technicolor - 2018 Registration document

5 DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN RIGHTS AND WORKING CONDITIONS

2018 with the implementation of the EcoVadis assessment platform for suppliers representing a yearly spending of more than €1 million. Such category represents 91.7% of the total spending of the Group. Suppliers representing about 55% of total spend of this category of Technicolor’s suppliers are already assessed by EcoVadis. The primary sub-contracting scope within the Group is within the Connected Home business, where sub-contracting represents the majority of units sold, and thus almost all audits originating as part of the Supplier Ethics program are targeting suppliers and sub-contractors for the Connected Home business as sub-contracting is very low profile in Entertainment Services and Technology. Conversely, the year-end seasonal labor peaks are strongly represented in Entertainment Services and the Group ensures that all temporary workers receive all required EH&S training, information, and equipment for their responsibilities, no matter how limited the duration of employment, the same as any other worker within the Group. Technicolor monitors key performance indicators according to SA8000 criteria for key active electronics manufacturing service partners to ensure they comply with Corporate Social Responsibility regulations and practices. Technicolor Sourcing gives preference to suppliers who have achieved ISO 9001 certification and who are certified to meet such EH&S standards such as ISO 14001 and OHSAS 18001. Additionally, the Responsible Business Alliance (RBA) may perform on-site audits to monitor and verify the implementation of the RBA code of conduct. Mindful of regulations banning or restricting certain chemical substances, Technicolor implemented a process for obtaining and tracking information about its suppliers. This system allows for the identification and estimation of relevant chemical substances in Technicolor’s products and ensures that banned substances are not included.

Suppliers are expected to adhere to these basic principles: tolerate no discrimination and encourage diversity; • promote best working conditions; • use no child or forced labor; • protect peoples’ health, safety and the environment; •

support employee development; • respect fair market competition; • strive to be a good corporate citizen; • respect consumer and personal privacy; • avoid potential conflicts of interests. •

59 on-site Supplier Ethics audits were performed in 2018 by Technicolor concerning 53 sites as some sites have been audited two times. Through these audits and other methods, Technicolor shares its expectations that suppliers and their subcontractors provide safe and healthy working conditions for their employees, abide by human rights laws and standards, and strive for continual improvement in their environmental management systems, processes and products. During the audit process, instances of child labor are classified as “critical,” resulting in an immediate stoppage of business. Audits revealing employee discrimination, forced labor, safety violations, permanent disabilities or fatal injuries are classified as “major,” and require immediate corrective action. Only 1 audit revealed a critical violation that was child labor related. 79% of detected violations relate to health and safety, and 12% to working hours. Health and safety violations represent 90% of major violations, while the remaining categories of major violations detected are discrimination, young workers and compensation by decreasing order. In addition to this approach, focused on suppliers evaluated as “high risk”, Technicolor added a more systematic risk assessment of suppliers in A diverse workforce is a business imperative to Technicolor in its competitive environment. It must be able to recruit and retain the most talented candidates from a broad range of disciplines and experiences. Technicolor’s policy is not only to provide equal employment opportunity without regard to race, sex, religion, national origin, age or disability status, but also to fight actively against harassment and discrimination that are illegal and also hamper our ability to perform and to retain talented employees. Beyond existing legislations, we strive to track pay discrimination cases between women and men and to reduce such gaps. An improved gender pay gap analysis process based on current and revamped business’ job architectures is under preparation to identify and help to prevent pay gap creation at every step of womens’ career.

Fight against harassment and discrimination 5.3.2

GRI [103-1 Diversity and equal opportunity] [103-2 Diversity and equal opportunity] [103-3 Diversity and equal opportunity] [103-1 Non-discrimination] [103-2 Non-discrimination] [103-3 Non-discrimination] [406-1]

The non-discrimination and equal employment opportunity policies, based upon the Ethics Charter and locally augmented according to specific legal requirements if needed, including the anti-harassment policy, are implemented at all Technicolor sites. In addition to the role of the management, detection of discrimination cases also relies on the whistleblower policy allowing any employee to confidentially disclose their situation or the situation of a co-worker, without fear of publicity or adverse reaction. Such cases are reported to the Ethics Committee and investigated. Some countries implement in addition an official trust person or advocate for employees if there is a discrimination issue. Overall, 36 cases of discrimination and harassment were reported in 2018, reflecting the impact of awareness campaigns about harassment.

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TECHNICOLOR REGISTRATION DOCUMENT 2018