Our 19 priorities - Thermador Groupe

Our key extra-financial figures

Working every day to improve our extra-financial performance, we propose 19 priorities that we are committed to following over the medium-to-long term. They cover four key areas: governance, people, environment and societal.

THE VARIABLE EARNINGS OF OUR CORPORATE OFFICERS AND SUBSIDIARY AND GROUP MANAGERS WILL NOW DEPEND ON THE RESULTS ACHIEVED ON EACH PRIORITY.

Each priority converts into a quantified objective in our consolidated indicators, allowing everyone to follow progress on our extra-financial performance in detail. The chosen milestones of 2025 for the medium term and 2030 for the long term reflect the commitment of Thermador Groupe’s current management, through to the retirement of most of its members.

2022 and 2021 were years rich in progress on our extrafinancial achievements. In 2021, we completed our carbon footprint on all three Scopes and committed to the Global Compact. Through our responsible purchasing charter, we are encouraging our stakeholders to contribute to our sustainable development objectives. The Scope 3 objective has not yet been determined, as current practices differ; we will press on and hope to set our carbon trajectory during FY 2023.

According to Article 8 of Regulation (EU) 2020/852, “every extra-financial undertaking shall include in its consolidated extra-financial statement information on the manner and extent to which the undertaking’s activities are associated with economic activities that may be considered environmentally sustainable under Articles 3 and 9 of Regulation (EU) 2020/852.”

The application of this regulation translates into the following for Thermador Groupe:
- Publication of the share of turnover coming from products or services considered as sustainable: our activity as a distributor is not eligible according to the delegated acts on taxonomy that came into force on June 4, 2021, which leads us to consider a share of eligible turnover of 0% for the period. Some of the products we sell fulfil the criteria for substantial contribution from other eligible sectors and we have undertaken to assess them. The share of turnover is presented under the heading “green turnover”, which is an alternative indicator of taxonomy performance.
- Publication of the proportion of our capital expenditure related to assets considered sustainable: our real-estate company SCI Thely has capital expenditure (construction and renovation of buildings) eligible for taxonomy and represents 53% of Thermador Groupe’s CAPEX. The group’s other capital expenditure is not eligible for the current version of European taxonomy.
- Publication of the portion of our operating expenses that can be considered sustainable: expenses related to the maintenance and upkeep of the buildings are borne by the tenants, Thermador Groupe subsidiaries, but represent an insignificant amount compared to the other operating expenses. The group’s other expenses are not eligible for the current version of European taxonomy

Our 19 medium and long-term priorities

PRIORITIES & OBJECTIVES

INDICATORS		2022 Actual	2021 Actual	Progress	Medium-term objectives	Long-term objectives
GOVERNANCE
1	Attendance rate at the Board of Directors	98.8%	100%		≥ 95%	≥ 95%
2	Participation rate in the AGM	74.1%	71.5%		≥ 68%	≥ 73%
3	Employee ownership	7.0%	7.0%		≥ 8,0 %	≥ 8,5 %
4	Percentage of exposed employees trained in anti-corruption over the last 3 years	96.9%	98,9%		≥ 95%	≥ 95%
HUMAN
5	Professional equality index (x/100)	86	88		≥ 90	≥ 90
6	Women in management positions	41.5%	39%		≥ 40%	≥ 40%
7	Average seniority (years)	9.70	9.68		≥ 8	≥ 8
8	Percentage of permanent employees trained per year (including internal training)	81%	72.1%		≥ 95%	≥ 95%
9	Absenteeism (including long-term sickness)	3.5%	3.4%		< 4%	< 4%
ENVIRONMENT
10	Scope 1 - Direct emissions - vehicle fleet (eq T CO2 per vehicle)	2.69	2.81		< 2.19	< 1.36
11	Scope 1 - Direct emissions - heating and cooling of buildings (eq T C02 per km2)	5.01	6.37		< 5.70	< 4.44
12	Scope 2 - Indirect emissions from energy consumption of buildings (eq T CO2 per km2)	1.03	1.25		< 0.94	< 0.83
13	Scope 3 - Indirect emissions from products and activities (eq kT CO2)	221	211		In progress	In progress
14	Waste from our activities (kg/tonnage received)	22.83	20.28		< 20.71	< 18.72
15	Waste recovery	95.7%	90.7%		≥ 90%	≥ 95%
SOCIETAL
16	Percentage of turnover from rated suppliers	74.1%	17.1%		≥ 50%	≥ 80%
17	Percentage of turnover achieved with ISO 9001 or 14001 certified suppliers	97.4%	80.4%		≥ 85%	≥ 90%
18	Percentage of turnover achieved by ISO 9001 or 14001 subsidiaries	34.1%	32.6%		≥ 70%	≥ 90%
19	Percentage of turnover from suppliers who are signatories to our Supplier Code of conduct or an equivalent charter	85.5%	4.8%		≥ 60%	≥ 80%

: beyond medium-term objectives : hitting medium-term objectives

: below medium-term objectives : ongoing objectives (see p.81) - Eq. T CO2: tonnes of CO2 equivalent

Our 19 medium and long-term priorities

In 2021, the Executive Committee worked to select our 19 key indicators on governance, people, the environment and society. They reflect the group’s desire to be part of a long-term process by structuring its continuous improvement approach around priority issues. It also set the objectives and decided on the action plans to meet them.

The group’s medium and long-term milestones are 2025 and 2030 respectively. This time horizon is reasonable and can be assumed by the group’s current management team, given that the executives in place were born between 1965 and 1968. Our company by-laws indicate an age limit of 69 for operational managers.

These objectives were discussed and challenged in the sustainable development committee and then presented to our Board of Directors.

This work highlighted the need for human resources to carry out these action plans. This led in 2022 to the creation of a sustainable development department at executive committee level.

MANAGING OUR CSR PRIORITIES AND PERFORMANCE

The CSR performance of the Thermador Groupe subsidiaries is the responsibility of the subsidiary CEO. The 19 priorities decided at the level of the executive committee are the result of the consolidation of the performance of our subsidiaries. Each subsidiary works with its management committee to set its own objectives and determine an action plan specific to its subsidiary. Some of our subsidiaries are more advanced than others. The exchange of best practices will make it possible to standardise performance in the medium term. The table of these 19 priorities is drawn up subsidiary by subsidiary and thus enables the subsidiary CEOs to benchmark each other.

These indicators are established on a 100% scope (excluding DPI, a subsidiary acquired on 10/31/2022), with the exception of the professional equality index.

The professional equality index was calculated on a French scope, i.e. 92% of our workforce. The employees of our Belgian, Spanish and Chinese entities, respectively Sodeco Valves, Rousseau SA and the Shanghai representative office, do not fall within the scope of this index. Salary coefficients and salary review policies are very different and mean their data cannot be included. Salaries have been increased this year on all three sites in 2022.

This consolidated CSR performance is presented in Chapter 3.1.8. It is subject to an opinion on the conformity and sincerity of the Extra-Financial Performance Statement by an independent third-party organisation (cf: report in chapter 3.4).

CLARIFICATION OF OUR INDICATORS

For a better reading of these indicators, the following clarifications seem necessary:

Indicator 3: Share of capital held by employees and former employees

The share of capital held by employees and former employees («employee share ownership» indicator) includes shares held directly by employees and former employees and shares held by the group’s mutual fund, FCP Thermador Groupe. Shares held by former executives or by the founders of the group are not included.

Indicator 6: Women in leadership positions

In 2020, women in management positions referred to members of management committees. In 2021 and 2022, the indicator refers to women in executive positions according to article L3111-2 of the ‘French employment code’. Those considered as «executives» are those:
1. who are entrusted with responsibilities the importance of which implies a great deal of independence in organising their time,
2. who are empowered to make decisions largely autonomously,
3. who receive earnings at the highest levels of the earnings systems practised in their company or establishment.
This results in the following classifications for the French subsidiaries according to the applicable industry-wide agreements:
- Wholesale Trade industry-wide agreement: at least IX-1.
- Metallurgy industry-wide agreement: minimum III-B.

Indicator 13: Indirect emissions from our products and activities

The Life Cycle Assessment of our brass ball valve range showed us the wide disparity in the carbon assessment of our products, which led us to postpone the quantification of our reduction commitment on “indirect emissions”. The minimum score for this unmet target was 0%.

Indicator 16: Rated suppliers

For the 2022 calculation, we include suppliers of goods in the scope, but exclude intra-group supplies. These may be considered as rated according to an internal rating grid or according to an external rating, which we will check where appropriate.

Indicator n°19: Percentage of turnover from suppliers having signed up to our Responsible Purchasing Charter or an equivalent one.

For the 2022 calculation, we include suppliers of goods in the scope, but exclude intra-group supplies.