LEGRAND / 2018 Registration document

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CORPORATE SOCIAL RESPONSIBILITY AND DECLARATION OF EXTRA-FINANCIAL PERFORMANCE

ACTING ETHICALLY TOWARDS SOCIETY

2014-2018 Group priority To support 100% of higher-risk suppliers in implementing an improvement plan for environmental issues, fundamental rights in the workplace and business ethics. Key performance indicator : the completion of overall risk analyses (2014); the percentage of higher-risk suppliers (in CSR terms) covered by adequate action plans (from 2015 onwards). Annual targets:

Veritas, covering four suppliers in India and three in China. The suppliers, previously audited by Legrand’s local teams, were audited again by Bureau Veritas according to the SMETA social audit methodology. This experiment revealed that Legrand’s local teams (purchasing/QSE experts) were mature enough to support suppliers on health and safety and environmental aspects, and familiarized them with the principle of social audits; W formal action plan : this is drawn up and sent to the supplier in question if one or more deviations from Legrand’s standards are identified. It requires suppliers to implement the improvement plan to meet the Group’s standards. This is largely a case of maintaining the relationship with the supplier concerned, but as part of a progress and monitoring program devised by the stakeholders concerned (buyers, internal customers, QSE experts, etc.). In extreme cases, particularly where a supplier has not sought to make any improvements, it may be phased out of the supplier portfolio. The progress of the action plan is monitored in the centralized Group Purchasing database. Legrand sought to make this a priority in its own right in the CSR roadmap for the period 2014-2018. Accordingly, each year, it publishes the number of suppliers under review and the progress of the action plans as detailed below in the results of the CSR roadmap; W centralized monitoring : in 2017, this supplier CSR risk management system became a purchasing quality system procedure. To monitor its implementation, each step of the procedure has been defined as follows: documentary audit – 25%; on-site audit – 50%; monitoring the progress of the action plan – between 50 and 75%; risk removed when the action plan is 100% complete. The monitoring of higher-risk suppliers is thus centralized in a common database under the supervision of the Group’s sustainable purchasing manager; W reporting : progress with action plans and critical situations is shared periodically between the Group’s country purchasing managers and sustainable purchasing managers. A quarterly review is carried out by the Purchasing Management Committee and CSR Purchasing Steering Committee. Focus: Legrand India training suppliers exposed to CSR risks at the Jalgaon site To explain the aforementioned risk management system to suppliers exposed to CSR risks, the Indian purchasing team organized a training day at Legrand’s site in Jalgaon. Nine suppliers to Legrand India received training regarding Legrand’s environmental and social expectations by sharing best practice applied at this ISO 14001-certified production site.

2014 2015 2016 2017

2018

Support for higher-risk suppliers

100% identified 25% 50% 75% 100%

2018 achievements: The CSR risk analysis carried out in 2014 made it possible to establish the baseline and list of action plans to be implemented. It is being refined as the procedure is rolled out. At the end of 2018, 100% of higher-risk suppliers were covered by an action plan.

2014 2015 2016 2017

2018

Target achievement rate*

100% 124% 131% 116% 100%

*

Calculated against annual targets.

For 2018, the results of this higher-risk supplier analysis were as follows: W 202 suppliers regarded as higher-risk in CSR terms were identified for the Group; W All are being monitored by an action plan, i.e. as a minimum the documentary audit has been carried out; W action plans were introduced for around 20 countries (including Australia, Brazil, China, Colombia, Egypt, France, Germany, Hungary, India, Italy, Mexico, Netherlands, Poland, Portugal, Russia, Thailand, Turkey, United Kingdom and United States), representing more than 97% of the Group’s purchases. Each one has appointed a local representative to monitor actions relating to the responsible purchasing policy, in line with the Group’s strategy; W of the 202 suppliers detected, 105 (52%) have completed action plans and 43 (21%) have almost completed action plans, and so more than 70% of higher-risk suppliers have reduced risks to zero or a non-material level; W of the 54 suppliers currently being analyzed, around 20 have been audited on site and have set up action plans, around 10 have an on-site audit planned for 2019, and all others have been subject to document-based audits that have mainly revealed the need to update certain documents;

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LEGRAND

REGISTRATION DOCUMENT 2018