TECHNICOLOR_REGISTRATION_DOCUMENT_2017

3 - RISKS, LITIGATION AND CONTROLS Risk factors

Talent and Human rights

Regarding Climate change, green house gas emissions and energy consumption, the Group anticipates the evolution of the requirements by participating to self-regulation agreements and Code of Conduct to cope ahead with the evolution of the requirements and to be able to implement solutions if some regulation should evolve in the short-term. For further details of environmental actions conducted by Technicolor, see Chapter 5: “Social Information and Sustainability”, section 5.2: “Environmental Matters” of this Registration Document. Health and safety [G4-DMA Occupational health and safety] GRI Risk description Most of the Group’s employees work in office buildings, so the environment, health and safety risks are limited on this perimeter. Regarding manufacturing sites, the Group operates mainly three DVD and Blue-ray TM replication sites (two main in Mexico and Poland, a smaller one in Australia) and one CPE (Consumer Premises Equipment) assembling site (Brazil). The distribution centers of the DVD Services Division are also an area of exposure to the environment, health and safety risks, they are located mainly in the U.S., Mexico, Canada, United Kingdom and Australia. Risk management Regular health & safety training are delivered to the Group’s employee as well as to the agency workers and contractors working in our locations to prevent injuries and accidents as part of global injury prevention programs. Injuries and severity rates are monitored with remediation actions. Industrial sites are regularly audited to review and assess health & safety risks and implemented preventing measures. For further details on health and safety actions conducted by Technicolor, see Chapter 5, section 5.1.11: “Health & safety” of this Registration Document.

[G4-DMA Training and education] [G4-DMA Diversity and equal opportunity] [G4-DMA Equal remuneration for women and men] [G4-DMA Supplier assessment for labor practices] [G4-DMA Labor practices grievance mechanisms] [G4-DMA Non-discrimination] [G4-DMA Assessment] [G4-DMA Supplier human rights assessment] [G4-DMA Human rights grievance mechanisms] Risk description Creative and innovative industries require an important diversity of talent to be performant and to be able to differentiate from the competition: gender, culture, experience are key elements and must be present on the same location. Obstacles to diversity create a risk in the ability to compete or develop new products. This is valid from the software development to the Visual Effects or Animation industry, as our products and services are equally used or watched by women and men, around the world. Obstacles can be internal, and internal policies ensure gender mix and equality. But they also can be external to the Group, preventing the recruitment of talent from diverse origins in a location such as immigration rules, national educational system gender mix. In a growing market, access to talent is key, and modification of these rules can create tensions in the countries where the Group operates. As in any organization, discrimination and harassment may occur. Beyond the fact that these behaviors are totally inacceptable, in creative environment and in industrial environment, such behaviors are also detrimental to the attractiveness and retention of talent, or the safety of the operations as well as to the reputation of the Group. Supply chains and logistics are becoming more complex, with increased number of stakeholders and levels of subcontracting. Detection and prevention of human rights violations in the chain is essential, together with remediation in case of occurrence. GRI

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TECHNICOLOR REGISTRATION DOCUMENT 2017