SOMFY - Annual financial report 2019

04 MANAGEMENT BOARDMANAGEMENT REPORT

ENVIRONMENTAL POLICY PERFORMANCE —

“Green Benefits”: Somfy products and solutions enable 1. buildings to reduce their energy consumption; “Green Products”: Somfy products and solutions are 2. eco-designed in accordance with the “Act for Green ® ” framework; “Green Teams”: Somfy products are developed, manufactured 3. and distributed by teams who introduce environmentally friendly practices to their workplaces; “Green Operations”: Somfy's production sites take into 4. account their environmental impact. Green Benefits Solar protection systems motorised and automated by Somfy’s solutions help to reduce the energy consumption of buildings. This is achieved both by limiting the winter heat loss of buildings and by protecting them from the heat in summer, thereby improving comfort in the summer and helping to reduce the installed air conditioning capacity. The ONIX, ES-SO, ESTIA, BBSA and London South Bank University studies have all shown that Somfy solutions and their carrier products could lead to a reduction in energy usage in relation to the heating, air conditioning and lighting of buildings. The ONIX study demonstrated a reduction of approximately 29% under real conditions. Large-scale heating studies of buildings are ongoing in order to consolidate these results, refine the Group’s calculation models and better quantify their impacts. In any event, the interim results of this work are similar and confirm the positive impact of the Group’s solutions on the energy consumption of buildings. Somfy’s business model as a response to global warming issues is reaffirmed as part of Ambition 2030 and in its pillars “Forward-looking in Smart Living” and “Rising value to Customers”. Green Products These products are awarded an Act for Green® label when they meet stringent eco-design requirements. The origins of Act for Green® can be traced back to the results of a Carbon Assessment® carried out in 2012 (1) . This Carbon Assessment® had established work on electricity consumption and the use of raw materials as priorities. Act for Green® is based on a framework taken into account by Research & Development teams. It incorporates requirements that are broken down according to several subject areas: controlling greenhouse gas emissions through moderate – electricity use and the choice of appropriate raw materials; seeking to use recycled and recyclable raw materials in the – composition of products; materials selected for their low impact on health and the – environment; product durability; – a statement of the environmental impacts in line with the PEP – ecopassport® programme in which Somfy participates. This programme, developed by the electricity industry, defines a standardised method for making environmental declarations in accordance with international regulations (ISO 14025 & ISO 14040s). The information contained in this PEP ecopassport® has been independently verified by Bureau Veritas CODDE. A roadmap for the integration of projects in the Act for Green® programme had been drafted in collaboration with development teams for the next two years.

Somfy is an industrial company whose products are installed in buildings. Worldwide, buildings account for approximately 20% of greenhouse gas generation. By promoting the smart control of opening and closing systems in homes and buildings, Somfy helps to reduce their energy consumption, by acting on light levels and by reducing needs for heating and air conditioning. Thus, Somfy solutions improve the energy efficiency of the buildings in which they are installed. Analysis of environmental concerns therefore focused on three aspects: consideration of the impact of global warming on the business model; the common good and taking into account the impact of operations on global warming and more generally the environment; and the potential operational consequences for the activities. The solutions provided by the Group offer energy savings in the buildings in which they are installed. Demand for the solutions offered by Somfy should remain steady and this environment should stimulate innovation in research into responses to global warming; perceptions of Somfy’s environmental performance by – stakeholders: Independently of the notion of vulnerability in relation to climate change, the desire to limit the environmental impact of its operations is a priority for Somfy. How its action plans are viewed by its stakeholders is key to ensuring the acceptability of the Group’s operations in the long-term in the territories in which it operates. The Group must lead by example and help to adapt to climate change in the regions in which it operates in order to ensure the longevity of both its activity and its strategy of attracting and retaining talent; impact on the industrial structure: – Climate change involves impacts that could affect the Group’s operations, in particular access to energy and water, as well as physical effects on buildings. These risks have been assessed as minor. Conversely, the environmental impact of its operations contributes to global warming and must therefore be taken into account in the general interest and to meet the expectations of stakeholders. To manage these risks, Somfy implements a general policy of reducing its environmental impact. Combatting global warming is a priority for the Group, which was reaffirmed by General Management in 2019. An effective policy of combatting climate change involves firstly measuring, and then reducing, greenhouse gas emissions. In 2020, Somfy is launching a Carbon Assessment ® globally, taking into account its entire carbon footprint. This assessment will form the baseline year from which the company’s own energy conservation and efficiency targets will be developed in order to manage the Group’s impact on global warming. The “We Act for Green” programme is the manifestation of Somfy’s environmental policy. “We Act for Green” is aimed at reducing Somfy’s environmental impact and transforming environmental problems into innovation opportunities for the Group and its value chain. It is structured around four pillars: The risks related to climate change identified are: impact of global warming on the business model: – GENERAL POLICY TO MANAGE ENVIRONMENTAL AND CLIMATE RELATED RISKS

Carbon Assessment® carried out in 2012 based on 2011 data. (1)

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SOMFY – ANNUAL FINANCIAL REPORT 2019