SOMFY - Annual financial report 2018

04 MANAGEMENT BOARD MANAGEMENT REPORT

OUR ENVIRONMENTAL POLICY PERFORMANCE — Somfy is an industrial company whose products are installed in buildings. The analysis of environmental challenges therefore focused on two aspects: the effects of industrial activities and challenges related to global warming from a dual perspective: the reduction of associated risk by reducing the carbon footprint of its activities and the opportunity that this offers Somfy in terms of developing its market. The activities of the sites are of tertiary, industrial and logistical natures. Analysis of environmental risks normally associated with industrial activities Industrial sites mainly perform product assembly operations from plastic and metallic components and circuit boards sourced from outside the sites. Assembly operations do not product gas emissions, liquid releases or substance discharges, with the exception of packing waste and possible manufacturing scrap which are subject to selective sorting and recovery. There are no machine operations generating waste material. There are no heat or heat treatment processes likely to consume considerable amounts of energy. Energy consumption linked to the production process only accounts for 30% of all energy consumed at industrial sites. Water consumption at the sites is limited to the toilet facilities. At Somfy’s various industrial sites, there are no manufacturing processes likely to exhaust local water resources or that depend on a limited water supply. There is no specific noise pollution generated by the industrial sites affecting local residents. Indeed, operations are situated inside buildings and mainly consist of the assembly of small parts. There are no mining operations on any Somfy’s sites. The different sites are subject to classification levels compliant with local regulations in relation to pollution or nuisance risks that these facilities are likely to create. The French sites are subject to an authorisation scheme for storage in covered warehouses and a registration scheme for compression and accumulators for recharging fork-lift trucks installations. There are no facilities that correspond to the maximum level, “Authorisation with encumbrances - (AS)3” commonly known as “SEVESO”. Conclusions on the nature of activities, associated risks and measures taken For these reasons, the risk of air, soil, water and noise pollution is low or non-existent. Nor is there any identifiable risk attributable to the management of production waste or water consumption. Nevertheless, the consumption of water and energy and ANALYSIS OF CHALLENGES SURROUNDING ACTIVITIES ON SOMFY INDUSTRIAL SITES

production of waste are managed by each individual site. This report does not therefore provide any information on these subjects. In relation to these risks of pollution or nuisance that Somfy Group’s sites are likely to create and the preventive measures introduced, the amount of provisions and guarantees for environmental risks is nil. Given this low level of environmental risk on these sites, there are no specific resources deployed. The measures introduced are managed by the Facilities Departments of the sites. Worldwide, buildings account for approximately 40% of greenhouse gas generation. By promoting the smart control of opening and closing systems in homes and buildings, Somfy helps to reduce their energy consumption, by acting on light levels and by reducing needs for heating and air conditioning. Thus, Somfy solutions improve the energy efficiency of the buildings in which they are installed. Somfy is therefore particularly aware of the challenge of global warming and it addresses this through continuously improving the energy efficiency of its products and through the contribution they can make to the reduction of the energy consumption of buildings. Global warming therefore offers a growth opportunity to Somfy. This opportunity is addressed in particular in its Believe & ACT! strategy through the “Bolder on the Interior markets” strategic driver and its aspect on the development of project business offers for office and vertical residential buildings. It is also addressed in the “Better Together” strategic driver and its CSR aspect as specified below. As global warming is a risk acknowledged by all and one that affects everyone, Somfy is also committed to reducing its carbon footprint whenever it makes sense to do so. As part of the CSR booster which contributes to the “Better Together” strategic driver, Somfy has introduced a global policy which offers a sustainable approach to the environmental dimension of its actions. This approach, “We Act for Green”, recognises the contribution made by our solutions to reducing the energy consumption of buildings as a growth driver for the company. It also recognises the need to have a coherent plan of action for our carbon footprint in respect of all our products and processes if we are to be consistent with our core purpose: “A better way of living accessible to all”. Consideration of sustainable development challenges is clearly in line with our corporate purpose: “Inspiring a better way of living accessible to all”. But it also relates to addressing the potential risk for Somfy of communicating about climate change challenges and making them a driver of growth for the Group without ensuring consistency between a product promising an environmental benefit and our behaviour in relation to environmental challenges in the manufacturing and distribution cycles of these products. That is why energy efficiency and climate change are Somfy’s main environmental priorities. ANALYSIS OF CHALLENGES RELATED TO GLOBAL WARMING POLICIES INTRODUCED AS PART OF THE CSR BOOSTER

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SOMFY – ANNUAL FINANCIAL REPORT 2018