Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced waste generated by 3%
• Reduced energy consumption at Keller due to internal reorganizations, LED lighting, and employee awareness
• Reduced power consumption at Schiederwerk due to energy recovery system and LED lighting
• EPT™ (Extrusion Porosification Technology) developed by Clextral, generating 20-40% energy savings compared to conventional spray drying
• Enviro kiln developed by Keller, reducing energy consumption by about 30%

Social Achievements

• Acquired Schiederwerk, increasing workforce diversity
• Signed an amendment to the 2013 collective retirement savings plan in France
• Implemented cross-functional program in France and Germany to help managers take ownership of responsibilities
• Increased training hours across divisions
• Initiatives to promote gender equality and empower disabled workers across divisions

Governance Achievements

• Continued commitment to the UN Global Compact
• Formalized ethical principles and practices in the Code of Business Conduct
• Implemented ISO certifications across divisions (ISO 9001, 14001, 50001)

Climate Goals & Targets

Environmental Challenges

• Slowdowns in regions such as South America and Russia
• Decline in business in the Africa and Middle East region for Clextral and Keller
• Reduced share of recycled waste at Keller and Savoye
• Increased waste at Schiederwerk due to business growth

Mitigation Strategies

• Improved operational efficiency and medium-term investments
• Optimization of sorting and processing systems for recoverable waste
• Installation of energy recovery system and LED lighting at Schiederwerk
• Initiatives to improve energy efficiency across divisions

Supply Chain Management

Responsible Procurement

• Compliance with applicable law on health, safety, and environmental protection
• Preventing supplier economic dependence on the Group

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 50001

Sustainable Products & Innovation

• Evolum+ twin-screw extruders
• EPT™ drying technology
• Enviro kiln
• a-SIS VIEW supervision tool

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions in Europe by 13% from 2017
• Reduced Group-wide waste generation by 5% from 2017
• Reduced water consumption by 13% from 2017

Social Achievements

• Increased workforce (excluding Savoye) by 2.5%
• Increased percentage of women in the workforce to 27%
• Continued commitment to the Generation Contract in France, promoting inclusion of older and younger workers

Governance Achievements

• Sale of Savoye Division, rebalancing the business and reducing volatility
• Acquisition of Schiederwerk, a specialized mid-size business with major growth potential
• Arkéa Capital took an equity interest in the Legris family holding company

Climate Goals & Targets

Environmental Challenges

• Drop in business at Keller in the Middle East due to completion of major contracts
• Longer delivery times for electrical components at Schiederwerk

Mitigation Strategies

• Acquisition of new industrial companies and continued organic growth to increase sales to €500 million over five years
• Strong order book at Keller providing a critical advantage for 2019
• Sufficient orders at Schiederwerk to head into 2019 with a strong order book

Supply Chain Management

Responsible Procurement

• Detailed questionnaire to qualify suppliers and assess their labor and environmental practices
• Compliance with applicable law on health, safety, minimum age requirements and environmental protection

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 50001

Sustainable Products & Innovation

• Eco-designed products and equipment
• Power supply solutions for LED lighting
• Extrusion process optimization

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Health and safety
• Social responsibility
• Gender equality
• Sustainable development

Environmental Achievements

• Reduced GHG emissions by 6% at constant scope in France, Germany, and Italy due to lower business volumes and acquisition of companies using electricity as their main power source.
• Reduced water consumption by 5% at Schiederwerk.
• Replaced plastic cups with recyclable paper cups in coffee machines at Clextral and Keller.
• Installed water-saving devices on taps.
• Schiederwerk promoted digital documents to reduce paper waste.
• Laulagun Bearings and Keller's manufacturing plants replaced standard bulbs with energy-efficient LED lighting.
• Keller promoted cycling by providing “business bikes” to employees.

Social Achievements

• Launched a cross-functional program in France and Germany to help managers take ownership of their responsibilities.
• Continued efforts to promote gender equality by expanding part-time arrangements at Keller and diversifying hiring practices at Schiederwerk, Laulagun Bearings, and MEP Group.
• Continued sourcing products and services from ESATs (entities providing protected working environments for people with disabilities).
• Implemented anti-discrimination policies across all divisions.
• Provided 2,236 days of training in 2019.

Governance Achievements

• Adopted a Code of Business Conduct in 2008, updated regularly.
• Joined the UN Global Compact in 2004.
• Maintained strong labor relations, including a European Works Council.

Climate Goals & Targets

Environmental Challenges

• Underground leak at Clextral nearly doubled water consumption.
• Increased waste volume due to rubble removal during renovations at Clextral.
• Sourcing upsets generated additional costs and operational issues affecting results.

Mitigation Strategies

• Implemented twice-monthly meter readings at Clextral to prevent future water loss.
• Sent inert waste to a hazardous waste processing center.
• Addressed operational issues, now resolved.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier questionnaires assessing labor and environmental practices
• Selection of local/regional suppliers to minimize carbon footprint

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

Certifications: ISO 9001 (Clextral, Keller, Schiederwerk), ISO 14001 (Clextral, Keller, Schiederwerk), ISO 50001 (Keller), OHSAS 18001/ISO 45001 (Laulagun Bearings, MEP Group)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient LED lighting
• Clextral's Evolum+ dryer

Awards & Recognition

• Entrepreneur Responsable label (Clextral)

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Responsibility
• Safety
• Gender Equality
• Sustainable Development

Environmental Achievements

• Reduced GHG emissions by 11% at constant scope of consolidation in France, Germany, Spain, and Italy. Keller reduced emissions by 25%.
• Reduced waste volumes by 30% from past figures at constant scope of consolidation.
• Clextral reduced water consumption by 15% due to a significant cut in the number of in-station tests.
• Keller reduced water consumption by 33%.

Social Achievements

• Launched a “Generation Contract” (in France) to promote the inclusion of older and younger workers.
• Continued sourcing select products and services with ESATs (entities providing a protected working environment for people with disabilities).
• Implemented a CET (Compte Epargne-Temps) program at Clextral, allowing statutory time off to be taken later or converted to cash.
• Provided 1757 days of training in 2020.

Governance Achievements

• Adopted a formal Code of Business Conduct in 2008, updated regularly.
• Joined the UN Global Compact in 2004.
• Clextral improved its gender equality score to 84/100 in 2020.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacted all activities, with varying degrees of severity across divisions.
• Sales decline of 9% in 2020.
• Disruptions to operations at industrial sites and additional costs due to the pandemic.
• Increased water consumption (18% overall, 86% at Laulagun Bearings due to new plant start-up).

Mitigation Strategies

• Implemented protective measures to keep business running and employees safe.
• Continued to serve customers effectively, particularly in services.
• Implemented cost-saving measures and optimized processes.
• Focused on eco-design for all products and equipment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier questionnaires assessing labor and environmental practices
• Selection of local or regional suppliers to minimize carbon footprint
• Requirement for suppliers to meet a wide-ranging set of standards, including health, safety, minimum age requirements, and environmental protection.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 50001, OHSAS 18001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Clextral's Evolum+ dryer
• Energy-efficient kilns and dryers at Keller
• LED lighting solutions at Schiederwerk

Awards & Recognition

• Entrepreneur Responsable label (Clextral)

Environmental Metrics

ESG Focus Areas

• Professional Development
• Health & Safety
• Environment
• Innovation
• Governance

Environmental Achievements

• Waste volumes down by 156 metric tons
• Water consumed down 2,600 m3
• Natural gas consumption down by 267 MWh
• Laulagun Bearings’ two production sites in Spain are powered exclusively by green electricity
• 100% of business units have ISO 14001 certification for their primary site

Social Achievements

• 67% of all employees took at least one training course in 2021
• 70 work-study students in 2021, with 10 hired on permanent contracts
• Clextral raised its score on the French government's gender equality index from 66/100 in 2019 to 85/100 in 2021
• Schiederwerk signed the Charta der Vielfalt (Germany’s Diversity Charter)

Governance Achievements

• EcoVadis certifications achieved by several business units (Silver: 3, Bronze: 1)
• Implementation of a two-tier governance structure (Executive Board and Supervisory Board)
• Code of Business Conduct updated and shared

Climate Goals & Targets

Environmental Challenges

• Severe disruptions to the global supply chain
• Persistently high raw material costs (steel, electronics, components)
• Shortages of electronics and other components

Mitigation Strategies

• Employees stepped up to deliver results despite supply chain disruptions
• Some business units expanded market share
• Specific projects and concrete medium-term goals for each business unit focusing on organic growth

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: UN Global Compact, EcoVadis

Certifications: ISO 14001, ISO 9001, ISO 45001

Third-party Assurance: EcoVadis

UN Sustainable Development Goals

• 3
• 6
• 7
• 8
• 9
• 12
• 13
• 16
• 17

The report highlights the alignment of initiatives with these SDGs throughout the document.

Sustainable Products & Innovation

• Hortifibre® (peat substitute)
• Wood concrete blocks
• Enviro Kiln (energy-efficient kiln)
• New LED driver for medical applications

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Professional Development
• Health & Safety
• Environment
• Innovation
• Governance

Environmental Achievements

• Scope 1 emissions down 14% from 2021 and Scope 2 emissions down 6.5% for operations in Europe.
• Clextral uses 100% renewable electricity.
• Hydmech customer now recycling cables thanks to MEP subsidiary machine adaptations.
• 2,396 tCO2e offset for Laulagun Bearings in Spain and 87 tCO2e for Clextral.

Social Achievements

• 66% of all employees took at least one training course in 2022.
• Various community initiatives across different subsidiaries (food drives, book donations, tree planting).
• Clextral's workplace equality index improved to 89/100.

Climate Goals & Targets

Environmental Challenges

• Wide differences in Lost Time Injury Frequency Rates (LTIFR) across business units.
• Increased waste (172 metric tons) primarily due to Clextral operations.

Mitigation Strategies

• Targeted safety initiatives defined and deployed by designated safety coordinators.
• Clextral studying ways to recycle test products.
• Energy Committee at Keller to track and reduce energy consumption.

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: UN Global Compact, EcoVadis

Certifications: ISO 14001, ISO 9001, ISO 50001 (60% of businesses), CrefoZert (Schiederwerk)

Third-party Assurance: EcoVadis

UN Sustainable Development Goals

• 3 Good Health and Well-being
• 4 Quality Education
• 5 Gender Equality
• 8 Decent Work and Economic Growth
• 9 Industry, Innovation and Infrastructure
• 10 Reduced Inequalities
• 12 Responsible Consumption and Production
• 13 Climate Action
• 16 Peace, Justice and Strong Institutions
• 17 Partnerships for the Goals

Not disclosed

Sustainable Products & Innovation

• New dies for plant proteins (Clextral)
• New control interface for metal-cutting machinery (MEP)
• Modular system for power supply units (Schiederwerk)
• Eureka machining simulator (MEP)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Professional Development
• Health & Safety
• Environment
• Innovation
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 20% compared to 2021 data for Europe (11.6% from reduced emissions under Scope 1 and 2, 4.8% under Scope 2).
• Reduced waste by 2,605 metric tons, primarily due to Laulagun Bearings' improved quality commitment.
• 100% of business units earned ISO 14001 certification for their primary site.
• Schiederwerk cut power consumption by 6.6%.

Social Achievements

• 70% of employees took at least one training course in 2023.
• Organized various safety and health events for World Day for Safety and Health at Work.
• Launched a new onboarding plan for new employees at Schiederwerk.
• Continued partnership with Proxité to support young people in underserved areas.

Governance Achievements

• MEP Group earned a Silver Medal from EcoVadis.
• All five Group companies achieved EcoVadis certifications in 2023.
• Rolled out a Group-wide secure platform for reporting incidents violating law or the Code of Business Conduct.
• Keller adopted a CSR charter for suppliers.

Climate Goals & Targets

Environmental Challenges

• Wide differences in Lost Time Injury Frequency Rates (LTIFR) across Group businesses.
• Increased water consumption by 6% compared to 2022.

Mitigation Strategies

• Companies work to reduce accident risks and improve LTIFR.
• Continuous efforts to improve health and safety practices across all business units.
• Implementing HSE management system Group-wide.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Keller's CSR charter for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, EcoVadis

Certifications: ISO 14001, ISO 9001

Third-party Assurance: EcoVadis

UN Sustainable Development Goals

• 3
• 6
• 7
• 8
• 9
• 10
• 12
• 13
• 16
• 17

Not disclosed

Sustainable Products & Innovation

• Energy-efficient products
• Products using ecodesign process

Awards & Recognition

• MEP Group's Silver Medal from EcoVadis
• Schiederwerk's CrefoZert certification