Plastic Omnium // 2021 Universal Registration Document

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NON-FINANCIAL REPORTING DISCLOSURE The risk management and non-financial reporting of the Group

Materials with a low carbon footprint The Group is actively working with its raw material suppliers to reduce their carbon footprint. Plastic Omnium is committed to using recycled plastics in its products. In 2020, the Group joined an AFEP (French Association of Private Companies) initiative along with 33-member companies to promote circular economy and innovative projects in this area. In addition, car manufacturers are committed to the wide-scale introduction of recycled materials in their products. In 2021, the Intelligent Exterior Systems teams achieved a major milestone in the incorporation of recycled plastics (PIR and PCR) into body panels by finalizing a demo plant containing 50% recycled plastics (including visible parts) without reducing the operational performance expected by customers. The business line has tested numerous recycled materials. In its HDPE purchasing policy, Clean Energy Systems favors suppliers with the most ambitious plans to reduce the carbon content of their material, with very significant gains expected from 2026 (more than 40% compared to the European average). In addition, the business line is exploring new avenues, such as the procurement of bio-sourced HDPE. This approach is a complex subject and requires a multi-criteria analysis: availability, cost, competition with food, supply technical compatibility, etc. A vehicle fuel tank is a safety device that is required to meet stringent regulations and specifications. As a result, the material must meet specifications and approval from customers. To date, the specifications of Plastic Omnium’s customers do not allow the use of recycled materials and no bio-sourced materials are approved. At the same time, New Energies' teams are exploring the potential of bio-sourced carbon fiber that would retain the advanced technical characteristics sought for high-pressure hydrogen fuel tanks. Waste management Industrial activity generates waste that must be recycled. Environmental standards set out best practice to make sorting and recycling more efficient. The Top Planet program, initiated in 2006, aims to reduce the environmental impacts of production in its plants. Internal production residues are reused in the manufacturing process where technically possible in order to reduce the amount of waste generated. This material, crushed and reintroduced into the process, represents 5% for Intelligent Exterior Systems and 40% for Clean Energy Systems. Production waste (plastic parts that cannot be reinjected into production, packaging waste, etc.) undergo the appropriate recovery process: recycled waste comprising reuse (with a usage identical to the one for ● which the part or product was initially designed, without intermediate processing), recycling or material regeneration (giving the material its primary properties back, by processing or introducing additives that enable it to be put back into the production cycle); recovered waste including reuse (with another use) and valorisation by ● incineration with energy recovery; final waste, which includes non-recovered waste: waste incinerated ● without energy recovery and waste disposed in landfill. When possible and to promote circular economy, the sites resell their waste to reduce non-recoverable waste as much as possible. The resale of waste generated €8,16million in 2021.

The Intelligent Exterior Systems business line is acquiring tools and organizing itself now to anticipate regulations and customer specifications: A team is dedicated to perform complete LCAs to go from the current two or three LCAs to around 100 LCAs starting in 2022-2023. For this, the project started in 2021 to create the tool by automating the footprint calculations as much as possible and adapting the processes. The aim of the complete LCA project is to improve efficiency and accuracy. This tool will make it possible to calculate the environmental impacts and adapt to regulatory changes and customer requirements. In addition, a simplified LCA tool was developed in 2021 with the support of CETIM (Centre Technique des Industries de la Métallurgie) and Altermaker (eco-design and LCA software). The objective is to provide a tailor-made solution that can be used rapidly by innovation project managers. By choosing the type of plastic, the process or the weight of steel used, they can measure the environmental impacts and incorporate these criteria into the overall decision-making process. In 2021, around ten project managers were trained in this tool, which allows them to obtain results in a few days with a standard deviation of only 20% compared to a full analysis. The tool was developed on the basis of a database including six environmental indicators: CO2 emissions, air pollution, water pollution, use of metarial, energy and non-renewable ressources. A module allowing the integration of a virtual calculation of CO2 emissions will also be added to Plastic Omnium’s costing software. Each stage of the product’s manufacture will be estimated in terms of costs and carbon impact. In this context, in 2021, efforts continued to implement and create databases of emission factors based on data collected from suppliers and Plastic Omnium plants. These databases will then be used to calculate emissions for each type of product, process or manufacturing phase. These databases will be expanded and updated regularly through audits and verification of data available in the industry. These continuous updates enable Plastic Omnium to respond competitively to customer requirements. The Clean Energy Systems business line has been involved in a comprehensive life cycle analysis of fuel systems since 2019. A parametric LCA model was built in collaboration with the European Association of Fuel System Manufacturers PlasFuelSys. It includes criteria related to the types of raw materials (fossil, organic, recycled), energy consumption (depending on the energy mix of each plant), transportation and end-of-life. The challenge is to obtain a dynamic mapping by identifying levers that can be used to reduce environmental impact (supply of bio-sourced and recycled materials, transportation distances, energy efficiency of production tools, supply of green energy, usage and end-of-life/recycling). The results of the study confirm the interest of converting metal tanks into plastic tanks for new models. In addition to the weight saving, which provides the latter with a significant advantage in terms of CO2 emissions in use, CO2 emissions in manufacturing are also favorable. End-of-life chemical recycling (see below) will eventually replace current energy recovery. For New Energies, well-to-wheel emissions when using a hydrogen fuel cell vehicle will be zero when hydrogen production is completely decarbonized. However, LCAs are required in order to optimize the full impact of this new solution. In 2021, a first simplified LCA was carried out according to the structure of the materials. The primary source of emissions is carbon fiber, due to its current manufacturing process. The teams therefore launched, in collaboration with suppliers, medium/long-term action plans to reduce the impact of this material. The teams are also continuing their efforts to optimize aerodynamics and make products lighter. For electric or hydrogen-powered vehicles, for which emissions “from tank to wheel” are zero, these weight optimizations will help reduce energy consumption.

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PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2021