NEOPOST - 2018 Registration document

5

Non-financial performance statement

Social, societal and environmental information

Initiatives

Results

Ecodesign policy rolled-out within project and R&D teams for franking and inserting machine • product lines Introduction of global reverse logistics to collect end-of-lease/rental, end-of-life products. • 51,546 products remanufactured in 2018 • 1,356.97 tonnes of non-hazardous industrial waste in 2018 ( versus 1,293.82 in 2017) • 18.82 tonnes of hazardous industrial waste in 2018 ( versus 17.31 tonnes in 2017) • 99.6% of industrial waste valorized ( versus 89.9% in 2017) of which 92% recovered for • material in 2018 (in 2017 material recovery represented 80.9%) 782 tonnes of WEEE (Electrical and electronic equipment waste) in 2018 • Implementation of a franking machine consumables collection process in the United States, • Canada, France, United Kingdom, Ireland, Benelux and Germany

Ecodesign of products

Remanufacturing of products

Reuse and recycling waste

Risk linked to changes in the regulations to reduce • greenhouse gas emissions: the Group is mindful of the development of such rules, existing or future, the increased stringency of which could have a negative impact on its future sales and activities, thus increasing its operational costs and reducing profitability. Risk linked to behavioural changes in stakeholders: • regulatory changes and the common aim of customers, investors and even shareholders to reduce CO 2 emissions are becoming increasingly important to companies whose proposed products and activities have minimal impact on the environment. Most public or private calls for tender include criteria on environmental performance and particularly on the carbon footprint of the products or services delivered. In 2018, Neopost's entities answered to 295 calls for teners with ESG criteria, out of which 57 were focused on the environment. Article 173 of the French Energy Transition Law requires institutional investors to transparently disclose how environmental, social and governance criteria are considered in their investment decisions.

Reducing our carbon footprint Aware of the consequences of the risks linked to climate change, the Group has analysed the potential effects of this phenomenon on its activities. Three risks that could have a medium- or long-term impact have been identified and are described below. Risk linked to the intensification of natural disasters and • events: on account of their geographic location, some Group sites and some industrial partners and suppliers are exposed to natural disasters or events such as earthquakes, or to climatic phenomena such as hurricanes, cyclones, typhoons or even floods and tidal waves, which will occur increasingly often. The logistics centre in Memphis, the production site in Drachten and the Neopost Hong Kong offices appear to be the most exposed. These events are likely to affect the availability of certain parts and components necessary for the manufacture of the products, and to damage production facilities, slow the supply chain, temporarily interrupt production and distribution, and potentially threaten the safety of employees.

Initiatives

Results

52% of the Group’s entities are ISO 14001 certified, including 100% of its industrial sites • Use of high-energy-efficiency or BREEAM certified premises; Bagneux, Rueil-Malmaison, • Stratford (United Kingdom), Milford (United States), reduction in surface area occupied by the Group of 11.2% Replacement of obsolete equipment, investment in higher performance and approved • equipment (boilers, heat pumps, heat recovery compressors), renovation of buildings (external insulation), installation of presence sensors, LED lighting Increased awareness of staff to eco-friendly ways of working • Virtualised operation of IT servers: 18 racks of servers and equipment such as routers, • switchers, UPS, communication equipment, storage equipment, cables, etc. have been reduced to 3 racks following initiatives carried out at Neopost Ltd in October 2018. Drop in energy consumption of 1.59% compared to 2017 (27,820.16 MWh in 2018 as • against 28,270.31 MWh in 2017) CO 2 emissions reduction by 8.5% compared to 2017 (12,349.29 Teq CO 2 in 2018 versus • 13,499.13 Teq CO 2 in 2017) for scope 1 and CO 2 emissions increase by 2.7% (6865.96 Teq CO 2 in 2018 versus 6686.32 Teq CO 2 in 2017) for scope 2 at constant scope

Reduce consumption and improve energy efficiency

98

REGISTRATION DOCUMENT 2018 / NEOPOST