SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

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Saint-Gobain today Strong values

2.3 Commitments linked to the challenges of sustainable development

2.3.1 Climate commitment The Paris Agreement ratified in 2016 creates a multi-dimensional framework for economies to implement carbon reduction policies. Recent Conferences of Parties (COPs) on climate change have marked a turning point, with improved participation in climate negotiations from non-government actors, including businesses. This momentum was confirmed at COP23 in Bonn (Germany) and strengthened by the “One Planet Summit” held in Paris in December 2017. Saint-Gobain took part in several side events at these summits. Businesses have a key role to play in the search for solutions to climate change. Saint-Gobain is thus among the 1,200 non-state actors that signed the Paris Pledge for Action on Climate Change. More recently, Saint-Gobain was a joint signatory to the French Business Climate Pledge announced at a side event organized by MEDEF at the One Planet Summit. Saint-Gobain also upholds the recommendations of the G20 Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). The action takenby Saint-Gobain is geared to reducinggreenhouse gas emissions from its processes and its real estate portfolio and, for its clients and its Activities, to enhancing its products and services so as to improve energy efficiency. In this regard, since January 2016, an internal carbon price now applies to all Group Activities to assist in guiding action to reduce CO2 emissions involving investments. Analysis of R&D projects now uses a significantly higher carbon price than the rate selected for investments. This measure aims to accelerate the transition to low-carbon technologies for Group operations (see Chapter 4, Section 2.3.2). Lastly, Saint-Gobain is committed to creating a low-carbon trajectory for the global construction industry and this is the reason it is a founder member of the Global Alliance for Buildings and Construction (GABC) and sits on its steering committee. This alliance, launched by France and the United Nations Environment Programme (UNEP) during the COP21, aims to bring states, local authorities, construction businesses and relevant associations together bymeans of a roadmap to smooth the transition toenergy efficient buildings with low greenhouse gas emissions. At global level, less than half of the contributions to which governments have committed in order to achieve the objectives set by the Paris Agreement include measurements for either new or existing buildings. Through its involvement in the GABC, Saint-Gobain seeks to demonstrate to all countries that the technical solutions exist, particularly for improving energy efficiency, regardless of geography – hot countries, cold countries, dry or tropical climates – and that these solutions are affordable. The GABC held a

symposium on construction at the COP23. In the context of the GABC, Saint-Gobain is jointly managing efforts to define targets to reduce carbon intensity following a science-based approach for the construction industry. Lastly, as part of the Global Climate Action Agenda, Saint-Gobain is a member of the alliance of companies for water and climate change. This initiative supports the actions of cities andwatersheds involved in the sustainable management of water resources and adaptation to the consequences of climate change.

2.3.2 Developing the circular economy

Saint-Gobain has two priorities for managing raw materials and waste: minimizing production waste and optimizing the recycled content in its products without affecting their performance. As a responsible stakeholder in sustainable building, the sustainable management of resources in conjunction with stakeholders in the regions and in compliance with local regulations is a major challenge for the Group (see the policy on Sustainable management of resources for transition to a circular economy, Chapter 4, Section 2.3.1). Saint-Gobain is a contributor to the debate on the circular economy and has repeated its support for strong goals for the building sector. In France, the Group has been heavily involved in the AFEP circular economy work group, which prepared a report and recommendations presented at the COP22. The construction sector generates several million metric tons of waste per year. Saint-Gobain is introducing projects to recover building or demolition waste, such as waste reduction at source with eco-innovation, on-site sorting of waste, and recycling of the waste collected. The Group has contributed to a number of local initiatives to promote sustainable building. In France, in April 2016 Placoplatre signed a green growth commitment for plaster waste recycling with the Ministry for the environment, energy and the sea. This innovative approach is part of a collaborative effort involving public bodies, the French national union of plaster industries ( Syndicat National des Industries du Plâtre ) and key players in the plaster industry. The Commitment to Green Growth for flat glass was signed by professional trade unions of the glass activity in 2017 for the whole of the activity in France. On the international level, Saint-Gobain joined at the end of 2017 the Factor 10 program of the World Business Council for Sustainable Development relative to the circular economy.

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