Climate Change Data

Environmental Metrics

ESG Focus Areas

• Smart World
• Environmental Sustainability
• Smart Mobility
• Smart Industries
• Human Capital
• Ethical Conduct
• Responsible Purchasing
• Innovation

Environmental Achievements

• 13.2% energy savings on the road signs manufacturing site.
• Energy savings through smart public lighting (SensyCity) up to 80%
• Water savings through optimized network management (LACROIX Sofrel)

Social Achievements

• 251 new talents joined LACROIX in 2017, including 37 managers
• 24 new projects created in relation to the development of human capital in 2017
• Implementation of a proactive policy for well-being at work
• Internal training programs for specialized activities
• Digitization of assembly processes to enable immediate operation for employees without specific training

Governance Achievements

• Joined the United Nations Global Compact
• Ethical Code defines rules and procedures for stakeholder relations
• Codes of conduct program informs employees of ethical requirements
• Implementation of an Energy Performance Contract resulting in significant energy savings

Climate Goals & Targets

Environmental Challenges

• Customers' difficulties in clearly formulating their needs in the rapidly evolving IoT market
• Multitude of projects requiring in-depth market knowledge and financial resources for industrialization
• Cybersecurity concerns in IoT, especially for critical infrastructures
• Water scarcity and energy efficiency challenges

Mitigation Strategies

• Helping customers formulate their needs
• Developing transversal partnerships (customers, suppliers, start-ups)
• Developing new skills in idea-generation teams
• Focusing on interoperable, communicating equipment for smart road solutions
• Integrating cybersecurity at the heart of R&D strategy
• Optimizing water and energy distribution networks
• Developing innovative, simple, reliable connected devices for water and energy management

Supply Chain Management

Responsible Procurement

• Assessment of suppliers based on Safety and Environmental Quality criteria

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Sustainable Products & Innovation

• S4W remote management terminal
• SensyCity smart sensor for public lighting
• V2X roadside units

Awards & Recognition

• Showcase for the Industry of the Future award (LACROIX Electronics)

Environmental Metrics

ESG Focus Areas

• Health, safety, and well-being
• Talents and skills
• Ethical business practices and conduct
• Environmental impact
• Local development

Environmental Achievements

• Recycled 82% of industrial waste (1-point improvement)
• Implemented systematic recovery of hazardous waste during sorting
• Working with suppliers and customers to reduce packaging waste
• Investing in more energy-efficient LED lighting systems

Social Achievements

• Roll-out of LACROIX Group values guidelines
• Accident prevention and safety measures at work
• Safety training and diligence
• Strengthening of employer brand
• Roll-out of LACROIX Group Ethical Charter
• Global Compact programme
• Roll-out of and training in anti-corruption measures
• Standard certifications for processes
• Increased training hours for employees (56,581 hours in 2021 vs 45,202 hours in 2020)
• Implemented a free share plan benefiting some of its employees

Governance Achievements

• Strengthened governance and anti-corruption mechanisms
• Implemented a centralised internal alert system
• Drawn up a supplier charter that sets out requirements regarding respecting people and legal compliance

Climate Goals & Targets

Environmental Challenges

• Major crisis in the procurement of electronic components
• Increased price of raw materials and energy
• Continuation of the pandemic
• Geopolitical risks
• Shortage of electronic components
• Fluctuations in raw material prices and availability

Mitigation Strategies

• Contracts generally include price indexing mechanisms
• Hedging certain raw materials
• Strengthened innovation capacity by creating Innovation Lab
• Strengthened R&D teams
• Implemented a business security and continuity plan
• Measures to mitigate impacts in the event of a crisis (production organization, redistribution of manufacturing, security stock)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier charter

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001, ISO 9001

Third-party Assurance: EY

UN Sustainable Development Goals

• Not disclosed

Used the guidelines of the 17 Sustainable Development Goals to devise its new CSR approach

Sustainable Products & Innovation

• Smart street lighting
• Smart water and energy management equipment
• Energy-efficient LED lighting systems

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• positive-impact business
• eco-efficient solutions
• sustainable operations
• people and regional presence
• climate change
• diversity
• supply chain
• business ethics

Environmental Achievements

• 93% of non-hazardous industrial waste recycled (up from 82% in 2021)
• Reduced CO2 emissions per m2 by 2.5 times at the Symbiose plant compared to the former Saint-Pierre-Montlimard site
• 10,000 square meters of photovoltaic panels installed at Symbiose plant producing roughly one-third of electricity consumption
• 55% reduction in electricity consumption at Symbiose plant thanks to smart LED lighting and natural light

Social Achievements

• Roll-out of LACROIX Group Values guidelines and Ethical Charter
• Accident frequency rate fell by 1.3 points in 2022
• 50,385 hours of training provided to employees in 2022
• Women account for 55% of the group's workforce in 2022

Governance Achievements

• Strengthened internal regulations and codes of conduct on anti-corruption and competitiveness
• Implemented a centralised internal alert system for reporting irregularities
• Developed a supplier charter outlining requirements for respecting people, legal compliance, and environmental legislation

Climate Goals & Targets

Environmental Challenges

• Persistent tensions on the supply of components
• Rising raw material and energy prices
• Wage inflation
• Shortfalls in the supply of components affecting operational performance and increasing inventory levels
• Strong inflationary pressures, particularly rising cost of raw materials not fully passed on to customers

Mitigation Strategies

• Price indexing mechanisms in contracts
• Hedging certain raw materials
• Deployment of synergy plan between ELEC North America and ELEC EMEA
• Implementation of advances/financing by customers
• Better pass-through of additional material costs in selling prices

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier charter outlining requirements for respecting people, legal compliance, and environmental legislation
• CSR criteria in the choice of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, ILO's 8 fundamental conventions

Certifications: ISO 14001, ISO 9001, IATF 16949, ISO 9100, Part 21 G Part 145, ISO 27001

Third-party Assurance: EY

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-efficient products
• Repairable and recyclable products
• Energy-efficient solutions (edge computing, optimized telecommunication)

Awards & Recognition

• Award in the “Sustainable AI” category at the 1st World Artificial Intelligence Festival in Cannes (2022)

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Climate Change
• Diversity
• Risks
• Employee Well-being
• Responsible Purchasing
• Eco-design
• Positive Impact

Environmental Achievements

• Obtained a score of 61/100 in Ecovadis (silver medal), up 15% compared with 2022 (53/100).
• 75% of common industrial waste generated was recycled.
• Joined the Estuaire Energie cooperative to supply French sites with renewable energy.
• Launched "Eco-flux" diagnostics to optimize energy, materials, waste, and water flows.

Social Achievements

• Launched the Great Place To Work assessment at all LACROIX sites worldwide.
• Increased the number of apprentices by 21% to 174.
• Launched an internal "Women at LACROIX" program to improve women's representation in management and expertise.
• Gender equality index above 75 points for most French companies.

Governance Achievements

• Strengthened anti-corruption mechanisms and pursues a policy of zero tolerance towards corruption.
• Defined Responsible Purchasing policy and set up 8 working groups to improve CSR practices of partners.
• Implemented a centralised whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Cyberattack affecting three plants in May 2023.
• Contrasting market segment dynamics (slowdown in automotive and HBAS markets).
• Increases in payroll costs in North America.
• Inventory discrepancies in North America.
• Uncertain end-market dynamics.

Mitigation Strategies

• Implemented a vigorous action plan to turn performance around in North America.
• Gradual return to normal in components markets.
• Better control of working capital requirements.
• Reduction in inventories.
• Business continuity plans (BCPs) are drawn up to mitigate geopolitical risks.

Supply Chain Management

Supplier Audits: Annual assessment of strategic suppliers.

Responsible Procurement

• Responsible Purchasing policy
• Code of good conduct for suppliers
• CSR criteria in the choice of suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, ILO's 8 fundamental conventions, Science Based Targets initiative (SBTi)

Certifications: ISO 14001, ISO 9001, IATF 16949, ISO 9100, Part 21 G, Part 145, ISO 27001

Third-party Assurance: EY

Sustainable Products & Innovation

• Prio V2X
• AIRoads
• Aquawize

Awards & Recognition

• Ecovadis silver medal
• 'Best Innovative Digital Water Solution' from Water Europe Innovation
• 'Best Sustainable Artificial Intelligence Solution' from WAICF
• 'Best Environmental Impact Offering - Meaningful Digital' from Alliancy
• Tech4Green Award
• Planinium Future Digital Awards