Schréder - Sustainability Report 2020

GRI report

Together for our Future SUSTAINABILITY REPORT 2020

Table of contents

TOGETHER FOR OUR PEOPLE 23 1. Diversity��26 2. Human Rights�� 27 28 1. Lighting with positive social impact ��30 I. Improving safety while moving slowly: TOGETHER FOR OUR COMMUNITY An application for vulnerable users �� 30 II. Lighting in economically less privileged areas��31 2. Protection of fauna and flora ��32 SUSTAINABILITY IN OUR EVERYDAY BUSINESS 33 1. Training and education��34 2. Health and safety��36 3. Customer protection��38

FOREWORD

COMPANY INFORMATION 39 1. Corporate governance��39 2. Risk management & internal audit�� 44 3. Business ethics��45 47 Scope and boundaries�� 48 Stakeholder’s engagement�� 49 External memberships and recognitions��50 ABOUT OUR SUSTAINABILITY REPORT

WHO WE ARE 03 Our history��03 Our market segments�� 04 Our proximity��05 Our values�� 06 07 Materiality assessment�� 08 Together for our Future�� 09 OUR SUSTAINABILITY STRATEGY TOGETHER FOR OUR PLANET 11 1. Our footprint�� 13 1.1. Our operations ��13 1.2 Our products �� 19 2. Circular design��20

GRI CONTENT INDEX

Foreword

we consider sustainability a true business- enabler. It guides us in meeting our customers’ expectations in very different contexts around the world, it drives innovation and unleashes opportunities. Sustainability plays a key role in the long-term relationship we nurture with all our stakeholders, including governments and employees. We are proud of the progress we are making on executing our “Together for our Future” project and we are very pleased to share the first milestones in our first GRI report. We aim to report in a transparent and objective way on our performance, while realising that this is only a part of a much longer journey.

is to hand it over from generation to generation, with each generation contributing to making the business and its surrounding communities healthier and better. It is this next generation thinking that instills our commitment to sustainability. We continuously innovate, change the way we look at the world and undertake, while contributing to the UN Sustainable Development Goals (SDG). For some time, we included sustainability and the preservation of our planet in our company’s mission statement. In 2019, we formalised our sustainability strategy and actions under a comprehensive project called “Together for our Future”. After a broad consultation of our stakeholders, 3 strategic pillars were defined, to align with what matters most to them:  Together for our Planet to lighten our footprint;  Together for our People to protect them and address their needs;  Together for our Communities to bring positive change. We also embedded sustainability in our company value system by adding “Respect”, which underlines our commitment to be mindful of our social impact and human rights. Respect is the umbrella under which we lead the way to sustainable business.

Together for our Future, Acting responsibly for a sustainable future For more than a century, Schréder has been active in public lighting. An industry that has a life-changing impact on citizens worldwide, improving their comfort, safety and development. However, this industry also has its challenges that impact people and the environment, like energy consumption and greenhouse gas emissions, light pollution and changes in biodiversity patterns. Our role as market leader motivates us to take part in the global battle against climate change and contribute to a respectful economic development. Over the years, Schréder has continuously found new ways to improve the energy efficiency of its products and in more recent years developed smart city solutions to help cities become more connected and more resilient in the era of data. We help communities face their biggest challenges, making the world more sustainable. Beyond our corporate social responsibility, the core purpose of our family-owned company

We hope you enjoy reading the report and welcome your feedback and suggestions.

Renaud Gryspeerdt Chairman of the Board

Werner De Wolf CEO

We have also strengthened the integration of sustainability within our business strategy, as

The Schréder Group is the leading independent Who we are

Our history Schréder was founded in 1907 in Liège, Belgium as a family-owned company. At the turn of the 20 th century, electricity was the new promising technology. During the company’s first few decades, it explored the possibilities of this technology, innovating and manufacturing a variety of electrical equipment until it started to design and manufacture outdoor lighting products. From the very beginning, driven by a sense of purpose and adventure, Schréder expanded internationally through joint ventures across Europe and beyond. Over time, Schréder established a direct sales model worldwide, building with local experts and partners, and in close collaboration with cities. This proximity inspires innovation and enables Schréder to adapt its product portfolio to meet local needs better than others. To adapt to an increasingly globalised world, the Schréder Group reorganised its supply chain and industrial footprint to maintain

production close to its customers. The Group’s manufacturing plants supply the regional or continental markets where they are located to better serve its customers and contribute positively to the local social fabric and environmental preservation. In addition to our extensive portfolio of luminaires, we develop cutting-edge connected lighting systems. These new systems enable the optimal use of light to further reduce energy consumption and carbon footprint, and also provide a platform to add innovative new features such as traffic and pollution sensors to improve the quality of life for citizens. More than ever, Schréder’s DNA of innovation provides significant added value to cities for managing smarter, more efficient and more sustainable public spaces. At Schréder, this is called Lightability™. Schréder is without a doubt a key partner for the city and the mobility of tomorrow.

outdoor lighting manufacturer in the world with more than 2 million lighting points sold per year. The company is present in more than 70 countries. The company’s ambition is to bring meaningful moments to people in public spaces by enhancing safety, well-being and sustainability. As such, Schréder’s Experts in Lightability™ work with customers to co-create smart lighting solutions for spaces that benefit people, the community and the planet.

Who we are

Our market segments Cities and Communities Schréder’s urban and decorative lighting solutions improve quality of life in public spaces. Illumination floodlights enhance a city’s heritage and boost social interaction by creating lively town centres and celebrating special events.

Road Motorway and street lighting

Tunnel A good tunnel is, first and foremost, a safe tunnel. The Group’s smart lighting solutions ensure safety and comfort in road and rail tunnels, while reducing energy and maintenance costs.

Quantity of products sold

accounts for the largest part of the outdoor lighting market. Schréder lighting solutions ensure safety and comfort on all main roads.

2018 2.3M 2019 2.0M 2020 2.1M Number of luminaires sold

Industry Schréder has been lighting

Sports Schréder offers a range of products and solutions to light public and private sports facilities that contribute to improving the health and well-being of people.

warehouses, factories and mines since its’ inception; we recently introduced a new range of outdoor and indoor luminaires for industrial sites, improving working conditions and safety for operators.

Millions of lumens of light output produced 2018 9,196 2019 13,143 2020 13,075

For more information, please visit our online catalogue : http://ecatalogue.schreder.com/en/m/index.html#/page/0 04

Who we are

Our proximity We produce regionally for local needs, avoiding unnecessary transport and impact on the environment. 1

 Schréder Commercial presence

Schréder Production centres Australia, China, Hungary, Portugal, South Africa, Spain, Ukraine Schréder R&D centres Australia, Belgium, France, Hungary, Portugal, South Africa, Spain, UK

(1) 76% of luminaires sold are produced on the same continent as their destination point. The remaining 24% of intercontinental flows result primarily from an exceptional project supplied to the Middle-East in 2020. 05

Who we are

Our values Schréder provides all employees with an environment and resources to support their professional development. Our goal is to empower all employees to maximise their potential and develop their skill set. Schréder employees work in a family-owned company governed by a long-term vision, an international character, and a strong culture built on our six values. These values are regularly communicated to our employees through our intranet, management webinars, and onboarding sessions for new hires. They underpin everything we do.

Caring for customers... We listen to our customers, anticipate their needs and put their challenges first. We are all accountable and aligned to deliver an extraordinary customer experience. We build long- term relationships with our customers and never let them down. Working together... We are all aligned to achieve the same purpose: we deliver on our promises together! We support each other to overcome challenges, we listen and understand the others’ perspective to come up with the best overall solution. Ultimately, when we work as a team, we win, learn and grow together. Entrepreneurship... We are passionate about developing new business opportunities. We think and act like owners. We are persistent, embrace challenges, accept and manage the risk. We celebrate success and learn from failure.

Innovation... Is at the heart of our mindset. Standing still is sliding backwards. We come up with new ideas and original, creative thinking for our products, services, business models and operations. We love to explore off the beaten tracks. Respect... We are mindful of our role and impact on our colleagues, customers, partners, citizens, communities and the planet. Schréder employees demonstrate respect in their interactions by valuing difference, being inclusive, and embracing diversity. Respect is the umbrella under which we lead the way to sustainable business. Integrity... We always do things the right way, in full respect of the law and our code of conduct. It starts with every one of us; we are open, honest and accountable.

Our Sustainability Strategy

Materiality assessment Sustainability has been a topic close to the heart of the Schréder family shareholders for generations. In 2019, we formalised this commitment by making it a priority and conducting our first materiality assessment. Materiality is the principle of defining the social and environmental topics that matter most to our business and our stakeholders. Some 80% of the world’s largest 250 companies already identify material sustainability issues in their reporting, according to KPMG 2 . Based on our operations and business, with the support of external experts, we consulted the following stakeholder groups.

This consultation therefore resulted in a list of material topics which are set out below with the related SDG, where these are relevant to Schréder’s operations. A new materiality assessment is planned for 2021 to ensure that our strategy is aligned with our stakeholders’ interests and needs.

Next generation thinking for a sustainable future

Most relevant SDGs

Most relevant material topics Energy efficiency End of life

SDG 1 SDG 2 SDG 3 SDG 4 SDG 5 SDG 6 SDG 7 SDG 8 SDG 9 SDG 10 SDG 11 SDG 12 SDG 13 SDG 14 SDG 15 SDG 16 SDG 17

Sustainable production Corruption and bribery Safety, comfort & respect Working conditions at Schréder Working conditions in the supply chain Organizational governance Product functionality Product footprint Community involvement Energy consumption of Schréder Customer centricity Product lifetime Diversity Employability and staff skills

Internal

External

19 Management team General managers Employees

7 Customers Suppliers Shareholders

27%

73%

People

During the interviews, the relevant material topics were identified as well as the existing and potential actions that could be taken. The interviews were also conducted around the UN Sustainable Development Goals framework (SDG).

0 5 10 15 20 25 30 35 40 0 05 10 15 20 25 30 35 40

5 05

10 15 20 25 30

Sustainable Development Goals

(2) Source: The time has come - The KPMG Survey of Sustainability Reporting 2020 (https://assets.kpmg/content/dam/kpmg/be/pdf/2020/12/The_Time_Has_Come_KPMG_Survey_of_Sustainability_ Reporting_2020.pdf )

Our Sustainability Strategy

Together for our Future Based on the materiality assessment, we developed a cohesive, company-wide sustainability strategy. We called it the “Together for our Future” project and launched it in early 2020. The project is structured around three axes encompassing the relevant and prioritised SDGs and targets.

FOR OUR PEOPLE Being responsible for our people by developing human growth through diversity and respect of human rights Focus areas  Gender diversity  Human rights

Each of the three pillars is sponsored by one or more members of the company executive team and driven by employees from diverse functions. The project steering committee meets quarterly to discuss, review and ensure inclusive thinking on the strategic focus areas of the sustainability project.

Sustainability Steering committee members:

 Chief Executive Officer  Chief Human Resources Officer  Chief Legal Officer  Chief Operations Officer  Chief Technical Officer  Chief Product Marketing Officer  Chief Regional Officer A project update is also presented once a year to the Board of Directors.

FOR OUR PLANET Being responsible for our planet

by reducing our own and our customers’ environmental impact Focus areas  Company carbon footprint  Energy efficiency of our luminaires  Circular economy

FOR OUR COMMUNITY Being responsible for our community by having a resolutely positive impact on society through our solutions Focus areas  Lighting with a positive social impact  Respect of fauna and flora ecosystems

Our Sustainability Strategy

United Nations Sustainable Development Goals The United Nations adopted its 2030 Agenda for Sustainable Development on 25 th September 2015. The 17 Sustainable Development Goals (SDGs) are a global call to action to eradicate poverty, protect the planet and ensure that all people live in peace and prosperity. Our sustainability strategy was built to make a positive contribution to achieving the SDGs.

In this report, we also want to highlight other sustainability initiatives that are already embedded in our everyday business and contribute positively to the SDGs in addition to the “Together for our Future” sustainability project.

 Employee training and education  Employee health and safety  Business ethics

Together for our planet

Planet

2022 targets

-20%

 Reduction in our company carbon footprint (baseline 2018)

80%

 Of newly launched luminaires must score 4 stars for Schréder’s Circle Light Label

We want to be responsible for our planet by reducing our own, and our customer’s environmental impact.

Patrick Geerts Chief Operations Officer

Planet

1. Our footprint As a manufacturing company, we are aware that our operations have an impact on the environment. Furthermore, our products consume energy. Despite technological advances, 95% of a luminaire’s environmental impact is still related to its energy use. Street lighting accounts for 15 - 40% of the total energy spent in standard cities worldwide 3 . At Schréder, we are committed to playing a key role in protecting the environment by reducing the impact of our manufacturing activities, products and services. We will do this by delivering a better quality of light, through an intelligent use of technology, and taking into account the latest scientific and environmental knowledge. 1.1. Our operations Reducing greenhouse gas (GHG) emissions linked to our operations is one of the objectives of the “Together for our Planet” pillar of our “Together for our Future” project. Our target for 2022 is to reduce our company carbon footprint by 20% (compared to a baseline of 2018). To do so, we have established an action plan at Group level which focuses on reducing:  our consumption of raw materials by reviewing our product design to increase material efficiency;

Annual footprint By sources of GHG emissions

 the impact of our energy consumption by shifting, wherever possible, our factories to green energy and by investing in technologies that enable energy savings;  the impact of our logistics operations through flow optimisation;  our employee mobility impact by limiting business travel and integrating greener mobility solutions for employees. As well as the core actions listed above, our factories will also work on reducing their waste through a global waste management programme that promotes re-use, recovery and recycling, as appropriate. At the end of 2019, we started to measure Schréder’s operational environmental impact. The main sources of GHG emissions generated by our own operations are: 1. Product materials; 2. Logistics; 3. Employee mobility; 4. Infrastructure. We decided to measure our carbon footprint with an intensity ratio, by dividing our absolute GHG emissions by the number of lumens produced. We chose this reporting calculation methodology primarily because Schréder’s final output to its customers is light, which is measured in lumens. At the same time, we wanted a measurement system which gives the full picture of our carbon

19%

2020

74%

 Infrastructure  Mobility  Logistics  Product Materials

By tCO 2 e/Mlum

 Total entities  Target 2022

8,9

0 0

2018

2019

2020

(3) Source: https://aip.scitation.org/doi/pdf/10.1063/1.5112267#:~:text=A%20street%20lighting%20system%20consumes,HPSV%2C%20MH%2C%20or%20MV

Planet

footprint by neutralising the diversity of our product portfolio. As the environmental impact of producing a luminaire can vary significantly from one product to another, considering the total lumens produced gives us this comprehensive overview. We set ourselves the goal of reducing this figure by 20% in 2022 compared to 2018. The GHG emissions coming from our own operations in 2020 reached 9.3 tCO 2 e/Mlum (121,928 tCO 2 e for 13,075 Mlum). This is a 16% reduction compared to 2018. We are therefore on track to achieve our 2022 target. Our target is therefore stated in tCO 2 e/Mlum 4 .

lumen output. This project greatly influenced the denominator figure (Mlum) of our intensity ratio in 2019 and 2020. As we deliver the last luminaires for this major order, the Mlum figure is expected to return to a more normal level, making our 2022 target of a 20% reduction in the intensity ratio compared to 2018 achievable. While monitoring our intensity ratio target, we managed to keep our absolute GHG emissions under control. We will take a closer look at the evolution of the GHG emissions in different business categories in the following sections of this report. I. Product materials The major source of GHG emissions is related to the materials we use to produce our luminaires. It represents 74% of our total company emissions. In 2020  Our in-house R&D engineers worked on the product design of our new luminaires to reduce the quantity of materials we use. The new generation of luminaires are more compact, with thinner castings that are still robust. For example, our new IZYLUM platform, is up to 56% lighter than a previous generation LED road luminaire depending on the options selected by the customer.  Our sales teams promoted these new products to customers, replacing older versions that have greater lifetime GHG emissions.

In 2020, we achieved a 2% reduction compared to 2018.

Product material emissions

6.0 6.2 6.4 6.6 6.8 7.0 7.2 7.4 7.4 7.2 7.0 6.8 6.6 6.4 6.2 6.0

2018

2019

2020

We can illustrate what this decrease represents by looking at our aluminium consumption. In tonnes, our 2020 aluminium consumption increased by 7% compared to 2018. However, over the same period, our luminaire production increased by 20%. We therefore truly optimised our materials usage to reduce our material footprint and therefore the emissions linked to raw material.

-20% -16%

2022 target 2020 results

12.2 - By 2030, achieve the sustainable management and efficient use of natural resources.

This evolution is partly due to a sharp increase in the number of lumens produced between 2018 and 2020 (+ 42%). In 2018, we won a large tender in the Middle East to completely relight all major urban centres including thoroughfares, boulevards and roads and provided a very high number of luminaires with a significant

(4) Mlum = 1.000.000 lumen produced

Planet

II. Logistics The second major source of GHG emissions is logistics, which represents 19% of our total company emissions. At Schréder, we buy a wide range of components, including aluminium castings, glass protectors, drivers and controllers from many different suppliers to produce our luminaires. They are classified as either Group suppliers or local suppliers. The Group suppliers represent over 80% of our total materials spend and work with the Schréder Group purchasing team. A total of 74% of these suppliers are located in Europe. The factories are in direct contact with the local suppliers who are usually located nearby. In 2020  Our logistics department launched the Hermes project. Its first aim is to optimise the supply chain flow between our factories and our sales entities in Europe. It will also help to monitor and improve our logistics process. The second phase, scheduled to be initiated in 2021, will map inbound flows to have a better understanding of our entire logistics network.  Our production sites worked on several projects to reduce the environmental impact of our packaging, notably by using reusable boxes and bulk packing. At the end of 2020, the Hungarian factory launched a pilot project to use air bubble film made out of recycled polyethylene (PE) in combination with reusable crates.

In 2020, we achieved a 32% reduction in logistics- related GHG emissions compared to 2018. This reduction is mostly driven by the increase in lumens produced over the same period.

Today, the majority of such emissions (62%) are caused by road transport.

Logistic emissions By transport modes

35%

62%

2020

 Road  Maritime  Air By tCO 2 e/Mlum

3.0 3.0

2.5

2.0

1.5

1.0

0.5

0.0

2018

2019

2020

Planet

III. Employee mobility Employee mobility includes all employee business travel, including company cars (private and professional use). In 2020, this indicator was greatly impacted by the COVID-19 pandemic. Due to travel bans and remote working, business travel and company car use dropped drastically. Our GHG emissions from employee mobility decreased by 66% in 2020 compared to 2018. This is a temporary condition as business travel and commuting will increase again as the situation returns to normal. Nevertheless, the pandemic has shown us that other ways of working can be considered, with less travel and more remote working. We plan to implement new policies regarding these topics in 2021.

New mobility policy pilot project A pilot project was launched in Belgium as the Belgian entities have the highest number of company cars (the country accounts for 18% of the total company car emissions). The new policy encourages the use of hybrid or full electric cars and offers employees more flexibility by replacing the car budget with a mobility budget. Employees can combine different transport solutions, splitting their budget between car leasing, a bike or a public transport subscription. The main source of emissions from employee mobility comes from the use of company cars (83% in 2020, 70% in 2018).

IV. Infrastructure The infrastructure category includes energy, electricity, air-conditioning, office materials, water consumption and waste treatment. It represents 5% of our total company carbon footprint. In 2020, several actions were implemented to reduce the environmental impact of our infrastructure. Offices  We set up a sustainability network with employees identifying relevant actions for each office to reduce its environmental impact.  Awareness campaigns regarding energy consumption were launched to remind employees of the best practices for lighting and heating.  Actions were taken to make Schréder’s offices single-use plastic free. For example, at our Belgian headquarters, water fountains were installed and every employee received a reusable water bottle and coffee cup. Refillable glass bottles were also placed in all the meeting rooms.

Employee mobility emissions

0.6 0.6

0.5

 Taxis  Air travel  Company cars

0.4

0.3

0.2

0.1

0.0

2018

2019

2020

Planet

Factories  Actions were taken to reduce the

Energy consumption In 2020, we studied the possibility of

Infrastructure emissions

environmental impact of paper consumption. By the end of the year, most factories had shifted to recycled paper. The total quantity of paper was also reduced due to digitalisation.

switching, when possible, our factories to green electricity. The same exercise was also conducted for our main European offices. In 2021, two factories (Spain and Hungary) and three offices (two in Belgium and one in The Netherlands) will be supplied with green electricity. Schréder’s energy consumption (electricity, natural gas, heating fuel) in 2020 was 21,905MWh with 39% of our electricity coming from green sources.

 Waste  Water  Materials office

 Electricity  Cooling  Energy

1.0 1

0.8

63 tonnes

2018

0.6

30 tonnes

53% reduction

2020

0.4

 We are replacing all lighting infrastructure in our factories. Today, five of our seven productions plants are entirely lit by LEDs.

0.2

0 10 20 30 40 50 60 70

0.0

2018

2019

2020

The GHG emissions coming from our infrastructure decreased by 47% in 2020

Green electricity

compared to 2018. This significant decrease is mainly due to the reduction of our energy and electricity GHG impact. Indeed, we managed to decrease our consumption but also reinforce the proportion of green energy in our total energy mix. Due to the COVID-19 pandemic, we also greatly reduced our consumption of office materials. Finally, as employees could take their IT equipment home to work remotely, our office energy consumption also decreased compared to previous years.

7.2 - By 2030, increase substantially the share of renewable energy in the global energy mix. 7.3 - By 2030, double the global rate of improvement in energy efficiency.

40 40 %

39%

33%

30 %

31%

20 %

10 %

0 %

2018

2019

2020

Planet

Waste treatment

Waste treatment In all our factories, a global waste management that promotes re-use, recovery and recycling has been put in place. Employees of our factories are trained to segregate waste correctly to avoid any waste stream pollution. Special programmes have also been put in place with partners to optimise our waste recycling. In addition, we worked with our suppliers to reduce the packaging waste for components. We put in place reusable plastic crates with our aluminium suppliers in our Spanish and Ukrainian factories. In 2021, we are planning to conduct a study on the rollout of reusable crates to more suppliers and the rest of our European plants. Schréder’s total solid waste in 2020 was 1,900 tonnes with a recycling rate of 84%. It is a 6% increase compared to 2018 (78%).

7% 9%

2020

84%

 Landfill  Recycling  Incineration

12.4 - By 2020, achieve the environmentally sound management

of chemicals and all wastes throughout their life cycle, in

accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimise their adverse impacts on human health and the environment 12.5 - By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

Planet

Sustainability documents To help our customers with their environmental assessment, we conducted a BREEAM analysis of our products. BREEAM (Building Research Establishment Environmental Assessment Method) is one of the world’s leading sustainability assessment methods for buildings, communities and infrastructure projects, owned by BRE (Building Research Establishment, UK). BREEAM evaluates the overall building concept, considering nine main categories with multiple issues. Using Schréder’s solutions, up to five categories can be influenced, two being a prerequisite for BREEAM certification (according to BREEAM International New Construction 2016). Furthermore, to inform customers about the environmental impact of each luminaire, Schréder has developed a life cycle analysis tool (Instant LCA) in collaboration with an independent agency (in accordance with the principles of ISO 14040: 2006), which is available upon request.

1.2 Our products The greatest environmental impact of

so they can meet stringent safety requirements while using less material.

a luminaire is the amount of energy consumed over its working life. Therefore, replacing old installations with new technologies which are more energy-efficient has a significant positive environmental impact. At Schréder, we are constantly developing new technologies to reduce energy consumption to a minimum (LED technology, optimised optics, control solutions, solar solutions…). Over time, the energy consumption of our products has greatly decreased. Today, almost 100% of our sales are LED luminaires.

 Schréder EXEDRA is the most advanced lighting management system on the market for controlling, monitoring and analysing street lights. It creates lighting scenarios including the most efficient dimming profiles and sensor- based light-on-demand features. Combined with efficient technology, it can cut energy consumption by as much as 85%.

Evolution of LED efficiency 5

200 2 0

150

Global trend

1 0

100

7.3 - By 2030, double the global rate of improvement in energy efficiency. 9.4 - By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

2016

2017

2018

2019

2020

2021

 LensoFlex ® 4 is the fourth generation of the Schréder LensoFlex ® concept. This technology combines high- power LEDs with precision lenses

to meet the lighting requirements of road and urban applications. With optimised light distributions and very high efficiency, this fourth generation of lenses is the smallest yet,

(5) Graph based on CREE data (CREE XPG-1/XG3 – 740)

Planet

2. Circular design Many of the lighting solutions we delivered back in the 1970s are still working and we are very proud of this achievement. As part of our on-going mission to develop products with the lowest environmental impact, we decided to integrate circular economy concepts into the design of our luminaires. Circularity is the second objective of our project, represented by the pillar “Together for our Planet”.

The FLEXIA circular score is remarkable, not only due to its efficiency but also because of 8 circular attributes.

In the absence of independent standards, we carefully analysed the potential circularity of luminaires to introduce a “circular lighting” product label. This Circle Light Label assesses the luminaire circularity based on twelve objective criteria. It takes into account performance, maintenance, refurbishment, disassembly and recycling potential. Internally, we use this label to challenge the development teams to improve the luminaire’s design, as we want to incorporate circularity into our luminaire’s DNA, right from the onset. This label is meant to evolve through time to reflect new information about the circular economy.

1. High-quality mechanical structure to achieve IP 66 and IK 09 ratings.

2. Tool-free philosophy:

opening, cabling and LED engine removal.

3. Modular design for all functional parts.

12.5 - By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse 12.7 - Promote public procurement practices that are sustainable, in accordance with national policies and priorities

4. Less than 7 steps to

completely disassemble the luminaire.

5. Highly recyclable materials.

2022 target  new developments must achieve 4 stars for Schréder’s Circle Light Label 2020 results  new products scored 4 stars. We also analysed the high- runners in our portfolio and 24 of the 45 luminaires scored 4 stars.

80%

Circle Light Label As a global lighting organisation, we are a member of various standard-setting bodies related to LED luminaires, light engines, modules and sensing/communication modules. There is currently no standard certification for circular economy compliance in the lighting industry. If the possibility arises to set an international standard for circular economy compliance, we will seek to be leading the effort.

6. Utmost connectivity with standard high-voltage (NEMA) and low-voltage (Zhaga) sockets

7. Product information

100%

available by scanning a QR code.

8. Long service life: designed to deliver 25 years of efficiency, sustainability and safety.

Planet

Circle Light Label criteria

Long-lasting, long use

Points 0

Points 5

Points 10

(6) The luminaire’s efficacy is the ratio between the output flux (F) and the consumed power (P). This measurement is carried out at 500mA with the maximum number of LEDs. When this configuration is not available, the variant with the maximum number of LEDs and highest current will be measured. (7) The mechanical criteria takes into account the IP and IK level of the luminaire. Our criteria is as follows: Level 1 Level 2 Level 3

Luminary efficacy 6

F/P < 110 lm/w

110 lm/w =< F/P < 140 lm/w L90/100.000 =< x < L95/100.000

140 lm/w =< F/P

Rated life of the LEDs Mechanical 7

x < L90/100.000

L95/100.000 =< x

Performance

Level 1

Level 2

Level 3

No control solution

Energy control

Dimmable

Dynamic

Proprietary smart solution ready

Open smart solution ready

Not available

Smart ready 8

Any luminaire with an IP level equal or below IP 54

Any luminaire with an IK level equal or below IK 07. Or any luminaire with an IP level between IP 54 and IP 66

Any luminaire with an IP level equal or over IP 66 and an IK level equal or above IK 08

Specific tools/ Impossible Specific tools/ Impossible Specific tools/ Impossible

Opening

Basic tools

Tool free

Optical unit

Basic tools

Tool free

Gear plate (driver, SPD, smart, ...)

Maintenance

Basic tools

Tool free

(8) A luminaire is considered smart ready if it can integrate an IoT solution. An open smart solution is a Nema or Zagha (ZD4I) socket. (9) This factor ensures that it is feasible and practical for a professional to access components after the luminaire has been put into service. (10) The replacement parts should be the same as the originals, but if this is not possible, equivalent spare parts that perform the same function to the same or higher performance level may be used. (11) The disassembly depth is the minimum number of steps required to remove a component from a product. (12) The criteria focuses on the luminaire’s main parts (body and reflector) with materials recognised by Schréder Group staff and R-Tech, Schréder’s Belgian R&D Centre.

Product sheet

In the box

On the website

On smart tag

Installation sheet

In the box

On the website

On smart tag

Asset data sheet

In the box

On the website

On smart tag

10 years after the announced end of life

Availability 10

Product warranty

Announced end of life

Refurbish

Use of a gear plate for some functional parts (allow different fixation method)

Use of a module for all the functional parts (allow different fixation method )

Directly to the mold (only one mechanical fixation method allowed)

Mechanical fixation method

Nondestructive disassembly

Disassembly depth 11

> 9

9 ≤ x < 7

≤ 7

End of life

Material separability

Not separable

All materials

Recycle

Material compatibility with recycling 12

Yes

Planet

Recycling In Europe, lighting products are considered as Waste Electrical and Electronic Equipment (Directive 2012/19/EU), one of the world’s fastest growing waste streams 13 . We are therefore committed to reduce the landfill disposal and increase the recycling of our products. Every Schréder subsidiary has a local partnership to arrange the collection, storage, transport and end-of-life treatment of lighting products in accordance with the law and local regulations. These partnerships make sure that the luminaire components are recovered to close the material loop.

Some local projects even go further.

 Schréder B.V. (the Netherlands) To encourage the collection and recycling of old light fittings, Schréder B.V. introduced the 'Schréder Wecycle Deal'. When a Schréder luminaire is chosen for a replacement project, Schréder coordinates the collection of the old equipment. In addition, to compensate for the materials collected, the company donates an amount for each new Schréder luminaire installed to a sustainable cause determined in mutual agreement with the customer. A certificate is also delivered, highlighting the collection results and social return equivalent of the project.

 Sylvania Schréder (Australia) A similar rebate scheme has been introduced for sports lighting projects. For every HID fitting replaced with a Schréder LED luminiare, we ensure that the old fittings are correctly recycled and then give a small rebate to the customer with a certificate showing exactly how much metal has been recycled.

(13) https://ec.europa.eu/environment/topics/waste-and-recycling/ waste-electrical-and-electronic-equipment-weee_en

Together for our people

People

Targets

20%

 of women in Management by 2025

80%

 of the total supply value and 100% of “risk 14 ” suppliers compliant with the RBA 15 standard by 2022

We demonstrate respect in our interactions by valuing difference, being inclusive, and embracing diversity.

Maria Antonia Vestia Chief Regional Officer

We play an active role in the communities where we operate by doing business ethically: we expect the same from our suppliers.

Johan Van de Velde Chief Legal Officer

(15) Description of RBA to be found on page 27 24

(14) Risks suppliers: Suppliers with no ISO14000 - or equivalent - certification, suppliers based in countries where child labour and/or forced labour is present, as per International Labour Organisation data.

People

People in numbers

Central Services 154

Western Europe 776

Northern & Central Europe 530

South America 72

Rest of the world 17 479

female 27 %

2,011 16

73 %

male

Number of nationalities 52 Average age 42 years Average seniority 9 years

(16) Number in heads. Only employees on Schréder’s payroll (excl. externals like interim/temps and contractors). 31/12/2020 (17) Australia, Canada, China, Qatar, Singapore, South Africa, UAE, USA

People

1. Diversity The diversity of the staff, in all its forms (skills, experience, age, gender, culture, etc.), is a source of renewal, innovation and creativity. In accordance with the UN’s goals, we decided to focus our effort first on gender diversity and equality as this is still, despite some efforts, an on-going concern in society as a whole. At Schréder, every employee is valued for his or her skill set. No discrimination, from the recruitment process to promotion to key positions, is tolerated. We actively look for and choose employees based on their experience and the value they bring to the company. This concept is underlined in our Code of Conduct, in the section “respect and dignity for everyone in the workplace”. Nevertheless, as an industrial company, our primary diversity challenge is linked to the gender of our employees, as traditionally, more men tend to be attracted by and apply for our job openings. In 2020, the Group HR department launched a job classification project across the whole company. This project will enable us to establish our employee baseline and have an overview of the gender diversity in each job band. At the end of 2020, the Group HR department had already classified 89% of our employees.

At company level, 27% of Schréder employees are women. At leadership and management level (top position bands representing 8% of our employees), this proportion decreases to 15%. We therefore decided to take new initiatives, in the context of the “Together for our Future” project, to increase the proportion of women in the organisation, primarily in Leadership and other Managerial positions.

Target  of women in Management by 2025

20%

Actions foreseen for the coming years

Ensure Schréder’s culture welcomes women and promotes female leaders

Launch a specific survey from an external provider. Identify potential barriers and opportunities.

Female Male

Leadership team Leaders providing strategic vision and/ or tactical/strategic direction. Other Management Functions focusing on tactical, operational activities within a specified area. Functions at management level typically have three or more direct reports. Professionals Individual contributors with responsibility in a professional or technical discipline or specialty, or management of processes and programmes. In some cases they manage two or fewer employees. Employees Individual contributors who provide organisational related support or administrative service or roles operating in daily business activities (e.g., technical, production...).

15% 85%

Increase the percentage of women hired at Schréder

Ask recruitment agencies to bring us gender-diverse shortlists during the hiring process.

15% 85%

Increase the percentage of women in typical young engineering / sales representative positions (B1)

More focus on gender diverse talent during succession plans and talent reviews. Start hiring young graduates through internships. Determine the yearly needs for university graduates. Develop/reinforce partnerships with universities (business needs and local talent availability).

23% 77%

Ensure there are no barriers to career evolution for women at Schréder

31% 69%

5.1 - End all forms of discrimination against all women and girls everywhere 5.5 - Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision- making in political, economic and public life

People

2. Human Rights A working environment that respects human rights contributes positively to society and to business. Companies can and should be a force for good by providing decent work conditions and upholding labour standards across their operations and value chains. It is crucial to ensure that no child or forced labour is involved in Schréder’s supply chain, and every stage of the process involves decent labour conditions, especially as some of our components are considered as at risk for lower labour standards. In 2020, Schréder Group adopted the Responsible Business Alliance 18 (RBA) Code of Conduct as its standard on Human Rights. Our goal is to protect Human Rights directly and indirectly by ensuring that Schréder’s entities and its supply chain are

safe and that workers are treated with respect and dignity. Schréder is committed to upholding the Human Rights of workers. This applies to all workers including temporary, migrant, student, contract, direct employees, and any other type of worker. All Schréder entities and employees, and the Schréder supply chain shall observe and abide by the standards on Human Rights included in the RBA Code of Conduct, including:

At the end of 2020, we informed all our operation Group suppliers, representing about half of the Group’s total supply spend, of this new code of conduct and required them to confirm adherence and compliance with the RBA standard. A total of 90% of Group suppliers have already confirmed their adherence to the RBA code. Phase 2 will address the RBA compliance of local suppliers (suppliers with whom our local factories work) and will ensure a minimum coverage of 80% of the expense within that category. Finally, phase 3 will focus on all other suppliers according to a risk-based approach starting with transport, temporary, and gardening/ cleaning staff.

 Freely Chosen Employment  Young Workers  Working Hours  Wages and Benefits  Human Treatment  Non-Discrimination  Freedom of Association

Target  of the total supply value and

80%

100% of “risk 14 ” suppliers compliant with the RBA 15 standard by 2022

8.7 – Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms

(18) The Responsible Business Alliance (RBA), formerly the Electronic Industry Citizenship Coalition (EICC), Code of Conduct establishes standards to ensure that working conditions in the electronics industry or industries in which electronics is a key component and its supply chains are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible and conducted ethically. http://www.responsiblebusiness.org/

Together for our community

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