corporate social responsibility report · part 2: group social and environmental responsibility –...

2019REPORT

CORPORATE SOCIAL RESPONSIBILITY

CONTENTSEditorial

Part 1: The Monnoyeur Group and its business modelThe Monnoyeur Group and its business model: key figures, positioning and prospects

Part 2: Group social and environmental responsibility – strategic challenges

Part 3 : CSR strategy by main theme

Products, services and business relationshipsTopic 1: Making a commitment to quality and innovationTopic 2: Guaranteeing the health and safety of users and third partiesTopic 3: Maintaining a responsible product life cycleTopic 4: Maintaining good supplier relationships and guaranteeing responsible purchasingTopic 5: Guaranteeing ethical behaviour in our business practices

OperationsTopic 6: Guaranteeing workplace health and safetyTopic 7: Reducing energy and GHG emissions and tackling the climate challengeTopic 8: Reducing the production of waste and pollution and preserving water resourcesTopic 9: Ensuring local acceptance and continued responsible growth

Human and intellectual capitalTopic 10: Attracting talent and retaining key skillsTopic 11: Maintaining social dialogue to ensure employee well-beingTopic 12: Promoting diversity and fighting discrimination

Methodological note

Correspondence with Global Reporting Initiative (GRI) disclosures

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Monnoyeur Group — CSR Report — 3


EDITORIALOur group is both a family business and an international player, and is active in a wide range of different spheres, including construction, public works and agriculture, not to mention our activities in energy and handling. All of these areas are characterised by significant requirements for transition and adaptation towards sustainable, digitised models.In this ecosystem, our primary goal is to support contractors as much as we can by providing them with effective, sustainable and productive equipment that has been carefully designed by the brands we represent (in particular Caterpillar and John Deere) and by offering them a service in line with the highest industry standards. Our Group also offers innovative, competitive solutions that meet our customers’ energy requirements and supports them in confronting the challenges associated with energy transition, through our subsidiary Eneria. Providing support for companies in the construction and industrial sectors in their digital transformation is also one of our key solutions to the current challenges faced by our customers, a service we provide through Arkance.

To better meet the needs of our stakeholders, and especially our customers, we have decided to implement a Corporate Social Responsibility (CSR) strategy that will make it possible for the entire Group and its subsidiaries to develop responsibly.This strategy is based around three main pillars:

— Our products, services and business relationships (customer experience, product impacts and business relationships)

— Our operations (health, safety and environmental footprint) — Our human and intellectual capital

These three pillars make it possible to meet the major challenges that we face in pursuing our growth and development strategy. We must all work to achieve them.

Baudouin Monnoyeur

Philippe Monnoyeur

Chairman, Monnoyeur Group

CEO, Monnoyeur Group

THE MONNOYEUR GROUP AND ITS BUSINESS MODEL


Key figures, positioning and prospects

Key figures

Positioning in the value chain

Our strategy

A diversified family Group with a history dating back 100 years, the Monnoyeur Group provides capital goods for construction, energy production and motorisation, agricultural machinery, and solutions for handling and digitisation of construction. The Group has more than 6,200 employees and its aim is to build complete, innovative solutions that are able to prepare its customers for the challenges they will face in the future.The Group’s strategy for the next five years is to build on its solid knowledge and experience to continue its growth, in particular through development abroad, long-term leasing and innovation.

More than 110 yearsof history and expertise.

GoalIncrease the Group’s leadership in the industrial capital goods market.Diversify the product offer and strengthen the development of the digital offering.

12 countries in Europe,North Africa and Asia.

€2,058 Min 2019.

More than 6,200employees.

Dis

tribu

tion

Tran

sfor

mat

ion

Purchases of ma-chines, engines and spare parts — new and used.

Sale of a complete range of construction equipment for public works.Location: France, Belgium, Luxembourg, Poland, Romania, Algeria.

Exclusive distributor for CATERPILLAR

Sale, lease, support, maintenance, training.

Exclusive dealer for CATERPILLAR

Specialised distributor for CATERPILLAR, MITSUBISHI, CROWN,

MERCEDES UNIMOG, MOL.

Specialised distributor for JOHN DEERE

Specialisation on TRIMBLE and AUTODESK hardware/software products for design and construction.

Sale of a complete range of marine and industrial engines (gas and diesel).Location: France, Belgium, Luxembourg, Poland, Romania, Algeria.

Sale of a complete range of agricultural machines and parts. Location: Romania, Croatia and Hungary.

Lease, purchase and maintenance of forklifts and handling equipment (lifting, rail-road, etc.).Location: France, Belgium, Spain, Portugal and China.

Support for customers in construction and industry in the digital transformation of their operations. Location: France, Belgium, Poland, Romania.

Purchases of hard-ware and software.

Sale, lease, integration, maintenance and IT training.

1 32 4

Consolidate the dealer model— Continue the development of after-sales services and leasing for capital equipment— Gain a foothold in new market segments by adapting and expanding the offer of products and services

Master the digital revolution— Develop the Arkance offering, especially in BIM, and increase the number of offices— Increase the Group’s share of value-added services and own software solutions— Digitise operations

Consolidate the Group’s position internationally— Extend the Group’s offering to high-growth markets (Poland, Romania)— Develop activities in China— Penetrate into new territories

Seize opportunities for external growth — Continue acquisitions of related activities while maintaining a prudent financial policy



Distribution of activities by sector and by geographical area

The companies within the Group are leaders in their respective markets, distributing equipment and services intended for construction and industry. Their product offering is tailored to the usage economy, and supported by a constantly developing digital transformation.

Digital 4%

Agriculture 11%

Handling 14%

Energy 10%

2019 REVENUE: €2,058 M

Distribution of Revenues in 2019

2019 WORKFORCE: 6,204 employees

Capital goods 61%

Agriculture 10%

CRO 1%HUN 0%

CHN 0%POL 12%

ROM 14%

ALG 3%

SPA 1%POR 0%

BEL 11%LUX 1%

NTH 0%

FRA 56%

Digital 6% Head office 1%

Capital goods 48%

ROM 12%

ALG 6%

POR 0%SPA 4%

BEL 7%LUX 0%

NTH 0%

FRA 59%

POL 10%CRO 1% HUN 1% CHN 0%

Handling 22%

Energy 13%

China

Netherlands

BelgiumLuxembourg

Portugal

France

Croatia

Hungary

Poland

Romania

Algeria

Spain



Organisation and governance

Our corporate governance

The Monnoyeur S.A. head office is located in Saint-Denis in France.

Board of Directors:

There are 12 directors on the board, including five who are independent.

Audit Committee:

There are three directors on the Audit Committee. Two are independent and one is a representative of the Monnoyeur family. The primary tasks of the Audit Committee are:

— Examining the financial statements; — Monitoring the internal audit plan and risk management systems; — Monitoring compliance issues (primarily monitoring of the Sapin 2 anti-

corruption mechanism, GDPR personal data protection systems and CSR actions)

Executive Board:

This board is made up of the CEO and business line directors (Capital Goods, Energy, Handling, Agriculture, Digital). This board guides the Group’s medium-term vision and strategic choices.

Structuring of our internal audit actions

In 2019, we implemented a three-year roadmap for the Group’s internal audit activities. This covers a range of projects:

— Risk management, with regular updating and monitoring of the Group’s risk map.

— Definition of a Group-wide internal control framework.In the short term, deployment of the framework and associated controls and monitoring of risk management policies are more closely supervised, with a view to continuous improvement. In the medium term, we would like to structure our audit plan on a multi-annual basis.

— The projects associated with compliance, ethics and governance are described later in this document in the corresponding sections.

In 2019, we started the roll-out of the associated action plans.



Our stakeholders and their expectations

Stakeholders

Customers

Main expectations

• Service quality• Security of equipment• Speed of execution (delivery lead

times, etc.)• Lasting relationships• Ability to innovate• Presentation of a responsible offer• Quality of the products

used (respect for social and environmental issues, especially in terms of purchases that could contain conflict minerals)

• R&D, in particular for Eneria• Innovation, in particular for Arkance• Commitment for 2020 to plant ten trees for each machine

delivered in France (sold or leased)• External ethical charter for 2020

Tools for dialogue and action

Suppliers • Compliance with payment terms• Fair prices• Lasting relationships

• The Monnoyeur Group (Bergerat Monnoyeur/Eneria) and Caterpillar have celebrated a partnership lasting 90 years

• External ethical charter for 2020

Employees • Development of skills• Well-being at work • Working in a secure environment

• Code of ethics and conduct• Procedures and actions for health and safety • Collective agreements in subsidiaries (gender equality, social

dialogue)• E-NPS (Employee Net Promoter Score) for 2020

Public powers • Compliance with laws and regulations

• Tax contribution

• Relationship of trust with the tax authorities

Local communities • Management of nuisance caused by industrial sites (noise, odours, etc.)

• Management of waste created by industrial activities

• Solidarity• Local jobs• Local purchasing

• Skills-based sponsorship programme with Apprentis d’Auteuil and Cultur’Espaces

• Participation in local initiatives (jobs forum, foundation, etc.)



Our highlights for the year


2019 was a banner year for the Monnoyeur Group’s business:

► The Monnoyeur Group (Bergerat Monnoyeur/Eneria) and Caterpillar celebrated a partnership lasting 90 years

► Bergerat Monnoyeur has now committed to planting ten trees for each machine delivered in France (sold or leased).

► The Group has formally defined its values, to reinforce the sense of unity within the Group and explain what it means to be a Monnoyeur employee in the world.

► A CSR committee has been created to drive the Group’s responsible commitments at the highest level. It meets regularly (four times a year).

► The Group, and more specifically its subsidiary Arkance, has acquired four companies, which will provide a range of opportunities and especially the capability to expand into a new territory – the Netherlands – and to consolidate its position in Belgium and France.

► The IPSO ‘Ethics and Responsibility Caravan’ has run 24 discussion sessions in the three countries where the Agriculture business line is active.

► Aprolis is involved in consideration of a portfolio of products that are less carbon-intensive – in line with European obligations associated with reducing greenhouse gas emissions by 2030 and 2050. The subsidiary has completed its prototyping phase on systems enabling the use of natural gas for vehicles (NGV) or biogas for its thermal machinery, as these technologies have a small carbon footprint.

Our values

Our values are upheld and shared by the entire Group and are an indicator of our excellence and our daily commitment to our customers.

RespectThe Group is proud of the commitment shown by its employees and the trust placed in it by its customers, and is focused on providing a sustainable basis for its internal and external relationships, anchoring them in the idea of Respect, and thus recognising the human, intellectual, social and moral value of its employees, customers and partners.

Entrepreneurial spiritThe Group’s development is based on entrepreneurial spirit and a desire to innovate, which is a source of creativity internally and an effective lever for growth of our market share and revenue in the long term.

CourageTo anticipate and manage our future developments and support our customers in their markets, the courage to face the coming challenges is something that must drive the actions of each of the Group’s employees, in managing both customer relationships and internal teams.

Fellow-feelingThe Group’s strength lies in its historical ability to foster dialogue among employees at all levels and at all times. United by a real love of what they do and a desire to serve the customer, those employees share key moments in a sense of fellow-feeling, thus guaranteeing an effective, sympathetic corporate dynamic.


GROUP SOCIALAND ENVIRONMENTAL RESPONSIBILITY – STRATEGIC CHALLENGES


GROUP SOCIAL AND ENVIRONMENTAL RESPONSIBILITY – STRATEGIC CHALLENGES

Presentation of the CSR context

CSR Governance

CSR context and issues

CSR strategy

CSR is a subject managed on a Group-wide basis by the Internal Audit, Legal and Human Resources Divisions.The CSR Committee, introduced in 2019 and managed by the Company Secretary, determines the strategy and action plans and ensures that they are monitored.The Group Human Resources Division coordinates the HSE (Health, Safety and Environment) managers within the subsidiaries, who are responsible for the operational deployment of action plans and the achievement of the associated targets.

The level of risk then determines how it is managed. — Major risks: these are addressed on the basis of a policy and actions

monitored by the Audit Committee and the General Management of the Group and the Executive Boards of the subsidiaries.

— Significant risks: these are addressed on the basis of a policy and actions but are managed by the subsidiaries.

— Minor risks: these are handled and monitored but are not covered by policies or costed targets.

Our CSR goals

The activities of the Monnoyeur Group are subject to regulatory and societal constraints relating to CSR issues. Indeed, the ‘Sapin II’ law (against corruption) and the GDPR (General Data Protection Regulation) have made it possible to structure the Group’s approach on ethical issues. The environmental regulations have also had an impact on all of the Group’s operations. The drafting of the Non-Financial Performance Statement (NFPS) enables the Group to shape and consolidate the CSR approach, which already exists but has so far not been formally defined.

In terms of market pressures, the Group and its subsidiaries must deal with increasingly exacting customer expectations in relation to CSR. This growing customer focus is demonstrated by the incorporation of responsible criteria into calls for tender and undertakings made when contracts are concluded.

To address these various requirements, the Group prepares a report detailing the policies, actions and principal outcomes implemented and achieved by all of its subsidiaries.

In 2019, to continue with the structuring of the process, we formally established a reporting schedule, an organisational chart of responsibilities and a process for monitoring CSR actions throughout the year. In particular, we formalised the definitions of our indicators in order to obtain uniform data across all subsidiaries.

Building the strategy The CSR strategy has been developed following an assessment of the major risks and opportunities to which the Group and its operations are exposed. This assessment measures the severity of these risks and the probability that they might occur in order to highlight those that are significant. The assessment methodology has been validated by the senior and operational managers of the Group and its subsidiaries.

This analysis has established three levels of significance for these risks and opportunities:— Major risks— Significant risks— Minor risks

Each of the risks identified is associated with a specific approach. Following the analysis of our value chain, Group CSR risks have been identified and divided into the following three thematic areas:— Products, services and business relationships— Operations— Human and intellectual capitalFor each of these risks, the monitoring policies and action plans have been detailed in the remaining sections of this report.

Products, services and business relationships

Operations

Human and intellectual capital

Making a commitment to quality and innovationGuaranteeing the health and safety of users and third partiesMaintaining a responsible product life cycleMaintaining good supplier relationships and guaranteeing responsible purchasingGuaranteeing ethical behaviour in our business practices

Guaranteeing workplace health and safety Reducing energy and greenhouse gas (GHG) emissions and tackling the climate challengeReducing the production of waste and pollution and preserving water resourcesEnsuring local acceptance and continued responsible growth

Attracting talent and retaining key skillsMaintaining social dialogue and ensuring employee well-beingPromoting diversity and fighting discrimination



Products, services and business relationships Operations

Human and intellectual capital

Making a commitment to quality and innovationMajor risk

Ensuring that our customers are satisfiedDeveloping our ability to innovate for Eneria and Arkance

Guaranteeing the health and safety of users and third partiesSignificant risk

► Aiming for zero accidents for users and third parties (RIF < 1) ► RIF: Recordable Injuries Frequency

Maintaining a responsible product life cycleSignificant risk

► Ensuring end-of-life management for our engines (machines, oils, WEEE, etc.)

► Ensuring that machines are reused and maintained through main-tenance and reuse of parts

► Limiting emissions from our machines during use

Maintaining good supplier relationships and guaranteeing responsible purchasingMajor risk

► Ensuring that our suppliers share our values ► Ensuring that the minerals we use do not come from conflict zones ► Monitoring and limiting the presence of substances of concern in

our products

Guaranteeing ethical behaviour in our business practicesSignificant risk

► Eliminating corruption and ensuring that personal data are pro-tected

Guaranteeing workplace health and safetyMajor risk

► Reducing accidents and promoting a zero-accident culture

Reducing energy and GHG emissions and tackling the climate challengeMajor risk

► Limiting energy consumption and GHG emissions

Reducing the production of waste and pollution and preserving water resourcesMajor risk

► Limiting waste generation and ensuring that residual waste is processed properly

► Avoiding any form of pollution in the water, the air or the ground

Ensuring local acceptance and continued responsible growthMinor risk

► Ensuring close cooperation with the authorities and local popula-tions

► Integrating HSE and CSR criteria into our external growth actions

Attracting talent and retaining key skillsMajor risk

► Ensuring that our sites are attractive for the relevant employment markets

► Ensuring the development of the employee skills required to guarantee the quality of our services

Maintaining social dialogue and ensuring employee well-beingMajor risk

► Guaranteeing active social dialogue and the actions required for the well-being of our employees

Promoting diversity and fighting discriminationMinor risk

► Promoting diversity and fighting discrimination ► Ensuring that 25% of our employees are women in 2025

On a more cross-Group basis, to support our commitments, we would like to ensure that our CSR strategy is sustainable over time and apply an approach based on continuous improvement.• Developing our responsible offerings by monitoring the CSR issues linked to

our business lines so that we can position ourselves on innovative CSR pilot projects.

• Engaging our stakeholders more: we would like to be able to engage more as a responsible actor within the sector, especially by speaking at conferences.

• Organising our CSR communications so we can use them as a point of difference: first, we will build our portfolio of media – including this CSR report and the website – and we will then make the messages uniform so that everyone has the appropriate tools to communicate our approach. We would then like to organise assessments by CSR rating agencies – to certify our performance.


CSR STRATEGY BY MAIN THEME

France Belgium / Luxembourg Romania Poland Algeria

BM France Eneria France

BM Belgium

BM Romania

Eneria Romania

BM Poland

Eneria Poland

BM Algeria

2019 NLS

47 39 52 82 N/D 37 N/D 60



Topic 1: Making a commitment to quality and innovation

Definition

Quality and innovation make it possible for the Group to stay ahead of the competition. The two main challenges are the following:

— Maintaining high service quality in business lines relating to the leasing and use of machines (Bergerat Monnoyeur, IPSO, Aprolis and Eneria) to ensure maximum customer satisfaction.

— Ensuring world-class technological expertise while maintaining a significant ability to innovate in the areas of energy (Eneria) and industrial digital systems (Arkance) to offer services that are constantly being improved.

Performance

The Group’s main achievements in terms of quality are:

Eneria (France, Romania and Belgium) and Arkance are ISO 9001 certified.

Existing policies and commitments

The Group’s quality commitments concern all subsidiaries, because a high level of quality must be guaranteed in all cases in operations and for machines.

Commitments to innovation relate primarily to Eneria, which has a robust policy of innovation in line with Caterpillar’s strategic development areas. R&D works are centred on engine power, improving engine efficiency, reducing pollutant emissions and developing machine connectivity.

Innovation commitments also concern Arkance, which has a significant need for differentiation through innovation because of its market positioning. In 2020, our Arkance solutions will, for example, integrate the Stratus and Works-Manager platforms. These systems monitor project progress using dynamic 3D visualisation of customer sites – obtained by drone-driven topographical surveys, which make it possible for customers to transmit the information on projects to the machines and to perform remote maintenance.

Performance

(1) Full-time Equivalent(2) Research Tax Credit

The following actions have been implemented:

► To guarantee a quality process based on excellence, most subsidiaries (Arkance, IPSO, Eneria) are ISO 9001 certified. They monitor complaints and customer satisfaction. In 2019, complaints did not relate to specific issues that required particular attention. Certification is accompanied by demanding quality procedures and manuals integrated into internal audit programmes.

► In terms of innovation, Eneria uses four FTE1 dedicated to development and innovation projects within its industrial division teams. De plus, la filiale possède un budget dédié, notamment, à la réalisation de The subsidiary also has a budget dedicated, in particular, to the creation of demonstrators, pilots, specific tests, analyses or works entrusted to third parties. For its part, Arkance has developed numerous RTC2 projects.

Future actions

A range of actions are still to be completed, with a view to continuously improving performance:

► Introduction of consolidated monitoring at Group level of certification rates, rates of returns, and customer complaints and satisfaction.

► Introduction of consolidated monitoring within Eneria and Arkance of days spent on R&D.

► Introduction of monitoring of emerging trends with positive CSR impacts in our sector:

► Appointment of a monitoring manager per business line ► Identification of sources of information by business line (sector

associations, newsletters, etc.) ► Introduction of a platform for discussion of this issue

France Belgium / Luxembourg Romania Poland Algeria

BM France Eneria France

BM Belgium

BM Romania

Eneria Romania

BM Poland

Eneria Poland

BM Algeria

RIF (Recordable Injuries Frequency)

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

2,87 1,75 1,95 1,81 2,12 1,95 0,75 0,73 1,53 1,47 1,58 1,70 N/D 0,83 2,03 0,51



Topic 2: Guaranteeing the health and safety of users and third partiesDefinitionThe health and safety of users and third parties is a major issue for operations associated with the supply, maintenance and leasing of vehicles and machinery (Bergerat Monnoyeur, IPSO, Aprolis and Eneria). Indeed, they represent one of the core expectations of our customers, which need reliable equipment to maintain their trust in our Group.

Existing actionsA range of actions have already been put in place to guarantee the health and safety of users and third parties:

► Safety instructions are provided to customers in all cases within all subsidiaries to prevent incidents and accidents.

► Incidents and accidents (number, frequency and severity) are monitored within each subsidiary and each accident is investigated, with a corrective action plan imposed if necessary.

► Each entity concerned monitors and reports its RIF to Caterpillar and the Group’s performance level is taken into consideration in commercial dealings.

► The Group takes part in Caterpillar dealer seminars, during which accidents are addressed in all cases.

► Safety certifications have been obtained by certain sites, in particular MASE1 certification for Aprolis. Bergerat Monnoyeur and Eneria have obtained equivalent certification (VCA) while Bergerat Monnoyeur, Eneria and Arkance Romania have been awarded a safety label by a local certification system.

► Monitoring and consolidated management of RIF for the Group have been introduced.

Performance

Good local practices

► Safety certifications have been obtained by certain sites, in particular MASE certification for Aprolis. Bergerat Monnoyeur has obtained equivalent certification (VCA). At the same time, Bergerat Monnoyeur Romania, Eneria Romania and Arkance Romania have been awarded authorisation on safety issues by a local certification system.

Future actions

► Each subsidiary will organise seminars or meetings to share experience among subsidiaries, which will make it possible to pool good safety practices and capitalise on expertise acquired.

► The Bergerat Monnoyeur offices in Dunkirk and Rouen are currently undergoing MASE certification.

(1) Corporate Safety Assurance Manual



Topic 3: Maintaining a res-ponsible product life cycle

DefinitionEnvironmental and social impacts on the life cycle of products primarily concern energy supply operations (Eneria) and the agents (Bergerat Monnoyeur, IPSO and Aprolis). However, the Group is not responsible for designing Bergerat Monnoyeur, IPSO and Aprolis products and certain working points have been referred by our main suppliers, Caterpillar and John Deere. These are discussed in the chapter on responsible procurement.

Existing policies and commitmentsEneria strives to ensure the appropriate end-of-life management of products placed on the market. Our subsidiaries would also like to extend the lifetime of equipment through maintenance, reconditioning and reuse of parts while ensuring that CO2 emissions during use are low.

Existing actions

Several actions intended to ensure a responsible product life cycle (use, end-of-life) have been implemented:

► Eneria has established a partnership with Paprec Recyclage to ensure the collection and recovery of its end-of-life products. These operations are undertaken in two situations: when Eneria replaces an old installation or decommissions an old installation without replacing it.

► Eneria also recovers oils from its customers through a partnership with Chimirec, a French waste reprocessing company.

► Units operating on biogas have been deployed as a test phase at Aprolis (France) and Eneria (Poland).


Several actions intended to ensure a responsible product life cycle (use, end-of-life) have been implemented:

► Aprolis in France has developed innovative systems for its range of gas thermal machines enabling the use of NGV (Natural Gas for Vehicles) and/or biogas resulting from organic fermentation. The prototyping phase has been completed. Aprolis has also entered the certification phase for this two-model range. Aprolis may then commence industrial production (planned for the end of the first half of 2020).

► The Aprolis French site at Calais has reconditioned 163 machines in response to 163 requests. 800 other machines have been reconditioned at French sites.

Future actions ► In 2020, the Group is planning to deploy biogas units across all relevant

subsidiaries. ► Ultimately, we would like to perform an analysis on products purchased

or leased on the basis of responsible criteria to be determined (energy consumption during the usage phase, anticipated lifetime, recyclability, etc.) so that we can promote products with the most responsible life cycles in all cases.

(1) Material Safety Data Sheet (form containing data relating to the properties of chemical substances).

Performance

12 subsidiaries out of 18 concerned have introduced anti-pollution systems10 subsidiaries out of 18 concerned have introduced reporting on reconditioned parts and machines



Topic 4: Maintaining constructive supplier relationships and guaranteeing responsible purchasing

Definition

Supplier relationships represent a strategic matter for the entire Group. We work primarily with Caterpillar, John Deere and Trimble, and the main issues for these companies are the health and safety of the users of our machines. The main concerns in our relationships with other suppliers are focused primarily on complying with the principles of good conduct and limiting the environmental and social impacts of their activities. It is important for the Group to be familiar with the practices of our suppliers in our value chain, so that we can combat the use of conflict minerals, pollution, child labour and modern-day slavery.The issues surrounding prevention of corruption in the purchasing process are covered in the corresponding section.

► Standardised, adaptable CSR criteria have been rolled out in order to develop a new system for selection of suppliers. The entities concerned are the following: Aprolis in France and Spain, Bergerat Monnoyeur, Eneria and Arkance Romania. In the Romanian subsidiaries, the criteria are: ISO 9001 or ISO 14001 certification, and environmental or special authorisations (in particular those linked to waste or to certain business lines). They apply to purchasing families that are sensitive in terms of CSR. These elements are considered in the assessment process, for which a floor value has been set for contracting with suppliers.


► Within Aprolis France, supplier framework contracts now incorporate clauses on the safety of employees, compliance with instructions intended for the user customer, compliance with applicable guidelines and standards (especially in terms of the environment), compliance with the REACH regulations, prevention of concealed employment, and specific requirements in relation to recycling. These clauses concern all major suppliers (purchasing revenue above €1 million). An assessment table for suppliers on HSE issues has been prepared for integration in 2020.

► In 2019, Bergerat Monnoyeur France presented its responsible purchasing approach to the CSR Committee in order to share good practices. The main actions implemented by Bergerat Monnoyeur France are integration of CSR criteria into supplier selection (ISO 9001 or ISO 14001 certification) and development of a charter for ethical internal and external purchasing. The subsidiary also presented its action plan for 2020: systematic signature of the charter, e-learning for employees about the charter and assessment through Ecovadis (the benchmark CSR assessment platform) for principal suppliers.

Future actions

The principal objectives are to reinforce existing actions. Efforts must still be made to enable the following:

► Anticipating customer expectations by integrating traceability of conflict minerals into contracts and supplier relationships for all subsidiaries.

► Monitoring the percentage of our suppliers with ISO 9001 and 14001 certification for all subsidiaries.

► Introducing reporting on the measures implemented to monitor the presence of hazardous substances in purchases (such as an audit on compliance with the RoHS Directive).

► Finally, we would like to formally define a responsible purchasing policy, on the basis of the following steps:

► Definition of the essential CSR standards for a Monnoyeur supplier ► Adaptation of the ethical purchasing charter by including the Monnoyeur

Group’s essential CSR standards ► Formal definition of the CSR criteria considered in assessing suppliers

before selection and their importance in decision-making ► Integration of the signing of the ethical purchasing charter into the

contracting process ► Definition of the actions to be implemented for at-risk suppliers in terms

of the Group’s CSR principles (CSR audits, monitoring of KPI to be defined, etc.)


Our policy on suppliers is formally stated in our code of ethics and conduct, which is intended to ensure compliance with our minimum requirements by our suppliers across all Group subsidiaries.

Existing actions

Several actions have already been introduced to ensure long-lasting relationships with our suppliers:

► A code of ethics and good conduct was introduced in 2016. This code promotes integrity, honesty and respect in relationships with third parties. Each employee in each of the Group’s subsidiaries therefore has a duty to ensure that the Group’s commercial partners and suppliers comply with ethical and good conduct principles in the performance of their activities.

► Undertakings in terms of responsibility have been made with Caterpillar through the signing of its supplier code of conduct.

► The Group and its subsidiaries respond to each customer enquiry on the traceability of minerals using the technical knowledge of suppliers. The aim is to trace the potential presence of conflict minerals.

► The French subsidiaries collect and analyse the MSDS for the substances and products purchased.

Performance

12 subsidiaries out of 18 recover MSDS1

(1) Material Safety Data Sheet (form containing data relating to the properties of chemical substances).



Topic 5: Guaranteeing ethical behaviour in our business practices

Definition

Business ethics covers issues such as the prevention of corruption, money laundering, anti-competitive practices, fraud and the protection of personal data. It is a component of customer and supplier interactions for the entire Group.

To demonstrate our commitment and our determination to introduce a benchmark corruption prevention programme, we have had our system assessed by an external third party. We have been assessed as compliant with areas for improvement.

Several actions have also been implemented to roll out our data protection programme:

► In relation to data confidentiality, the Group has created a map of personal data held by all subsidiaries and built a corresponding register. Existing procedures have also been reviewed and centralised.

► We have developed a policy for the storage, archiving and deletion of personal data and worked to improve our cybersecurity plan.

► We have appointed GDPR officers in all subsidiaries. ► We have begun fulfilling our duty to provide information by sending letters

to customers, suppliers and employees about the personal data we hold.The code of ethics and good conduct covers the following subject areas:

► Compliance with laws and regulations. ► Ethics and integrity in the performance of Group operations (relationships

with customers and suppliers, public procurement contracts, compliance with anti-corruption and anti-money laundering rules, compliance with competition rules, prevention of conflicts of interest, respect for the environment, financial transparency and truthfulness of information).

► Protection of Group assets (protection and use of Group assets, confidentiality of information).

► Respect for and protection of people (workplace health and safety, prevention of discrimination and harassment, protection of privacy and personal information).

► Implementation of the code and alert mechanism.

Future actions

A range of actions are still to be completed: ► Updating of the code of ethics and good conduct to strengthen our policy

on sensitive transactions (gifts, business travel, invitations, etc.). ► Monitoring of indicators of results relating to deployment of training and

alerts received through the ethics portal. ► Improvement of the system for assessing the risk map. ► Updating of the Group’s code of ethics and good conduct and

development and sharing of a code of conduct for suppliers. ► Introduction of assessment questionnaires for principal suppliers and

customers to estimate how they manage their own risks relating to business ethics.

► Formal definition of our personal data management policy.


The Sapin II law and the GDPR are intended to eliminate all forms of corruption and ensure that personal data are protected. In this new regulatory context, measures and programmes have been put in place to ensure that the Group and its subsidiaries comply with those texts.

Existing actions

Numerous actions have been undertaken to introduce an anti-corruption programme.

► A code of ethics and good conduct has been distributed to all employees in the languages of each country (Group and subsidiaries).

► An analysis has been performed, for Group subsidiaries, to identify the positions most exposed to the risks of corruption. A hierarchy of positions has been formally established, highlighting that senior management and then managers, vendors, buyers and technicians are the Group’s first priority, followed by back-office functions. A training plan has been deployed as a result, in French and English, for these two groups.

► Business partners (customers, intermediate suppliers) have also been analysed in terms of their corruption risks, and three separate groups have been identified. Each group is subject to a verification procedure specific to its level of risk, including the following processes: collection of public information, integration of an anti-corruption clause, etc.

► We have also introduced a comprehensive ethics portal on the Group’s website (available in English only) to flag up suspect situations. This provides access to the anonymous alert system. The mechanism is also disseminated through the code of ethics and good conduct.

► An annual audit of accounts has been introduced within each subsidiary to detect potential fraudulent operations.

► A disciplinary regime specific to the issues surrounding corruption has been established.

Performance

The programme to ensure compliance with the Sapin II law has been deployed in more than 90% of Group subsidiaries.The programme to ensure compliance with the GDPR has been deployed in more than 70% of Group subsidiaries.

Monnoyeur Group — CSR Report — 20 Monnoyeur Group — CSR Report — 20

OPERATIONS


Management of the HSE function

The HSE (Health, Safety and Environment) function covers all issues relating to operations. Management and general policies in terms of health, workplace safety and limiting environmental impacts are therefore handled by this function.

These issues are managed at three levels: ► At head offices of subsidiaries, where the HSE managers in the subsidiaries

have introduced procedures and clear management for HSE issues; ► Locally, where the targets and action plans determined by the subsidiaries

are cascaded to the sites; ► At Group level, by the subsidiary managers, who share their good practices

as part of a health, safety and environment committee created by the HSE managers per activity. In 2019, the Group wishes to extend this committee beyond the French-speaking companies and to introduce Group-wide management of these issues.

The HSE managers of the entities perform four internal audits each year:— Monitoring of contamination;— Safety;— Environment;— SAVPRO1

These audits review and monitor areas associated with HSE management and compliance, with action plans to be implemented by the sites audited.


Group entities (other than Arkance and Bergerat Monnoyeur Romania) have a guide to good HSE practices, which covers objectives and good practices associated with workplace health and safety, contamination and pollution, and waste.

Bergerat Monnoyeur Algeria, Belgium and France, Eneria Belgium, France and Poland and IPSO Croatia, Romania and Hungary have HSE policies developed by their executive management.

(1) Propreté, rangement, organisation

OPERATIONS

France Belgium/Luxembourg Romania Poland Croatia Hungary Algeria Spain Portugal

Aprolis France

Eneria France

BM  France Arkance

BM Belgium Arkance

BM Romania

Eneria Romania IPSO Arkance

BM  Poland

Eneria Poland Arkance IPSO IPSO

BMAlgeria Aprolis Aprolis

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

Number of lost-time accidents

33 30 13 14 36 22 N/D 0 3 6 N/D N/D 0 1 0 1 0 2 N/D N/D 5 6 6 1 N/D N/D N/D 0 N/D 0 12 2 18 11 N/D 0

Frequency rate for workplace accidents (FR)

16 17 14 16 14 9 N/D 0 5 10 N/D N/D 0 4 0 7 0 2 N/D N/D N/D N/D N/D N/D N/D N/D N/D 0 N/D 0 13 2 8 5 N/D 0

Severity rate for workplace accidents (SR)

0,45 0,7 1 1 0 0 N/D 0 0 0 N/D N/D 0 0 0 0 0 0 N/D N/D N/D N/D N/D N/D N/D N/D N/D 0 N/D 0 0 0 N/D N/D N/D N/D


OPERATIONS

Topic 6: Guaranteeing workplace health and safety

Definition

Supplier relationships represent a strategic issue for the entire Group. The level of risk for the Group and its subsidiaries is not uniform. Indeed, workplace health and safety is a major concern for operations involving the handling of machinery or chemical products by employees (Bergerat Monnoyeur, IPSO, Aprolis and Eneria). For Arkance, however, as a service business, the risk is more moderate.


The Group and its subsidiaries share the same goal: zero accidents. This is achieved through risk analysis, prevention, awareness raising, ongoing training, careful monitoring of accidents and the sharing of good practices.

Existing actions

A range of actions have already been implemented in relation to the health and safety of employees:

► Master Risk Assessment Documents (MRAD) have been created for all subsidiaries, and steps are being taken to merge the Bergerat Monnoyeur and Eneria approaches using a common IT system.

► Regular monitoring is performed within each entity by the company doctor. This process includes feedback on risks and the actions in place.

► Workplace safety guidelines are provided in the internal rules of procedure developed for the Group and each subsidiary, and these describe the following key elements: wearing of Personal Protective Equipment (PPE), compliance with the instructions provided (especially for tools), and driving recommendations.

► Prevention guidance is everywhere: at each site, in communications, displayed in workshops, provided by news flashes, 15-minute safety meetings, alerts, training, awareness-raising days, etc.

► The DRIVE OR PHONE application has been installed on the telephones of employees in the following subsidiaries: Bergerat Monnoyeur France, Bergerat Monnoyeur and Eneria Belgium, IPSO Romania and IPSO Hungary. This involves sensors that block access to certain mobile phone applications when vehicles are moving, such as emails or texts.

► Training on psychosocial risks has been provided for French subsidiaries.

Performance


OPERATIONS

Existing actions

The action plans at Bergerat Monnoyeur France are as follows: ► Assignment of at least one clear, accessible target for each employee in

terms of preventing workplace accidents ► Increased vigilance in the training of young recruits ► Introduction of a 6-point HSE programme for each Regional Division

Aprolis: ► Discussions are under way with the elected representatives on the

Workplace Health and Safety Committee (WHSC) on the identification and management of psychosocial risks

Bergerat Monnoyeur Belgium: ► We are preparing for the renewal of VCA certification

Arkance:We are integrating HSE issues, in particular on the subject of workstation ergonomics and monitoring of commuting accidents


► Aprolis France has a three-year HSE plan, from 2019 to 2021. The most important points are reducing occupational illnesses, monitoring musculoskeletal disorders, an ergonomic analysis of administrative workstations, a project on works at height, and continued analysis of work conditions.

► Aprolis France performs dry-run audits as part of its MASE certification. The subsidiary also undertakes regular awareness campaigns, such as the ‘tobacco-free month’ initiative.

► In 2018, Eneria decided to commit to a medium-term approach, with a multi-annual action plan. The ambitious target of achieving a frequency rate below 5 in 2020 was set.

► Eneria France has taken steps to increase the safety of its employees travelling abroad by providing a general booklet containing information about how to conduct oneself. The focus in 2019 was on the wearing of PPE. The subsidiary will continue these actions in 2020.

► For Bergerat Monnoyeur France, the actions resulting from the updates made in 2018 to the risk assessment matrix and following on from those activities included training in proper workplace movements and postures, raising awareness about choosing appropriate safety gloves, the organisation and cleanliness of workspaces, and the wearing of appropriate goggles and face protection. On-site management undergoes specific training and skills follow-up. Ongoing actions that differ from the practice applied in other subsidiaries include the presentation of safety guidelines to visitors, even when they are internal Group visitors, and the cascading of a specific information aid to subcontractors. Bergerat Monnoyeur France has achieved its target of a frequency rate of 10 for 2019 (with a result of 8.7).

► In addition to the approach shared by all Group companies in relation to monitoring workplace accidents, IPSO performs specific internal workplace health and safety audits and inspections.


Aprolis France

Eneria France


BM Belgium Arkance

BM Romania


BM  Poland


BM Algeria Aprolis Aprolis

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

Energy consumption of buildings (MWh)

1 497 3026 1 941 2 010 15 565 15 401 N/D N/D 4 268 4 269 N/D N/D N/D 390 N/D N/D 900 838 N/D N/D 1 049 952 N/D N/D N/D N/D N/D 77 N/D 135 N/D N/D N/D N/D N/D N/D

Vehicle consumption (kilo litres)

1 333 1 303 1 344 1 332 2 093 2 253 N/D N/D 92 598 N/D N/D 216 238 104 107 660 735 N/D N/D 591 658 196 224 N/D N/D N/D 4 N/D 83 N/D N/D N/D N/D N/D N/D

Vehicle GHG emissions (tCO2e)

3 343 N/D 1 810 N/D 4 790 N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D

Scope 1+2 GHG emissions (tCO2e)

3 864 N/D 2 472 N/D 5 967 N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D N/D


OPERATIONS

Topic 7: Reducing energy and GHG emissions and tackling the climate challenge

Definition

The issues of energy consumption and greenhouse gas (GHG) emissions in operations primarily concern physical activities.Arkance is a business with limited impact compared to the other operations.However, all operations are exposed to risks associated with climate change.


The Group and its subsidiaries wish to limit their energy consumption and GHG emissions as far as possible in order to increase efficiency and meet social responsibility objectives.

Existing actions

Various actions have already been implemented:

► Eneria Romania is ISO 14001 certified. ► Energy audits and a review of GHG emissions have been completed

for the French subsidiaries of Bergerat Monnoyeur, Eneria and Aprolis. Energy performance diagnostics have also been completed for Romanian companies (IPSO, Bergerat Monnoyeur and Eneria Romania). An action plan has been prepared on the basis of each of these diagnostics. In the case of Bergerat Monnoyeur France, for example, these action plans concern the integration of a CO2 criterion into the car policy, the provision of training on eco-driving and increased information for employees about monitoring tyre pressure.

► Mobility plans have been set up on 3 pilot sites (Aprolis Créteil, Bergerat Monnoyeur Saint Denis and Eneria, Monthéry). The purpose of this plan is to study the key journeys made by employees in order to propose alternative solutions to individual journeys. The solutions proposed have been the following: the installation of bicycle sheds and the provision of showers and changing rooms, encouragement for carpooling through partnerships with external platforms and the reservation of parking spaces for carpoolers, and the introduction of third-party workspaces at other sites of Group companies.

► More generally, Group companies have put in place systems for videoconferencing and document sharing in order to limit travel by employees.

► An information campaign on eco-action training has been introduced by the Group and its subsidiaries, to encourage employees to opt for responsible practices on a daily basis.


► Eneria France has put in place a detailed action plan dedicated to energy efficiency and reducing GHG:

► Introduction of LED and exterior lighting controller ► Application of the RT2012 thermal building regulation in the Industrial

Division for new buildings ► Implementation of air treatment units in renovated buildings instead of

gas boilers ► Heating turned off at night and during weekends ► Movement detectors in corridors ► Thermal insulation and replacement of windows ► Geolocation of technicians: Bronze Masternaut certificate ► Availability of a group of vehicles for carsharing ► Introduction of a vehicle policy based on rejection of CO2 ► Training in eco-driving ► Use of route optimisation tools

Performance


OPERATIONS

Future actions

A range of actions are still to be completed:

► Introduction of Group-wide monitoring and management of energy emission issues

► Initiation of an analysis of the risks for the Group’s activities and assets associated with climate change

► Commitment to a 2°C strategy for our emissions to bring them into line with the Paris agreement on combating climate change:

► Perform an energy diagnostic on the sites with the highest emissions to identify the main energy efficiency actions to be implemented

► Assess the cost of deploying these actions and the gain in carbon efficiency

► Put in place a programme to reduce emissions ► In 2020, Eneria will be committing to projects with a concrete impact on

managing climate variations through a servicing contract for more than 500 generators with Enedis


Aprolis France

Eneria France


BM Belgium Arkance

BM Romania


BM  Poland


BM Algeria Aprolis Aprolis

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

Hazardous waste (tonnes or litres)

N/D 254 133 139 207 800L N/D N/D N/D N/A 25 16 N/D N/D N/D 13 N/D 12 N/D 15 N/D N/D N/D 117 N/D 34 N/D N/D N/D 5 N/D 6 66 200 63 100 N/D N/D N/D N/D

Metal waste (tonnes)

N/D 4 N/D N/D N/D N/D N/D N/A 126 155 N/D N/D N/D 2 N/D 0 N/D 20 N/D N/D N/D 0 N/D 0 N/D N/D N/D 4 N/D N/D 74 18 N/D N/D N/D N/D

Incidents linked to local pollution (over three years)

0 0 2 1 N/D 0 N/D N/D 0 0 N/D N/D N/D 0 N/D 0 N/D 0 N/D N/D N/D 0 N/D 0 N/D N/D N/D 0 N/D 0 N/D N/D N/D N/D N/D N/D


OPERATIONS

Topic 8: Reducing the production of waste and pollution and preserving water resources

Definition

The Group’s activities associated with machinery and energy (Eneria, Bergerat Monnoyeur, IPSO and Aprolis) are those primarily responsible for the production of waste and pollution. Several types of waste are created by the commissioning and recycling of construction machines. Water consumption and emissions to water have a minimal impact for the Group as a whole.Arkance is a service business and is not therefore a source of risks of this type.


The objectives of the Group are to limit waste generation and ensure that residual waste is processed properly. Our goal is to avoid all forms of soil and effluent pollution.

Existing actions

A range of actions associated with managing waste have been undertaken:

► The management of waste is subject to dedicated procedures for all Group subsidiaries (classification, management method and internal monitoring). Furthermore, waste is managed in all cases within each company through contracts with specialised suppliers (except for Arkance).

► In the same way as for workplace accidents, environmental incidents and accidents are monitored and analysed by all Group subsidiaries and corrective action plans are put in place where necessary. For example, a fuel spillage into the environment due to incorrect assembly was followed up with training for personnel in Belgium.


► Eneria undertakes campaigns to raise awareness about recycling and the reuse of certain products.

► Bergerat Monnoyeur Algeria has put in place an improved waste sorting procedure to enable better waste recovery.

Other specific pollution-related actions have also been developed: ► The subsidiaries and sites comply with the applicable legislation and have

varying levels of control of this issue. However, an HSE audit performed on the entire Group has shown that the sites had correct storage systems for equipment, hazardous products and waste.

► Suitable bins for storing hazardous products have been installed to limit pollution risks for Aprolis.

Future actions

Certain additional actions are described below: ► Implementation of a Group-wide procedure covering contamination risks

and safety procedures for external third parties, and the integration of that procedure into the internal audit schedules.

► Implementation of Group-wide monitoring of waste removal and of criteria relating to Installations Classified for Protection of the Environment by site.

Performance


OPERATIONS

Topic 9: Ensuring local acceptance and continued responsible growth

Definition

Monnoyeur Group sites can generate pollution through their industrial activities (Bergerat Monnoyeur, Eneria, Aprolis and IPSO), and this factor is driving the Group to strengthen its actions in terms of local acceptance. Eneria France is currently the only site located within a residential zone rather than an industrial area. The Group’s development is also based on external growth, and it must therefore incorporate its social responsibility criteria as much as possible in the analysis of potential target operations.


Ensuring close cooperation with the authorities and local populations.Integrating HSE and CSR criteria into our external growth actions.

Existing actions

In France, CSR and HSE criteria have been integrated into external growth operations. These criteria make it possible to target the acquisition of more responsible businesses in cases of external growth. These businesses will prove a better fit with the Group’s values and culture and will enable more responsible growth.

Future actions

The systematic integration of CSR and HSE into external growth operations is a focus of development.

Monnoyeur Group — CSR Report — 28 Monnoyeur Group — CSR Report — 28

HUMAN AND INTELLECTUALCAPITAL


Aprolis France

Eneria France


BM Belgium Arkance

BM Romania


BM  Poland

Eneria Poland Arkance IPSO IPSO BM Algeria Aprolis Aprolis

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

Hours of training per employee trained

14 14 14 29 44 44,43 N/D N/D 89 105 N/D N/D 48 51 14 25 9 84 N/D N/D N/D 69 N/D 45 N/D N/D N/D 65 N/D 33 75 60 N/D 10 N/D N/D

Total hours of training

13 117 15 445 16 005 15 884 71 609 73 584 N/D N/D 12 693 17 752 N/D N/D 7 169 7 897 948 1 959 11 500 16 734 N/D N/D N/D 27 020 N/D 6 226 N/D N/D N/D 2 089 N/D 500 20 981 22 000 N/D 2 467 N/D N/D

% of total payroll dedicated to training

3 3 2 2 5 5 N/D 1 4 5 N/D N/D 2 2 2 0 2 2 N/D N/D 2 3 2 3 N/D N/D N/D 2 N/D 2 1 1 N/D 1 N/D N/D

Co-opting

N/D 15 9 16 N/D 49 N/D 11 N/D 19 N/D 0 N/D 7 N/D 3 N/D 22 N/D 1 N/D 24 N/D 2 N/D 0 N/D 0 N/D 5 N/D 0 N/D 0 N/D 0

Average length of service

N/D 15 11 11 12.3 12 N/D 6 N/D 12 N/D 6 N/D 8 N/D 7 N/D 6 N/D 3 N/D 8 N/D 6 N/D 5 N/D 3 N/D 3 7 7 N/D 11 N/D 11


HUMAN AND INTELLECTUAL CAPITAL

Topic 10: Attracting talent and retaining key skills

Definition

The identification, retention and development of talent is one of the core processes put in place by the Group and its subsidiaries. These actions drive the performance and commitment of teams and employees. This issue is crucial for the Group, and we are therefore making its development a priority.


The individual sites are responsible for attracting talent, in line with the constraints of their respective employment markets.Group subsidiaries develop training plans to ensure the development of the employee skills required to guarantee the quality of our services.

Existing actions

Several actions have been implemented to promote the skills development of our employees:

► A fully digital training platform, ‘360 learning’, has been rolled out in almost all subsidiaries in France and abroad (except for Hungary and Arkance). This platform will provide our employees with access to a broader range of training options.

► To increase the Group’s attractiveness, the number of employees co-opted is now being monitored to analyse the effectiveness of the system.

► An indicator for monitoring length of service has already been put in place. ► Exchange programmes with universities and schools have been activated to

generate exposure for the company with younger generations. ► We have organised reporting on the key indicators shown below – with

uniform definitions of indicators across all subsidiaries.


► In 2019, Bergerat Monnoyeur and Eneria Romania developed partnerships with three colleges – supporting 12 students. They also sponsor the IChoose programme, which is designed to develop soft skills in the partner schools.

► Since 2014, and in cooperation with the ‘Apprentis d’Auteuil’ foundation, the Monnoyeur Group has also been involved in a skills-based sponsorship programme intended to provide young people having difficulties with their studies with mechanical skills training that is directly transferable to the working world. In 2019, for the third consecutive year, the Group welcomed nine young people for a two-month pre-training programme at Bergerat Monnoyeur. Following this initial step, the nine individuals were given 16-month professional training contracts. Throughout this process, they will be supported by the foundation and by Group employees. Aprolis has also been involved in the project, awarding professional training contracts to young people.

► Bergerat Monnoyeur France used an external firm to create a talent toolkit in 2019.

► Bergerat Monnoyeur Belgium generates feedback from training. Feedback will be gathered immediately following training sessions. Subsequent feedback following reflection is also collected and used to build team development processes.

► IPSO has recruited 34 apprentices across five sites and has successfully run an internal co-opting system resulting in 53 individuals being co-opted.

► In 2019, Aprolis developed its processes for internal communication and assessment, introducing a cooperative platform with the support of TalentSoft. Our intention is to enrich the experience of our employees by ensuring they have continuous access to all Group opportunities, at a single location, and to transform our assessment processes by supplementing traditional annual interviews with solutions that are dynamic, collaborative and inclusive.

Future actions

We are going to structure employer branding actions to increase knowledge about the business and ensure that applicants have a standardised idea of the experience of being part of the Monnoyeur Group and what it means to work for us:

► Create a unique visual identity for the Group and common communications ► Identify target schools in terms of recruitment and shape communication

actions

Performance



Topic 11: Maintaining social dialogue to ensure employee well-being

Definition

Social dialogue and workplace well-being obviously concern all Group companies. Social dialogue includes all actions that foster communication and understanding among the various components of the Group. It necessarily contributes to the well-being of employees, who are able to say what they think during moments of interaction or through employee representative bodies. We would like all employees to be able to drive the business forward in a way that suits them.

Existing actions

Several actions relating to quality of work life have been implemented in recent years:

► In 2019, the Group signed up to the Monitoring Centre for Quality of Work Life (QWL), which enables us to move forward with other businesses on issues relating to QWL, to share good practices and to propose advances in this area.

► Employee satisfaction has been calculated using surveys in Group companies (excluding Aprolis and Arkance).

► At present, social dialogue primarily takes the form of specific agreements on social dialogue and workplace well-being in all companies in France. In particular, Aprolis and Bergerat Monnoyeur have signed an agreement on social dialogue in France.

► The French entities of all subsidiaries have also introduced individual social audits.

► All Group subsidiaries have introduced social events (such as barbecues) and site improvement works (renovation of cafeterias) based on their local needs.

Focus – supporting the CulturEspaces project

The Monnoyeur Group is eager to strengthen its societal commitment and wishes to enable its employees and their families to benefit from and be involved in this process. The Group therefore decided to work alongside the Fondation CulturEspaces as part of an educational and cultural sponsorship programme over the last two years. The Art en Immersion project, supported by the Monnoyeur Group, is intended as a mechanism for increasing awareness about arts and cultural heritage. The project makes it possible to develop the general cultural understanding of children (from six to ten years of age) and drive their creativity through artistic activities.Through this sponsorship programme, the Monnoyeur Group aims to develop the number of children benefiting from the project, especially in Seine-Saint-Denis, Seine-et-Marne, Val de Marne and Essonne, where some of our companies are based. The Group’s employees are able to spread information about this initiative to schools and associations in their local areas, and to hospitals and paediatric centres or centres for children with disabilities, so that this new educational programme can be extended to cover their children and those of their relatives. By becoming involved in this project, employees can choose to promote a social commitment backed by the Group and to support their own children in the process of artistic discovery.Boosted by this success, the Art en Immersion project is developing, with the Group’s support, at the Carrières des Lumières in Baux-de-Provence and will soon be developing in Aquitaine with the future Bassin des Lumières in Bordeaux.


The Group aims to maintain active social dialogue, making it possible to retain talent and ensure the well-being of its employees. Aprolis has also concluded a company agreement on the professional development of its personnel representatives.

Performance

In 2017, surveys were undertaken in the various Group companies. The objective was to measure the level of engagement of employees and the conditions they needed to succeed. Within the Group, 77% of employees said they were proud to belong to the Bergerat Monnoyeur Group. These surveys are an opportunity for the Group to understand the expectations of its employees and to engage them in the day-to-day life of the business.


Aprolis France

Eneria France

BM  France Arkance BM Belgium Arkance

BM Romania


BM  Poland

Eneria Poland Arkance IPSO IPSO BM Algeria Aprolis Aprolis

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

Absenteeism rate (%)

3 3 4 4 4 4 N/D 3 6 5 N/D N/D 13 2 10 2 2 3 N/D 0 N/D 4 N/D 6 N/D N/D N/D 4 N/D 1 3 4 N/D 1 N/D 0

Turnover (%)

8 10 17 16 14 15 N/D 18 9 9 N/D 6 15 16 18 22 11 21 N/D 0 8 7 14 9 N/D 8 N/D 13 N/D 30 12 17 N/D 4 N/D 0

Voluntary turnover (%)

N/D N/D 6 7 4 5 N/D 12 N/D 6 N/D 6 N/D 15 N/D 18 N/D 10 N/D 0 N/D 4 N/D 5 N/D 8 N/D 8 N/D 15 10 14 N/D N/D N/D N/D




► Bergerat Monnoyeur and Eneria in Belgium have developed a workplace well-being policy supported by the CEO.

► These two entities also perform annual psychosocial risk assessments, as does Bergerat Monnoyeur France.

► IPSO ensures that dialogue takes place at all its sites in the various countries where it operates, in particular during end-of-year meetings. One of the goals of these meetings is to ensure that communication is adequate and dialogue is possible for the subsidiary.

Future actions

► Deployment of actions on the right to disconnect. ► Consolidated monitoring of the rate of engagement and satisfaction of

personnel. ► Definition of objectives on the issue. ► Introduction of a ‘pedibus’ at the head office in Saint-Denis to enable

employees to leave together for public transport and to address feelings of insecurity.

Focus - E-NPS

From summer 2020, the Monnoyeur Group is intending to introduce an E-NPS (Employee Net Promoter Score) in all companies and all countries to enable measurement across the Group at the same time, two or three times a year, of how likely it is that employees would recommend the Group as an employer.

These measurements will be taken using a digital platform with a maximum of three questions, with the primary question relating to recommendation of the Group. The two other questions may be more open, focusing on key issues at the corresponding point in time.

The principle is the same as for the NLS that we measure for our customers: scores of 9 and 10 are positives, scores of 6 to 8 are alerts and scores below 6 indicate the existence of detractors.

Irrespective of the score given, we will open a window requesting that the respondent indicate the reasons for the response and any proposals for improvement.

This quick, simple survey will be provided in each language, available for each country and/or company and consolidated at Group level. We will therefore be able to publish our results each year and measure our progress.

In line with this regular mechanism, we will be incorporating a more general, more detailed survey every two years, which will enrich our knowledge in this area.

Performance


Aprolis France

Eneria France


BM Belgium Arkance

BM Romania


BM  Poland


BMAlgeria Aprolis Aprolis

2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019

% women in the workforce

18 17 20 21 14 15 N/D 27 14 14 N/D 26 21 23 18 17 23 24 N/D 0 19 18 26 23 N/D 48 N/D 25 N/D 13 13 11 N/D 20 N/D 14

% women executives

N/D 15 15 15 18 20 N/D 31 N/D 19 N/D 0 N/D 29 N/D 25 N/D 22 N/D 0 N/D 2 N/D 3 N/D 4 N/D 13 N/D 16 N/D 11 N/D 1 N/D 0

% women on the Executive Board

0 0 0 0 10 25 N/D 0 0 0 N/D 0 40 40 40 40 16 14 N/D N/D 17 17 0 0 N/D 25 N/D N/D N/D N/D 0 20 N/D 0 N/D 0

% disabled workers

N/D 3 2 N/D 2 2 N/D 0 N/D 0 N/D 0 N/D 0 N/D 0 N/D 0 N/D 0 N/D 0 N/D 1 N/D 0 N/D 0 N/D 0 0 1 N/D 1 N/D 0



Topic 12: Promoting diversity and fighting discrimination

Definition

The prevention of all forms of discrimination, combined with the promotion of diversity, is an important issue within the Group. Indeed, the sector in which the Group operates is characterised by a very limited presence of women, which weakens the balance within our teams. The principal challenges are promoting our trades among women, integrating workers with disabilities into our companies and finding a balance in our age pyramid.

Performance

100% of French employees covered by collective agreements on equality.


The Group and its subsidiaries wish to improve diversity in all forms. The Group has made a commitment by signing a diversity charter containing undertakings on six points:

► Increasing awareness about diversity among our directors and managers ► Promoting the application of the principle of non-discrimination ► Encouraging representation of French diversity ► Communicating our commitment to our employees ► Including diversity as part of social dialogue ► Evaluating progress achieved on a regular basis

Existing actions

A range of actions have been implemented to promote equality and diversity: ► In 2016, the Group distributed a code of ethics and good conduct in each

of its subsidiaries, including a specific chapter on preventing discrimination and harassment.

► The internal rules of procedure for all Group subsidiaries state that harassment and sexist behaviour is not permitted. Any employee responsible for such actions is subject to disciplinary action.

► An agreement on gender equality has been rolled out to all French subsidiaries.

► A policy for recruitment of disabled workers has been introduced and rolled out across most subsidiaries.


► Aprolis France signed an agreement in 2018 on gender equality in the workplace and the prevention of discrimination. In a company that is predominantly male, this covers a range of subjects: hiring (in order to encourage more female applicants), professional promotion, remuneration (to ensure fairness) and work-life balance. In early 2019, Aprolis signed a diversity charter. That charter was rolled out over the year. Aprolis also held elections for all of its employee representative bodies in 2019.

► Bergerat Monnoyeur and Eneria in Belgium have introduced an agreement on seniors to ensure that their specific issues are addressed in annual interviews.

Future actions

Our planned actions are the following: ► Reinforcing actions to promote equality and diversity, in particular by

proposing training in preventing discrimination, to provide real support for employees in fighting against stereotypes.

► Continuing the deployment of our policy on recruitment of disabled employees.

Performance



Our consolidated indicators

The definitions of the KPIs are provided in the corresponding sub-sections and their scope is described in the methodological note.

Topic

Topic 1

Topic 6

Topic 7

Topic 7

Topic 8

Topic 8

Topic 10

Topic 10

Topic 10

Topic 11

Topic 11

Topic 12

Topic 12

KPI

NLS1


Vehicle consumption (litres)

Energy consumption of buildings (kWh)


Metal waste (tonnes)

Co-opting

Average length of service


Turnover (%)


Women in the workforce (%)

Disabled workers (%)

Valeur 2018

N/D

126

5 286

8 014

2

199

N/D

N/D

154 022

11

N/D

17

N/D

Valeur 2019

N/D

96

6 116

9 475

1

173

N/D

N/D

161 651

14

N/D

17

N/D

Valeur 2019

53

96

7 534

20 337

1

202

175

11

199 953

14

7

18

1

(périmètre comparable)


MONNOYEUR GROUP

Methodological note

Introduction

The content of this chapter on the Monnoyeur Group’s sustainable development and CSR activities has been prepared by Internal Audit, with the cooperation of support functions such as the Purchasing and Human Resources Departments and the Group’s subsidiaries.

All of the information – qualitative and quantitative data - has been collected and consolidated as part of a dedicated process. This section has been reviewed by Aca Nexia, appointed as an independent third-party body in application of the Order of 19 July 2017 (Order No 2017-1180) and Decree No 2017-1265 of 9 August 2017.

Reporting principle

All of the data stated (indicators) are taken from various internal reporting systems. The indicators considered to be relevant are defined in reference to the Global Reporting Initiative (GRI). Certain indicators are not currently available on a consolidated basis or have not been considered pertinent for reporting. In such cases, they are not mentioned.

Reporting scope

This report covers all Group subsidiaries in France, Belgium, Luxembourg, Romania, Poland, Algeria, Croatia, Hungary, Spain and Portugal. China and the countries that joined the Group in 2019 – the Netherlands – are excluded. The report therefore covers 98% of the Group’s workforce (100% for Bergerat Monnoyeur, Eneria, IPSO and MIS, 98% for Aprolis, 93% for Arkance and 56% for SITECH). In 2020, the Group will endeavour to unify the approaches applied by the subsidiaries and bring these countries into the Group reporting. The Group also undertakes to comply with the principles laid down by the ILO and the OECD.

Data collection

Each division is responsible for the information produced. The NFPS is based on several types of data:

— Corporate indicators managed and collected by a specific department within the Human Resources Division;

— Societal indicators monitored directly by the divisions concerned and then sent for the report.

— Environmental indicators monitored directly by the divisions concerned and then sent for the report.

All data are consolidated by Internal Audit.

Given the nature of our operations, we believe that the issues of food waste, prevention of food poverty, animal welfare and a responsible, fair and sustainable food system do not represent major CSR risks and do not therefore justify discussion in this annual report.


MONNOYEUR GROUP

Topic

Topic 6

Topic 10

Topic 7

Topic 11

Topic 8

Topic 12

Topic 1 Topic 10

Topic 7

Topic 11

Topic 8

Topic 12

Topic 10

KPI



Energy consumption of buildings (kWh)


Metal waste(tonnes)

% disabled workers

NLS Average length of service

Vehicle consumption (litres)

Turnover (%)


% women in the workforce

Co-opting

2019 value

In France: Aprolis, Eneria, BM, Arkance In Belgium: Eneria, BMIn Romania: BM, Eneria, IPSOIn Poland: BM, EneriaIn Croatia: IPSOIn Hungary: IPSOIn Algeria: BM, EneriaIn Spain: AprolisIn Portugal: Aprolis

In France: Aprolis, Eneria; BMIn Belgium and Luxembourg: BM, EneriaIn Romania, BM, Eneria, IPSOIn Poland : BM, EneriaIn Croatia : IPSOIn Hungary: IPSOIn Algeria: BM, Eneria In Spain : Aprolis

In France: Aprolis, Eneria, BM, ArkanceIn Belgium: Eneria, BMIn Romania: BM, Eneria, IPSOIn Poland: BM, EneriaIn Croatia: IPSOIn Hungary: IPSOIn Algeria: BM, EneriaIn Spain: AprolisIn Portugal: Aprolis

In France: Eneria, BM, Arkance, SITECH, MISIn Belgium et Luxembourg : BM, Eneria, ArkanceIn Romania: BM, Eneria, IPSO, ArkanceIn Poland: BM, Eneria, ArkanceIn Croatia: ISPOIn Hungary : IPSOIn Algeria: BM, Eneria

In France: Aprolis In Belgium and Luxembourg : Eneria and BMIn Romania : BM, Eneria, IPSO, ArkanceIn Poland: BM, EneriaIn Croatia : IPSOIn Algeria: BM, Eneria

In France: Aprolis, BM, Arkance, SITECH, MISIn Belgium and Luxembourg : BM, Eneria, ArkanceIn Romania: BM, Eneria, IPSO, ArkanceIn Poland: BM, Eneria, ArkanceIn Croatia: ISPOIn Hungary : IPSOIn Algeria: BM, EneriaIn Spain: AprolisIn Portugal: Aprolis

In France: BM In Belgium and Luxembourg : BM, Eneria In Romania : BM In Poland : BMIn Algeria: BM, Eneria

In France: Aprolis, Eneria, BM, Arkance, SITECH, MIS In Belgium and Luxembourg : BM, Eneria, Arkance In Romania : BM, Eneria, IPSO, Arkance In Poland : BM, Eneria, Arkance In Croatia : IPSO In Hungary : IPSO In Algeria: BM, Eneria In Spain : Aprolis In Portugal : Aprolis

In France: BMIn Belgium and Luxembourg: BM, EneriaIn Romania: BMIn Poland: BMIn Algeria: 50 In France: Aprolis, Eneria, BM, Arkance,

SITECH, MISIn Belgium and Luxembourg: BM, Eneria, ArkanceIn Romania: BM, Eneria, IPSO, ArkanceIn Poland: BM, Eneria, ArkanceIn Croatia: ISPOIn Hungary : IPSOIn Algeria: BM, EneriaIn Spain: AprolisIn Portugal: Aprolis

In France: Aprolis, Eneria, BM In Belgium and Luxembourg : BM, EneriaIn Romania: BM, Eneria, IPSOIn Poland : BM, EneriaIn Croatia : IPSOIn Hungary: IPSO

In France: Aprolis, Eneria, BM, Arkance, SITECH, MISIn Belgium and Luxembourg: BM, Eneria, ArkanceIn Romania: BM, Eneria, IPSO, ArkanceIn Poland: BM, Eneria, ArkanceIn Croatia: ISPOIn Hungary : IPSOIn Algeria: BM, EneriaIn Spain: AprolisIn Portugal: Aprolis

In France: Aprolis, Eneria, BM, Arkance, SITECH, MISIn Belgium and Luxembourg: BM, Eneria, ArkanceIn Romania, BM, Eneria, IPSO, ArkanceIn Poland: BM, Eneria, ArkanceIn Croatia: IPSOIn Hungary: IPSOIn Algeria: BM, Eneria In Spain : AprolisIn Portugal: Aprolis

Scope of consolidated indicators


MONNOYEUR GROUP

Correspondence with Global Reporting Initiative (GRI) disclosuresGeneral elements of the GRI framework

Reference Indicator Chapter Correspondence

102-1 Name of the organisation Our corporate governance

102-2 Activities, brands, products and services Our positioning in the value chain

102-3 Location of headquarters Our corporate governance

102-4 Location of operationsDistribution of activities by sector and by geographical area

102-5 Ownership and legal form Our corporate governance

102-6 Markets servedDistribution of activities by sector and by geographical area

102-7 Scale of the organisation Key figures

102-8 Information on employees and other workersDistribution of activities by sector and by geographical area

102-9 Supply chain Business model

102-10 Significant changes to the organisation and its supply chainOur positioning in the value chain

102-11 Precautionary principle or approach Topic 1

102-12 External initiatives (including charters and principles)Presentation of the CSR context

102-13 Membership of associations (national and international)Presentation of the CSR context

102-14Statement from senior decision-maker (on the relevance of sustainable development for the organisation and its strategy)

Editorial

192-16Values, principles, standards and norms of behaviour (such as codes of conduct and ethics)

Topic 5

102-18 Governance structure (including committees within the governance body) Our corporate governance

102-40 List of stakeholder groups (with which the organisation has initiated dialogue)Our stakeholders and their expectations

102-41 Collective bargaining agreements (percen-tage of employees covered) Topic 11

102-42 Identifying and selecting stakeholders (criteria used)Our stakeholders and their expectations

102-43 Approach to stakeholder engagement Our stakeholders and their expectations

102-44 Key topics and concerns raised Our stakeholders and their expectations

102-45 Entities included in the consolidated financial statements (including reasons for exclusion) Methodological note

102-46 Defining report content and topic boundaries Methodological note

102-47 List of material topics CSR strategy

Reference Indicator Chapter Correspondence

102-48 Restatements of information CSR strategy

102-49 Changes in reporting

102-50 Reporting period Methodological note

102-51 Date of most recent report (where applicable) Methodological note

102-52 Reporting cycle Methodological note

102-53 Contact point for questions regarding the report (or its content)

102-54 GRI content index (‘compliance’ option chosen by the organisation)

Correspondence with Global Reporting Initiative (GRI) disclosures

102-55 GRI correspon