TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 5 CORPORATE SOCIAL RESPONSIBILITY Supplier and sub-contractor relations

SUPPLIER AND SUB-CONTRACTOR 5.4 RELATIONS

[G4-12] [G4-15] [G4-21] [G4-27] [G4-EN33] [G4-LA15] [G4-HR1] [G4-HR2] [G4-HR4] [G4-HR5] [G4-HR6] [G4-HR11] [G4-SO10] [G4-DMA Procurement practices] [G4-DMA Supplier environmental assessment] [G4-DMA Employment] [G4-DMA Supplier assessment for labor practices] [G4-DMA Investment] [G4-DMA Non-discrimination] [G4-DMA Child labor] [G4-DMA Forced and compulsory labor] [G4-DMA Supplier human rights assessment] [G4-DMA Supplier assessment for impacts on society]

GRI

Through meetings, contracts, and other methods of formal communication, the Group shares its expectations that suppliers and their subcontractors provide safe and healthy working conditions for their employees, abide by Human Rights laws and standards, and strives for continual improvement in their environmental management systems, processes and products. Technicolor requires its suppliers and sub-contractors to actively support its EH&S Principles. Suppliers are required to comply with the legal requirements and standards of their service or industry as applicable under the national law of the countries in which they operate. Technicolor suppliers and sub-contractors also ensure the compliance of their components and products with specific legal requirements applicable in the countries where their products are being sold. Beyond raw material and component purchasing, the main areas where Technicolor subcontracts production and services are the manufacturing of set-top-boxes and gateways (91.5%), and part of the logistics of the DVD Services in Europe (33%) (see section 7.8). In addition, to manage seasonal peak workloads within DVD Services, Technicolor uses contracted labor services to provide additional workforce on packaging and distribution sites in America, where site headcount may double during the peak season. To ensure effective supplier and subcontractor assessments, Technicolor has defined and implemented the Supplier Ethics program with a specific audit scope and focus for suppliers categorized as “high risk,” defined as suppliers in countries with a relatively high potential for adverse Human Rights Issues. This key supplier audit tool, which includes a review of EH&S systems and performance, has been developed and implemented since 2003, with 22 audits performed in 2017. The primary sub-contracting scope within the Group is within the Connected Home business, where sub-contracting represents the majority of units sold, and thus almost

all audits originating as part of the Supplier Ethics program are targeting suppliers and sub-contractors for the Connected Home business as sub-contracting is very low profile in Entertainment Services and Technology. Conversely, the year-end seasonal labor peaks are strongly represented in Entertainment Services and the Group ensures that all temporary workers receive all required EHS training, information, and equipment for their responsibilities, no matter how limited the duration of employment, the same as any other worker within the Group. During 2016, Technicolor completed the implementation of the Code of Conduct for the Electronics Industry Citizenship Coalition under its Applicant Member status and has reached the status of Member. During 2017 the Electronics Industry Citizenship Coalition was renamed and is now known as the Responsible Business Alliance. Technicolor remains a member-comply in good standing. Technicolor monitors key performance indicators according to SA8000 criteria for key active electronics manufacturing service partners to ensure they comply with Corporate Social Responsibility regulations and practices. Technicolor Sourcing gives preference to suppliers who have achieved ISO 9001 certification and who are certified to meet such EH&S standards such as ISO 14001 and OHSAS 18001. The Technicolor Supplier Ethics program: ensures that Technicolor suppliers respect our policies and program ■ requirements; promotes economic and social welfare through the improvement of ■ living standards and support for non-discriminatory employment practices. Technicolor actively seeks suppliers with similar interests and ethics commitments.

Suppliers are expected to adhere to these basic principles: tolerate no discrimination and encourage diversity, ■ promote best working conditions, ■

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REGISTRATION DOCUMENT 2017