Saint-Gobain // Universal Registration Document 2021

3 An efficient and responsible Group Maximize the contribution for the planet and communities SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 83 Opportunities and risks related to the Group’s value chains, particularly in construction 2.1.2.1 The identification and assessment of risks and opportunities related to climate change is an integral part of Saint-Gobain’s global risk management and innovation processes. As such, the Group has identified ten risks and five strategic opportunities related to climate change. Each risk and opportunity affects each segment of the Saint-Gobain’s value chain differently, from the extraction of raw materials to their end of life. The tables below show how the opportunities and risks identified by Saint-Gobain impact each stage of the value chain while being part of global market dynamics and meeting consumer expectations. This approach has also been aligned with TCFD recommendations. The identified risks are not of material financial significance to the Group. TYPE OF RISK RISK IMPACT ON VALUE CHAIN Extraction and treatment of raw materials Manufacturing and distribution, in particular of construction materials Clients’ expectations Other stakeholders’ expectations POLITICAL AND LEGAL Increase in the price of GHG emissions In Europe, risk of competitiveness with respect to imported materials Increase in manufacturing and distribution costs Increasing demand for low-carbon buildings and products Demand for reduced emissions from products and operations Product composition and regulatory changes Risks associated with the substitution of raw materials currently used Risks associated with the implementation of new compositions Demand transparency and choice of more sustainable solutions. Stop purchasing of certain solutions Demand transparency and orientation towards more sustainable solutions. Reputational risk Climate change litigation Disruption of certain supplies Disruption of operations Threat to the company’s reputation Exposure to claims for damages resulting in financial costs TECHNOLOGICAL Substitution of existing products with low-carbon options Use of low-carbon raw materials. Availability and costs Integration of low-carbon solutions into the product range. Pace vs competition and demand Development of the circular economy Communication expectations for carbon intensity of materials and products Increased R&D spending to develop low-carbon solutions Transition to low-carbon technologies Fluctuation in project profitability as a function of low-carbon raw material costs Fluctuation in project profitability as a function of the production cost of low-carbon products Risk of loss of competitiveness if consumers continue to use high-carbon solutions Increase in R&D spending needed to develop breakthrough innovations MARKET Increase in the price of raw material and energy Rising cost of carbon-intensive raw materials Increase in production cost Changing preferences encouraging to use new materials Increase in R&D spending required to develop extraction methods and search for low-carbon raw materials REPUTATIONAL Perception within civil society Risks associated with the retention of extractive practices and usage of fossil energies Risk of reduced demand for products in the event of negative public opinion Growing attention and responsiveness to climate change issues Growing impact of public opinion on investors. Legal risk ACUTE PHYSICAL Increase in the intensity and frequency of extreme events (cyclones, floods) Disruptions and delays in the extraction, transportation and delivery of raw materials Decrease in production capacity due to damage and loss of equipment and buildings Ensuring the safety of workers throughout the supply chain Increasing requirements in terms of safety and resilience of structures to limit additional delays and losses CHRONIC PHYSICAL Sea level rise, increase in average temperatures, change in precipitation regime Reduced availability and/or increased cost of raw materials from suppliers exposed to risks of high heat, flooding or lack of water Increasing exposure of sites to the risk of flooding and high temperatures affecting production costs and energy consumption Consideration of risk of water shortage at the local level Construction of affordable housing adapted to the physical risks for local populations Consideration of commitment of companies to at-risk populations; Calls for new construction methods adapted to these growing risks

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