Saint-Gobain // Universal Registration Document 2021

2 Strategy The action: a strategic plan based on six priorities SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 59 An internal venturing approach Saint-Gobain encourages the intrapreneurial dynamic of its teams, with the goal of promoting the development and sharing of ideas to create new business opportunities and new initiatives by combining the Group’s strengths with a mindset and methodologies closer to the functioning of a start-up. The internal venturing approach is structured around the InPulse program, launched in Brazil in 2017 and replicated in most regions. The most promising ideas put forward by employees benefit from Group support, notably via access to open source training materials, and give rise to acceleration and financing initiatives. Recent examples include a low-cost machinery and spare parts plant (via a team in Turkey), ‘tiny house’ kits (via a team in Brazil) and a digital solution for the collection and deposit of construction waste in recycling centers (via a team in France). The idea is also to systematically promote within the teams constant adaptation to fast-moving changes, to develop the ability to experiment, to adjust, and to apply resilience and tenacity. Leveraging innovation to improve environmental performance Through the generalization of eco-innovation practices (i.e. the design of solutions with minimized impacts and optimized benefits for the environment and health), innovation is also ultimately emerging as an essential way of achieving Saint-Gobain’s objectives in the area of sustainable development on all measurement scopes: on the Group’s operations, but also on the upstream and downstream part of the value chain. Resulting from innovation in construction chemistry, new adhesive mortars offered by Saint-Gobain enable, for example, a 46% reduction in CO2 emitted, a 28% reduction in water consumption, and a 25% reduction in use of raw materials compared to comparable products; still in construction, the Adfors and Chryso entities offer decarbonization solutions to global players in the sector. This approach applies to all of the Group’s activities and industrial processes: the first zero-carbon plasterboard plant will be operational in Norway in 2023, a concrete demonstration of the commitment made by Saint-Gobain to reduce its CO2 emissions (scopes 1 and 2) by 33% by 2030 compared to 2017, with a focus on carbon neutrality by 2050. For its industrial customers, Sefpro and Norton offer specialty materials for decarbonizing manufacturing processes. In the field of mobility, brands such as Sekurit and Norseal are marketing solutions that improve the energy efficiency of electric vehicles. Example: the virtuous impact of innovation on GHG emissions throughout the construction and renovation value chain Suppliers Logistics Manufacturing Distribution Logistics Worksites Building’s lifecycle Dismantling and adaptation UPSTREAM SAINT-GOBAIN OPERATIONS DOWNSTREAM Selecting the most virtuous suppliers Encouraging delivery methods which emit the least CO2 Offering the most innovative solutions which emit the least CO2 in the fitting phase Incorporating end of life, re-use and adaptation into the design of products and materials, offering services enabling circularity Help craftsmen to speed up the installation of the most effective energy-saving solutions Improving procedures Encouraging delivery methods which emit the least CO2 Solutions, products and materials which prevent CO2 emissions during the whole building's lifecycle For a detailed representation of the entire Saint-Gobain value chain, see chapter 3, section 3.1. For a complete overview of the points of contact between the links in the Group’s value chain and the United Nations Sustainable Development Goals (SDGs), see Saint-Gobain's integrated report (1). Unleashing the power of digital technology through data collection and use 3.3.2 As we have seen, digital technology impacts all business sectors in which Saint-Gobain operates (see, in this chapter, section 1.1.4). The Group approaches this subject as a lever for progress and performance improvement, and also as a cross-functional challenge, which concerns both its internal operations (industrial processes, management, employee engagement), its relations with its suppliers, its customers and other stakeholders, as well as its social and environmental responsibility. It is for this reason that a new Group Digital and Information Systems Department was created in 2021, led by a Chief Digital and Information Officer reporting directly to the Chief Executive Officer of Saint-Gobain. It should be noted that the specific needs, constraints and challenges related to digital technology, as well as the level of sophistication of the initiatives undertaken in this area, vary greatly depending on the Group’s activities. (1)