Dialogue & Engagement Report

MANDARINE GESTION

Dialogue &

Engagement

Report

2021

Updated March 2021

PREAMBLE

Dialogue with the companies in which Mandarine Gestion invests on behalf of UCIs is a key component of our fiduciary responsibility. Increasingly, we are encouraging companies to establish extra-financial targets to protect them against any potential impact on their financial valuations. The objective of our engagement policy is to enter into constructive dialogue with companies in order to urge them to protect themselves against the non-financial risks that may arise during the course of their activities or to encourage them to seize opportunities. Ultimately, the purpose of shareholder engagement is to take a stand on ESG issues and require targeted companies to improve their practices over time, via a structured approach and long-term monitoring.

IMPLEMENTATION

Mandarine Gestion’s engagement consists of several strategies:

‐ Continuous engagement:

 identify the ESG issues of companies in the portfolio via constructive dialogue with management teams;

 urge companies to make public declarations on their sustainable development strategy, backed up with relevant ESG indicators;

 support companies in a process of continuous improvement.

‐ Targeted engagement:

 ask companies affected by controversy or current events how they manage these situations and which corrective measures they implement;

 companies with low ESG ratings that could be sold as part of our investment processes are also included in the targeted engagements;

 participating in collaborative engagement initiatives (FIR Dialogue and Engagement Committee) is also part of our targeted engagement activities.

‐ Engagement by vote:

 exercise our shareholder rights (proposing and/or voting on resolutions, exchanges prior to general meetings regarding the ESG issues identified, buying, selling or holding positions on a case-by-case basis). A separate voting report is produced annually alongside this Dialogue and Engagement Report.

FUNDS AFFECTED

 All open-end UCIs in the Mandarine Gestion range are affected.

OVERVIEW OF OUR SHAREHOLDER ENGAGEMENT IN 2020

CONTINUOUS ENGAGEMENT: We spoke with portfolio companies during 90 meetings dedicated to ESG topics. The themes discussed during these discussions are summarised in the table below:

Topics discussed Date Company Environment Social Governance Stakeholders Consumption of water and chemicals in laundry. Mix of Succession planning. Integration of CSR 09/01/2020 Elis the vehicle fleet. Heating efficiency of machinery. Single- Fixed-term contract turnover rate. criteria in the remuneration of top Impact of strikes in France. use plastic. management. Hoffman Green Carbon footprint divided by 5. Durability of product 09/01/2020 Cement Customer. Patent. European regulations materials Technologies 09/01/2020 ALD Vehicle fleet mix. Eco-driving, carpooling Cyber risk for platforms. Growing digitisation Partnerships with Italian utilities Retention of employees. Warehouse AFEP MEDEF code. Eco-driving automation. Accident rate. Health & safety of Independence of the Board and Audit 09/01/2020 ID Logistics Impact of strikes Euro 6 vehicle fleet employees. Committee. Difficult working conditions Failure to respect minority shareholders Employer attractiveness. Overhaul of the Estate of Isabelle Kocher. Integration of 10/01/2020 Engie Coal phase-out. ETS. Science Based Targets Initiative Partnership with universities resource pool. CSR in the bonus. Inclusion of CSR criteria in the remuneration Relationship with Sherpa and other 10/01/2020 Teleperformance Energy consumption of sites Mapping of the duty of care. Training. of directors NGOs Competitiveness in renewable energy. Impact of fires in Gender parity. Issues relating to the supply of 10/01/2020 Neoen Compliance with the AFEP MEDEF Code Audited, quality suppliers Australia battery metal. Total's impact on society. Total is said to be Some cities and communities Signed up to the Paris agreement, but not in compliance Application of the vigilance plan Proposal to 24/01/2020 Total responsible for more than 1% of global criticise Total for not complying with it. No objective yet on scope 3 work on a climate resolution for the 20 AGM emissions with its climate commitments Respect for sites. Reduction of water consumption. Use Consultation and inclusion of of renewable energies. Waste management A score not Employee follow-up and support following the Presentation of the new CEO Mr Caillère 04/02/2020 Pierre & Vacances stakeholders during a new project awarded by CDP. No AGM development, no vegetable announced plan. and his vision for the group Customer satisfaction garden... Electricity consumption, local, quality food Building Investors are happy. Future Working conditions for employees and 07/02/2020 Korian construction and recycling. These discussions are Divergent European regulations satisfaction surveys with improving quality for customers. ongoing but nothing is definitive or focused. customers and suppliers. There is strong demand among Targets in terms of carbon neutrality, reduction of water 62% of the workforce is based in France within stakeholders for more consumption, use of recycled materials Signature of the Employee shareholding: 22 new shares 27/02/2020 Hermès the group, i.e. 8,846 employees Hermès has transparency on the objectives and fashion pact last August Latest CDP score B and 72/100 every 4 years. 41 factories in France out of 52 results concerning environmental for Sustainalytics issues Call ahead of the 2020 AGM Structure of variable remuneration (ESG criteria integrated but more quantitative 14/02/2020 Edenred criteria needed). Renewal of a director for the fourth time (not easy to find such a competent profile) New Managing Director Laurent Carme, Main objective, lower costs but not at any price formerly of Alstom in the wind power The logistics chain is controlled. Water + Electricity = Hydrogen and not at the cost of human capital; every segment. Still need subsidies. Integration of 11/03/2020 McPhy Energy Alkaline electrolysis = production of hydrogen from water contributor is important Investment in human Develop mainly in European markets (Italy, employees. Need other actors to and electricity through an electrochemical reaction. capital Qualified and motivated sellers in the Germany, France) For the moment, strong realise the transition. value chain. technological advantage Sensitive political and social context due to the Carbon neutrality objective unchanged in 23/03/2020 RVE Share of renewables in the energy mix. Corona Virus. Factories shut. line with the European Green Deal.

Topics discussed Date Company Environment Social Governance Stakeholders Impact of stoppages of activities on Programme for new renewable capacities installed and Impact of Covid 19. Health & safety of the value chain, in particular the 14/05/2020 Iberdrola under construction. European Green Deal employees supply of spare parts to run factories (turbines, etc.) Gender equality: CDP score A (on climate and water) The Group’s Executive Committee has been The gender equality index was 84/100 for the Air Liquide is the world leader in gases, technologies and enhanced, with four new members. year 2013. This result is the result of a 04/06/2020 Air Liquide services for industry and health. Younger, more international and more constant remuneration policy. A confidential The objective is to reduce carbon intensity by 30% by female, with a rich variety of profiles and whistleblower system is available to all 2025 based on 2015 emissions. skills. employees. SDGs (7,8,9 & 12), relative importance of different criteria, 04/06/2020 Alfen Carbon emissions reduction targets Integration of CSR policy discussion with key stakeholders, transparency Enhancing the contribution of SDGs (7,13,9,8,14) Our Two-tier board, which means management Possibility of making the link goal is to prevent oil (products), pollutants and dangerous and supervision are separate. There is close between SDGs (7,13,9,8,14) to Health and safety policies are robust: no 04/06/2020 Boskalis cargoes from salvaged ships from entering marine collaboration between the Supervisory which the group has contributed injuries, no accidents. ecosystems. Examples: - Chemical tanker with 25,000 Board and its committees, the Management and the amounts allocated by tonnes of methanol in the Gulf of Oman Board and stakeholders. project. Enel’s position in the new world of energy = leading network operator: by number of end users, the world's largest player in renewable energies: by installed 50% of women involved in the recruitment 10,021 of people involved in digital skills 04/06/2020 Enel capacity. Includes 3.7 GW managed capacity process training Largest retail customer base in the world including customers in the free and regulated electricity and gas markets Renewable energy strategy: commitment to 7.5 GW Integration of criteria and indicators installed capacity in 2025; emission reduction targets concerning sustainability issues in the Commitment to shareholders with (absolute emissions, methane intensity, gas burning); 04/06/2020 Repsol Staff safety programmes and training remuneration of directors, objectives of the dividend maintained; safety carbon capture and storage: an important element of the gender diversity and independence on the within operations. carbon neutrality ambition; implementation of circular board of directors economy projects CDP Reporting in 2013: final score B (management The projects in 2019 led to the creation of level), work to develop reporting on scope 3 emissions 8,000 jobs with no serious injuries. Local value Engaging with key stakeholders to 04/06/2020 Scatec Solar (commitments with suppliers in their value chain), setting creation: development, job creation, training, raise sustainability issues. a target for reducing carbon emissions (scope 1 & 2 only) community involvement in line with CDP Health & safety of employees. Global Framework Agreement, social involvement Carbon neutrality by 2025 (already achieved excluding Supervisory board, share of remuneration Commitment to SDGs 7 & 13 (core 04/06/2020 Siemens Gamesa projects: local development cooperation scope 3 emissions) linked to ESG performance business) and also 4 & 8. programmes, access to education and skills development

Topics discussed Date Company Environment Social Governance Stakeholders Diversity policy: diversity, gender, age and Sharing values and ethical Sustainability commitments, Fashion Pact G7: addressing seniority. Gender parity among employees and requirements with suppliers: global warming, biodiversity, protection of the oceans, Percentage of women and independent 08/06/2020 Monder management, health and safety certification for raising awareness, training and circular economy; first bio-based and carbon-neutral board directors. employees (OHSAS 18001) education; open and constructive jacket and launch of a range of recycled clothing Inclusion of ESG and sustainability criteria dialogue with various stakeholders in director remuneration The supplier selection and SBT targets for 2030: Scope 1.2 -25% Commitment to the United Nations Sustainable monitoring process is very detailed Scope 3 -18% Development Goals essential. Focus on the six and in line with best practices. All 08/06/2020 Essity Essity is aiming for 100% recyclability and 85% global goals for people and nature SDGs suppliers must sign up to and renewable or recycled packaging materials by 2025. (3,5,6,12,13,15) abide by the Essity Global Supplier Standard. Raised awareness of one billion consumers through information on Objective 2040: becoming a company with a positive recycling. impact on the climate. 08/06/2020 Henkel No announcement on a living wage More than 1,300 Henkel New packaging targets for 2025: Commitment on scope employees have participated in 3, 30% reduction per tonne of product by 2030. waste collection campaigns around the world. Beautiful products, future packaging, sustainability goals, Supplier security, empowerment of 08/06/2020 Anheuser-Busch InE Employee safety local raw material rates small farmers. How Carbios technology intervenes in the life cycle of Carbios technology contributes to 22/05/2020 Carbios plastics and promotes the transition to a sustainable SDGs 12,13,14 plastics economy Enagás is also participating in the construction of the Trans Adriatic Enagás strengthens and develops national and Pipeline (TAP), which will transport 19/05/2020 Enagás international projects to contribute to the decarbonisation gas to Europe from the Caspian process and improve air quality. Sea, connecting Greece, Albania and Italy. BNP Paribas 2020 Corporate Engagement Manifesto: “We will Announcement of a timetable for full phase-out of thermal 1.9 billion in support for social 180 billion euros to help achieve the UN strengthen our commitment to 04/06/2020 BNP Paribas coal, and the end of funding for non-conventional oil and entrepreneurship by end-2019 SDGs by end-2019 society, notably in line with the gas. Stronger commitment to renewable energies United Nations’ 17 Sustainable Development Goals.” New investment of 500,000 euros to support eight renewable energy projects in Mozambique, Kenya, Tanzania, Malawi and Investments in cultural projects Nigeria, supporting more than one million Digital investments of 0.8 billion euros to Net zero commitment by 2050 Alignment with a 1.5° and over 60 social initiatives. 11 18/06/2020 EDP people. increase asset intelligence, operational and scenario million in support in most of their The funding of half a million euros aims to process efficiency. geographic locations. promote access to clean energy in the most remote and disadvantaged areas and, thus, to combat energy poverty in this territory.

Topics discussed Date Company Environment Social Governance Stakeholders The Saint-Brieuc project reaffirms Iberdrola’s commitment to the The first 1,100 jobs materialised in France with French market, in which it plans to The company plans to harness 2,000 MW of offshore the signing of contracts related to the Saint- Iberdrola has just announced a takeover bid invest up to 4 billion euros over the wind power by the end of 2022 and 3,000 MW by 2024. Brieuc wind farm. The installation in the port of for the Australian company Infigen Records. next four years. This will be 18/06/2020 Iberdrola An acceleration of investments which will this year reach Brest marks a decisive step in the The operation relates to all shares in the Iberdrola's first offshore wind the historic record of 10 billion euros, i.e. 40% more than establishment of a sector linked to marine Australian group, and is estimated at 840M turbine installation in France. With the average over the last five years. energies in France and more particularly in AUD. 496 MW, Saint-Brieuc will have Brittany. sufficient capacity to supply clean energy to 835,000 people It is 23% owned by Total. Total Eren is a subsidiary of EREN Groupe dedicated to It has signed its first large-scale acquisition 18/06/2020 Total Eren renewable energies, the leading player dedicated to with Novenergia for more than one billion preserving natural resources. euros and is stepping up its involvement in wind and solar power in Southern Europe. Renewables: 28% of ENGIE’s production mix in 2013 with a target of 58% by 2030 (offshore, onshore, solar, hydrogen, biomass, etc.), ENGIE is on track towards a 18/06/2020 Engie Renewables Employer attractiveness 2°C trajectory (Paris Agreement), committed to reducing greenhouse gas emissions in line with SBTs and coal phase-out by 2024 Pure player in renewable energies: (64% solar, 29% wind Integration of ESG factors into its 18/06/2020 Neoen Compliance with the AFEP-MEDEF code & 7% storage) strategy and operations Decarbonisation targets: carbon neutrality by 2040, support for the Paris Climate Agreement, reduction of carbon emissions (-51% since 2012) Carbon neutrality in line with the European Commitments to 7 Sustainable 18/06/2020 Rw e Coal phase-out by 2038 at the latest Green Deal Development Goals (SDGs) Share of renewables in the energy mix (target: + 1.5GW per year) 18/06/2020 SolarPark Integrated solar PV platform Pure player in renewable energy (wind, solar, biomass, 18/06/2020 Voltalia hydro) New HR policy. Attracting talent, motivating Ethical committee reports to the Board. Carbon footprint of building stock. High environmental 23/06/2020 Korian nursing staff. Staff development. Focus on Focus on a CSR component in variable Nursing home bashing. quality label. C02 emissions reduction target. training. Digitisation and robotics. director remuneration Energy efficient lighting solutions. Discontinuation of Employment, improved yields in indoor Variable directors’ remuneration includes 23/06/2020 Signify Materiality analysis plastic in packaging. agriculture 25% of sustainable KPIs. Enhanced integration of ESG. Directors’ Enrichment of the climate range. Coal policy. Launch of a remuneration. Difficulty forming shareholder 07/07/2020 Amundi Equity ratio. Talent retention Focus on SDGs green bonds fund. European taxonomy coalitions. Voting policy. Active vs. passive management. Pure player in plastic recycling: Degradation of PET and PLA with patented enzymes (produced by Novozymes) in a reactor (closed medium) with reconstitution of recycled plastic with the same petrochemical properties as virgin 30/07/2020 Carbios plastic. Promising technology that directly participates in the circular economy and a more sustainable future through waste management and plastic recycling.

Topics discussed Date Company Environment Social Governance Stakeholders Target: 100% green portfolio by 2025. Energy Comfort, health & well-being of building users. Rationale, stakeholder committee. CSR New responsible procurement consumption by type of asset and by geographic area. 07/03/2020 Covivio Increasing services. Digitisation underway, objectives in variable top management charter. Creation of 4 value chain Integrating the entire life cycle into carbon reduction digital platforms rolled out remuneration. Balanced Board of Directors. verification tools. targets Increase in the share of renewables and biomass. Coal Promoting labour relations. Establishment of 07/03/2020 Albioma phase-out by 2025. Energy conversion, international local HR managers. Employee share Interaction with ESG rating agencies. know-how roll-out, solar energy roll-out. ownership scheme Value chains. Responsible Scope 3 integration and measurement targets. Talent retention, interactions with farmers. 07/03/2020 Glanbia Materiality matrix procurement policy. Product Sustainable agriculture. Impact on local employment. traceability. Diversity, moving women to positions of Implementation of the Paris Agreement in CDP supply chain tool. Mapping of 08/03/2020 Signify New carbon neutrality plan. Circular economy. responsibility. Data security in the digitisation sites and along the supply chain. human rights risks. of activities. Enhanced responsible Eco-responsible packaging. Circular economy. Roadmap for social audits in Chinese procurement policy, Code of Ethics, CSR criteria in variable 03/03/2020 SEB Reparability and lifespan of products. Reducing the factories. Exceptional agreements on implementation of risk mapping remuneration carbon footprint. teleworking. Gender equality. (duty of care). Increased customer preference Remuneration of directors and inclusion of Science Based Targets, Scope 3 included. Functional R8D expenditure, innovation. 03/03/2020 Essity AB Employee health & safety management carbon performance. SDGs in the group’s economy. Dependence on materials. Responsible procurement policy. strategy. Business ethics. Progressive assessment of Biodiversity and climate. Scope 3. Energy mix. Employee health and safety is an absolute Business ethics. Talc case in the US 10/03/2020 Imerys suppliers on social and Rehabilitation of natural sites priority. expected to end. environmental issues (Ecovadis) Inclusion of a Sustainable Development Local job creation. Site Doubling installed solar capacity. Circular economy. Respect for human rights. Health & safety in 10/03/2020 Scatec Solar expert in the Executive Committee. development, licence to operate. Climate reporting decline. Young average age: 37 years Geopolitical risks of emerging countries Inclusion of local communities. Reporting of avoided emissions ("scope 4"). Toxicity of Innovation, employee health and safety. Materiality risk. Directors’ remuneration. 10/03/2020 Recticel products used. Reduction in the use of raw materials in Factory automation, impact on employment. Diversity and complementarity of the Board manufacturing processes. R&D expenses. of Directors. Workforce loyalty. Strong family business Directors’ remuneration. Double voting Well-being of employees internally 10/03/2020 Ackermans Pending formalisation of a general environmental policy. culture. rights in Belgian holdings and in holdings Supports all 17 SDGs but three have been First company in the sector to sign the Paris identified as the most important in terms of Lack of transparency on human One of the largest private forest owners in the world. Agreement and first forest products 07/03/2020 Stora Enso impact: SDG 15 life on earth, 13 climate action rights matters and in particular on 100% of the wood comes from sustainable sources. company to set scientific objectives and 12 responsible consumption and due diligence procedures. approved externally by the SBT. production. The CSR report is included in the annual Commitment to SDGs. Product labelling with the Barco label. Circular economy Employee satisfaction and training report. 10021 of key suppliers have 07/03/2020 Barco NV and product lifespan. questionnaire. The profit-sharing agreement includes CSR signed the group's declaration of objectives. conformity. Reduced consumption of paper, energy and water and 3,621 employees trained (+ 6pts) vs. 2018. reduced carbon emissions. 5,421 non-French people in governance, 180 employees involved in charity 07/03/2020 ALD Satisfaction questionnaire: 88% of employees 150,000 green vehicles under management (+50,000 vs. 20% women (+ 3pts) events in 2018. are proud to be part of ALD (+3 pts) 2018) CSR training since 2016 for all employees. Limited impact. The subject of employee travel has been Rationale since 2020. Diversity on the The 50 largest suppliers apply the 07/03/2020 Ipsos Anonymous whistleblower system in place, 66 settled with the crisis. Board. Data protection. clauses of the global compact. alerts reported in 2019.

Topics discussed Date Company Environment Social Governance Stakeholders Green products in the portfolio. 9% investment in Commitment to improve the lives of 2 billion Transparency on tax contributions for all 03/03/2020 Philips innovation. Achieve 100% eco-design in 2025. people per year by 2025 through innovations. countries in which the group operates. Green Deal for Europe. 03/03/2020 Arcelor Mittal Carbon tax at Europe’s borders. Green hydrogen. Employee safety and training. 30% reduction in emissions. Human capital is the group's priority CSR roadmap integrated into the group’s Objectives and axes to be defined soon on energy New roadmap to include more (employees, customers, human resources). current management strategy. KPIs 10/03/2020 Orpea consumption, sorting, healthier food, reduction of stakeholders in healthcare Two satisfaction surveys for employees. validated with the operational staff. 25% of emissions and mobility. technology. Purchase of a training centre in France. women in the Executive Committee. 30% reduction in carbon intensity by 2025 based on 2015 Group-wide satisfaction questionnaire but The board of directors is working on a emissions. 10/03/2020 Air liquide findings remain confidential. succession plan which will remain Involved in the SBT initiative since 2019 and awarded a Gender equality index is 84/100 for 2018. confidential until the last moment. double A by CDP. 80% energy efficiency by 2030. Development of an A female president on the board of internal tool on product identity (energy, eco design, use Employee mobility. Falling accident rate. 11/03/2020 Legrand directors. 45% of women on the board. The of materials, product lifespan). Environmental objectives Strengthening sanitary regulations. exercise on taxonomy is not yet done. validated by the SBT. Paris Agreement, emissions avoided (scope 4). French energy recovery plan. European taxonomy. Science Appointment of new CEO. Disappointment 08/03/2020 Saint Gobain Based Targets. Monetisation of carbon emissions around the current CEO's strategy. avoided. Emissions saved and emissions avoided. Development of a tool for monitoring and measuring carbon emissions for Digitisation of activities (40% of turnover). Double voting rights and presence of anti- 15/03/2020 Schneider Electric its own account and those of customers. Referential on Attracting qualified personnel, visibility with takeover mechanism. No separation of avoided emissions. Inclusion of carbon price in Aveva. Chairman/Chief Executive Officer functions investment projects. Environment and sustainable agriculture by 2025 for the group, aim to reach 100% of winegrowers by 2028. 25% absolute reduction in carbon emissions (Scope 1 & 2) 28/07/2020 Rémy Cointreau and 30% for Scope 3. 100% renewable electricity for the group. Achieve 100% eco-responsible packaging by 2025. High levels of competition in the market. Risks (regulatory, Pure player in renewable energy. Solar actor first. Discussions about a possible capital technical, security) that could block 24/03/2020 Neoen Enhancing energy storage activity. Strong exposure in increase. Introduction of minority various projects. Europe, OECD area. Also present in Argentina. shareholders. Strong relationship with suppliers, no single-supplier practice. Environmental issues included in site Science Based Targets objectives. Reduction of carbon Responsible procurement 24/03/2020 Lafarge Megatrend of the explosion of urbanisation managers’ remuneration. Business ethics intensity in cement production. practices, mainly local. standard for high-risk countries. Reinforced interaction with CSR is managed by a member of the 25/03/2020 Solutions 30 Important training initiatives investors on ESG subjects as well Executive Committee. as with ESG rating agencies. Reduction of carbon intensity in 2025 vs. 2015 by -30%. Take action to clean up industry by 28/03/2020 Air Liquide Hydrogen is their key molecule and represents 2 billion Creation of jobs around Hydrogen: 30 million. developing low carbon solutions euros in turnover.

Topics discussed Date Company Environment Social Governance Stakeholders Roll-out of engineer training programmes Plastic Omnium New Energie: new group 28/09/2020 Plastic Omnium Hydrogen strategy. Complement to electric batteries focused on the hydrogen sector entity dedicated to hydrogen in particular. Reducing carbon emissions in the automotive industry. Faurecia is recognised for its Other applications involving hydrogen could 28/09/2020 Faurecia Strategy for reducing hydrogen costs focused on the technology enabling a carbon- emerge as the market takes off. large-scale deployment of industrial fuel cell production. neutral economy. JP Clamadieu confirms the group's Hydrogen strategy based around 28/09/2020 Engie Carbon Neutrality. 20 years of hydrogen expertise Hydrogen strategy in line with the Paris customers, projects, industrial Agreement partners. Materiality matrix of ESG issues. Integration Uncertain impact of US elections Hydrogen Strategy. Reduction of carbon intensity by R&D budget dedicated to decarbonisation 01/10/2020 Linde of the group's ESG objectives into the on Linde's climate strategy in the 2028. European taxonomy, Paris agreements technologies remuneration of managers United States. First climate report published on 20 June, roadmap to 2030. Need a clearer and more robust employee 08/10/2020 Arcelor Mittal Target: 30% carbon reduction by 2030 and carbon safety strategy. neutrality by 2050. Commitment on 90% of the brands distributed will have 08/10/2020 Zalando presented a 2°C / SBT scenario by 2024 Inequality: the intergenerational impact of Identification of essential SDGs for Sustainability is firmly represented in the 19/10/2020 Allianz Climate change: Massive reduction in carbon emissions. Covid 19. Conditions of young employees the group (SDG1, SDG7, SDG 8, governance structure of senior executives. working from home. SDG 13) 100,000 m2 of warehouse space. 78,000 catalogue listings. The taxonomy exercise has not yet been carried 14 specialised commercial companies Results of the four social indicators for 2019: Distribution in DIY superstores, out. (heating and sanitary, pumps, valves, 29/10/2020 Thermador Absenteeism 4%, 86% of employees trained, merchant websites and market Work must be carried out on the classification of products industrial supplies). 35% women and average seniority 9 years. places. Participation in 10 SDGs. in the catalogue and on the creation of new indicators on 1 manager per department. the pillar. 2,400 employees in 5 continents. On equality: SBT support for environmental objectives. Scope 1 & 2 50% of women on the board, 40% at executive 150 years in existence. Owned by four Regular evaluation of suppliers. 29/10/2020 Chargers are the most important and scope 3 is currently being committee, 34% at top management and 30% families. Long-term culture. Operating in CSR criteria included in calculated. at group level. speciality materials in five business areas. procurement terms. No definition of living wage The suppliers, which number between 20 and 30, share the Hoffman Green Cement without clinker has one fifth of the carbon By 2025-2026, the company is targeting a following values. Ethical section 29/10/2020 Cement footprint of traditional cement and promotes the circular 35–40% of women out of the total workforce. 3% market share in France through its three and qualitative criteria in general Technologies economy by using local resources and co-products. production sites. procurement terms. Regular quality checks. Circular economy. Recycling. Recovery and sorting European regulatory push on the solutions. circular economy. China shutting 05/11/2020 Tomra Breaking the dynamics of plastic. Sorting fresh fruits and down as the world’s dumping vegetables vs. processed food. ground Carbon neutrality. CDP result. Engagement with key stakeholders Commitment to achieve carbon neutral production by in materiality assessments. 12/11/2020 Neste 2035. Evaluation carried out every two Reduction in palm oil consumption. years.

Topics discussed Date Company Environment Social Governance Stakeholders Water management and environmental strategy. Halving All employees will receive training on the new The new code of ethics co-developed with Third-party risk assessment water consumption in operations by 2025. Biodiversity: code of conduct. the employees, has been implemented 12/11/2020 Novartis performed on 100% of suppliers by 60% of drugs come from natural sources, no specific Gender balance 45% in middle management, since September 2020. The whistle-blowing 2022. goals. Plastic neutral by 2030 38% in general management scheme has been enhanced. Ernst and Young was replaced by RPMG. SCOR has developed a cross-company culture of risk Work on European taxonomy is still in the management within the framework of ERM (Enterprise preliminary stages. 12/11/2020 Scor Risk Management). 83% of directors on the Board are Environmental, social and governance risks are part of independent. 7 are women (41.6%). this approach. Meetings The aim is to increase digital and to become a Board composition, 42% female, 57% of sustainable and efficient partner. Impact of digitisation on human capital This 12/11/2020 Schneider Electric members are independent and 8 are of Carbon neutral by 2040 on a total end-to-end footprint transition is also creating jobs. different nationalities (scope 1,2,3). Improved integrated reporting. Hydrogen strategy for mobility. Energy mix. Reducing Safety. Training and diversity. Innovation, Appointment of new CEO in 2022. 12/11/2020 Air Liquide Relations with local communities carbon footprint for customers. brand image as attractiveness of the company. Shareholder relations, rewarding loyalty. strengthened. Responsible procurement policy Climate scenario submitted to SBTi, including scope 3. Growing inclusion of women in governing Inclusion of safety-related criteria in under development. Half of all 12/11/2020 Arkema Integration of SDGs. Impact on biodiversity. bodies managers’ variable remuneration. suppliers audited according to CSR criteria. Separation of the functions of Chairman and Attracting & retaining qualified engineers. Improved carbon intensity. Carbon offset. Internal carbon Chief Executive Officer since the departure Strong brand image of Atos in 12/11/2020 Atos Objectives on gender equality and the price. Energy efficiency of data centres. of T Breton in 2019. Artificial intelligence at Europe and around the world representation of women the service of business ethics. Net 0 carbon objective by 2040 (scopes 1,2,3). Use of Gender equality index. Mapping of the duty of ESG criteria included in the variable Debate around 5G. Societal 12/11/2020 □range electricity from renewable sources. Circular economy, care. Digital equity (Africa). remuneration of executives acceptability. product reparability. Energy efficiency of networks. Involvement of local communities. Setting up a CSR Committee attached to Responsible procurement. Carbon neutrality. Biodiversity. Creating a world committee of employees. Local link with 500,000 farmers. 12/11/2020 Michelin the Supervisory Board. CSR strategy Taxonomy. Calculating the gender pay gap Brand value: safety, performance, directly integrated into operations. durability. Growing deployment of Carbon footprint of all funds and all asset classes. ESG committee composed of 10 people. 16/11/2020 Tikehau Capital shareholder re-engagement with Climate alignment scenario for funds. Enhancing the ESG strategy funded and invested companies. Diversity of genders and nationalities is a key issue for a decentralised group. Integration of Close proximity to suppliers, Social and Environmental Risks Committee Morgan Sindall SBTi scenario approved. Scopes 1-2 emission reduction disadvantaged people or people excluded from flexibility granted in terms of 18/11/2020 reports directly to the Board. ESG criteria Group targets exceeded. Scope 3 measurement to come. employment. payment deadlines (COVID). not included in executive remuneration. Programme with universities to enhance the Social audits in place. brand image of construction and the group.

The transport sector represents 24% of global CO2. The CSR policy is integrated into the The train is the way of travel that emits the lowest amount Commitment to zero serious accidents. Local action plans to support group's strategy. 08/12/2020 Alstom of CO2 per passenger per kilometre. Frequency rate of occupational injuries divided charities and education in Female executives up 21.4% in 2020 vs. Eco-design for new products (Avelia Horizon) by 3 since 2012. countries with 200 employees. 18.6% in 2015. Train lifespan of 40 years.

TARGETED ENGAGEMENT

Collaborative engagement initiatives

Mandarine Gestion has been a member of the Dialogue & Engagement Committee of the Forum for Responsible Investment [FIR] since 2016. The members of the Dialogue & Engagement Committee meet every year to determine possible themes of engagement and the form that could take. Campaigns have so far targeted French companies, SBF 120 or CAC 40.

In 2020, the FIR acquired one share from each CAC 40 company in order to conduct a campaign of written questions on ESG themes during general meetings. The members of the FIR’s Dialogue & Engagement Committee worked together to draw up 12 ESG questions that were sent to each CAC 40 chairman ahead of general meetings.

Their responses are analysed by the members of the D&E Committee and the final study, which will be published in early 2021, will provide an image of the “responsibility” of the CAC 40.

Individual commitment on low transparency, controversy or low ESG rating in the portfolio

In 2020, 24 portfolio companies were impacted by current events related to ESG themes, or insufficient ESG information that could have had an impact on reputation, stock market or valuation. We initiated a targeted engagement with them through email, videoconferencing or telephone exchanges. The objective is to analyse how they intend to manage these areas for improvement and to make a change at portfolio management level. The exchanges are summarised in the table below.

ISIN Company Fund Country Date Context Reply provided by the company Impact on management Constructive exchange with IR and the Secretary of the AGM. We will be scrutineers at the next AGM. Call ahead of the 2020 AGM. In the responses provided by the company: Structure of variable remuneration (inclusion of ESG criteria, more - variable remuneration structure (inclusion of extra-financial Renewed trust with management. Position FR0010908533 EDENRED MA - MU France 14/02/2020 quantitative criteria needed). criteria and TSR benchmark) maintained Renewal of a director for the 4th time (not easy to find such a competent - renewal of a director for the 4th time: this will be the last renewal profile) and a hunt is underway to find someone of similar calibre (audit committee) - vesting policy Increasing numbers of studies are denouncing excess food production of animal origin as a major factor in deforestation and climate change. There are also increasing numbers of Initiatives to curb this trend. Food companies are themselves threatened by the effects of climate change. The global network Detailed response from the company. Study based on public of committed investors FAIRR has updated its Protein Producer Index. It information and not transmitted to society before publication of the Renewed trust with management. Position SE0005999760 SCANDI STANDARD MEM Sweden 22/06/2020 ranks 60 of the world’s largest listed animal protein producers, taking into study. The new study to be released in the autumn will increase maintained account criteria such as greenhouse gas emissions, deforestation, water Scandi Standard's score in the Protein Producer Index ranking. management, use of antibiotics, animal welfare, worker safety and investments in plant proteins. Of these 60 companies, 39 present a high risk, including Scandi The company told us that improvements were underway regarding ESG transparency and that they would interact more proactively with Low ESG transparency in general, which places the company in the rating agencies from autumn 2020. We are waiting to see the effects. FR0G00038259 EUROFINS MU-MENT-MO France 02/03/2020 penultimate quintile of the France ESG filter. We contacted the company with Position maintained Overall, no tangible improvement since last year on ESG an ESG questionnaire. transparency and CSR strategy, the main obstacle being the hyper- decentralised organisation of Eurofins. United Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. GB00B02H2F76 AUGEAN MEM 16/06/2020 Kingdom following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. IT0004922826 WIIT SPA MEM Italy 16/06/2020 following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained KEYSTONE LAW GROUP United Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. GB00BZ020557 MEM 16/06/2020 PLC Kingdom following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. SE0011167725 l-TECH AB MEM Sweden 16/06/2020 following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained United Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. GB0030312788 OMG MEM 16/06/2020 Kingdom following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained United Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. GB00BG1THS43 SIMPLYBIZ GROUP LTD/THE MEM 16/06/2020 Kingdom following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. FR0012419307 FOCUS HOME INTERACTIVE MEM France 16/06/2020 following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained United Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. GB00BJT0FF33 RM PLC MEM 22/06/2020 Kingdom following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained DFV DEUTSCHE Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. DE000A2NBVD5 MEM Germany 16/06/2020 FAMILIENVERSICH following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained COLUMBUS ENERGY SA Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. PLSTIGR00012 MEM Poland 16/06/2020 PLN1.89 following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained Lack of transparency on ESG indicators in our stock selection process, Clear and transparent response on the availability of ESG indicators The stock is no longer in the last quintile E. IT0004 436029 EXPERT SYSTEM SPA MEM Italy 16/06/2020 following reading of the public documents available to us. and policies in place (Environmental and CSR) Position maintained

ISIN Company Fund Country Date Context Reply provided by the company Impact on management Bullying: the CEO needs to completely overhaul the entire corporate culture. The idea was to schedule a call in early September once the matter FR0000054470 UBISDFT MU-MO France 17/07/2020 Departure of no.2 Serge Hascoet following two investigations into allegations Sale of portfolio securities at the end of July had been handled internally. of sexual assault and bullying Vote against our voting policy concerning re-elections of members to the Board of Directors for resolutions 1.4, 1.5, 1.8, 1.9, 1.10, 1.11 and 1.12. in IE00BZ12WP82 LINDE MA Germany 17/07/2020 Schedule a call before the next AGM to study director appointments. Position maintained order to facilitate the merger. The mandates were renewed for a period of one year. The recent recruitment of a global sustainable development manager demonstrates the group’s desire to target ESG investors and rating Poor structural ESG rating due to poor transparency specific to the sector. agencies. The materiality matrix is already in place and is revised IT0004056880 AMPLIFON MU Italy 02/12/2020 Questionnaire sent by email requesting a call back to learn more about the every year. This will help the company set its own short-term Position maintained company’s ESG practices, in order to possibly adjust the situation. sustainability goals. Regarding remuneration, the CEO is already incentivised on S indicators. An initial CSR report should be published next year. Poor structural ESG rating due to poor transparency specific to the sector. United GB00BD3VFW73 CONVATEC GROUP PLC MU 02/12/2020 Questionnaire sent by email requesting a call back to learn more about the No response from the company Position maintained Kingdom company’s ESG practices, in order to possibly adjust the situation. Even though the group published its second CSR report in 2019, it is still only at the very beginning of a consolidated CSR approach. It is always a challenge for a group with a long history of mergers and Poor structural ESG rating due to poor transparency specific to the sector. acquisitions to implement a CSR approach for all its subsidiaries. DE000A2GS5D8 DERMAPHARM HOLDING SE MU Germany 02/12/2020 Questionnaire sent by email requesting a call back to learn more about the Position maintained Despite positive local initiatives, the group may need to recruit a company’s ESG practices, in order to possibly adjust the situation. CSR manager in order to tackle any issues at group level. More information on CSR is expected by April 2021, with some surprises in store Poor structural ESG rating due to poor transparency specific to the sector. IT0003492391 DIASORIN MU Italy 02/12/2020 Questionnaire sent by email requesting a call back to learn more about the No response from the company Position maintained company’s ESG practices, in order to possibly adjust the situation. Fagron recently accelerated its CSR strategy by hiring a global CSR manager last summer. The group provided relevant answers to all Poor structural ESG rating due to poor transparency specific to the sector. questions and is aware that more must be done in the area of CSR BE0003874915 FAGRON MU Belgium 02/12/2020 Questionnaire sent by email requesting a call back to learn more about the Position maintained to meet investor expectations. Fagron is collecting ESG data company’s ESG practices, in order to possibly adjust the situation. relevant to its activities and will be able to communicate better in the next report, scheduled for early 2021. The company fully integrated sustainable development into its strategy at the end of 2020. The group monitors 3 strategic pillars: talents (Gx Care), environment (Gx Pure), resources and materials Poor structural ESG rating due to poor transparency specific to the sector. (Gx Circular) with underlying goals and KPIs to be monitored each DE000A0LD6E6 GERRESHEIMER MU Germany 02/12/2020 Questionnaire sent by email requesting a call back to learn more about the year. As a producer of glass/plastic and packaging solutions for the Position maintained company’s ESG practices, in order to possibly adjust the situation. healthcare and cosmetics industry, a number of further achievements are expected in 2021 regarding customer commitments and the integration of ESG criteria into directors’ remuneration. GN is committed to communicating on ESG objectives by February 2021. The company collects a lot of ESG data and will be able to set Poor structural ESG rating due to poor transparency specific to the sector. objectives on all aspects such as climate change, diversity, DK0010272632 GN STORE NORD MU Denmark 02/12/2020 Questionnaire sent by email requesting a call to learn more about the compensation. Overall, the company has more to say than what is Position maintained company’s ESG practices, in order to possibly adjust the situation. disclosed by ESG rating agencies, given the lack of resources to complete all of the check boxes. It is worth contacting GN after February 2021 if we are still shareholders. Poor structural ESG rating due to poor transparency specific to the sector. IE0033024807 UDG MU Ireland 02/12/2020 Questionnaire sent by email requesting a call to learn more about the No response from the company Position maintained company’s ESG practices, in order to possibly adjust the situation.

ENGAGEMENT BY VOTE

The 2020 voting report is available on our website. https://www.mandarine‐gestion.com/FR/fr/demarche‐responsable