Derichebourg // 2020-2021 Universal Registration Document

3

Extra-financial performance The European Green Taxonomy and its impacts

The historical and main activity of the Derichebourg Group is the ● recycling of ferrous and non-ferrous metals which are non-hazardous waste (see Appendix II of Article R. 541-8 of the French Environment Code), after decontamination in the case of end-of-life vehicles (ELVs) and Waste Electrical and Electronic Equipment (WEEE). Aluminum production: (criterion: Manuacture of aluminum through ● primary alumina (bauxite) process or secondary aluminum recycling). The Derichebourg Group operates three aluminum refineries in which it produces ingots from secondary aluminum, with production totaling 93,211 metric tons over the year. This activity is considered transitional for the climate change mitigation objective. Manufacture of batteries: (criterion: manufacture and recycling of ● rechargeable batteries, battery packs and accumulators). The Derichebourg Group recycles end-of-life lead-acid batteries at its Spanish site at Albalate del Arzobispo, and produced 24,600 metric tons of secondary lead ingots over the year. Public Sector Services Public Sector Services is an activity eligible for the climate change adaptation and mitigation objectives: Collection and transport of non-hazardous waste in source ● segregated fractions: (criterion: covers all non-hazardous waste separately collected and that have been segregated at source and intended for preparation for reuse or recycling). Within the Derichebourg Group, this concerns the activities covered ● by point M of Article 278-0 bis of the French General Tax Code establishing a value added tax reduced to 5.5% on “separate collection services, collection at recycling centers, sorting and material recovery of household waste […] as well as services that contribute to the smooth running of these operations”. To be on the safe side, the Group has opted out of collecting bulky items. Transitional and enabling activities The “Aluminum manufacturing” activity is considered transitional for the objective of climate change mitigation. MULTISERVICES Within Derichebourg Multiservices, four activities are eligible, three of which cover both climate change adaptation and mitigation objectives, and one specifically for climate change mitigation. They are exercised in the Derichebourg Énergie, Derichebourg Énergie EP, Derichebourg SNG and Le Studio LED (LSL) subsidiaries: Installation, maintenance and repair of instruments and devices for ● measuring, regulating and controlling the energy performance of buildings. This activity corresponds to Derichebourg Énergie’s regulation and technical building management (BMS) activity. This activity also includes a portion of HVAC (heating, ventilation, air conditioning) that cannot be separated, which should be eligible for the following category “Installation, maintenance and repair of energy efficiency equipment”;

Installation, maintenance and repair of energy efficiency ● equipment, covers in particular the installation and replacement of energy-efficient light sources such as LEDs. This business activity is a full match with that of the subsidiary Le Studio Led (LSL) and a partial match with that of Derichebourg Énergie E.P. Installation, maintenance and repair of charging stations for ● electric vehicles in buildings (and in parking spaces attached to buildings). The Derichebourg Énergie E.P. and Derichebourg SNG entities market and install electric vehicle charging infrastructures on behalf of customers. The following activity is only eligible for the climate change mitigation objective: Professional services related to the energy performance of buildings. ● The Derichebourg Énergie entity offers and markets energy performance contracts. This activity is considered as enabling for the objective of climate change mitigation. Transitional and enabling activities The activity of “Professional services related to the energy performance of buildings” is considered as enabling for the objective of climate change mitigation. Accounting methods 3.8.4 The vast majority of Recycling activities are eligible for the Taxonomy. To ensure this, these activities were identified and then traced as closely as possible using the Group’s cost accounting to exclude the non-eligible portion. In case of doubt, the Group has chosen to be prudent in not counting the corresponding activities. The Public Sector Services business falls under the “Collection and transport of non-hazardous waste in source segregated fractions” in the Taxonomy. To identify revenue from eligible activities, the Group has decided to rely on point M of Article 278-0 bis of the French General Tax Code establishing a value added tax reduced to 5.5% on “Separate collection services, collection at recycling centers, sorting and material recovery of household waste […] as well as services that contribute to the smooth running of these operations” and to avoid bulky items. As the equipment used can be versatile and also be used for the collection and transport of unsorted waste, the Group has decided to adopt a cautious approach and not to count any OPEX, and for the CAPEX to count only the vehicle fleets. In fact, by investing in hybrid and electric vehicles, the Group is able to reduce its greenhouse gas emissions regardless of the activity to which the vehicle is assigned. For the Multiservices businesses, the Group mainly identified the contracts eligible for the Taxonomy and aggregated these results to arrive at a total revenue. As CAPEX and OPEX in these service businesses are relatively weak and difficult to identify, the Group has chosen to be cautious and decided not to allocate these CAPEX and OPEX to eligible activities. However, the acquisition and long-term leasing of vehicles is recognized, because by investing in hybrid and electric vehicles, the Group is able to reduce its greenhouse gas emissions, regardless of the activity to which the vehicle is assigned.

DERICHEBOURG 2020/2021 Universal Registration Document 85