Bureau Veritas : Informations complémentaires 2020 sur la RSE (en anglais)

This document presents additional information on Bureau Veritas 2020 Corporate Social Responsibility that are not included in Bureau Veritas 2020 Universal Registration Document nor in Bureau Veritas Non-Financial Statement nor in Group policies presented in Group website.

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Bureau Veritas 2020 - Additional CSR information

CONTENTS

1- Materiality issues

2 Policy influence

3 Human Rights

1. Philanthropy
2. Supply chain management
3. Human Resources

7- Risk Management and Emerging Risks

8- Environment

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Bureau Veritas 2020 - Additional CSR information

1- Materiality issues

1.1 Materiality matrix

To better define its priorities and adapt its resources and investments in an appropriate manner, Bureau Veritas updated its materiality matrix in 2020.

Two groups of people, representing Bureau Veritas internal and external stakeholders, worked to rank the level of materiality of each of the main CSR risks and opportunities:

• The first group is the CSR Focus committee,with eight independent members, comprising clients from different industries, CSR experts, representatives from civil society (associations, NGOs, etc.), investors and non-financial analysts. It outlined its expectations in terms of Bureau Veritas' CSR policy, and it assessed the nature and critical importance of non-financial risks and opportunities, especially in terms of impacts on the environment and people.
• The second group is the CSR Steering committee, with representatives from the Legal Affairs & Audit, Human Resources, Strategy, Purchasing, and Health & Safety, Security & Environment departments.

Key topics were identified in a three-steps process:

• An inventory of cross-cutting issues was drawn up;
• Major issues were identified;
• The importance of these issues was measured and ranked on a scale from 1 (insignificant issue) to 4
  (extremely significant issue) based on two criteria: "importance for Bureau Veritas" (assessed by the CSR Steering committee) and "importance for stakeholders" (assessed by the CSR Focus committee).

The ranking considers 4 criteria:

1. Issues have an impact on Bureau Verita bottom line, on the environment and on social dimension
2. Purely financial and operational issues are excluded
3. Issues are within Bureau Veritas sphere of influence
4. Issue materiality covers internal and externa factors

16 topics were identified and organized into four themes illustrated in the diagram below (Operational excellence, Human capital Environment protection and Sustainability services). CSR Focus and CSR Steering committees' members rated each of the 16 topics on a scale from 1 to 10. The average values of each group member ratings were calculated and reported in the attached diargrama.

Compare to the previous materiality matrix, dated 2018, the main changes are:

• New risks: Mergers and acquisitions, Market changes, Certificate counterfeiting.
• Higher materiality: Climate, Environmental protection, ESG services and Human Rights.

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Bureau Veritas 2020 - Additional CSR information

Additional information on our main non-fiancial risks and opportunities can also be found in section 2.2. of Bureau Veritas 2020 Universal Registration Document.

1.2 Most material issues

Five most material issues were identified:

1. Ethics: It is the 1st Bureau Veritas absolute that gives confidence and trust to our clients and the society
2. Health & Safety: Protecting our people against sanitary crisis and work-related accidents is Bureau Veritas 2nd absolute
3. ESG services: They provide to our clients the support theyr need towars a responsible and sustainable economy
4. Climat: Despite Bureau Veritas small impact on climate, it is our priorities to reduce our carbon footprint
5. Inclusion: Gender equality and minority inclusion are part of our priorities to reinforce our social responsibility

1.3 Long term targets

The Following five indicators were selected to monitor our action for the above five priorities. They are be disclosed quarterly. 2025 long-term targets were set using 2019 as a reference year.

1.4 Executive compensation

Bureau Veritas top management compensation includes a variable part linked to these five indicators: Safety, Gender equality, Human capital development, Climate and Ethics.

This process applies to Bureau Veritas CEO, Excom members and Vice-Presidents. It reprenstes more than 130 persons.

For these people, CSR objectives are set using the above material issues and indicators. Their weight in the bonus scheme is around 10% of the total annual variable compensation.

2- Policy influence

The "Policy influence" topic is covered by the Group Code of Ethics (Charitable donations, Sponsorship and Political contributions section) which is available on the Group's website and regularly updated, most recently in 2020. The latest update involved a change in writing style and the inclusion of many practical examples, intended to make the Code of Ethics easier to read, understand and apply. The Bureau Veritas Code of Ethics is available in 25 languages it is accessible in the CSR section of Bureau Veritas website: (https://group.bureauveritas.com/sites/g/files/zypfnx196/files/media/document/Bureau-Veritas_Code-Of-

Ethics_060820_EN.pdf).

Bureau Veritas is member of several professional and trade associations at Group level and in most of the countries where it operates, and only pays the corresponding membership fees.

The corresponding amounts are reported in the below template. They cover all Group entities worldwide:

Currency EURO

	2017		2018		2019		2020
Lobbying, interest representation or similar	-	€	-	€	-	€	-	€
Local, regional or national political campaigns / organizations / candidates	5 000	€	5 000	€	-	€	-	€
Trade associations or tax-exempt groups (e.g. think tanks)	1 603 563	€	2 699 880	€	3 161 729	€	2 051 572 €
Other (e.g. spending related to ballot measures or referendums)	4 356	€	3 964	€	5 479	€	-	€
TOTAL	1 612 919	€	2 708 844	€	3 167 208	€	2 051 572 €

Trade association membership fees are decreasing compare to 2019. Asia-Pacific-Middle East membership fees decreased significantly due to the covid sanitary crisis and to a new classification differenciating with more precision accreditation and

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Bureau Veritas 2020 - Additional CSR information

association membership fees. In parallel, North America, Latin America and France have significantly reduced their costs while Europe, Marine & Offshore and CPS divisions increased their ones.

The main associations Bureau Veritas is member of are:

	Professional associations	2019 fees
∙	SAFed (Safety Assessment Federation - UK)	135 K€
∙	IACS (International Association of Classification Societies - UK)	100 K€
∙	CMF (Cluster Maritime Français)	71 K€
∙	TIC Council (International Federation of Inspection Agencies - Belgium)	70 K€
∙	AFEP (Association Française des Entreprises Privées - France)	70 K€
∙	FILIANCE (Ex COPREC - Professional association for Inspection companies - France)	50 K€
∙	Enterprise Singapore (Singapore)	49 K€
∙	IIOC (International Independat Organization for Certification)	29 K€

Bureau Veritas doesn't make any contribution or expenditure to political campaigns nor organizations, lobbying, trade associations, tax-exempt entities, or other groups whose role is to influence political campaigns or public policy and legislation. Bureau Veritas doesn't use services of lobbyist nor lawyer to do it.

Six of the associations, Bureau Veritas is member of -TIC Coucil, AFEP, FILIANCE, IIACS, GICAN and CMF- have interactions with policy makers. The percentage of our membership fees allocated to lobbying for specific issues is estimated at 23% according to an estimate communicated by one of these associations. For these 6 associations, it represents 85 k€.

In 2020, the topics the most worked out ware:

• The project of EU taxonomy regulation and its delegated acts for climate change mitigation and adaptation
• The project of EU corporate sustainability reporting directive (CSRD)
• The project of EU sustainability and green claims in products
• The sanitary inspections to help relaunch the economic activity

Additional information on Ethics can also be found in section 2.3.1.1. of Bureau Veritas 2020 Universal Registration Document.

3- Human Rights

Human rights commitment

The Group has set a Human Right policy which is accessible in the CSR section of Bureau Veritas website. It applies to all employees, activities and geographies:

https://group.bureauveritas.com/sites/g/files/zypfnx196/files/media/document/Group%2BHR%2B001- PO%2BHuman%2BRights%2B.pdf

In addition, Bureau Veritas has set a Code of Conduct for its suppliers and partners which refers to the Human Rights principles. It applies to all suppliers and partners, activities and geographies: https://group.bureauveritas.com/sites/g/files/zypfnx196/files/media/document/BPCC_SEPT_2020_EN.pdf

Human rights due diligence process

A risk map of the areas covered by the duty of care plan was drawn up by the Group in 2017 and revised in 2018. It covers Human Rights for the company and its upstream supply chain.

• a specific analysis was performed in-house to assess the most significant risks for the Group:

1. Major human rights risks were identified using the UN's Human Development Index published in March 2018 and considering the map on children's rights worldwide published by Humanium. For suppliers, this approach was supplemented by a detailed analysis of risk for each category of purchases,

1. Major environmental risks were identified based on an environmental impact assessment of the business activities carried out by the Group and its subcontractors. Owing to the low environmental risk associated

with most of its businesses, the major risks only concern laboratories for their treatment of waste,

• 1. Major safety and security risks were identified in all countries reporting a significant number of serious accidents in 2018, both within Bureau Veritas and at its subcontractors;
• an external review was performed by a specialist independent firm to identify priority issues. This review was carried out through audits, reviews of documentation, interviews with the departments concerned and cross- checks with external statistical databases, including the Social Hotspots DataBase (SHDB).

Employees, children, women and subcontractors are the four vulnerable groups at risk with human rights issues.

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Bureau Veritas 2020 - Additional CSR information