Saint-Gobain // Universal Registration Document 2021

2

Strategy The Group’s environment

Climate change 1.1.1 Faced with the challenge posed by climate change and its consequences for economic, social, environmental and geopolitical balances, the priority response is to decarbonize the economy as a whole. A drastic reduction in greenhouse gas (GHG) emissions on a global scale is essential. However, the overall trend is not satisfactory, with a trend in GHG emissions that has remained, over the last few years, in a direction contrary to this objective.

Paris catastrophic consequences. In terms of action levers that could improve the short-term outlook, the report focuses on reducing methane emissions from fossil fuels, waste and the agricultural sector, as well as on the development of carbon markets. The construction sector plays a key role in this landscape, as it alone accounts for nearly 40% of annual CO 2 emissions worldwide, including 28% for the operation of buildings (operational emissions related to heating, air conditioning or domestic hot water) and 11% for “gray” carbon related to the production of materials, their transport, construction equipment, i.e. embodied carbon (5) . There is therefore no road to carbon neutrality without a change in the sector. Beyond construction projects, we must also look at existing buildings, as it is estimated that nearly two-thirds of the current stock will still exist and will continue to emit carbon in 2040 (6) . Decarbonization efforts must also be made here, through renovation initiatives aimed at improving energy efficiency, eliminating the use of fossil fuels (coal, gas, fuel oil) for heating, and through the use of renewable energies. It was estimated, for example, as early as 2018 that to meet the objectives set by the Paris Agreement, the energy intensity per square meter of buildings worldwide must improve by an average of 30% by 2030 compared to 2015 (7) . In this context, in addition to states, other players in society, and in particular companies, have a key role to play, by adopting ambitious approaches and setting binding targets in order to maximize their contribution and minimize their environmental footprint. In 2019, Saint-Gobain formalized its commitment to the “Business Ambition for 1.5°C” initiative, supported by the United Nations Global Compact (regarding the partnership with the Global Compact, see chapter 3, section 1.3.1). This initiative urges business leaders to commit their companies to concrete targets aligned with limiting the global temperature increase to 1.5°C above pre-industrial levels, with the ultimate goal being to support a “truly systemic transformation (8) ”. Saint-Gobain, which had already committed to reducing its CO 2 emissions by 20% between 2010 and 2025, is now committed to achieving the objective of “net zero emissions” by 2050. Beyond contributing to collectively essential efforts, the Group believes that carbon neutrality is compatible with growth and that a low-carbon economy offers prospects for virtuous growth. Agreement, with potentially

Global CO 2 emissions, 1960-2019 (1) (index 100 in 1990)

180

160

140

120

100

80

60

40

20

0

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015 2019

The Covid-19 pandemic had a temporary beneficial effect on CO 2 emissions in 2020, with a decrease due to the drop in production and transport. The momentum remains worrying across all indicators, for example, with global demand for coal exceeding the levels of 2019 in 2021 and approaching its record level of 2014, as indicated by the International Energy Agency (2) . In this context, the positive note comes from the renewable energy sector, whose electricity production is expected to increase by more than 8% to 8,300 TWh in 2021, the highest annual growth since the 1970s (3) . In 2015, the Paris Agreement established an important benchmark by setting out the ambition to keep the rise in temperatures below 2°C compared to the pre-industrial era, which means reducing GHG emissions by 2.7% per year from 2020 to 2030. Each year, on the basis of the latest scientific work, the Emissions Gap Report of the United Nations Environment Program (UNEP) compares the gap between these commitments and the reduction required to meet the objective. Its latest edition, published in October 2021 (4) , indicates that with the climate commitments, the trajectory results in an increase of 2.7°C at the end of the century, well above the objectives of the

(1) European Union, EDGAR - Emissions Database for Global Atmospheric Research - https://edgar.jrc.ec.europa.eu/ (2) International Energy Agency, op. cit., pp. 11-12. (3) Id., p. 24. (4) United Nations Environment Program, EGR21: The Emissions Gap Report 2021: The Heat Is On / A world of climate promises not yet delivered – https://www.unep.org/resources/emissions-gap-report-2021 (5) https://architecture2030.org/why-the-building-sector/ (6) International Energy Agency, op. cit. (7) UNEP / Global Alliance for Buildings and Construction – The 2018 Global Status Report – Towards a Zero-Emission, Efficient and Resilient Buildings and Construction Sector, p. 10. (8) “Join the campaign for our only future” – https://unglobalcompact.org/take-action/events/climate-action-summit-2019/business-ambition

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 40

www.saint-gobain.com