Risks and challenges CSR


Risks and challenges

Major Corporate Social responsibility

Our ecosystem

Thermador Groupe operates in an environment made up of actors having an influence on its business, strategy, values and ambitions.
In all our economic and social relations, we prioritise exchange and transparency and pay particular attention to the needs of our contacts.
Each player in our ecosystem is treated as a partner with expectations. We derive motivation from our exchanges with them as we move forward together.
Thermador Groupe identifies five key stakeholders:
• Customers, whether distributors or consumers. Their purchases allow the group to survive economically.
• Employees, who contribute hard and soft skills and know-how.
• Investors, shareholders and bankers, who provide the capital we need for investment, stability and growth.
• Suppliers, who provide the goods and services that are crucial to our business.
• Civil society through the public authorities, local authorities, associations, and schools with whom we work.


Presentation of our ecosystem

We have many stakeholders who influence our activities and our strategy in terms of societal and environmental responsibility, at three levels:


Level 1: They are crucial to the existence of Thermador Groupe.

Level 2: Their influence is significant to major Thermador Groupe projects or activities.

Level 3: Their impacts are limited or occasional for a one-off project or activity of the group.


Our methodology

From our value chain, we have identified the key risks and challenges faced by Thermador Groupe. We have selected the risks and challenges from analysis of their existing materiality, pertinence and severity further to financial risk analyses.

When our business has a positive impact on the environment, the approach continues and the benefits of the activity are highlighted. Conversely, when our activity has a negative impact on the environment, we explain how the Group can contribute to reducing it by modifying its practices or minimising the environmental impact through carbon offset initiatives. The information presented below concerns consolidated Thermador Groupe companies on December 31, 2021, i.e. 100% of perimeter, as in 2020. For 2019, the information presented does not include data from the following companies: Etablissements Edouard Rousseau (acquired on 31/12/2018), Rousseau SA (acquired on 31/12/2018), Distrilabo SA (acquired on 31/12/2019), and Thermacome SA (acquired on 31/12/2020).

MAJOR RISKS AND OPPORTUNITIES

The major risks and opportunities outlined below have been classified by combining their importance for Thermador Groupe and for stakeholders.


This materiality matrix on the risks and issues that are important to both Thermador Groupe and its stakeholders is reflected in our business model as presented above. They are also reflected in the performance indicators that we monitor, enclosed herewith:

Responsible Supply Chain

RISK / OPPORTUNITY


DEFINITION


PERFORMANCE
INDICATORS MONITORED


Human rights and
working conditions

Environmental impact

Risks: Thermador Groupe and its subsidiaries could see their legal liability and their image compromised because of a supplier’s non-compliant practices that affect human rights or environmental standards (child labour, forced labour, health and safety, toxic emissions, etc.).

- Percentage of turnover from rated suppliers. - Percentage of turnover from suppliers having signed our Supplier code of conductor equivalent. - Percentage of sales from suppliers with ISO 9001 and/or 14001 certification. - Scope 3.

Compliance

RISK / OPPORTUNITY


DEFINITION


CHAPTERS / SUB-CHAPTERS


Corruption and antitrust
practices

Risks: : Thermador Groupe and its subsidiaries with their presence internationally could fall foul of anti-corruption or other similar laws in the course of their business or down the supply chain. This could damage brand image and open them up to financial sanctions.

- Percentage of sales achieved with rated suppliers.
- Percentage of employees trained in anti-corruption measures over the last three years.


Data protection

Risks: Given the high level of digitalisation of its activities, Thermador Groupe could infringe legal data protection provisions (GRDP). This could lead to financial sanctions and harm to Thermador Groupe’s image.

- Number of actions monitored by our Data Protection Officer according to GDPR

Staff development and safety

RISK / OPPORTUNITY


DEFINITION


PERFORMANCE
INDICATORS MONITORED


Talent management

Risks: Our specialised distribution businesses are not attractive to the new generations of technicians or engineers who are keen on new technologies and industrial design. Often confused with simple trading, our atypical position between distribution, design and installation makes recruitment more difficult.

Opportunities: We need to attract and retain talent by giving meaning to our projects and sharing our values. Without this, the risk is greater instability amongst our staff, with negative consequences for operational efficiency, quality of service to customers and financial performance.

- Percentage of employees trained including internal training. - Turnover rate manpower. - Average seniority (in years).


Gender Equality

Risks: Any unfair treatment between men and women within the group would be immediately identified because of our determined policy on transparency of earnings.
This would immediately demotivate 34.4% of our employees and break the current agreement with damaging consequences for operational efficiency, service quality to customers and financial performance.

- Percentage of women in management positions. - Percentage of women on the Board of Directors and on the Executive Committee.


Working conditions and
safety at work

Risks: The employees of Thermador Groupe and its subsidiaries could be exposed to work-related accidents, especially as our downstream logistics are internalised.
Opportunities: The risks are analysed and identified within the framework of the safety policy document [document unique], thus enabling prevention and reducing the risk of work-related accidents and musculoskeletal disorders.

- Absenteeism rate. - Frequency rate of workrelated accidents. - Severity rate of workrelated accidents.

Environmental impacts of our business

RISK / OPPORTUNITY


DEFINITION


PERFORMANCE
INDICATORS MONITORED


Energy efficiency

Greenhouse gas
emissions

Water management

Opportunities: Many of the products sold by Thermador Groupe’s subsidiaries contribute to reducing energy and water consumption. The high degree of specialisation of our sales companies makes them very innovative in this area. Improved energy efficiency in our buildings can generate substantial savings.

Risks: Compliance with increasingly stringent thermal and sanitary regulations is becoming more and more complicated, while non-compliance is increasingly sanctioned.

Opportunites: The treatment of grey water in single-family homes is one of our specialities. The regulations have favoured the expansion of the market. Energy renovation is supported by the public authorities with financial aid (energy saving certificates and MaPrimeRenov’ grants).

- Water consumption.
- Scope 1 audit
- Scope 2 audit


Environmental impact
of products
and packaging

Risks: The products marketed by Thermador Groupe and its subsidiaries consume packaging. Upstream transport, even if it is by ship, and the distribution of our products via road transport are high carbon intensity activities. A development of our business without these negative impacts being controlled and compensated for would increase our carbon footprint. Our performance in this area depends on our ability to support our suppliers in choosing packaging that has less impact on the climate. Our incoming transport methods must evolve towards lower-carbon means of transport.

Opportunities: Changes in regulations should encourage us to innovate in terms of packaging and offer our customers a packaging range that is in line with their CSR approach.

Chapter 3.3.2.2

Risks: Some of the products sold today are difficult to recycle. They could suffer from this defect. Poor management of our waste would be extremely badly perceived by our teams, who are increasingly sensitive to this issue.


Environmental footprint of products and packaging

RISK / OPPORTUNITY


DEFINITION


PERFORMANCE
INDICATORS MONITORED


Environmental footprint
of products and
packaging

Risks: The products sold by Thermador Groupe and its subsidiaries consume a lot of packaging. Upstream transport – even maritime – and the distribution of our
products using road transport are high-carbon-intensity activities. If business continues to develop without these impacts being controlled and offset, the group’s carbon footprint would worsen. To make progress in this area, we rely to a large extent on our suppliers.
Opportunities: Changing regulations must encourage us to innovate in terms of packaging and help us differentiate ourselves from the competition.


CSR organisation and governance

A devolved governance structure

Corporate Social Responsibility (CSR) has always been at the heart of our values. Our management teams and employees have always readily adopted these ideas by taking initiatives and placing such concerns at the heart of our social dialogue. Our devolved CSR organisation has progressed considerably over the last three years. The challenge is to maintain the dynamics of this devolution by giving a voice to all, employees, managers and directors alike.

At the beginning, cross-departmental groups were set up in our subsidiaries to respond to the expectations expressed by our employees through our quality-of-life-at-work survey in 2017. In order to better coordinate the initiatives taken in our subsidiaries. we saw the need for the Thermavert group. Its role is to exchange information on the initiatives and projects carried out in the subsidiaries and to coordinate the various actions.
CSR is a key topic in our subsidiaries through their management committees. Their role is to lead, motivate and provide staff with the wherewithal to carry out their missions in the social and environmental fields.

In 2020 we created a Sustainable Development Committee, Mathilde Yagoubi, independent director, now chairs this committee. Laurence Paganini and Olivier de la Clergerie, independent directors, are members. Three permanent guests attend the meetings. Its general mission is to assist the Board of Directors in monitoring issues relating to Corporate Social Responsibility.

The Executive Committee is where decisions are made. We set the sustainable development targets and agree on the action plans to be implemented to achieve them. It is also an information-sharing platform on initiatives taken in the subsidiaries to best utilise the experiences of others.

The Board of Directors challenges the Executive Committee on its Corporate Social Responsibility strategy. Board members monitor the progress of the action plans and, at Board level, share the best practices identified through their experiences in the context of their professional responsibility outside our Group.



Board of Directors

Actors

Board of Directors

Roles and means of action

- 5 independent directors.
- 5 Board of Directors meetings in 2021 with each agenda item on the work of the Sustainable Development Committee.

Sustainable development committee

Actors

Sustainable development committee

Roles and means of action

- 3 independent directors including the chairwoman, Mathilde Yagoubi.
- 3 permanent guests, including two Executive Committee Members (Patricia Mavigner CEO of Thermador Groupe and Yves Ruget, DG of Thermador) and an employee representative (Nicolas Klein, QSE technician at Sferaco).
- 3 meetings in 2021.

Executive Committee

Actors

Executive Committee

Roles and means of action

- 16 Comex members and 2 leaders.
- 2 full-day meetings on our CSR strategy and sustainability goals.

Thermavert, our cross-departmental group

Actors

Thermavert, our cross-departmental group

Roles and means of action

- 3 meetings in 2021.
- 22 employees including two Executive Committee members (Patricia Mavigner and Christophe Arquillière).
- Achievement 2021: deployment of the sustainable mobility plan within the Group.

Subsidiaries’ management committees

Actors

Subsidiaries’ management committees

Roles and means of action

- 16 management committees.

Our employees in the subsidiaries

Actors

Our employees in the subsidiaries

Roles and means of action

- 9 CSR committees within our subsidiaries.
- 23 meetings were organised in 2021 to deal with operational issues around the environment.



CSR and earnings


2021 heralded the integration of CSR criteria into the variable earnings system for executive directors.
The variable earnings of Chairman and CEO Guillaume Robin and Deputy CEO Patricia Mavigner are based on social, environmental and governance criteria. In 2021, these criteria will represent 25.9% and 15.4% of their variable compensation respectively.
In 2022, the Earnings Committee proposes to move to a single indicator: the rate of achievement of the Thermador Group’s "Sustainable Development" roadmap. The roadmap is based on key quantifiable extra-financial criteria relating to governance, human, environmental and societal issues. They comprise the 19 indicators presented in chapter 3.1.9.