SOMFY - Annual financial report 2018

04 MANAGEMENT BOARD MANAGEMENT REPORT

GENERAL ENVIRONMENTAL POLICY AND ORGANISATION

thereby improving comfort in the summer and helping to reduce the installed air conditioning capacity. Somfy is a member of the Active House Alliance, which promotes healthier, more comfortable buildings that do not have a negative impact on the climate (1) . In this context, animeo Connect, our range of controls for fully connected solar protection, was awarded the “Solar Impulse Efficient Solution” label (2) by the Solar Impulse Foundation. This solution considerably enhances opportunities for energy conservation and increased comfort for occupants. Green products Act for Green® can be traced back to the results of a Carbon Assessment® carried out in 2012 (3) . This Carbon Assessment® had established work on electricity consumption and the use of raw materials as priorities. This eco-design approach, launched in 2015, was continued in 2018 with the certification of new products: LS40 range of motors; – Products are awarded an Act for Green® label when they meet eco-design requirements.

The “We Act for Green” programme was launched in 2018. It reflects the environmental policy that Somfy has adopted as a consequence of the risks and opportunities mentioned above. “We Act for Green” rests on three pillars: “Green Buildings”: Somfy products and solutions enable 1- buildings to reduce their energy consumption; “Green products”: Somfy products and solutions are 2- eco-designed in accordance with our “Act for Green®” framework; “Green teams”: Somfy products are developed, manufactured 3- and distributed by teams who introduce environmentally friendly practices to their workplaces. In order to implement this policy, Somfy has set up a Sustainable Development Department which reports to the Group’s Strategic Marketing Department. This Department has all the resources and skills it needs to carry out projects under the “Planet” driver. The Sustainable Development Department implements its policy by working with relevant teams at the Group’s different sites or in its different Activities. Green buildings Solar protection systems motorised and automated by the solutions offered by Somfy help to reduce the energy consumption of buildings. This is achieved both by reducing the winter heat loss of buildings and by protecting them from the heat in summer,

ILMO 50 RTS motors, Japan; – Situo variation control point. –

As a result, the proportion of products sold under the Somfy brand which bear the Act for Green label® continues to increase and rose from 22% in 2017 to 28% in 2018.

% of products sold under the Somfy brand and bearing the Act for Green® label

30%

25%

20%

15%

10%

5%

0%

2015

2016

2017

2018

Act for Green® is based on a framework taken into account by Research & Development teams. It incorporates requirements that are broken down according to several subject areas: controlling greenhouse gas emissions through moderate – electricity use and the choice of appropriate raw materials; seeking to use recycled and recyclable raw materials in the – composition of products; materials selected for their low impact on health and the – environment; product durability; –

a statement of the environmental impacts in line with the PEP – ecopassport® programme in which Somfy participates. This programme, developed by the electricity industry, defines a standardised method for making environmental declarations in accordance with international regulations (ISO 14025 & ISO 14040s). The information contained in this PEP ecopassport® has been independently verified by Bureau Veritas CODDE. A roadmap for the integration of projects in the Act for Green® programme had been drafted in collaboration with development teams for the next three years.

https://www.activehouse.info/about/about-active-house/. (1) https://solarimpulse.com/efficient-solutions-search?_method=POST&_method=GET&search=&search-hidden=&autocomplete=26&autocomplete- (2) category=Solutions&autocomplete-field=solutionList&autocomplete-label=animeo+Connect" \h+. Carbon Assessment® carried out in 2012 based on 2011 data. (3)

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SOMFY – ANNUAL FINANCIAL REPORT 2018