SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

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An efficient and responsible Group Operational excellence policies

A policy that applies throughout the a) organization, including at site level To coordinate measures to reduce energy consumption and CO 2 emissions (scopes 1 and 2), Energy Climate managers have been appointed in the most energy-intensive activities. They are tasked with analyzing performance gaps relative to the best performers for subsequent improvement, as well as with sharing good practices to be replicated across all sites. Depending on the Activity to which it belongs, each site defines progress objectives and procedures for monitoring the management of energy, atmospheric emissions, climate change and associated risks. These objectives take into account comparisons made on processes between different sites involved in the same Activity. The deployment of the World Class Manufacturing (WCM) program (see Chapter 4, Section 2.1) to all of the Group’s industrial sites is another driver for progress. Energy efficiency is an essential factor in the environmental and financial performance of Saint-Gobain’s sites which also enables the reduction of greenhouse gas emissions. The Group is encouraging energy audits on its sites and is setting up a system for energy management drawing on ISO 50001 certification. At the end of 2017, 90 sites in the relevant scope were certified to ISO 50001, compared with 85 a year earlier. In addition, the Insulation Activity has launched a process of energy audits with the aim of improving the insulation of the Group’s production facilities. Saint-Gobain places all its sites in a phase of continuous improvement. In this respect, they aim to identify and evaluate the Best Techniques and Practices Available (MTD) and then progressively upgrade them at an economically acceptable cost, in accordance with the Group’s environmental vision. An MTD deployment plan is defined, updated annually and included in the three-year strategic plan. For example, in the renovation of the flat glass float in Aniche, France, the industrial machinery was fully modernized at a cost of €30 million. Compared with the old facility, the resulting reduction in energy consumption is in the region of 20%; for CO 2 emissions, it is 38%. Promoting the use of low-carbon energy b) More than three-quarters of the Group’s total energy consumption is directly linked to the use of fossil energies. The ability of industrial processes to move from using fossil fuels to low-carbon energy solutions, electricity (where this is low-carbon), biogas, or even hydrogen, is therefore crucial. The Group’s industrial processes can be grouped into two categories: Processes that are technically suited to the use of „ electrical power alone. For these processes, the transition is facilitated by the development of local renewable electricity networks and the growing share of low-carbon electricity in national grids. This is the case for glass wool, for example;

Processes for which the adaptation to the use of electrical „ energy is technically more complex. This involves a dual approach to innovation, focusing on the expansion of low-carbon forms of energy and the development of processes for easier use of electricity. In order to reduce the CO 2 emissions connected with electricity purchases (scope 2), several General Delegations and Activities have undertaken a voluntary measure to obtain electricity supplies from renewable sources. On its sites, Saint-Gobain is also developing projects using new energies (wind power, biomass, biogas, solar power, etc.). These developments may be made in association with external partners. The cross-functional R&D program, “Improvement in our CO 2 footprint”, also includes an energy component: recovery of lost energy and research into the use of new, low-carbon forms of energy (such as biogas or hydrogen). Towards achieving a 2°C scenario c) No methodology has yet been published for setting emissions reduction targets for the construction industry. This item of data is essential for Saint-Gobain to position its contribution and its impacts, both positive and negative, on a 2°C trajectory. This is why Saint-Gobain has mobilized and committed as part of the Global Alliance for Building and Construction, in tandem with other players in the construction value chain (see Chapter 1, Commitments), and the support of “We Mean Business” and the CDP. This approach should allow for the definition of an approach to a low-carbon trajectory for the construction market. In parallel, Saint-Gobain has continued to evaluate the CO 2 emissions of the entire value chain of its Activities and has identified the main categories forming scope 3 of the Group’s industrial activities: purchases of raw materials; „ transport and logistics; „ energy excluding scopes 1 and 2; „ use of products sold. „ The impact of business travel and home-to-work travel is lower than that of the categories identified above, i.e. less than 5% of the total emissions (scopes 1, 2 and 3). The first evaluations of the scope 3 have estimated soda ash and cement are the two main sources of scope 3 emissions of the Group’s purchases. With regard to the use of products sold, the approach adopted by Saint-Gobain involves two points of view: impact: the scope 3 emissions resulting from the use of „ products sold have been evaluated. For example, for automobile windows, Saint-Gobain Sekurit is continuing to progress in its measures to lighten windows and incorporate external cullet in the composition of the glass in order to reduce vehicle CO 2 emissions;

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