Thales : Integrated report 2020 - 2021

thalesgroup.com

INTEGRATED REPORT

Corporate Responsibility 2020-2021

C O N T E N T S

M E S S A G E

from Patrice Caine, Chairman & Chief Executive Officer

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THALES IN 2020

Group profile	6
Leader in aerospace, transport, defence and security	9
Building a safer, more inclusive
and more environmentally friendly world	1 0
20 years of innovation for those who make
the world go round	1 2

VISION AND STRATEGY

Meeting global challenges	1 6
Our strategic priorities and ambitions	1 8
Our value creation process	2 0
Our contribution to the UN's Sustainable
Development Goals	2 2
An organisation focused on innovation	2 4
Digital, a growth driver in all our business lines	2 5
Risk control: the Group's DNA	2 6
Ethics and integrity, at the heart
of the corporate responsibility policy	2 8
Governance adapted to the challenges of the Group	3 0

VALUE CREATION

A culture of dialogue and partnership	3 4
A responsible supply chain	3 6
Innovation focused on the planet	3 8
Committed to humanity	3 9
Financial and extra-financialperformances	4 0
Principles of responsibility	4 2
About this report	43

- 2020 INTEGRATED REPORT

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MESSAGE

- 2020 INTEGRATED REPORT

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Message from Patrice Caine

Chairman

and Chief Executive Officer

MESSAGE

The past year has been singular in many respects. The global Covid-19 pandemic, with its drastic human and economic consequences, has accelerated a general awareness of the need to work together to build a more sustainable world.

Through its positioning and strategy, Thales provides a tangible response to these expectations: developing solutions to build a safer, more sustainable and more inclusive world, while striving for responsible economic performance in deference to its stakeholders, all necessary conditions for establishing trust.

This year, safety has been an unprecedented concern for governments. More than ever before, Thales has worked closely with them to help deal with the increased risk of interference caused by pandemics and protect their citizens in the real world and in cyberspace. In procedures governing relations with our customers, this requirement for a safer environment is also based on compliance with common rules, such as the Group's zero tolerance policy on corruption and infl uence peddling. In 2020, we took a step further in this area by embarking on an ISO 37001 "anti- bribery management system" certifi cation process, which was completed in March 2021. Thales is one of the fi rst companies in its segment worldwide, and in the CAC40, to have obtained this ISO 37001 certifi cation.

Environmental issues also dominated 2020. Integrating these issues within our core business is essential if we are to look to the future with confi dence. We have long been mindful of these developments and have strengthened our policy accordingly each year. In 2019, we set ourselves ambitious targets for reducing our CO2 emissions in line with the 2°C trajectory of the Paris Agreement, not only for our direct emissions, but for our indirect emissions as well. In 2020, despite the Covid-19 crisis, we made signifi cant progress in implementing eco-design for the development of new products. We also confi rmed our support for the principles and recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Lastly, this new, more sustainable world cannot be built without fostering an inclusive world view in which no one is left behind.

In October 2020, during the celebration of the fi ftieth anniversary of the United Nations, I personally signed the "Statement from Business Leaders for Renewed Global Cooperation" initiated by the United Nations Global Compact. In this period when human solidarity is vital, when attention to respect for human rights is fundamental, I felt it was essential to recall the importance of the Sustainable Development Goals and the relevance of the ten principles of the Global Compact that we have fully supported for almost 20 years.

At a time when the economic climate and public health situation remain uncertain, the extraordinary commitment of our teams around the world, in challenging circumstances with complex health constraints, has demonstrated the Group's human and economic resilience, as well as its agility. As a result of this commitment, we have been able to far exceed the goals of the crisis adaptation plan that we defi ned last March.

In these challenging times, I fundamentally believe that Thales has all the human and technological assets needed to help our customers face the challenges of the world, both now and in future, with determination and confi dence. We will continually support them in exploring new technological frontiers with rigour and optimism, helping to create a more sustainable world where our purpose of "building a future we can all trust" truly comes into its own.

- 2020 INTEGRATED REPORT

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CONFIDENCE IS OUR MAIN ASSET

TO CONFRONT THE UNPRECEDENTED

CRISIS THAT WE ARE LIVING THROUGH.