NEOPOST_REGISTRATION_DOCUMENT_2017

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Corporate social responsibility

Social, societal and environmental information

Training and educating employees Employee training is an integral part of the environmental approach taken by the Group and its companies, and is one of the keys to its success. The majority of the Group’s entities provide their employees and all new hires with training on the environment and health and safety, as well as with more targeted information on ISO 14001, if needed. Communication and awareness-raising initiatives focused on environmental issues and on the policy adopted by the Group’s different companies on energy savings and recycling in particular are regularly organized for employees. The Neopost group evaluates and takes account of pollution risks and risks linked to climate disruption in its comprehensive approach to risk management in order to determine the most appropriate solutions. In 2017, no major pollution risk was identified. However, the Group did identify the following risks linked to climate disruption: Risks linked to natural hazards and events: some of the • Group's sites, as well as some of its industrial and supplier partners are exposed to natural hazards and events due to their geographic location. These hazards include: earthquakes or climatic events such as hurricanes, cyclones, typhoons as well as flooding and tidal waves. These events are likely to affect the availability of some resources, damaging production facilities, slowing down the supply chain, temporarily halting production and distribution and potentially threatening the safety of employees. Risk linked to the change in regulations on reducing • greenhouse gas emissions. The Group is focused on changes in existing and future regulations, and tightening of such regulations could have an unfavorable impact on future business and sales, meaning an increase in operating costs and reduced profitability. Risk linked to a change in stakeholders’ behavior. The • ambition shared by clients, investors and shareholders and the change in regulations to reduce CO 2 emission has given rise to an increasing interest in companies with business and products that have minimal possible impact on the environment. Most of the tenders for the public and private sectors include environmental performance criteria, with a focus on the carbon footprint for products and services delivered. Article 173 of the French Energy Transition for Green Growth act requests that institutional investors publish their ESG (environmental, social and governance) criteria in a transparent way for their investing activities. Reducing the Group's environmental footprint Controlling environmental risks

To manage these risks and mitigate their impact, Neopost has implemented a certain number of measures which are explained below. Provisions and guarantees for environmental  hazards In 2017, no risk of pollution liable to have a significant impact on the Group’s financial position, activities or results was identified. Controlling water consumption In 2017, total water consumption was 57,001 m 3 . This 16.9% decrease compared to 2016 stems from the method used to estimate this data.

Water consumption

-16.9% Of water consumed in 2017

The majority of the Group's companies rent the premises they occupy and do not necessarily have direct access to their own consumption. For one-third of them, it is an estimate prorated for the rented area or calculated according to the number of Full time Equivalent (FTE), and provided by the building management company. This method has the disadvantage of overestimating actual consumption because it often takes into account other services that can be offered (restaurant, gym) or other water use for a building (watering the building's surrounding areas). For example, water consumption for Neopost S.A., Neopost Industrie SA, and Neopost Technologie SA fell sharply compared with 2016 (-47.0%). While water consumption was estimated in the building prior to the move in September 2016, it is now obtained by a direct reading of the meters for the areas occupied. This data, which is much more precise, makes it possible to take into account only the consumption linked to the presence of the Group's employees and exclude consumption related to other uses in the building. Water consumption relates mainly to sanitary use, which represents 98.5% of the total consumption of the Group. Preventive maintenance programs, replacement of sanitary equipment with equipment that consumes less water or the installation of sensors to control water distribution, helped to reduce waste. Regarding industrial processes, consumption sharply increased this year (+67.6%). 870 m 3 of water were consumed at the production sites of Neopost Technology Limited in Loughton and Neopost Technology BV in Drachten.

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REGISTRATION DOCUMENT 2017 / NEOPOST