroot used in perfumes (alcohol).

• Azzaro began support for the Under the Pole 3 expedition. • Partnership

with Pro-Natura International in Brazil to help preserve natural areas.

1992

• Launch of Thierry Mugler perfume ‘Angel’ refillable fragrance.

1989

• Creation of the Association for Polyarthritis Research (ARP).

1991

• Launch of Anti-Pollution Make-Up.

… from the beginning

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OF THE PLANTS USED IN CLARINS CATALOGUE GROWN IN ORGANIC FARMING 20

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OF THE PLANTS USED IN CLARINS CATALOGUE

ARE FROM ORGANIC FARMING

RESPECT FOR THE EARTH,

PLANTS AND MANKIND

The Group has always taken inspiration and key ingredients from the plant world. Clarins Herbarium counts more than 200 plants from 40 different countries. The quality of Clarins products is intricately linked to the quality of the raw materials used and knowing their source is a major consideration, to secure the most qualitative possible supply and to offer clients optimal transparency.

For Clarins, environmental and social concerns have always been linked. When plants are sourced in developing countries, the Group became committed, early on, to fair trade practices. Plants are purchased at a fair price and harvesting practices that respect the soil are favored. Clarins has also initiated social programs that support local populations and is associated with initiatives put in place by its suppliers. Eleven programs are currently in place today: 5 in Madagascar, 4 in Burkina Faso and 2 in India.

Thanks to loyal clients and the progression of sales, Clarins was able to increase by 47% the total amount of sustainable bonuses paid in 2019, reinforcing long-term relationships with farmers and harvesters.

Every year, the study of our supply chains widens and focuses on suppliers that best respect the Earth, Plants and Mankind. In 2019, the Group carried out a cartographic study on its entire raw material catalogue to evaluate the social and environmental aspects as well as the lasting nature of the supply chain.

PRIORITY TO INGREDIENTS

FROM ORGANIC AGRICULTURE

By creating the ‘Domaine Clarins’ in 2016, 10 hectares in the heart of the French Alps dedicated to organic farming practices and observing plant life, Clarins has demonstrated that it is possible to go extremely far when it comes to respecting nature. In 2019, the brand revamped its range of Facial Cleansers with Alpine Herbs. The key ingredients for the new range (to be launched in 2020) come from this open-air laboratory. Clarins wants to prioritize ingredients from organic farming for all new plant-based ingredients. Every year, the Group converts several plant extracts to being of organic origin. In 2019, three plants were converted: soapwort, bison grass and teasel. Four new organic raw materials were added: wakapamp, sunflower unsaponifiable, cranberry oil and gentian.

The Group is also committed to protecting endangered species. In 2019, Clarins Japan helped install a new cultivation site for a rare freshwater algae (Suizenji-nori) after a study was carried out with Pur Projet. 2000 trees were planted to protect the area from landslides in the Kumamoto region, in southern Japan. From this algae, known for its anti-inflammatory properties, Clarins extracts a molecule used in White Plus powder, exclusive to the Asian market.

Demonstrate the highest standards in the choice of our ingredients

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70 hectares of coconut trees grown in respect for the earthThe coconut water used in My Clarins products comes from coconut trees grown at the Farm of Lagoa Funda, one of the pioneer organic plantations in the country, situated in the state of Ceara. The 11,000 trees are grown without pesticides and with respect for the earth. The soil is irrigated by a natural freshwater lagoon, protected from the heat by dried, ground up palm leaves and enriched with goat and sheep manure that is also effective weed control.

My Clarins is the name of a new skin care product range for women under age 30. Launched in 2019, it has simple, effective formulas that are vegan-friendly and that concentrate all Clarins Laboratories’ “green beauty” expertise.

Nine products whose vocation is to offer young women all the hydration and radiance their skin needs and to improve its quality: the My Clarins range has the unique aspect of having 88% of its ingredients from natural origin. For this new generation of skin care, Clarins Research has developed short formulas, with extracts of fruits, plants and seeds. The range is not available in China which means that no animal testing was carried out and the range can be labeled “vegan-friendly”.

NATURE-INSPIRED

RESEARCH

The ‘recipe’ for each My Clarins product was developed with specific ingredients to meet the specific needs of the skin: they nourish, remove toxins, protect from the harmful effects of pollution, help restore radiance. Depending on the product, several ingredient complexes were used: the Healthy Skin (In&Out) Complex, based on organic coconut water and Alpenrose extract activates cellular functions to enhance the purification process; the new anti-pollution complex contains extracts of furcellaria, nipplewort and white horehound to help protect the skin from the harmful effects of both indoor (domestic) and outdoor pollution. Finally, a “pretty skin cocktail”- based on 14 plants- helps fight imperfections and promotes hydration and radiance. In coherence with these formulas, My Clarins packaging were eco-developed and incorporate recyclable and recycled materials (see page 17).

Beneficial action on cellular nutrition

Clarins Research highlighted the role of organic coconut water in the delivery of necessary nutrients (vitamins, amino acids and trace elements) for healthy skin cells. By optimizing the function of the nutrients’ transport channels, organic coconut water helps improve nutrients’ bioavailability.

Certified organic The coconut water used in the My Clarins range is 100% vegetal and is edible (from a food supply chain). It is certified organic and comes from Brazil, harvested when the coconut is young and green, meaning, at a time it is most nutritious.

Coconut water is a natural reserve of fresh water found inside a coconut. The water found in a green coconut (about half a liter) is very rich in essential nutrients (water, vitamins and trace elements). This highly nutritive water is responsible for the development of young coconut plants in soil that lacks water and nutrients. Coconut water is a source of life for its species.

A natural reserve of fresh water

MY CLARINS NATURAL INGREDIENTS

5 certified organic extracts:organic coconut water (see right),organic orange flower water,organic goji berry extract, organic strawberry tree extract,organic shea butter.

5 leaf and flower extracts:Alpenrose extract, meadowsweet extract,huang qi extract,white horehound extract,nipplewort extract.

4 fruit extracts:fig extract,organic goji berry extract,tamarind pulp acids,organic strawberry tree extract.

3 seed-based ingredients:acerola seed extract,organic shea butter,moringa extract.

3 plant waters:organic coconut water,robinia flower water,organic orange flower water.

1 algae extract:furcellaria extract.

88 %* of natural origin ingredients

* Except Poreless and Clear-Out

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PROGRESSIVE

REFORMULATION

OF OUR PRODUCT OFFER

From the beginning, Clarins products have been formulated and developed based on three indispensable considerations: safety, efficacy and sensoriality. And, according to the idea of on-going improvement. For example, Double Serum’s formula is now on its 8th generation. This system, of “open” formulas, includes the idea of eco-development. Initiated in 2017, Clarins Research introduced an internal pilot tool called the Green Score which makes it possible to rate all the ingredients and formulas according to their impact on the environment, social concerns, and health aspects. The goal? To select the best mix of ingredients to develop formulas that best guarantee consumer safety and protect the environment, without compromising efficacy or product sensoriality.

Clarins reformulates all the products in its skincare catalog according to these specifications and, gradually, relaunches or replaces the existing ranges of products.

MINIMIZE PRODUCTS’

ENVIRONMENTAL

IMPACT

On the other end of a product’s lifecycle, Clarins is concerned about the impact its formulas have on the environment, especially the foaming gels and sun care formulas that can end up in rinse water or in natural areas. In terms of biodegradability and evaluating the impact formulas have on marine life and coral, the Group has used test protocols adapted to ingredients over the last few years.

To go even further, Clarins initiated a partnership with two universities, eco-toxicity experts, to develop specific methods that consider the complexities of cosmetic products. The second phase of this 3-year project will be to capitalize on test results to select upstream ingredients to use in formulas to minimize their impact on the environment.

Develop ever-safer formulas for the consumer and the environment

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OF SUN AND RINSE-OFF FORMULAS TESTED

BIODEGRADABILITY:

OF THE FORMULAS WERE EVALUATED USING

THE GREEN SCORE

TOTAL NUMBER OF RAW MATERIALS USED

NUMBER OF ORGANIC RAW MATERIALS USED

TOTAL NUMBER OF PLANTS USED

NUMBER OF ORGANIC PLANTS USED

PLANTS WITH SUSTAINABLE BONUSES

703 69 208 85 10

RAW MATERIALS Active molecules, Excipients, Fragrances, Filters…

PLANTS

ZOOM IN ON INGREDIENTS (2019)

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“T here is always room to improve a formula”

Since its creation, Clarins has paid close attention to the impact its ingredients and formulas might have on the environment by relying on constantly-evolving, sophisticated methods that favour scientific discoveries.

Explanations by Nathalie Issachar - Clarins R&D Director.

Whether it’s to evaluate safety, efficacy or product acceptability, tests are a ‘must.’ Beyond classic tests, Clarins comes up with innovative protocols to best meet consumers’ needs.

RIGOROUS, INNOVATIVE

PROTOCOLS

To ensure product safety and to measure real and perceived product performance, Clarins conducts several types of evaluations with strict requirements, and draconian rules in terms of the quality of the tests being conducted along with taking data into consideration. For products with high potential and to be certain to offer clients the most adaptive solutions, the Group relies on partnerships with universities in order to receiving scientific validation of its innovations. The results of these evaluations are the object of peer-reviewed scientific publications (6 in 2019), posters and targeted communication.

POLLUTION, SENIORS, EMOTIONS,

CONNECTED BEAUTY

In 2019, the department of Evaluation Research worked primarily on four themes: pollution, seniors, emotions and connected beauty. Pollution is not a new subject for Clarins, who was one of the first companies to propose solutions from 1991. In 2019, Clarins Research studied the impact pollution can have on the skin using ‘connected’ tools, with evaluations carried out via mobile apps. A study carried out for a year with 300 women worldwide made it possible to measure the impact outdoor pollution (particles), UV rays, UV + particles, pollen and blue light can have on the skin.

Clarins wanted to also better understand different aspects of the skin in older adults, especially the interaction between microcirculation and signs of ageing. These measurements made it possible to better evaluate the effects products might have on skin’s luminosity.

For Clarins, consumers well-being has always been a priority. To capture products’ well-being dimension, the brand developed an original technique to measure unconscious parameters that help define emotions sparked by a fragrance for example.

Finally, Clarins uses “connected” beauty to evaluate product evolution from day to day (remotely) and accompanies clients in their skin care regimen. An interesting approach in following a person’s experience with acne for example.

Katell Vie – Clarins Laboratories Research and Evaluation Director

“T hese evaluation methods allow us to of fer the solutions best suited to the needs, expressed or not expressed, of consumers, and thus to be more relevant and ef fective.”

WHAT IS THE GREEN SCORE?

Each ingredient, key molecule or excipient is carefully scrutinized. A list of 10 criteria based on 3 themes was drawn up (objectified by 18 indicators). The 3 themes are the environment, social implications, and health considerations. The raw material is therefore evaluated under multiple aspects: origin, natural or synthetic, absence of pesticides, water footprint, country of elaboration, both from an environmental perspective (processes, carbon footprint…) and a social one (CSR practices and Ecovadis ratings of suppliers). The overall rating of the formula is achieved by adding scores obtained by evaluating the ingredients it houses. At the end of 2019, 100% of the ingredients and formulas used by Clarins were scored.

WHAT IS YOUR HOPE FOR

CLARINS R&D DEPARTMENT

IN TERMS OF SUSTAINABLE

DEVELOPMENT?

In our laboratories, our responsibility is to minimize the impact each one of our ingredients and finished products have on the environment. Both what we take (from nature), what we impact and what we use (water and energy). The Green Score tool allows us to make the right choice regarding ingredients, key components, or excipients. Between two gelling agents for example, we will select the one that makes it possible to obtain the desired texture and stability and the best score in terms of “sustainability” for the final formula. With the number of criteria we take into consideration, there is always room to improve a product. Tomorrow, we will add other criteria based on any new information we learn about the impact our products might have on the environment and health.

BESIDES THE GREEN SCORE,

WHAT OTHER WAYS

EXIST TO MAKE

IMPROVEMENTS?

We are working on how we develop formulas. For example, we are looking to reduce the temperature used in the process of making emulsions, perhaps even not having to heat them at all. We have found new surfactants which make it possible to use less energy. Even if on an R&D scale this doesn’t seem to represent much, the recipe will be used on a larger manufacturing scale thus making a huge difference. In 2019, we pinpointed a method to calculate the impact of a lower-temperature production process or even cold, on overall energy use at the production site.

Evaluate to bet ter innovate

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REDUCE AND OPTIMIZE

RESOURCES

For the last several years, Clarins has adopted the ideas of ‘eco-development’ into every new packaging development project. In 2019, the Group put in place an internal tool called the ‘Pack Score’ which, much like the ‘Green Score’ for ingredients and formulas, made it possible to evaluate and compare different packaging ideas for the same product. The goal is to continually improve 100% of new developments around 8 criteria of eco-development: material and its impact, the percentage of recycled material, lightness, bulk, decorative elements, simplicity of the packaging, end of life considerations and the level of restitution of the formula. This activity helps make the Group’s vision a reality: reduce resource use, increase the amount of recycled materials used and develop recyclable packaging.

This approach is a global one. It favours responsible materials (all outer cartons and corrugated pieces are sourced from sustainably managed forests) and reducing weight and volume (suppression of product wedges and inserts), along with achieving lighter containers (use of recyclable and recycled material). New packaging ideas are constantly being studied with suppliers

to use less resources but also to develop ways to refill products, like what was successfully done for fragrances (see page 18).

A STRONG COMMITMENT

FOR 2025

Clarins teams are working to make steady progress in terms of incorporating recycled materials in packaging (which reached 12% in 2019 for retail products). Since 2012, all glass packaging used by the Clarins brand has contained at least 25% recycled glass and since 2019, all new plastic packaging should incorporate some PCR (post-consumer recycled) plastic.

The Group’s commitment is to reach 100% recyclable packaging by 2025 by favoring a certain approach to eco-development: the least number of different materials possible, materials that are easy to recycle and can be easily separated by the customer to facilitate sorting when the product is finished.

Develop packaging within a circular economy

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INSTALLATION OF THE ‘PACKSCORE’ TOOL AND

MEASURING THE PACKAGING ENVIRONMENTAL IMPACT FOR ALL NEW PRODUCTS

ECO-DEVELOPED PACKAGING

FOR MY CLARINS PRODUCTS

In line with the positioning of this new-generation product range (see page 10), product packaging’s were developed with the goal of minimizing resources. The adapted design of the 50ml jar made it possible to reduce plastic use by 26% (compared to the usual amount used for the same contents). Packaging was lightened by 30%. The day cream, night cream and mist incorporate recycled glass and packaging for the cleansers have recycled plastic. All packaging can be recycled, except for the two targeted products Pore-Less and Clear-Out.

Technical drawing and photo of My Clarins 50ml jar.

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Eco-development is at the heart of the Mugler FountainAn iconic example of luxury eco-development ahead of time: the Mugler Source became the Mugler Fountain in 2019 and is now the fourth edition developed in the name of eco-development. Sandrine Groslier, the General Director of the Clarins Fragrance Group explains more.

Explanations by Sandrine Groslier - General Director of the Clarins Fragrance Group.

- 54 %environmental impact on average

- 87 %impact on climate change on average

- 21 %environmental impact on average

- 46 %impact on climate change on average

WHAT IS THE DIFFERENCE

BETWEEN THE MUGLER SOURCE

AND THE MUGLER FOUNTAIN?

The Mugler Fountain is a perfect example of the circular economy. It was developed using an eco-development approach which means that all its parts can be taken apart and therefore repaired. Instead of producing an entirely new unit, we wanted to be able to reuse as much as possible and make each part last as long as possible. The new Fountain required almost 4 years of development before being launched worldwide. To be able to develop and objectively measure its environmental performance, we worked with EVEA, an independent consulting agency in the eco-development of products and services.

WHAT WAS THE GOAL OF

CREATING THIS NEW FRAGRANCE

FOUNTAIN?

The Fountain represents almost 15% of the Mugler brand’s turnover. Its an iconic service for the brand and was created in 1992 at the same time as Angel. Through this reinvention, we wanted to reinforce our approach to responsible innovation through committed choices: reduced weight and volume, the use of new glass cartridges that are completely recyclable (except for the caps) and made with 25% recycled glass and a unique auto-stop system when filling a bottle.

We have almost 12,000 Fountains worldwide, a real service that incarnates the values of “luxury for all” of the Mugler Perfume brand. Since 1992, almost 900,000 liters of fragrance have been refilled or the equivalent of 36 million bottles 25ml that have been refilled!

HOW IS

THE NEW FOUNTAIN

PERCEIVED?

The new Mugler Fountain is very popular with both customers and sales staff. In stores, it represents a unique contact point for our brand. It is a strong aesthetic element, an object of sculptural art, that can be surprising in a retail space. It’s also an opportunity to educate customers and highlight the expertise of our sales personnel. For this occasion, we redesigned the furniture and produced specific digital content. The refillable aspect of our fragrances’ bottles is mentioned in all our communication efforts.

HOW DOES IT IMPACT THE

BRAND’S IMAGE?

Luxury isn’t only a question of excellence and refinement: in these modern times, it is also part of an experience that should leave a mark, both tangible and intangible, an experience that can’t be quantified. With the Mugler Fountain, eco-development, combined with creativity, nourishes the promise of a more responsible luxury and just as exclusive.

* Source:

EVEA – Comparison between the Source S3 and the Fountain (2018). 6 indicators of environmental impacts were measured: climate change, creation of photochemical ozone, eutrophication, depletion of resources, water use, non-renewable energy use.

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ROLL-OUT IN 10 NEW SUBSIDIARIES WITH

OF SUPPLIERS SCORED THE FIRST YEAR

LAUNCH OF ECOVADIS

IN

PILOT COUNTRIES

ECOVADIS’ RATING SYSTEM

EXPANDED TO FOUR PILOT

SUBSIDIARIES

More widely speaking, Clarins reinforced its program to accompany its most important suppliers (above 5000 euros annually) using a ratings platform developed by Ecovadis. At the end of 2019, more than 90% of purchases made by the head office were concerned. The goal is not only to ensure that the company is working with partners who share the same values and vision, but also to help those who are looking to make progress and to share knowledge and good practices. Four subsidiaries were involved in this quest in 2019: Mexico, Switzerland Hub (agents and travel retail), China and Japan. The goal is to extend this system to all subsidiaries and adopt the Group’s purchasing policy to minimal thresholds around the four CSR areas: environment, business ethics, human rights and responsible purchasing.

HIGH VIGILANCE FOR SENSITIVE

SUPPLY CHAINS

Clarins ambition is to be able to trace, to the fullest extent possible, the sourcing of ingredients to guarantee traceability and transparency for its supply chain network. The company hopes to play an important role in the development of responsible beauty, leaving in its wake and among its primary suppliers who in turn do the same thing with their own partners. The short-term goal is to cover all ecosystems of suppliers the Group has worldwide.

This quest for transparency is especially strategic for raw materials with strong environmental and social stakes such as mica and palm oil. Over the last few years, Clarins has limited the sourcing of natural mica (used in powders and make-up products) to only three suppliers and holds sub-contractors to the same high standards. The Group participates in a Responsible Mica Initiative (RMI) which strives to put in place a fair supply chain, both responsible and lasting, in India, especially in Bihar and Jharkhand where mica is practically the only source of revenue for this region. In 2019, significant progress was made to improve access for local populations to health care, education, water and sustainable agriculture in order to diversify their resources.

Clarins uses raw materials derived from palm oil. To better control its sourcing and to establish a very thorough traceability of its supply chain, the company chose to use this collaborative approach.

Clarins joined the ASD (Action for Sustainable Derivatives), a platform that unites companies across the cosmetics industry, and also detergents and oleochemicals, with the goal of accelerating setting up a responsible supply chain, especially around zero deforestation and improving work conditions for local communities.

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GERMANY ACQUIRES

A COGENERATION

HEATING SYSTEM

Clarins Germany made the choice of installing a cogeneration system to replace the heating system they had at the Starnberg site in Bavaria. From the same energy source, cogeneration makes it possible to produce electricity, along with heat, that can be used directly at the site. This has several ecological and economic advantages: an increase in energy performance (reduced use by 40%), lower costs, reduced CO2 emissions by more than 20% and guarantees supply.

OPTIMIZE ALL PRODUCTION,

MANAGEMENT AND

DISTRIBUTION OPERATIONS

When the new head office building in Paris was built in 2014, it was a strong sign by the Clarins Group to demonstrate its desire to align environmental performance of its operations with its actions around responsible beauty and to ensure comfort and well-being for employees. The building received two certifications: High Environmental Quality (raised to “exceptional level” from 2016) and BREEAM. It has the highest performing installations not only in terms of isolation and energy but also in terms of climate and acoustic comfort.

In France, environmental policy is ensured by the HSE department across the three industrial sites (Amiens, Pontoise and Strasbourg) which have received the ISO 14001 and 50001 certifications. Internationally, it is under the responsibility of the subsidiary presidents who apply environmental policy to their respective sites using locally adapted initiatives.

As far as energy use, the Clarins Group has made much progress towards its goal of having 100% of electric use from renewable sources by 2020. All the sites in France already have contracts that favour green energy. During their move toward the end of 2018, Clarins Australia moved to 100% green energy and Switzerland, who already produces part of its energy via solar panels and complemented this by purchasing contracts of renewable energy. These choices have already made it possible to reach 70% of the goal (of consuming only renewable energy) in 2019. The Group also continues to look for adapted sustainable solutions in countries where we do not own the property.

Transportation considerations were a little complex in 2019. Clarins faced a significant and sudden increase in demand for products in several regions. This situation confirmed a strong ability to adapt operations so that products were delivered on time but did not allow the Group to maintain its commitments in terms of transportation. For example, the hubs had to rely more on air freight to meet delivery deadlines. Based on that, Clarins is even more committed to paying closer attention to product shipping to meet the goal of 2% of the volumes shipped by air freight by 2025.

Mastering the use of resources and reducing greenhouse gas emissions

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OF THE ELECTRICITY USED FROM RENEWABLE SOURCES

OF THE ELECTRICITY USED* BY THE GROUP WAS FROM

RENEWABLE SOURCES

*At all Clarins Group sites, including those that Clarins does not own but operates

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HAVE GROWN OVER TIME

Social engagement is part of Clarins foundational vision and is organized around three priorities: health, children and biodiversity. All projects initiated and supported by the Group have this in common: their longevity, their worldwide reach, employee dedication and client contribution (through special charitable beauty buys).

A highlight of 2019 was the 30th anniversary of the Arthritis Foundation. This was celebrated as a grand evening gala that served as a special fundraising event. Created by Jacques Courtin-Clarins in 1989 (under the name Association for Polyarthritis Research, or APR), the Arthritis Foundation has become an important pillar for research on joint disease (see the interview with Olivier Courtin-Clarins p. 26).

Fore more than 20 years, thanks to the Clarins Award for Childhood (ex ‘Dynamic Woman’ Award), the Group supports non-profit organizations who work to help children in need. In 2019, Clarins launched a new product sales initiative, a limited-edition of Moisture-Rich Body Lotion with Neroli with packaging illustrations by Elisa Tovati, a singer and an actress, as well as the ambassador for the Princess Margot association, which Clarins supports. Another iconic program that supports children is the FEED program, initiated by the American subsidiary. Since 2011, FEED has helped provide more than 4 million school meals a year. This nutrition helps maintain regular school attendance and access to education.

PROGRAMS TO PRESERVE

AND REGENERATE NATURE

Biodiversity has always been a theme dear to Clarins and drives our commitment to protecting nature, another foundational belief. Among the many programs supported, the Group has partnered with Pur Projet (founded by Tristan Lecomte) since 2011 to fight climate change and deforestation. Through the Seeds of Beauty program, Clarins supports several reforestation and agroecological projects developed with small growers worldwide, especially in Indonesia over the last few years. Each subsidiary is encouraged to find its local chapter if desired. The Group has already helped plant 524,000 trees worldwide.

2019 is the year of the realization of an emblematic project in which the Clarins Group was the first partner. Plastic Odyssey selected the ship it would use for its expedition, the Victor Hensen, a former ocean research ship. It will be refitted to become the world’s ambassador when it comes to reducing plastic pollution around the globe.

The Group has supported the Asters conservation agency since 2005 which worked successfully for reintroducing the Bearded Vulture in the Alps.

Mobilize in favor of those who suffer, of childhood and of the planet

6

SCHOOL LUNCHES PROVIDED

TREES PLANTED WORLDWIDE

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FOR A GREATER IMPACT AND COHERENCE, FOCUS DONATIONS ON 3 CAUSES:

24 25

HOW DID CLARINS MAKE

THIS COMMITMENT

A COLLECTIVE PROJECT?

We involve all Clarins employees around this cause by widely communicating within the company about the advances being made by research and news about the Foundation. Since 2017, the Arthritis Foundation has organized a special athletic event for employees during handicap awareness week. This event makes it possible to raise awareness and mobilize people around the idea of doing more.

WHAT ARE

THE FOUNDATION’S

AMBITIONS?

More than ever before in touch with patients, the Foundation will lead the way in scientific knowledge in the realm of bone and joint issues, especially with the development of digital tools. This anniversary reminded us that the present and the future are being built on the foundation of the past that never ceases to reveal new things. Our scientific strategy is being re-evaluated to establish the path we are to take to discover new solutions available to all patients.

T he Arthritis Foundation has been leading research for the last 30 yearsThe Arthritis Foundation, which replaced the Association for Polyarthritis Research (APR) co-founded by Jacques Courtin-Clarins, celebrated its 30th anniversary in 2019. 30 years of unfailing commitment.

Interview with its President, Olivier Courtin-Clarins.

THE FOUNDATION IN A FEW NUMBERS

19 MILLION EUROS

WERE GIVEN TO RESEARCH BY THE FOUNDATION

614SCIENTIFIC PROJECTS(SCHOLARSHIPS, COLLABORATIVE PROJECTS AND GRANTS)

237PUBLICATIONSSINCE 2000

IN 30 YEARS

TO

GENERATING

The 30th anniversary was celebrated with all of the head office employees.

30th anniversary gala. This special evening makes it possible to collect a non-negligible amount of funds every year that help finance several programs. From left to right: Christian Courtin-Clarins, Virginie Courtin-Clarins, Olivier Courtin-Clarins, Nolwenn Leroy, Jenna Courtin-Clarins, Lionel Comole.

“It’s when you’re told that something is impossible that everything begins.”Jacques Courtin-Clarins, founder of the APR and the Arthritis Foundation

CAN YOU REMIND US WHAT THE

ARTHRITIS FOUNDATION’S

MISSION IS?

Our number one mission is to cure rheumatisms and muscular-skeletal diseases. We have a desire to support and finance the best projects and the most dynamic teams, in complement to public organizations and in a perspective of international excellence. We are helping teams of researchers and clinicians to develop new diagnostic tools and to find new treatments. We also encourage the development of epidemiological studies or innovative clinical trials.

WHAT WAS THE INITIAL PROJECT

30 YEARS AGO?

In 1989, my father, Jacques Courtin-Clarins, and Denis Bloch created the Association for Polyarthritis Research (APR) on the advice of Françoise Russo-Marie, a researcher at a national research institute (INSERM). They both had family members affected by joint disease. In 2006, the APR became the Arthritis Foundation, a non-profit organization, to create lasting actions and resources for the organization. The goal was clear: make it possible to cure chronic inflammatory arthritis, create lasting links between different areas of rheumatology to boost innovation, raise awareness around the reality of these very debilitating diseases that affect people of all ages, including young children.

WHAT ARE THE RESULTS

30 YEARS LATER?

WHAT HAS CHANGED?

Our first look at what we’ve accomplished over the past 30 years is very positive, not only in regard to scientific advances, but also in regards to therapeutic advancements. But we cannot speak yet of a cure, there is still much to discover.

The Arthritis Foundation has helped develop the first diagnostic tests for rheumatoid polyarthritis and has helped financed the first in network project on arthritis. We continue to work on setting up several projects, which, I am certain, could lead to positive results for patients with whom we’ve built a strong and on-going connection via their associations.

WHAT SUPPORT DOES THE GROUP

GIVE THE FOUNDATION?

Clarins assumes all structural and administrative costs, which means that 100% of the donations received goes to research. The Group also invests every year to help further research. Every summer since 2012, a collection of trendy accessories worn by my daughters and nieces goes on sale on our e-commerce site with proceeds going toward medical research. And since 2006, for every ‘Clarins Tonic Oil’ purchased, Clarins makes a donation to help finance the Cure-RA research program that aims to develop a treatment targeting the causes of polyarthritis for long-term remission, or possibly, a cure.

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OF EMPLOYEES TRAINEDEVERY YEAR

OF JOB OPENINGS WERE FILLED IN-HOUSE

CONDUCT AND ETHICAL

ACTION FORMALIZED

IN A CHARTER

Clarins is a family business that was built on shared values applied every day. Respect for the consumer, employee development, protecting nature, sharing with society… all these strong commitments have helped make concrete the vision of Responsible Beauty that the company’s managing directors want.

These values and structured commitments are translated by principles of action and behavior that were formalized in 2019 in a new ethics charter, the ‘Beautiful Attitude’, that addresses every employee of the Group and, more widely, all of the stakeholders both in the group and outside. A real reference document that now represents a common base for everyone that coherently normalizes ethical practices within the Clarins Group. This Ethics Charter aims to ensure the efficacy and equity of the Group’s governance and helps participate in risk prevention.

Distributed to all countries in March 2019, the ‘Beautiful Attitude’ has 5 chapters: - respect people, preserve client trust and communicate in a transparent manner - protect the company - promote fair relationships and loyal behavior - help preserve human rights and nature’s rights… all are accompanied by practical examples for better appropriation.

AN ALERT SYSTEM

TO REINFORCE

OUR COMMITMENT

Regardless where in the world, every employee can help prevent risks. To reinforce our ethical approach and social responsibility, the Group set up a professional alert system that makes it possible to anyone to report behavior that may be contrary to the applicable rules using a secure, online portal. This guarantees confidentiality and the identity of the person sending in the notification and the person being named as well as the absence of any sanctions for the person making the alert, working in good faith and selflessly.

Adopt a beautiful attitude

“Loyal to the first profit-sharing scheme in 1965, we want to reward collective effort by sharing profits with all of our employees.”

Christian Courtin-ClarinsPresident of the Supervisory Committee

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TRAIN EVERYONE

“Training is certainly necessary in a world that changes so quickly. Not only is it more important but it should be permanent. For us, it’s an investment. We far surpass legal obligatory training budgets. All our beauty therapists take advanced esthetic courses with us. We’ve trained 5000 a year for the past 45 years and they are highly sought after. And for all our managers, we initiated a leadership program in 2019 inspired by my father’s motto: “Together we can do more, do it better and enjoy doing so.” An individual and collective training program that helps instill Clarins’ philosophy.”

KNOW HOW

TO PROMOTE LOYALTY

“There will always be talented people. And if they’ve been an entrepreneur, it’s a bonus. We need to know how to keep them. By offering a pleasant lifestyle, good pay, and making sure they feel good, are well considered, and that they can carry out all their ideas. We make 100% of our products in France and export 91% of our products. There are many opportunities for passionate career paths and the mixing is done naturally, in all fairness.”

CULTIVATING OUR TALENTS

“One of my greatest professional accomplishments is to have been able to identify talent by hiring (at the time) young interns who today hold important positions in the company, beginning with our CEO. I am also immensely proud that four women, who started their careers as sales personnel or beauty therapists, are now General Managers in their country. Even as we grow, we need to continue to spotlight talented employees that are already among us.”

GIVING MEANING

“Beginning in the 90s, we promoted the values of protecting nature and sustainable development. A difficult choice at the beginning, because it meant we needed to get out of our comfort zone. Today, we know that this path was the right one and it has allowed us to attract employees who wanted to give their career meaning. The success of our CSR trainings has gone beyond our hopes. We also created ‘Happy Days’, conferences open to everyone, and made by nature defenders like Bertrand Piccard, Tristan Lecomte and Gilles Boeuf. It’s always packed!”

“We should continue to capitalize on thetalented employees.”

Making life more beautiful for our employees worldwide is a mission dear to the Group’s heart.

Christian Courtin-Clarins, President of the Supervisory Committee, shares his convictionsabout what makes Clarins different in terms of talent development.

KEYS NUMBERS

27 %INTERNAL MOBILITY

17,5 %OPEN POSITIONS IN LONG-TERM CONTRACTS IN 2019

(VERSUS 15% IN 2018)

TRAINING

47,5 %LONG-TERM CONTRACT EMPLOYEES WENT THROUGH TRAINING*

17 %MALE EMPLOYEES(AN INCREASE OF 5 POINTS VERSUS 2018)

A mix of teams, even if the sector attracts more women. In terms of equality, the executive committee has 5 women and 5 men.

*To develop employees’ professional knowledge (all categories combined). Product training not included.

COMBINE LISTENING, ACTION

AND CURIOSITY

“What gives Clarins its strength is listening, and this listening process should lead to action. ‘Now that you know, what are you going to do?’ For me, it’s the actions that make a good manager. Young people are less impressed by knowledge, available in their smartphone, rather by action. I’d add curiosity as well. Not to be afraid to invent something that doesn’t exist seems impossible at first glance.”

PROMOTE GROWTH, GENTLY

“To promote loyalty, we offer opportunities for growth and have the means to support it. I act on a simple idea: to have satisfied clients, you must have satisfied employees. To feel like one can grow professionally is essential to express one’s full potential. We offer regular trainings to help increase competences that can lead to upward mobility. I also believe in the benefits of short-term assignments. An employee is usually sent for a 3 month assignment in a position that is like the one held but different enough so that the experience is particularly rich.”

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