WORKING TOWARD COMPLETE RECYCLABILITY In the U.S.A., we use a certain type of display we call “playstations” to promote fragrance and beauty products. These displays are bulky and have proven difficult to recycle in the past. To overcome this recycling challenge, our FRAGRANCES & BEAUTY activity has been working with TerraCycle, a company that specializes in recycling materials that are hard to recycle. This initiative aims to develop a way to ensure complete recyclability of SPM playstation displays at the end of their life. Launched in 2017, the initiative has reduced SPM waste being sent to landfill by 38 tons, and will also serve as a pilot for how smaller point-of-sale displays could be recycled more systematically and regularly. CYCLEAPP: COLLABORATING FOR CIRCULAR POINT-OF-SALE MATERIALS In France, our FRAGRANCES & BEAUTY activity has developed Cycleapp, a pilot project with a digital application to improve point-of-sale SPM recycling. The principle of the app is to make it easier for beauty and cosmetics retailers to arrange for the removal of old SPM displays at the end of campaigns at the point of sale. When a campaign ends, the salesperson simply posts his or her SPM on the application as ready for removal and recycling, whereupon it is then collected and sent to a designated recycling center. This ensures that more SPM material enters the correct recycling channel and remains fully monitored by the company. The test project has been running in Lyon since March 2016 at 13 points of sale. With collaboration between CHANEL, Marionnaud, Le Printemps, Les Galeries Lafayette, La Poste, New Attitude, and Paprec, we believe this app could be a model for the whole beauty and cosmetics retail industry in France by 2020. This project shows our commitment to the circular economy, ensuring we can reuse old SPM materials to create new displays. SUSTAINABLE RETAIL SUSTAINABLE RETAIL

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