LEGRAND_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

Limiting our environmental impact

4.5.2 – Innovating for a circular economy

Annual targets:

Safeguarding the environment also means implementing circular economy principles within the Legrand Group. This consists in 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 the management of waste from its manufacturing processes, in line with the Group’s ecodesign approach; W the traceability and disposal of hazardous substances in Group products; W the ongoing improvement of the environmental performance of the Group’s research and development (R&D) centers. 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. Group priority 2014-2018 To deploy the principles of a circular economy from the product design phase through to their end-of-life recovery. Key performance indicators: W percentage of waste sent to recovery facilities; W share of Group (1) sales 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%

Coverage rate of sales compliant with RoHS regulation (1)

92% 94% 96% 98% 100%

Introduction of eco-design principles to all Group R&D centers

Priority 1: 100%. Priority 2: 65%.

Priority 1: 100%. Priority 2: 30%.

Priorities 1 & 2: 100%.

Priority 1: 80%.

Priority 1: 100%.

2017 achievement: During 2017, 90% of waste was sent for recycling, which confirms the positive performance of previous years. At the end of 2017, 93% of the Group’s sales (1) were generated from products complying with restrictions on the use of substances under RoHS regulations, an improvement of 4 points on 2016, despite lagging behind the Group’s target of 98%. The Group’s acquisitions policy affected performance by merging with companies not subject to this regulation. This largely explains the underperformance relative to the target for 2017. In 2017, 94% (versus 80% at the end of 2016) of R&D centers implemented the Group’s systems for analyzing the risks 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%

* 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 2017 and sales of services.

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REGISTRATION DOCUMENT 2017 - LEGRAND