Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Ethics
• Air and Environment
• Commitment to Stakeholders

Environmental Achievements

• Customers avoided 11.2 million tons of CO2 emissions due to Air Liquide's oxygen supply.
• Avoided 1.4 million tons of sulfur oxide emissions due to hydrogen supplied to refineries.
• Commissioned the world's largest hydrogen storage site.
• Commissioned seven biogas purification units in Europe.
• Operated Cryocap™ facility, capturing 100,000 tons of CO2 annually.

Social Achievements

• Launched the Air Liquide Foundation, supporting 254 projects.
• 96% of employees belonged to entities with a local Code of Conduct.
• Implemented a formal whistleblowing system (Ethicall) in 60 countries.
• Increased percentage of women among managers and professionals to 30%.

Governance Achievements

• 82% of Board members were independent.
• 45% of Board members were women.
• Implemented an Industrial Management System (IMS) covering 80% of Group revenue.

Climate Goals & Targets

Environmental Challenges

• Industrial risks (products, processes, logistics, engineering & construction, delivery reliability).
• Customer bankruptcy or site closure.
• Supply-related risks (electricity and natural gas availability).
• Innovation and intellectual property risks.
• Environmental and climatic risks (weather disasters, water scarcity).

Mitigation Strategies

• Industrial Management System (IMS).
• Diversified customer base and long-term contracts.
• Diversified energy supply contracts.
• Internal patent protection and partnerships.
• Adaptation measures for extreme weather and water scarcity.

Supply Chain Management

Supplier Audits: 177 critical suppliers audited in 2016

Responsible Procurement

• Procurement Code of Conduct
• Supplier Code of Conduct
• Sustainable Development clause in contracts
• Sustainable Development performance evaluations.

Climate-Related Risks & Opportunities

Physical Risks

• Weather and climatic disasters

Transition Risks

• Regulatory changes related to greenhouse gas emissions.

Opportunities

• Development of hydrogen energy and biogas purification technologies.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance:

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)
• Goal 3 (Good Health and Well-being)

Air Liquide's initiatives contribute to these goals through its focus on clean energy, sustainable technologies, emissions reduction, and healthcare solutions.

Sustainable Products & Innovation

• TCN Best Energy (ultra-pure nitrogen generator)
• enScribe™ etching materials
• Solidia Concrete™ equipment
• Heat oxycombustion technology
• Cryocap™ CO2 capture technology

Awards & Recognition

• Air Liquide Foundation Awards
• Technology showcase certification (France)

Environmental Metrics

ESG Focus Areas

• Safety
• Ethics
• Respect for Human Rights
• Environment
• Air Quality
• Climate Change
• Stakeholder Dialogue
• Local Development

Environmental Achievements

• Reduced CO2 emissions by 16.1 Mt through products and operational efficiency
• Avoided 11.5 Mt of CO2 emissions at customers' premises through oxygen use
• Avoided 4.6 Mt of CO2 emissions due to operational efficiency
• Purified and supplied 3.5 Mt of CO2 to customers
• Avoided 1.5 Mt of SOx emissions through hydrogen supply to refineries
• 69% of electricity consumed was low-carbon or renewable

Social Achievements

• Successful integration of Airgas, maintaining lost-time accident frequency rate at 1.6
• Launched Chronic Care Connect™ for remote patient monitoring
• Acquired Oxymaster in Colombia and SSKK in Japan, expanding home healthcare
• Supported 284 projects through the Air Liquide Foundation in around 50 countries
• 73% of employees had at least one training session

Governance Achievements

• Established an Environment and Society Committee within the Board of Directors
• Implemented a formal whistleblowing system, receiving 180 reports in 2017
• Integrated anti-corruption measures from the Sapin 2 Act
• Maintained long-term “A” range credit rating

Climate Goals & Targets

Environmental Challenges

• Industrial risks related to products, processes, logistics, and construction
• Supply-related risks concerning electricity and natural gas availability
• Engineering & Construction risks related to project timelines and costs
• Customer bankruptcy or site closure risks
• Digital risks related to data confidentiality and IT system availability
• Financial risks including foreign exchange, interest rate, and credit rating risks
• Tax risks due to changing regulations
• Human resources challenges in finding and retaining skilled employees
• Legal risks related to compliance with various regulations
• Environmental and climatic risks including extreme weather events and water scarcity
• Risks linked to Airgas integration

Mitigation Strategies

• Implemented an Industrial Management System (IMS)
• Diversified supply contracts for energy resources
• Strict investment project authorization and management process
• Long-term contracts with take-or-pay clauses
• Strengthened digital security policy and operational program
• Prudent financial risk management processes
• Careful monitoring of regulatory changes by the Tax Department
• Human resources policy focused on attracting, retaining, and developing employees
• Global presence distributing risks across customers and markets
• Adaptation measures for extreme weather and water scarcity
• Ongoing Airgas integration focusing on operations, safety, and other functional areas

Supply Chain Management

Supplier Audits: Almost 200 suppliers assessed in 2017 through EcoVadis; aim to assess all critical suppliers by 2020

Responsible Procurement

• Procurement Code of Conduct
• Sustainable Procurement policy
• Sustainable development clause in new contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and services; hydrogen energy

Reporting Standards

Frameworks Used: UN Global Compact, Responsible Care® Global Charter

Certifications: ISO certifications (details on page 114)

Third-party Assurance: Independent verifier (24 industrial sites and subsidiaries audited)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 3 (Good health and well-being)

Air Liquide's initiatives contribute to these goals through its products and services, its commitment to renewable energy, and its support for healthcare

Sustainable Products & Innovation

• Cryocap™ CO2 capture technology
• enScribe™ etching materials
• Blue Hydrogen® initiative

Awards & Recognition

• EcoVadis Gold rating (67/100)
• Agefi’s 1st prize for “Shareholding democracy, transparency of information and quality of communication”
• Prize for the Best General Shareholders’ Meeting
• Silver prize for the best investor relations in the CAC40
• Investor Awards for education

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Safety
• Human Rights
• Stakeholder Engagement

Environmental Achievements

• Reduced carbon intensity by 22% compared to 2015
• Increased renewable energy purchases to 7.4 TWh
• Avoided 10.9 million tons of CO2 emissions by customers through Air Liquide solutions
• Reduced energy consumption per volume of production by 1%

Social Achievements

• 29% of women among managers and professionals
• 28% of young graduates among recruited engineers and managers
• Lost-time accident frequency rate of 1.3 (20% improvement from 2017)
• Air Liquide Foundation supported over 300 projects in 52 countries

Governance Achievements

• 73% of Board members are independent
• 45% of Board members are women
• Implementation of a formal whistleblowing system, receiving almost 300 reports in 2018

Climate Goals & Targets

Environmental Challenges

• Greenhouse gas emissions from assets and customer operations
• Supply chain disruptions due to geopolitical risks and extreme weather events
• Attracting and retaining skilled employees, especially in emerging markets
• Cybersecurity risks

Mitigation Strategies

• Implementation of the ACE (Assets, Customers, Ecosystems) approach to reduce carbon intensity
• Diversified supply contracts and risk mitigation strategies
• Comprehensive Human Resources strategy to attract, retain, and develop employees
• Digital Security Policy and operational program to address cybersecurity risks

Supply Chain Management

Supplier Audits: More than 230 assessments completed in 2018 (EcoVadis)

Responsible Procurement

• Supplier Code of Conduct
• Sustainable development clause in contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth in hydrogen and biomethane markets

Reporting Standards

Frameworks Used: UN Global Compact

Third-party Assurance: Independent verifier

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Air Liquide's initiatives contribute to these goals through the development of renewable energy solutions, reduction of greenhouse gas emissions, and promotion of a low-carbon economy.

Sustainable Products & Innovation

• Biomethane
• Hydrogen
• enScribe™ etching materials
• Blueeze™ cryogenic refrigeration

Awards & Recognition

• EcoVadis Gold rating

Environmental Metrics

ESG Focus Areas

• Climate change
• Safety
• Diversity & Inclusion
• Human Rights
• Responsible Procurement

Environmental Achievements

• 27% reduction in carbon intensity compared with 2015 carbon intensity.
• 24% increase in renewable electricity purchased since 2015 (36% of the 2025 target).
• 1.9% improvement in the efficiency of the delivery of bulk products compared to 2015 (in km by ton of product transported).
• 12.1 Mt of CO2 emissions avoided for customers, thanks to oxy-combustion technology.
• 1.1 TWh biomethane production capacity

Social Achievements

• Launched “Care & Perform” initiative to prevent psycho-social risks.
• 88% of Air Liquide customers satisfied or very satisfied.
• Launched “Changing Care. With you” program in Healthcare.
• Increased the number of women among managers and professionals to 29%.

Governance Achievements

• Reached 300 million US dollars in synergies from Airgas acquisition ahead of schedule.
• Implemented a correlation scheme between financial costs and CSR targets (carbon intensity, gender diversity, safety).

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown in Q4 2019.
• High energy prices.
• Customer maintenance turnarounds impacting sales.
• Slowdown in industrial sectors (Construction, Metal Fabrication).
• Pricing pressures in Healthcare.
• Recruiting qualified welders.

Mitigation Strategies

• Efficient price management.
• Strengthened efficiency program (reaching 433 million euros in savings).
• Active business portfolio management.
• Roll-out of digital tools.
• Development of low-carbon solutions.
• Development of Cobotic welding system.

Supply Chain Management

Supplier Audits: 325 supplier CSR assessments in 2019

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Development clause in contracts
• EcoVadis assessments
• On-site audits

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions

Transition Risks

• Carbon constraints
• Changes in energy prices

Opportunities

• Development of low-carbon solutions (hydrogen, biomethane)
• CO2 capture and valorization

Reporting Standards

Frameworks Used: AFEP/MEDEF Code of Corporate Governance

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)
• Goal 3 (Good health and well-being)

Air Liquide's initiatives contribute to these goals through the development of renewable energy solutions, sustainable industrial processes, climate action, and healthcare services.

Sustainable Products & Innovation

• Qlixbi packaged gas offering
• Blueeze™ and Cryocity™ refrigerated transport solutions
• Turbo-Brayton cryogenic equipment
• Biomethane production
• Low-carbon hydrogen production

Awards & Recognition

• EcoVadis Gold rating
• Best Value Chain Engagement award from EcoVadis
• Best Overall Sustainable Purchasing Program award from SPLC
• Best Responsible Purchaser award from Handeco
• Victoire des Leaders du Capital Humain award in the “CSR Policy” category
• Boursorama responsible investment award
• CDP double “A” rating (Climate and Water)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health
• Governance
• Human Rights
• Safety

Environmental Achievements

• Improved indirect emissions accounting methodology from location-based to market-based.
• Commissioned the world's largest PEM electrolyzer in Canada, avoiding 27,000 tonnes of CO2 per year.
• Launched construction of a renewable hydrogen production plant in Germany (30 MW).
• Commissioned a large-size Alkaline electrolyzer in Taiwan (25 MW), avoiding 35,000 tonnes of CO2 per year from 2026.
• Jointly developed a European CO2 capture and storage project in Antwerp, avoiding 14.2 million tonnes of CO2 emissions over 10 years.
• K6 project in France aims to reduce CO2 emissions through oxy-combustion and CO2 capture.
• New biomethane production units commissioned in Italy and the UK.
• Signed a partnership with Laurentis Energy Partners to produce and distribute helium-3.

Social Achievements

• Increased the percentage of women among managers and professionals to 31%.
• Launched MyVoice employee engagement program with an 83% response rate.
• Implemented actions to improve employee well-being, including a global sports challenge.
• Committed to providing a common basis of care coverage to 100% of employees by 2025 (34% achieved in 2021).
• Implemented actions to combat discrimination, including the HandivAirsity initiative and inclusive procurement practices.
• Received the “Best Places to Work for LGBTQ Equality” distinction in the US.

Governance Achievements

• Maintained an “A” credit rating.
• Implemented a Sustainable Financing Framework.
• Successfully launched its first green bond issue.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on the global economy and supply chains.
• Sharp increase in energy prices.
• Geopolitical risks, particularly the war in Ukraine.
• Risks related to industrial investments, including project location, customer quality, and schedule adherence.
• Sourcing-related risks, including energy supply, volume, price volatility, and regulatory changes.
• Digital risks, including data security and IT system availability.
• Climate risks, including greenhouse gas emissions and the physical impact of climate change on operations.
• Societal risks, including discrimination and well-being at work.

Mitigation Strategies

• Maintained a crisis management system with adaptations for the COVID-19 pandemic.
• Implemented an inflation-adapted pricing policy.
• Implemented actions to mitigate geopolitical risks, including country risk assessments and insurance cover.
• Strict investment project authorization and management process.
• Diversified energy sourcing and indexed invoicing for energy cost fluctuations.
• Digital security policy, procedures, and awareness-raising initiatives.
• Committed to carbon neutrality by 2050 with intermediary milestones.
• Implemented actions to promote diversity, inclusion, and employee well-being.

Supply Chain Management

Supplier Audits: 249 critical suppliers assessed

Responsible Procurement

• Assessment of critical suppliers based on environmental, social, business ethics, and procurement policies.
• Collaboration with disability-inclusive companies.

Climate-Related Risks & Opportunities

Physical Risks

• Storms, hurricanes, flooding, rising sea levels, heat waves.

Transition Risks

• Changes in greenhouse gas emission reduction policies, carbon pricing, product regulations.

Opportunities

• Development of low-carbon solutions, hydrogen, and biomethane.

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewable hydrogen
• Biomethane
• CO2 capture technologies
• OYAN medical oxygen cylinder

Awards & Recognition

• Best Progress Award for its Vigilance Plan from the French Sustainable Investment Forum and A2 Consulting.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Healthcare
• Social Responsibility

Environmental Achievements

• Reduced Carbon Intensity by 25% vs 2015
• SBTi validation of target to reduce absolute Scopes 1 & 2 CO2 emissions by 2035
• Signed Power Purchase Agreements (PPAs) for renewable electricity in South Africa and Italy
• Developed new carbon capture solutions in Europe
• Increased biomethane production capacity

Social Achievements

• Increased percentage of women among Managers and Professional population to 31.5%
• 42% of employees have common basis of care coverage
• 43% of employees have access to volunteer opportunities through Citizen at Work
• Developed 90 new patient-centric initiatives in healthcare
• Expanded High School Welding Education Initiative in the US

Governance Achievements

• Integrated sustainability priorities into ADVANCE strategic plan
• Established CO2 budget for each Air Liquide entity
• Developed a Scope 3 emissions reduction strategy
• Assessed biodiversity risks and mapped assets in key biodiversity areas

Climate Goals & Targets

Environmental Challenges

• Availability of new technologies
• Access to renewable energy
• Uncertainties linked to investments
• Evolving regulatory frameworks
• Engaging all stakeholders in healthcare

Mitigation Strategies

• Investing in low-carbon hydrogen (€8bn by 2035)
• Developing low-carbon solutions for customers
• Securing access to renewable energy through PPAs
• Developing carbon capture technologies
• Collaborating with stakeholders

Supply Chain Management

Supplier Audits: ~50% of key suppliers assessed for sustainability in 2022

Responsible Procurement

• Long-lasting and balanced relationships with suppliers
• Emphasis on safety, reliability, competitiveness, innovation, ethics, and sustainable development

Climate-Related Risks & Opportunities

Opportunities

• Development of low-carbon hydrogen solutions
• Carbon capture technologies
• Renewable energy sourcing

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Sustainable Products & Innovation

• Low-carbon hydrogen
• Biomethane
• Carbon capture technologies

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Diversity & Inclusion
• Human Rights
• Responsible Procurement
• Community Investment
• Governance

Environmental Achievements

• Scopes 1 and 2 CO2 emissions down -4.7% compared with 2022 and -4.9% compared with the 2020 baseline. Carbon intensity down 33% compared to 2015.
• Signed 20 renewable power purchase agreements for more than 3 TWh/year.
• European Commission granted subsidies to two new carbon capture projects in Germany and Belgium.

Social Achievements

• Lost-time accident frequency rate of 1.0 in 2023.
• 78% of employees benefiting from a common basis of care coverage.
• 32% of women among managers and professionals.
• 73% of employees have the opportunity to engage in local initiatives to support communities.
• Over 2 million people facilitated with access to medical oxygen in low and moderate-income countries.

Governance Achievements

• Strengthened collaboration between the Board of Directors and the Executive Committee.
• Partial replacement of the Board of Directors with new independent directors.
• Implementation of a Sustainable Financing Framework.

Climate Goals & Targets

Environmental Challenges

• Weak demand from Large Industries customers.
• Geopolitical risks, particularly in Russia.
• Climate risks (greenhouse gas emissions and physical impacts).
• Water management risks.
• Supply chain disruptions (e.g., helium and rare gases).

Mitigation Strategies

• Dynamic pricing policy, efficiency gains, and active portfolio management.
• Seeking to transfer Russian activities via a Management Buy-out.
• Ambitious climate objectives (carbon neutrality by 2050), including investments in low-carbon technologies (electrolyzers, carbon capture).
• Water management policy and documented water management plans.
• Diversifying sources, storing molecules, and securing procurement through long-term contracts.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainable procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Rising sea levels
• Heat waves

Transition Risks

• Regulatory changes
• Carbon pricing
• Shifting market demand

Opportunities

• Growth in low-carbon hydrogen and carbon capture markets.

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)
• Goal 17 (Partnerships for the Goals)

Air Liquide's initiatives contribute to these goals through its low-carbon solutions, safety programs, diversity and inclusion efforts, and community engagement.

Sustainable Products & Innovation

• Low-carbon hydrogen
• Carbon capture technologies
• Biomethane

Awards & Recognition

• Level A leader in CDP's climate and water performance
• Constituent of FTSE4Good index
• ISS Prime status
• Ecovadis top 10%

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Energy Transition (particularly with hydrogen)
• Sustainable Development

Environmental Achievements

• Announced long-term power purchase agreements (PPAs) for 500 GWh of renewable electricity per year.
• Decided on the electrification of a third Air Separation Unit in China (reducing Scope 2 emissions by ~340,000 metric tons of CO2 per year).
• Construction of a CryocapTM carbon capture unit to decarbonize the Group’s largest hydrogen production unit in Europe.
• Construction of more energy-efficient carrier gas units for an Electronics customer in Singapore and the United States.
• First phase of investment in a site for the production of large quantities of low-carbon air gases in the US (capturing and sequestering 7 million metric tons of CO2 per year).
• Received a 160 million euro grant for the D'Artagnan CO2 capture and sequestration project in Dunkirk, France (aiming to reduce emissions by 1.5 million metric tons per year).

Social Achievements

• Adoption of an internal charter for sustainable biomethane production, in collaboration with WWF France.

Governance Achievements

• Launched a new Group transformation program to foster agility and improve efficiency.
• Announced several organizational and governance changes, effective September 1, 2024.
• Successfully issued a new 500 million euro green bond to finance energy transition and sustainable projects.

Climate Goals & Targets

Environmental Challenges

• Persistently subdued market environment.
• Unfavorable energy and currency impacts on published sales.

Mitigation Strategies

• Acceleration of structural efficiencies.
• Proactive price campaigns, particularly in the United States and Argentina.
• Management of prices and portfolio of activities.
• Group transformation program to improve efficiency.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Energy transition projects (low-carbon hydrogen, carbon capture)