Climate Change Data

Environmental Metrics

Social Achievements

• Increased workforce diversity: Women account for 30% of the Group management team. Workplace gender equality and equal pay are a reality for Lectra.
• Invested €3.7 million in training 1,163 employees, representing nearly 4% of the company’s payroll costs and involving 78% of the workforce.

Governance Achievements

• Formal adherence to the AFEP-MEDEF Corporate Governance Code of Listed Companies.
• Implemented a procedure for managing conflicts of interest.
• Increased Board diversity by adding a fifth director (Nathalie Rossiensky) to achieve gender balance and international experience.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic and geopolitical conditions turned out tougher than expected, due to unforeseen events (global economic slowdown, especially in China; major currency shifts; crash of Brazil's economy).
• Currency fluctuations hindered customers' investments.
• Production cost differentials narrowed between Asian countries and those in Eastern Europe or Central America, forcing European customers to review sourcing strategies.
• Loss of competitiveness among Chinese manufacturers depressed orders.

Mitigation Strategies

• Maintaining R&D and production in France, improving competitive position worldwide.
• Continuous investment in innovation (€185 million over ten years).
• Strengthening sales and marketing teams through a major recruitment plan.
• Accelerated investment in marketing (new website, localized Chinese website, customer testimonials, global communication campaigns).

Supply Chain Management

Responsible Procurement

• Promotion of local subcontracting
• Reducing the number of outside suppliers
• Streamlining logistics to minimize transportation and packaging
• Use of recyclable materials with a lower carbon footprint
• Promoting recycling
• Instituting a responsible procurement charter

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Employment
• Environment
• Ethics
• Human Rights

Environmental Achievements

• Reduced textile cuts on a standard production cycle (specific percentage not provided, but mentioned as a positive change)
• Increased percentage of low carbon-footprint transport for equipment, consumables and parts (specific percentage not provided, but mentioned as a positive change)
• Reduced waste at Bordeaux-Cestas site (specific percentage not provided, but mentioned as a positive change)
• Reduced energy consumption at Lectra sites (specific percentage not provided, but mentioned as a positive change)
• Reduced CO2 emissions at Lectra sites (specific percentage not provided, but mentioned as a positive change)

Social Achievements

• Launched Lectra Academy, an in-house training center
• Launched Lectra Together, an induction seminar for new employees
• Implemented an action plan for gender equality
• Implemented an action plan for gender diversity in managing bodies
• Improved working conditions (renovation work at Bordeaux-Cestas)
• Implemented a company-wide agreement on regular teleworking

Governance Achievements

• Formalized CSR policy
• Established a whistleblowing procedure
• Implemented annual e-learning training programs on business ethics
• Established a responsible purchasing charter

Climate Goals & Targets

Environmental Challenges

• Attracting and retaining talents
• Developing talents
• Diversity and inclusion
• Eco-design of Lectra solutions and contribution to reducing the environmental footprint of Lectra customers
• Controlling the environmental footprint of Lectra activities
• Environmental digital responsibility
• Ethics and the fight against corruption
• Responsible purchasing policy
• Human rights (including forced labor and child labor)

Mitigation Strategies

• Various initiatives detailed in the report under each challenge area

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Purchasing Charter

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate events impacting customers

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001 (implied)

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Not disclosed

Actions aligned with UN Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Fashion On Demand by Lectra
• Furniture On Demand by Lectra
• Virga single ply fabric cutting solution

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Business Ethics
• Eco-Responsible Offers
• Inclusive and Diverse Work Culture
• Environmental Footprint Reduction
• Support for Next Generation

Environmental Achievements

• 95% of components for the Cestas production site come from European suppliers
• Reduced CO2 emissions through grouped deliveries, efficient routes, and maritime transport
• Solutions reduce need for physical prototypes and facilitate remote collaboration, reducing travel
• Cutting rooms designed to optimize material consumption and reduce waste through integrated scanners and long-life consumables
• Preventive maintenance, spaced revisions, and remote intervention reduce travel and spare parts use since 2007

Social Achievements

• Teams representing 67 nationalities
• 98/100 score on France’s Professional Equality Index
• 81% employee participation in 2022 satisfaction survey, leading to action plans
• Remote work policy implemented in France and several other countries in 2022
• Lectra Academy, Sales Effectiveness and Customer Success Enablement teams provide employee training programs

Governance Achievements

• Code of conduct implemented to fight corruption and influence peddling
• Annual e-learning refresher course on business ethics for employees
• Responsible purchasing charter established in 2011, updated in 2021, and a new, more rigorous charter planned for 2023 with a goal of 88% supplier sign-on

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact of activities, especially in newly acquired companies
• Ensuring eco-conscious management of cutting rooms for customers

Mitigation Strategies

• Expanding environmental efforts to US and other global sites starting in 2023
• Developing dashboards and services incorporating environmental criteria to help customers manage their cutting rooms

Supply Chain Management

Responsible Procurement

• Responsible purchasing charter (2011, updated 2021, new charter in 2023)

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Ethical Standards
• Eco-responsible Offers
• Inclusive and Diverse Work Culture
• Reduced Environmental Footprint
• Support for Next Generation

Environmental Achievements

• 18% reduction in CO2 emissions (scopes 1 and 2): 3,449 t.CO2-eq
• 9% reduction in electricity consumption at industrial sites in 2023
• 66% of waste recycled (industrial scope)
• 86% of maintenance operations performed remotely for Lectra-brand equipment

Social Achievements

• 80% participation rate in Your Voice employee engagement survey
• 65% employee engagement rate
• 16% of open positions covered by internal mobility
• Only 7% of departures at the initiative of employees with permanent contracts
• 48,448 hours of training delivered

Governance Achievements

• Inclusion of CSR criteria in the variable compensation of the Chairman and Chief Executive Officer
• 94/100 score on the official gender equality index in France
• 31% of Executive Committee members are women

Climate Goals & Targets

Environmental Challenges

• Degraded macroeconomic and geopolitical environment leading to a 26% decline in orders for perpetual software licenses
• Increasing demands regarding CSR
• Risks related to market conditions (geopolitical context, macroeconomic uncertainties, credit tensions, currency fluctuations, competition)
• Risks related to the Group's business (business continuity, dependence on key suppliers, technological obsolescence)
• IT risks (complex IT systems architecture, security of internal IT systems and offers, protection of personal data)
• Human resources challenges (key skills and resources, succession of key individuals)

Mitigation Strategies

• Strict cost control plan
• Strong growth in recurring contracts and higher gross margins
• Defined acquisition policy with extensive due diligence
• Integration plans for acquired companies
• Specific governance structure for CSR, including a CSR Committee of the Board of Directors and an action plan with 12 commitments
• Diversification of presence worldwide
• Regionalization of production
• Risk prevention plans and business continuity plans
• Cybersecurity plan
• Supplier charter
• Obsolescence Committee
• Plan for continuous improvement, optimization and transformation of information systems
• Initiatives to strengthen its employer brand, improve recruitment and onboarding procedures, and adjust compensation packages

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Lectra Responsible Purchasing Charter
• Responsible and Sustainable Purchasing Charter (2022)
• Supplier charter requiring compliance with labor practices, working conditions and respect for human rights

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Global Compact, AFEP-MEDEF Code

Certifications: ISO 14001:15, FSC Chain-of-Custody (CoC)

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New generation of intelligent, connected cutting equipment consuming up to 35% less energy
• TextileGenesis platform for textile traceability
• On Demand production solutions

Awards & Recognition

• Best Managed Company by Deloitte (two years running)
• EthiFinance ESG Ratings (74/100)
• EcoVadis Ratings (57/100)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Overproduction in the fashion industry leading to significant pollution (4 billion tons of CO2 equivalent)
• Economic challenges due to geopolitical uncertainties, energy crisis, inflation, and consumer behavior prioritizing price over sustainability.
• Legislative challenges due to increasingly strict regulations on textile waste management, transparency, and traceability (e.g., Agec Law in France, EU CSRD, DPP).

Mitigation Strategies

• Adoption of new business models (circular economy, recycling, upcycling, second-hand, rental, pre-order).
• Implementation of technologies like AI for better resource management, improved supply chain transparency, and waste reduction.
• Increased transparency and traceability throughout the supply chain.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed