Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Energy efficiency and climate change
• Fair competition
• Environmental management
• Human Rights

Environmental Achievements

• 93% of sites with environmental certification (ISO 14001/EPH)
• 88% of sites using water for cooling have a recycling rate of over 75%
• 55% of non-ferrous metal waste recycled
• Reduction of greenhouse gas emissions

Social Achievements

• 74% employee engagement rate
• 2.01% workplace accident frequency rate
• 30 hrs of training per employee
• Launched “Nexans, Amazing Actually” employer branding campaign
• Implemented “Women in Nexans” (WIN) program

Governance Achievements

• 96% of managers signed the Compliance Certificate
• Implementation of a robust risk management tool
• Organized compliance week and tightened accounting controls

Climate Goals & Targets

Environmental Challenges

• Difficult year with no substantial margin and consolidated EBITDA of around 325 million euros
• Lack of rigor, follow-through and ability to adapt to market volatility
• Excessive costs, pricing, inventory management
• Underperforming businesses needing turnaround

Mitigation Strategies

• Three-year roadmap (2019-2021) focusing on selective growth, enhancing competitiveness, improving return on capital employed and cash generation
• SHIFT plan to rapidly increase profitability of underperforming units, enter efficient units on sustainable growth, restore competitiveness by reducing material costs, and prioritize value-generating investments
• Cost-cutting plan of 210 million euros
• Restructuring of struggling businesses

Supply Chain Management

Supplier Audits: Multiple supplier CSR audits internally in 2018; Over 80% of suppliers signed the Supplier CSR Charter

Responsible Procurement

• Supplier CSR Charter
• CSR risk map for supplier selection
• EcoVadis platform for supplier assessment

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation and infrastructure)
• SDG 13 (Climate action)

Nexans' CSR priorities draw on UN Sustainable Development Goals 9, 12 and 13

Sustainable Products & Innovation

• POWERBOOST™ medium-voltage cables (easier to recycle)
• HYPRON® lead-free cables
• NEWSENSE® medical microcables
• FLAMEX® Ethernet cables for trains

Awards & Recognition

• 2018 Integrated Thinking Award
• 2018 Belgian ecodesign award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Safety
• Responsible Procurement
• Access to Energy

Environmental Achievements

• 95% of sites with environmental certification
• 85% of sites using water for cooling have a recycling rate of over 75%
• 42% of non-ferrous metal waste recycled
• Reduction in GHG emissions (although the exact percentage is not explicitly stated, a reduction is mentioned)

Social Achievements

• 74% employee engagement rate
• 34% of all employees are women
• 2.70% workplace accident frequency rate (71% decrease since 2010)
• 30 hours of training per employee trained
• Nexans Foundation supported 111 projects in 62 countries, benefiting 1,400,000 people

Governance Achievements

• Implementation of a 3P strategy (People, Planet, Profit) integrating ESG into management incentives
• Strengthened risk management procedures including cybersecurity and crisis management
• Improved Board diversity

Climate Goals & Targets

Environmental Challenges

• Price pressure and commoditization in some markets
• Geopolitical instability in certain regions
• COVID-19 pandemic impact

Mitigation Strategies

• SHIFT program to improve profitability and efficiency
• Focus on value creation and differentiated offerings
• Cost-cutting plan
• Diversification of suppliers
• Crisis management plans and business continuity strategies

Supply Chain Management

Responsible Procurement

• High-performing and reliable suppliers
• Respect for export control requirements and environmental, financial, ethical and social obligations

Climate-Related Risks & Opportunities

Physical Risks

• Climate change and natural hazards

Opportunities

• Growth in renewable energy sector

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: ISO 14001, EHP

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation and infrastructure)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)

Nexans' initiatives contribute to these goals through access to energy projects, sustainable product development, resource efficiency, and climate change mitigation.

Sustainable Products & Innovation

• POWERBOOST™ MV cable
• Superconducting cable technology
• Superconducting fault current limiters (SFCLs)
• Asset Electrical solution
• Plug-and-play cable harnesses

Awards & Recognition

• 2019 RTE Supplier Award for Innovation in Services

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Workplace Safety
• Circular Economy
• Stakeholder Engagement
• Business Ethics

Environmental Achievements

• Reduced GHG emissions by 12.12% compared to 2019 (Scopes 1, 2, and part of 3)
• 92% of production waste recycled
• 86% of industrial sites ISO 14001 certified
• 65% renewable or carbon-free energy

Social Achievements

• Launched employee well-being programs and initiatives (e.g., Safety Day, Hand Safety campaign, Manage Me Up! program)
• Improved workplace accident frequency rate (1.87 in 2020)
• Increased female representation in management positions (24%)
• Implemented a Volunteering for International Experience (VIE) program
• 74% employee engagement rate

Governance Achievements

• Strengthened internal compliance program
• Implemented a robust risk management system
• Established a dedicated Planet Team to coordinate the implementation of the carbon neutrality roadmap

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impact on sales and operations
• Fluctuations in non-ferrous metal prices
• Climate change risks (physical and transition)
• Cybersecurity threats
• Maintaining a high standard of environmental management across all sites
• Attracting and retaining talent in a competitive energy sector
• Promoting diversity and inclusion

Mitigation Strategies

• Implemented cost-cutting measures and the SHIFT program
• Developed alternative sourcing strategies
• Strengthened risk management and internal controls
• Implemented health and safety measures and business continuity plans
• Developed a carbon neutrality roadmap with specific targets and initiatives
• Implemented various talent attraction and retention strategies (e.g., internal mobility, VIE program, training programs)
• Set diversity targets and launched initiatives to promote gender equality and inclusion (e.g., Women in Nexans network)

Supply Chain Management

Supplier Audits: 136-300,000 high CSR risk and high spend suppliers with a CSR valid scorecard issued by EcoVadis (or equivalent CSR expert) and a CSR score = or > 35%

Responsible Procurement

• Updated Supplier CSR Charter
• Campaign to reassess CSR risks

Climate-Related Risks & Opportunities

Physical Risks

• Natural hazards

Transition Risks

• Risks related to climate change

Opportunities

• Growth in renewable energy markets

Reporting Standards

Frameworks Used: UN Global Compact, CDP

Certifications: ISO 14001, OHSAS 18001/ISO 45001

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation and infrastructure)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)

Nexans' initiatives contribute to these SDGs through its focus on sustainable electrification, renewable energy, and responsible business practices.

Sustainable Products & Innovation

• Halogen-free flame-retardant (HFFR) cables
• Keylios® Photovoltaic Harness
• MOBIWAY® drum unwinding system
• AGICITY® charging station
• INFRABIRD™ connected access supervision system

Awards & Recognition

• CDP 'A List' for climate change

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Environmental Management
• Circular Economy
• Business Ethics
• Stakeholder Engagement

Environmental Achievements

• Reduced GHG emissions by 73% compared to 2019 (location-based) and 12.12% (market-based)
• 89% of sites ISO 14001 certified
• 59% of revenues generated from products and services contributing to energy transition and energy efficiency
• Increased share of renewable or decarbonized electricity to 73%

Social Achievements

• 24.5% of managers are women
• 78% employee engagement rate
• Workplace accident frequency rate decreased to 1.81% from 1.87% in 2020
• Launched Nexans Living Voices employee engagement survey

Governance Achievements

• Appointed a Climate Director
• Board of Directors reached 50/50 gender balance
• 98.3% of managers completed the yearly compliance awareness course
• Adopted a Human Rights Charter

Climate Goals & Targets

Environmental Challenges

• Geopolitical, political, and social instability in operating regions
• Competitive pressure in the cable industry
• Climate change and natural hazards
• Raw material price fluctuations and availability (especially copper)
• Supply chain tensions
• Energy price volatility
• Cybersecurity threats
• Antitrust investigations and compliance risks
• Product liability

Mitigation Strategies

• Continuous monitoring of geopolitical risks and contingency planning
• Risk-reward analysis for projects, focus on innovation and technology
• Vertical integration in copper metallurgy
• Long-term contracts with suppliers, multi-sourcing strategy
• Crisis management unit for supply chain monitoring
• Energy price hedging contracts, energy efficiency programs
• Four-pillar cybersecurity program
• Strengthened compliance program, training, and risk mapping
• Stringent product quality control procedures, product liability insurance

Supply Chain Management

Responsible Procurement

• Nexans Supplier Charter

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Hurricanes
• Earthquakes

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in renewable energy markets

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 9001

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation and infrastructure)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)

Sustainable Products & Innovation

• Halogen-free flame-retardant cables
• Recyclable cable drums
• Connected cable drums
• VIGISHIELD anti-theft solutions

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Human Rights
• Social Development
• Governance

Environmental Achievements

• Reduced absolute Scope 1 and 2 GHG emissions by 28.2% in 2022 vs 2019 baseline. Achieved a 28% reduction in total Scope 3 emissions vs 2019 baseline in 2022.
• Reduced "Cradle-to-shelf" Scope 3 GHG emissions by 13.1% in 2022 vs 2019 baseline.
• 100% of production sites to be certified ISO 14001 by 2030.
• 100% of production waste to be recycled by 2030.

Social Achievements

• Nexans Foundation supported 134 projects in 38 countries, bringing electricity to over 1.8 million people.
• Strengthened approach to managing human rights risks through stricter audits and a dedicated governance structure.
• Developed a Human Rights Charter, co-developed with employee representative bodies.

Governance Achievements

• Established a dedicated governance structure for CSR, overseen by the CSR Department and the Executive Committee.
• Appointed a Vice-President Sustainability in December 2021 to redefine governance and coordinate E3 actions.
• Created the role of a Board member responsible for monitoring climate and environmental issues in early 2022.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions, particularly "use of sold products" and "end-of-life treatment of sold products"
• Managing human rights risks throughout the supply chain.

Mitigation Strategies

• Supplier engagement to encourage low-carbon raw materials, recycled content, and climate commitments.
• Multi-modal transport and shorter delivery routes to reduce emissions from product transportation.
• Stricter social and internal audits with specific points to check human rights compliance.
• Implementation of a governance structure dedicated to human rights.

Supply Chain Management

Responsible Procurement

• EcoVadis platform for supplier CSR evaluation
• Supplier CSR Charter

Climate-Related Risks & Opportunities

Opportunities

• Accelerating electrification business
• Developing innovations to improve energy and environmental performance of products

Reporting Standards

Frameworks Used: SBTi, GHG Protocol, ICMA Green Bond Principles (GBP), Social Bond Principles (SBP), Sustainability Bond Guidelines (SBG), Sustainability-Linked Bond Principles (SLBP), Green Loan Principles (GLP), Social Loan Principles (SLP), Sustainability-linked Loan Principles (SLLP), UN Global Compact

Certifications: ISO 14001, EcoVadis Platinum

Third-party Assurance: ISS Corporate Solutions

UN Sustainable Development Goals

• SDG 13: Climate Action

Awards & Recognition

• RE100 award sponsor

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Employee Engagement
• Ethical Business Practices
• Supply Chain Sustainability

Environmental Achievements

• Reduced Scopes 1, 2, and 3 GHG emissions by 36% (2019 baseline)
• 76% of electricity from renewable and decarbonized sources
• 80% of production waste recycled
• 15.6% of cable drums connected and recyclable
• 75% of sales generated from products & services contributing to energy transition and efficiency

Social Achievements

• Workplace safety rate improved to 1.78 (target 0.9)
• Workplace severity rate improved to 0.11 (target <0.10)
• Employee engagement index of 77% (2022 data; 2023 survey postponed)
• 100% completion rate of Compliance awareness training for managers
• Increased number of suppliers with EcoVadis CSR Score ≥ 35% to 593 (target 600)

Governance Achievements

• Board diversity: 54.5% independence, 45.5% women
• CEO compensation linked to ESG goals (25% of variable pay)

Climate Goals & Targets

Environmental Challenges

• Geopolitical and political instability in key operating regions
• Competitive pressure in medium and low voltage cable markets
• Cybersecurity threats
• Climate change and natural hazards
• Risks associated with large-scale turnkey projects
• Fluctuations in non-ferrous metal prices and availability
• Antitrust and anti-bribery compliance
• Product liability claims

Mitigation Strategies

• Diversification of suppliers, Business Continuity Management, risk-reward analysis for projects, SHIFT Prime program, robust due diligence for M&A, cybersecurity program, physical risk analysis and adaptation measures, detailed risk management system for turnkey projects, long-term contracts for raw materials, vertical integration, compliance programs, stringent quality control procedures, insurance policies

Supply Chain Management

Supplier Audits: 15 audits conducted with Health and safety focus; >80% spend covered by supplier charter or code of conduct; ~60% spend covered by scorecards

Responsible Procurement

• Supplier Charter
• EcoVadis scorecards
• Supplier audits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters

Transition Risks

• Carbon taxation
• Increased cost of carbon pricing
• Regulatory changes

Opportunities

• Growth in renewable energy sector
• Development of low-carbon products and services

Reporting Standards

Frameworks Used: GRI, TCFD, SBTi, UNGC, EU Taxonomy, CSRD

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Independent third-party verifier (limited assurance on Scopes 1 & 2 emissions and parts of Scope 3)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)

Nexans' activities contribute to these goals through sustainable electrification, innovation, and decarbonization efforts.

Sustainable Products & Innovation

• Low-carbon power grid cables
• SF6 gas-free cable terminations
• Mobiway smart packaging

Awards & Recognition

• CDP 'A List'
• EcoVadis Platinum medal
• Copper Mark certification