Our 19 priorities - Thermador Groupe

OUR KEY EXTRA-FINANCIAL FIGURES

We have chosen 19 mid- and long-term priorities

Corporate Social Responsibility (CSR) has always been at the heart of our values and concerns, and has been since 1968. In 2012, for the first time, we talked about our CSR approach in our annual report and began to describe the initiatives and achievements of our employees and management teams in the areas of governance, the environment and social responsibility.

In 2021, the Executive Committee selected 19 key indicators that reflect our commitments and the Group’s desire to be part of the long term by structuring its continuous improvement approach around priority issues. The indicators are based on four key areas: governance, people, the environment and society. The 2025 and 2030 horizons chosen reflect the commitment of the current management of Thermador Groupe through to the retirement of most of its members. These objectives have been discussed and challenged by the Sustainable Development committee and presented to our Board of Directors.

Each priority is translated into a quantified objective and tracked in our consolidated indicators, enabling everyone to monitor changes in our extra-financial performance.

The variable earnings of our corporate officers and subsidiary and group managers will now depend on the results achieved on each priority.

✣ 2021 to 2023 were rich in progress on our extra-financial achievements.

✣ In 2021, at the same time as setting our 19 key priorities, we completed our carbon footprint for all 3 Scopes and signed up to the Global Compact. By deploying our responsible purchasing charter, we are encouraging our stakeholders to get onboard with our sustainable development objectives.

✣ In 2022, we created a Sustainable development department at Executive Committee level and published our first sustainable sales figures. Our retail business was not eligible under the delegated acts on taxonomy which came into force on June 4, 2021, resulting in 0% eligible turnover for the period. However, as some of the products we sell validate the substantial contribution criteria of other eligible sectors, we have undertaken to evaluate them, constituting an alternative taxonomy performance indicator.

✣ Thermador Groupe falls within the scope of the European Green Taxonomy (Regulation (EU) 2020/852). In 2023, we published our first eligible sales figures aligned with the new regulation, meaning we have our first contribution to the transition to a circular economy targets, through the sale of spare parts, repair and retrofit. We are also publishing our eligible and aligned capital and operating expenditure for our building acquisition and ownership activities, through our subsidiary Thely.

Another important step was the new target we have set for reducing our Scope 3 carbon emissions and mapping our exposure to physical climate risks.

The resources committed to implementing the transition plans for the Group and its subsidiaries, ensuring its extra-financial performance and, ultimately, the company’s long-term viability, are of various kinds: training at all levels, which is essential to a successful fulfilment of the exercise, earnings of dedicated teams, external support and tools. They are presented in the Extra-Financial Performance Statement.

PRIORITIES & OBJECTIVES

INDICATORS		2022 ACTUAL	2023 ACTUAL	ACHIEVEMENT	TARGETS 2025	TARGETS 2030
GOVERNANCE
1	Attendance rate at the Board of Directors	98,80%	95,20%		≥ 95 %	≥ 95 %
2	Participation rate in the AGM	74,10%	76,30%		≥ 68 %	≥ 73 %
3	Employee ownership	7,00%	6,70%		≥ 8,0 %	≥ 8,5 %
4	Percentage of exposed employees trained in anti-corruption over the last 3 years	96,90%	98,70%		≥ 95 %	≥ 95 %
HUMAN
5	Professional equality index (x/100)	86	89		≥ 90	≥ 90
6	Women in management positions	41,50%	42,90%		≥ 40 %	≥ 40 %
7	Average seniority (years)	9,7	9,6		≥ 8	≥ 8
8	Percentage of permanent employees trained per year (including internal training)	80,80%	96,40%		≥ 95 %	≥ 95 %
9	Absenteeism (including long-term sickness)	3,50%	5,50%		< 4 %	< 4 %
ENVIRONMENT
10	Scope 1 - Direct emissions - vehicle fleet (eq T CO2 per vehicle)	2,69	2,58		< 2,19	< 1,36
11	Scope 1 - Direct emissions - heating and cooling of buildings (eq T C02 per km2)	5,01	3,95		< 4,56	< 3,82
12	Scope 2 - Indirect emissions from energy consumption of buildings (eq T CO2 per km2)	1,03	0,75		< 0,81	< 0,44
13	Scope 3 - Indirect emissions from products and activities (eq kT CO2)	22,83	22,97		< 2 %	< 17 %
14	Waste from our activities (kg/tonnage received)	22,83	20,28		< 20,71	< 18,72
15	Waste recovery	95,70%	99,40%		≥ 90 %	≥ 95 %
SOCIETAL
16	Percentage of turnover from rated suppliers	74,10%	89,90%		≥ 80 %	≥ 85 %
17	Percentage of turnover achieved with ISO 9001 or 14001 certified suppliers	87,40%	90,20%		≥ 85 %	≥ 90 %
18	Percentage of turnover achieved by ISO 9001 or 14001 subsidiaries	34,10%	65,10%		≥ 70 %	≥ 90 %
19	Percentage of turnover from suppliers who are signatories to our Supplier Code of conduct or an equivalent charter	85,50%	92,10%		≥ 85 %	≥ 90 %

: 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 COMMITMENTS AND 19 MEDIUM AND LONG-TERM PRIORITIES

Our commitments revolve around 3 major areas:

✣ The health, development and fulfilment of our staff.
✣ Protecting the planet, through our commitment to the climate, water resources and the circular economy.
✣ Raising awareness and cooperating with our partners in the value chain.

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.

The Group’s medium and long-term milestones are 2025 and 2030 respectively. This time horizon can be assumed by the Group’s current management team, given the ages of the executives in place. 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 Unit 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. It is 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. Sharing best practice will help to standardise performance. 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 31/10/2022) and reviewed twice a year.

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

INDICATOR 3: Share of capital held by employees and former employees.
This indicator includes shares held directly 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 5: Equality in the workplace.
The index is calculated using France as a basis, i.e. 90% of our workforce. The employees of our Belgian, Spanish and Chinese entities (Sodeco Valves, Odrea Spain and China) are not included in the scope of this index. Their salary classifications are very different and so their data cannot be included. For the three sites, however, all salaries were increased during the year.

INDICATOR 6: Women in leadership positions.
Since 2021, this indicator is consisted of women in management 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: IX-1 minimum. Metallurgy industry-wide agreement: minimum III-B.

INDICATORS 11 and 12: Scopes 1 and 2 for carbon emissions.
We have upped our carbon targets for Scope 1 and 2 emissions linked to the heating, cooling and energy consumption of our buildings: -40% for gas consumption and -65% for electricity consumption by 2030, taking 2021 as the base year.

INDICATOR 13: Indirect emissions.
As announced last year, we have set ourselves a target for reducing our Scope 3 emissions: a 17% reduction in intensity by 2030, compared to a 2022 reference year: total Scope 3 CO2 emissions divided by total product tonnage.

INDICATOR 16: Rated suppliers.
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. In 2023, we raised our 2025 and 2030 targets to 80% and 85% respectively.

INDICATOR 19: Percentage of turnover from suppliers having signed up to our Responsible Purchasing Charter or an equivalent one.
In the 2023 calculation, we include our suppliers of goods, excluding intra-Group suppliers, as well as our general service providers (packaging, handling equipment, temporary staff). In 2023, we raised our 2025 and 2030 targets to 85% and 90% respectively.