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 86 “The Show Might Go On” scenario SUSTAINABLE CITY Model of existing city Nairobi, Buenos Aires, Beijing and some other Chinese cities Size Rapid growth due to intensive industrialization Mobility Public transit does not cover the entire city and does not make it possible to optimize travel. Most people continue to travel by car. METHOD OF CONSTRUCTION Two models emerge: firstly, the European model, and secondly, the US model. ■ In Europe, the majority of the population lives in office buildings built in 2000 and converted into residential buildings in 2030. The ■ individual apartments are small, but benefit from large shared spaces (workspaces, fitness, high-tech kitchens). A centralized monitoring system automatically adapts heat, lighting, ventilation and cooling. Shared appliances in kitchens and laundry rooms are very efficient and use little energy. The roof is equipped with photovoltaic panels and the insulation has been reinforced with recycled materials. In the United States, the majority of the population lives in apartment buildings and private condominiums in the suburbs of a large ■ city, in buildings dating from the 1970s. Only a minority of individual apartments have been renovated. Energy consumption is not systematically monitored. However, installations have been put in place to mitigate the effects of climate change on the comfort of residents: the insulation of the walls and roof has been improved and double-glazed windows have been installed. Most devices are programmable, but none are shared. “Highway to Climate Hell” scenario SUSTAINABLE CITY Model of existing city London, Rio de Janeiro, some US cities, Lagos, Lima, new Cairo Size These immense cities occupy a vast territory and are home to three to five million inhabitants. In less developed countries, these growing cities are surrounded by large slums. Mobility The majority of the population lives in the suburbs and driving is the most used mode of transportation thanks to the extent of the road network. METHOD OF CONSTRUCTION Subsidized, affordable but low-quality housing is built to contain the endless expansion of slums in emerging countries. Poor quality is often accompanied by raised living spaces, a lack of daylight, thermal discomfort, high levels of noise pollution and inadequate ventilation of fresh air. Basic insulation solutions are still incompatible with the affordability required for such “slum sanitation” approaches. Implementation of cooling processes as the only response to global warming. Access to basic services (wastewater, drinking water, electricity, sanitation, waste disposal) is an important step towards achieving the fundamental objectives of human development. Recycling, reuse and the circular economy can only be considered when these basic services have been fully realized. Risk and opportunity management 2.1.3 The challenges related to climate change represent both risks and opportunities for Saint-Gobain. The system for identifying, assessing and managing global and local risks is detailed in Saint-Gobain’s response to the CDP climate questionnaire. In this area, the Group follows the principles of reasonable diligence. This process allows to identify, prevent and mitigate actual and potential negative impacts associated with its business and supply chain, as well as to report on how these impacts are addressed. None of the risks related to climate change is of material financial significance for the Group in 2021. Risks related to climate change Physical risks Saint-Gobain is exposed to several types of physical risks, such as the increase in the intensity and frequency of extreme events, the rise in sea levels, the increase in average temperatures and changes in the precipitation patterns. chapter 6, section 1.1.9). The management of these risks is then reflected in the development and implementation of specific policies supporting Saint-Gobain’s environmental commitments, for example in terms of water management and biodiversity (see this chapter, section 3.3.2). In addition, the Group ensures that physical risks are taken into account throughout its value chain. As part of its responsible purchasing program, Saint-Gobain relies on a diversity of suppliers and supply sources to reduce the risk of transportation difficulties and supply chain disruptions (see this chapter, section 3.2.1). Finally, the Purchasing Department considers the risk of an increase in the price of raw materials or of energy and greenhouse gas emissions in its purchasing strategies (see chapter 6, section 1.1.5). The Risk and Insurance Department continuously assesses the risks to which the Group’s sites are exposed worldwide, and in particular the risks related to the effects of climate change (see this chapter, section and Transition risks Saint-Gobain is committed to achieving the target of “net zero emissions” by 2050. The Group anticipates the technological risk linked to the substitution of existing products by low-carbon options by investing in the development of disruptive technologies and eco-innovative solutions to meet the expectations of its customers. Two internal carbon prices were set up and increased in 2021 to support the viability of Saint-Gobain’s projects and strategy (see this chapter, section