DERICHEBOURG - Universal registration document 2019-2020

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CSR report (serving as statement of extra-financial performance) Main CSR Risks

Main CSR Risks 1.2

The risks listed above and presented in this chapter are the items declaredas material followingthe risk analysis. In view of its business activities, the Group does not provide details on the followingtopics, as they are deemedto be immaterial: actions against foodwaste; ● actions against food insecurity; ● respect for animalwelfare; ● responsible,fair and sustainablefood practices. ● The Group does not implement any arrangementsto artificially reduce its corporate tax expense or to transfer its taxable income to countries with lower taxes. In response to the Covid-19 pandemic, the Group has set up a special crisis managementsystemas describedbelow: 1. Prior to the French Government's lockdowndecision The Derichebourg Group put in place the following measures to prevent the risk of a Covid-19pandemic: creation of a crisis unit for each division through the Management ● Committees; deploymentof Business Continuity Plans by subsidiary including the ● communicationof instructionsto be followed to protect themselves and third parties; purchase of personal protective equipment (masks, hand sanitizer ● gel, etc.); updating of the risk assessment in each single professional risk ● assessmentdocument(SPRAD). The Group has ensured that these measures have been constantly adapted to take into account the developmentsof the pandemic and governmentmeasures. 2. During the spring 2020 lockdown During the lockdown period in the various countries in which the Group operates, the activities identifiedby governmentsas essential to the functioning of the country were maintained (including cleaning, waste collection and recycling). The operating procedures have been updatedto ensure that activitiescan operate safely.We have drawn up specificoperatingprocedureson decontamination. Other non-essential activities had to be discontinued in accordance with governmentprovisions. Functions essential to the operation of the Company such as human resourcesand FinancialServiceshave continued. Appropriatemeasures have been taken for each business activity and function. These measures include adoption of furlough schemes (coveringnearly 10,500 employeesin France at the end of June 2020), home working, and continuingoperationswith appropriateprotective measuresin place. Over 100 furloughed employees have benefited from the FNE-Formation training program. Special additional training modules have been made available to employees through Derichebourg Academy, including working from home, key facts to understand Covid-19,and Covid-19disinfection.

Analysis of CSR risks 1.2.1 The risk analysis has enabled potential risks to be identified in the social/societal,environmental,human rights and anti-corruptionareas. The managementand control systems in place enable these risks to be mitigated and the priority actions presented in the “Concretely Responsible2018-2022”programto be defined. This paragraph also meets the provisions of law no. 2017-399 of March 27,2017 on the duty of vigilancepresentedin section 1.8. Two separate risk analysis mappings were prepared using a single methodology: a mappingof specific corruptionrisks meets the requirementsof law p no. 2016-1691of December 9,2016, knownas the Sapin 2 law; a mapping of CSR risks (human rights and fundamental freedoms, p healthand safety of peopleand the environment). These mappings enable risks to be identified, analyzed and ranked in order to prepareappropriateactionplans using the followingmethod: identificationof potential risks; p identificationof internal control measures and means of controlling p these risks this year; prioritization and scoring of risks arising from the impact and p probabilityof occurrenceof these risks. The scoringof those risks revealedthree levels of potential risk: priority; ● secondary; ● low. ● Potential risks identified as priorities are addressed by the actions and controls described in the CSR roadmap,with the aim of mitigatingand managingthem. The potential risks inherent to the Group's businesses and subject to specificmanagementmeasuresare as follows: environmental risks due to insufficient levels of shredder residue p recovery; workplacehealthand safety related to workplaceaccidents; p environmentalrisks related to air and soil pollution,etc.; p fire; p loss of customerassets due to customerdissatisfaction; p human rights and compliancewith labor laws; p pandemic(incorporatedinto the risk matrix during this fiscal year). p As part of its actions to mitigate CSR risks, Derichebourg Group continuesto roll out its “ConcretelyResponsible2018-2022”program.

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