SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

An efficient and responsible Group Operational excellence policies

benefits: the innovating solutions developed by the Group „ to improve the energy efficiency of buildings make it possible both to reduce the negative impact of construction on the climate and to reduce the users’ energy bill. In order to highlight this contribution, in 2015 Saint-Gobain developed a methodology, in partnership with EY, that made it possible to estimate the greenhouse gas emissions avoided thanks to the insulation sold in Europe by the Group (see Chapter 4, Section 4.2). This calculation, which was updated at global level in 2017, helped to confirm the orders of magnitude established previously, namely that once they have been in use for an average of three months, the Saint-Gobain Group’s insulation solutions offset the emissions linked to the whole of their life cycle. In the next stage, the Group will extend the scope 3 evaluation while estimating the reliability of the methodology and the data for each category, in particular the most significant categories of trade purchases in terms of carbon impact. Manage the risks connected with climate d) change The Group has identified its main risks connected with climate change in order to be able to manage them. The modification to the water systems and, in particular, the development of water stress areas, which give rise to production risks and penalize local populations, are incorporated into the Water Management policy (see Chapter 4, Section 2.3.3). Through its signature of the CEO Water Mandate, Saint-Gobain forms part of the Alliance of Businesses for Water and Climate Change. This Alliance encourages signatories to measure their water footprint and to reduce their impact. The Group deals with increased risks of loss due to climate change (flooding, rainfall or storm) within the scope of its industrial and distribution risks prevention policy. This takes into account the increase in extreme climate events, which specifically lead both to damage that may be caused to the facilities or stock and to interruptions in production or supplies. The degree of exposure and vulnerability of the sites to natural events is updated regularly together with the action plan with a view to improving their level of prevention and protection. Limit other atmospheric emissions e) Saint-Gobain has undertaken an active measure to control its atmospheric emissions other than greenhouse gases. The energy and climate managers coordinate this measure within their Activities. When the primary measures are not sufficiently effective, dust emissions are controlled by investments in electrostatic precipitators or bag filters, depending on the type of industrial facility. This equipment also makes it possible to filter the heavy metals resulting from impurities contained in certain raw materials. Some Saint-Gobain factories, mainly the glass furnaces and the Pipe Activity sites, emit substances that participate in the acidification of the environment such as sulfur dioxide (SO 2 ) or the formation of nitrogen oxides (NO x ).

The primary measures introduced to reduce sulfur dioxide emissions include the reduction in energy consumption and the use of fuels with a low sulfur content. Primary measures to optimize processes, particularly combustion, make it possible to reduce NO x emissions at source. In addition to these primary measures, equipment for the secondary treatment of sulfur dioxide and nitrogen oxides is also installed. Water management 2.3.3 Saint-Gobain’s Water policy, which was adopted in 2011, followed the signature in 2009 of the CEO Water Mandate by Pierre-André de Chalendar. It confirms the desire to reduce the quantitative and qualitative impact of Saint-Gobain’s activities on water resources as much as possible, both on withdrawals and on discharges. The long-term objective is to withdraw as little water as possible and to aim for “zero discharge” of industrial water in liquid form, while avoiding generating new impacts for other natural environments and/or for other parties involved. Particular attention is paid to limiting the Group’s withdrawals in water stress areas and in not competing for access to drinking water with the local populations. To this end, the list of priority sites within the framework of the Water policy is not only based on the importance of water withdrawals as it was previously, but also on the concept of water stress. In this regard, Saint-Gobain uses the World Resources Institute’s “Aqueduct” atlas of the world, which allows each of the sites to classify its water risk from “low” to “extremely high”. This atlas is based not only on qualitative and quantitative physical risks (such as water stress or flood risk), but also on stakeholder risk (like access to water). In 2017, some 60 Group sites withdrawing more than 5,000 m 3 of water each year and representing around 15% of the Group’s water withdrawals were located in high-risk or very high-risk areas. Two sites are in very high-risk areas, one in India and the other in South Africa. To support the application of its Water policy on the industrial sites, Saint-Gobain has defined a Water standard that describes the minimum requirements that the sites must observe in future. It makes it possible to structure the improvement of the performance of sites in water management and the prevention of risks of water constraints, pollution and flooding. Its application aims to reduce the risks connected with water and the quantities of water withdrawn and of liquid water discharged, to favor the least sensitive sources of withdrawal and discharges, to control the quality of the water and to prevent accidental pollution. Saint-Gobain regularly evaluates the level of exposure of all its industrial sites to the water risk. The Water standard is applied as a priority on the sites with the highest water risks. The Group’s commitment to water preservation has led it to participate in the CDP Water Disclosure since 2012, which aims to encourage businesses to report in detail on the risks and opportunities concerning water management and to report results transparently.

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