Exclusive Networks // Sustainability Report 2022

Risks and opportunities Materiality analysis of sustainability issues

The probability of occurrence was determined according to the following scale:

1

2

3

4

Rare

Possible

Likely

Very likely

The impacts of the issues, whether financial, reputational, legal or human capital related, were assessed according to their importance on the following scale:

1

2

3

4

Not significant

Minor

Moderate

Major

The materiality matrix allows the Exclusive Networks Group to prioritise its major social, environmental, societal and governance issues based on net risks, i.e. taking into account the control and continuous improvement measures already in place.

Four major trends emerge from the materiality analysis, presented below in order of priority: 1. Unsurprisingly, the management of human resources issues emerges as the Group’s first key success factor for achieving its ambitions and pursuing its development. 2. Next in order of priority is the control of corruption risk and, more generally, the risk of regulatory compliance, a consequence of the Group’s rapid growth and its development at the global level. 3. Thirdly, as with many companies, cybersecurity is one of the Group’s main challenges, since its business model makes it a reputational risk as well as an operational risk. 4. Lastly, environmental issues are cited by all the stakeholders, but with less importance, due to the opportunity to develop fully digital activities on the one hand, and on the other hand to weaker discussion levers with the vendors regarding the environmental footprint of hardware. [GRI 3-1]

Main findings At the end of the interviews, we noted a great convergence between the internal and external stakeholders as to the importance of the issues. The major issues of the Exclusive Networks Group:  some of them can be considered as sectoral risks, as they are common to all stakeholders operating in this field. This is the case for the shortage of cybersecurity skills, as well as for the cybersecurity risk itself;  others are specific to the Group, due to its business model and global presence. This is the case for export control, linked to the distribution of Dual-use products, and the presence in certain countries that may be considered “at risk” on various subjects.

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Exclusive Networks

Sustainability Report 2022