LEGRAND_REGISTRATION_DOCUMENT_2017

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Limiting our environmental impact

R 4.5.2.1 WASTE MANAGEMENT The Group endeavors to limit the amount of waste generated by its industrial operations and is working on a waste treatment process that mitigates their negative externalities. The proportion of waste sent for recycling is thus a key indicator of Legrand’s performance in this field. From an operational perspective, Legrand is seeking to reduce its waste in four main ways: W product design and industrialization, to minimize production waste and scrap. When scrap is generated, this is preferably reused directly in the manufacturing process. In addition, injection mold sprues are ground down and reincorporated with virgin material in the thermoplastic injection process, while scrap from the metal cutting process is legally classified as production waste and is systematically recycled outside the company. W sharing best practices and identifying local improvement initiatives to limit the amount of waste at source. W waste identification and the definition of sorting guidelines to facilitate recycling. The identification of hazardous waste in particular is essential to ensure that it is correctly handled. W choosing service providers that offer the best waste recycling while minimizing landfill and incineration without energy recovery. As an example of good practice, the Group has introduced the “3 Rs” approach at its sites: Reduce, Reuse, Recycle. Several initiatives have been set up in production workshops with the active participation of all employees: weekly meetings with analysis of indicators, improvement proposals, brainstorming and suggestions. This initiative has resulted in several noteworthy actions, including: detection of energy losses in machines, switching off machines during breaks, reusing consumables such as gloves, and increasing selective sorting. Another example of best practice can be found in the Limousin production workshops in France, where the initial parts for thermoplastic molding are collected, sorted by type of material, ground down and reincorporated with virgin material for the standard production of plastic parts. This approach avoids any under-recycling which can affect some forms of materials recycling. The contacts established with players involved in waste recovery and the treatment of waste electrical and electronic equipment (WEEE) have prompted thinking on the incorporation of post- consumer recycled raw materials. There are already some good examples of this, such as the use of transparent polycarbonate from non-specification manufacturing for the automotive industry in the manufacture of opaque technical parts, or polystyrene from the WEEE process for molding flush-mounting boxes.

Focus: Zero landfill waste by 2022 for Legrand North and Central America Legrand North and Central America (LNCA), which generates nearly 28% of the Group’s non-hazardous waste, has pledged to send 0% of its waste to landfill by 2022. To that end, LNCA has established a waste policy to educate sites on their waste management processes. Since 2012, 94% of solid waste from sites has not been sent to landfill. In terms of results, environmental reporting has revealed that the gross amount of waste generated in 2017 was 54 thousand metric tons, an increase of 3.8% compared with 2016 at current scope. The waste recycling rate has reached a record 89.5%. The Group’s goal is to maintain this at a minimum of 80% for the entire duration of the roadmap. Legrand makes every effort to collect and recycle its products at the end of their life. Historically, the Group is a pioneer as, for over 20 years, it has organized the recovery and recycling of self- contained emergency lighting units. This has enabled more than 200 metric tons of products to be recycled every year (including about 70 metric tons from nickel-cadmium batteries). Note that at the national level (for all industrial actors combined), around 30% of all self-contained emergency lighting units placed on the market are collected at the end of their life. The WEEE Directive has structured and regulated such initiatives in Europe. Under its leadership, eco-organizations have established systems to collect and process products that have now reached the end of their life. In response to the obligations, Legrand has joined in these efforts by funding recycling facilities that process the tonnage placed on the market through retail channels. Since 2010, recycling processes have been set up that are specifically tailored to the construction industry, such as the “WEEE pro” process in France with the eco-organization Récylum. Legrand participated as a founding member in the launch of this professional process, which recovers end-of-life electrical and electronic equipment. The Group’s sales forces are trained to promote membership of the Récylum network among their customers. Each one is equipped with special containers to collect products under the scope of the WEEE Directive. The above-mentioned pioneering industry sector of self- contained emergency lighting units has already created market habits that now benefit the collective WEEE sector. Similar initiatives have been implemented in European countries affected by the directive. Legrand regularly takes part in one-day forums organized by Récylum to discuss best practices in ecodesign for future recycling purposes. These forums are typically attended by stakeholders in the electrical, medical and climate engineering industries, end-of-life product disposal organizations, and the French environment and energy management agency (ADEME). Récylum and Legrand hold regular meetings with R&D engineers and technicians, ecodesign experts and WEEE players. The aim

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REGISTRATION DOCUMENT 2017 - LEGRAND