SOMFY - Annual financial report 2019

04 MANAGEMENT BOARDMANAGEMENT REPORT

Environmental certification and compliance The SOPEM factory in Poland is located on the edge of protected sites belonging to the Natura 2000 network:

Water consumption

31/12/18

31/12/19

Water consumption in m 3

45,733

46,685

Puszcza Niepolomicka PLB 120002; – Torfowisko Wielkie PLH120080. –

All the manufacturing sites are connected to wastewater collection and treatment networks, and their reprocessing rate stood at 100%. Greenhouse gas, combatting global warming and energy efficiency In addition to the eco-design measures implemented as part of the Act for Green ® programme, efforts have been made in relation to operations. A Greenhouse Gas Emissions Assessment (GGEA) relating to the 2018 financial year was conducted in 2019 covering the scope of Somfy Activités SA. This entity includes one of the Group’s major industrial sites and 29% of its workforce, equating to 1,641 employees out of a total of 5,711. In comparison with the GGEA completed in 2014, the results are encouraging. The amounts of greenhouse gas released into the atmosphere fell in absolute terms, down 6% to 3,484 tCO 2 e, while the workforce grew by 2.6% over the same period. A Group-wide Carbon Assessment ® is being prepared for 2020. The exact quantification of GHG emissions will determine the key potential for improvement to limit the impact of Somfy’s activities. The new strategic cycle launched in the same year has made combatting global warming a major strategic priority. The greenhouse gas emissions of the manufacturing sites are monitored and calculated using actual energy usage readings. Energy consumption 31/12/18 31/12/19 Gas (KWH) 12,016,326 12,546,919 Electricity (KWH) 14,988,502 13,991,315 Mineral fuel (KWH) 171,071 139,622 TOTAL ENERGY CONSUMPTION (KWH) 27,175,899 26,677,856 TOTAL GHG EMISSIONS IN CO 2 EQ (TONNES) 6,776 6,752 Efforts are continuing with investments in the production and distribution infrastructures in order to improve their energy efficiency and reduce greenhouse gas emissions. In 2019, an energy audit was carried out at Somfy Activités SA’s sites to identify new ways of reducing energy consumption. In 2019, the following began or ended: the replacement of old lighting systems with low energy LED – bulbs at the R&D Center, WAY, BFT and Lian Da sites; insulation work at the sites; – boiler replacements. – Measures to support biodiversity As an industrial business mindful of its carbon footprint, Somfy is duty bound to focus on protecting biodiversity. A proactive policy has been introduced, in connection with the drive to make the Group’s business model carbon neutral. Somfy Activités SA owns several sites in the heart of the French Alps, near Mont Blanc. Somfy acts to preserve mountain ecosystems by becoming involved in local initiatives. The company is a member of the Club d’Entreprises pour la Montagne et son Développement Durable (CEM2D).

The factory complies with strict requirements regarding the protection of its local environment. Compliance with environmental standards was also a precondition for setting up any plant. BFT is ISO 14001 certified in relation to its three major sites. Lastly, the Group operates in 58 countries. In 2019, the Group was not the subject of any appeal or proceedings relating to any potential violation of national environmental regulations in the countries in which it operates. However, these positive results cannot be deemed to be an end in themselves and the company intends to continue to implement proactive policies to ensure that the number of legal actions remains at zero. PROGRAMME’S PERFORMANCE IN RELATION TO SOCIETAL COMMITMENT — GENERAL DESCRIPTION OF SOCIETAL COMMITMENTS As with all companies, Somfy must ensure the consistency of both its image and its reputation. What it promotes in terms of values and ambition for its employees and customers must correspond to the reality perceived by them. To embody its vision of “inspiring a better way of living accessible to all”, Somfy has for a long time chosen to pursue a committed societal policy, embodying this vision in initiatives and areas that contribute to the common good and where Somfy has legitimacy. This consistency is essential to ensure customer loyalty, maintain the commitment of employees, retain talents and keep the skills acquired. Somfy’s societal commitments are focused on two areas: since 2004, a citizen commitment to combat poor housing via human and financial sponsorship; and for more than 20 years, a commitment by Somfy to the local and regional ecosystem surrounding its head office, in Cluses - a policy that is intended to be duplicated at its other major sites. In addition to the fact that these commitments are longstanding and pre-date the existence of reports on CSR in Somfy’s annual financial report, the risks addressed by this policy of societal commitment are of two types: firstly, it is a significant driver of employee commitment, and secondly, it has a positive effect on Somfy’s image and reputation in the eyes of its stakeholders in general and promotes the appeal of both Somfy and its employment areas to external candidates. A CITIZEN AND SPONSORSHIP COMMITMENT COMPONENT TO EMBODY A VISION AND VALUES Description of Somfy’s citizen commitment scheme and sponsorship policy Somfy’s citizen action embodies a desire to improve living environments for all, and to make this improvement accessible to all. Somfy’s policy of citizen commitment took the shape of a corporate foundation, created in 2004, whose aim was to combat poor housing and social exclusion via housing. A leader in the building industry and a promoter of better housing for all, this area of involvement where Somfy has credibility is both a logical and coherent choice. In 2019, the Group committed €350,000 in the Somfy Foundation’s initiatives and provide both it and the Endowment Fund Les Petites Pierres with an operational team of five full-time equivalents.

34

SOMFY – ANNUAL FINANCIAL REPORT 2019