SOMFY // 2022 Annual Report

03 NON-FINANCIAL STATEMENT

GROWING WITH THE GROUP’S ECOSYSTEMS

DEVELOPING THE BUSINESS ECOSYSTEM

ASSUMING RESPONSIBILITY FOR THE FUTURE OF ECOSYSTEMS — LONG-TERM RELATIONSHIPS SOMFY’s Purchasing Department believes that it must operate within the framework of long-term relationships with the Group’s suppliers. Performance and strategic reviews allow SOMFY and its suppliers to align and identify areas for improvement, making these relationships beneficial for all parties. These reviews are carried out on a regular basis. REDUCING THE CARBON FOOTPRINT OF THE SOMFY SUPPLY CHAIN - PROMOTING LOW CARBON SOLUTIONS Compliance has been at the heart of the Purchasing Department’s work with suppliers for many years: Conflict Minerals and REACH/RoHS. Each year, campaigns are launched to guarantee the compliance of the products purchased with the latest applicable regulations. In line with the objectives mentioned in the “Planet” paragraph to reduce the carbon footprint of SOMFY’s supply chain, supplier selection now includes sustainable development criteria. The carbon footprint of the products on offer, as well as the sustainable development approach of the partner suppliers, are considered in their selection. SOMFY’s Purchasing Department implemented a carbon footprint assessment tool for all procurement in 2022. FOSTERING ECOSYSTEM RESILIENCE — MONITORING OF SUPPLIER RISKS The Group is convinced that the resilience of its supply chain is key to ensuring sustainable growth and the Purchasing Department has implemented a reinforced supplier risk management system: – its coverage has been extended. The number of suppliers assessed according to the risk analysis matrix increased by 85%. 141 suppliers are now evaluated. There were 76 in 2021 and 49 in 2020; – risk assessment is now carried out more frequently with a rating review every three months; – governance has been strengthened, as has the coordination of action plans. All SOMFY stakeholders are involved in monitoring and decision-making. In doing so, the level of risk identified as high decreased by 18% in 2022 despite the current environment and global crises.

HAVING A POSITIVE IMPACT ON THE ECOSYSTEM — Given that SOMFY buys all the components that make up its products, relationships with its suppliers are key. The Group goes further, driven by the firm belief that its Purchasing Department can have a positive impact on the ecosystem. The Purchasing Department promotes the commitment of each supplier. This commitment is incorporated in the responsible purchasing policy and, in contracts outlining the relationships between the Group and its partners, is formalised by the signing of a Charter on the Social and Environmental Responsibility of SOMFY Suppliers in terms of human rights, employment laws, environment, fair practices and combatting corruption. The expectations are shared from the qualification phase onwards. 58 suppliers have signed this Charter, including 100% of new suppliers, which is in line with the 2030 target. The Purchasing Academy, created in 2022, helps to strengthen the Group’s common culture. The onboarding rolled out to all buyers, regardless of their seniority, reaffirms the convictions and values that each buyer must embody. Having a positive impact on the supplier ecosystem is at the heart of everything the SOMFY’s Purchasing Department does. Every day, the buyers reaffirm this policy to the suppliers. The Excellence Department is also developing the expertise of buyers in relation to CSR topics. The Purchasing Department’s onboarding includes a chapter on Responsible Purchasing. Buyers are also reminded of business ethics through role-playing. To date, 96% of buyers have been trained. FOSTERING SUPPLIER ENGAGEMENT REAFFIRMING CONVICTIONS AND UPGRADING EXPERTISE

PROXIMITY

54% of suppliers are located within 500 kilometres from the assembly site. In 2021, 44% of purchases met this criterion. The indicator now includes the Rumilly (France) and Nanxun (China) sites. Only the BFT (Italy) site is not included. On a like-for-like 2021 scope, the indicator would be 50%.

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SOMFY – ANNUAL REPORT 2022