NEOPOST - 2018 Registration document

5

Non-financial performance statement

Social, societal and environmental information

Neopost ensures that its suppliers comply with its requirements through dialogue, visits, audits and performance assessments carried out by its teams. Over and above contractual matters and supplier selection audits, since 2017 the industrial partnership and procurement department has Initiatives Results Assessment of suppliers' CSR performance

launched an annual CSR assessment campaign for its suppliers. Those who do not fulfil the Group's assessment are

asked to provide an action plan.

221 suppliers assessed since 2017 (116 in 2017 and 105 in 2018) representing 98.9% of the • total manufacturing purchases from the plants at Le Lude and Drachten and from Neopost's OEM partners in 2018 87.3% of the suppliers assessed in 2018 obtained a score in keeping with the Group's • requirements. An action plan is required from suppliers who do not comply with the supplier Code of Conduct 6 CSR audits carried out with tier-two suppliers in Asia (China and Malaysia) completed in 2018 • CSR and ethics training over 2 days for buying and supplier quality teams present in Asia • (Hong Kong). These teams cover all of the relationships with the Group's suppliers in China and Malaysia Discussions with the team of buyers to jointly define the CSR criteria relevant to different types • of suppliers, particularly on social issues Listed according to the criteria defined by the Group • The Group was awarded “Gold” status (67/100) at the latest assessment conducted by • EcoVadis in 2018. It shares its profile with its customers (selection criteria in some cases) and suppliers and invites its suppliers to answer the EcoVadis questionnaire

Supplier CSR audits

Staff involvement and training in responsible procurement

Involvement of suppliers and responses to non-financial rating agencies

the filing and registration, if necessary, of new patents, • trademarks and copyrights before any new product launch; the signing of non-disclosure agreements to protect trade • secrets; compulsory verification of the freedom to operate before • any new product launch or any planned new market; intellectual property licensed by or for third parties through • development agreements or commercial agreements.

Enforcement of intellectual property rights The Group might be subject to significant litigation or legal action in the event of a breach, albeit involuntary, of a third party’s intellectual property. Some of them may request a licence agreement or oppose the use of their intellectual property or attempt to invalidate patents, trademarks and copyrights registered by the Group. Likewise, the Group must guarantee the validity and the integrity of its intellectual property rights concerning its ideas, inventions and trade secrets. The policy implemented by the Group is based on:

Initiatives

Results

Dedicated in-house intellectual property team • Patent committee • Policy rolled-out across all R&D sites •

Intellectual property management policy and organisation

Assessment of the risks and freedom to operate achieved in all product or solution • development projects Review of intellectual property clauses in contracts • Portfolio of 340 patent families and 9 patent filings in 2018 •

Protection and enforcement of intellectual property

Filing of patents

Fighting against food waste Given the nature of Neopost's business, the Group does not believe that food waste is a significant CSR risk and does not warrant further discussion.

Tax evasion Given the late publication of the law related to fighting against fraud (23 October 2018), the Group has not been able to include the matter of tax evasion in its CSR risk analysis and/or address this issue; if it proves a significant risk, it will be dealt with during the next financial year.

96

REGISTRATION DOCUMENT 2018 / NEOPOST