LEGRAND / 2018 Registration document

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CORPORATE SOCIAL RESPONSIBILITY AND DECLARATION OF EXTRA-FINANCIAL PERFORMANCE

LIMITING OUR ENVIRONMENTAL IMPACT

4.5.2 – Issue no. 10: Innovating for a circular economy

Annual targets:

Safeguarding the environment also means implementing circular economy principles within the Legrand Group. This consists of moving from a linear consumption pattern (resource exploitation, manufacturing, use, end-of-life and waste management) to a circular approach, like natural cycles in ecosystems. At the Legrand Group, circular economy principles are divided into three key categories: W ongoing improvements in environmental performance at the Group’s research and development (R&D) centers; W the traceability and disposal of hazardous substances in Group products; W the management of waste from its manufacturing processes, in line with the Group’s ecodesign approach. It should also be noted that the Group’s products, usually associated with construction infrastructure, have long life spans (typically several decades), thus contributing to the rational use of non- renewable resources. Moreover, electrical equipment also changes over the lifetime of a building and the Group’s new products and systems enable new functionality to be added within the existing infrastructure, thereby avoiding (or delaying) their obsolescence. Finally, the role of standards and regulations is fundamental, especially for safety products, which make up a significant part of the Group’s offering. The continual changes to these standards and regulations, coupled with the long lifetime of products, mean that they cannot generally be reconditioned for the second-hand market in equipment components. 2014-2018 Group priority To deploy circular economy principles from the product design phase through to end-of-life recovery. Key performance indicators: W percentage of waste sent to recovery facilities; W percentage of Group sales (1) compliant with RoHS regulatory requirements; W introduction of ecodesign principles to all Group R&D centers.

2014 2015 2016 2017

2018

Waste recovery

> 80% > 80% > 80% > 80% > 80%

Percentage of sales compliant with RoHS regulation (1) Introduction of eco-design principles to all Group R&D centers

92% 94% 96% 98% 100%

Priority1: 100% Priority2: 30%

Priority1: 100% Priority2: 65%

Priority1: 80%

Priority1: 100%

Priorities1 &2:100%

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2018 achievements: During 2018, 91% of waste was sent for recycling, maintaining the positive performance achieved in previous years. At the end of 2018, 98% of the Group’s sales (1) were generated from products complying with restrictions on the use of substances under RoHS regulations, an improvement of 5 points on 2017. The Group’s recent acquisitions have affected performance in this area because some of them are not subject to this regulation. This largely explains the delay relative to the target for 2018. In 2018, 97% (versus 94% at the end of 2017) of R&D centers implemented the Group’s systems for analyzing the risk of hazardous substances being present in their products and for monitoring the integration of Group environmental requirements. The focus is on continuing to raise the level of expertise of all centers.

2014 2015 2016 2017

2018

Target achievement rate*

100% 87% 118% 103% 103%

* Calculated as the average achievement rates for the above three indicators compared to annual targets.

(1) Including Group products outside the scope of RoHS regulations, excluding acquisitions in 2018 and sales of services.

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LEGRAND

REGISTRATION DOCUMENT 2018