LEGRAND_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

Limiting our environmental impact

W scope 2 emissions: these are indirect greenhouse gas emissions related to electricity and heating consumption, mainly for industrial processes and marginally for heating and lighting buildings. The specific carbon content of electricity in each country is taken into account (1) . In all, scope 1 and 2 emissions accounted for 178,000 metric tons in 2017, as against 179,000 metric tons in 2016. This marginal decrease means that greenhouse gas (GHG) emissions directly controlled by the Group are stabilizing at a time of significant growth. This total includes GHG emissions associated with the sales force’s vehicles and presumed leaks of refrigerants used in the cooling and air-conditioning systems. It is important to note that the extrapolation from sites covered by environmental reporting to estimate the GHG emissions of administrative sites (particularly offices and sales branches) covers all of the Group’s GHG emissions. The following items were evaluated for scope 3 emissions (ranked in decreasing order of percentage of emissions): raw materials (44.6%), purchased goods and services (33.4%), logistics (13.3%), product end-of-life (3.21%), capital expenditure (2.81%), commuting (1.54%), upstream losses for production and transportation of fuels, and downstream losses for electricity, business travel and waste (2) (1.15%). It should be explained that the item “use of products sold” is not taken into account at this stage.This is because only a small proportion of Legrand’s product offering - active products - has its own function such as security lighting, sound control, access control, etc. The other products are passive, in that they contribute to providing the electricity used by products that perform the functions, for example, of lighting or heating, or cases and accessories whose functioning does not depend on electricity. The purpose of ongoing work is to identify active products and to catalogue the corresponding greenhouse gas effects. In 2017, scope 3 emissions totaled 1.918 million metric tons of CO 2 equivalent, and were therefore significantly higher than scope 1 and 2 emissions. With regard to CO 2 emissions linked to shipping the Group’s products, and more specifically emissions linked to outbound shipping (i.e. from one Group site to another or to third-party customers), the latter fell from 98.2 ktons in 2016 to 99.8 ktons in 2017. This fall reflects a fall of 1.4% in constant sales, confirming the reducing trend of these emissions already recorded in previous years. Focus: Legrand reaffirms its commitment to reducing its energy footprint Legrand has joined two international initiatives against global warming: the Science Based Targets initiative, which calls on

companies to commit to CO 2 emission reduction targets; and the Global Alliance for Energy Productivity, an international alliance that seeks to improve energy efficiency. These two initiatives underscore Legrand’s longstanding commitment to mitigating the environmental impact of its activities. By joining the Science Based Targets scheme (backed by the WWF, the United Nations Global Compact, the World Resources Institute and the CDP), Legrand takes this one step further. To limit global warming to no more than 2 °C, the program calls on multinationals to commit publicly to greenhouse gas emission reduction targets. The reduction targets and associated actions are being validated by the “Science Based Target” initiative. The Group constantly strives to: W simplify its logistics flows to reduce the distances traveled by products and components between production and storage sites in sales areas; it also analyzes the “overall cost”, which takes environmental criteria into account; W consolidate the different manufacturing stages into a single location, thus reducing transportation between sites. Actions to optimize logistics are also consistently encouraged, such as: W optimizing the loadingof trucks leaving theGroup’s international distribution center for the main subsidiaries; W increasing the proportion of goods shipped by sea, especially between France and Turkey; W using rail transport, particularly between Paris and Italy (Milan), and between Antibes and Paris; W using river transport between the port of Le Havre and the Paris region, particularly to supply the Group’s international distribution center; W using, wherever possible, the same mode of transport for incoming and outgoing shipments at the Group’s international distribution center, thus reducing the number of empty journeys; W limiting the use of air freight. The method used by the Group to map its logistics flows covers more than 95% of its sales. The results of the full calculation confirm that, as a materials processing and assembly company, the Group’s own activities do not have a high carbon intensity. Analysis of the contributing factors shows that, in descending order, the items related to raw materials, goods and services purchased, logistics and industrial site consumption are the main causes, directly or indirectly, of greenhouse gases.

(1) Excluding these specific emission factors, the French environment and energy management agency’s (ADEME) emission factors for France are taken into account. (2) For emissions related to waste management, Legrand uses the emission factor of domestic waste for non-hazardous waste, and the emission factor of incineration for hazardous waste.

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REGISTRATION DOCUMENT 2017 - LEGRAND