QUADIENT - 2019 Universal Registration Document

NON-FINANCIAL PERFORMANCE STATEMENT Social, societal and environmental information

Compliance with US privacy regulation (CCPA Compliance) An inventory of data was carried out for all US entities as a first step to assessing compliance with CCPA requirements. Initial CCPA guidelines were provided for businesses. Selection of a service provider for the risk analysis that will be implemented in 2020. Engage with partners and suppliers who observe similar ethics and responsability standards similar to the Company's Quadient extends its CSR and ethical commitments to all its partners, which must comply with applicable laws and regulations, International Labour Organization conventions and its responsible procurement policy. To this end, since 2016 the industrial partnership and procurement department, in collaboration with QHSE (Quality, Health, Safety and Environment) and CSR management, has rolled out its Supplier Code of conduct and its responsible procurement policy across its entire range of manufacturing suppliers. The policy against modern slavery and human trafficking complements the measures take by the Company to support Human Rights. Quadient has also disclosed its conflict minerals policy to its electronic suppliers and requested them to provide evidences that they do not use conflict minerals in the manufacturing of components they deliver to Quadient.

Quadient seeks to establish mutually beneficial partnerships with its suppliers and to conduct business with them in a responsible, ethical and sustainable manner. The Company, therefore, endeavors to work only with partners who share its values and have similar ethical rules to its own. Quadient is also committed to choosing its suppliers carefully, fairly and with integrity. They are selected using the established procurement strategy or by invitation to tender based on their ability to meet the Company’s requirements in terms of quality, price, service, reliability, technology, safety, the environment and ethics. The Company also endeavors not to create a situation of mutual dependence in terms of revenue, technology and know-how. Quadient ensures that its suppliers comply with its requirements through dialog, 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 launched an annual CSR assessment campaign for its suppliers. Those who do not fulfil the Company's assessment are asked to provide an action plan. 221 suppliers assessed since 2017representing 98.9 % of the • total manufacturing purchases from the plants at Le Lude and Drachten and from Quadient’s OEM partners in 2019. 89.2 % of the suppliers assessed in 2019 obtained a score in • keeping with the Company’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 purchasing and • supplier quality teams present in Asia (Hong Kong). These teams cover all of the relationships with the Company’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 Company. • The Company was awarded “Gold” status (69/100) at the latest • assessment conducted by EcoVadis in 2019. It shares its profite with its customers (selection criterion in certain cases) and suppliers and invites its suppliers to complete the EcoVadis questionnaire. In 2019, Quadient increased its score related to responsible procurement by 10 points compared with 2018. 2019 Results

5

Objectives

Initiatives

Ensure that suppliers endorse the Supplier Code of Conduct

Assessment of suppliers’ CSR performance

Evaluate the CSR practices and policies of the suppliers

Supplier CSR audits

Staff involvement and training in responsible procurement

Involvement of suppliers and responses to non-financial rating agencies

Fighting against food waste

Tax evasion

Given the nature of Quadient's business, the topics such as the fight against food insecurity, the fight against food waste, and respect for animal welfare and sustainable food production as set out in Article L.225-102-1 of the French Commercial Code are not part of the main risks identified in the risk analysis performed in 2019. The report does not, therefore, cover these issues.

Tax evasion matter is presented in chapter 4 related to Risk Factors and Internal Control.

111

UNIVERSAL REGISTRATION DOCUMENT 2019