Saint Gobain - Registration document 2016

3 STRATEGIC DRIVERS FOR SUSTAINABLE GROWTH 3. Sustainable differentiation through innovation and R&D

3.2

ECO-INNOVATION TO DELIVER ON OUR STRATEGY: PRODUCTS

THAT ANTICIPATE MARKET TRENDS

with improved environmental and social impact. As part of its sustainable construction strategy, Saint-Gobain is developing and distributing innovative, profitable solutions To achieve this, the Group’s Activities may draw on the Eco-Innovation approach and associated toolbox. methodology for innovation: There are two parts to this pragmatic yet structured Tools for understanding market needs and customer ‹ expectations in terms of social and environmental impacts; practice or an in-depth analysis of the impacts of the existing solution. Tools for seeking solutions based on existing good ‹ sustainable solutions or improvements to existing solutions: Priority lines of action have been defined for eco-innovation in line with Group policies and market expectations, for new

Health and wellbeing: ergonomics, comfort and safety; ‹ Energy & climate: carbon footprint and energy efficiency; ‹ Water: water consumption and water discharge; ‹ Circular economy: consumption of raw materials and ‹ waste management. every stage of the product life cycle, from extraction of the raw materials to end of life. These challenges are considered as a matter of course at Training courses are provided to cascade the eco-Innovation process and the related principles throughout the Group. Eco-innovation now forms part of the training delivered to new research managers and R&D project managers. It was also covered by a specific one-day training session aimed mainly at the marketing and R&D teams and attended by more than 600 people since it was launched. ad hoc interviews, where they are away from their usual environment). It was adopted by British Gypsum in the United Kingdom in 2014, then increasingly throughout the Group. b) Partnerships between R&D and marketing differentiated, high-value-added solutions, particularly in the area of “Multi-Comfort” program. and to further develop research and innovation, several of the Group’s Activities in a number of countries have joined the comfort. To provide proof of the effectiveness of its solutions construction and renovation operations in collaboration with players in the construction industry. These test work sites, In this context, the Group’s Activities have launched housing using Saint-Gobain solutions, allow for real-time, long-term monitoring in situ of energy efficiency and comfort levels. R&D and marketing teams in better understanding building performance as a reflection of occupant behavior and the The Multi-Comfort work sites in various countries assist the Saint-Gobain equips buildings with construction methods and occupant comfort. Saint-Gobain products installed, and to develop new, increasingly effective solutions, appropriate for local market, such as the Gypsum Activity’s Habito plasterboard, which has a tremendous capacity to support heavy loads. As a result, new technical solutions have been placed on the Habito combines strength and durability while offering improved acoustic performance. It is the result of an innovative approach to industrial design, focused on identifying end-user needs. Saint-Gobain in some of its industrial markets. spaces – offices, homes, apartments, concert halls or classrooms – is also evident in the solutions developed by This attention to comfort and users’ needs in their living

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3.3

A MORE CROSS-FUNCTIONAL APPROACH TO INNOVATION

transformation taking place in the construction markets place the Group in an outward-looking position of attentiveness to Saint-Gobain’s development strategy and the gradual partnership and co-development. its customers’ needs. To respond to current needs and anticipate future needs, Saint-Gobain is very open a culture of

3.3.1

partners Innovating through interaction for and with the Group’s customers and

a) Attentiveness to customer needs First and foremost, innovation at Saint-Gobain involves customer analysis. Such attentiveness is crucial for: understanding their needs and the challenges they face, so ‹ as to develop appropriate solutions with them and for them; remain competitive, etc. improvements are needed to provide better service, evaluating their level of satisfaction, and the areas where ‹ separate. These two approaches are complementary, of course, but are To successfully tap into what customers want, over the last few years the Plastics Activity has developed a methodology known as blue printing, which involves interviews, followed swiftly by the production of prototypes. In 2016, this approach was adopted throughout all activities where co-development is central to the process of innovation. The measure was supplemented by increasingly systematic use of design thinking, an approach that consists of gaining an appreciation of customers’ needs by observing them in their day-to-day environment (which is often more informative than

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016