EURAZEO_REGISTRATION_DOCUMENT_2017

EURAZEO’S CORPORATE SOCIAL RESPONSIBILITY

Societal information

Social risk is assessed using the United Nations Development Programme’s (UNDP) Human Development Index, which incorporates three major criteria, namely life expectancy at birth, level of education and standard of living. Human rights risks are assessed on the basis of Freedom House reports, which measure the extent of democracy in the world. Transparency International’s Corruption Perceptions Index is used to measure corruption risk; environmental risk is rated in accordance with the Environmental Performance Index. This index, created by researchers from the American universities of Yale and Columbia, serves to evaluate the effectiveness of environmental policies. A commodity-specific approach relevant to production companies is also adopted in addition to this supplier-centric approach. This supplier vulnerability matrix was applied to Eurazeo’s supplier portfolio in 2017. As an investment company whose main activities are located in France, Eurazeo’s purchases break down as follows: more than 70% of purchases are intellectual services; other • purchases mainly concern equipment, general services, transport services, etc.; more than 85% of purchases are made in France. • This analysis has shown that CSR risks among Eurazeo’s suppliers are minor. With regard to Eurazeo’s investments, Eurazeo pays particular attention during due diligence to the procurement policy, and to compliance with the conventions of the International Labour Organization (ILO) across the entire supply chain, conducting reviews adapted to the challenges and risks specific to each industry. Each investment selects and supervises its own suppliers, and is therefore responsible for its procurement policy. During the holding period, Eurazeo encourages its investments to conduct a risk analysis of their supply chain. For this purpose, Eurazeo provides its materiality analysis tool for a portfolio of suppliers and trains each investment in its use. Depending on the investment in question, mapping of this nature is carried out by supplier and/or by raw material, in accordance with the materiality of the challenges of the company’s supply chain. Depending on their materiality, and on a voluntary basis, indirect suppliers can also be included. In addition, as part of its CSR reporting, Eurazeo each year gathers a certain amount of information related to the portfolio of suppliers of its investments:

Depending on the challenges identified in the materiality analysis of the supplier portfolio, investments establish specific dialogue with suppliers evaluated as critical. An example is provided by Groupe Flash , which has an extensive network of transportation providers, and aims to build lasting relationships with them based on trust. The annual satisfaction survey carried out among its partners highlighted a low rate of transporter turnover and a high level of satisfaction of more than 74% among transporters with their relationship with Groupe Flash. Groupe Flash provides its suppliers with a portal offering operational training on good driving practices, safety rules, navigation, the use of equipment or risk of accidents and theft. Groupe Flash also promotes the use of suppliers complying with the latest European standards in terms of CO 2 emissions. Action and prevention plans The deployment of a responsible procurement approach is one of the key themes that Eurazeo has sought to strengthen within its investments since the implementation of the CSR strategy in 2014. For this purpose, a “responsible procurement” working group has been offered to companies since 2015. Depending on the relevant issue, this working group brings together the procurement managers, legal counsels and CSR managers of all investments. It combines collective workshops with the entire portfolio and specific follow-up meetings with the various companies. The topics covered are as follows: formalization of a responsible procurement charter (or code of • business conduct); means of verifying the implementation of a responsible • procurement approach (questionnaires and audits); mapping and “materiality” analysis of supplier and raw material • risks. As part of this working group, Eurazeo has also formalized the integration of CSR issues into its purchasing policy by establishing a code of business conduct in cooperation with a specialized law firm. Translated into two languages, it serves as the framework established by Eurazeo for all business relationships. It contains a total of 16 commitments bearing on human rights, the health and safety of people, respect for the environment and business ethics. Eight commitments concern Eurazeo: Dealing with business partners loyally and transparently 1. Respecting financial commitments 2. Refuse any situation of economic dependence 3. Refusing gratuities and excessive gifts 4. Fighting corruption and money laundering 5. Avoiding conflicts of interest 6. Respecting the confidentiality of exchanges 7. Respecting intellectual property rights 8. And, eight commitments are expected from Eurazeo’s business partners: Respecting national and international legislation and regulations 1. Respecting human rights in the working relationship 2. Reducing economic dependency 3.

2

GEOGRAPHIC BREAKDOWN OF SUPPLIERS – EURAZEO AND ITS INVESTMENTS

67%

39.5% 36%

23%

17%

Ensuring the confidentiality of information 4. Fighting corruption and money laundering 5. Avoiding conflicts of interest 6. Fighting anti-competitive practices 7. Respecting the environment 8.

7%

3% 7%

0% 0.5%

Europe excluing France

France

Americas

Asia

Africa

Q Number of suppliers

Q Volume of purchases

This document is made available to the investments. At the end of 2017, 11 companies out of the 16 included in the regulatory reporting scope had adopted a code of business conduct or included CSR items in their purchasing conditions.

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Eurazeo

2017 Registration document