SOMFY - Annual financial report 2019

04 MANAGEMENT BOARD MANAGEMENT REPORT

The target defined at the start of the policy, in 2015, was to achieve certification for 80% of amounts of Somfy brand products sold in 2020. The updated roadmap shows that the threshold achieved at the end of 2020 will be above 65%. Requests, both from customers and regulatory, in relation to awareness of the substances used in products have continued. Somfy actively monitors regulatory developments and conducts detailed laboratory analysis of substances. The Group is monitoring the progress and implementation of these regulations by taking part in the FIEEC’s (1) “GT Substances” working groups. In Europe, end-of-life products are collected and processed under the WEEE (Waste Electrical and Electronic Equipment) Directive. These collection and processing initiatives are organised by environmental organisations with which Somfy has contracts in different countries of the European Union. In general terms, Somfy contributes to the implementation of the circular economy through its involvement in professional organisations such as the FIEEC, IGNES (2) and the Technical Committee 111 (3) . Green Teams Driven by the desire to protect the environment and in accordance with its values and those of its workforce, Somfy encourages its employees to increase the number of green initiatives and best practices. Somfy has committed to promoting environmentally friendly practices amongst its employees and its local ecosystem: a network of volunteer eco-ambassadors promotes environmental initiatives amongst their colleagues. In 2019, this network of eco-ambassadors was made up of 43 people, across 17 of the Group’s sites in 12 countries. The network covers 3,165 employees, equating to 55% of Somfy’s workforce. These eco-practices are coordinated and promoted through a webzine, website and in-house social network. In addition, the Group has incorporated the presentation of its sustainable development policy and values into the induction days for new employees. The Green Teams programme has a dual objective. It involves raising awareness and changing mindsets to ensure everyone understands the importance of environmental issues, while responding very favourably to ever greater demands for commitment from the Group’s employees and stakeholders.

Green Operations

The Group rolls out action plans in order to limit its reliance on energy supplies. Moreover, the industrial sites are traditionally subject to physical risks. In Somfy’s case, its factories are fairly new and built in accordance with the standards applicable to buildings in the countries in which Somfy operates. Climate change is faced with the geographical location of the Group’s infrastructures. Changes in rainfall and their impact on water resources is not a direct risk for the Group’s manufacturing sites. The industrial processes employed in the factories do not use water. Furthermore, the industrial sites are inland from coastal areas and are therefore not at risk from rising waters. Lastly, the number of sites located in areas subject to an increase in the severity of tropical storms is low. The vast majority of physical risks related to climate change should therefore not directly affect the Group’s industrial structure. ACTIONS AND EFFECTS OF THESE POLICIES ON THE ENERGY EFFICIENCY OF PRODUCTS AND TAKING CLIMATE CHANGE INTO ACCOUNT Somfy is a member of the Active House Alliance, which promotes healthier, more comfortable buildings that do not have a negative impact on the climate (4) . The efficiency of Somfy solutions in reducing the energy consumption of buildings is also recognised by French legislation. Its solutions have been integrated into regulation RT2012 which transposes European Directive EPBD (2010/31/EU) into French law. It is aimed at reducing by a factor of three the energy consumption of new buildings so that the construction sector becomes carbon neutral by 2050. In this context, animeo Connect, the range of controls for fully connected solar protection, was awarded the Solar Impulse Efficient Solution label (5) by the Solar Impulse Foundation. This solution considerably enhances opportunities for energy conservation and increased comfort for occupants. Results of the Green Buildings action plan

FIEEC: French Federation of Electric, Electronic and Communication Industries. (1) IGNES: French Association of Digital Power and Security Engineering Industries. (2) INTERNATIONAL ELECTROTECHNICAL COMMISSION Technical Committee 111: Environmental standard for electrical and electronic products and systems. (3) https://www.activehouse.info/about/about-active-house/. (4) https://solarimpulse.com/efficient-solutions-search?_method=POST&_method=GET&search=&search-hidden=&autocomplete= (5) 26&autocomplete-category=Solutions&autocomplete-field=solutionList&autocomplete-label=animeo+Connect.

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SOMFY – ANNUAL FINANCIAL REPORT 2019