QUADIENT - 2019 Universal Registration Document

5 NON-FINANCIAL PERFORMANCE STATEMENT Social, societal and environmental information

A CSR ambition defined with the stakeholders

In 2019, Quadient reviewed its materiality analysis, taking into account the transformation initiated by its new strategy, the evolution of the Company's activities and organizational changes. This assessment, aimed at identifying emerging material challenges with a horizon of three to five years, also provides insight into the Company stakeholders’ expectations and informs them about the importance of sustainability. In order to focus its efforts on the most material challenges, the Company conducted this assessment using the four-step process described below. IDENTIFICATION OF CSR CHALLENGES To meet the Company’s sustainability and CSR challenges, Quadient benchmarked sector best practices, international standards such as ISO 26000, the United Nations Sustainable Development Goals, the Global Reporting Initiative (GRI) and the issues raised by the Environment Social and Governance (ESG) agencies rating Quadient's non-financial performance. In total 52 topics have been considered and classified into four areas (People, Solutions, Ethics & Compliance, and Environment). CONSULTATION OF INTERNAL & EXTERNAL STAKEHOLDERS This consultation was the opportunity to spark open discussions with Quadient's stakeholders to better understand their perception of the performance, risks & opportunities, and their expectations of the Company's CSR strategy. In addition, they were asked to rate each of the non-financial challenges according to three criteria: importance level for the stakeholders, importance level for the Company's business and maturity level of the Company on these topics.

CONSOLIDATION AND MATERIALITY MATRIX To design the materiality matrix, internal and external scores were averaged using equal weighting between the different categories of stakeholders. The challenges retained were plotted on a materiality matrix. Stakeholder ratings were reported on the y-axis, with ratings based on importance to the business reported on the x-axis. The Company classified CSR challenges in three groups: critical, major and moderate challenges. ANALYSIS OF MATERIALITY RESULTS IN 2018 AND 2019 Quadient retained 18 sustainability and CSR challenges from its materiality assessment. Of these challenges, six are considered critical, eight were seen as major for the Company, and four were classified as moderate. Critical challenges correspond to the main issues related to the transformation of the Company: new strategy, new digital business and organizational change. Major challenges are historical in nature for Quadient, they were assessed previously and are still being carried out. Moderate challenges are still relevant to the Company, but only minimally affect its performance and are well under control due to existing programs.

People

Solutions & services

Ethical practices

Environment

MODERATE CHALLENGES

MAJOR CHALLENGES

CRITICAL CHALLENGES

Technology availability

Data privacy

Fraud & Corruption

Solutions & services offers

Diversity

Human capital development

Products stewardship

Products eco design

Sustainable procurement

Health & safety, well being at work

Human rights

Intellectual property

Attracting & retaining talent

Climate change

Product end of life

Community engagement

Significance of issues to internal and external stakeholders

Significance of impact

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UNIVERSAL REGISTRATION DOCUMENT 2019