SOMFY // 2022 Annual Report

03 NON-FINANCIAL STATEMENT

GREEN TAXONOMY

In accordance with its objectives to reduce greenhouse gas emissions by 55% by 2030, which were reaffirmed in July 2021, the European Union (EU) has introduced a classification system for economic activities according to their environmental impact: the European Green Taxonomy (Green Taxonomy). It has published European regulation 2020/852 of 18 June 2020 (referred to as the “Taxonomy” regulation) (1) on the establishment of a framework intended to promote sustainable investments within the EU. SOMFY is required to publish, for the 2021 financial year, performance indicators that highlight the eligible proportion of its sales, investments (CAPEX) and some of its operating expenses (OPEX) resulting from products and/or services associated with economic activities considered to be sustainable within the meaning of this regulation and its delegated acts for the first two climate related targets regarding mitigation and adaptation to climate change. For 2022 reporting, given that SOMFY no longer meets the definition of a Public Interest Entity (PIE), it publishes the Taxonomy-eligibleand aligned portion of its sales, CAPEX and some of its OPEX for the same two climate targets on a voluntary basis. An activity is considered as aligned if, firstly, it is eligible under the first two objectives of the Taxonomy and if, secondly, it meets the technical criteria for alignment presented in Appendices I and II of the Climate delegated regulation of 4 June 2021 (2) . There are three types of technical alignment criteria: –substantial contribution criteria: technical environmental performance criteria to determine whether the economic activity makes a significant contribution to one of the two climate objectives; – “Do No Significant Harm” criteria (DNSH): secondary criteria to ensure that the economic activity does not significantly affect the other five environmental objectives of the Taxonomy; – minimum safeguards criteria: a third type of criteria, general and not specific to the nature of the activity, making it possible to ensure that economic activities respect human rights, competition law, anti-corruption laws and tax rules, among others. All three types of criteria must be met in order to conclude that the activity is aligned. In line with the implementationof the European Green Taxonomy, SOMFY will also have to publish performance indicators on the other four objectives of the Taxonomy from 2024 onwards, namely: – sustainable use and protection of aquatic and marine resources; – protection and restoration of biodiversity and ecosystems. This assessment of the eligibility and alignment of the Group’s activities was completed based on a detailed analysis of all its activities, and was jointly conducted by the Environmental Performance Department, the Financial Department, the Consolidation and Financial Communication Department, and the different business Departments, in reference to: – the transition to a circular economy; – pollution prevention and reduction;

– Climate delegated regulation of 4 June 2021 and the appendices thereto (2) supplementing (EU) regulation 2020/852 by specifying the technical criteria for determining under what conditions a business activity can be considered as making a substantial contribution to climate change mitigation or adaptation; – European Commission delegated regulation 2021/2178 of 6 July 2021 and the appendices thereto, supplementing (EU) regulation 2020/852 specifying the method for calculating the key performance indicators and the narrative information to be published (3) . The methodology elements on the basis of which the Group conducted its analysis – definitions, assumptions and estimates – are described below. The Group will review its methodology, analysis and calculations as the introduction of the Taxonomy progresses and according to developments in the activities and the technical review criteria complementing it. DETERMINING ELIGIBLE ACTIVITIES WITHIN THE MEANING OF THE TAXONOMY — SOMFY’s activities in relation to solar protection systems, their motorisation and automation, significantly contribute to climate change mitigation. Automating the movement of solar protection systems makes it possible to make the most of the sun’s energy in winter to heat the interior of a building and to protect against it in summer. In line with its strategy to reduce greenhouse gas emissions, SOMFY develops solar protection automation solutions that contribute to the energy efficiency of buildings. These carbon gains are amplified by the reduction of induced emissions from products. The study on CO 2 emissions avoided by SOMFY solutions, carried out with the consultancy Carbone 4 (see the section “Maximising avoided emissions” of this report), as well as analyses carried out by ES-SO, a European association connected with the solar protection industry, show that the motorisation and automation of solar protection leads to lower energy consumption related to the heating and air conditioning of buildings . The latest thermal regulation for buildings in France, RE2020, also confirms the positive impact of SOMFY’s activities, by integrating this impact for BBIO (coefficient for measuring heating, air conditioning and lighting needs) certification for new buildings. In addition, SOMFY is committed to halve its carbon footprint by 2030 (in terms of absolute value for scopes 1&2 and in terms of intensity for scope 3). SOMFY products therefore contribute to decarbonising the entire value chain, both in its internal operations and through the use of its products by end-user customers. The list of activities eligible for Taxonomy has been drawn up following a comprehensive review of the portfolio of the Group’s activities and products. When the Group’s eligible activities are listed in both the climate change mitigation target and the climate change adaptation target, it has been decided that these activities shall be allocated to the mitigation target.

(1) https://eur-lex.europa.eu/legal-content/FR/TXT/PDF/?uri=CELEX:32020R0852&from=EN (2) https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=PI_COM:C(2021)2800&from=EN (3) https://eur-lex.europa.eu/legal-content/FR/TXT/PDF/?uri=CELEX:32021R2178&from=EN

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SOMFY – ANNUAL REPORT 2022