EURAZEO_REGISTRATION_DOCUMENT_2017

2 Societal information

EURAZEO’S CORPORATE SOCIAL RESPONSIBILITY

MANAGEMENT OF CSR RISKS 2.5.3 RELATED TO THE COMPANY’S ACTIVITIES, ITS INVESTMENTS AND SUPPLY CHAIN CSR risk identification and analysis Introduction Eurazeo may be concerned by risks that could affect its investment activity. An internal control and risk management system has been established. It is led by a dedicated department under the supervision of the Executive Board, and serves to identify, prevent and limit the impact of these key risks. CSR is an integral part of risk assessments conducted.

To achieve its objective, Eurazeo ensures the deployment of actions: for Eurazeo, as a company in its own right; • for Eurazeo as an investor; • for Eurazeo’s investments and suppliers. • Risk-related actions carried out at Eurazeo as a company (with 101 employees based in France, the United States, Luxembourg and China) as well as those carried out as part of its investment activity are described in several sections of this document: section 3.4 Risk management, internal control and main risk • factors, p. 186; section 2.1 CSR in investment policy, p. 90. • This Section 2.5.3 focuses on the risks associated with Eurazeo’s supply chain and its investments.

CSR risk analysis related to Eurazeo’s investments and suppliers MAIN RISK FACTORS AND UNCERTAINTY AMONG EURAZEO’S SUPPLIERS AND ITS INVESTMENTS' SUPPLIERS

EURAZEO’S OBJECTIVE

RISK FACTORS

RISK MANAGEMENT

Non-compliance with regulations •

Laws, national and international regulations → Unethical and non-responsible behavior towards • suppliers and throughout its supply chain Fair and transparent practices → Financial commitment, economic dependence → Gratuities, gifts, corruption, money laundering → Conflicts of interest and anticompetitive practices → Confidentiality, intellectual property → Negative impact on human rights, fundamental • freedoms and working conditions Child labor, forced labor, slavery → Remuneration, working hours → Discrimination, harassment, inhuman treatment → Diversity → Risk of harm to the environment • Climate change → Threats to biodiversity → Energy and water consumption → Non-renewable resources → Pollution and chemical/industrial hazards (discharges) → Prohibited or illegally obtained materials → Livestock farming and transportation conditions → Waste → Health, safety, hygiene → Freedom of association →

Adopt ethical behavior in the conduct of business and in business relationships

Awareness-raising and training of • Eurazeo employees and investment managers on compliance (e.g. Sapin II law) Mapping and analysis of the • materiality of risks associated with suppliers and raw materials Formalization and circulation • for signature of a responsible procurement charter or a code of conduct governing business relationships with suppliers implementation of the charter via questionnaires and/or audits Risk monitoring within the framework • of the Eurazeo Audit Committee and the Audit Committees of investments (see Section 3.4.1.2, p. 188) Control of the effective •

Promote respect for the fundamental rights of workers and the provision of decent work

Take steps to minimize the impact on the environment and contribute to the fight against climate change

Eurazeo has developed a tool for mapping and analyzing the materiality of the CSR risks of a portfolio of suppliers. This analysis serves to prioritize suppliers requiring particular vigilance.

Assessing the importance of suppliers consists in identifying the most critical suppliers for the Company based on criteria such as the revenue and volume they represent, the substitutability and criticality of the product or service (e.g. scarce assets), and the duration and frequency of business relationships. CSR risk assessment to identify suppliers potentially representing a • risk In order to make an assessment of potential CSR risks, this tool determines a rating from the country of origin through the use of four international benchmarks.

This analysis is done in three steps: Identification of direct suppliers •

This step involves performing a survey of suppliers by collecting key data such as the name of the supplier, its country of origin, its purchase category and the volume of purchases it represents. Assessment of the importance of suppliers •

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2017 Registration document

Eurazeo