3 An efficient and responsible Group Maximize the contribution for the planet and communities SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 89 Regarding energy, processes that are technically adaptable to the exclusive use of electrical energy have been identified. For these processes, the transition is facilitated by the development of local renewable electricity grids and the growing share of decarbonized electricity in national grids. Energy buyers have therefore been involved in identifying reliable and competitive sources of green electricity in the countries in which Saint-Gobain operates. This transition to the use of decarbonized energies takes the form of investments such as the installation of solar panels and wind farms in India that generate around 45 GWh of renewable electricity or the use of market mechanisms such as green certificates or Power Purchase Agreements (PPAs). Thanks to its agreement with Blooming Grove Wind Farm, in 2020 Saint-Gobain North America was able to reduce its carbon emissions by 8.4% in North America in 2021. For processes for which the adaptation to the use of electrical energy is technically more complex, two axes of innovation are then deployed: one on the development of carbon-free energies (biogas, biomethane or hydrogen for example); and the other, to develop processes and make them compatible with an increasing use of green electricity. Overall, innovation is a lever used by the Group to reduce the impact of its activities (see chapter 2, section 3.3.1.5). Saint-Gobain also wants to develop carbon-neutral plants as quickly as possible. For example, in May 2021 the Group announced an investment of €25 million in its plasterboard plant at Fredrikstad, Norway, to increase its production capacity by around 40% and transform its plant into the first carbon-neutral plasterboard production site in the world. Saint-Gobain receives a grant from the Norwegian government agency Enova; the new facilities will be operational in early 2023. To support this effort towards carbon-neutral industrial processes, a budget of €100 million per year has been allocated to CAPEX and research and development investments for the next ten years. This budget has been invested in 2021. Control of scope 3 2.1.5.3 Scope 3 emissions are indirect emissions that are generated in a company’s value chain. Given the complexity of the value chains, the assessment of emissions is a challenge and the improvement of data quality is essential in the context of the commitment to carbon neutrality. For this reason, Saint-Gobain's updated scope 3 emissions assessment in 2021 has been accompanied by a more specific assessment of emissions factors and a more granular analysis of impacts on the three most significant categories: purchases of raw materials (category 1); ■ transport and logistics (categories 4 and 9); ■ purchases related to trade activities (category 1). ■ validate the 2030 targets by SBTi (17.3 Mteq CO2). Excluding the broader coverage of impacts, scope 3 would be estimated at 16.8 Mteq CO2 in 2021. Saint-Gobain publishes its emissions by scope 3 emissions category in the CDP Climate. Thus, in 2021, the Group's scope 3 is estimated at 21.3 Mteq CO2 compared to the 2017 base used to In line with its commitment to carbon neutrality by 2050 and its objective of reducing its scope 3 by 16% by 2030 - validated by SBTi - compared to 2017, the Group will continue its efforts to increase transparency and improve the assessment of impacts on its value chain through the mobilization of its teams and in collaboration with its suppliers. Saint-Gobain has implemented digital tools to make assessment of scope 3 more reliable. The methods used to assess carbon emissions and integrate emission factors have been coordinated globally. The scope 3 program involves suppliers in negotiations conducted by the trade and non-trade purchasing teams. The objective is to identify common approaches and innovations that Saint-Gobain could support to accelerate their availability. 5 principles are implemented by the purchasing teams and environmental experts: a digital tool available to teams at local and global ■ levels to enable them to estimate scope 3 emissions; communication kits to share the challenges and targets ■ of the fight against climate change with suppliers; the collection of information by suppliers on their ■ emissions on the basis of life cycle analyses verified by independent third parties; the integration of the maturity of suppliers regarding ■ their climate commitment into the overall assessment of their performance; the creation of joint action plans with suppliers to ■ reduce their carbon impact. This systemization will continue to make scope 3 assessments more reliable. It also structures action plans to accelerate the reduction of emissions. Best practices have been identified and shared with all Group buyers. For example, a guide listing the most reliable eco-labels was shared in 2021. Collaboration with stakeholders 2.1.6 Strong commitments to the climate 2.1.6.1 Saint-Gobain is fully committed as a non-state actor to the implementation of the Paris Agreement, and participates with its partners in the subsequent COP (Conferences of the Parties). In November 2021, during the COP26 in Glasgow, Saint-Gobain took part in the global mobilization in the industry for a decarbonized construction and further contribute to a more circular economy, by organizing a series of round table meetings on the subject before and during the COP, with several speeches, in particular from Benoit Bazin and Pierre-André de Chalendar.
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