SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

4

An efficient and responsible Group A Group that is committed to the professional growth of its employees

Since 2016, the management of survey results has been coordinated in order to consolidate the lessons learned at Group level. An analysis is performed by broad topic area based on the Saint-Gobain Attitudes. This analysis is focused on the five best and the five worst scores, the three biggest improvements and the three biggest deteriorations, by scope and globally. At local level, the results of these surveys are analyzed and fed into progress plans and action plans to facilitate employee commitment in the General Delegations. Group performance indicators are monitored including the number of employees invited to respond, the response rate and the approval rate expressed. The approval rate is the proportion of positive opinions expressed across all seven Group questions. It reflects acceptance of the Group’s values and confidence in the strategy and management. Over the years 2016 and 2017, 148,671 Group employees, about 83% of the total headcount were directly interviewed. 72.9% of the employees that were invited replied to the survey. The question that gained the highest level of global approval was the one that was relative to their confidence in the Group’s success, with levels of approval between 74 and 100% depending on the regions. In that way, they expressed their optimism, their commitment and their trust in Saint-Gobain’s strategy and management. Compensation policy and benefits b) Regarding compensation, the basic salary standards are defined by the General Delegations in each country and activity sector based on the market conditions. The companies then draw up their wage policy. At the same time, employee share ownership offers employees the possibility of becoming shareholders under preferential conditions. The Group Savings Plan (PEG) enables them to acquire Saint-Gobain shares benefiting from a discount and, in some countries, from an additional amount. In France, to encourage a team spirit and to associate each person with the success of the Group, Saint-Gobain favors the conclusion of collective profit-sharing agreements. Saint-Gobain also seeks to offer its employees health cover enabling them to obtain effective protection against the uncertainties of life. In France, social policy on health and pension expenses has been harmonized for all the companies, by mutualizing plans and benefits in order to offer common cover to everyone. The Group wishes to continue this measure for the social protection systems, in all its countries of establishment. To address social issues specifically, dialogues are held and applied to local priorities. The Group’s General Delegates periodically meet employee representatives to exchange views on the strategy and local challenges. In France, besides the numerous meetings held within the companies in particular, the Chairman and CEO of Saint-Gobain chairs the Group Committee (the authority representing employees at Group level in France) and hosts central union coordinators at least once a year. At European level, the Chairman and CEO chairs the Convention for European Social Dialogue Social dialogue c)

which brings together 70 union representatives from 27 European countries annually. With the aid of an independent expert, this Convention makes it possible to supplement the national dialogue by dealing with subjects of common interest such as safety or the trend of employment on European industrial sites. These subjects are raised in particular by the members of the Select Committee, which acts as spokesman for the Convention, who benefit from specific training to perform their role. In an uncertain economic context, Saint-Gobain is committed, as far as possible, to implementing solutions to safeguard employment and only to making job cuts as a last resort. The aim is initially to reorganize to deal with situations on a temporary basis, as in the case of temporary lay-off, or to favor internal mobility agreements which, associated with incentive measures, make it possible to maintain jobs within the Group. When restructuring is inevitable, the employees affected by workforce adjustments benefit from personalized support programs which may result in training associated with retraining, assistance for geographic mobility or support for the execution of a personal project, such as the creation of a business. In France, the Saint-Gobain Development structure provides this supporting role (see Chapter 4, Section 4.1.2). Wellbeing at work d) Saint-Gobain is strengthening its human resources policy by including a wellbeing at work program which aims to optimize and harmonize best practices everywhere that the Group is present. This program accounts for specific local and cultural characteristics and draws on the network of General Delegations for its local implementation. During 2017, best practices and employee expectations were collected across all the countries, supplemented by innovative recommendations. These will be referenced and calibrated to facilitate the local roll-out of initiatives with a requirement for operational quality. This first year of consolidation will be followed in 2018 by the worldwide launch of this program. Generally speaking, Saint-Gobain wishes to create a motivating and engaging work environment, respectful of the work/life balance for all employees. As such, flexible working and telecommuting are encouraged. The same applies to the CARE:4 ® extension, the energy efficiency improvement program for Saint-Gobain’s tertiary buildings, based on concepts of working comfort and conditions (see Chapter 2, Section 2.2.2). Develop talent 3.2.4 The “TALENT” element of the OPEN program is aimed at all employees to anticipate the Group’s needs and support its strategy. It is the subject of an annual progress update meeting with the members of the General Management Committee. The “Saint-Gobain Talents” program identifies managers with significant development potential or key skills. Defined locally, at all levels and in all Group businesses, it enables career plans to be drawn up, favoring diversified paths. The development of personal reviews and succession plans, mentoring and relations with the Group’s target schools and universities reinforce this measure.

86 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017