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24 INTEGRATED ANNUAL REPORT 2021 - PIERRE FABRE Setting the perfect example with Green Mission Historically highly committed to CSR-related issues, the Group has set its climate ambitions high: playing its part in achieving the +2°C pathway defined by the 2015 Paris Agreement by targeting a 33% reduction in CO2 emissions by 2030 and contributing to the carbon neutrality demanded by the international community in 2050. Bolstered by the Green Mission Pierre Fabre, the Group is applying its CSR commitments to the entire value chain. From its bank finance and eco-friendly and socially-responsible product design, to its pharmacy partners, and even its employees. An innovative tool for measuring environmental and social impact One of the ongoing improvement programs implemented by Green Mission Pierre Fabre since 2019, the Green Impact Index is a system for scoring the environmental and social impact of a cosmetic or family health care product. Each product is assessed on 20 aspects (14 environmental factors and 6 social factors) to give an overall rating of A, B, C, or D. A- and B-rated products are considered to have an eco-friendly socially-responsible design. The robustness and reliability of this methodology have been evaluated and approved by AFNOR. Over 300 products will be rated by the end of 2021. The system will help us prioritize our brand innovation projects and will ensure ongoing evaluation of our product catalog, with the goal of at least 50% of each brand's revenue (excluding MA) coming from products with an eco-friendly socially- responsible design by 2023. This will also provide consumers with objective information about the ‘sustainability’ of our products and their CSR credentials, allowing them to make more informed choices. With over 10 years of experience in product environmental analysis, the Group is a French and European pioneer in environmental labeling; today it is the first company to offer environmental and social ratings for its products. CSR & Financial strategy: common goals The syndicated loan renegotiated by Pierre Fabre in 2020 now incorporates CSR criteria, indicating the confidence that financial partners have in the Green Mission Pierre Fabre and its goals. This syndicated loan includes a bonus-malus mechanism linking the cost of credit to two CSR criteria, namely a 30% reduction in the Group's carbon footprint by 2025 vs. 2015; and the introduction of an innovative eco-friendly socially-responsible design concept that must account for 50% of each brand's revenues (excluding MA) by 2023. Pierre Fabre and its financial partners will conduct an annual appraisal of the progress made. If one or both of the targets are not met, a penalty will be applied to internal offsetting measures or paid to external partners. SOCIOENVIRONMENTAL IMPACT “We are delighted to have succeeded in linking our syndicated loan to our CSR performance. This unprecedented linking for the Pierre Fabre group shows that financial strategy and CSR strategy can complement and reinforce one another. It also illustrates the trust that our financial partners have placed in Pierre Fabre and its Transformation Plan.” Eric Gouy, Administrative, Finance and Legal Senior Vice President