SOMFY - Annual financial report 2018

04 MANAGEMENT BOARD MANAGEMENT REPORT

The task of the Group Human Resources Department and the Director is a member of the Somfy Foundation Board of Directors, Group Communications Department is to guide the the main driving force of the Group’s citizenship policy, and whose implementation of Somfy’s commitments relating to social and main purpose is to support projects that fight poor housing.

societal matters. In this regard, the Group Communications ANALYSIS OF RISKS AND CHALLENGES FACED BY SOMFY —

Social commitment to sustainable development and increasing attention paid to increasingly high expectations on the part of stakeholders is not merely an option for businesses but a necessity. For Somfy, it is above all a priority and a lever which allows it to fulfil more comprehensively its vision of the aspiration of everyone and their families to enjoy a healthy, eco-friendly way of living. It also allows it to build on its model of profitable and sustainable growth. This commitment allows it to improve its non-financial performance by adding meaning to changes it implements, by promoting employee engagement and focusing their energy on common goals, and by enhancing the value of its brands and the quality of its relationship with its customers and consumers and, more generally, with all its stakeholders. The challenges raised by corporate responsibility to all stakeholders include both risks and opportunities. The most important of these are listed in the table below, which refers to different sections of the Non-Financial Performance Statement where policies implemented to address these challenges are listed. These risks were identified within the framework of the Sustainable Development Steering Committee, on the basis of the ISO 9004 standard, Managing for the Sustained Success of an Organisation – A Quality Management Approach. A materiality matrix is currently being developed to complement this approach.

Themes

Risks and opportunities Employment and skills Employee health and safety Energy efficiency of products

Pages

Social

31 34 35 35 38 40 41

Environmental

Global warming

Societal

Embodying the CSR discourse and our vision in activities in which Somfy has legitimacy

Rollout of the CSR policy in the supply chain

Ethics and combating corruption

Given the nature of our activities, we believe that the following topics do not represent major CSR risks and do not warrant further discussion in this management report: combating food waste, food poverty and animal welfare and promoting responsible, fairly traded and sustainable food consumption. OUR SOCIAL POLICY PERFORMANCE — Human capital is an important element of our business model. The ability to attract the right skills and required expertise and to retain and develop talent and skills within the company is a strategic priority for the Group. The professional development of employees is critical to their engagement, which in turn drives innovation and performance and is therefore a key growth driver. The Group’s appeal and our employees’ engagement are linked to the professional development we offer and also to the respect they are given through the health and safety, and more generally the working conditions we provide. In 2018, Somfy’s biennial commitment survey had a participation rate of 82.1% , a high score that demonstrates the deep commitment of employees. These priorities appear in the Believe & ACT! strategic roadmap in the “Better Together” driver, and more specifically in the implementation of the #EmployeeJourney booster. This booster relates to the quality of HR processes at all stages in the working lives of Somfy employees: the way we attract applicants, the way that the company supports its employees by taking care of safety, working conditions and working environment, how it improves skills and allows employees to reach their full potential and how it develops people at work. After describing the stages of this process and identifying key milestones and associated HR processes which take account of the challenges mentioned above, the #EmployeeJourney roadmap was validated and included by Group entities in the implementation of our strategy.

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SOMFY – ANNUAL FINANCIAL REPORT 2018