Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Consumption Reduction
• Employee Well-being
• Responsible Sourcing
• Waste Reduction and Recycling
• Sustainable Transportation

Environmental Achievements

• Implemented energy-saving measures at headquarters, including electronic lighting regulation systems and employee awareness campaigns.
• Reduced energy consumption through office consolidation and adjusted work schedules.
• Established waste recycling processes for ink cartridges, paper, and electronic products.

Social Achievements

• Maintained employee partnership with an inter-company crèche.
• Offered a profit-sharing program to employees at HF Company and LAN.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased production costs due to inflation and the Russo-Ukrainian conflict.
• Market volatility impacting business activity.
• Disruption of operations in China due to the Zero Covid policy.

Mitigation Strategies

• Adapted to changing market conditions.
• Transferred product development from China to a Chinese partner (Netinovo).
• Focused on growth in the American market, leveraging government support for telecom network expansion and the exclusion of Chinese equipment manufacturers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• LEA France adheres to strict conditions under the 18001 standard and requires OHSAS18001 certificates from suppliers to ensure compliance with ILO Charter provisions (elimination of forced labor and child labor).

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

Environmental Metrics

ESG Focus Areas

• Social
• Environmental

Social Achievements

• Partnership with a crèche interentreprises since 2008, providing childcare for employees.

Climate Goals & Targets

Environmental Challenges

• Strong increase in interest rates leading to reduced working capital by LEA Networks' major clients, resulting in postponed or cancelled orders.
• Complete halt of G3 certifications at LANPARK due to delays in the release of the G3 communication protocol version 7.
• Decrease in Broadband-Industry activity due to the end of an engineering contract for Amadys (Belgium) and postponed deliveries in the US.
• Decrease in Broadband-Service activity due to software issues with version 7 for G3 communicating meters and delayed GRDF material qualification deliveries.

Mitigation Strategies

• LEA Networks is focusing on its two product lines and the American market for 2024, with a focus on access network products and protection systems.
• LEA Networks signed a distribution agreement for 4G and 5G equipment for the industrial internet of things with a US manufacturer for the European market.
• Energy consumption reduction initiatives at HF Company headquarters (electronic lighting regulation, employee awareness).

Supply Chain Management

Responsible Procurement

• LEA France adheres to strict conditions under the ISO 18001 standard and requires OHSAS18001 certificates from its suppliers to ensure compliance with ILO Charter provisions.

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Inflation, particularly increased energy costs.
• Scarcity of certain components leading to higher prices.
• Decreased revenue and increased investment costs in the telecommunications sector.
• Postponement of solution deployments by operators to the first half of 2024.
• Delays in the implementation of a new hybrid version of the G3 protocol.
• Delays in the PowerEoC project.

Mitigation Strategies

• LEA Networks maintained its margin level despite persistent tensions on raw material and component prices.
• LEA Networks continued its restructuring in China by transferring its technical teams to its JV, NETINOVO.
• HF Company launched an active cash management program in 2022.
• HF Company implemented conventions to merge interest scales and compensate for the effects of interest rate variations.
• LEA Networks is pursuing its activity rhythm in the second half of the year with deployments of broadband injectors, filtering solutions, lightning protection panels, and Powering activities.
• LANPARK expects to regain an activity level in line with that achieved in the second half of 2022.
• The G3 (CPL+Radio) tests and certifications will resume with the development of version 7, which will be offered from the last quarter of 2023.

Supply Chain Management

Climate-Related Risks & Opportunities