EURAZEO_REGISTRATION_DOCUMENT_2017

EURAZEO’S CORPORATE SOCIAL RESPONSIBILITY

CSR in the investment policy

MAIN OPPORTUNITY FACTORS IN THE EXISTING INVESTMENTS

OBJECTIVES PURSUED BY EURAZEO

OPPORTUNITY FACTORS

ILLUSTRATIONS

A better energy performance can generate • direct financial gains through savings across production and/or distribution processes. The promotion of the use of renewable energies • contributes to the energy transition. It also reduces the Company’s exposure to rising prices for fossil fuels and possible change in GHG emissions costs. greater competitiveness; → a more diversified offering; → participation in the development of new → innovations contributing to the energy transition; satisfaction of growing consumer demand. → Special attention to the sustainability of the • entire supply chain ensures the reliability of the model over time, and anticipates and diversifies future substitutions. Eurazeo supports innovative companies in • sectors undergoing transformations and enjoying fast growth. This results in: •

The measurement of avoided energy • consumption thanks to the CSR efforts taken by Léon de Bruxelles made it possible to avoid the emission of nearly 1,138 metric tons of CO 2 equivalent, representing a saving of nearly €1.4 million between 2011 and 2017. In 2014, Eurazeo PME invested in Vignal Lighting • Group, a company specialized in the design, manufacture and marketing of products and systems for the lighting and signaling of industrial and commercial vehicles. Vignal Lighting Group was the first company to introduce a series of all-LED taillights on a range of trucks in Europe. Eurazeo coordinates a “Responsible • Procurement” group with its investments, with the objective of assessing risks in the supply chain and implementing action plans to mitigate them. In 2017, Eurazeo Patrimoine acquired Reden • Solar, a major player in the photovoltaic energy sector in France and internationally. Currently operating in six countries, Reden Solar has built more than 500 sites representing cumulative power of 400 MW, of which about 300 MW operated by the Group today.

Improve energy performance and obtain energy from renewable or low-emission sources

Design products or services with reduced carbon footprint

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Ensure the sustainability of the model throughout the supply chain

Invest in new sectors with high potential

Analysis and perspective 2. The careful appraisal of a target acquisition in respect of environmental, social, societal, governance and supply chain issues can help improve the understanding of risks and opportunities, thereby increasing the ability to forge strong convictions in the selection of investments. The objective is therefore to analyze the target company from three angles: the performance of the target company itself; • the positioning of the Company in relation to its business sector • and its competitors; the stakeholder perspective. • This analysis serves to establish a list of material issues to be investigated within the framework of the investment decision and then as part of the preparation of the post-acquisition action plan. Projections can be made to measure the target company’s potential exposure to risks or opportunities. These studies are carried out on the issue of climate change when the challenge is material for the Company. By way of example: in 2016, a special study was conducted on a prospective • acquisition covering the financial impact of regulatory changes to the European quota trading system in the years to 2030; studies of exposure to climate change risks have been carried out • during the review of prospective acquisitions based on acknowledged indices on the risks of flooding, access to water and energy, and seismic risk. 2020 objective: 100% of due diligence in the advanced study phase to include a CSR section. This objective was achieved in 2017.

Depending on the availability of information and the materiality of the challenge during the identification phase, full analysis of the financial impact of these risks and opportunities is carried out. The contribution to the limitation of climate change is also examined by analyzing management’s commitment to the issue, as well as the actions already in place at the time of the identification phase. During the ownership phase, accurate monitoring of change in carbon emissions is performed as part of annual CSR reporting. Eurazeo also assists companies in drawing up an emissions reduction plan with quantified targets. METHODOLOGY, INTEGRATION AND RESULTS OF THE ANALYSIS Collection of information 1. The first phase, consisting in finding and gathering information, is carried out during the identification phase. This phase includes documentary research based on reports, sector and thematic benchmarks and press articles on the sector of activity and on competitors. The gathering of available information of this type serves, for instance, to identify potential issues with respect to the Company’s reputation, but also more generally that of its sector, its peers and comparables in the area of CSR. Available information (public, made available by the target company or assembled) is analyzed. Finally, more in-depth research is carried out, notably in the form of interviews with experts and managers, due diligence conducted by external firms, and site audits to complement and fine-tune the information and issues identified. 2.1.3

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Eurazeo

2017 Registration document