Compagnie des Alpes // 2021 Universal Registration Document

4 STATEMENT OF NON-FINANCIAL PERFORMANCE Societal challenges

An initial study conducted in 2017 made it possible to assess the transition risks (based on scenarios) and material risks (based on a review of scientific literature on the subject) of the energy and ecological transition which are applicable to the Group sites. The main long-termmaterial risks could be linked to a reduction of the operating period at the height of the season due to the rise in average winter temperatures, based on the trajectories of the different IPCC models. These models anticipate little change in the winter precipitation patterns in the medium term and over the year as a whole. Pressure on the availability of water for producing artificial snow, depending on the storage and management method used, is dependent on the reliability of this forecast. In 2020 and 2021, the Group worked on a new and more precise model of the physical impacts of climate change on its infrastructures and ski areas over different time horizons (2030, 2050 and end of the century) according to the RCP 4.5 and 8.5 scenarios. This internal modelling is based on a number of criteria (altitude per section of 300 m, orientation, mountain range, season, etc.), and other elements from research centres concerning the risks related to the thaw of permafrost by example. The roll-out of this study is being finalised across all of the Group’s ski areas, using a 3D educational tool and also via new layers that will integrate the geographical information systems of the sites. The widespread use of this awareness-raising and decision-making tool in line with the specific nature of each area is one of the major achievements of this exercise to prepare the areas to adapt to climate change, both in technical terms and in terms of business model.

In addition, there will probably be an increase in extreme events that could lead to the closure of all or part of the facilities for several hours and the impact of the permafrost thaw, which will require increased maintenance of the infrastructures concerned. Despite difficult starts to the seasons, Compagnie des Alpes Ski areas remain resilient for the time being due to the fact their resorts are at high altitude or provide access to high altitude ski areas. An alternative solution is to use the first section of the ski lifts as a lift, thereby offering to access the ski area even when conditions are difficult on the low-altitude slopes. The generation of operating conditions, and the associated flows, is the first adaptation. Ski areas are also using technology to adapt and guarantee the start and end of the season by producing artificial snow, with around 43% of the slope areas equipped according to snow level priorities. The production networks are therefore adapted to the capacity level, as well as the water storage infrastructure, and the level of investment in this area remains significant. In addition, optimisation work and equipment renewal are providing higher yields while limiting the rise in operating costs and the consumption of resources (energy primarily). Grooming techniques are also evolving in order to optimise snow quality and increase its useful life. Grooming takes a range of parameters into account: weather forecasts, a precise calculation of snow volumes considered necessary, satellite or radar measurements of snow thickness. The orientation of the slopes is also examined, Work on the ski runs and re-establishment of vegetation allow the resort to reduce the quantities of snow required to create suitable skiing conditions.

Leisure park operations The Leisure parks are less vulnerable to physical climate risk than the Ski areas. Visitor numbers are relatively dependent on temperature and weather, and sometimes increase when the weather is fine late season. However, excessively hot weather (heatwaves) can deter visitors from going to a site which is not suitably adapted, or perceived as such.

In addition to these technical solutions and infrastructure adaptation, the Ski areas are also working on a strategy of diversification and revival of summer tourism by developing their leisure activities for two or four seasons, providing packaged offers with resort partners and strengthening routes and access to viewing points for as many people as possible. In this respect, the Grand Massif Domaines Skiables ski area is a pilot for the Group’s ten-year diversification strategy.

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Compagnie des Alpes I 2021 Universal registration document