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n GOVERNANCE & ETHICS RISKS Responsible governance Example of action The Group’s shareholder scheme is the guarantee of a comprehensive and sustainable vision of performance. The employee shareholder scheme is reinforced every year to preserve and strengthen this responsible governance. In 2020, 86 % of employees eligible for the employee shareholding plan were shareholders. Ethics & Compliance Example of action In early 2020, under the Transformation Plan and with the goal of establishing a coordinated approach to ethics and compliance, the Group created a Quality, Compliance, and Risks Department. This new department covers corporate quality activities, risk management, internal controls, ethics & compliance, including GDPR compliance. n SOCIAL RISKS Diversity, skill and talent management Example of action In 2020, the Group supported employees by digitalizing its training tools and resources, and now over 600 e-learning modules are available. In terms of equality, the Group has maintained its 90/100 score on the Gender Equality Index and continues to champion diversity by working alongside the Diversidays charity in France to help young people access jobs in the digital industry as part of the DéClics Numériques program. Employee health & safety Example of action During the health crisis, the Group adapted its organization by introducing a Business Continuity Plan. First and foremost, this plan is designed to protect employees through a number of measures, such as protocols for managing people who develop symptoms, the promotion of social distancing measures, and the provision of face masks and hand sanitizer. n ENVIRONMENTAL RISKS Climate change Example of action In 2020, the Supervisory Board approved the Group’s strategy for reducing its environmental footprint in line with the Paris Agreement’s goal to limit global warming to 2°C. Target: 30% reduction in Scope 1 and 2 emissions by 2025 (vs. 2015) and 33% reduction in Scopes 1, 2, and 3 by 2030. This is in addition to a goal of 20% lower water consumption by 2024. Environmental impact of production Example of action The Group has set itself a target of using 25% renewable energy by 2025, which it will achieve thanks to a range of measures, such as replacing gas with biogas, installing biomass boilers and removing fuel boilers, and installing solar panels. n SOCIAL RISKS Responsible purchasing Example of action Since purchasing the ECOVADIS tool in 2019, 219 suppliers (35% of purchasing turnover) have been assessed and cataloged based on the main sustainable development standards: the Global Reporting Initiative, the United Nations Global Compact, and ISO 26000. Lack of product safety Example of action All production and distribution sites have been certified under ISO 9001, ISO 13485, GMP, GDP or have received regulatory COSMOS approval in order to guarantee correct management of the risk of any safety and quality issues in products sent to market. Accessibility of products for patients and consumers Example of action We can ensure a reliable supply chain because nearly all of our pharmaceutical production is located in France. In addition, we favor the use of pharmaceutical active ingredients produced in France or elsewhere in Europe. Around 36% of revenues from the Pharmaceuticals business line comes from products whose active ingredient is produced by the Group itself. Eco-innovation Example of action Innovation in the field of plant-based active ingredients is a major challenge for both of the Group’s two main business lines, given that over a third of its revenues relies on products whose active ingredient comes from plants. In 2020, eight new organic active ingredients or eco-extracts were made and now be used on an industrial scale. Transparent communication Example of action In order to provide transparency over the environmental and social impact of its products, the Group has developed the Green Impact Index, a system for scoring the eco-friendly and socially-responsible design of a cosmetic or family health product, identifying areas for improvement, and helping consumers make more informed purchasing decisions. By September 2021, Pierre Fabre will have scored over 300 products, up from just 40 at the end of 2020. CHALLENGES & STRATEGY 17