Saint-Gobain // Universal Registration Document 2021

An efficient and responsible Group Maximize the contribution for the planet and communities

Opportunities and risks related to the Group’s value chains, particularly in construction 2.1.2.1 The identification and assessment of risks and opportunities related to climate change is an integral part of Saint-Gobain’s global risk management and innovation processes. As such, the Group has identified ten risks and five strategic opportunities related to climate change. Each risk and opportunity affects each segment of the Saint-Gobain’s value chain differently, from the extraction of raw materials to their end of life. The tables below show how the opportunities and risks identified by Saint-Gobain impact each stage of the value chain while being part of global market dynamics and meeting consumer expectations. This approach has also been aligned with TCFD recommendations. The identified risks are not of material financial significance to the Group.

IMPACT ON VALUE CHAIN Extraction and treatment of raw materials

Clients’ expectations Other stakeholders’ expectations

Manufacturing and distribution, in particular of construction materials

TYPE OF RISK RISK

POLITICAL AND LEGAL

Increase in the price of GHG emissions

In Europe, risk of competitiveness with respect to imported materials Risks associated with the substitution of raw materials currently used

Increase in manufacturing and distribution costs

Increasing demand for low-carbon buildings and products Demand transparency and choice of more sustainable solutions. Stop purchasing of certain solutions Threat to the company’s reputation Development of the circular economy Communication expectations for carbon intensity of materials and products Risk of loss of competitiveness if consumers continue to use high-carbon solutions Changing preferences encouraging to use new materials

Demand for reduced emissions from products and operations Demand transparency and orientation towards more sustainable solutions. Reputational risk Exposure to claims for damages resulting in financial costs Increased R&D spending to develop low-carbon solutions Increase in R&D spending needed to develop breakthrough innovations Increase in R&D spending required to develop extraction methods and search for low-carbon raw materials Growing impact of public opinion on investors. Legal risk Increasing requirements in terms of safety and resilience of structures to limit additional delays and losses Consideration of commitment of companies to at-risk populations; Calls for new construction methods adapted to these growing risks

3

Product composition and regulatory changes

Risks associated with the implementation of new compositions

Climate change litigation

Disruption of certain supplies

Disruption of operations

TECHNOLOGICAL Substitution of existing products with low-carbon options

Use of low-carbon raw materials. Availability and costs

Integration of low-carbon solutions into the product range. Pace vs competition and demand Fluctuation in project profitability as a function of the production cost of low-carbon products

Transition to low-carbon technologies

Fluctuation in project profitability as a function of low-carbon raw material costs Rising cost of carbon-intensive raw materials Risks associated with the retention of extractive practices and usage of fossil energies Disruptions and delays in the extraction, transportation and delivery of raw materials Reduced availability and/or increased cost of raw materials from suppliers exposed to

MARKET

Increase in the price of raw material and energy

Increase in production cost

REPUTATIONAL Perception within civil society

Risk of reduced demand for products

Growing attention and responsiveness to climate change issues

in the event of negative public opinion

ACUTE PHYSICAL Increase in the intensity and frequency of extreme events (cyclones, floods)

Decrease in production capacity due to damage and loss of equipment and buildings Increasing exposure of sites to the risk of flooding and high temperatures affecting production costs and energy consumption

Ensuring the safety of workers throughout the supply chain

CHRONIC PHYSICAL

Sea level rise, increase in average temperatures, change in precipitation regime

Consideration of risk of water shortage at the local level Construction of affordable housing adapted to the physical risks for local populations

risks of high heat, flooding or lack of water

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 83