QUADIENT - 2020 Universal Registration Document

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

5.1.5

REDUCING QUADIENT’S ENVIRONMENTAL FOOTPRINT

ecodesign of products, their remanufacturing and the recycling of waste generated by the industrial sites and products at the end of their life, thus encompassing circular economy principles. This code also defines a framework for all Quadient's entities that are committed to reducing their carbon footprint.

For several years, Quadient has been committed to protecting and preserving the environment. Given its activities, the Company’s main environmental challenges relate to its carbon footprint and the impact of its products and solutions throughout their life cycle. formalized in the Company’s code of ethics, focuses on innovation and the Quadient’s environmental policy,

Ambitions & targets 2021-2023

Ambitions

KPIs

2020 Results

Targets 2021-2023

of reduction of CO 2 emissions related to scope 1 & 2 compared to 2018 (Energy consumption and company vehicles)

32 (a)

28 by 2030 (b)

Take action to combat climate change and support global transition to a low carbon economy

of low carbon energy (renewable energy and heating network) of reduction of CO 2 emissions related to scope 3 for targeted categories compared to 2018 of industrial waste recycled

16.6

25

40 by m revenue or 30 in absolute by 2030 (c)

5.2 / m revenue

Foster circular economy principles in Quadient's operations and solutions to lower the Company's environmental footprint

86.4

>90

of hardware units remanufactured

34.6

>40

High reduction of scope 1 & 2 emissions due to COVID-19 situation in 2020. (a) Reduction target of 28 between 2018 (baseline year) and 2030 for scope 1 & 2 based on scenario of 1 growth (b) to 3 growth per year. Reduction target of 40 per m revenue for scope 3 on targeted categories between 2018 and 2030: use of sold product, (c) purchase of goods and services, business trips and employee commuting.

Take actions to combat climate change and support global transition to a low carbon economy

Aware of the consequences of climate change, Quadient is committed to reducing its carbon footprint and has set targets in line with the "well below 2°C" trajectory. RISKS RELATED TO CLIMATE CHANGE Quadient has analyzed the potential effects of climate change on its activities. Three risks that could have a medium- or long-term impact have been identified and are described below: events: on account of their geographic location, some Quadient 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, floods and tidal waves, which will occur increasingly often. The logistics center in Byhalia, the production site in Drachten and Quadient offices in Hong Kong appear to be the most exposed. These events are likely to affect the availability of parts and components necessary for the manufacturing of products, and to damage production facilities, slow the supply chain, temporarily interrupt production and risk linked to the intensification of natural disasters and ●

distribution, and potentially threaten the safety of employees; risk linked to changes in regulations to reduce ● greenhouse gas emissions: Quadient is mindful of the development of such rules, existing or future, the increased severity of which could have a negative impact on its future sales and activities, thus increasing its operational costs and reducing profitability; risk linked to behavioral changes of stakeholders: ● regulatory changes and the common aim of customers, investors and shareholders to reduce CO 2 emissions are becoming increasingly important for companies whose product offerings 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. 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.

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UNIVERSAL REGISTRATION DOCUMENT 2020