Saint Gobain - Registration document 2016

7 RISKS AND CONTROL

3. Report from the Chairman of the Board of Directors on internal control and risk management procedures

Directors on internal control and risk Report from the Chairman of the Board of 3. governance (Article L.225-37 of the management procedures and corporate

French Commercial Code)

associated with the impacts of climate change and the Chief Executive Officer’s powers, and on the financial risks measures adopted by the Group to reduce them Compagnie de Saint-Gobain, on any restrictions on the control and risk management systems implemented by accordance with Article L.225-37 of the French Commercial procedures and corporate governance was prepared in This report on internal control and risk management certain aspects of corporate governance, on internal Report from the Chairman of the Board of Directors on Code, under the responsibility of the Chairman of the Board relevant departments of Compagnie de Saint-Gobain, and of Directors and on the basis of information provided by the 2017. was approved by the Board of Directors on February 23, aspects of corporate governance. The required disclosures French law requires to report to shareholders on certain parity on the Board, its organization and work, the Company’s relate to the composition of the Board of Directors, gender compliance with and implementation of a recognized the Chairman and Chief Executive Officer, the specific corporate governance code, any restrictions on the powers of Shareholders' Meetings, and lastly the principles and rules formalities for shareholders’ participation in General benefits of any kind awarded to the Directors. This information applied by the Board to determine the compensation and section 1.1. It was prepared on the basis of data supplied by is provided in chapter 6, sections 1 and 2, and chapter 10, reviewed by the Nomination, Remuneration and Governance the Legal, Human Resources and Finance Departments, was Committee and is incorporated by reference into this report.

The report must moreover include a description of internal the Group. This information, as set out in chapter 7, control and risk management procedures implemented within Group Internal Audit and Business Control Department and sections 2.1 through 2.5, was prepared with the support of the incorporated by reference into this report. has been reviewed by the Risk and Audit Committee and Lastly, the report should describe the financial risks measures that Saint-Gobain is taking to reduce them, by associated with the impacts of climate change and the activities. implementing a low-carbon strategy in all of its business atmospheric emissions and the climate impact, is set out in The Group’s environmental policy, specifically the control of chapter 4, section 2.3.2. chapter 2 and section 2.3.6 of chapter 4. Group’s businesses are described in sections 2.2.2 and 2.2.3 of The low-carbon strategy and the climate change impact of the managed for energy and raw materials. Chapter 7, section 1.3.2 (c) describes how price volatility is Group’s Responsible Development Department, the Insurance This information was prepared with the support of the has been reviewed by the Risk and Audit Committee and Department and the Treasury and Financing Department and

incorporated by reference into this report.

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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