Compagnie des Alpes - 2017 Registration Document

4 SOCIAL, SOCIETAL AND ENVIRONMENTAL INFORMATION Group environmental information

4.3.5 ADAPTING TO THE CONSEQUENCES OF CLIMATE CHANGE Ski area operations

While the additional transition risk costs for the Group sites are moderate in the medium term (additional energy, tax costs etc.), changes in vehicle motorisation over short cycles will be determinant in our ability to reduce the consumption of fossil fuels. This applies particularly to the grooming machines which are the primary source of the Group’s emissions. Finally, changes in demand for a leisure activity, which is by nature non-essential, are difficult to predict. For this reason, the Group is working to mitigate negative external factors which affect the activities. Leisure destination operations The Leisure destinations are less vulnerable to physical climate risk. Visitor numbers are relatively dependent on temperature and weather, and sometimes increase when the weather is fine late season. However, excessively hot weather (heatwaves) can deter visitors from going to a site which is not suitably adapted. It is therefore important that the sites meet the regulatory requirements for renovation of tertiary buildings in the medium term. Visitor travel to our destinations The vast majority of our visitors travel to our leisure destinations by car. The climate change impacts of the energy transition are likely to affect travel to our sites by private car (more expensive, change of attitude to the private car). To counteract this, Compagnie des Alpes sites have been experimenting with communal travel options, which include: z promotion of public transport by rail to our destinations, the train to Futuroscope for instance, the use of Belgian railways to travel to Walibi Belgium, the train + funicular to get to the Les Arcs ski resort; z free shuttles between the resorts, shuttle from the valley (La Plagne) or Paris/Charles de Gaulle airport (Parc Astérix), public transport to take visitors between the park and the park hotels (Futuroscope); z trial of the Snow express (TGV direct from Paris and shuttle to Val- d’Isère), taking all visitors from the Gare de Lyon in Paris to their accommodation; z incorporating a “car share” section on the website ( e.g. Futuroscope, Parc Astérix) to help people to find car shares, with car share areas and stops in the valley. These trials and other innovations must of course be rolled out to offer simple, flexible and comfortable alternative travel to our different sites.

The effects of climate change have already been felt, particularly in the ski areas with a shorter glacier skiing season (summer, autumn), a shorter period of natural snowfall over the last three seasons, and uncertainty regarding temperatures for the production of artificial snow, with shorter temperature windows. Despite difficult starts to the seasons, Compagnie des Alpes ski areas remain resilient for the time being due to the fact their resorts are at high altitude or provide access to high altitude ski areas. An alternative solution may be to use the first section of the ski lifts as a lift, and to better spread out visitor flows to be able to offer access to the ski area, even when conditions are difficult on the low-altitude slopes. Ski areas are also using technology to adapt by guaranteeing the start and end of the season by producing artificial snow. Production networks have therefore adapted to the capacity required and investment in this area is increasing. In addition, optimisation work is providing higher yields while limiting the rise in operating costs. Grooming techniques are also evolving in order to optimise snow quality and increase its useful life. The need for grooming takes a range of parameters into account: weather forecasts, a precise calculation of snow volumes considered necessary, satellite or radar measurements of snow thickness. The orientation of the slopes is also examined, and work on the ski runs and reestablishment of vegetation allow the resort to reduce the volume of snow required to create suitable skiing conditions. In addition, the Ski areas are expanding their summer activities (mountain biking, green tourism, glacial walking, etc.) and fun non- ski activities (go-karting) and packages with partner resorts (thermal baths). Events are also run to introduce visitors to what happens at a ski resort. They can discover what a slope manager does or how a grooming machine works, attend an AVD (avalanche victim detector) workshop, meet a dog handler, visit a snow-making factory, attend a chairlift evacuation demonstration, etc. An initial study is underway to assess the transition risks (based on scenarios) and material risks (based on a review of scientific literature on the subject) of the energy and ecological transition which are applicable to the Group sites. The main long-term material risks could be linked to a reduction of the operating period at the height of the season due to the rise in average winter temperatures, based on the trajectories of the different IPCC models. These models anticipate little change in the winter precipitation patterns in the medium term. The pressure on availability of water for artificial snow-making depends on the reliability of these forecasts.

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Compagnie des Alpes I 2017 Registration Document