LEGRAND_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Limiting our environmental impact

Group priority 2014-2018 To reduce energy intensity by 10%. Key performance indicator: the Group’s energy intensity. Annual targets:

plant in Russia to generate iced water for the injection molding machines and extrusion plant. At Boxtel in the Netherlands, an energy recovery system was installed on the paint line, and the warehouse unit heaters were replaced with radiant gas burners. For building refurbishments, athermic glazing/shading solutions are preferred to air conditioning, which is only installed if there is no other option. Similarly, when ventilation systems need to be replaced, the Group opts for double-flow ventilation with recycled fresh air in summer, saving on heating in winter and preventing the entry of warm air in summer, thereby reducing the use of air conditioning. As part of the “Better Building, Better Plants” initiative backed by the White House, North American entities have pledged to undertake energy renovations and improve the energy efficiency of their office buildings and industrial sites with the aim of reducing energy intensity by 20% by 2022. In this context, Legrand has commissioned a fuel cell device at West Hardford, one of its main industrial sites in the U.S. In principle, this will allow electricity to be generated from oxygen and natural gas, in the absence of combustion. Calculated over a 20-year period, the fuel cell will deliver up to a 40% reduction in greenhouse gas emissions and eliminate 100% of NO x and SO x type gases. It has already led to a saving of more than 50%, based on local electricity costs. As a result, Legrand North America is ahead of the target. In France, the Group has partially replaced its fleet of company vehicles with electric vehicles. Charging stations continue to be installed in parking areas of several industrial sites. These stations are used for cross-site shuttles and travel within the local area. The Group’s carbon footprint Every year, Legrand contributes to the Carbon Disclosure Project (CDP), a non-profit organization whose objective is to measure, publish and share environmental information and provide a framework for actions to combat global warming. In 2017, the Group maintained its B rating under the new CDP rating system. The methodological approach of the Carbon Footprint project isolates scope 1 and 2 emissions, i.e., CO 2 emissions directly related to the Group’s activities, from indirect scope 3 emissions, which correspond to greenhouse gas emissions generated by other stakeholders as a result of the Group’s activities. More precisely, a distinction is made between: W scope 1 emissions: these are Group emissions related to the consumption of fossil fuels (almost entirely natural gas) used for heating buildings, and to a lesser degree for some industrial processes. Consumption by company cars, which are used overwhelmingly by sales forces in the various countries where the Group operates, is also taken into account. Lastly, the contribution of refrigerant leakage is evaluated and taken into account;

2014 2015 2016

2017

2018

To reduce total energy intensity, compared with 2013, by:

2% 4% 6% 8% 10%

2017 achievement: For 2017, energy consumption at the Group’s sites was 454 GWh, up 2.9% compared to 2016 (441.7 GWh). As a percentage of Group sales, energy consumption amounted to an average intensity of 87.7 MWh/million in sales at the end of 2017, against 105.8 MWh/ million in sales at the end of 2013, down more than 17% (at current scope). This change, compared with a reduction target of 2% per year, represents 9 basis points outperformance by the Group and is due to the energy-saving initiatives introduced by the Group (some of which are detailed below) and to more favorable climatic conditions in some regions.

04

2014 2015 2016

2017

2018

Target achievement rate*

315% 175% 247% 213%

*

Calculated against annual targets.

Energy practices The Group automatically incorporates energy efficiency into its operations when building, refurbishing and maintaining its premises. Presence detectors are routinely installed during building renovations to reduce power consumption from lighting. In 2014, for example, a portion of the company’s headquarters was equipped with a double-flow CMV, while more efficient glazing units were installed at several sites in the Limousin region to improve building insulation. Energy-efficient solutions developed by the Group are also installed at its industrial and service sites. For example, systems and sub-systems for measuring power consumption have been installed at several Group sites in China, helping to obtain LEED certification for three of the Group’s Chinese sites. The new production facility in Shenzhen, which opened in 2015, is also highly energy efficient. The Group also keeps track of best available techniques and is committed to replacing obsolete equipment with less energy- intensive processes (free cooling, electric injection molding machine, energy-efficient motors, etc.). In 2015, for example, a chiller unit and air cooler were installed at the Ulyanovsk

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REGISTRATION DOCUMENT 2017 - LEGRAND