Schréder - Sustainability Report 2022

The Schréder lighting and beyond lighting solutions bring meaningful moments to people by enhancing safety, well-being and sustainability in public spaces.

Together For Our Future 2022 SUSTAINABILITY REPORT

Table of contents

Foreword from our Chairman Foreword from our CEO

02 03 06 07 08 09

Together For Our People

Company Information

1. Diversity, Equity & Inclusion 2. Sustainable Procurement and Human Rights 3. Training & education

1. Corporate governance 54 2. Risk management & internal audit 57 3. Business ethics 58 4. Tax 61 About our sustainability report 65 Scope and boundaries 66 Stakeholders’ engagement 68 External memberships and 69 recognitions GRI Content index 71

Who we are

35 37

Our market segments

Our proximity Our values

Together For Our Community

Our Sustainability Strategy

1. The right light

2. Lighting with positive social impact 3. Schréder Together Fund

Materiality assessment Together for our Future

11 13

44 46

Together For Our Planet

Sustainability in our everyday business

1. Our footprint

19 19 26 28

1.1 Our operations 1.2 Our products

1. Occupational health and safety 2. Customer protection

50 52

2. Circular design

Foreword from our Chairman 2022 was all about resilience, which has always been part of Schréder’s DNA.

Our teams around the world once again faced a number of economic and operational challenges, not least a war on Europe’s doorstep. On behalf of the Board, I would like to take this opportunity to express our sympathy to those employees and their families who are affected by the war and are dealing with its dramatic consequences. We also pay tribute to the outstanding performance of our Ukrainian team, who continue to provide the best possible service to our customers. This conflict has also had other spillover effects, including an international energy crisis that has required the international community to take urgent action and respond by focusing on reducing energy consumption and associated costs. We believe that Schréder offers a wide range of products and solutions that can help achieve this goal by providing more efficient and cost-effective lighting solutions, while enabling the communities we serve to better manage their infrastructure. An international crisis such as this is an opportunity to perform better and to develop a response to the challenges we face. Schréder is committed to continuing to provide solutions and innovation to help our customers meet these challenges. Agile management and highly committed teams have enabled us to perform and innovate again, ending the year on a good financial note and being recognised by our customers, even in the most (in)tense quarters!

Despite the challenging environment, we have not given up on our sustainability goals and commitments, which have been rewarded several times this year. First with the EcoVadis Gold Medal, and closer to home in Belgium with two awards from the Instituut van de Bedrijfsrevisoren/Institut des réviseurs d’entreprises (IBR/IRE): one for the Best First Sustainability Report and one for the Sustainability Report Best Linked to the 2030 SDGs Agenda. Our sustainability strategy is expanding and redefines the way we measure our performance, striving as much as possible to play our part in protecting and preserving our planet. Either in the way we operate, or in what our products can do to help customers achieve their own sustainability goals. I also welcome the fact that our employees are regularly invited to share their experiences and invite other companies to join us on this wonderful and pragmatic sustainability journey. Thank you, and let’s keep on delivering!

I am delighted to present the 2022 edition of our Annual Sustainability Report based on the Global Reporting Initiative (GRI) standards. As a family-owned business, we see sustainability as a core value. It is also important to note that sustainability is not an isolated issue within the company. Rather, it is part of our daily life and the values of our work culture, so that we can pass on this vision and leave a better world for future generations. In 2022, the word that definitely comes to mind is resilience, which is part of our DNA and the history of our family business.

Renaud Gryspeerdt Chairman of the Board

Foreword from our CEO Together for our Future, Acting responsibly for sustainable future. Looking back at 2022 … 2022 was a very different year. The end of a two-year pandemic triggered a global supply chain crisis. In February, we faced war in Europe, in a country where we have one of our manufacturing facilities with over 300 employees and close to some of our key markets. The war resulted in a massive human tragedy, but it also showed the strength of a nation, united in the defence of its country. Our Ukrainian team showed their commitment to serving our customers despite the situation. The war also caused an unprecedented energy crisis, leading to massive inflation in many of our markets. We ended the year with our highest sales ever, exceeding €500 million, with healthy growth in most of the regions where Schréder is present. Our bottom line remained healthy but was affected by the higher cost of components, which could not be fully offset by price increases.

It was a tough and very challenging year for our teams. The supply chain crisis meant a lot of extra work to continue to serve our customers well. It was often very hard work to secure the necessary components to deliver on time or to release newly developed platforms. Despite this, we managed to release more than 8 exciting new luminaire platforms, as well as the brand new Owlet IV family of smart luminaire controllers and continued to improve our Schréder EXEDRA platform, which connects luminaires and other IoT - Internet of Things - devices. In terms of sustainability, we achieved Ecovadis Gold status. Significant efforts were made to ensure that our supply chain complies with the Responsible Business Alliance (RBA) standards and best practices on human rights and the environment. We continued to reduce our carbon footprint and are now 33% below our 2018 baseline in terms of CO2 per lumen sold. We launched our Schréder Together Fund with the King Baudouin Foundation and implemented the first 5 projects to have a positive impact in societies and communities in which we operate.

Our first sustainability report, based on Global Reporting Initiative (GRI) standards, was also awarded Best First Sustainability Report and Sustainability Report Best Linked to the 2030 SDGs Agenda in Belgium. We took this as an encouraging sign to continue our work on our sustainability journey. Looking ahead … As we enter 2023, there is some uncertainty about what the near future will bring. Will higher energy costs accelerate the move to LED lighting to save on higher energy costs and reduce the carbon footprint? Or will higher inflation cause a soft or hard recession, impacting our customers’ budgets and spending and slowing the transition to LED technology? Based on customer and market feedback, we are cautiously optimistic and will be closely monitoring the market over the coming months. In the long term, we remain very positive. Higher energy prices will accelerate the transition to LED lighting as it will be more interesting to replace old HID and LED fixtures with new more energy-efficient LED luminaires. At the same time, higher energy costs have sparked a debate about dimming lights at night. Everyone wants to save energy through dimming without compromising the safety and comfort of citizens. This is driving the need for smart and connected luminaires that can support adaptive lighting schemes, where lighting levels are adjusted according to the presence of people, traffic density and weather conditions.

We are also seeing a growing demand to make our cities smarter with applications such as traffic management, parking management and environmental monitoring. More and more cities and experts are confirming the critical role that public lighting can play in enabling smart city applications as a vantage point, given the height, location, power availability and connectivity of lighting poles. Smart lighting solutions will be an engine of growth. These trends towards adaptive lighting and the intention to engage in a Smart City transition strategy represent a great opportunity to deploy the solutions developed by our Smart City Centre of Excellence, Schréder Hyperion. We see a strong demand for these solutions, which will be an important engine of growth in the coming years.

We will continue to focus on our 3 long term foundational projects that will help us to deliver AN OUTSTANDING CUSTOMER EXPERIENCE.

Flawless and digital execution

Great people

Sustainable & Local

To support all this, we live our 6 values every day: caring for customers working together entrepreneurship innovation integrity respect for people and the planet. This strategy will enable us to continue to improve our customer satisfaction while respecting people and the planet. It will enable us to grow in a stable, profitable and sustainable way, making a positive impact in all dimensions.

We are continuing our digital transformation programme, Schréder’s Way of Running Digital (SWORD), to bring the entire business onto a common and agile digital platform. SWORD is redefining and digitising our operating model to make us more agile and lean, and to deliver a great experience for our customers. SWORD also manages our products and solutions end-to-end in a digital way, which is key to efficiently meeting the diverse needs of

Our people are our greatest asset. We want to continue to co-create an environment where our passionate employees can work, celebrate, learn and have fun together. There is a strong focus on providing lifelong learning and development for our people to deliver the best customer experience and support the transition to a resilient, sustainable and connected world.

Sustainability is in our DNA and as such has been integrated into our business strategy with a focus on Planet, People and Community. In addition to driving and managing our own impact and the impact of our communities we serve, we want to partner with our customers to help them achieve their sustainability goals. supply chain on the environment and the We understand and value the diversity of specific needs in different markets. We are an organisation that combines local strength with global reach, and as such are able to adapt to local needs.

our customers with an outstanding customer experience.

Werner De Wolf CEO

Who we are Schréder Group is the leading independent outdoor lighting manufacturer in the world with more than 2 million light points sold per year. The company is present in more than 70 countries on 5 continents. The holding company of Schréder Group is Schréder SA, a privately-owned company, with registered offices at Rue de Lusambo 67, in Brussels, Belgium. 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 TM work with customers to co-create smart lighting solutions for spaces that benefit people, the community and the planet.

Our history Schréder was founded in 1907 in Liège, Belgium, as a family-owned company. At the turn of the 20th 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, Schréder Group reorganised its supply chain and industrial footprint to maintain production centres close to its customers.

The Group’s manufacturing plants supply the regional or continental markets where they are located to better serve their 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, connected, more efficient and more sustainable public spaces. At Schréder, this is called Lightability TM . Schréder is without a doubt a key partner for the city and the mobility of tomorrow.

Who we are

Our market segments

Number of luminaires sold

Millions of lumens of light output produced

Established locally to understand the market needs, we ideate with our customers to deliver smart and sustainable

lighting solutions for: Cities + Communities Road Industry

Tunnel Sports

2018 2019 2020 2021 2022

Cities + Communities

Road

Industry

Tunnel

Sports

Our proximity We produce regionally for local needs, avoiding unnecessary transport and impact

on the environment. on the environment.

Schréder Commercial presence

Schréder Production centres Australia, China, Hungary, Portugal, South Africa, Spain, Ukraine

Schréder R&D centres Australia, Belgium, Hungary, Portugal, South Africa, UK on the environment.

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.

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.

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.

Our Sustainability Strategy

Materiality assessment Our priorities have remained stable over the past two years. According to the Sustainable Development Goals Report 2022, the goals to be achieved by 2030 are in jeopardy, due to the COVID-19 pandemic and the war in Ukraine, which have exacerbated food, energy, humanitarian and refugee crises. Climate change is aggravating the situation and acting as a crisis multiplier. It is more important than ever to act and take effective measures to recover from this crisis and achieve global sustainability. Our sustainability programme fully supports this, so the most important thing is to continue the work we have started. Accordingly, our material issues have not changed significantly, but the focus has shifted to those with the potential for greater positive impact. Some of the topic names have also been reworded to ensure a clear understanding of our priorities. In 2022, we held two sustainability workshops with representatives from our key stakeholder groups to strengthen our sustainability strategy. Board: Chairman of the Board and 3 other Board members Shareholders: represented by 3 of the Board members Management team: CEO and 7 members of the Schréder Executive Team

Employees: Chief Human Resources Officer and employees from various functions (Innovation, R&D, Legal, Sustainability) Customers: represented by CEO, Chief Product Marketing Officer, Chief Commercial Officers, Chief Regional Officers and Marketing Communication Manager Suppliers: represented by Chief Operations Officer

Our sustainability strategy is derived directly from our stakeholders’ most pressing concerns and is strongly aligned with the United Nations Sustainable Development Goals. That is its strength and what drives our commitment every day.

Sustainability workshop representatives

14%

17%

10%

28%

Xavier Uhlen Group Sustainability Director

Board Shareholders Management team

Employees Customers Suppliers

Our Sustainability Strategy

The main objective of the workshops was to ensure that our sustainability strategy is aligned with the most important issues for our stakeholders, to reflect on the most pressing sustainability challenges and to develop ambitions, targets and actions to improve our impact. We also invited external experts to ensure objectivity and independent professional advice. Another objective of the workshops was to update our materiality assessment based on input from our various stakeholders, and to ensure the alignment of our updated material issues with the relevant United Nations Sustainable Development Goals (SDGs), similar to the first materiality assessment in 2019. Changes in material topics The most recent addition to the materiality ranking is ‘meeting regulations’. We are also pleased to note that the market is evolving, particularly in the European regulatory framework, where the obligation to take action on sustainability will become increasingly important in the near future. We also pay close attention to the evolution of the regulatory framework that affects our day-to-day business. We are committed to being prepared and ready for change.

Most relevant SDGs

Most relevant material topics

SDG 17 SDG 16 SDG 15 SDG 14 SDG 13 SDG 12 SDG 11 SDG 10 SDG 09 SDG 08 SDG 07 SDG 06 SDG 05 SDG 04 SDG 03 SDG 02 SDG 01

Product efficiency Climate change Sustainable procurement Quality of life Innovation Meeting regulations Fair business and growth Resource scarcity Energy consumption Light pollution Biodiversity - protecting flora and fauna Education, talent management Human rights

Well-being of our employees Diversity, equity, discrimination

0 0510 15202530

0 0510 152025303540

Sustainable Development Goals

Our Sustainability Strategy

Together for our Future Our 2022 materiality assessment confirmed the relevance of our sustainability programme, “ Together for our Future ”, launched in 2020. “Together for our Future” features three core axes; For our Planet, For our People, and For our Community. The ambitions and targets within each of these three axes have been adjusted, primarily to emphasise the importance of our ambition to help our customers reduce their carbon footprint and build a circular economy, to align our carbon footprint reduction targets with the goals of the Paris Agreement on climate change, and to embrace diversity and inclusion in all its forms.

FOR OUR PEOPLE Being an employer that offers equal opportunities to the diversity of groups living in society. Focus areas: Gender equity Diversity & Inclusion Zero breach of human rights in our value chain

FOR OUR PLANET Being responsible for our planet by reducing our own and our customers’ environmental impact. Focus areas: Take action on climate change by reducing our own and our customers’ carbon footprint Build a circular economy

FOR OUR COMMUNITY Helping customers to protect eco-systems and foster a better quality of life. Focus areas: The right light, where, when and how it is needed Lighting with a positive social impact Support less privileged areas

Our Sustainability Strategy

United Nations Sustainable Development Goals Aligning our sustainability strategy with UN Sustainable Development Goals (SDGs) is a priority. To confirm our commitment, we have ensured broader coverage of the relevant SDGs in our sustainability programme and ensured that each of our objectives is linked to relevant SDG targets. The SDG targets are mentioned in this report along with the description of our sustainability strategy.

Our Sustainability Strategy

Sustainability ambassadors’ community In the early months of our sustainability journey, we established a network of Sustainability Ambassadors in each of our companies worldwide. Our sustainability ambassadors organise a series of sustainable actions that have a positive impact in their local communities. The actions are organised around the 3 tracks of our “Together for our Future” programme and make a positive contribution to the local biodiversity (Planet), vulnerable populations (Community) or our employees (People). These actions enhance the engagement of our employees, who contribute to the achievement of our global sustainability goals. We are proud of these initiatives and want to further strengthen the role of this network of sustainability ambassadors. In 2023, each company will launch at least one local sustainability initiative related to each pillar of Together for our Future: Planet, People and Community. We want our ambassadors’ community to not only contribute to our sustainability goals, but also to inspire and engage the entire Schréder Group in our efforts to build a sustainable future.

“To mark World Clean-Up Day, our Belgian colleagues put on their gloves to clean up the streets in their local neighbourhoods. We are proud of our teams who were more than happy to participate in this great initiative to help preserve our planet.” Cynthia Giambrone , Belgium “In these challenging times, the air-raid sirens have undoubtedly unsettled our daily routine, but we continue to work as one team for a reliable, humanitarian, and sustainable Ukraine. We were happy to do our bit for Earth Day.” Khrystyna Khodan , Ukraine

Our Sustainability Strategy

“Harmony Week is a celebration that recognises our diversity and brings together Australians from all backgrounds. We celebrated diversity with a multicultural lunch. We have employees from India, South Africa, the UK, Pakistan, China, Malaysia, Indonesia, Poland, the Philippines and Vietnam who

“We took part in a charity event for the children of the Tianjin Xiangyu Autism Children school. Supporting local communities gives another dimension to our daily job at Schréder.” Bo Zhang , China

now call Australia home.” Sonia Pereira , Australia

“We held our Wellness Day where professional wellness specialists carried out various health screenings for our employees: glucose, cholesterol and blood pressure tests, a postural assessment, an eye test, weight, height and body mass index (BMI) measurements, an HIV test and a dental wellness assessment. The teams also enjoyed Zumba dancing, massages and soccer.” Carmen Amurjeeth , South Africa

“Thanks to the efforts of our employees, we were able to raise money and donate 1000CHF to Zoe4Life, an association that supports families with a child suffering from cancer. It was with great emotion that we listened to the association’s director explain the childrens difficult journey. The team was proud to offer this modest support.” Sabrina Perret , Switzerland

Together For Our Planet

As it is important for our future and that of our planet, Schréder continues to reduce the environmental impact of its operations, while helping customers to do the same.

2022 Targets Take action on climate change by reducing our own and our customers’ carbon footprint

2022 Results

2030 Ambitions

-20%

SBTi

Peter Bos Chief Operations and Technical Officer

Achieve a 20% reduction in company emissions in 2022 compared to our 2018 baseline

Achieved an actual reduction of 33%

In 2023, set near-term company-wide emission reduction targets with the Science Based Targets initiative (SBTi 1 )

Luc Joosens Chief Product Marketing Officer

Build a circular economy

80%

Sell 90% circular lighting solutions 90%

Ensure that at least 80% of newly launched luminaires score 4 stars for Schréder’s Circle Light Label

90% of new products achieved 4 stars for the Circle Light Label

(1) source - The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reduction targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.

Planet

1. Our footprint As a manufacturing company, we use the planet’s resources in our operations and distribution activities. We use energy and raw materials to develop and assemble our products, and we also use logistic services in our supply chain. Furthermore, our products consume electricity during their lifetime, which despite the technological advances of LED technology, still represents 97% of our total environmental impact according to the Greenhouse Gas (GHG) protocol. 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 do this by reducing our own material and energy consumption, and by helping our customers reduce their footprint through the use of the latest technologies in our luminaires. Nothing demonstrates our engagement better than our commitment to set near-term company-wide emission reduction targets with the Science Based Targets initiative (SBTi) from 2023. Today, we are in the target development phase and we are planning to disclose our specific actions before the end of 2023.

1.1. Our operations Reducing the greenhouse gas (GHG) emissions associated with our operations is one of the objectives of the “Together for our Planet” pillar of our “Together for our Future” strategy. In 2020, we committed to reducing our carbon footprint per lumen sold by 20% by 2022, compared to the 2018 baseline. This target was exceeded as at the end of 2022 we reported a 33% reduction in our carbon footprint per lumen sold compared to the 2018 baseline. The GHG emissions coming from our operations in 2022 were reduced to 6.8 tCO₂e/Mlum (122,337 tCO₂e for 17,991 Mlum). This achievement is a combination of higher total lumen output, resulting from an increase in the number of high flux luminaires sold (IZYLUM size 3-4, AVENTO 2), and contained absolute emissions. This shows that we are on the right track, as the efficiency of our luminaires continues to improve over the years. This has been made possible mainly by the following actions: Reducing our raw material consumption by reviewing our product design to increase material efficiency; Optimising the supply chain flow between our factories and our sales entities in Europe; Supporting alternative commuting ways for our employees (public transport, cycling, etc); Increasing use of green energy in our manufacturing facilities.

Annual footprint By sources of GHG emissions

15%

2022

72%

Product Materials Logistics Mobility Infrastructure

Annual footprint

12 10

2022 target

8 6 4 2 0

2018 2019 2020 2021 2022

Reduced material consumption In 2022 we continued to work on our luminaire designs to reduce material consumption. Not only are our new products designed with this eco-friendly philosophy, but we also decided to look back at our product portfolio and significantly redesign our existing products to reduce their aluminium content. Despite our strong commitment, our broad product portfolio does not allow us to optimise everything at once, so we started with our high runner products to make the biggest positive impact in the shortest time. Good examples of new products in 2022 are the AMPERA EVO range, where we have reduced the aluminium content by an average of 15% for all sizes, or the AXIA 3 EVO 1, where the aluminium content has been reduced by 50% compared to the previous AXIA design. While our engineering teams are improving our product portfolio with new, lighter products, our sales team is working hard to promote these solutions, resulting in a continuous reduction in the material emissions of our products. In 2022, we achieved a 26% reduction compared to our 2018 baseline.

Thanks to these actions, we have been able to provide citizens and communities with an increased lumen output (more light), improving safety and well-being in public spaces, without aggravating our environmental impact. In addition to these actions, we continue to look for ways to improve our global waste management at our factories through our different local programmes that promote reuse, recovery and recycling. Since we started measuring the environmental footprint of our operations, we have identified the following 4 main emission sources: 1. Product materials 2. Logistics 3. Employee mobility 4. Infrastructure I. Product materials The main source of GHG emissions is related to the materials we use to produce our luminaires. This accounts for 72% of our total company emissions.

Product material emissions

2018 2019 2020 2021 2022

Planet

Alternative materials The mechanical parts of our luminaires are typically made from a combination of the following 4 materials: aluminium, steel, plastic and glass. Today, aluminium is the most widely used and although it has a lower emission factor than steel or plastic, 78% of the emissions from our mechanical parts come from aluminium. Thanks to the efforts of our purchasing department, the aluminium alloy that we use is made from 100% recycled raw material, which reduces the emissions by half , but it is still significant.

We use less plastic, and due to its low recyclability rate, we aim to keep the plastic content of our products low. However, the optical parts can only be made from plastic, so we must continue to keep looking for alternatives that have a lower environmental impact. The availability of bioplastics appears to be a valid solution that we will keep exploring to solve this problem and we have already started defining suitable materials to replace all the plastics we use with bio-based alternatives.

Our plan is to complete material testing and validation by the end of 2023, and to replace the fossil-based plastics we currently use with bio-based plastics from 2024.

Emissions of materials consumed

2022 materials consumption

10,000 8,000 6,000 4,000 2,000 0

0.8 0.6 0.4 0.2 0

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

Planet

II. Logistics The second major source of GHG emissions from our operations is logistics, which accounts for 15% of our total company emissions. At Schréder, we purchase a wide range of components, including aluminium, glass protectors, drivers and controllers from various suppliers to produce our luminaires. They are classified as either Group suppliers or local suppliers. Group suppliers represent over 80% of our total spend and work with the Schréder Group purchasing team. In total, 70% of these suppliers are located in Europe. The factories are in direct contact with the local suppliers who are usually located nearby. We successfully completed the Hermes project 2 in 2021, and since then we have maintained an optimised supply chain flow between our factories and sales units. This has not only helped us reduce our logistics costs, but also reduce the carbon footprint associated with transporting our goods. We are currently working on the next phase to optimise our inbound flow as well, which we will complete by 2024. In addition to optimising the supply chain flow, we have also been working on optimising packaging to ensure the best compromise between packaging material consumption and transport load capacity. One of our successful projects in 2022 was the improvement of the IZYLUM packaging. The redesign solved the problem of double stacking the pallets without risking damage to the luminaires. Since the implementation, we only send fully loaded trucks with IZYLUM products from Ukraine to Western Europe.

In 2021, we had achieved a 18% reduction in logistics-related GHG emissions compared to 2018, and in 2022 we almost doubled this to 33%, although this significant reduction from 2021 to 2022 is largely due to a huge increase in lumens sold over the same period.

Logistics emissions By transport mode

11%

89%

Road Non-road

13.2 Integrate climate change measures into national policies, strategies and planning.

(2) Optimising the supply chain flow between our factories and our sales entities in Europe

Planet

III. Employee mobility Employee mobility includes all business travel by employees, including company cars (private and business use). In 2020, the COVID-19 pandemic had the greatest impact on employee mobility. In 2021, many restrictions were lifted and we were able to visit more customers locally, which impacted employee commuting emissions and resulted in a 55% increase compared to 2020. Although this increase in emissions seems high, it is still well below our base year emissions. From 2022, we lifted all restrictions on air travel, but we continue to strongly encourage colleagues to consider alternatives and consider the importance of air travel before buying a ticket. During the COVID period, we adapted our lives to work more remotely, and digital infrastructure has also improved, resulting in changes that have impacted our approach to business travel. Despite restrictions being lifted, our air travel emissions have not returned to pre-pandemic levels and are still 31% lower than in 2018. Another important action we have taken is to implement home working policies in many of our offices. Depending on local legislation, we allow our office staff to work from home a few days a week, further reducing the emissions from employee mobility. Employee mobility emissions

IV. Infrastructure The infrastructure category includes our factories and offices. The emissions from our infrastructure come from the consumption of natural gas, electricity, air-conditioning, office materials, water and waste treatment. It represents 4% of our total company carbon footprint. GHG emissions coming from our infrastructure decreased by 53% in 2022 compared to 2018. This reduction is mainly due to lower energy consumption, and an increased share of green electricity in both our factories and offices.

European Mobility Week In September 2022, our Belgian teams took part in European Mobility Week 3 . Our colleagues committed to using only alternative commuting solutions for the entire week. Some of them used bicycles, others walked or used public transport, but during the week everyone experienced how their daily commute could be more sustainable. We also measured the carbon footprint savings of this campaign and it was 1,252 kg CO 2 e which is equal to a one-way flight from Paris to Los Angeles.

Infrastructure emissions

Waste Office materials Electricity Cooling Natural gas & Heating fuel

0.7 0.6 0.5 0.4 0.3 0.2 0.1

2018 2019 2020 2021

2022

Energy consumption

Electricity Heating

120,000 100,000 80,000 60,000 40,000 20,000

1.5

Employee commuting Business travel

1.0

0.5

2018 2019 2020 2021

2022

2018 2019 2020 2021 2022

(3) source - https://transport.ec.europa.eu/media-corner/events/european-mobility-week-2022-09-16_en

Planet

Main initiatives to reduce the environmental impact of our infrastructure include the following:

Non-hazardous waste treatment 2022

Factories We use 2 types of energy in our factories, electricity and natural gas. In 2022, 69% of our energy consumption came from natural gas and 31% from electricity.

Electricity consumption - factories

Renewable sources Non-renewable sources

8,000 6,000 4,000 2,000

Energy consumption - factories 2022

2018 2019 2020 2021

2022

87%

In addition to the increased share of green electricity, our total electricity consumption in our factories decreased by 10% in 2022 (5,581 MWh) compared to 2018 (6,188 MWh) thanks to a more conscious use. Another goal for the coming years is to assess how we can reduce our natural gas consumption and switch to renewable sources by 2030. This action will also help us achieve our SBTi targets. As well as our efforts to reduce our energy consumption, we have continued to work on waste management to identify opportunities for further improvement. In 2020, the majority (84%) of our factory waste was recycled, rising to 87% by 2022. In addition to the increase in recycling, avoiding excess consumption is also a priority in our strategy. For example, in our inbound logistics process, we use a lot of reusable crates with our suppliers. Schréder’s total non-hazardous solid waste in 2022 was 1,728 tonnes, with a recycling rate of 87%. Our recycling rate increased by 9% compared to 2018 (78%).

31%

Recycling Landfill Incineration

69%

Electricity Natural gas

Non-hazardous waste 2022

800 600 400 200 0

Since 2020, we have put a strong focus on increasing the use of green electricity in our factories. In 2020, we switched the electricity supply of our largest factory in Spain to 100% green electricity. In 2021, we achieved a similar transition at our factory in Hungary and in 2022 at our factory in Australia. At the end of 2022, 3 of our 7 factories were only using renewable electricity, resulting in 62% of our total electricity consumption being green. We are committed to continuing these efforts and aim to convert our factories in Portugal and South Africa to green electricity by 2025.

Planet

Our production sites also generated some hazardous waste, mainly from the powder coating process. The total amount of hazardous waste we generated in 2022 was 402 tonnes, of which more than 50% was recycled. We are continuously working to reduce the amount of hazardous waste generated. A good example is our plant in Spain, where by optimising the painting process and opening a second painting line for small series, we achieved a 32% reduction in total powder paint waste from 2020 to 2022.

Offices Through our network of Sustainability Ambassadors, we have organised a number of local events to raise awareness among employees about how they can do more to reduce our global footprint. The ambassadors usually share small awareness posters via email, with tips and tricks on how to use energy and water more wisely, or how to reduce our waste. These individual actions can add up to make a significant impact. Thanks to awareness campaigns and new home working policies in some of our subsidiaries, our electricity consumption has fallen by 50% compared to the base year (2018), while the share of green electricity in our office buildings has increased from 29% to 62% over the same period.

Electricity consumption - commercial offices

12.4 By 2020, achieve the environmentally sound

Renewable sources Non-renewable sources

2,500 2,000 1,500 1,000 500

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.

2018 2019 2020 2021

2022

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.

Planet

Advantages of adaptive and connected light Public street light providers (mainly hardware providers) are moving into the smart city business, departing from the traditional lampposts and luminaires. They are now adding new services by offering luminaire controllers using IoT technology (network-as-a-service), complemented by the licensing of software and central management platforms that enable the remote control of public lighting, under a software-as-a-service business model, that may quickly evolve into a platform-as-a-service business model (as more IoT devices are connected to such platforms). This landmark development in the public lighting industry opens up new opportunities to replace older HID (High Intensity Discharge) lamps with more advanced and energy efficient LED (Light Emitting Diode) lamps, providing a quick return on investment (as this replacement can generate up to 50% energy savings initially). In addition, city managers can now remotely adjust public lighting and set different dimming profiles according to their specific needs (e.g. depending on traffic and movement or weather conditions), achieving further energy savings that can be as high as 80%.

Product Environmental Profile To provide our customers with credible and transparent information on the environmental impact of our road and decorative luminaire ranges, we introduced the PEP (Product Environmental Profile). Developed in collaboration with an independent agency (in accordance with the principles of ISO 14040: 2006 and EN 15804:2012 + A2:2019), the PEP summarises the Life Cycle Assessment of the luminaire by examining its environmental impact throughout its life cycle, from raw material extraction to end-of-life. The PEP is available on request to all customers to help them prove compliance with regulations and reassure the community of their commitment to minimising their environmental footprint.

1.2. Our products The greatest environmental impact of a luminaire is the amount of energy consumed over its lifetime. Replacing old installations with new technologies that are more energy efficient therefore has a significant positive impact on the environment. 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 been significantly reduced. Today, almost 100% of our sales of luminaires are LED luminaires. The total greenhouse gas emissions resulting from the use of the products we sell, depend on several factors. Firstly, they depend on the energy consumption of the product over its entire lifetime, and they also depend on the location of the installation, as the emission factor of electricity varies from country to country. The area where we have an important leverage is the energy consumption of our products. Our engineers and electronics suppliers are working hard to improve product efficiency as far as technology allows and to develop adaptive and connected lighting solutions to optimise product use and maximise energy savings. The calculation of the greenhouse gas emissions of our products in the use phase is currently being validated, and reduction targets will be set as part of our SBTi target setting process.

Planet

Schréder EXEDRA Cognizant of this market development, Schréder Hyperion - the Schréder Group’s business unit dedicated to the research and development of Smart City and Beyond Lighting solutions - developed Schréder EXEDRA, a state-of-the-art remote street lighting management platform with the flexibility to allow customers to explore and evolve into Smart City domains beyond the lighting environment. Schréder EXEDRA provides data security with encryption, hashing, tokenisation and key management practices that protect data across the whole system and its associated services. The entire platform is ISO 27001 certified. It demonstrates that Schréder EXEDRA meets the requirements for establishing, implementing, maintaining and continuously improving security management. On average, Schréder EXEDRA was able to generate up to 22% of additional savings (in addition to the savings generated by replacing old lamps with LEDs) over a period of 13 months in projects that were monitored. In 2022, we successfully installed TECEO luminaires with motion sensors connected to the Schréder EXEDRA platform on the Borkener Aa river path in Germany. Every year, residents and tourists take advantage of this wonderful countryside to cycle, hike or simply enjoy the outdoor life.

When relighting the bike path, the council wanted an adaptive lighting system with motion sensors to limit the number of operating hours of the luminaires to a minimum. Managed by the Schréder EXEDRA platform, the luminaires are dimmed when the path is not being used. Thanks to the motion sensors, the light only increases to 100% when people arrive to ensure a safe and comfortable passage. As the street lights are only switched on fully for a limited time, any potential light pollution has been dramatically reduced. As you ride along the bike path, you don’t even notice any difference in the lighting levels. The lighting gradually increases, harmoniously. We are delighted with the new lighting system that has been working perfectly since 2019.

Rainer Labs Clerk - Borken Council

9.5 Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending.

13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

Planet

2. Circular design Many of the lighting solutions we installed 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 possible environmental impact, we decided to integrate circularity concepts into the design of our luminaires. Circularity is the second objective of the “Together for our Planet” pillar of our global sustainability programme. Circle Light Label As a global lighting company, we are a member of various standardisation bodies related to LED luminaires, light engines, modules and sensing/communication modules. As there is currently no standard certification for circular economy compliance in the lighting industry, we decided to create one internally. When measuring the circularity of our luminaires, we take into account circular economy aspects such as lifetime, durability, repairability, upgradeability and recycling potential. Depending on the design, the luminaire receives a score for each criteria and an overall score, which is reflected in the number of stars. The highest rating is 4 stars. Our target for 2022 was to ensure that 80% of our new developments achieved 4 stars. We are proud to have exceeded this target with a result of 90%.

In the next phase, we want to develop this tool further to provide us with an on-going technical challenge. In 2023, we plan to introduce new rating categories and update our scoring system so that our luminaires are assessed against even stricter standards. Finally, we are also looking for international standards that our process could meet. We intend to have our process certified once we have identified the right standard.

extracting raw materials

2022 Targets 80%

parts supply

recycle

New developments must achieve 4 stars for Schréder’s Circle Light Label

parts harvesting

manufacturing

refurbish

distribution

service

New products scored 4 stars. We also analysed the high-runners in our portfolio and 24 of the 45 luminaires scored 4 stars

user

incineration & landfill

Planet

Schréder retrofit solutions When a luminaire can still be used for a while, but the light source needs to be replaced, retrofitting offers a sustainable solution. By upgrading the optical unit of a luminaire with the latest LED technology, the luminaire is given a second life. This is a good solution for reducing our footprint on the planet. We offer high-quality retrofit solutions for a range of luminaires. Our retrofit solutions contain only high-quality components so the luminaire will last for years. Using the latest lighting technology and electronic systems, these solutions are also very efficient and can reduce energy consumption by up to 70% compared to the original light source.

Tilburg retrofit programme

In Tilburg, we have a lot of SAPPHIRE luminaires that are about ten years old. They still work well, but they were installed just before LED lighting took off. We are in the process of converting them to LED technology so we are reusing the SAPPHIRE luminaires in a sustainable way.

Patrick van de Wiel Municipality of Tilburg

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.

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84