3 An efficient and responsible Group Maximize the contribution for the planet and communities www.saint-gobain.com SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 92 Resource conservation and the transition 2.2 to the circular economy Saint-Gobain aims to create value through a business model that contributes to a circular economy by preserving resources and in particular by minimizing its footprint and maximizing its contribution, so as to reduce the pressure on non-renewable resources and to enable the regeneration of natural capital. The circular economy is a model adapted to the scarcity of non-renewable resources and to changes in society such as urbanization and demographic changes. This model is applied closer to the markets and at the territorial level. A successful transition towards the circular economy will make it possible to offer solutions and services over the long term which take into account environmental, social and societal expectations and which balance well-being, sustainability and performance for stakeholders. In addition to limiting the depletion of natural resources, moving towards greater circularity in the economy generates positive effects on other environmental issues, such as reducing pollution, protecting biodiversity and accelerating the decarbonization of the economy. Strategy for a transition towards 2.2.1 a circular economy To accelerate the transition towards the circular economy, Saint-Gobain’s strategy is based on four main areas to minimize the impact of Saint-Gobain’s operations on its entire value chain and maximize the profits of solutions while maintaining the value of resources at the highest level: the circular management of the supply chain and ■ operations: elaborate more efficient production processes in terms of resources by ensuring that the use of non-renewable natural resources is limited, sourcing responsibly managed renewable resources and limiting the final waste from production; the recovery of resources after the use of products: ■ create recycling channels by initiating or participating in initiatives with all stakeholders to promote the recovery and recycling of construction materials or materials from the industrial markets in which the Group operates; a range of solutions that optimize the use of natural ■ resources: by ensuring the recyclability of products and encouraging the integration of recycled materials throughout the product life cycle (including end-of-life management), but also by integrating the extension of the product's useful life or the increase of the utilization rate of products in the offers, for example by encouraging the modularity of buildings, anticipating deconstruction for optimum recycling or reuse of materials, but also by involving the stakeholders (through information and training of customers). Thus, the Group’s transition to a circular economy is beneficial for the environment as it reduces the pressure on non-renewable resources and ensures the regeneration of renewable resources, it also helps reduce CO2 emissions. While responsible resources management is the subject of a Group-wide policy, action plans for the transition to a circular economy are highly dependent on countries, the maturity of stakeholders and local logistics. Approaches are therefore deployed by activity in order to involve the various sectors, in each country. Develop the offer of products, 2.2.2 solutions and services The gradual emergence of the circular economy is changing value chains and ecosystems. From the design of products, solutions and services to the benefits expected by customers and end-users, and the management of product end-of-life, Saint-Gobain's offering must adapt to new methods: incorporating more recycled or renewable materials to reduce the consumption of virgin raw materials and the consequences of their use, particularly on biodiversity; extending the life of products to reduce their environmental impact; and facilitating the recycling or reuse of products at the end of their life to successfully meet market needs with a limited impact on natural resources. Thus, the portfolio of products and solutions offered by Saint-Gobain is analyzed transversally under the responsibility of the marketing teams with three priorities: the substitution of raw materials by recycled or ■ renewable materials, including packaging; the development of formulations to reduce their ■ content of hazardous substances until their complete replacement, thus avoiding the dissemination of materials generated during the recycling process; the improvement of the recyclability and reusability of ■ products and systems, including their packaging, by integrating repairability and ease of disassembly at the end of life. Likewise, product design incorporates these eco-innovation principles. Most of the Group's business lines are working to reduce the resource intensity of their products, by reducing the average weight for the same unit of product, without affecting technical performances. This is the case, for example, for car windshields and plasterboard. Several countries have already implemented the BANTAM program, which aims to reduce the weight of plasterboard by working on industrial processes and product formulations. Some factories have been able to reduce the weight of their standard boards by more than 20% compared to their initial weight. The SLIMWOOL program, deployed since 2028 worldwide, aims to optimize the weight of glass wool, while guaranteeing the product's thermal performance. The actions deployed concern not only the products but also their packaging. Action plans have been deployed to reduce packaging globally and to ensure that it is recyclable. Consequently, marketing teams and buyers have been working together to change packaging materials or design to encourage recycling in existing channels. Saint-Gobain has set a target of 100% recyclable packaging by 2030. In 2021, 69% of packaging is recyclable.