Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics
• Energy and environmental performance
• Health & Safety
• Human resources

Environmental Achievements

• Two additional industrial sites achieved ISO 14001 certification.
• 73% of Fives' industrial sites are ISO 14001 certified.
• Three new products were awarded the Engineered Sustainability® brand.
• Published a White Paper on industrial waste heat recovery.

Social Achievements

• Group overall frequency rate reduced by a factor of three in six years.
• More than 70% of employees underwent training in 2016.
• Launched the Group's first worldwide training program, the Fives Leadership Factory.
• Continued support for new hires with Starter meetings and Career management committees (CEDRE).

Governance Achievements

• 97% of Group companies distributed the Code of conduct to their employees.
• Implemented anti-corruption mechanism based on rules, tools, and risk analysis.

Climate Goals & Targets

Environmental Challenges

• Difficult economic environment with volatile economic, political, and institutional context impacting investment decisions.
• Increase in accident frequency rate in 2016, particularly in workshops.
• Difficulties in newly acquired companies assimilating Group's safety standards.
• Low energy and raw material prices affecting activities linked to oil, gas, mining, and construction machinery.

Mitigation Strategies

• Initiatives around optimizing costs to improve EBITDA and cash-flow.
• Deployment of Group Safety Golden Rules and Field Safety Observation and Dialog visits to improve safety culture.
• Strengthening purchasing performance with training and support for subsidiaries.
• Implementing a common project management reference-base for the whole Group.

Supply Chain Management

Responsible Procurement

• EcoVadis rating

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, GRI, ISO 14001

Certifications: ISO 14001, ISO 9001, OHSAS 18001 or MASE

Third-party Assurance: EcoVadis, Indefi, EY

Sustainable Products & Innovation

• Engineered Sustainability® products

Awards & Recognition

• John Deere Achieving Excellence award

Environmental Metrics

ESG Focus Areas

• Innovation
• Operational Performance
• Human Resources
• Health and Safety
• Energy and Environmental Performance
• Ethics and Compliance

Environmental Achievements

• 80% of Fives’ industrial sites are ISO 14001 certified.
• Development of the Pillard NANOxFLAM® boiler burner to achieve the lowest NOx emissions on the market.
• Eco-design program resulting in 9 products with the Engineered Sustainability® brand.

Social Achievements

• Improved Group accident performance with a historically low lost-time accident frequency rate of 3.74.
• 77% of employees attended training courses.
• Deployment of the Fives&Me people management system.

Governance Achievements

• Top 1% of the EcoVadis panel with a score of 75 out of 100.
• 93% of companies underwent a corruption risk analysis.
• Code of conduct distributed to 93% of companies.

Climate Goals & Targets

Environmental Challenges

• Maintaining proximity, agility and business sense across diverse industries and locations.
• High number of accidents at workshops.
• Low proportion of women in the workforce (15%).
• Need to adapt to changing market trends (e.g., electric engines, lighter materials).

Mitigation Strategies

• Implementation of Lean Management approach.
• Deployment of Group Safety Golden Rules.
• Talent identification and development processes.
• Development of flexible production systems.
• Eco-design program and ISO 14001 certification.

Supply Chain Management

Responsible Procurement

• Incorporating social responsibility goals into relations with subcontractors and suppliers.
• Promoting supplier innovation.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, ISO 14001, ISO 14062, EcoVadis

Certifications: ISO 14001, ISO 9001, OHSAS 18001 or MASE

Third-party Assurance: EY

Sustainable Products & Innovation

• Pillard NANOxFLAM® burner
• Engineered Sustainability® products

Environmental Metrics

ESG Focus Areas

• Environmental Footprint Minimization
• Fair Market Behavior
• Health and Safety
• Responsible Employment
• Compliance

Environmental Achievements

• 79% of Group's industrial sites ISO 14001-certified
• 30% of Fives companies implemented actions to reduce energy consumption
• Ongoing development of Rhodax® recycling process

Social Achievements

• 432 employees trained in business ethics in 2019
• Improved EcoVadis rating to Confirmed (Gold) level, 76/100
• 16% women among employees, 42% women in engineering and management roles
• 419 trainees (+12% compared to 2018), 343 work-study contracts (+4% compared with 2018)

Governance Achievements

• Definition of the Group's new compliance roadmap
• Implementation of the new WhistleB internal alert system
• Finalization of new internal control Guidelines
• Drafting of a new CSR Supplier Charter

Climate Goals & Targets

Environmental Challenges

• Slightly increased lost-time frequency rate in safety (3.30 to 3.39)
• 1 fatal accident
• Increased number of severe accidents (1 to 4)

Mitigation Strategies

• Group Safety Ambition program: development of digital safety tools, self-assessment tool for safety maturity
• Creation of a China Safety Coordination
• Development of a new Health at Work program

Supply Chain Management

Responsible Procurement

• Integration of environmental and social criteria into purchasing processes
• Reinforcement of safety aspect in purchasing process
• Drafting of a new CSR Supplier Charter

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Compact Principles, UN Sustainable Development Goals

Certifications: ISO 14001

Sustainable Products & Innovation

• Rhodax® recycling process

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 80% of sites ISO 14001 certified
• Development of MMS® (Mirror Milling System), a more environmentally friendly machining solution replacing a polluting chemical process.
• Development of VERCANE program to support the glass industry's decarbonization.
• Development of Helios solution for clean and efficient combustion in anode baking, reducing energy consumption and emissions.
• Development of FCB Rhodax® crusher for concrete recycling, reducing CO2 emissions in the cement industry.
• Development of Pillard NOVAFLAM® Evolution, ITAS Ductflame, and EcoFornax™ ultra-low NOx burner range to reduce emissions.

Social Achievements

• Implemented health measures and adapted working methods to protect employees, partners, and customers during the pandemic.
• Developed new tools to promote information sharing and strengthen employee ties during remote work.
• Qualified and centralized training offer focused on leadership, management, diversity, security, and cybersecurity.
• Emphasis on diversity and actions aimed at supporting women in the organization.
• Reduced number of serious lost-time accidents by 2/3 since 2009.

Governance Achievements

• Modified governance and management structure to become more agile.
• Reinforced risk management system, including a risk committee, Group Directives, and an internal audit team.
• Organized new internal actions to promote anti-corruption measures.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disrupting markets and causing a recession.
• Weakened commercial environment and turbulence affecting sales.
• Travel restrictions and plant shutdowns impacting service-based activities.
• Supply chain disruptions due to the pandemic.

Mitigation Strategies

• Agile and creative approach to seize commercial opportunities.
• Continued transformation and innovation programs.
• Efficient control of margins and overhead reduction efforts.
• State-guaranteed loans to maintain liquidity.
• Implementation of remote assistance and collaborative tools to ensure project continuity.
• Development of counter-measures to ensure timely equipment delivery despite supply chain issues.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, EcoVadis, Vigeo Eiris, Solar Impulse Foundation

Certifications: ISO 14001 (80% of sites)

Sustainable Products & Innovation

• MMS®
• Helios solution
• FCB Rhodax®
• Pillard NOVAFLAM® Evolution
• ITAS Ductflame
• EcoFornax™

Awards & Recognition

• EcoVadis Platinum supplier
• Fastmarkets Global Awards for Steel Excellence (Technology Provider of the Year and Information Technology Services Provider)

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Energy Transition
• Environmental Impact Reduction
• Diversity & Inclusion
• Climate Change
• Human Rights
• Safety

Environmental Achievements

• Reduced accident frequency rate by 4 (from 11.32 in 2009 to 2.92 in 2021)
• Reduced accident severity rate by 3 (from 0.32 to 0.10 over the same period)
• Developed a complete suspended clay calcination solution to reduce cement’s carbon footprint by up to 40%
• Developed Non-Oxidizing Wet FlashCooling® technology to reduce operating costs and environmental impact in steel production
• Improved customers’ environmental performance by optimizing energy consumption, extending equipment service life, and predictive maintenance

Social Achievements

• Launched a program to nurture the development of women’s careers, highlight their skills, and attract and recruit other women
• Increased recruitment of women by 5% since 2018 in North America
• Launched a Disability Unit to raise awareness, improve support for employees with disabilities, and expand recruitment of disabled workers

Governance Achievements

• Maintained Gold status from EcoVadis, placing it in the top 3% of companies assessed

Climate Goals & Targets

Environmental Challenges

• Shortage of key components and dependency factors due to the war in Ukraine
• Slower performance rates for existing projects due to longer supply times
• Increased costs of raw materials and logistics
• Operational disruption linked to travel restrictions
• Attracting and retaining talent
• Addressing climate change

Mitigation Strategies

• Strengthened workforce through recruitment efforts
• Implemented structural savings in High Precision Machines and Process Technologies activities
• Developed alternative sourcing strategies (implied)
• Focused on innovation to reduce industry's carbon emissions and ensure digital transformation

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Third-party Assurance: EcoVadis

Sustainable Products & Innovation

• FCB Rhodax® 4D
• Suspended clay calcination solution
• Non-Oxidizing Wet FlashCooling®
• Prium® E-Melt Furnace
• Prium® Eco-Flex Furnace
• SmartLine
• Pillard NANOxFLAM® burners
• Pillard NOVAFLAM® Evolution+ burners
• SOFIA and MIREA technologies
• HELIOS
• FCB Horomill®
• Cincinnati Robotic Viper®

Awards & Recognition

• Industry of the Future Showcase label

Environmental Metrics

ESG Focus Areas

• carbon emissions reduction
• energy efficiency
• machine safety
• diversity
• employee well-being

Environmental Achievements

• Energy consumption per hour worked has fallen by 5% since 2019.
• Set a target to reduce its CO2 (scopes 1 & 2) emissions by 30% by 2030 (using 2019 as the benchmark year).

Social Achievements

• Implemented a system in France to offer support to subsidiaries, by coordinating the same types of new hire and optimizing the use of in-house recruitment.
• Several referral campaigns were also carried out internally.
• Slight increase in the proportion of women in the workforce.
• 20% women in Management Committees (vs. 18% in 2021), and 7% women CEOs (vs. 5% and 3% in previous years).

Governance Achievements

• Extended its anti-corruption initiative and continued to raise employee awareness through its e-learning and classroom training program.
• Particular focus on raising awareness among directors and members of executive committees.

Climate Goals & Targets

Environmental Challenges

• Major crises triggered imbalances, significantly disrupting the macro-economic framework.
• War in Ukraine (loss of order intake opportunities in Russia).
• Strict lockdown in China to tackle the COVID-19 pandemic.
• Major supply chain disruption (electronic component shortages, reduced supply of manufactured sub-assemblies, complex logistics).
• Rising inflation (raw materials and energy costs).
• Tightening of monetary policies (pressure on expected returns on investment).

Mitigation Strategies

• Generally managed to protect its margins, shifting the rise in costs and longer time frames onto its sales prices and execution schedules.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Decarbonizing industrial processes
• Increasing the use of low-carbon energies
• Developing the circular economy
• Digitalization and cybersecurity
• Urban logistics
• Health and Safety
• Diversity and Inclusion

Environmental Achievements

• 15% reduction in total scope 1&2 emissions between 2019 (base year) and 2023
• 6% decrease in total energy consumption compared to 2022, and 11% since 2019
• 17% drop in natural gas, heating oil and fuels consumption since 2019
• 4% decrease in electricity consumption since 2019
• Increased number of sites with ISO 14001 certification

Social Achievements

• Increase in the proportion of women in management (20% on management committees, compared with 15% in 2019)
• Proportion of women among managing directors rose from 3% to 9% in four years
• 3,016 employees completed Business Ethics training in 2023
• 322 directors and members of executive committees completed specific training in 2023

Governance Achievements

• Extended anti-corruption measures, setting up a sector-based and geographical organization
• Appointed regional Compliance Officers and divisional and subsidiary Compliance correspondents
• Established a multi-year roadmap aimed at decreasing lost-time accidents

Climate Goals & Targets

Environmental Challenges

• Market slowdown on the e-commerce segment in North America and Europe
• Halt in combustion engine-related investments in the automotive sector in Europe and China
• Sharp upturn in activity leading to a rise in lost-time accidents

Mitigation Strategies

• Major investments in e-commerce segment in Japan
• Growth in industrial automation activities (E2Motion segment), particularly in the automotive sector in the United States
• Rolling out a multi-year roadmap aimed at getting back to a decreasing trajectory of lost-time accidents

Supply Chain Management

Climate-Related Risks & Opportunities