LEGRAND_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

Offering users sustainable solutions

W laboratory accreditation processes , overseen by the SBUs and carried out before products are brought to market; W the product risk management procedure , applicable to all Group products irrespective of brand and target market, includes fast-track internal processing for potentially critical situations. In the most sensitive cases, product withdrawal or recall actions could be launched. In 2017, one operation of this type was carried out within the Group; W the customer dissatisfaction management process ranks dissatisfaction according to different levels of severity: those that could have implications for the safety of goods or people, or that have significant financial implications, are dealt with according to the rules laid down in the product risk management procedure. Non-product quality indicators are closely monitored at the country and business unit level. Any divergence from these indicators is systematically analyzed and corrected by implementing action plans. The increased accountability of all Group employees is encouraged through the application of the quality policy which may be consulted at www.legrand.com . For more information on the unsatisfactory cases management process, please refer to section 4.2.2.3 of this Registration Document. Fight against counterfeiting Coordinated by the Group’s Intellectual Property Department, which is part of the Group’s Operations Department, the Group is engaged in an ongoing fight against counterfeiting and for consumer protection on two levels: W by internal anti-counterfeiting mechanisms (see Copytracer, below), and particularly by the SBUs’ intellectual property representatives; W by actively participating in the seizure and destruction of counterfeit electrical products, working closely with the customs agencies of the countries concerned. Through global communication strategies via trade unions or industry associations FFB (Fédération Française du Bâtiment), IGNES (Industries du Génie Numérique Énergétique et Sécuritaire), BEAMA (British Electrical and Allied Manufacturers’ Association), to raise awareness among all stakeholders, including installers and distributors. In 2017, the Group seized 945,000 counterfeit products. Almost 80% of these seizures resulted from actions instigated directly by Legrand’s teams in China. The remainder result from Legrand taking part in actions carried out jointly by members of the electrical industry and customs supervision. In general, since January 2006, more than 6.5 million counterfeit devices (primarily switches and sockets) and circuit breakers under all the Group’s brand names, as well as 21 production

indicator between 2015 and 2016 are due to the redefinition of key control points of the procedure to include a greater degree of rigor. In 2017, a comprehensive communication on the subject of product risk was carried out. This will continue in 2018 and will enable the Group to strengthen this process. The targets set for counterfeiting have meanwhile been achieved, with the seizure and destruction of about 945,000 counterfeit products and the action plans implemented to tackle counterfeiting in several countries.

2014 2015 2016

2017

2018

Target achievement rate*

93% 94% 89% 96%

* Calculated against annual targets; each subject has a 50% weighting in the target achievement.

Quality policy The Group’s quality policy, managed by the Group’s Operations Department, is deployed within SBU (Strategic Business Units), and in each country. It defines the Group’s commitments in terms of quality, and, specifically, compliance with the regulatory requirements,theneed for product reliability,and theorganization, control, measurement and monitoring of processes. Management systems (which are ISO-certified) reduce and prevent risks. The Group’s quality policy is essentially implemented through: W ISO 9001 certification issued by independent bodies for the quality management system at each of the Group’s sites. At the end of 2017, 93% of sites were certified. This validates the improvement loops built into the Group’s quality systems (control and monitoring mechanisms); W production quality control procedures , which require frequent or systematic checks to be introduced, depending on the manufacturing specifications of the products. These are accompanied by a list of safety functions to be systematically tested because of their criticality (e.g. ground continuity). A system is also put in place to monitor product quality: the aim here is to certify product quality through additional tests carried out under a plan reviewed annually, to ensure that the basic product performance conforms with original quality and certification standards throughout the period of manufacture and marketing of the products. A monitoring plan is drawn up for a predefined period, at the end of which it must be reviewed. This includes: the list of products to be monitored, testing, analysis of test reports, and a final report; W these measures may be supplemented by a product audit incorporating the technical and production quality specifications, as well as the product documents (catalogue pages, notices, datasheets, etc.) for review;

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REGISTRATION DOCUMENT 2017 - LEGRAND