QUADIENT // 2021 Universal Registration Document

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

Risk

Description

Mitigation actions

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

The Company has implemented various actions to anticipate and comply with environmental regulations and standards. Quadient has defined a responsible design and sustainable manufacturing approach in which energy efficiency requirements are implemented. All of the products respect the ErP Directive and the iX-9 Series high-volume mailing system are qualified according to the new Energy Star Imaging Equipment V3.1. The Company has carried out life cycle assessments of its main hardware and software products and identified action plans to reduce the energy consumption and carbon footprint related to the use of the products. Quadient also participates in the work of the AFNUM and follows closely any change on the WEEE and climate change-related regulation that could impact its activity to organize its processes pro-actively. For instance, ink cartridges were included in the WEEE directive with transposition in national law in EU. Quadient, as a producer of cartridges, put in place a take-back program in every EU country where it operates. Quadient has implemented a responsible design and sustainable manufacturing approach, conducted life cycle analysis on its main hardware and software solutions and implemented actions to lower the carbon footprint of its solutions. The Company is also conducting a series of customer satisfaction surveys to assess its strengths and weaknesses and their importance for the customer to determine priority areas for improvement. Since 2020, new survey questions regarding CSR topics have been introduced to understand if Quadient is perceived as a Company that seeks to limit its impact on the environment. Quadient also respond to its customers solicitations and ESG rating agencies questionnaires and share the results with them when requested.

and activities, thus increasing its operational costs and reducing

profitability. As a producer of hardware and software solutions, the Company needs to be vigilant with environmental regulations, standards, and voluntary agreements aimed at reducing energy consumption, WEEE, and the carbon footprint of products.

Emerging regulations

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.

Market: Changing customer behavior

In 2020, the Company committed to reduce its absolute ● CO 2 emissions related to scope 1 and 2 by 28 by 2030, i.e. an absolute reduction of 5,020 teq CO 2 compared to 2018, which implies a reduction at constant scope of 6 each year. 2021 showed a significant reduction in the Scope 1 and 2 emissions compared to the baseline (45.9 ). To keep the benefit of the improvements made and ensure the CO 2 reduction target tied to scope 1 and 2 is still challenging, the Company increased its ambition with more aggressive targets in line with a 1.5°C trajectory instead of 2°C. Thus, by following this new scenario, the Company committed to reduce its scope 1 and 2 emissions by 50.4 by 2030 vs. 2018's baseline instead of 28 .

SETTING CO 2 EMISSION REDUCTION TARGETS ALIGNED WITH A 1.5°C SCENARIO In 2020, Quadient set its targets (baseline 2018) to reduce its GHG emissions at a pace that meets the "well below 2°C" trajectory requirements. Using the ACA (Absolute Contraction Approach) methodology, the Company has committed to two relevant and ambitious long-term targets in accordance with the SBTi methodology. Following the Company's reduction of C02 emissions from 2019-2021, the Company decided in early 2022 to increase its ambition from the "well below 2°C" trajectory to 1.5°C.

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UNIVERSAL REGISTRATION DOCUMENT 2021