DERICHEBOURG - Universal registration document 2018-2019

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CSR report (serving as statement of extra-financial performance) Main CSR risks

Main CSR risks 1.2

Over the last five years, the Group has not implemented arrangements to artificially reduce its corporate tax expense or transfer its taxable income to low-taxation countries.

Analysis of CSR risks 1.2.1 The risk analysis has enabled potential risks to be identified in the social/societal, environmental, human rights and anti-corruption areas. The management and control systems in place enable these risks to be mitigated and the priority actions presented in the “Concretely Responsible 2022” program to be defined. This section also meets the provisions of law no. 2017-399 of March 27, 2017 on the duty of vigilance presented in section 1.8. Two separate risk analysis mappings were prepared using a single methodology: a mapping of specific corruption risks meets the requirements of law p no. 2016-1691 of December 9, 2016, known as the Sapin 2 law; a mapping of CSR risks (human rights and fundamental freedoms, p health and safety of people and the environment). These mappings enable risks to be identified, analyzed and ranked in order to prepare appropriate action plans using the following method: identification of potential risks; p identification of internal control measures and means of controlling p these risks; prioritization and scoring of risks arising from the impact and p probability of occurrence of these risks. The scoring of those risks revealed four levels of potential risk: priority; ● secondary; ● low. ● Potential risks identified as priorities are addressed by the actions and controls described in the CSR roadmap, with the aim of mitigating and managing them. The potential risks inherent to the Group's businesses and subject to specific management measures are as follows: environmental risks due to insufficient levels of shredder residue p recovery; workplace health and safety related to workplace accidents; p environmental risks related to air and soil pollution, etc.; p fire; p loss of customer assets due to customer dissatisfaction; p human rights and compliance with labor laws. p As part of its actions to mitigate CSR risks, Derichebourg Group continues to roll out its “Concretely Responsible 2022” program.

CSR strategy 1.2.2 The CSR Committee, comprising permanent members (secretary general, financial directors, human resources and CSR directors) and temporary experts (insurance, legal, etc.) has the task of monitoring the action plans and the effectiveness of the systems implemented using management indicators. This committee meets several times per year. In addition to risk analysis, major challenges were defined in the following stages: consultation of external stakeholders (customers, suppliers, trade p federations, etc.); discussions in internal thematic workshops; p creation of sector benchmarks. p These efforts led to the “Concretely Responsible” 2018-2022 program, a roadmap that defines priority actions as well as performance indicators and associated goals. The indicators in this year’s report are monitored for France only, unless otherwise specified. Monitoring of the extra-financial performance is defined according to the following organization:

Extra-financial reporting oversight

Financial department Consolidation Service

QSE/CSR departments Environment and Multiservices

Central contributors Collection of data (quantitative and qualitative) related to CSR issues

CSR departments

HR departments

Subsidiary contributors Communication of CSR indicators

The subsidiary contributors collect, check and analyze the indicators that correspond to their businesses. The central contributors and consolidation department check the consistency of the data. The indicators are then audited by the independent third party, EY (see the corresponding report at the end of the chapter, section 1.9).

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