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 87 At the local level, monitoring and compliance programs have been implemented in the countries by the EHS Department, while the Legal Department monitors new environmental regulations (see this chapter, section and chapter 6, section 1.1.6). In addition, the marketing teams ensure that the Group’s products comply with local environmental regulations (see this chapter, section 3.4.1). Similarly, the risks of climate change disputes are assessed as part of the existing risk management process. In addition, Saint-Gobain monitors changes in climate reporting requirements in order to meet the expectations of its stakeholders (see this chapter, section 3.4.1). Finally, aware of the impact of a bad reputation on environmental matters, the Group fully integrates reputational risk into its overall risk management policy. Saint-Gobain is demonstrating its commitment to the climate through concrete targets for reducing its CO2 emissions and energy consumption. Finally, the needs and risks related to access to water for local populations are systematically taken into account in its action plans. Opportunities Improve resource management and energy efficiency Saint-Gobain anticipates the risk of a scarcity of raw materials by actively promoting the transition towards a circular economy (see this chapter, section 2.2.1) and by reducing its water consumption (see this chapter, section The substitution of non-renewable virgin raw materials with renewable or recycled raw materials, the extension of the lifespan or use of our products or systems and the reduction of the intensity of materials are at the heart of the Group’s innovation process and enable it to ensure the competitiveness of its solutions while anticipating changes in the preferences of its end consumers and legislations. Saint-Gobain is also working to optimize and reduce its energy consumption through such means as investing in digital tools to adjust energy consumption as closely as possible to needs (see chapter 2, section Develop sustainable solutions Anticipation of the increase in the cost of high-emission products, which would follow the tightening of regulations and the change in preferences expected by consumers and customers, encourages Saint-Gobain to support the development of low-carbon materials and methods throughout its value chain (see chapter 2, section 3.1). In addition to its efforts to achieve carbon neutrality in its operations, the Group promotes renewable energies and develops solutions to improve the energy efficiency of its customers in order to enable them to meet the climate and environmental challenges they face (see chapter 2, section 1.1.1). Moreover, thanks to its strong exposure to the renovation market, the Group is ideally situated to play a decisive role in the national and European “green recovery” plans for the energy transition, which should support Saint-Gobain’s structural growth (see chapter 2, section 1.2.1). Solutions 2.1.4 Designing innovative solutions incorporating "carbon benefits" Saint-Gobain is innovating to develop solutions to reduce the carbon footprint of buildings throughout their life cycle: by reducing their energy consumption during the ■ utilization phase; these are insulation and glazing solutions that improve energy efficiency; by reducing the carbon impact of its products and ■ solutions, particularly by developing lighter building solutions, increasing the amount of recycled materials used to manufacture them or by using renewable energy to power its industrial processes. A web platform called Green Buildings Saint-Gobain enables the Group’s customers to evaluate the contribution of its products and solutions to obtaining LEED, BREEAM, WELL or international HQE certifications. Energy efficiency and reducing the carbon footprint of products are two criteria incorporated into the methodology for evaluating sustainable solutions under the Solutions for Growth program (see this chapter, section 3.4.4). Measure the "carbon benefits" of products and solutions The innovative solutions developed by Saint-Gobain to improve the energy efficiency of buildings lessen the negative impacts of the construction sector on the climate and cut occupants’ energy bills, while enhancing well-being. They therefore play an important role in the fight against climate change, as they allow through a reduction of energy demand to decrease the quantity of greenhouse gases emitted. Thus, the benefits offered by the Group’s thermal insulation products and glass exceed significantly the impacts associated to their production in terms of energy consumption and greenhouse gas emissions. After an initial calculation carried out in 2015 at the conference COP21, Saint-Gobain decided, in 2021, to update and improve the methodology used to calculate the quantity of greenhouse gases avoided thanks to the use of its own solutions, in order to: comply with the most recent and recognized ■ international recommendations for the calculation of prevented greenhouse gas emissions; extend the geographic coverage of the evaluation. ■ Saint-Gobain has estimated that nearly 1,300 million tons of emissions were avoided thanks to the solutions produced and sold in one year. The updated methodology is available to all stakeholders on the Saint-Gobain website. This calculation has been reviewed by an independent third party.