LEGRAND / 2018 Registration document

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R THE ENVIRONMENTAL PERFORMANCE OF GROUP R&D CENTERS As part of its 2014-2018 CSR roadmap, Legrand has set up a process to assess the practices of its R&D centers and manage their progress in acquiring ecodesign know-how (the “Legrand Way eco-design”). Legrand’s ecodesign policy is built around seven practices which will be phased in at all its R&D centers: W analysis of the risk of hazardous substances being present (priority 1 practice): to apply voluntarily to all its products the regulatory restrictions on the use of hazardous substances under the RoHS Directive and the level of information described in article 33 of the REACH Regulation, Legrand has introduced a tool for analyzing the risk of substances of concern being present, developed from the Group’s experience in this area and customized for the needs of the Group’s designers and buyers. With this tool, the critical design elements relating to the risk of substances of concern are systematically mapped, and targeted questionnaires are sent to suppliers (mainly of raw materials and components). This approach allows decision-making to be guided towards technical solutions that guarantee the absence of substances of concern from the product design phase; W monitoring environmental requirements (priority 1 practice): based on regulatory and market requirements, as well as the Group’s commitments through its ecodesign approach, a tool containing all these requirements in the form of a checklist customized for the needs of staff is used to identify the key points for each R&D project; W use of LCA (life cycle assessment) in the concept-definition phase (priority 2 practice): during the upstream phase of product development, the R&D unit systematically uses an LCA tool (recognized by the Group) when defining concepts to estimate and/or compare their environmental impacts and thus improve the product’s environmental footprint over its entire life cycle; W ecodesigned products derived from the R&D process (priority 2 practice): Legrand’s aim is to have products whose ecodesign is scientifically proven on the basis of objective criteria. A product whose environmental impact is less than that of the reference product is said to be ecodesigned. The comparison is based on the previous generation of the product, a target product from a competitor, the industry standard (established by a professional body), or a recognized product environmental performance standard (such as NF Environnement). Calculated for different indicators over the entire product life cycle, it must demonstrate that the product evaluated at the end of the R&D process has a lower environmental impact;

W implementation of an EMS (Environmental Management System) by the R&D unit (ISO 14062 or equivalent) (priority 2 practice): the Group regards the use of an environmental management system as a solid framework for ensuring continuous improvement of the R&D process. The EMS must conform to a recognized standard such as ISO 14062 or ISO 14001; W integration of the upstream supply chain into the LCA (priority 3 practice): ecodesign can only be fully realized and the benefits maximized for the Group’s customers and users by working in collaboration with suppliers of materials and components in particular. The focus is therefore on R&D teams developing ways to involve the supply chain in their ecodesign approach. In practice, this means demonstrating how a significant environmental aspect of a product has improved due to a partnership approach with a supplier; W integration of materials from the circular economy (priority 3 practice): Legrand looks for circularity in all its processes. It has therefore committed to systematically demonstrating its willingness to include materials from the circular economy when developing new products or improving existing products. Apart from the Group’s natural and sustained use of sources of materials that usually include recycled materials (e.g. steel, cardboard, etc.), the validation of this practice is based on the integration of materials from the circular economy that demonstrate a real step forward. For example, as an illustration of this practice, the Group’s designers and buyers are gradually integrating recycled plastics into their portfolio of solutions. Several examples can be mentioned, such as the inclusion in cable management products of up to 20% of “post-consumer” recycled plastic (from the collection and processing of end-of- life products). Since 2016, the Brazilian subsidiaries have used “post-consumer” recycled polypropylene (PP) for the injection of plastic parts. In 2017, Legrand’s work with a major European producer of recycled polystyrene (PS) led to the use of post- industrial recycled PS in the production of the flush-mounting box for the Practicbox range, as well as various parts for the XL3 125 and Drivia product ranges. Finally, many of Legrand’s global product ranges are delivered with on-site protective packaging made from 100% recycled polyethylene terephthalate (PET). Dedicated tools for each of the priorities ensure that the practices introduced are effective and consistent. Each year, the R&D centers have to provide evidence that they have adopted the practices resulting from the Legrand Way eco-design. The results are systematically reviewed, consolidated and analyzed by the Group’s Environmental Department and a performance rating is assigned to each R&D center.




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