Compagnie des Alpes // 2020 Universal Registration Document

4 STATEMENT OF NON-FINANCIAL PERFORMANCE Environmental challenges

Holdings and supports sites In tertiary sites, water consumption is considered negligible in volume terms at Group level. Due to a lack of individual meters, these figures do not include the Paris and Chambéry sites. 4.3.4.1 Water in the Ski areas Inventory In Ski areas, water is mainly used for artificial snow-making. Said purpose accounts for 80% of the Group’s total water usage. Artificial snow is used to protect the Group and resort operators from the financial and social impact of a shortage of natural snow on the ski business, especially at the beginning and end of a season. The production of artificial snow and grooming (milling) have a combined impact on the economic viability of ski resorts by significantly extending the life of the snowpack. The volumes of water used depend on the quantities and periods of snowfall, notably when preparing to open the Ski areas at the end of the calendar year. Ski areas limit their use of municipal water by favouring surface water catchment and overflow recovery systems. As a result, 99.6% of the water used to make artificial snow comes from surface water or well water. If a distinction is made between the volume collected and the volume consumed, the second is the share of the former that will not be returned to the watershed after use and will therefore no longer be available in the same place ( e.g. it is now contained in an agricultural product, or rendered as grey or black water, or evaporated). The water collected for artificial snow is for the most part water that remains available in the watershed with the same level of quality as at the beginning, only with a time lag of a few months between its extraction and its return. It is therefore imprecise to speak of water consumption in this case.

The hillside catchment systems are a very good solution for managing water quantities and reducing the impact on quality during periods when water levels are low. As their impact on biodiversity is potentially significant during the construction phases, in particular when they have a significant impact on wetlands and wet zones, these impacts are identified and reduced during the project phase, or even offset if necessary. In 2021, the Group will launch a study with INRAE to identify ways of designing hillside reservoirs that promote biodiversity. Once all the network work has been completed, man-made snow is simply water that has been crystallised at low temperatures. No chemical transformation or additive is used. Water taken from the natural environment for this purpose is returned to the water cycle without being treated, mainly when the snow melts, and to a lesser extent due to evaporation. For several years, the Ski areas have employed slope preparation and grooming techniques that limit the amount of snow necessary for skiing while maintaining very high service standards. The use of radars and the work done to achieve ideal slope profiles and ensure a good covering of grass also help to reduce the amount of snow necessary for a slope to be opened. The aim is to produce “the right quantity” of artificial snow. Improving knowledge SAP (at La Plagne) is one of the pilot resorts for the PROSNOW project which aims to design a demonstrator, which feeds into a snow management system, to predict weather and climate conditions between one week and several months in advance. Because of the marked variations in the weather, especially in late autumn, improving forecasting ability at all levels could help the station managers adapt in real time and potentially result in more efficient water usage. To improve water management, Compagnie des Alpes also wishes to better understand the local water resources at each of its sites and the waterway catchment areas. As a result five sites have incorporated a “water source” factor into their environmental observatories. A sixth site has taken part in a scheme to coordinate water usage at municipality level. As is the case for flora and fauna, the aim is to have data to help make the right decisions to limit quantitative and qualitative impacts. 4.3.4.2 Water in Leisure parks In Leisure parks, water is used for the rides (pools and watering), pools for animals as well as in the restaurants, toilets and hotels for visitors.

SOURCE OF WATER FOR ARTIFICIAL SNOW-MAKING

3.25 % Well water

0.05 % Municipal water

96.7 % Surface water

LEISURE PARKS: SOURCE OF WATER CONSUMED

0.5 % Surface water

Storage and production process In winter, the water levels in mountain streams are at their lowest. To reduce use in winter when water levels are at their lowest, Group resorts have made the effort to build hillside water catchment systems which can be used to store autumn rainwater and water from snow melts. The aim of these high-altitude water catchment systems is therefore to store water when there is a plentiful supply on the mountains. This levels out use from the area and provides a permanent water supply for optimal production during the available cold weather windows and optimal humidity, potentially for shorter periods.

47 % Municipal water

52.5 % Well water

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Compagnie des Alpes I 2020 Universal registration document