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 93 Finally, because construction already accounts for 40% of the world's resource consumption, Saint-Gobain is actively and collaboratively involved in discussions on the evolution of construction methods towards lightweight construction solutions that use fewer materials for at least the same performance. The criterion of optimizing natural resources is one of the identified benefits in the Solutions for Growth program (see this chaper, section 3.4.4). This criterion includes both limiting the use of natural resources and incorporating recycled materials into product compositions. Develop manufacturing processes 2.2.3 Reducing the consumption of raw materials per functional unit produced and the waste generated by industrial processes are the pillars of the sustainable resources management policy initiated in 2015 (see this chapter, section with the aim of moving towards the "zero unrecovered waste". Synergies between the Group's various industrial processes are used to optimize the reuse of waste and by-products. In the countries where Saint-Gobain operates, teams are gradually setting up services to recover waste from customers' activities, in particular waste from renovation or demolition/deconstruction. This waste is collected, sorted and reprocessed before being reused in the industrial process instead of natural raw materials. Overall synergies are possible across the businesses for each process or raw material to identify the deposits, material qualities or even good technical practices and favorable technical innovations by country. Cross-business working groups including the manufacturing and technical departments, purchases, sustainable development experts on the collection and processing of recycled materials have been set up to develop these global synergies. The search to replace as many non-recyclable raw materials as possible is part of the industrial performance improvement program (see this chapter, section The aim of these replacements must be to maintain the quality and competitiveness of the products and solutions and even improving them while reducing their carbon footprint. For flat glass, the recycling of window glass, facade glass or automotive glass is infinitely possible as long as the collected glass elements meet the quality requirements of a float furnace, in particular that contaminants of all kinds are eliminated. The integration into products is therefore mainly dependent on the existence of efficient and sustainable collection networks, which are able to ensure a sorting that meets the desired quality specifications. For plaster, once the contaminants have been eliminated, the reprocessing of waste from the building is done by grinding and separating the paper present on both sides of the board. If the plaster itself is indefinitely recyclable, the presence of paper on both sides of the board causes a negative impact on the manufacturing process and must therefore be eliminated as much as possible. Some Saint-Gobain factories now reach 30% recycled content, mainly from construction or demolition plaster waste. Develop new business models 2.2.4 and value chains In many countries, Saint-Gobain is developing services for its customers which include waste and construction waste retrieval. Collected glass is recycled and used to make glazing or glass wool. Likewise, plaster waste collected can be recycled to make new plasterboards. The presence in a country of distribution activities adds local synergies through the option of installing collection points close to sales outlets, making it easier to recycle customers’ waste. All of these services are provided directly by Saint-Gobain companies or in partnership with third-party companies. The principles of the circular economy differ in each country and region of the world. These developments depend on a great variety of factors, such as modes of consumption, infrastructure and the industrial fabric, the legal context and the technical and logistical conditions of waste management. Saint-Gobain organizations in the countries spearhead or take part in initiatives with local stakeholders: industrial initiatives involving an area, customers, and local authorities or communities. As part of their professional channels, Saint-Gobain's "Gypsum" and "Flat Glass for Buildings" entities have signed commitments with the French public authorities on the recycling of waste plaster and glass. Moreover, Saint-Gobain Distribution Bâtiment France has been organized to take back waste from the same types of construction materials, products and equipement that it sells to professionals since January 1, 2017, becoming the leading private network of collection points for construction site waste. In its CSR roadmap, Saint-Gobain Distribution Bâtiment France has included a pillar on construction site waste management. Since 2019, the Group has launched its I-LOOP project, supported by the European Union through its LIFE funding program. This project aims to contribute to gradually recovering glass wool waste generated on building or demolition sites, which currently goes to landfill. It offers an innovative solution for closed loop recycling, that can transform waste into a high-quality secondary raw material that is used to manufacture new glass wool. The project aims to offer building industry players new value chains to recycle glass wool in France, Benelux and part of Scandinavia, which will be a cost-effective alternative to landfill. The industrial sectors are also developing new services linked to the circular economy. The Ceramics Business Unit has created the Valoref activity, specialized in the treatment and recovery of refractory brick waste. The recovery of waste is carried out mainly during the repair or reconstruction of glass furnaces. A global waste management service is offered to customers upstream of furnace repair or reconstruction sites. Valoref ensures the collection, treatment and recovery of waste from the sites. Around two-thirds of the waste collected is recycled in the refractory production chain. The other recovery circuits are the manufacture of construction materials such as mortars or tiles, and other industrial additives. In 2021, 36,150 tons of refractory waste were managed by Valoref.