LEGRAND_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Limiting our environmental impact

Focus: Calculation of an internal carbon price – Legrand signs climate manifesto Legrandwas closely involved in theUnitedNations ClimateChange Conference in Paris (COP21), signing the climate manifesto and joining 39 other major French companies which are resolutely committed to the fight against climate change and to helping to limit global warming to 2°C. The Group also signed the charter of commitments “Business for COP21” and its initiatives are listed on the United Nations’ official website “International Climate Action”. In 2017, the French Climate Business Pledge signaled the ongoing commitment of French companies to develop low-carbon solutions two years after the Paris agreement, thus emphasizing the importance of the follow-up to the 2015 declaration. To reaffirm its leadership role and the impetus it brings to the campaign for a more sustainable world, since early 2016 Legrand has increasingly included the carbon dioxide price per ton into its operational considerations, notably investment decision processes. Climate change and mitigation strategy Climate change results in the materialization of new risks for companies: damage to physical installations, business interruption, financial risks (linked to the rise in insurance costs, for example), impact on populations and therefore on company employees. Faced with these new risk factors, in 2015 the Legrand Group mapped the vulnerability of its sites in terms of the physical consequences linked with extreme weather events that could affect business continuity. The methodology used is based on site scores developed by the Group’s insurers for exposure to the risks of natural disasters. The mapping was done for the 126 major sites (of a total of 153 sites) visited regularly by insurers. Note that the 27 sites excluded from the study are mainly unoccupied or dormant sites or minor sites deemed non-critical for the Group. Regarding the risk of flooding, 77% of the sites visited present no risk or have a risk level deemed non-significant. A total of 23%, or 29 sites, present a risk level lower than or equal to 1% (i.e. less than a 1% chance that this type of event will occur in any given year). These sites are mainly in France, Italy, India and the United States. Regarding the risk of storm and high winds (including extreme snowfall): 8%, or 10 sites, could potentially be affected by such phenomena, although the likelihood of occurrence remains very low (less than 0.5% per year). The sites concerned are mostly located in India and the United States. The Group’s other sites are not exposed to this type of phenomena.

These analyses supplement the Group’s site mapping in terms of water stress, which indicates that approximately 80% of the Group’s water consumption is at industrial sites located in areas with low or moderate water use (for more information on this topic, please refer to section 4.5.1.2 of this Registration Document). The analyses will become progressively more detailed and will be regularly updated. This will enable the Group’s exposed sites to be targeted, paving the way for action plans to mitigate the long- term consequences of climate change. For more information on the Group’s risks, please refer to chapter 3 of this Registration Document. R 4.5.1.4 USE OF SOILS AND BIODIVERSITY PROTECTION Legrand’s activities have no direct impact on soil or biodiversity. The vast majority of the Group’s production sites are located inside business or industrial zones which are subject to specific regulations. Furthermore, the Group considers that the focus on reducing water consumption, particularly in areas subject to water restrictions, helps to ease human pressure on ecosystems. Finally, the manufacturing nature of the Group’s activities allows its sites to be multi-storied, thus limiting their footprint. In addition, Legrand factors in the concept of embodied biodiversity. By analogy with embodied energy, embodied biodiversity is understood as the cumulative impacts on ecosystems and biodiversity over the entire lifecycle of a material or product (e.g. equipment, energy): raw materials extraction, manufacturing, transportation, implementation, use and end-of- life. Each of these stages has an impact to a greater or lesser extent on the environment (destruction of species or habitats, consumption of natural resources, various forms of pollution, GHG emissions, etc.). Grey biodiversity can be assessed based on PEPs (Product Environmental Profiles), for which there are numerous impact indicators (intermediate indicators), such as air or water toxicity or eutrophication, which enable an estimate to be made of the potential harm to ecosystem diversity (damage indicators). The Group therefore has a relatively broad base for the indirect assessment of its impact on biodiversity. For more information on PEPs, please refer to section 4.2.1.3 of this Registration Document. For more information about our environmental actions, please visit our website at www.legrand.com .

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REGISTRATION DOCUMENT 2017 - LEGRAND