Derichebourg // 2020-2021 Universal Registration Document

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Extra-financial performance The European Green Taxonomy and its impacts

The European Green Taxonomy and its impacts 3.8

Overview of the European Green 3.8.1 Taxonomy In December 2019, the European Commission presented its European Green Deal, a roadmap aimed at making the European economy sustainable by transforming climate and environmental challenges into opportunities and achieving carbon neutrality by 2050. To direct investment in economic activities considered environmentally sustainable and to combat greenwashing, the European Parliament has adopted regulation (EU) 2020/852 of June 18, 2020 on “the establishment of a framework to facilitate sustainable investment”, amending regulation (EU) 2019/2088, thus establishing the European Green Taxonomy. The Taxonomy aims to define the EU’s environmental objectives and the corresponding economic activities. This is a major legislative act to facilitate and develop sustainable investment, and therefore the implementation of the European Green Deal. Specifically, by providing companies, investors and policymakers with definitions of economic activities that can be considered environmentally sustainable, it should help to redirect investments where they are most needed. The EU has set itself six environmental targets: climate change mitigation; climate change adaptation; sustainable use and protection of water and marine resources; transition to a circular economy; pollution prevention and control; protection and restoration of biodiversity and ecosystems.

(Corporate Sustainability Reporting Directive) in 2023, must publish their sensitivity to European Green Taxonomy. For the purposes of determining the degree of environmental sustainability of an investment, an economic activity is considered environmentally sustainable if that economic activity: contributes substantially to one or more of the six environmental objectives; does not significantly harm to any of the other environmental objectives; is exercised in compliance with the minimum guarantees provided; complies with the technical screening criteria established by the Commission. However, from January 1, 2022 to December 31, 2022, non-financial companies only disclose the share of economic activities eligible and not eligible for the taxonomy in their total revenue, their total capital expenditure and their total operating expenses, as well as any qualitative information relevant to this disclosure. The delegated acts specifying the technical review criteria for the first two climate change objectives were ratified by the European Parliament on October 5, 2021. The delegated acts for the four other objectives are expected in 2022. The Derichebourg Group, wishing to support the implementation of the European Green Taxonomy, has voluntarily decided to bring the legal disclosure requirement forward by one year for its economic activities eligible for the first two objectives of the taxonomy in its revenue, capital expenditures and operating expenses in its accounts closed September 30, 2021.

Group activities eligible 3.8.3

Publication obligations 3.8.2

for the Taxonomy objectives Many of the Derichebourg Group’s activities are eligible for the objectives of the European Green Taxonomy. As of September 30, 2021, the Group presents the following assessment:

From January 1, 2022, companies subject to the declaration of extra-financial performance, transposition into French law of the NFRD (Non-Financial Reporting Directive) which will become the CSRD

Revenue

CAPEX

OPEX

Substantial contribution criterion

2021

2020

2021

2020

2021

2020

Climate change adaptation Climate change mitigation

68.5% 68.7%

N/A N/A

72% 72%

N/A N/A

53.1% 53.1%

N/A N/A

Overall assessment of eligible activities

68.7% N/A

72% N/A 53.1% N/A

A number of the Derichebourg Group’s activities are eligible for the Taxonomy’s objectives: ENVIRONMENTAL SERVICES Recycling Within Recycling, three activities are eligible for the adaptation and ● mitigation of climate change objectives:

Material recovery from non-hazardous waste (criterion: the activity ● converts at least 50%, in terms of weight, of the processed separately collected non-hazardous waste into secondary raw materials that are suitable for the substitution of virgin materials in production processes).

DERICHEBOURG 2020/2021 Universal Registration Document 84