technicolor - 2020 Universal Registration Document

3 RISKS, LITIGATION, AND CONTROLS RISK FACTORS

DIVERSITY AND HUMAN RIGHTS GRI [103-1 Training and education] [103-2 Training and education] [103-1 Diversity and equal opportunity] [103-2 Diversity and equal opportunity] [103-1 Non-discrimination] [103-2 Non-discrimination] [103-1 Human Rights assessment] [103-2 Human Rights assessment] [103-1 Supplier social assessment] [103-2 Supplier social assessment] Risk identification Risk monitoring and management

Creative and innovative industries require diversity of talent to be able to differentiate from the competition: gender, culture, and experience are key elements and must be present in 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 industries, 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. In a growing market, access to talent is key, and modification of these rules (e.g. such as immigration rules, national educational system, gender mix, etc.) 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 unacceptable in creative and in industrial environments, 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 an 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 [103-1 Training and education] [103-2 Training and education] Risk identification The Group relies significantly on the expertise of some employees with a high level of skills and knowledge (in key positions) for whom there is no backup solution if these employees were to leave the Group ( e.g. Finance leaders, IT specialists, etc). In addition, not having the proper tools and processes in place for the development of existing employees (i.e. training of soft and technical skills) and the identification of key talents would expose the Group to not being able to retain employees.

Internal proactive policies to increase the proportion of women in management position in the Group is the first lever. Developing the Group's attractiveness as a place to work (responsibility, engagement, development) allows us to better absorb changes of regulation, compared to the competition, that may affect the Group’s talent diversity. Proactive actions toward public authorities are key levers to mitigate the shortage of talent mix. Employee training is organized to raise awareness on harassment and discrimination, and to help prevent them. In certain countries, training sessions of self-defense are also organized for women. A whistleblowing hotline is open to receive harassment and discrimination alerts. Sanctions may be taken after investigation and conviction. A supplier’s risk mapping is maintained on a regular basis, together with physical on-site audits of suppliers presenting the higher risk (country and activity). The Group Whistleblowing procedure is open to collect alerts in this area. Contracts with suppliers include terms and conditions forbidding human rights violations with sanctions, including immediate termination for the most serious violations. Alternative suppliers are always considered to prevent production disruption.

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SKILLS & KNOWLEDGE MANAGEMENT, DEVELOPMENT & RETENTION

Risk monitoring and management

Several programs across the Group have been implemented to ensure proper knowledge retention including the formalization and/or documentation of cross training initiatives and documentation of key activities supporting the financials. Succession plans and identification of key experts is part of the reengineering of the People & Talent’s organisation. Global training programs have been adapted to distance learning general conditions, including soft skills.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020