4
ESG Report
4.1

A Word from the Chairman

106

4.2 Market and challenges
4.2.1

110

Our Business Model

111

4.2.2 ESG strategy: the roadmap for positive retail114

4.2.3 Challenges and ambitions

116

4.2.4 Values and governance122

4.3 Climate strategy: decarbonizing our solutions
4.3.1

Scope 1, 2, and 3 carbon footprint and carbon intensity

132
132

4.3.2 Decarbonizing our offering

136

4.3.3 Decarbonizing our solutions: Circular economy

140

4.3.4 Decarbonizing our organization

142

4.3.5 TCFD (Task Force on Climate-Related Financial Disclosures) reporting

4.4 Our climate strategy: decarbonization with our customers
4.4.1

Decarbonization at our customers’ premises: avoided emissions

144

150
150

4.4.2 European taxonomy

154

4.5 Social and societal ambitions

162

4.5.1

Guarantee the safety of its products and solutions

162

4.5.2 A sustainable supply chain

163

4.5.3 A good working environment

166

4.6 Principal Adverse Impacts & standard GRI tables

178

4.7 Scope and methodology

185

4.7.1

Methodological note on non-financial reporting

185

4.7.2 Reporting period and frequency

185

4.7.3 Scope

185

4.7.4 Consolidation and internal control

185

4.7.5 External controls

185

4.7.6 Methodological specificities and limitations

186

4.7.7

188

Other indicators

4.8 Report from the independent third party

189

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ESG Report
A Word from the Chairman

4.1 A Word from the Chairman

Technology for Positive Retail

We are aware that the real strength of our Group
lies in our nearly 850 employees of 40 nationalities
and are convinced that motivation is the first driverof performance. As such, we have continued tofoster an exciting, motivating, and fulfilling work
environment. We have taken our commitment toemployee shareholding even further by extending
our performance share plan to all categories of
employees.

Thierry GADOU
Chairman & CEO
VusionGroup

2023 was the year of significant progress in our(1)
ESG policy . We continued to reduce our carbon
intensity and formalized the objectives of our carbon
emissions reduction trajectory by 2030, in line with(2)
the Paris Agreement, and in respect of the SBTiinternational methodological reference framework.
(3)
Our R&D strategy
continues to focus on theobjectives of our Positive Retail roadmap, withsolutions that help our customers to develop local,
fast, and low-carbon e-commerce through themodernization of their stores, reduce food waste,
and optimize inventory monitoring, promoteresponsible consumption through better consumer
information at points of sale, contribute to local jobs
with higher added value and to the anchoring ofdigital technology in the regions through themodernization of physical retail.

(1)
(2)
(3)

ESG: environmental, Social, Governance
SBTi: Science Based Targets initiative
R&D: Research & development

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And we are continuing to work towards our goal ofgender parity in our workforce (33%) and withinmanagerial positions (28%), but despite ourdetermination, we are still too far away from ourgoals. Actions to help VusionGroup become agender-balanced company are underway: 34% of
new hires are women and 49% of managers under
the age of 35 are women. Beyond the fundamental
argument of equity, this objective of parity is also
one of the current and future levers for improving
the Company’s performance.
The progress of all these human capitaldevelopment policies is measured in practice by theincrease in 2023 in the satisfaction indices of ouremployees and our high level of talent retention,
including in the R&D workforce which is generally
very coveted and therefore at risk and which
represent 30% of the VusionGroup's employees.

ESG Report
A Word from the Chairman

Our shared purpose
VusionGroup invents IoT and digital technologies thatcreate a positive impact on society by enablingsustainable and human-centered commerce.
Enabling the new world of unified sustainableretailWe are convinced that digitizing physical retail cancontribute to sustainability in the world.
Retail is the leading private sector employer (15% of jobs)
and the leading economic sector in the world (~20% of(4)global GDP ). It is associated with major societal andenvironmental issues: employment, waste, health, food(5)
safety, responsible consumption, CO2 emissions (productmix and origins, logistics, packaging, warehouse
construction, energy, last mile…) as well as social
well-being in cities and communities.
It is, however, a sector under economic pressure, as
physical retail (over 80% of total retail) is challenged by
rapidly shifting consumer behavior towards different sales
channels, particularly digital (e-commerce), increasing laborcosts, unfavorable tax policies (vs. e-commerce), eroding
margins and market capitalization, hindering thereinvestment needed to transform physical stores.
The social and environmental risks of the current retailevolution are multiple:• strong and continuous growth (15 to 20%/year) in ecommerce which can lead to a market share of 40% at(6)
the detriment of physical stores - this is already thecase in China;• the current acceleration of the "warehouse" (direct-toconsumer delivery from the warehouse) e-commerce
model may continue to weaken brick & mortar retailers,cause more store closures around the world and lead to
major
negativerepercussions
onemployment,
communities, social well-being, equality of access toessential goods and the marketing of local products;• in terms of carbon impact, this development model will2
lead to the accelerated construction of millions of m ofautomated warehouses. This massive construction of
new infrastructure could lead to the emission of several
million tons of CO2 over the next 5-10 years.
• therefore, the current evolution of retail carry substantial
environmental and social risks that, surprisingly, are notat the heart of current discussions on sustainable
development and appear as a “blind spot” in the debate.

(4)
(5)
(6)
(7)

A more sustainable and responsible retaildevelopment model exists
Millions of physical stores (20 million) already exist, putting
essential consumer goods within easy reach of consumers
every day. Digitalization could revitalize these “stranded”
assets and turn physical stores into very efficientomnichannel (“phygital” i.e. physical and digital) and local
e-commerce tools, offering a low carbon, high quality
service to all customers thanks to in-store order preparation(express local delivery or quick click & collect pick-up).
(7)

With our technology (Cloud, IoT, image recognition, AI ,big data), many visionary retailers are pioneering thisunified model, towards more sustainable and positive retaildevelopment in terms of service quality, local employment
and social links.
A convergence scenario such as the “physicale-commerce” scenario would have multiple positive
impacts:• contributing to the Paris Agreement through “physical ecommerce” with a lower carbon impact;• protecting jobs and communities by stemming the tide ofstore closures;• protecting the environment by avoiding the creation of
e-commerce order picking centers and the procession ofcarbon emissions caused by the artificialization of the soil
and the robotic equipment necessary for their operation;• fostering lower carbon and positive local-for-local
production and consumption patterns;• enabling better collaboration between manufacturers andretailers through the availability and sharing of real-timein-store inventory data;• harnessing the potential of on-shelf marketing and digitalcommunication to create new sources of revenue forretailers, ensuring the long-term sustainability of physicalstores while reducing the paper consumption linked tothe massive production of coupons and catalogs.
Time is of the essence: any delay in the digitaltransformation of physical retail increases the likelihood ofenvironmental and social risks associated with the statusquo and current developments.

GDP: Gross domestic product
CO2: carbon dioxide
E-Commerce Poised to Capture 41% of Global Retail Sales by 2027 — Up from Just 18% in 2017. https://www.bcg.com/press/31october2023ecommerce-global-retail-sales
AI: Artificial intelligence

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ESG Report
A Word from the Chairman

Continuation of the Positive Commerce
Research Program, a worldwide study
Accelerating such a positive development of retail requires
many decision makers (public & tax policy makers,(8)
investors, analysts, CEOs of the CPG-retail ecosystems,etc.) to become aware and convinced about theopportunity of creating positive shared value by revitalizing
physical stores through technology.
Research and knowledge is currently missing around thestakes, risks and opportunities related to retail’s future
development. The subject requires more visibility andknowledge-building efforts.
This is why, as part our roadmap for Positive Commerce
launched in 2019 under the supervision of our ESG
governing bodies, we have decided to launch a series ofprojects addressing the role of digitization in therevitalization of retail and its potential positive societal andenvironmental impact.

We have mobilized a number of major corporations withwhich to partner and contribute to this research(Qualcomm, Microsoft, McKinsey) and have become apartner of the World Economic Forum’s Future ofConsumption Platform in order to share and promote
progress and conclusions.
The objectives of the research program are:• raise global awareness on the importance of Retail interms of the environmental and social impact;• analyze the various possible future retail development
scenarios with regard to their respective social andenvironmental impacts;• positively influence economic and political decisionmakers to build a more sustainable business in the
coming years: VusionGroup participation in the CGF
Sustainability Summit in Copenhagen and Davos 2023.
(9)

VusionGroup also took part in COP28 in Dubai in 2023.
By highlighting the VusionGroup x HowGood partnership(developed in section 4.4.1 ), transparency for the consumer
was in the spotlight.

Vusion x HowGoodx Majid Al Futtaim
partnership during
COP28
3 badges tested on
2,500 Vusion labels
deployed

We were delighted to showcase our partnershipwith HowGood and Majid Al Futtaim during COP28,
providing new information on product sustainability to
Carrefour consumers. We want to offer our unique value
proposition to more customers using our VusionCloud
solution, as our goal is to create a positive impact on society
while promoting sustainable and people-centricretail."Roy Horgan

SEVP Strategy, Marketing & Communications

(8)
(9)

CPG: consumer packaged goods
COP: Conference of the Parties

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ESG Report
A Word from the Chairman

Extra-financial performance, ESG: achievements in 2023
2023 has been a very active year in advancing our ESG strategy. All achievements are detailed in the table below:
Reportsection• Launch of EdgeSense, our range of low-carbon solutions;• Obtaining an EcoVadis Platinum rating (for the second consecutive year) with a score of 90/100 on theenvironmental component;

ENVIRONMENT• Obtaining a B rating from the Carbon Disclosure Project (CDP), which demonstrates an advanced maturity
in terms of environmental strategy;• ISO 14001 certification of our environmental management system in 2023 with validity until 2026;• Use of the Science-Based Targets initiative (SBTi) to measure our progress in reducing carbon intensity inparticular. In 2023 we signed SBTi’s letter of commitment and began to develop the plan to reduce ourcarbon footprint. These reduction targets in absolute terms for Scopes 1 and 2 and in intensity for Scope 3,
will be submitted to SBTi in 2024 for validation;

4.3
and
4.4.1

• Continuing our “Second Life” program including the eco-design and repairability of our products and theextension of the geographical coverage of our sorting and recycling centers;• Defining several use cases of our solutions with some of our customers in order to assess avoided
emissions and/or a reduction in food waste and/or better information for consumers, for example;

SOCIETAL• Active member of the “Net Zero Initiative” working group, led by Carbone 4, bringing together major digital
players to work towards a carbon-neutral economy;• Audit of our supply chain in terms of ethics, raw material purchasing (“conflict minerals”), and occupationalsafety;• Renewal validated for the third year of our commitment to the United Nations Global Compact;• Achievement of the EcoVadis Platinum medal for the second consecutive year after receiving a silver
medal in 2020, a gold medal in 2021, and a platinum medal in 2022 - we were placed among the “top 1%”of companies audited by EcoVadis, with a score of 80/100 in social and societal matters;

4.2.4
and
4.5

SOCIAL• First philanthropic actions;• Continuation of the diversity program and signature of the Diversity Charter;• Implementation of benefits to facilitate parenting internationally (flexibility at work, additional days of leave,
extended and paid leave, etc.);

4.5.3• Significant progress on our employee satisfaction survey (E-NPS);GOVERNANCE• Our Board of Directors currently includes 50% women and 50% independent directors;• Creation of a third Board Committee: Strategy and ESG Committee;• Formalization of our governance policies (the text of which is available on our website www.vusion.com):• Development of the policy prohibiting the financing of political parties and advocacy groups;• Renewing the commitment of our suppliers and employees to our Codes of Ethics and Conduct;

4.2.4
and
4.5

• Monitoring of declarations of potential conflicts of interest and whistleblowing;• Participation in COP28 (Conference of the Parties) to promote more informed consumption.

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ESG ReportMarket and challenges

4.2 Market and challenges
GRI
Code

2-6

Topic

SDG

Activities, value chain and other business
relationships

Topic

Sustainable cities and communities

The Retail Sector: An economic model in transition
Physical retail is the world’s largest economic sector. It is
critically important to the vitality of our societies, our cities,
and our lives. However, it is a sector under pressure:inflation, rising energy and personnel costs, stagnant
consumption, price wars, online competition, declining
market capitalization, changes in the behavior of
consumers who aspire to greater transparency and quality,etc.
Conversely, e-commerce is experiencing dynamic growth a CAGR (compound annual growth rate) estimated at 20%
worldwide over the last seven years - and is virtually the
only source of growth for global retail sales. Despite thisgrowth in e-commerce and the pressure it exerts, physicalretail still carries the bulk of transactions (80%). But the line
between physical and digital is becoming blurred. The
largest global retailers are thus pushing forward with theirstrategies towards a homogeneous omnichannel model.

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Retailers are striving to offer consumers the best of bothworlds: the agility of e-commerce and the expression of thefive senses of the store. There are now multiple purchasing
paths: online ordering, home delivery from the store, drive,
click & collect, traditional purchases at the point of sale,etc.
To support these profound changes and the associatedchallenges (transparency, uniformity, and synchronizationof information available on all channels), it is necessary tointegrate certain technologies and contribute to improving
efficiency, profitability, and sustainability and the overall
consumer experience.
It is within this context that VusionGroup invents andproduces solutions for retailers, thus stimulating their digitaltransformation in response to their problems.

ESG ReportMarket and challenges

4.2.1
GRI
Code

Our Business Model
Topic

2-6

Activities, value chain and other business
relationships

2-29

Approach to stakeholder engagement

VusionGroup is the partner of retailers in the use of digitaltechnologies in stores: the Group has developed acomplete digital IoT platform that allows retailers toconnect and digitize their points of sale, automate low
value-added processes, better understand, inform, andserve customers, produce quality information to optimize
shelf life at all times, avoid disruptions and waste, andcreate an omnichannel service that builds loyalty and is
adapted to new consumer expectations.
Commerce is a retail business, where performance comesfrom the ability to have quality information in-store at all
times to act with precision, to automate all tasks that canbe automated and thus maximize the added value of each
employee serving customers who no longer want to choose
between in-store consumption (80% of transactions, 20%of global GDP) and the convenience and practicality of theInternet. Today, retailers must offer the best of both worlds,

SDG

Topic

Sustainable cities and communities

digital and physical, combined in a unified service. This
convergence is at the heart of the digital transformation ofretail. Revitalized by digital technology, physical points ofsale are entering a new era by becoming:
a. ultra-efficient assets thanks to operational data, theautomation of low value-added processes and the focusof personnel on customer service and perfect shelfkeeping;b. connected and interactive environments able to better
identify, know, serve and communicate with customers.
Our business model shown on the next double page
describes the assets and the know-how that we produce
and exploit in order to offer solutions for physical retail,whose impact is humanly and societally positive.

VusionGroup has set itself the mission oftransforming our business model by focusing on long-term
challenges: well beyond simple compliance, the company isconstantly examining its contribution to its sector and its
stakeholders, fully aware that financial, social, societal, andenvironmental performance go hand in hand. The stability
and good health of the ecosystem as a whole will allow notjust a few incremental changes but the profound change
required to meet the objectives of the various
time horizons to which the Group, its customers,
its suppliers and its partners must respond.”
Pascale Dubreuil
EVP ESG

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ESG ReportMarket and challenges

VusionGroup’s business model

Our purpose: we invent IoT solutions whichby enabling
Macroeconomic context and market trends• Physical retail is the largest private employer in the world, but it is currently under significant
economic and social pressure.

Resources:
Retail digitalization facilitators

How we create value:by contributing to theWorking for positive retail: the
Vusion platform, at the heart of ourinnovation

Employees
 847 employees, including 30% in R&D• Diversity of workforce• 28% female managers

Protect the environment and local employment bymaking the digital transformation of retail profitable,
low carbon and sustainable• High level of commitment from senior executives

Expertise• 32 years of leadership in the digitization of retail• State-of-the-art technology• Eco-design and recyclability of solutions (ESL)• Long experience in innovation• SESimagotag: low-carbon connected IoT
devices• VusionCloud: IoT platform

Intellectual property• 700+ active patents• 137 active patent families• Low-energy IoT is a research priority for theGroup• Captana: AI/computer vision• Engage: In-Store Retail Media• Memory: analysis and modeling tool
• PDidigital: connected IoT devices for industry

Solid partnerships with high added value• Manufacturing: strategic partnership with BOE,
E Ink, Qualcomm, Jabil• Technology platforms: global leaders (Microsoft
Azure, Cisco Meraki, etc.)• Sustainable development: Carbone 4, HowGood,
Smartway

Strategic priorities for• Positive impact and quantifiable contribution to
low-carbon and socially beneficial retail• Growth and Leadership: continue to be the world
leader in ESL and the digitization of physical retailInternational presence• Global leader - 18 entities worldwide• Main markets in Europe, the Middle East, andNorth America

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• Customer-centric culture, delivering exceptional
value through VusionGroup’s digitized operations
that boost the profitability of physical retailESG ReportMarket and challenges

create a positive impact on societysustainable and human-centered retail• The digitization of retail - transforming physical stores into digital assets - will enable sustainable growth in step withsocietal evolution

sustainability of physical retailthrough digitization

Value created by the digitizationof physical retail
Employees

Knowledge• More than 32 years of international experience inthe design of electronic and digital solutions forphysical retail• An extensive international presence able to meetthe needs of global retailers in all their markets• A personalized offer that adapts to therequirements of each market

Work environment and culture promoting value creation while
ensuring employee well-being and equal opportunities• 33% of employees participate in the long-term incentive program
based on participation in the company's capital• ENPS employees = 40 in H2 2023

Retailers and companies in the CPG sector• An in-depth understanding of digital tools, fromtheir creation to their use, to improve in-store
operational efficiency• An ability to engage consumers in real time thanks
to their insights in store

Procurement• Increased revenue through reduction of stock-outs, optimizationof Category Management and increased consumer engagement• Increased operational efficiency of physical stores, resulting inhigher operating margins• Increase in NPS (66 in 2023 vs. 55 in 2022)

Consumers, communities, and society• Leverage our partnerships to create a strategic andcompetitive supply chain• Risk mitigation through the reliability anddiversification of our supply chain• Adoption of best governance practices to promote
ethical and sustainable supply chains• Easily available and accurate pricing and product information(400 million smart labels in stores)• Engagement with stores and companies in the mass market sector• Maintain social ties and connections between people• Tools to reduce food waste (1 metric ton of emissions avoided
per month with Flash Evo at Kavanagh's)

Suppliers• Responsible and sustainable supply chain (98.2% ofindustrial purchases covered by our code of conduct)• Transparency (exploitation of conflict minerals, human rights, etc.)• Long-standing suppliers and multi-year contracts

implement the Vusion 27 plan

Shareholders(1)

G1

Growth&Leadership

C1

Customer-centric
actionVAS

Software &ValueAdded
ServicesTOP

Operational
performance

ESG• TCAC of revenue over 10 years up by 30%• Share price assessment over three years: 213% (end of 2020
to end of 2023)

Positive
impactPlanet• Decarbonization of physical retail• Avoided emissions through “local” e-commerce and in-store
order preparation, limiting the construction of new warehouses
2(2)• Low-carbon solutions: Cloud, Infraless, EdgeSense (-48% CO e)(1) Compound annual growth rate(2) Considering Vusion HF vs. EdgeSense 120cm - 7 V300 Series Tags
vs. 7 ES Tags per rail. Lifetime expectancy of 7 years, no battery
replacement, no second life

• Circularity: “2nd Life ESL ” program (1.9 million labels recycled
in 2023).

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ESG ReportMarket and challenges

4.2.2 ESG strategy: the roadmap for positive retail
The solutions developed by VusionGroup help retailers
transform their physical stores into true digital assets thatare highly automated, data-driven and connected in realtime to brands and consumers. The customer experience isgreatly improved, sticking points are avoided and the store
regains its key role in society. This transformation towards
positive retail cannot be achieved without social andenvironmental objectives, as discussed below.

GRI
Code

Topic

SDG

2-16

Communication of critical concerns

2-22Statement on sustainable development strategy

Topic

Sustainable cities and communities

For a digital transformation toward morehuman-centered retail
The store serving people and society
The growth in online sales is such that it is estimated that ecommerce could account for more than 40% of total sales
in the retail sector by 2027, according to the Boston(10)
Consulting Group , compared to 20% today. This scenario
2would require the construction of millions of m of
distribution warehouses, with a significant increase in CO2emissions.
However, there is another solution: physical stores
represent the ideal local logistics network to serve thisgrowth while being the best response in terms of impact on
the environment, employment, and society. There are
20 million stores worldwide, i.e. one store for every
400 inhabitants. VusionGroup’s objective is to preserve theexistence of these stores because:• they do not require any new construction of highly
carbon-emitting warehouses;• they represent 15% of jobs on the planet: retail is thelargest private employer in the world. By supporting
physical stores, each person’s role is also preserved;• they often represent the hub of cities and are essential
for maintaining strong social ties. They may even(11)
represent a place for identity construction ;However, their preservation will only be made possible bydigitizing the point of sale to increase profitability andsustainability, and enable them to evolve with society.
We need to capitalize on both the proximity and theadvantages of the physical point of sale as well as theacquisition of internet-related services thanks totechnologies (localization of products, pick-to-light,
continuous monitoring of inventories, etc.). We also need torespond to the new behaviors of consumers, who no longer
want their online or offline experience to be interrupted.
This digitization of the point of sale has a positive impact on
in-store staff. For example, technology and digital solutions
reduce the drudgery of tasks, reduce stress, and offer theopportunity to focus on more rewarding tasks. Friction
points can be mitigated or even eliminated through better
customer service.
By digitizing points of sale, retailers also give their teams
access to cutting-edge technologies such as artificial
intelligence, Computer Vision and very large-scale data
analysis. For a store, being up to date in terms of innovation
will offer its employees continuous training on newtechnologies, which are popular today.
It is in the retail sector, among other places, that greatstories are born: social mobility is often valued, there aremany potential positions and great career developments
are possible.

• they are by far the most efficient distribution channel interms of conversion and traffic;

Contribution to the decarbonization
ofcretail• they offer a real sensory experience that will never be
equaled by e-commerce;

Decarbonizing our solutions• they make it possible to avoid the systematic andintensive use of online sales deliveries, particularly inurban areas, which result in a substantial increase in thenumber of delivery vehicles, their related emissions and(12)road congestion .

(10)

Our IoT technology has always been eco-designed. Ourlabels are designed to be repaired, disassembled, andrecycled. Everything we put on the market is also energy
efficient: we are constantly striving to reduce our energy
consumption and redesign our IoT solutions so that theycan, eventually, run without a battery.

e-Commerce Poised to Capture 41% of Global Retail Sales by 2027 — Up from Just 18% in 2017. https://www.bcg.com/press/31october2023ecommerce-global-retail-sales.
https://www.ecommercemag.fr/Thematique/retail-1220/Breves/magasin-est-lieu-construction-identitaire-Vincent-Chabault-351678.htm(12)https://www3.weforum.org/docs/WEF_Future_of_the_last_mile_ecosystem.pdf
(11)

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ESG ReportMarket and challenges

Based on the carbon footprint of a store equipped with old
traditional labels (CO2 equivalent calculated according to(13)
the GHG Protocol ), the infographic below symbolizes
current and future decarbonization steps, such as:• Serverless switching in stores, i.e. in the “Cloud”;• Technological partnerships enabling us to integrate ourradio frequencies into “access points” already present instores for other uses (e.g., internet), thus eliminating theneed for cabling and additional access points;• The growth of our “second life ESL” program to extend
the life of our labels to promote a circular economy.
• More sustainable “new generation” labels thanks to theelimination or reduction of the number of batteries
included in each of our ESLs, the use of more sustainable
materials such as recycled plastic rails, etc.

Contributing to the decarbonization of retailthrough our solutions
The solutions we provide to our customers can contributeto reducing their carbon footprint through several levers:• Greater transparency for the consumer: ESLs also enable
the retailer to better inform customers and support more
responsible consumption.
• Reduction of food waste: better shelf management
optimizes inventory forecasts and sales, and directlyreduces food waste. It is now possible to adjust prices,
promotions, or product placement when they reach theend of their life.

Quantifying our initiatives
Our decarbonization ambitions must be quantified. To dothis, in 2022, we developed a comprehensive modeling of
our GHG (greenhouse gas) emissions, to then define ourcarbon intensity objectives to contribute to theachievement of the objectives of the Paris Agreement(objectives developed in section 4.3.1.2).
Regarding the measurement of avoided emissions allowedby our solutions, we are still working on their modeling inorder to build a reliable and indisputable methodology
before any publication.

• Local e-commerce: we are digitizing the physical store tocreate micro-distribution/shipping centers and thus
avoid the construction of order preparation warehouses.
• Better inventory management and supplier traceability:
the data created and acquired through the use of oursolutions contribute to better forecasting of demand (lesslast-minute supplies, less food waste, etc.).
• Paperless retail: the gradual discontinuation of receipts,
paper advertising at the point of sale, and catalog

promotions. Our various solutions make it possible toconvey just as much information to the consumer without
the need for print-outs and the use of ink, paper, andprinters.

For more details, see “Climate Strategy: decarbonizing
our solutions” in section 4.3 as well as the avoided
emissions scenarios for our customers in section 4.4.1.
The infographic below symbolizes the decarbonization
trajectory and levers identified at this stage, for our entire
range of solutions:

Positive retail: an essential contributor to the decarbonization of retailto achieve the ambitions set by the Paris Agreement

No additional
serverNo additional
cabling oraccess points

1. Decarbonization of oursolutionsThrough innovations in each technicalfacet of our offer

Recycled ESL

Local ecommerce

A recycledlabel makes it
Nextpossible togeneration
exploit theESL
GHG emissions
Raillabelswithemitted for alonger period of shared energy
sources, moretime for its
sustainableproduction
materials
614((/,55,105
(37,22('9,6+;0
24(/,5(5<.$%(.5

(13)

.17'

0)4$.(550'0018$6,105

Responsible
consumption
Food waste
management
Paperless

2. Decarbonization of
the distribution sector
via the emissions
avoided by oursolutions
Extensive use of our solutions
promoting local e-commerceand responsible behavior

614((/,55,105
&105,56,0*1)174.$%(.5$0'&.17'
)($674(5GHG Protocol: Greenhouse Gas Protocol

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ESG ReportMarket and challenges

4.2.3 Challenges and ambitions
Materiality analysis
GRI
Code

Topic

SDG

3-1

Process to determine material topics

3-2

List of material topics

3-3Management of material topics

Each year, the Group carries out an analysis of themateriality of the risks it incurs, taking into account theassociated remediation plans, as described in section 2
Risk factors and uncertainties of this report.
Among these risks, an analysis of the risks related toclimate change and the Group’s social and environmental
responsibility was carried out:
it was further developed by VusionGroup's ESG team, who
adapted it according to material topics chosen from the(14)
GRI
2021 standards, and identified 17 significant topics
that are at the core of our social, societal, andenvironmental impacts.
This risk assessment is the result of research andcomparative analyses carried out:a) either in the retail sector or in the digital sector, throughever-increasing exchanges with our customers andpartners, during commercial negotiations, participation incalls for tenders and customer satisfaction surveys;(14)

GRI: Global Reporting Initiative (https://www.globalreporting.org/)

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Topic

Gender equality,
Decent work and economic growth,
Industry, innovation, and infrastructure,
Sustainable cities and communities,
Responsible consumption and productionb) with our employees during employee satisfaction surveys
and half-yearly management reviews;c) with rating agencies, in particular ISS and EcoVadis,
whose comparative databases by sector make it possible toanalyze the materiality of ESG issues in digital and retailecosystems;d) our investors, during interviews and roadshows forinvestors and financial analysts.
Head office experts (HR, legal, finance) were also involved
to confirm the content of the main risks and opportunities
identified.
Finally, this analysis was presented to the various ESG
governance bodies, including the Strategy and ESG
Committee.
This materiality analysis must be supplemented by a dualmateriality analysis in 2024 in order to comply with the
CSRD (Corporate Sustainability Reporting Directive)
regulation.

ESG ReportMarket and challenges

The key aspects and the most significant topics in relation to ESG are listed below with an asterisk (*):

Topic

Environment

Societal# key
objective in
4.2.3

Aspects

GRI
Standard

Emissions*305

1

Innovation in favor of thedecarbonization of our solutions

2

Reducing our carbon intensity

4

Contribution to the decarbonization of
Retail1

Innovation in favor of thedecarbonization of our solutions

Waste*

306

3

Circular economy: a “second life” forlabelsMaterials

301

5

Audit of our supply chain

Supplier Environmental Assessment*

308

6

Supplier Code of Conduct

Supplier Social assessment*414

see section 4.5.3

Occupational Health and Safety403

see section 4.5.3

Training and Education

404

Diversity and Equal Opportunities*405

Non-discrimination

406

SocialGovernanceAction plan / report section

9

Diversity policy for women

10

Promoting the Group’s ethical values
among employees

Anti-Corruption*

205

Anti-competitive Behavior*206

see section 4.4.1

Customer Health and Safety416

see section 4.4.1

Marketing and Labeling417

Promoting the Group’s ethical values
among employees

Customer Privacy418

see sections 4.5.3 and 4.3.5

Economic Performance

201

Indirect Economic Impacts

203

10

1

Innovation in favor of thedecarbonization of our solutions

4

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ESG ReportMarket and challenges

Our challenges
Our ESG strategy, included in our Positive Retail roadmap,
aims to meet the needs of all of the Group’s stakeholders
and contribute constructively to the environmental andsocial issues at the heart of the retail sector. The risks andchallenges below have been identified as key to creating
long-term sustainable value for the Company's clients,society at large, partners, suppliers, employees, investors,
and the environment.
The main social, societal and environmental challenges andopportunities have been identified through internal reviews
and discussions, independent expert advice and commentsfrom our clients.
The Group’s climate strategy is clearly in line with priority
objectives, as we are committed to producing a businessmodel scenario compatible with limiting global warming to+1.5°C on average compared to the preindustrial era, and todeveloping low-carbon IoT devices, thus contributing to the
reduction of carbon emissions in the physical retail sector.
Our main indicators and ambitions in this area are,respectively:• the carbon intensity of our solutions, calculated for the
first time in 2022. In 2023, we introduced a new carbon
intensity
calculation
using
the
methodology
recommended by the Science-based Targets Initiative;• the innovation dedicated to the decarbonization of oursolutions and trade. We monitor the number of patents
filed per year;• the number of recycled labels, an emblematic indicator of
eco-design and the creation of an internal reparability
process for our products.
• contributing to the decarbonization of retail, in particular
by calculating the avoided emissions made possible
through the use of our solutions.
Sections 4.3 and 4.4 of this report develop each of thesepoints.

Given the importance of our industrial supply chain and theattention paid to ethical principles, as the one practiced byour subcontractors (to the working conditions and healthand safety of the employees, as well as the conditions ofsupply, particularly in terms of minerals), we prioritize
compliance with ethical standards by our suppliers: this ischecked through ESG audits carried out on site or throughdocumentary audits. Thus, indicators chosen in thissocietal area are:• ratio of purchases subject to ESG audit (scope ofpurchases audited);• signature rate of our Supplier Code of Conduct.
Customer satisfaction (NPS) and the economic stability of
our customers remain relevant indicators in measuring oursocietal contribution, but are now recurring indicators,
resulting from action plans already in place. We havetherefore chosen to retain only 12 indicators below
reflecting current progress plans that will be managed until
2027.
With regards to social matters, being a great place to workfor our teams is an ongoing priority and continues to bemeasured by the eNPS, an employee satisfaction survey
conducted twice a year. Two other indicators reflect theimportance given to two major topics: the proportion of
female managers in a technology company, on the one
hand, and the measurement of employee shareholding
growth through the allocation of employee performance
shares, on the other:• proportion of employees benefiting from performance
share plans;• eNPS (employee satisfaction indicator);• proportion of female managers.
Lastly, in terms of governance, the Group strives toencourage the adherence of its employees and suppliers to
its ethical values, through signature campaigns renewed
each year, and ensures the proper performance of its ESG
strategy by requesting an external assessment annually.
• Code of Ethics signature• Diversity on the Board of Directors• External ratings

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ESG ReportMarket and challenges

Please note that the KPIs reported below are rounded figures of our performance so that they are easier to read - pleaserefer to each section to get the detailed KPIs.
Non-financial
issues2023
performance2022
performance2021
performance

2027 ambition

Reportsection

712

538

465

1,000

4.3.2

Kg CO2/€'000
value added

661

763

-13.4%

ref year

Number oflabels recycled

1.9 million

1.6 million

2.5 million

15 million

4.3.1

Developing
the plan

NA

Clear andreliable vision

4.3.1

#

Action plan

Indicator

1

Innovation infavor of thedecarbonizatio
n of oursolutions

Number ofpatents filed

2

Reducing ourcarbonintensity

3

Circulareconomy: a“second life”
for labels

Contribution
to the SDGs

Environment

ClimateScope 3:• Active
member of
the Net Zero
Initiative

Start ofcarbonfootprint
calculations

400-47.5%

4.3.1

Contribution tothedecarbonizatio
n of retail

Avoidedemissions5

Audit of our
supply chain

Auditedsuppliers(internal audit)
expressed as a
% industrial
purchases
covered

97.2%

97.3%

Action plan

100 %

4.5.2

6

Industrial
Supplier Codeof Conduct

Signature rate
expressed as a
% of covered
industrial
purchases

98.2%

98.3%

Action plan

100 %

4.5.2

7

Remuneration
policyEmployees
participating inLTcompensation
plans

33%

30%

30%

100% ofemployees
eligible for the
plan

4.5.3

8

Employeesatisfaction

eNPS

50

4.5.3

9

Diversity policy
for women

Proportion of
femalemanagers

35%

4.5.3

4

• Firstcalculations
relating to thefight against
food waste

Social and societal

Societal

Employeedevelopment
and working
conditions

Diversity

H1 : 37

H1 : 25

H1 : N/A

H2: 40H2: 36

H2: 4

28%

27%

24%

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ESG ReportMarket and challenges

Non-financial
issues2023
performance2022
performance2021
performance

2027 ambition

ReportsectionCode of ethics
signatures

91%

95%

Action plan

> 95%

4.5.3

% women,% independent
directors,

50% women,
50%
independent
directors,

50% women,
50%
independent
directors,

33%
independent
directors,

50% women,
50%
independent
directors,

3.2.1

Gold

EcoVadisPlatinum and“upperquartile”
ratings for
ESG
assessment
companies(ISS, CDP,
etc.)

4.2.2

#

Action plan

Indicator

10

Promoting theGroup’s ethicalvalues among
employees

11Composition of
the Board of
Directors

Contribution
to the SDGs

Governance

Governance

12

External ratings

EcoVadis and
CDP rating

Platinum, B

Platinum C

VusionGroup is firmly committed to advancing the United Nations Sustainable Development Goals (SDGs) by 2030.

SDG 3: Good health and well-being

Our solutions can contribute to the health andwell-being of consumers by giving themaccess to essential information about the
products in the shelf. Informed choices canlead to healthier decisions, including when it comes to diet,allergy and product ingredients.

SDG 5: Gender equality

We advance gender equality in the workplacethrough our “D&I” (Diversity & Inclusion)
program and by promoting these values within
our Group and to our business partners andsuppliers through our Code of Ethics and our Supplier Codeof Conduct.

SDG 8: Decent work and economic
growthWe support Decent Work through our “be agreat place to work” program to foster an
inclusive and diverse workplace and encourage careerdevelopment and opportunities. We also contribute to thisthrough our compensation policy, employee benefits andlong-term incentives.
We drive sustainable economic growth by increasing therelevance and dynamism of stores through digitalization,
which benefits the entire economy and society, enabling
physical retail to maintain its role as a leading employer
globally and by stimulating related employment.
In addition, we carry out formalized supply chain audits,using a questionnaire with a section dedicated to ESG
supplemented with on-site observations.

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SDG 7: Affordable and clean
energy and SDG 9: Industry,Innovation, andinfrastructure

During the design, development and delivery of our
products and services, we ensure low-carbon innovation(eco-design helping to minimize the environmental impact
of energy consumption, patents filed) and contribute to thedecarbonization of the retail sector thanks to use cases
observed at our customers' sites.

SDG 11: Sustainable cities andcommunities

Making the physical store a sustainable digital
asset
byincorporating
VusionGroup’s
solutions, a guarantee of on-shelf efficiency, and thus
preserving the economic health of the store and, therefore,
jobs. In addition, the Group’s solutions provide better
information for the end consumer.

SDG 12: Responsible consumption andproduction

Our product design ensures the possibility ofgiving a new life to IoTs whose first use haslasted several years. Thus, by initiating a circular economy
through refurbishment and recycling steps, it is possible toextend the lifespan by several years.

SDG 13: Climate action

VusionGroup signed the Science-Based
Targets initiative (SBTi) letter of commitment
in 2023 and is committed to reducing its
emissions, in terms of absolute value andintensity, in accordance with the Paris Agreement.

ESG ReportMarket and challenges

Recognition of our commitment

KPI

GRI
Code

External ratings (e.g., CDP, EcoVadis)

2-28

Topic

Membership ofassociations

External assessments: ESG policy(15)(EcoVadis), CDP Supplier Engagement
Rating (SER)

This platinum medal is based on EcoVadis’ assessment of
our actions and policies, together with our sustainablepurchasing policy, in four areas:• labor law and human rights;• environmental considerations in the supply chain;diversity,

racism,Topic

Responsible consumption
and production

Assessments and certifications: environment(16)(CDP and ISO 14001)

VusionGroup monitors the evolution of its overall ESG
performance via an annual external assessment, carried out
by EcoVadis, one of the world's most trusted providers ofbusiness sustainability ratings. VusionGroup was awarded
the platinum medal in 2022 and 2023:• social issues such as
discrimination, and equity;

SDG

non-

• business ethics.
We received excellent ratings for our Labor & Human
Rights policies and actions, and our initiatives and approach
to Ethics.

We now track and report all applicable Scope 1, 2 and 3
GHG emissions in our response to the CDP. Since 2022,
VusionGroup has been participating in the Carbon
Disclosure Project (CDP) through the climate change
questionnaire. The Company was recognized for its
progress on climate change with a score of “B”, whichplaces us in the “Management level” category. This
category concerns companies that have taken into accountthe environmental impacts of their activities and that
ensure good environmental management. VusionGroupplans to continue to report on its annual progress in(17)
reducing carbon emissions through its TCFD report andthe CDP climate change questionnaire.
In early 2023, the Group also received ISO 14001
certification. This standard provides a framework forcontrolling the environmental impacts generated andintends to lead to a continuous improvement of its
environmental performance. It is a framework that includes
personnel awareness, the handling of external requests
and, to a lesser extent, voluntary external communication.

For the second consecutive year, VusionGroup received a“B: Management” rating from CDP on its commitment to
suppliers on climate change. This B score places
VusionGroup above the global (C), European (B-) andindustry (B-) averages.

(15)
(16)
(17)

CDP: Carbon Disclosure Project (https://www.cdp.net/en)
ISO: International Organization for Standardization (https://www.iso.org/fr/home.html)
TCFD: Task Force on Climate-Related Financial Disclosures

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ESG ReportMarket and challenges

Assessments and certifications: information
system (ISO 27001 & Cybervadis)
In early 2023, the Group also obtained ISO 27001
certification. This standard defines the requirements for the
implementation of an information security management
system. This management system lists the security
measures, within a defined scope, in order to guarantee theprotection of the organization’s assets. The objective is toprotect functions and information from any loss, theft oralteration, and IT systems from any intrusion or IT disaster.
VusionGroup monitors its cybersecurity performance
thanks to Cybervadis. The company received a score of
969/1000, corresponding to a Platinum level ofachievement. The objective of the assessment is to obtain aclear
overviewoftheCompany's
cybersecurity
performance in four key areas: identify, protect, detect, andreact. The Company also obtained the platinum medal.

4.2.4 Values and governanceGroup ESG governance
Our ESG strategy is fully in line with the core values that guide our mission: to use our technological solutions to drive thedigital transformation of physical retail. The description of these values is available on our website at www.vusion.com.

Strong integration of our ESG values and priorities
ESG Priorities

Positive retail

Innovative

Entrepreneurial
spiritCustomer
centric

Global/International
ambition

Make the physical store a digital asset

Address Climate change: contributing to
the decarbonization of our operations andacross the value chain

Environment

Create positive impact: jobs, consumer
protection, communities
SocialPositive impact

Humanism

Be a good place to work: inclusive
environment, diversity, safety, professional
opportunity, and development
Highest standard of business ethics

GovernanceIntegrity
We are guided by a set of core values as we drive our mission: to use our technology solutions to drive the digitaltransformation of physical retail.
INNOVATION: it is part of our DNA. It opens up therange of possibilities offered by new technologies andmakes it possible to meet our ambition: to revolutionize
physical retail. An indicator relating to the number ofpatents filed has become a permanent indicator of our ESG
objectives (Section 4.2.3)

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ENTREPRENEURIAL SPIRIT: this value is a greatstrength for a fast-growing international company. The
group’s dynamism is deeply permeated by its
entrepreneurial culture: autonomy and accountability stemfrom our historical experience of start-ups andentrepreneurs.

ESG ReportMarket and challenges

CUSTOMER FIRST: the company was created by afood distributor, this is the foundation on which we build.
Our mission and ambition is to put retailers on a path toperformance, profitability, and sustainability. Only a highlevel of customer satisfaction, from management to instore employees, allows us to assess our success, and thiscriterion has become a permanent indicator of our ESG
objectives (Section 4.2.3).
HUMANIST, GLOBAL, AND INTERNATIONALAMBITION: our position in the global market is madepossible by our ambition for excellence. We want to berecognized as the market leader in the digitaltransformation of physical retail. Our organization is agile,horizontal, and global. Our geographic expansion strategy
has resulted in the mobility or recruitment of local sales
teams, which are based as close to our customers as
possible, to their physical stores and decision-making
centers. We are particularly mindful of the range ofbackgrounds of our teams and of the expression of thecultures to which each individual belongs. Several
indicators relating to attention to diversity and the working
environment are measured in sections 4.2.3 and 4.5.

COMMITMENT TO A POSITIVE IMPACT: The
digitalization of stores provides obvious advantages forretailers and brands. Driving the dynamism of storesthrough digitalization also benefits the broader economy
and overall society by enabling physical retail to retain its
role as one of the planet's leading suppliers of jobs, andstimulating related employment. The digitalization ofphysical stores gives rise to greater traceability, facilitates
food safety, and helps promote the journey toward moresustainable agriculture. Digitalization also drives consumer
satisfaction, contributes to maintaining and improving thequality of life in cities (where stores are a crucial componentof the urban landscape), and reduces waste thanks tooptimized inventory management. Several criteria relating
to these positive impacts are included in our key objectives
in Section 4.2.3.
INTEGRITY: the Group conducts its activities
according to the strictest integrity and ethical standards(fight against corruption, forced labor, intellectual property
infringement, etc.), as reflected in our Code of Ethics, which
provides the framework for working together, interactingwith customers, reaching out to shareholders, collaboratingwith our business partners, and creating value for all our
stakeholders. The criterion for signing the Code of Ethics
and the Supplier Code of Conduct has become apermanent indicator of our ESG objectives (Section 4.2.3)

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ESG ReportMarket and challenges

ESG governance
GRI
Code

Topic

SDG

2-12

Role of the highest governance body in overseeing the management of
impacts

2-13

Delegation of responsibility for managing impacts

2-14Role of the highest governance body in sustainability reporting

2-25

Processes to remediate negative impacts

Topic

Responsible consumption
and production

Boardof Directors

ESG, Nomination and Remuneration Committee*
Validates the ESG strategy

Chairman &Chief Executive Officer

Oversees the ESG strategy
Reports

Global Management Board

Co-develop and implement
the strategy

ESG Department
1 director and 2 employees
Raises awareness andcoordinates the network
Report and informCo-build

Raises awareness

ESG Champions/Correspondents(1 ESG correspondent per subsidiary + 1 contact per department: finance,
supply chain, marketing, communication, HR, logistics, customer support,
etc.)
DeployGroup employees
Integrate and deploy on a daily basis* Strategy and ESG Committee since December 13, 2023.

The governance of our ESG strategy is summarized below, but it is also based on the recommendations of the TCFD (Task
Force on Climate-Related Financial Disclosure) in section 4.3.5 which, although very focused on climate and environmental
issues, remains a good way to reflect corporate governance in terms of ESG, particularly in the description of the first“governance” table.

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ESG ReportMarket and challenges(1)

Respect the guidelines of the OECD andthecUnited Nations

These principles inspire the internal reference documents:

The Group’s commitment to ethical and sustainable growthis based on the fundamental value of respect for humanrights and fundamental freedoms.

• the Group’s purchasing policy;

VusionGroup has been a signatory of the United Nations
Global Compact since 2021 and is committed to respecting
its 10 fundamental principles. The Group also recognizes
the OECD (Organisation for Economic Co-operation andDevelopment) Guidelines for multinational enterprises andthe UN Guidelines on businesses and human rights. It
strives to ensure that the fundamental conventions of theInternational Labor Organization (ILO) are applied globallyand in particular those on respect for freedom of
association and the right to collective bargaining, theelimination of discrimination in employment andoccupation, the elimination of forced or compulsory labor,
and the effective abolition of child labor.

• the Code of Ethics;• the human rights policy;• the anti-discrimination and harassment policy;• the commitment to the values of the United Nations'International Labor Organization;• the occupational health and safety statement;• the labor rights policy;• the diversity and inclusion policy.
Keen to strengthen its ambition to build better and positive
physical retail, the Group is committed to respecting the 10
universally accepted principles of the UN Global Compact
in the areas of human rights, labor standards, theenvironment, and climate, as well as the fight against
corruption, and expects its industrial suppliers to do thesame. (For more information, see Section 4.5.2“A sustainable supply chain”).

Ethical conduct of business and the fight against tax evasion
GRI Code

Topic

2-15

Conflicts of interest

2-23

Policy commitments

SDG

2-27

Compliance with laws and regulations

205-1

Operations assessed for risks related to corruption

205-2

Communication and training about anti-corruption policies andprocedures

205-3

Confirmed incidents of corruption and actions taken

206

Anti-competitive behavior

Topic

Responsible consumption
and production

Overall, the VusionGroup operates in geographic areas where ethics in business practices are applied. The Group’s revenue
can be presented by geographical area and classified according to the 2023 corruption index, published by Transparency
International and available on the website: https://www.transparency.org/en/cpi/2023
Revenue by geographic area (before IFRS 15 adjustment)
Corruption index between*• 12 and 39 and/or geographical area not analyzed

2023
M€

2022
%

M€

%

5.3

0.7%

3.1

0.5%

• 40 to 60

222.1

27.7%

92

14.8%

• 60 to 90

574.6

71.6%

525.7

84.7%

802

100.0%

620.8

100.0%TOTAL

Corruption indexes between 12 and 39 reflect a generally very corrupt business practice and indexes close to 100 are qualified as very ethical.

VusionGroup manages its activity in strict compliance with international regulations relating to corruption, in particular by(2)complying with the Sapin II anti-corruption law in France (FCPA international equivalents, UK Bribery Act, etc.). The
guiding principles for the company and its employees were set out in the Code of Business Conduct (or Code of Ethics)
rolled out in 2021. The purpose of the Code of Ethics is to set out the Group’s legal and ethical standards as well as fair andhonest practices. The VusionGroup Code aims to ensure that all employees - regardless of their position or level of
responsibility - know, understand, and act according to the highest ethical standards in all aspects of their work.

(1)
(2)

OECD: Organization for Economic Co-operation and Development (https://www.oecd.org/en/)
FCPA: Foreign Corrupt Practices Act

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ESG ReportMarket and challenges

It covers in particular:• compliance with anti-corruption and anti-money
laundering laws and laws governing international trade;
adherence to the fundamental principle of faircompetition;• respect for human rights, anti-discrimination, genderequality and diversity; compliance with health, safety,
and security conditions; the prohibition of any type ofharassment;• matters of confidentiality of information and insider
trading.
This Code is regularly reviewed in the light of:

These tools allow everyone to demonstrate and put into
practice a good level of judgment in situations where thisproves necessary.
In addition, whistleblowing allows everyone to feel
comfortable reporting any behavior or issue that appears toconflict with the Code or the Group’s policies (see “Focus
on the whistleblowing procedure”).
The Group has set itself a clear objective: to ensure thateach employee signs the Company’s Code of Ethics, so thatthe fundamental values and principles are widely sharedand understood. Signature campaigns are renewed eachyear during the first quarter and during on-boarding fornewcomers.

• the analysis of our existing compliance system;

2023

2022

91%*

95%

• the new corruption risk map resulting from a newinterview campaign conducted with all the Company’s
departments at the end of 2023 and early 2024.

Code of ethics signature rate

This analysis is therefore constantly reviewed as the Groupgrows and expands.

In terms of external interaction with its partners andsuppliers, the group carries out, as part of its sustainablepurchasing policy, a detailed assessment of compliancewith these main principles among its tier-one suppliers (seeSection 4.5.2).

This Code of Ethics is supplemented by several policies
that highlight and explain several aspects of ethicalbehavior:• the sustainable sourcing and purchasing policy;• Supplier Code of Conduct:• conflict minerals settlement policy;• environmental policy;• the anti-discrimination and harassment policy, thecommitment to the values of the United Nations
International Labor Organization, the occupational healthand safety statement, the policy on respecting
employees' human rights, the policy on respecting laborrights, the policy on diversity and inclusion, all describedin the “Human rights” paragraph above;• the policy of prohibiting the financing of political parties
and advocacy groups; and• the conflict of interest procedure,
All of these policies are available on our website atwww.vusion.com.

Code of Ethics: dissemination and adherence
by stakeholders
In order to promote internal compliance with these values
and policies, the Group relies in particular on:• its e-learning training to understand the rules of ethics;
teams are trained on ethical business conduct, including
on various topics such as money laundering, faircompetition, conflicts of interest, passive and active
bribery, backhanders and facilitation payments, gifts andinvitations, charitable works and sponsorship, as well as
the whistleblowing procedure. This training is mandatory
for all new hires and is part of the onboarding process;• its whistleblowing procedure; described below;• the conflict of interest procedure, (also available on theinternal “ServiceNow” platform).

(3)

GDPR: General Data Protection Regulation

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* Signature campaigns do not yet include recent acquisitions

Focus on the whistle-blowing procedure
Alert system

Since 2021, a single whistleblowing system has been
deployed within the Group, available in French and English
for our employees, but also for customers, suppliers, andservice providers via a generic email address with two
recipients (one senior HR manager and one senior ESG/
Legal Department manager).
The system set up on the internal platform guarantees theprinciple of confidentiality of reports.
This system makes it possible to collect reports on theexistence of behaviors or situations contrary to applicablelaws, internal regulations, and the Group’s values andprinciples set out in the Code of Ethics. It also makes it
possible to report a behavior or practice anonymously. As
indicated in the Code of Ethics and the Whistleblowing
procedure, reports can also be sent through traditional
reporting channels: the Personnel Department, the legal
function, a manager.
(3)

All reports are consolidated according to GDPR
provisions and are communicated automatically every
month to the two managers receiving emails sent to thegeneric address.
In 2023, two reports were received.

Number of reports
received
(1)

2023

2022

2021

(1)

0

2

2

(1)

Alerts with no internal purpose: this is a report of attempted
poaching by competing companies.

ESG ReportMarket and challenges

Fight against tax evasion
GRI
Code

Topic

207-1

Approach to tax

207-2

Tax governance, control, and risk management

207-3

Stakeholder engagement and management of concerns related totax

In line with ethical business conduct, VusionGroup believes
that a consistent and responsible approach to taxation isfundamental to ethical business conduct.
Tax evasion consists of taking steps to deliberately reduce
tax payments. Tax evasion takes different forms such as
the absence of declaration or the declaration of reduced
income and/or results and can be based on sophisticatedarrangements, particularly cross-border.
In order to achieve this ambition of ethical businessconduct and the fight against tax evasion and in the face ofthe challenges of an increasingly complex and constantly
changing
economic
andregulatoryenvironment,
VusionGroup is committed to:• adopting ethical tax practices by avoiding any form of
aggressive tax planning, abusive tax optimization or
artificial tax arrangements aimed at evading taxes;• not facilitating tax evasion;• respecting the strictest ethical standards;• ensuring compliance with applicable laws and tax
practices in the countries where the Group operates.
The Group is subject to complex and changing tax
legislation in the various countries in which it operates. Dueto its international activity, it is subject to transfer pricing
rules, which can be particularly complex and are subject todifferent interpretations. Tax monitoring is carried out, inparticular as part of joint initiatives taken at theinternational or Community level (OECD, G20, European
Union).

SDG

Topic

Responsible consumption andproduction

In particular, incorporation continues within French tax
legislation:(4)i.

the principles established by the OECD
transfer
pricing, tax base erosion and profit shifting (BEPS);ii.

the multilateral convention for the implementation of
measures relating to tax treaties to prevent BEPS
dated June 7, 2017;iii.

the rules provided for by the Council Directive of July12, 2016 establishing rules against tax evasion
practices directly affecting the functioning of theinternal market (the Anti-Tax Avoidance Directive, or
ATAD); andiv.

provisions provided for in the proposed directive
aimed at establishing a common consolidated
corporate tax base (CCCTB), which could increase thetax burden on the Group.

Thus, the Group treats all tax matters concerning it withintegrity and transparency and manages tax matters by notresorting to tax evasion and by not creating structures
devoid of economic or commercial substance, particularly
in countries considered to be tax havens. All operations andtransactions performed are based on an economic reality
and VusionGroup does not seek to avoid tax throughstructures provided for this purpose. VusionGroup pays
taxes in countries where the business activities generate
profits and where value is created, ensuring that the
distribution of the profit (loss) within the Group is consistent
with the added value created in each jurisdiction. Throughits tax policy, the Group wishes to ensure the security of its
operations while seeking tax management in compliancewith national, European, and international tax standards,
laws, and regulations and by applying the OECD principles
to transactions carried out within the Group.
The Group also applies these principles to its relations withthird parties and will, in particular, refuse any unusual
contractual arrangements intended to allow tax evasion bya third party.

(4)

OECD: Organization for Economic Co-operation and Development (https://www.oecd.org/en/)

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ESG ReportMarket and challenges

Legal compliance status
VusionGroup did not experience a compliance incident in 2023:
Legal compliance status
Incidents of violations involving rights of indigenous peoples (GRI 411-1)

0

Incidents of non-compliance concerning the health and safety impacts of products and services (GRI 416-2)0

Incidents of non-compliance concerning product and service information and labeling (GRI 417-2)0

Incidents of non-compliance concerning marketing communications (GRI 417-3)0Substantiated complaints concerning breaches of customer privacy and losses of customer data (GRI 418-1)

0

Incidents of non-compliance with water permits, regulations, or standards

0

Receipt of significant fines for violation of regulations relating to the provision or use of products or services

0

Receipt of fines for environmental damage, or any related litigation

0

Receipt of significant fines or non-monetary sanctions for violation of the law

0

Disputes involving anti-competitive, anti-trust, or monopoly behavior

0

In 2023, the Vusion Group did not experience any of the aforementioned incidents.

Interacting with our stakeholders
Stakeholders dialogue
GRI
Code

Topic

2-29

Approach to stakeholder engagement

203-2

Significant indirect economic impacts

SDG

Topic

Sustainable cities and communities
VusionGroup maintains a regular dialog with its
stakeholders using various means of communication andinteraction to ensure transparency in its social and societal
responsibility initiatives and to meet market and investor

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expectations. VusionGroup stakeholders are identified asexternal and internal groups and individuals such as
customers, employees, investors, business partners andsuppliers, as well as communities and public authorities.

ESG ReportMarket and challenges

VusionGroup communicates on a regular basis with its many stakeholders via numerous methods:
Stakeholders

Customers

Partnerdistributors

Employees

Suppliers

Investors

Supervisory
authorities/
Regulator

Expectations

Means of dialog• Innovative digital solutions enabling
increased value creation by optimizing theiroperational, economic, and environmental
performance• Ethics• Quality of service• Operational excellence• Cybersecurity• Trade shows and exhibitions• Satisfaction survey [NPS questionnaire]• After-sales service• Customer support• Website• Contractualization support• Collaboration• Long-term relationships• Fair compensation• Partnership agreements• Business review• Training• Commercial prospecting• Technical and marketing support• Code of conduct• Training and development• Change in the best possible environment• Occupational health and safety• Well-being at work (fulfillment andachievement of ambitions) and faircompensation• Ethics• Equity and equal opportunities, diversity,and inclusion• Societal values• Intranet• Message from the Chairman• Management meetings• Works councils• Health and safety committees• Half-yearly management review process andsatisfaction questionnaire [eNPS]• Code of Ethics• Whistleblowing system• Schools and universities• Occupational health and safety• Balanced economic transaction• Long-term relationships• Calls for tenders• ESG assessment questionnaires• Safety questionnaires• Regular audits• Supplier Code of Conduct• Whistleblowing system• Financial performance (value creation andprofitability)• ESG commitment• Clarity, transparency, governance• Video conferences• Investor interviews• Roadshows• General Meeting• Website and "investors@vusion.com" address• Assessments (ratings)• Universal registration document• Ethics• Respect for and compliance with laws andregulations• Respect for the environment and safety• Regular contact with the AMF and tax
authorities• Regular statements of formalities; responses
to surveys and audits• Positive socioeconomic influence, creating
jobs, smart and sustainable solutions• Value creation• Reducing our environmental impact andhelping customers and suppliers do theCommunities,
same
society, and the• Risk reduction
planet• Environmental protection• Human Rights and Ethics• Consumer protection• GDPR• Website and publications• Group policies• Assessments (ratings)• Recycling process• Launch of partnerships (fight against foodwaste)

Listening, dialog and integration of all its stakeholders fuel the Group's social responsibility strategy. This regular dialog
makes it possible to better understand the changes and challenges, which in turn makes it possible to prioritize them andintegrate them into the Group’s societal responsibility approach. Stakeholder mapping is regularly reassessed.

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ESG ReportMarket and challenges

Measuring customer satisfaction: VUSION's Net Promoter Score
KPI

GRI
Code

NPS

203-2

Topic

SDG

Significant indirect
economic impacts

At the end of 2020, we launched our "Customer First"
program, anchored in our belief that high levels of customer
satisfaction and loyalty lead to consumers becoming our
greatest champions, recommending us to other potential
customers. Thus, the Group is dedicated to fostering a
positive experience at every key stage of the customer
journey in order to set this virtuous cycle in motion.
The indicator we used is the Net Promoter Score (NPS). It isa widely used tool for measuring customer loyalty andsatisfaction. It involves asking customers how likely they
are to recommend a product or service to others, on a scaleof 0-10. Our customer satisfaction survey is deployedworldwide. It is linked to our customer relationshipmanagement system and our Power BI analysis tool.

Topic

Sustainable cities and communities

Detractor, we have learned to pay careful attention to eachcustomer interaction.
The reasons for customer dissatisfaction change every six
months. For each reason, an action plan has been put inplace by VusionGroup. However, some issues arise due tothe particular context of the electronic components
industry every year. The increase in the volume ofcustomers also tends to disrupt delivery times and productavailability. All dissatisfied customers are contacted by
telephone to ensure that the proposed actions are effective
in resolving issues and avoiding their recurrence in the
future. The action plans drawn up with stakeholders(customers, partners, etc.) have enabled VusionGroup to
increase the NPS result each year.

The NPS helps us to measure how customers perceive ourservice, and how well our business is doing.

NPS

With an overall NPS slightly higher than 65 (vs 55 in 2022),
VusionGroup is in the upper range of the SaaS and software
sector and remains on a clear path toward improvement.
This positive NPS has been achieved by adopting a truly
customer-centric approach. Since a single negative
experience is all it takes to turn a potential Promoter into a

The values in this table relate to the value acquired at theend of the year during the NPS H2 campaign of therespective year.

2023

2022

2021

65.88

55.31

49.47

Supported initiatives and organizations
GRI standard

GRI
Code

Topic

General information

2-28

Membership of associations

All relations between VusionGroup and political parties andtheir representatives are guided by the highest principles oftransparency and ethics. The Group does not make politicalcontributions (neither in cash nor in kind), carry out lobbying
activities or other activities beyond the above-mentioned

VusionGroupsupports
severalorganizations
andassociations and participates in several round tables andinternational discussion forums:• UN Global Compact: VusionGroup is committed to taking
into account the 10 key principles to building a moresustainable society in its internal actions and processes.
The principles that are particularly applicable to theCompany are human rights, labor law, discrimination,
environmental
protection,andcorruption.
Thiscommitment is perfectly aligned with the multiple facetsof our Positive Retail program;

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SDG

Topic
Sustainable cities and communities

associative objectives and it does not authorize thereimbursement of private political contributions. Any
political commitment or contribution made by Group
employees is considered to be personal and entirely
voluntary and is in no way supported by VusionGroup.

• VusionGroup has signed the Diversity Charter. Created in
2004, it is a commitment document that can be signedby any employer who wishes to act in favor of diversity
and thus go beyond the legal and regulatory antidiscrimination framework. Through this agreement,
VusionGroup is committed to promoting diversity. The
charter encourages all economic players to adopt
practices that promote equality and social justice;ESG ReportMarket and challenges• VusionGroup is a member of the “Women's
Empowerment Principles” to promote gender equality
and empower women in the workplace, market, andcommunity;• In addition to responding to its annual campaign,
VusionGroup financially supports the Carbon Disclosure
Project (CDP) as an “enhanced” supporter.

Economic circle
We have joined the Consumer Goods Forum: the only
organizationthatbringstogetherretailersandmanufacturers of consumer goods. Through its global
reach, executive leadership, and focus on collaboration
between retailers and manufacturers, the Consumer Goods
Forum is driving positive change and helping to address themain challenges facing the sector: environmental and social

sustainability, health, food safety, and product data
accuracy.
In addition, we are a member of the World Economic
Forum’s Future of Consumption Platform to advance, share,and promote our knowledge of trade developments. The
Forum brings together the main political, economic,
cultural, and other leaders of society to define global,
regional, and sectoral agendas.
VusionGroup is also part of Perifem, which strives toinvolve all players in the retail sector in order to create amore responsible business ecosystem.
By getting involved in the aforementioned associations, theGroup is committed to supporting major causes for theCompany and the industry in which it operates, as well as to
ESG-related issues.

Cultural foundations & sponsorship
GRI
Code

Topic

203-1

Infrastructure investments and services supported

This year, we are once again supporting the Women
Initiative Foundation to promote women in business and theeconomy in general.
Driven by the desire to act as a corporate citizen, and in linewith its passion for innovation, VusionGroup is graduallydeveloping a cultural sponsorship policy, choosing music
and the Verbier Festival as the focus of its first sponsorship.
In 2023, the Company donated €95,000 to the VerbierFestival's public utility foundation, via the Fondation deFrance.
This choice of music is linked firstly to the universal
character of the language that music constitutes. For acompany as international and multicultural as VusionGroup,a universal language such as music represents a symbol of
our corporate culture. On the other hand, at the managerial
level, the orchestra is a magnificent representation of thehuman organization that makes a company, each playing
their own instrument but the ensemble playing a common
score in harmony, with a common language that goesbeyond cultures and nationalities. As such, it is a powerful
metaphor for the global company. This is why music was
the first choice for sponsorship.
The Verbier Music Festival is one of the most importantinternational festivals due to the importance of its academy
and its role in training musicians, together with Aspen(United States), Tangelwood (United States), Lubeck(Germany) and the Pacific Music Festival. (Japan). The
greatest masters perform there each year, and throughout
the festival, it is these professional concert performers who
are the academy’s teachers, making it a privileged place oftransmission. For 30 years, around 3,000 musicians of allnationalities have passed through the academy (including
many French musicians such as Renaud Capuçon). The

SDG

Topic
Sustainable cities and communities

alumni of the Verbier Festival Academy now play in thelargest orchestras in the world, proof of the major academic
and educational importance of the festival. The Academy
trains soloists and chamber and orchestral musicians (inthree orchestras of different age groups). The festival isalso developing a cultural mediation policy to promoteclassical music among new audiences, as well asinternational partnerships.
Other 2024/25 cultural sponsorship policy projects:
VusionGroup is working on sponsorship projects andcultural partnerships in the city of Nanterre (where theGroup’s headquarters is located), in particular with the
Théâtre des Amandiers de Nanterre. It is looking atorganizing philosophy conferences and other projects with
the Works Council.

Net Zero Initiative for IT
VusionGroup joined the Net Zero Initiative for IT (NZI4IT)
study group in June 2023, which was organized by Carbone
4 to understand the role of digital solutions in the global
carbon neutrality effort.
Carbone 4 supports companies in the transformation oforganizations towards decarbonization and adaptation toclimate change. As a link between scientific excellence andthe economic world, they help their customers understandthe emerging world. The Net Zero Initiative is the very first
framework for collective carbon neutrality on a global scale.
Led by Carbone 4 since 2018, NZI4IT aims to empowercompanies to transform their activities towards a net zeroeconomy.

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ESG ReportMarket and challenges

The objectives of this research program are:1)

establish a high-level working group of companies,
academics, institutions, and experts in the field of IT andclimate change mitigation;2) investigate several topics related to the generalquestion of the role of IT in the global carbon neutrality
effort, in particular the issue of carbon avoidance andelimination;3) publish the results of each work area, producing
guidelines and tools that will help all stakeholders
understand the role of IT in achieving the global carbon
neutrality goal.
VusionGroup will use these studies to implement a reliable
and relevant methodology for avoided emissions in 2024.

4.3 Climate strategy: decarbonizing our solutions
VusionGroup has renewed its pledge to the UN Global
Compact and confirmed its climate pledge in line with theParis Agreement, by committing:• to produce a business model scenario compatible withlimiting global warming to less than 1.5°C;• to work to reduce its carbon intensity, thus contributing
to the reduction of CO2 emissions in the distributionsector;• to commit in 2024 to the certification of these objectives
by the SBTi, which will attest to their alignment with theobjective of the Paris Agreement;

We have developed several programs in order to addressthese priorities with concrete solutions as outlined below.
We believe that the measurement and scope of ouraccomplishments are captured in the following reporting
standards and KPIs:
The Group obtained ISO 14001 certification in 2022: ISO
14001 certification is the reference tool for taking into
account environmental issues, improving environmental
performance and its monitoring, and thus contributing to
the Sustainable Development Goals (SDGs) of the UN.

• to refine its customers' use cases, to avoid additional
carbon emissions.

4.3.1

Scope 1, 2, and 3 carbon footprint and carbon intensity

Carbon footprint
KPI

GRI
Code

Topic

305

Emissions

Climate Action

302

EnergyIndustry, innovation andinfrastructure

SDG

Scope 1, 2, and 3 carbon audit and the carbon
intensity of our solutions

Understanding our carbon footprint is the first key step inany decisive action to reduce it. This is why in 2020 welaunched a series of ambitious projects to model our carbon
footprint comprehensively (Scopes 1, 2 and 3). We aretaking responsibility for emissions across the entire value
chain, including at the level of our support functions, as wellas across the whole life cycle of the product, from the
supply of materials to production, including the use,transport and recovery of materials at the end of their life.
We completed our carbon audit in 2022 with a view toestablishing a solid and strong base from which to draw up
a multi-year action plan.

Topic

(1)

As a reminder, the GHG Emissions Protocol defines themethod for calculating carbon emissions and the scopes tobe considered:
Scope 1 emissions are those greenhouse gases resulting
from fuel combustion from sources we own or operate – likevehicles or natural gas for heating.
Scope 2 emissions refer to those resulting from use ofelectricity.
Renewable energy generates minimal Scope 2 emissions,whereas burning coal, oil, or natural gas to produce
electricity releases carbon dioxide and other greenhousegases into the atmosphere.
Scope 3 emissions correspond to all other indirectemissions that occur in a company’s value chain, including
upstream and downstream activities: more specifically, thelife cycle analysis of all products marketed by the Group,from mining to industrial assembly, from the packaging andtransport necessary for each of these stages to the(1)

GHG Protocol: Greenhouse Gas Protocol (https://ghgprotocol.org/)

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ESG Report
Climate strategy: decarbonizing our solutions

emissions caused by the use by customers and the end oflife of these products. Scope 3 also includes carbon
emissions from the goods used (offices, warehouses),servers, emissions related to employee travel both throughbusiness trips and for home-work journeys, and finally,purchases of goods and services.
Ton eq. CO2

The VusionGroup's carbon footprint is detailed below(values are rounded): unsurprisingly in our technology
business sector, the life cycle of our products represents
the major part of this footprint.

2023

2022 revised *2022

Scope 1

645

682

562

Scope 2

449

427

418

Scope 3

135,871

100,321

121,200

TOTAL

136,965

101,430

122,180*

The 2022 carbon assessment was refined in 2023 with a higher degree of certainty, in particular in terms of reconciliation of categories 3.1, 3.4, 3.11,
and 3.12 with the consolidated revenue for the fiscal year and the corresponding number of IoTs sold. For Scope 1, the reporting work on consumption
and the number of vehicles in the company fleet was also reviewed and made more reliable. VusionGroup measures the carbon footprint of its
activities, that of its employees, and its energy consumption on scopes 1, 2, and 3 according to the general framework proposed by the GHG
Protocol. Carbon accounting, common to all Group companies, is based on international standards: GHG Protocol, International Energy Agency, ISO
14064–1–2016.

The data for all Group subsidiaries are consolidated to
produce the statement: we aggregate the greenhouse gas
emissions by corresponding item for each of our offices andsubsidiaries around the world. More information can befound in the methodological note in Section 4.7(indicator 2).
The change between the two fiscal years 2022 revised and2023 is mainly due to:• scope 3: revenue growth (+30%), resulting in thecorresponding increase in products and services
purchased, upstream transport of goods and distribution,use of products sold, end-of-life of products sold;• scopes 2 and 3: increase in headcount (+39%) under the
combined effect of internal and external growth (entry into
the consolidation scope of Belive and Memory):• a slight increase in business travel, commuting, waste
generated, upstream leased assets consisting of theGroup’s vehicle fleet; #-.%

 #-.%

• leasing of new offices, particularly in the United States(increase in scope 2: indirect emissions related toelectricity consumption);• scope 1: reduction in gas consumption in our main
warehouse, as a result of several cost-saving measurestaken in 2023;
The carbon footprint of the core business (i.e., theproduction of IoTs) is significantly marked by thecontribution of the raw materials necessary for the
manufacture of the various electronic components (about88%), such as the PCB (Printed Circuit Board) which is
predominant.
Electronic components have a significant impact on climatechange because they require a large number of steps
between mining, mineral processing, metallurgy, heavy
chemicals, fine chemicals, which consume energy andwater.

 #-.%  .01/%!+
1/!,0.-/1!1)-,!,$$)01/)"21)-, #-.%  2%*!,$%,%/'5/%*!1%$!#1)3)1)%0,-1
),#*2$%$),#-.% -/#-.%  #-.%   !01%
'%,%/!1%$),-.%/!1)-,0 #-.% 20),%001/!3%* #-.% +.*-5%%#-++21),' #-.% .01/%!+%!0%$00%10#-.%  ,$-&*)&%
1/%!1+%,1-&0-*$./-$2#10
 #-.%  
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0%-&0-*$./-$2#10

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ESG Report
Climate strategy: decarbonizing our solutions

Scope 1 and 2 and Scope 3 reduction ambitions
GRI
Code Topic

KPI

Measures taken to promote
scope 3

305

SDG

Topic

Emissions

Climate Action

In 2022, the Company established a carbon intensity indicator to measure the carbon efficiency gains of its business modeland all initiatives undertaken throughout the value chain. Although the carbon reduction ambition is expressed in terms of(2)
created added value, the CSRD requires the establishment of this ratio on revenue:
2023

2022 restated2022

136,965

101,430

122,180

Adjusted revenue* (€ M)

806

621

621

Carbon intensity (T eq. CO2/ M€ of revenue)

170

163

197

Scope 1, 2, and 3 carbon footprint and carbon intensity* Adjusted financial data is defined in section 5 of this 2023 URD.

This carbon intensity shows a slight increase between
2022 and 2023, (+4%) due to the larger size of the labels in
2023 within the product mix. VusionGroup has defined thedesired trajectory of its carbon intensity calculated onrevenue and is continuing to work towards a target
reduction of -40% by 2027. The introduction of the new
EdgeSense range is a major lever for progress, the effect ofwhich will be measured from 2024.

In 2023, VusionGroup also committed to the
Science-Based Targets Initiative and will submit its
objectives for validation in 2024.
This decision introduces a new methodology for calculating
carbon intensity (based on a value-added indicator orvariable cost margin and no longer on revenue) as well as a
new trajectory of at least -51.6% by 2030.
2023

2022 restated2022

135,871

100,321

121,200

Value added [Adjusted Variable Cost Margin] (€ M)

206

131

131

Carbon intensity (T eq. CO2/€ M of margin)

661

763

922

Scope 3 carbon footprint only (metric tons of eq. CO2)

* Adjusted financial data is defined in section 5 of this 2023 URD.

After increasing the degree of certainty of the calculations
relating to the 2022 carbon footprint (see 4.3.1), the first
performance of the progress made in the 2022 reference
year can be measured: -13.4% reduction in carbon intensity.
As a reminder, the Science-Based Targets initiative is a
joint project between the Carbon Disclosure Project (CDP),
the United Nations Global Compact, the We Mean
Business Coalition, the World Resource Institute (WRI) andthe World Wildlife Fund (WWF).

(2)

Corporate Sustainability Reporting Directive

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Universal Registration Document 2023

It offers a label and recognition to companies that define an
ambitious plan to reduce their carbon footprint and thus
contribute to compliance with the Paris Agreement.
In addition to the intensity objective in its Scope 3, the SBTi
requires companies to commit to reducing their Scope 1 and
2 in absolute terms by a minimum of -42%.

ESG Report
Climate strategy: decarbonizing our solutions

Commit to contributing to the achievement of the objectives of the Paris Agreement

Carbon offsetting
VusionGroup remains committed to its environmental
responsibility obligation, choosing not to use carbon
offsetting as part of its sustainability strategy.
At this stage of our organizational development, we arefocusing on reducing emissions through proactive and(3)
direct actions on our Scope 1, 2, and 3 GHG emissions.
This approach demonstrates our commitment to making
tangible contributions to the mitigation of our carbon
footprint, without using carbon credits counted as emission
reductions. This approach is the one required by the
Science-Based Targets Initiative (SBTi).

(3)

By renouncing the use of carbon offsetting, VusionGroup is
being proactive in addressing its impact on the environment
rather than relying on external measures to offset its
emissions.
This approach is aligned with our principles of transparency
and social responsibility. We have a long-term visionconsisting of sustainable business practices andsustainable innovation, as we actively seek solutions tominimize our environmental footprint.
By choosing the path of proactive environmental
responsibility and prioritizing direct emission reduction
strategies, VusionGroup is positioning itself as a leader in amore virtuous future.

Greenhouse gases

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4.3.2 Decarbonizing our offering
GRI
Code Topic

KPI

Number of patents contributing to305
the SDGs

SDG

Topic

Responsible consumption andproduction

Emissions

VusionGroup implements the reduction of its greenhousegas emissions at several stages of the life cycle: during thedesign, delivery, use and end-of-life phase.
Research and Development is an essential part of theCompany’s strategy. VusionGroup continuously invests toremain the market leader thanks to an innovative and lowemission offer compared to its competitors.
In 2023, 712 patents were active on +137 different families.

VusionGroup patent families contributing to(1)
the SDGs
Our intellectual property protection team analyzed thenumber of VusionGroup patent families that contribute to
the 17 Sustainable Development Goals. Out of 137 patentfamilies, 56 (representing 41% of our patent families)
contribute to the following SDGs:

SDG 9: Industry, innovation, and infrastructure (see section 4.3)
SDG 11: Sustainable cities and communities (see section
4.5)
SDG 12: Responsible consumption and production (seesection 4.4)
SDG 13: Climate action (see section 4.3)
Most of our patents contribute to SDGs 9 and 12, with 47
and 37 patent families, respectively. Please note thatseveral patent families contribute to more than one SDG.

Our DNA: low-carbon solutions fromthecdesign phase

SDG 3: Good health and well-being (see section 4.5)
SDG 7: Affordable and clean energy (see section 4.3)
SDG 8: Decent work and economic growth (see section 4.5)

The development of sustainable products is in our
DNA. VusionGroup has always designed low-carbon
products, both in terms of their eco-design and their use. Our

.,/$6($&6,10

latest innovation, EdgeSense, is a perfect illustration of ourcommitment: rail labels pooling a single energy and control

(52105,%.(&1057/26,10$0'
241'7&6,10

source and emitting -30% to -50%

(2)of CO2 equivalent

compared to traditional ranges, while offering
our most innovative digital functionalities.”

756$,0$%.(&,6,(5$0'&1//70,6,(5   %  % 

0'7564:
,0018$6,10$0'
,0)4$5647&674(
(&(06914-$0'
(&101/,&*4196+

))14'$%.($0'
&.($0(0(4*:11'+($.6+$0'
9(..%(,0*


(1)
(2)











SDGs: Sustainable Development Goals (https://sdgs.un.org/fr/goals)
The GHG emissions of an equivalent number of EdgeSense rail labels and traditional labels are compared here.

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ESG Report
Climate strategy: decarbonizing our solutions

Ultra-low consumption IoT
KPI

Life cycle analysis

GRI
Code Topic

SDG

Topic

301

Materials

302

Energy305

Emissions305

Emissions

Responsible consumption andproduction

302

EnergyAffordable and clean energy

Number of patents dedicated to
low-carbon IoT

The Group has unparalleled expertise in color e-Paper(electronic paper), a display technology that we use. It
mimics the look of paper and consumes minimal energy.
The electronic ink-based displays (EPD) use the same ink as
the traditional printing industry. They consist of tiny
capsules filled with particles loaded with ink. After applying
the correct electrical charge, an EPD creates highresolution images with the same level of contrast andreadability as a printed medium. Once the text and images
are visible, the EPD no longer needs energy to maintain thedisplay (bi-stable technology). Our DTP (direct thermal
printable) labels use a dual-transistor pixel, a patented
process that demonstrates additional expertise in lowenergy displays.
Our R&D works continuously on reducing this low power
consumption and on redesigns to ultimately make these
ESLs battery-less.

Industry, innovation andinfrastructure
Climate Action

Providing a cloud-based solution to ourcustomers
VusionGroup created the VUSION Cloud Retail IoT platform tohelp retailers accelerate their digital transition and transformtheir physical stores into true digital, automated, and datadriven environments connected to consumers and suppliers.
Both Cloud computing and sustainability are emerging astransformative trends. Cloud computing is defined as largescale online shared IT infrastructures. It is revolutionizing
the way in which IT services are provided and managed incompanies. Cloud computing makes it possible to collect,
store and analyze huge quantities of data, reduce the total
costs of ownership of IT, and increase business agility.
These new trends also enable us to reduce ourenvironmental impact: since 2018, we have begun toreduce our infrastructure and on-premise IT resources infavor of cloud-based and serverless solutions. With 81.8
million Cloud-connected ESLs in 2023 compared with 50
million in 2022 and 31 million in 2021, we have built the firstglobal physical retail IoT platform. The VUSION platform ishosted on Microsoft’s Azure cloud, which has committed to
powering 100 percent of its data centers with renewableelectricity by 2025 (Microsoft_Cloud_Carbon_Study_2018,
updated 2020).

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Our Cloud solution is based on four key factors.
Factor and benefits

Technology

1 Dynamic provisioning of resources: Based on latest technologies to provide capacity on-demand; able to activate
optimization of active servers
resources when they are needed, independent of server capacity.
enables energy savings of up to 47%. New servers and computing resources are automatically activated when there isa peak in demand.
Capacity resources are disabled when “idle threshold” is reached.
2 Multi-tenancy: allows many users in
one building to utilize less power
overall than the same number ofusers each using their own
infrastructure

SaaS delivery architecture that enables all clients to access the same softwareon one or a set of linked servers.
By combining demand patterns across many organizations, the peaks andtroughs of computer resource requirements flatten out, reducing the need for
additional infrastructure.

3 Server utilization: increasing
resource utilization rates (fromcurrent low levels of 10 to 20%) tosignificantly improve energy
efficiency

Applications based on serverless architectures so that computing power,
storage, networks and security are distributed among the available services; thevirtual distribution of software ensures that various applications run “separately”
on a physical host, leading to greater data center efficiency.
Eco-designed friendly software that uses more energy-efficient algorithms,
reducing execution time, memory utilization and unnecessary features, andoptimizing the volume of generated data.

4 Partnership with Microsoft Azure

Very clear and ambitious goals for the environmental footprint of data centers.

Pooling of infrastructures
VusionGroup has forged partnerships with the main
manufacturers of Wi-Fi technology to simplify its solutions
and avoid any proprietary or additional infrastructure forconnecting its IoTs. Our IoT communication protocols are
now integrated into Wi-Fi access points. As a result, nextgeneration highspeed Wi-Fi deployments ensure theconvergence of all back office and store connectivity
needs. Stores' investments in equipment and services are
considerably reduced and their return on investment is
amplified while significantly limiting the carbon footprint of
the solution (saving on a dedicated infrastructure).
Today, the Group has a powerful technological ecosystem
and international alliances with all the major global
manufacturers, such as Cisco Meraki, Aruba, Huawei,
Lancom, Mist Juniper, Extreme Networks, Fortinet, etc.

Improvements made to packaging andlogistics

VusionGroup is committed to the climate while
gaining competitiveness over the long term by reducing thecarbon impact of its supply chain. Our initiatives focus on therecyclability of all our packaging consumables as well as thedevelopment of upstream and downstream rail transport,
supporting our road transport service providers in the
renewal of their vehicle fleet in favor of vehicles that comply
with the strictest standards, and researching innovative
solutions to optimize flows and limit CO2,
particularly over the last mile.”

Grégoire Albaut

Head of Logistic Group138

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KPI

GRI
Code Topic

Packaging improvements

301

Materials

Responsible consumption andproduction

Inbound logistics carbon footprint 305

Emissions

Climate Action

SDG

We have leveraged the efficiency of our supply chain to
decrease the volume of packaging used in the shipment ofour products. Close cooperation with one of our industrial
partners in Southeast Asia has resulted in packaging
optimization, including a reduction in the boxes' volume, theremoval of protective plastic sheets from the label screens
and, the use of recyclable material for all of the final
packaging of electronic devices. In addition to reducing theweight and volume of packaging, this has significantly
improved shipping container filling rates and the number of
shipments. It has also led to an increase in the load densityof pallets, and a reduction of the carbon impact per ESL
transported.
The initiative began in 2021. The 2023 audit in kilograms,
for journeys from production facilities to warehouses only,
for our three best-selling ESL SKUs is presented in the tablebelow:
Report for the 3best-selling SKUs

TOTAL

PE bag reduction(kg)

Cardboard
reduction (kg)56,338212,152

Topic

To take things even further, VusionGroup has also set itself
the target of using 100% recyclable consumables for all
packaging. As the cardboard is already recyclable, the issue
is the adhesive tapes and the label holder containing theshipping details. VusionGroup switched to recyclable label
holders during 2023. The roll-out of recyclable adhesive
tapes is planned for 2024.
Regarding inbound freight from our EMSs (Electronic
Manufacturing Services: industrial partners for theassembly of our electronic equipment) in Asia, we havecontinued to monitor the logistics mix between air freight,
road transport, maritime cargo and train transport, so as tofavor these last two modes of transport. From October
2023, goods transportation by rail became possible in
China, which was not the case previously. The train is by far
the least polluting mode of transport, so it will become ourmain focus in 2024.
Our partner is a leader in the Eurasian transport market andis very committed to its multimodal mix. Air transport is onlyused in the case of an emergency or necessity (commercial
prerogatives, temperatures that are too extreme on the
China-Europe route over defined periods of time).
We optimize delivery routes as much as possible in order toreduce our logistics footprint as soon as possible.
This mix of transport methods is taken into account in the
carbon footprint calculations detailed in section 4.3.1.

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4.3.3 Decarbonizing our solutions: Circular economy
GRI
Code Topic

KPI

Number of labels recycled andreporting of waste issued

301

Materials

302

Energy305

Emissions

306

Waste

SDG

Topic

Responsible consumption andproduction
Climate Action

Eco-design, recycling, and reuse of shelf labels
Eco-design has been at the heart of VusionGroup’s
expertise since its creation. In 2016, the Group launched aflagship program aimed at leveraging the circular economy
throughout the label’s life cycle, from its design to the
supply chain, including its refurbishment and recycling. Theenergy transition of the sector will not take place without
good circularity of resources.
The Group has a clear objective: to make the label a
product that generates little waste and has a minimal
carbon footprint. The labels are designed so that they canbe repaired, refurbished (ease of disassembly, availability ofspare parts, price of spare parts and associated services),and then recycled.
Thanks to better energy management, the increased use ofrecyclable materials, and improvements made to the
production, refurbishment, and recycling processes,
VusionGroup is focusing on innovations that emit lessemissions, both during the design phase and the operatingphase.

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Extending the life of technical and electronic
devices, refurbishing our products, optimizing
waste management, etc., all these elements are key toachieving a circular economy, without which the sector'senergy transition will not take place. Our Second Life ESL
program is now a strategic pillar in our businessplan and will be expanded in the coming years.”

Pierre Demoures

SEVP & COO (Global Sales and Customer Services)

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Second Life ESL
When a customer replaces an old generation label with a
new one, we collect the old labels and determine whether
they should be refurbished, recycled, or destroyed.

The numbers speak for themselves: a refurbished label(1)emits 40% of greenhouse gas emissions and requires 47%(2)
fewer resources compared to a non-refurbished label .

The retiring generation of ESLs to be reused or recycled is
carefully inspected and sorted with the aim of recovering
the components that can be reused, and to carry out thenecessary repairs to supply a specific channel with “secondlife” labels.

VusionGroup is therefore making this program a priority.

Our internal recycling flow centralizes the reverse logistics
for used ESLs at two major partner sites of Ingram Micro
Lifecycle (one in France and one in Poland). Ingram Micro
Lifecycle maintains third-party certifications for thecompliance of its management programs, including ISO
14001, ISO 9001, ISO 45001, and others such as TAPA.
FSR. In addition, Ingram Micro Lifecycle's sites focus on theretirement of electronic assets to ensure data security,
regulatory compliance, and environmental and social
responsibility through R2, e-Stewards and others
certifications. Ingram Micro Lifecyle has been awarded the
EcoVadis Platinum medal for four consecutive years.

Our target of recycling 15 million labels per year by 2027 isbased on the following renewal forecasts:
To date, this ESL Second Life process has primarily
involved our customers in Europe, which is home to most of
our mature markets. In the coming years, customers
located in Asia and North America will begin the switch to
new generation ESLs, thus triggering the same type ofreverse logistics flows. We will endeavor to organize theseflows in Europe and North America, as close as possible tothe markets, so as to avoid too much transport-intensive
return logistics.
Note: Recycling statistics vary according to our customers'
projects and their schedules. We are therefore dependent
on our customers’ decisions to dispose of their fleet of oldgeneration labels.

The refurbishment of labels is a crucial component of theGroup’s decarbonization strategy. When a label isrefurbished, its lifespan is doubled.

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




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From 2024, VusionGroup will launch a pilot phase of a new and more laborious industrial recycling process requiring a returnto the factory for the recovery of components needed to produce the new labels.

Electronic waste management
The European Union has enacted several directives in orderto address the distinct environmental challenges related toe-waste, batteries and packaging waste. The overarching
objectives of these guidelines are to reduce the generationof electronic waste, promote product recycling, ensure theproper handling and treatment of hazardous materials, andset targets for waste collection.

(1)
(2)

Each European country has implemented its own
compliance system to effectively manage electronic waste,batteries, and packaging components. By diligently fulfilling
its reporting obligations and making payments to thesecompliance systems, VusionGroup actively contributes toenvironmental protection efforts throughout the EU. This
commitment underlines our responsible business practices
and our role in supporting the broader sustainability
objectives defined by national compliance initiatives.

The total emissions of a refurbished label include those produced for its first life, plus the emissions required for its refurbishment.
Life cycle analysis carried out in 2021 by an environmental engineering firm.

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For our readers who are not familiar with this European
regulatory system: European rules require a prior funding
future destruction of end-of-life products. These systems
are based on the principle of extended producer
responsibility, according to which producers, i.e. those
responsible for marketing certain products, can be maderesponsible for financing or organizing the prevention andthe management of waste from these end-of-life products.
Taking the example of this European system of financing
electronic waste, batteries, and packaging according to theweight of the latter placed on the market during the fiscal
year, the table below summarizes the quantities placed on
the market in Europe and North America, during the 2023
fiscal year:

Marketed weight (in kg)

Type of waste

IoT electronic waste WEEE

hazardous waste

Cells and batteries
Packaging

non-hazardous waste

2023

2022

4,604,938

3,872,821

1,190,118

966,287

895,971765,455

The Group’s information systems enable the reporting of these quantities for a scope representing 93% of the Group’s revenue in 2022 and 95.5% in
2023.

4.3.4 Decarbonizing our organization
Optimizing employee travel and incentives to reduce carbon footprint
GRI
Code Topic

KPI

Measures taken to protect thescope 1 environment

305

SDG

Emissions

Topic

Climate Action

The mobility of our employees is one of the emission factors within the Group, including company cars, home-workcommuting and business travel. To meet this challenge, VusionGroup has implemented strategies for each of these items:
1) Company cars: for several years, we have favored hybrid
or electric engines over internal combustion engines when
renewing our vehicle fleet. This transition should result in a
predominantly electric fleet by 2030.

The details of this breakdown are given below. We canalready see the increased number of vehicles equippedwith hybrid or electric engines.

2023

Number ofvehicles byengine typeIn %Electric
engines
8%2022 revised*Hybrid Combustion
engines
engines
24%

68%Electric
engines6%2021

Hybrid Combustion
engines
engines18%

76%

Hybrid orelectric Combustion
engines
engines
22%78%* the vehicle count in 2022 has a better degree of reliability.

This strategy is aligned with our Scope 1 emissions
reduction targets.
2) Emissions generated by commuting: our efforts also
include a two-day-a-week teleworking policy for the
majority of our employees, which avoids recurring daily
commutes (see section 4.5.3). In addition, office premises
are chosen based on their accessibility by public transport,
in order to enhance recruitment and reduce the carbon
audit of employees' home-workplace travel. The Group has
also set up a “sustainable mobility package” to offer amileage allowance to employees traveling to work by
bicycle or scooter.

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In addition, we have invested in video-conferencing
equipment for the meeting rooms. These investments
promote efficient and inclusive meetings and also minimize
employee travel emissions.
3) Business travel: we will use a travel agency covering theentire Group in 2024. This will help us optimize reportingand define clear and consistent guidelines across all
countries.

ESG Report
Climate strategy: decarbonizing our solutions

Business waste
VusionGroup recognizes the importance of waste
management. In each of the Company’s premises aroundthe world (offices and warehouses), everyday household
waste is the most important to manage. When processing
this waste, the Group complies with the laws andregulations in force in each country and the company’senvironmental policy. It is collected by local waste
management teams and sorted according to the system
specific to the country in question.
This waste management policy also applies to technicalequipment (computers, peripherals, etc.) that are no longer
needed within VusionGroup. Our strict policy prohibits thedisposal of any type of equipment through dumpsters,

dumpsites, or landfills. It requires for this equipment to becollected by qualified manufacturers under contract for
disposal: we use the service provider Ingram Micro for all
VusionGroup IT equipment.
To reduce waste production, VusionGroup has set up
awareness-raising campaigns in its premises: for example,“Reduce, Reuse, Recycle” posters. The Group also
distributes equipment including a reusable cup, a tote bag,and a water bottle to each employee.
The Group has also set itself the goal of totally eliminating
the use of plastic bottles at events or customer meetings
held at the premises.

Water and energy consumption at our corporate offices: the impact on our carbon
audit is not deemed significant
The amount of water used by VusionGroup comes mainly
from its premises (offices and warehouses). None arelocated in a protected area. As a result, the Group does notuse water from restricted or protected areas, orwatersheds. Municipal water is the only water source used.
The majority of water consumption is for domestic use by
employees.
We have no significant environmental impact on water
sources or the watershed ecosystem, and we have notabstracted water from areas under water stress. The
domestic gray water generated is treated by discharging it
directly into the systems in accordance with the law.

VusionGroup recognizes that water is a limited andinvaluable vital resource and adheres to Sustainable
Development Goal 6 “Ensure the availability andsustainable management of water and sanitation for all”. In
response to this, we are working to ensure that water isused sparingly in our offices around the world. Indeed,
VusionGroup takes measures to reduce water consumption
by educating and engaging its employees on best practices
through internal communication programs.

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4.3.5 TCFD (Task Force on Climate-Related Financial Disclosures)
reporting
For the purpose of presenting its climate strategy in accordance with international recommendations, VusionGroup haspresented its strategy below, along with its risk management and its ambitions in terms of climate strategy according to the
TCFD format (the governance having been detailed in section 4.2.3).
Recommended
information

References

Brief description

Governance
Describe the organization’s governance in relation to ESG and climate risks and opportunities.
Monitoring ofclimate-relatedrisks andopportunities by
the Board

Section 3
and section
4.2.4 of thisreport• The Group’s climate strategy was presented and discussed in 2023 with the ESG,
Nomination and Remuneration Committee and in 2024 with the Strategy and ESG
Committee following the Board’s decision in December 2023 to appoint a new
specific committee to oversee the Group’s climate strategy.
• VusionGroup’s International Advisory Board - composed of industry and financial
leaders from the private sector and senior managers of European public sector
entities - also reviews the Company’s climate strategy and objectives.
• The Chairman and CEO oversees the implementation of the climate-related actionplans through monthly meetings with the main contributors.

Management’s
role in assessing
and managing
climate-relatedrisks andopportunities

Section 4.2.4of this report• Thought leadership: VusionGroup management actively participates in the global
dialog (World Economic Forum, Davos Forum, COP28, etc.) on the digitaltransformation of the retail sector and how it contributes to the decarbonization of
the segment as a whole.
• The VusionGroup's management is committed to building a business model in linewith the Paris Agreement in order to limit global warming to a level below 1.5°C, andin compliance with the United Nations guidelines. On the strength of thiscommitment, the Group’s strategy is to implement its “Positive retail” roadmap: 1)
decarbonize its solutions, 2) calculate the avoided emissions of its customers
through use cases of its solutions.
• The Group’s management assesses the risks and opportunities related to climatechange by: 1) reviewing the carbon emissions of its own activities; 2) taking into
account customer use cases (assessment of the positive impact of the Group’s
solutions on its customers’ carbon footprints) and 3) assessing the potential impact
of climate-related risks on its assets, business and value chain.
• The objectives and activities of the contributing departments are established with
the ESG department, which oversees the Company’s ESG efforts, including theclimate strategy. It is in the area of innovation and eco-design of low-carbon
products, steered and developed by R&D, that the Company makes the mostpositive contribution to climate issues.
• An action plan covering the objectives related to climate change, as defined above,
has been developed in collaboration with the R&D department, after-sales service,
logistics, and ESG (carbon footprint calculation campaigns, life cycle analysis prior
to any product launch, ESL recovery and recycling campaigns, carbon intensity
measurements). Opportunities are carefully assessed by the marketing and sales
departments based on customer use cases, and the Group offers solutions to reduce
their greenhouse gas emissions in stores. A personalized offer is submitted after theidentification of each opportunity.

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Recommended
information

References

Brief description

Strategy
Describe the actual and potential impacts of climate-related risks and opportunities on the organization’s business,strategy, and financial planning when this information is significant.
Climate-relatedrisks andopportunities
Section 2 of
identified by thethis reportorganization in
the short,medium, and long
term

Risks
Transition risks
Short-term Reputation

Physical risksGroup sites• All VusionGroup stakeholders• An analysis of climate risks, in
expect action on climate change.
addition to an analysis of natural
Not responding to thesedisasters, was carried out in early
expectations constitutes a risk2024 in order to understand thefactor that could affect theGroup’s exposure and identify
Group’s reputation.
risk management actions.
Mediumterm

Financial

Supply• As we transition towards a moresustainable economy, one major
challenge relates to potential
new regulations enforcing a
global or regional carbon pricing
system which would have direct
financial consequences on allcompanies.

• If the global ecological transition
does not happen quickly enough,rising temperatures, droughts,
and climate disasters(particularly floods) could have a
direct impact on our upstream
supply and industrial assembly
chain.

Long-term

Financial

Supply and energy• If the global ecological transition
does not happen apace, risingtemperatures and water scarcity
could have a direct impact on our
upstream supply chain as well as
the energy supply for our data
centers.

• If our supply chain is affected interms of its organization andcosts, a price increase should beconsidered

Section 4.2
Opportunitiesof this report • “Positive retail” project: managing the digital transformation of the retail sector
The Group has developed a complete digital IoT platform that allows retailers toconnect and digitize their points of sale, automate low value-added processes, better
understand, inform and serve customers, and produce quality information to optimize
at shelf life at all times, avoid disruptions and waste, and create an omnichannel service
that builds loyalty and is adapted to new consumer expectations. The Group’s
development of cutting-edge solutions responds to the strong customer demand forthese technologies, as evidenced by the organization’s continued double-digit growth.
VusionGroup’s “Positive retail” strategy aims to amplify the Group’s leading role as aprovider of solutions for the decarbonization of the physical retail sector.
• The “employer brand” associated with sustainable development
Companies that take a fundamental and ambitious approach to tackling climate change
are received positively by millennials and younger job seekers, putting VusionGroup at
an advantage in terms of talent recruitment and retention.
• Increased visibility on capital markets
As part of their allocation policy, some investment portfolios favor companies thatprovide decarbonization solutions for industry and services. VusionGroup’s contribution
to the decarbonization of physical retail should allow it to benefit from this growing
pool of investors. “Positive retail” project: driving the digital transformation of the retailsector.

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Recommended
information

References

Impact ofSection 4.3
climate-relatedof this reportrisks andopportunities on
the organization’s
activities,
strategy, andfinancial planning

Brief description
Risk-related investments and expenses
Capital expenditure (Capex):
Financial planning ensures that sufficient capital is allocated to R&D to advance lowcarbon IoT research and development projects. The business plans include a “carbon
intensity” component in order to guarantee a product and service mix that makes apositive contribution to the environment.
A recent example of sustainable investment in the field of innovation, the EdgeSense
project (VusionGroup’s new shelf digitization system), required an investment of €22
million in 2022 and €37 million in 2023. EdgeSense is a more resource-efficient andenergy-efficient way to deploy electronic labels (ESL). Rather than using several
individual electronic labels (ESLs) containing their own battery, a “smart” rail centralizes
and supplies the energy and data necessary to six or seven “passive” ESLs placed on
the rail. This new proprietary system was initially designed at the request of a major US
retail customer.
Operating costs/expenses:• Workforce
To develop the ESG strategy, the Group has set up a dedicated team of three people.
• Consultancy fees for ESG and climate-related topics
Our annual budget includes consultancy fees for ESG and climate-related topics.
These services are provided by recognized specialists and cover activities such as
life cycle analysis, carbon footprint measurement, avoided emissions modeling,
review and audit of our indicators and reporting documents.
• Audit expenses
European environmental regulations have resulted in consulting and auditing
expenses to ensure compliance with the Taxonomy.
• Eco-contribution costs (marketing-related expenses)
An eco-contribution tax is imposed in several European countries as a prerequisite
for the eventual destruction of VusionGroup IoT devices at the end of their life, in
accordance with industry standards, and the safe recycling of the lithium batteries
used in our ESLs.
Opportunities:• Business development opportunities
Thanks to its range of low-carbon products and services, the Group has won
numerous contracts and calls for tenders. A clear climate strategy is welcomed andincreasingly requested by existing and potential customers.
• Financing opportunities
The Group’s climate strategy played a role in the refinancing of part of our debt in2023. The conditions of certain new loans include the achievement of objectives
related to the climate strategy such as: 1) the reduction of absolute greenhouse gas
emissions of Scopes 1 and 2; 2) Scope 3 intensity reduction as measured in relation
to the Company’s added value and 3) the number of ESLs recycled for resale or a 2ndlife (one of the main components of VusionGroup’s circularity strategy).

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Recommended
information

References

Describe theSection 2.1 ofresilience of thethis reportorganization’s
strategy, taking
into accountdifferent climaterelated scenarios,
including a
scenario of 2
degrees Celsius
or less

Brief description
The analysis of the resilience of the business model and its adaptation to the impacts ofclimate change will be a key element in addressing the risk related to extreme climate
events and other climate-related events. The Group has carried out a climate risk
assessment at its main sites and a few major subcontracting sites.
To better understand the Group’s ability to withstand certain climate scenarios, a study
was carried out in 2023 and 2024 to assess climate-related risks and provide guidanceon risk management. The study focused on physical risks and climate disasters within
the following framework:
Risk• Mapping of climate risk exposures for operations, using risk modelingassessment
based on IPCC scenarios.
• Assessment of the resilience of operations.
• Assessment of potential effects on the business plan.
Risk• Identification of priority actions.
management • Development of the Group’s adaptation strategy.
• Change management within operational departments
VusionGroup has therefore tested the resilience of its activity to the impacts of climatechange in order to:• understand its exposure to climate risk for a panel of 20 sites (supplier sites or main
Group sites), using the analysis of climate scenarios; one which models a warming
scenario of 1.5°C, the second scenario relates to a warming of between 2 and 3 ° C,
and the third, warming greater than 4°C.
• the conclusions of this study make it possible to target by subcontracting site,storage, research center offices, etc. the risk management actions to be initiated andin interaction with our suppliers affected. Very clear statistics on the risks caused byheat, the risk of fire, the risk of drought, the risk of massive rainfall, cyclones, floods,
submersion, are available to the Group so that it can implement risk prevention andmitigation actions in the coming years.
In addition, the Group:• finalized a business continuity plan and will prepare quantified business restoration
scenarios in 2024 and 2025.
• also finalized an initial inventory and formalized the procedures for restarting andmaintaining the digital management tools and databases required by VusionGroup’s
customers, which are essential to the resilience of our organization. Data storage
management and Cloud service providers are in place to ensure the proper
functioning of digital management tools. In 2022, the Group obtained ISO 27001
certification for these systems.

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Recommended
information

References

Brief description

Risk management
Indicate how the organization identifies, assesses, and manages climate-related risks
Organizational
processes for
identifying andassessingclimate-related
risks

Section 2.1
The Group uses the following identification method:and section
1) a top-down analysis conducted by a team of managers, focused on the assessment
4.2.3.1 of this of strategic risks; andreport2) a bottom-up analysis carried out by the Company's managers who identify low,
medium or high-level risks within their respective areas of responsibility (section 2.1).
Similarly, the ESG risk materiality study was carried out (Section 4.2.3.1).
In addition, a study on the climate risks incurred by the key sites in our value chain was
conducted in 2023 and finalized in early 2024.
The risk assessment was carried out according to three plausible climate scenarios:• a scenario below 2°C (1.5°C scenario);• a 2-3°C scenario; and• a scenario of a 4°C rise in temperatures.
These are in line with the IPCC representative concentration and the RCP2.6 (SSP1),
RCP4.5 (SSP2), and RCP8.5 (SSP5) shared socio-economic trajectories (RCP).

Organizational
processes for
managing
climate-relatedrisks

Potential supply chain disruption due to climate-related risks and/or related
regulatory changes. To address this risk, the Company: 1) had its environmental
management system audited and obtained ISO 14001 certification in 2022 and2) audited most of its suppliers via the “EcoVadis Responsible Procurement Program,”
which ensures compliance with international environmental standards.
Risks related to more extreme and frequent disasters and natural events. The
measures taken aim to ensure the continuity of operations in the field of services (Cloud
platform) and production (IoT devices) (section 4.3). This includes the measuresnecessary to obtain ISO 27001 certification on information security systems and amulti-site sourcing strategy for components and manufacturing (see discussion on
geographical diversification). Most of our employees are located in geographical areasthat are not impacted by extreme weather events. Consequently, their safety is not at
risk.
Supporting the business lines in the change process began with training on global
warming, provided to all our employees in 2021, followed by strong awareness-raisingactions over the last three years. The work of our teams has evolved to respond toclient climate requirements, current and future regulations, questions from insurancecompanies, ESG rating agency questionnaires completed by the Group for selfassessment purposes and an R&D approach focused on carbon impact.
Climate-related risks associated with geographic concentration. VusionGroup hasdiversified the geographic distribution of its outsourced manufacturing footprint, which
was historically concentrated on the Asian continent, in part to mitigate the climaterelated risks associated with geographic concentration. In 2023, the Group planned forthe commissioning of an ESL production and assembly site in Chihuahua, Mexico. In
addition to mitigating the geographical risk, the new production site enables the Groupto reduce the carbon impact of its logistics, with operations much closer to the North
American market (the United States should be the main contributor to VusionGroup’s
growth over the next five years).

Integration of theidentification,assessment, andmanagement ofclimate-relatedrisks into theorganization’s
overall risk
management

148

The Group's ESG Director is also the General Secretary and is responsible for risk
identification, the Group’s insurance program, and issues related to the Group’s
governance. Therefore, the identification of climate-related risks and the management
and integration of climate-related issues into the Company’s governance, strategy andobjectives fall within her remit. She works closely with the Company’s operational andadministrative teams to assess risks and establish relevant objectives for eachdepartment to address these risks. In addition, the study of the risks caused by global
warming and natural disasters (see above) was carried out in the last months of the2023 fiscal year and the beginning of 2024.

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Recommended
information

References

Brief description

Indicators and objectives

Describe the indicators and objectives used to assess and manage climate-related risks and opportunities when thisinformation is significant.
Processes for
identifying andassessingclimate-related
risks

Section 4.3
To address climate risk, the Group began an analysis of acute and chronic risks on aof this report panel of around twenty sites, both subcontracting and Group establishments: thisanalysis made it possible to identify the institutions with more or less long-term risks
and to pursue a risk management strategy taking into account statistical changes
induced by warming temperatures.
What's more, to address climate risk, the Group measures its carbon emissions in order
to identify priority levers for improvement or change. The main indicators in this respectare:• Number of patents filed relating to low-energy consumption• Life cycle analysis of any new product (before launch)• Carbon intensity (kg of CO2/€'000 of added value)• Circularity: number of labels recycled• ESG rating: Carbon Disclosure Project (B rating) - EcoVadis Environmental Pillar(90/100)

Communicate
Scopes 1, 2 and where applicable- 3 greenhousegas emissions
and theassociated risks
Describe theobjectives usedby theorganization to
manage climaterelated risks andopportunities andperformanceagainstobjectives• Scope 1: 645 tons CO2-eq• Scope 2: 449 tons CO2-eq• Scope 3: 135,871 CO2-eq
VusionGroup intends to reduce its own carbon emissions and offer innovative solutions
to its customers to help them reduce or optimize their carbon footprint. Its targets are
discussed above in the indicators section. The Group’s 2024 climate targets include:• Quantify avoided emissions scenarios• Obtain carbon footprint and carbon intensity certifications

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Our climate strategy: decarbonization with our customers

4.4 Our climate strategy: decarbonization with our customers
Making the physical store a digital asset

4.4.1

Decarbonization at our customers’ premises: avoided emissions

Avoided emissions: definition and application
KPI

GRI
Code

Calculation of avoided emissions

305-3

Topic

Other indirect (scope3) GHG
emissions

Avoided emissions measure an organization’s contribution
to the decarbonization of an economy outside its scope ofactivity. The avoided emissions are estimated based on acounterfactual reference scenario that reflects the most
likely situation that would have occurred in the absence ofthe low-carbon solution. A solution avoids emissions if it
allows a reduction compared to the baseline situation.
The quality of an estimate of avoided emissions is therefore
based on the attention paid to the assumptions used.
VusionGroup believes that its solutions contribute inseveral ways to the decarbonization of the retail sector. In
order to demonstrate the major effect of this use case on
our customers, in 2024 the Group will undertake an indepth analysis and modeling of this calculation of avoided
emissions.

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Topic

Industry, innovation &infrastructure

However, several concrete examples can already be cited,
all directly enabled by the use of VusionGroup solutions:• more connected, profitable. and attractive physicalstores, and therefore capitalization on existing
infrastructures and a physical channel with many
advantages;• facilitating the preparation of e-commerce orders andtherefore fewer dedicated warehouses needing to bebuilt;• fight against food waste;• better transparency for the consumer, in particular on
ESG ratings that could benefit the customer andpotentially generate new and more virtuous consumption
habits.

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Physical retail: the need to capitalize on existing stores
An essential asset in our societies
Over the past decade, physical retail has had to contend
with the impact of the growing e-commerce trend, as wellas an evolving omnichannel model put in place by theworld's largest retailers. A seamless omnichannel modelcannot be achieved without the digitalization of stores and
KPI

GRI
Code

the connection of physical retail to other distribution
channels. Ensuring the relevance and ongoing developmentof physical retail is also crucial to the well-being of urban
landscapes as we know them, as stores provide a numberof social benefits that would be difficult to replace.

Topic

SDG

Topic

Committing to Positive retail, ourtechnology and solutions

203-2

Significant indirect economic
impacts

Industry, innovation andinfrastructure

Committing to Positive retail, ourtechnology and solutions

203-2

Significant indirect economic
impacts

Decent work and economic
growthPhysical stores are a precious common good that needs tobe protected.
For retailers, stores are core assets.
For brands, stores are by far the largest distribution
channel, with the highest qualified traffic and conversion
rates.
For consumers, stores represent immediate access to
products and a five-sense shopping experience.
Stores also play a crucial role in the social well-being of ourworld.
For society, in the broadest sense, stores represent onesixth of all jobs globally and are the social hubs and beatinghearts of our cities.
For the planet, stores are physical assets that have alreadybeen built and so do not represent any additional
artificialization.

Local e-commerce: avoid the construction oforder preparation warehouses
The growth in online sales is such that the Boston Retail(1)estimates that e-commerce could
Consulting Groupaccount for more than 40% of total sales in the retail sector
by 2027, compared to around 20% today. This scenario
2would require the construction of millions of m of
distribution warehouses, with a significant increase in CO2emissions.
We can help avoid this increase in CO2 emissions sincephysical stores constitute an ideal local logistics network toserve this growth.
The Group relies on the storage and distribution
infrastructure already available in existing stores and isdeveloping a technological offering that reduces the needto build new warehouses.

Keeping physical stores profitable and attractive
KPI

GRI
Code

Topic

SDG

Industry, innovation andinfrastructure

Number of connected stores
203-2

Significant indirect economic
impacts

Number of connected stores andnumber of connected labels
Because stores are vital assets for the proper functioning ofa society (employment, cohesion, social ties, etc.),
VusionGroup is convinced that it is essential to breathe newlife them.
Bringing together physical and e-commerce is at the heartof the omnichannel model, and is a crucial step in thetransition of retail. This convergence enables consumers tohave the shopping flexibility they seek. At the same time,physical stores are revitalized by digital tools. These should
enable the automation of low-value-added processes, theoptimization of inventory management, better transparency
(1)

Topic

Responsible consumption andproduction

for the consumer, and the reduction of food waste andtrash. These improvements all contribute to reducing thecarbon intensity of the sector.
Thanks to VusionGroup solutions (IoT platform, ESLs,
Captana photos, memory platform, etc.), retailers can easily
monitor, in real time and in a granular manner, key
performance indicators that ensure the proper functioningof the store. VusionGroup solutions are solution-oriented
and enable concrete and rapid actions to be taken. The
store improves its profitability, as many sticking points as

E-Commerce Poised to Capture 41% of Global Retail Sales by 2027 — Up from Just 18% in 2017. https://www.bcg.com/press/31october2023ecommerce-global-retail-sales

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possible are eliminated and the customer experience isimproved.
The VUSION Retail IoT Cloud platform is designed to
become the open, holistic platform that transforms store

digitalization into collaboration. To date, 81 million online
labels are connected to our VUSION Retail IoT platform andthus offer the benefits of rigorous reference control.

December 31,
2023

December 31,
2022

December 31,
2021

17,171

10,398

7,022

81,825,808

50,002,301

31,017,610

Number of stores connected to the Cloud
Number of connected labels

Such gains lead to improved store management, with more time for in-store staff to focus on high-value-added tasks,
notably providing better customer service. Please also refer to section 4.3.2 of this report.

Reducing food waste
Product disposal and food waste are significant issues in
the retail sector. Stores are faced with the need to rid theirstores of products that are unfit for consumption, past their
expiration dates, or not wanted by their customers, hurting
profitability and the environment.
Of the 5 billion metric tons of food produced each year,
40% is wasted. Retailers are responsible for 20% of thiswaste as they are forced to throw products away,
particularly if they are unfit for consumption or have(2)
expired . The VUSION Retail IoT platform allows retailers
KPI

GRI
Code

Fight against food waste

203-2

to closely monitor these products, prices, and expiration
dates. By combining this solution with artificial intelligence(directly from VusionGroup solutions or those of its
partners), it is now possible to adjust the prices,
promotions, or placement of these products when theyreach their end of life. The platform allows retailers toclosely monitor the evolution of a shelf and precisely
identify products with a high breakage rate. Corrective
actions are then developed, leading to the launch oftargeted campaigns to reduce this rate.

Topic

SDG

Significant indirect economic
impacts

Topic

Responsible consumption andproduction     ! "%% % $%%%%%%% %%!% ! "#%  %%% %% %% %%%%In 2021, VusionGroup announced a partnership with
Smartway, a start-up that offers retailers an artificial
intelligence (AI)-powered solution to control food waste
while also improving their profitability. Together, we havedeveloped Smartdetection Flash Evo, a unique solution for
detecting products with short expiry dates in stores. Thissolution eliminates the need to check products individuallyand spend hours in the aisle to identify and remove soonto-be-expired products. The solution works via flashinglabels, signaling soon-to-be expired products. In less than 4minutes, more than 500 products can be checked anddiscounted.

(2)

In the Kavanagh’s pilot store in London, the VusionGroupfunctionality:• increased efficiency (+8 hours saved for each employee
in charge of tracking expiration dates);• prevented more than one ton of emissions per month in
the store.
In 2021, this solution received multiple awards such as the
LSA and Perifem prizes for sustainability.

Source : https://www.wwf.fr/sites/default/files/doc-2022-05/20220523_Rapport_Europe-d%C3%A9vore-la-plan%C3%A8te_WWFFrance.pdf

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In 2024, the Group is committed to modeling this avoided
emissions scenario: according to the United Nations, 8% of
greenhouse gas emissions worldwide are linked to foodwaste across all networks.
(3)

ADEME
specifies that this waste represents an
unnecessary withdrawal of natural resources, such asarable land and water, and greenhouse gas emissions that
could be avoided. It is also waste that could be avoided
and, therefore, would not have to be processed and would
not incur the related management costs.
All stages of the food chain, including production,
processing, distribution, and consumption, contribute tofood loss and waste.
VusionGroup wishes to contribute, in its own way, toreducing these figures. The Company believes that its
solution, by allowing for an automated and rapid
adjustment of prices, limits food waste and thus avoids
emissions. At constant demand, reducing waste makes it
possible to reduce production, and therefore emissions.
Demonstrating the existence of avoided emissions
presumes that the Group’s solution, when combined with adedicated application, makes it possible to limit waste andby how much.

Providing transparency to consumers
KPI

GRI
Code

Topic

SDG

Topic

Good health and well-being
Greater transparency forthe consumer

203-2

Significant indirect
economic impacts

Responsible consumption andproduction

Consumer choice is essential for real change to take placein society.
Several pieces of information are necessary to make an
informed product choice: in addition to the price, we needto know the freshness, quality, origin, allergens,composition, resources required for production, emissions(...). This is why regulations have introduced new marketing
standards concerning labeling: origin, nutri-score, carbon
score, etc. All these regulations aim to better informconsumers in their choices in terms of quality, health, andthe environment.
As the amount of mandatory information to display
increases, ESLs become the perfect answer to help enable
fast, productive, and effective updates, to ensure theinformation shown to the customer is always accurate andcompliant with regulations. ESLs are themselves additional
expression surfaces and also make it possible to redirect
the customer (NFC, QR code, etc.).
Greater transparency for the consumer will lead to a
reduction in emissions through:• A seasonal, more local, more plant-based food dietwhich, therefore, emits less CO2 equivalent;• Pressure on distributors, who will adapt their ranges toinclude products adapted to new consumer expectations;          
%%%% %%%%! %%  %

In 2023, VusionGroup announced a partnership with
HowGood, a company that has created a database listing
the social and environmental attributes of more than two
million everyday consumer products. Badges are used tohighlight the most environmentally friendly products(“Carbon,” “Water smart,” etc.), the best composed (“Clean
label,” “Minimally processed,” etc.) and even those
providing the most protection for producers (“Fair labor,”etc.). Thanks to this partnership, VusionGroup will be able
to solidify its commitment to greater transparency for the
consumer and offer retailers a simple and integrated
solution.

• Pressure on manufacturers, who will change their
manufacturing processes/the composition of theirproducts.

(3)

ADEME: Agence de la transition écologique [The French Agency for Ecological Transition]

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4.4.2 European taxonomy
Context and consistency

Explanation of the European Green Taxonomy

The publication of European Regulation 2020/852 of June(1)
18, 2020(the “Taxonomy” regulation) aims to define acommon framework for analyzing the economic activities ofcompanies in order to define those that can be considered“sustainable” within the meaning of the Taxonomy. As partof the European Green Deal, the objective is to direct
financial flows toward these types of assets in order toachieve the objective of carbon neutrality by 2050. In thisrespect, for the 2023 fiscal year, companies must publish
the share of their revenue, capital expenditure andoperating expenses:

For the 2023 fiscal year, the Group analyzed its activities
according to the eligibility and alignment criteria of the firsttwo climate objectives of the Taxonomy as well as theeligibility criteria for the four environmental objectives.

• Eligible and aligned with the first two objectives of
mitigation and adaptation to climate change• Eligible for the four new objectives detailed below
The appendices to the publication of June 18, 2020, define
the list of activities covered by the Taxonomy regulation.
For each activity, a definition is given to meet the eligibility
criteria of the activity as well as a list of technical criteria tobe respected in order to justify the alignment.
For the 2023 fiscal year, all of the following texts weretaken into account when carrying out our analyses:• The Climate Delegated Regulation of June 4, 2021, and its
appendices on climate change mitigation and(2)adaptation ;• Amendments to Objectives 1 and 2 amending Delegated(3) (4)
Regulation (EU) No. 2021/2139;• The publication of the last four objectives via theCommission’s Delegated Regulation (EU) of June 27,2023, supplementing Delegated Regulation (EU)(5)
2020/2139 ;• All FAQs published by the European Commission.

(1)
(2)
(3)
(4)
(5)

climate change mitigation (CCM);
climate change adaptation (CCA);
sustainable use and protection of aquatic andmarine resources (WTR);
the transition to a circular economy (CE);pollution prevention and control (PPE);the protection and restoration of biodiversity andecosystems (BIO).
The Group must then present the share of its revenue,
capital expenditure (“Capex”), and its operating expenses(“Opex”), associated with eligible and aligned economic
activities, where applicable, associated technical criteria as
defined by the Taxonomy. An economic activity is eligible
when it is explicitly described in the list included at thisstage in the annexes of the Regulation and it is likely tocontribute substantially to one of the six environmental
objectives.
An eligible activity then becomes aligned when it meets all
the technical screening criteria, consisting of specificconditions and the performance thresholds necessary todemonstrate a substantial contribution to one of the six
environmental objectives, without significantly harming theother environmental objectives and in accordance withminimum safeguards related to human rights, corruption,
taxation, and competition law.

https://eur-lex.europa.eu/legal-content/FR/TXT/PDF/?uri=CELEX:32020R0852&from=EN
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=PI_COM:C (2021 )2800&from=EN
https://eur-lex.europa.eu/resource.html?uri=cellar:aeb97864-150e-11ee-806b-01aa75ed71a1.0022.02/DOC_2&format=PDF
https://eur-lex.europa.eu/resource.html?uri=cellar:aeb97864-150e-11ee-806b-01aa75ed71a1.0022.02/DOC_3&format=PDF
Commission Delegated Regulation (EU) 2023/2486 of June 27, 2023, supplementing Regulation (EU) 2020/852 of the European Parliament and of
the Council with the criteria for technical examination to determine the conditions under which an economic activity can be considered ascontributing substantially to the sustainable use and protection of aquatic and marine resources, the transition to a circular economy, the prevention
and reduction of pollution, or the protection and restoration of biodiversity and ecosystems, and if this economic activity does not cause significant
harm to any of the other environmental objectives, and amending Commission Delegated Regulation (EU) 2021/2178 as regards the information to be
published specifically for these economic activities (europa.eu)

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DEFINITION
Eligible activities become aligned if they meet the following technical criteria:
SUBSTANTIAL
CONTRIBUTION (SC)DO NO SIGNIFICANT
HARM (DNSH)MINIMUM
SAFEGUARDS (MS)The activities comply with thetechnical screening criteria set
for each environmental
objective.

The activities do not have amaterial impact on any of theother five environmental
objectives.

Activities are carried out inaccordance with theInternational Charter of
Human Rights and theprinciples set by the OECD,
the UN, or the ILO, inparticular on corruption,
taxation, and competition
law.

Building on its environmental, social, and societal
commitments, VusionGroup closely monitors the work of
the European Commission to analyze activities in order todirect the investments of public and private players toward
projects contributing to the transition to a sustainable andlow-carbon economy.

To meet these obligations, VusionGroup has set up a
working group composed mainly of members of the ESG
and Management Control unit, supported by a specialized
firm since the 2022 fiscal year. This organization will berenewed for the 2024 fiscal year.

Assessment and methodologies
Qualification of the business model’s eligibility for Taxonomy
Determination of activities eligible for taxonomy
The analysis of our eligible activities was carried out on all six objectives of the Taxonomy regulation. For the 2023 fiscal
year, the following activities are considered eligible:
Name of the activity

6.5 Transportation by
motorcycle, private car,and light commercial
vehicle
7.7 Acquisition andownership of buildings

Section of the ESG
report concerned

Objective

Group activities

Objective 1: Climate change mitigation

Long-term vehicleleasing

4.3

Property purchaseor lease

4.3

Objective 2: Climate change adaptation
Objective 1: Climate change mitigation
Objective 2: Climate change adaptation

VusionGroup has retained the same approach as last year
to value its capital expenditure under individual measures
to lead to reductions in greenhouse gas emissions. The
capital expenditure used corresponds to the right-of-use
expenditure calculated in accordance with IFRS 16, mainly
associated with the leases of buildings and vehicles.

In 2023, we did not report eligibility for the following
activities. The aim is to continue our work in order toinclude it in our future publications:

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Name of the activity

Objective

8.2 Data-driven solutions Objective 1: Climate
for greenhouse gaschange mitigation
emission reductions:Objective 2: Climatechange adaptation

5.1. Repairs,
refurbishment, andremanufacturing(Circular Economy)

Objective 4:
Transition to acircular economy

5.4. Sale of second-hand Objective 4:
goods (Circular Economy) Transition to acircular economy

Section of the DPEF
concerned

Group activities

Use of VUSION technology to centralize
online order preparation directly in stores,
avoiding the construction of a building
dedicated to e-commerce activity.

The avoided emissions
induced by oursolutions associatedwith activity 8.2 aresubject to calculations
Better management of inventory andthat are in the process
consumption deadlines, elements of theof being made more
emission value chain (Captana camera).
reliable byGreater transparency for the consumer thanks VusionGroup. In orderto the expression areas of ESLs.
to demonstrate that our
Optimization of servers to save energy.
solutions make aCentralization of servers of several companies substantial contribution
to objectives 1 and 2,
in the same place.
we prefer to benefit
Microsoft Azure partnership with the aim offrom an additional year
powering servers with 100% renewableto validate the entire
electricity by 2025
approach
Repackaging and recycling of Vusion labels.

Sale of recycled Vusion labels.

All of our “Second Life”
offer, attached toactivities 5.1 and 5.4, isbeing implemented
gradually and has not
yet generated sufficientrevenue to justify workon its eligibility.

Approach to identifying financial indicators (revenue, capital expenditure, andoperating expenditure)
The financial information used is taken from the Group’s
information
systems(investment
monitoring
andconsolidated financial statements) at the annual accountclosing date. They were the subject of a joint analysis andcontrol by the consolidation and management control
teams in order to ensure consistency with the consolidated
revenue and the Capex presented in the Notes to theconsolidated financial statements.

2. Capital expenditure (Capex)

1. Revenues(6)
Definition : The proportion of economic activities eligible
for the Taxonomy in the total revenue was calculated as theshare of revenue from products and services associatedwith the economic activities eligible for the Taxonomy(numerator) divided by the revenue (denominator), in eachcase for the fiscal year from January 1, 2023 to December
31, 2023. The denominator of the indicator relating to therevenue is based on consolidated revenue.

3. Operating Costs (Opex)(7)

Definition : The CAPEX indicator is defined as the Capex
eligible for Taxonomy (numerator) divided by the total
Capex (denominator). Total Capex consists of acquisitionsof property, plant, and equipment and intangible assets(excluding goodwill) during the financial year, before
depreciation and amortization and excluding changes in fairvalue.

(8)

Definition : the operating expenses used by the Group in
application of the provisions of the Taxonomy, as plannedfor 2023, were restricted to the following categories:a) research and development expenses, including, inparticular, the associated personnel costs, restated fortax credits received over the period;b) short-term leases;c) maintenance, upkeep, and repair costs for industrial
processes and buildings, including the associatedpersonnel costs.

(6)

(7)

(8)

For more details on the accounting principles applied to consolidated revenue, see Section 6.1.2. Note II.1.18 of the financial statements included in
the 2023 Universal Registration Document. Reconciliation: Consolidated revenue can be reconciled with the financial statements, see Section 6.1.2.
Note 15 and Section 6.1.1. Note 1.2 in the 2023 Universal Registration Document.
It includes, in particular, assets related to right-of-use assets (IFRS 16). For more details on the accounting principles applicable to Capex, see Section
6.1.2. Note II.1.2. of the financial statements included in the 2023 Universal Registration Document. Reconciliation: Total capital expenditure may bereconciled with the financial statements, see Notes 1 and 2, Section 6.1.2 of the financial statements included in the 2023 Universal Registration
Document. They correspond to the total of the types of movements (acquisition and production costs).
These categories constitute the numerator of the ratio of operating expenses in relation to the Group's total Opex (see Notes 17 and 18 Section 6.1.2
to the consolidated statements).

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Methodology for evaluating activities
with regard to technical screening
criteria (DNSH and MS)

Results

In order to assess the current level of alignment of theactivities identified as eligible, the Group carried out averification of the compliance with the generic technicalscreening criteria (GNHS) of these activities and theminimum safeguards.

For the 2023 fiscal year, the Group carried out its analyses
including all the activities covered by the annexes of theTaxonomy Regulation, relating to the six objectives as wellas the amendments to objectives 1 and 2.

Generic GNHSs listed in Appendix A relating to climatechange adaptation:
As part of the Group’s operational risk management,
several risks have been identified as described in section
2.1 of this Universal Registration Document, as well as insection 4.3.5 of the DPEF, relating to physical climate risks.
This analysis was carried out in collaboration with our
insurance broker according to the RCP scenario(8)
methodology proposed by the IPCC .
This analysis was initiated in 2023 and covers all thebuildings owned or leased by the Group, as well as the
production plants of VusionGroup's subcontractors.

Compliance with Minimum Safeguards
In accordance with the guiding principles of the minimum
safeguards described in Article 4 of the Taxonomy
Regulation, we conducted an analysis of compliance withthese criteria across the entire Group.
We conducted the work based on the clarifications
provided by the Sustainable Finance Platform and the “Final(9)
Report on Minimum Safeguards” document . Four themes
are highlighted by the report and must be covered by theminimum safeguards: (I) human rights (including labor andconsumer rights), (II) corruption, (III) taxation, and (IV)competition law.
Compliance with the minimum safeguards was analyzed
with regard to the criteria proposed in this report in order toensure that the Group is not the source of violations ofrights and regulations related to these four topics.
We have conducted the review of minimum safeguards
centrally via workshops conducted with the departments
concerned.
• Human rights: VusionGroup is committed to respecting
and promoting recognized human rights and fundamental
freedoms in all its activities (see Section 4.2.4).
• Anti-corruption
andcompetitive
practices(competition law): the Group has implemented anticorruption procedures (see section 4.2.4). In addition, theGroup’s Code of Ethics promotes a culture of integrity
throughout the Company, as well as responsible businesspractices in compliance with the laws on competitive
practices (see section 4.2.4). This code is supplemented
by the Supplier Code of Conduct to ensure that social
concerns are properly taken into account throughout the
supply chain. The Group has also introduced procedures
to ensure compliance with the Sapin II law on the fightagainst corruption (see section 4.2.4).

Revenues

As the Group’s activities representing a significant portionof revenue are not yet described by the regulations, theconclusions of our analysis are identical to those of lastyear. We must in fact model the avoided emissions inducedby our solutions before being able to claim the eligibility ofthese activities. The Group’s activities described by theregulations do not yet generate a significant share ofrevenue. As a result, we do not have any revenue eligible for
Taxonomy.
In 2024, we plan to continue our efforts in order to publish apercentage of revenue eligible and aligned with theTaxonomy for the next fiscal year (see Outlook section). At
the same time, the Group will continue to adapt its
methodology and analyses as regulations evolve.

Share of revenue from eligible economic activities
and/or aligned with the taxonomy byenvironmental objective — Information for the year2023
Share of revenue/Total revenue
Aligned with taxonomy
by objective

Eligible for taxonomy byobjective

CCM

0%

0%

CCA

0%

0%

WTR

0%

0%

CE

0%

0%

PPC

0%

0%

BIO

0%

0%

Capex related to individual measures:
The eligibility analysis focused on all six objectives of theTaxonomy regulation. Under the multi-objective, an analysisof the eligibility of activities 6.5 and 7.7 was carried out on
both the climate change mitigation and adaptation
objectives.
For the 2023 fiscal year, as we did not have sufficient
information to define the eligibility of our activities for theadaptation to climate change objective, the Group decided
to maintain a cautious approach and to report only on theeligibility for the climate change mitigation objective.
Eligible investments as defined by the Taxonomy
Regulation amounted to €5.8 million in 2023 (relating tolong-term leases of buildings and vehicles), compared to an
investment total (as defined by the taxonomy regulation) of€92.9 million, i.e. a Capex eligibility ratio of 6.2%.

• Taxation: The Company considers tax governance andcompliance to be important monitoring elements:
appropriate tax issue management processes are inplace (see section 4.2.4).
(8)(9)

The “Representative Concentration Pathway” scenarios are scenarios of radiative forcing up to the 2100 horizon, established by the IPCC:
Intergovernmental Panel on Climate Change.
https://finance.ec.europa.eu/system/files/2022-10/221011-sustainable-finance-platform-finance-report-minimum-safeguards_en.pdf

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VusionGroup has not yet put in place sufficient reporting toassess the alignment of these eligible investments with theEuropean Taxonomy. We have not yet released thenecessary resources to implement this reporting, given theinsignificance of the CapEx identified this year.

Share of CapEx from eligible economic activities
and/or aligned with the taxonomy byenvironmental objective - Information for the year2023
Share of CapEx/Total CapEx
Aligned with taxonomy
by objective

Eligible for taxonomy byobjective

CCM

0%

6.2%

CCA

0%

0%

WTR

0%

0%

CE

0%

0%

PPC

0%

0%

BIO

0%

0%

Opex related to individual measures:
Due to the absence of eligible revenue to date, operating
expenses related to activities contributing to revenue could
not be classified as eligible. As a result, the various actions
implemented to reduce the carbon footprint of the Group’s
digital solutions were not taken into account in theperformance indicators relating to operating expenses.
For the 2023 fiscal year, we have decided to maintain thesame methodology as for the 2022 fiscal year and to use
the Opex exemption regime provided for by the Taxonomy
regulation. This year, the % of eligible Opex amounted to
6.8%.

Share of OPEX from eligible economic
activities and/or aligned with the taxonomy
by environmental objective - Information forthe year 2023
Share of Opex/Total of Opex
Aligned with taxonomy
by objective

Eligible for taxonomy byobjective

CCM

0%

0%

CCA

0%

0%

WTR

0%

0%

CE

0%

0%

PPC

0%

0%

BIO

0%

0%

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The Group will continue to adapt its methodology andeligibility analysis as the Taxonomy is implemented and as
regulations, listed activities, and technical screening criteria
evolve (see Outlook section).

Outlook
Environmental effects are fully integrated into the Group’s
strategic thinking, both in terms of R&D efforts dedicatedto reducing the carbon footprint of solutions offered to its
customers and in terms of thinking about the virtuous usesof its solutions within distribution networks.
The Group is committed to continuing its efforts to consider
the eligibility and alignment of certain activities during the2024 fiscal year. This involves defining and implementing
an action plan to transform the reporting processes andmaintaining the Group’s ambitions in terms of its ESG
strategy (see Outlook section):a. Activity 6.5 (CCM & CCA): we plan to integrate therequirements of the technical criteria into our dealer
information collection process. The objective is to workon collecting this information to carry out the analysis of
the alignment criteria on the vehicles available in ourcatalog as a first step (see section 4.3);
b. Activity 7.7 (CCM & CCA): in the first instance, we plan
to collect the information to justify the alignment of our
European buildings with this activity. At the same time,
we will begin to identify local benchmarks that can beused to align our investments in buildings outside the EU(see section 4.3);
c. Activity 8.2 (CCM): we plan to continue developing ourtools to identify avoided carbon emissions through theuse of our cloud solutions and Vusion labels (see section
4.4.1);
d. Activity 5.1 (EC) & 5.4 (EC): continue developing ourprogram to refurbish our labels via the Second Life
program with the objective, in years to come, of
publishing a share of revenue in line with these two
objectives (see section 4.3.3);e. Adapt our analyses according to the requirements of thesustainability report in preparation for its application in
the 2024 fiscal year.

ESG Report

Water (7)Pollution (8)Circular economy (9)Biodiversity (10)Climate change mitigation (11)Adaptation to climate change (12)Water (13)Pollution (14)Circular economy (15)Biodiversity (16)Minimum safeguards (17)Share of revenue aligned with the Taxonomy(A.1.) or eligible for Taxonomy (A.2.), Year N-1 (18)Category (enabling activity) (19)Category (transitional activity) (20)

Y/
N

Y/
N

Y/
N

Y/
N

Y/
N

Y/
N

Y/
N

Y/
N

Y/
N

Y/
N

Y/
N

Y/
N

%

E

T

0

0

0

0

0

0 O

O

O

O

O

O

O

0%

0%

0

0

0

0

0

0 O

O

O

O

O

O

O

0%

0%

0

O

O

O

O

O

O

O

0%

(€m)

%

Revenue fromenvironmentally sustainable
activities (aligned with theTaxonomy) (A.1)

00%

Of which enabling0

Of which transitory0

Code(s) (a) (2)Climate change mitigation (5)Share of revenue (4)2023

Economic activities (1)Criteria for do no
significant harm
(DNSH)

Substantial contribution
criteria

Absolute revenue (3)Revenues

Adaptation to climate change (6)Our climate strategy: decarbonization with our customers

A. Taxonomy-eligible activities

A.1. Environmentally
sustainable activities(aligned with theTaxonomy)E
T

A.2 Activities eligible for the Taxonomy but not environmentally
sustainable (not aligned with the Taxonomy (g)Revenue from activities eligible for
the Taxonomy but notenvironmentally sustainable (notaligned) (A.2.)

0

0%

0

0

0

0

0

0

0%

A. Revenue from activities not
eligible for the Taxonomy (A.1. +
A.2.

0

0%

0

0

0

0

0

0

0%

B. Activities not eligible for the Taxonomy

Revenue from activities not eligible
802 100%
for the Taxonomy
TOTAL (A + B)

802 100%

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ESG Report

Climate change mitigation (5)Adaptation to climate change (6)Water (7)Minimum safeguards (17)Share of CapEx aligned with the Taxonomy

%

%

%

Y/ Y/ Y/ Y/ Y/ Y/ Y/ Y/ Y/ Y/ Y/
N N N N N N N N N N N%

Biodiversity (16)

Circular economy (15)Pollution (14)Water (13)Adaptation to climate change (12)Climate change mitigation (11)Biodiversity (10)Circular economy (9)Pollution (8)Code(s) (a) (2)Category (transitional activity) (20)Share of CapEx (4)

(€m)

2023

Economic activities (1)Criteria for do no
significant harm
(DNSH)

Substantial contribution
criteria

Category (enabling activity) (19)CapEx (3)Capex

(A.1.) or eligible (A.2.) for the Taxonomy, year N-1 (18)

Our climate strategy: decarbonization with our customers

E

T

A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (aligned with the Taxonomy)
Environmentally sustainable
CapEx (aligned with theTaxonomy) (A.1)

0 0.0% 0

0

0

0

0

0

O

O

O

O

O

O

O

0%

Of which enabling

0 0.0% 0

0

0

0

0

0

O

O

O

O

O

O

O

0%

Of which transitory

0 0.0% 0

O

O

O

O

O

O

O

0%

NA

A.2 Activities eligible for the Taxonomy but not environmentally sustainable (notaligned with the Taxonomy (g)7.7 Acquisition and ownership CCMof buildings&

CCA

6.5 Transport by motorcycles, CCM
passenger cars, and light&commercial vehicles
CCA

5.0 5.4%

EL EL

N/ N/ N/ N/
EL EL EL EL

0.8 0.8%

EL EL

N/ N/ N/ N/
EL EL EL EL

Capex eligible for the Taxonomy but
not environmentally sustainable (notaligned) (A.2)

5.8

6.2%

5.8 0.0%0.0% 0.0% 0.0% 0.0%

4.6%

A. Capex of activities eligible for theTaxonomy (A.1 + A.2)

5.8

6.2%

5.8 0.0%0.0% 0.0% 0.0% 0.0%

4.6%

B. Activities not eligible for the Taxonomy
Capex not eligible for the Taxonomy
(B)

87.1

93.8%

TOTAL (A + B)

92.9

100.0%

160

Universal Registration Document 2023

E
T

ESG Report

Biodiversity (10)Climate change mitigation (11)%Y/ Y/ Y/ Y/ Y/ Y/ Y/
N N N N N N N

Category (transitional activity) (21)Circular economy (9)%Category (enabling activity) (20)

Pollution (8)%Minimum safeguards (17)Water (7)%Biodiversity (16)Adaptation to climate change (6)%Circular economy (15)

Climate change mitigation (5)%Pollution (14)Share of OpEx (4)%Water (13)OpEx (3)(€m)

Economic activities (1)Code(s) (a) (2)Adaptation to climate change (12)Substantial contribution
criteria

2023

Opex

Criteria for do no
significant harm
(DNSH - Do No
Significant Harm)

Share of OpEx aligned with the Taxonomy (A.1.)
or eligible for the Taxonomy (A.2.), Year N-1 (18)

Our climate strategy: decarbonization with our customers

%

E

T

A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (aligned with the Taxonomy)
Environmentally sustainable
OpEx (aligned with theTaxonomy) (A.1)

0

0%

0

0

0

0

0

0

O

O

O

O

O

O

O

0%

Of which enabling

0

0%

0

0

0

0

0

0

O

O

O

O

O

O

O

0%

Of which transitory

0

0%

0

O

O

O

O

O

O

O

0%

E
T

A.2 Activities eligible for the Taxonomy but not environmentally sustainable (not aligned with the Taxonomy)
Opex activities eligible for theTaxonomy but not environmentally
sustainable (not aligned with theTaxonomy) (A.2.)

0

0%

0

0

0

0

0

0

0%

A. Opex of activities eligible for theTaxonomy (A.1 + A.2)

0

0%

0

0

0

0

0

0

0%

B. Activities not eligible for the Taxonomy
Opex not eligible for
Taxonomy (B)*

121.2

100%

TOTAL (A + B)

121.2

100%

*Only Opex targeted by the Taxonomy of which 3.3 million euros in non-capitalized R&D costs

Nuclear energy activities
The Company carries out, finances, or is exposed to research, development, demonstration, and deployment ofinnovative facilities for the production of electricity from nuclear processes with a minimum of waste from the fuel cycle.

NO

The Company carries out, finances, or is exposed to the construction and safe operation of new nuclear facilities for the
2 production of electricity or industrial heat, in particular for district heating purposes or for the purpose of industrial
processes such as hydrogen production, including their safety upgrades, using the best available technologies.

NO

The Company carries out, finances, or is exposed to the safe operation of existing nuclear facilities for the production of
3 electricity or industrial heat, in particular for district heating purposes or for the purpose of industrial processes such ashydrogen production from nuclear energy, including their safety upgrades.

NO

1

Fossil gas activities
4

The Company carries out, finances, or is exposed to the construction or operation of facilities for the production ofelectricity from gaseous fossil fuels.

NO

5

The Company carries out, finances, or is exposed to the construction, refurbishment, and operation of combined heating/cooling and electricity from gaseous fossil fuel production facilities.

NO

6

The Company carries out, finances, or is exposed to the construction, refurbishment, or operation of heat production
facilities that produce heat/cold from gaseous fossil fuels.

NO

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ESG Report
Our climate strategy: decarbonization with our customers

4.5 Social and societal ambitions
The company's purpose is to invent technologies thatcreate a positive impact on society by enabling sustainable
and people-centric retail.
The main social and societal objectives of VusionGroup canbe broken down as follows:• To ensure that our supply chain is sustainable• To contribute to keeping physical stores open andattractive: central living spaces for the vitality of cities;• To be a good place to work for our employees• To generate widespread positive social impact throughour technological innovation and solutions

4.5.1

Guarantee the safety of its products and solutions

KPI

GRI
Code

Topic

416

Customer health and safety

Good health and well-being

Marketing and labelingResponsible consumption andproduction

SDG

Compliance with RoHS and
REACH standards
417

In accordance with its environmental policy, VusionGroup's(1)
products comply with the European REACH regulation ,(2)(3)
the European RoHS directive and WEEE , in all thecountries in which we operate, with the aim of reducing andrestricting substances that are potentially harmful tohumans and the environment.
The EU RoHS directive stipulates that electrical andelectronic products sold on the EU market must not containlead,cadmium,
mercury,hexavalentchromium,
polybrominated diphenyls (PBBs), polybrominated diphenyl
ethers (PBDEs), and other controlled substances (including
DEHP/BBP/DBP/ DIBP phthalates).
The EU RoHS directive therefore aims to limit the impact
and exposure of consumers and the environment to specifichazardous substances. It also reduces occupational
exposure when products or equipment are manufactured,
recycled, or sent for final disposal.

(1)
(2)
(3)

Topic

Under the EU REACH regulation, all chemicals
manufactured in the EU or imported into the EU market
must be registered before the specified number of years
when the annual volume used exceeds 1 metric ton.
VusionGroup ensures that all its products fully comply withall these requirements. In 2023, we did not record any
product recalls relating to potential safety issues:
2023

Number of products recalled for safety
reasons
Value of financial losses associated withlegal proceedings regarding product safetyissues0€0Also, when customers return ESLs to us (for refurbishment,
for example), we send them an information leaflet to warn
them of the precautions to take to avoid any risk due to thelithium battery.

REACH: Registration, Evaluation, Authorization, and Restriction of Chemicals
RoHS: The Restriction of Hazardous Substances Directive 2002/95/EC (RoHS 1), short for Directive on the restriction of the use of certain hazardous
substances in electrical and electronic equipment
WEEE: Waste Electrical and Electronic Equipment

162

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ESG Report
Our climate strategy: decarbonization with our customers

4.5.2 A sustainable supply chain
GRI
Code

KPI

EcoVadis rating

Topic

SDG

205

Anti-Corruption

308

Supplier environmental
assessment

414

Supplier social assessment

Topic

Responsible consumption andproduction

Climate Action• our policy on sourcing to ban sourcing from conflictzones;
VusionGroup values transparency, ethicalbusiness practices, and integrity within its supply chain. The
working conditions of the staff employed by our suppliers aswell as the traceability of raw materials are closely
monitored by the entire company. In 2023, our industrial
subcontractors were audited through an ESG
questionnaire and on-site visits."
Christian Weissensteiner

EVP Global Manufacturing Operations & Sourcing Co-CEO Vusion

A clear policy
The Group relies on strong ethical principles and standards
in the conduct of its activities. In particular, the Group has
published its Responsible and Sustainable Purchasing
Policy. This defines the Group’s main guidelines andcommitments in terms of responsible purchasing, covering
environmental, human rights, and ethical issues. This
document is available online at www.vusion.com.
It is based on the Group’s values and its international(1)
commitments through the ILO’s fundamental conventions,(2)
the United Nations Global Compact, and the OECD
Guidelines.
This purchasing policy is supplemented and enhanced byseveral fundamental reference documents of thePurchasing Department, which are:• our supplier Code of Conduct, which was the subject of asignature campaign led by the strategic purchasing
department, with a signature rate covering 98.2% of ourindustrial purchases (see audit results below);• our policy on compliance with ROHS and REACH
certifications.
• anti-corruption and sustainable purchasing clauses incontracts with our industrial suppliers, specifying:• comply with the VusionGroup Code of Conduct and allapplicable international and local anti-corruption laws
and standards (Foreign Corrupt Practices Act of 1977
and the UK Bribery Act of 2010);• the prohibition of offers of compensation or benefits inkind that constitute or could constitute a bribe or an
attempted bribe with a view to obtaining theperformance of a contract in return;• comply with the 10 principles of the United Nations
Global Compact (www.unglobalcompact.org/ what-isgc/mission/principles);• maintain, for the duration of the contract, an ESG rating
issued by recognized international organizations suchas ISS (B+), MSCI (B +), Sustainalytics, or EcoVadis(>50) and, if necessary, to improve the rating within anagreed period;• comply with all laws, regulations, and requirements
relating to the prohibition or restriction of hazardous
substances as well as to identify and manage
hazardous chemicals and other materials included in
the products, in particular those listed as hazardous
substances in the REACH regulation to ensure theirsafe use, recycling or reuse, and their safe disposal;• supply electrical and electronic equipment thatcomplies with all relevant European Union legislation,
including RoHS and REACH, regardless of the country
where the product will be used, including nonEuropean countries;• that their policies and procedures must be aligned with
the OECD due diligence guidelines for responsible
supply chains of minerals from conflict-affected or
high-risk areas. This means that VusionGroup’s
suppliers must refrain from using any ore from conflictaffected or high-risk areas.

(1)
(2)

ILO: International Labor Organization
OECD: Organization for Economic Co-operation and Development

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ESG Report
Our climate strategy: decarbonization with our customers

Assessing the whole supply chain
We don’t own the production plants that manufacture our
products. We have opted for a factory-free production
model, outsourcing our production processes to External
Manufacturing Services (EMSs). Our main assembly(3)partners have long-established programs in ESG andenvironmental initiatives. They follow global reporting
standards for sustainability and are all certified to ISO
International Standards that provide guidance on
environmentally and socially-responsible behavior fororganizations. The scope of their environmental
management systems extends far beyond what is typicallyfound in an ISO 14001:2015 system, and includes suchelements as product environmental compliance and ewaste management. We subcontract the manufacturing of
IoTs to specialized service providers (EMS-Electronics
Manufacturing Services), while retaining the design andintellectual property rights of our products. Most of our
EMS partners are located in mainland China or Southeast
Asia, or more recently in Central America (Mexico).
The Group assesses quality and ESG issues within its
supply chain through three types of audits:
1) supplier self-assessment questionnaire to becompleted by potential suppliers: in order to identify any
major breach of the Group’s social and environmental
requirements, a self-assessment questionnaire wasdesigned by the Product Quality Department and theGroup's purchasing teams and is systematically submitted
to current and potential suppliers.
This questionnaire, composed of 19 questions, includes
topics such as quality management policy, environment,labor and human rights, ethics, and sustainableprocurement.
The results are assessed by VusionGroup's quality team,which systematically shares the results of the selfassessment questionnaire and the corrective actions withthese suppliers as part of its improvement process. In theevent of lower-than-expected performance, the supplier isrequired to implement the identified corrective actions andimprove its overall performance with a progress strategy
before being able to become a VusionGroup supplier. The
implementation of the defined corrective action is closely
monitored until its completion, and in the event of
unsatisfactory performance, the Group reserves the rightnot to enter into a business relationship with this supplier.
2) an internal audit of our suppliers, managed by theGroup’s product quality teams, during regular on-site
visits to our subcontractors and suppliers. These audits areformalized using a questionnaire adapted to each categoryof supplier according to its sector of activity, including asection dedicated to ESG, and are supplemented byfindings made on site. This questionnaire includes topics
such as the quality management policy, the environment,labor and human rights, ethics, and sustainableprocurement.

(3)

Corporate social responsibility

164

Universal Registration Document 2023

This audit consists of an on-site visit to ensure the quality
and compliance with the principles of the purchasing policy
and the Supplier Code of Conduct. The Group has createdan “evaluation of its suppliers” which covers, among otherthings, the application of human rights, the imperatives ofhealth, safety, respect for the environment, and thetraceability of minerals (not coming from countries inconflict).
In the event of unsatisfactory performance, the supplier isrequired to implement the corrective actions identified
during the audit and to improve its overall performance witha progress strategy within an agreed timeframe. The
implementation of mutually agreed corrective actions is
closely monitored by the Group.
In exceptional circumstances, this audit may be conducted
remotely. The monitoring tables below show the proportionof audits that took place on site and remotely in 2023.
3) The Group has entrusted a third party (the ESG ratingcompany EcoVadis) with the performance of ESG audits.
They measure the performance of VusionGroup's main
suppliers on 21 ESG criteria grouped into four themes:
Environment, Labor & Human
Responsible Procurement.

Rights,

Ethics,and

The EcoVadis rating model is specifically designed tomeasure and benchmark sustainability management
systems via an online platform, using a questionnaire
adapted to size, industry and location of the supplier,rigorous verification of inputs via a team of analysts andproprietary tools, and a multi-channel approach to verifying
the reliability of evidence.
EcoVadis Ratings are then used to engage suppliers inbenchmarking, monitoring and improving their sustainability
performance.
VusionGroup also accepts ratings from international
companies such as ISS ESG, MSCI, and Sustainalytics.
Suppliers below the target must implement a plan to
improve their ESG performance. This is monitored by the
Purchasing teams. The successful completion of an action
plan is systematically validated by a reassessment. Results
deemed structurally insufficient or a lack of commitment tosustainable development issues may lead the Purchasing
Department to review its contractual relationship with the
supplier or even to terminate it. This decision is subject to acollegial reflection which takes into account theconsequences of such a decision.
2023 monitoring
During 2023, all audits carried out focused on industrial
suppliers of electronic components and merchandise, andexternal manufacturing services (EMSs) assembling ourfinished products (labels).

ESG Report
Our climate strategy: decarbonization with our customers

Reporting and conflict minerals policy

2023 indicator reporting:Particular attention is paid to the supply of minerals fromconflict zones (tin, tungsten, tantalum, and gold): theGroup’s purchasing policy stipulates that suppliers andsubcontractors must comply with applicable laws andregulations regarding the sourcing of these minerals. It
requires them to establish a policy enabling them toreasonably ensure that the purchase of these minerals is
not used to finance, directly or indirectly, armed groups
whose activities contravene human rights. They must also,
as may be required by law, exercise due diligence in the
choice of the source and the traceability of the minerals
and, consequently, require the same diligence on the part oftheir suppliers.

All potential suppliers must complete our self-assessment
questionnaire to proceed to the next stage of qualification.

Reports on conflict minerals are required from our suppliers
and are an integral part of our audits, supplierself-assessment
questionnairesorthe
EcoVadisquestionnaire. When no reporting on conflict minerals isavailable, corrective actions are defined and the supplier isrequired to implement them with a progress approach. The
implementation of mutually agreed corrective actions is
closely monitored by the Group.

In addition, VusionGroup's Quality team carries out audits(on site or remotely) with its suppliers:• Tier 1 (direct purchases);• Tier 2 (indirect purchases);• and as a finalization of the qualification process.
In total in 2023, 19 audits were carried out, including three(4)
remotely and 16 on site. Of these 19 audits, six werecarried out with our direct suppliers, eight with our indirect
suppliers, and five on-site audits for potential suppliers, ofwhich three were qualified as shown in the table below:

Audit of the industrial supply chain of VusionGroup and signature of the supplier code of conduct

Type of industrial
supplier

Number of
suppliers/%cofcindustrial
purchases covered

Audits carried out by VusionGroupincnumber of suppliers/%cofcindustrialcpurchases
On-siteremoteEcoVadis
assessmentout of 100

Signature of theCode of Conduct
incnumber ofsuppliers/% ofindustrial
purchases covered

Potential

55(3 qualified)0

Direct6

5(qualified)

1(qualified)

6

6

97.18%

94.76%

2.42%

100%
with satisfactory
score:> 50

97.18%

8

6(qualified)2(qualified)
15

11

80%
with satisfactory
score: > 50

1.02%

Indirect

15
Other direct
suppliers% of industrial
purchases covered

2.15%

0

99.33%

097.18%

To supplement these audits conducted by the Quality teamon our 15 smallest suppliers (representing 2.15% of ourdirect industrial purchases), VusionGroup uses the basis of
the documentary audits of the ESG rating company
EcoVadis.
Highlights of the audits carried out by VusionGroup:
Among our audited direct and indirect suppliers, 100%:• have an environmental policy that is measured throughqualitative commitments and quantitative objectives;• take measures in relation to water management;(4)

98.20%• are certified by an environmental management system(ISO14001 or other);• have implemented a sustainable purchasing policy;• integrate social or environmental factors into their supply
chain;• adhere to labor and human rights policy;• have defined key performance indicators regarding laborand human rights;• comply with local laws and ILO requirements in terms ofworking hours and paid leave;

Three audits were carried out between the end of 2022 and the beginning of 2023 in China with our direct and indirect suppliers due to the Covid-19
situation

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ESG Report
Our climate strategy: decarbonization with our customers• pay candidate recruitment fees;• are certified according to ISO45001/OHSAS 18001;• have a Code of Conduct on fraud, money laundering,corruption, conflicts of interest, anti-competitive
practices, and information security ;Across all the suppliers assessed by EcoVadis, the main
performances observed in the areas of Environment, Social& Human Rights, Ethics, and Responsible Purchasing
audited were:

EcoVadis audit Scorecard analysis• have a defined information security action plan;• have ISO9001 certification.

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4.5.3 A good working environment

The Diversity & Inclusion program illustrates theGroup’s ambitions: to create an equal, diverse, andcommitted community over the long term. The eNPS
satisfaction survey was very encouraging, and the feedback
was particularly positive. To break the glass ceiling,
VusionGroup strengthened its international parenting policy
in 2023. Men are all entitled to one month of paternity leaveso that they can be involved in the birth of their child. For
women, adjustments are made throughout their pregnancy,
and their return to work is facilitated. We guarantee equal
treatment before, during, and after their pregnancy. Parents
are allocated four additional days of paid leave per year todeal with unforeseen circumstances. Lastly, a hybrid work
system ensures maximum flexibility. At VusionGroup, we arevery proud to operate in a particularly multicultural, genderbalanced, and multigenerational context, a sourceof innovation and professional fulfillment.”
Marianne Noel

SEVP Group Human Resources

166

Universal Registration Document 2023

Fostering a highly motivating andinclusive workplace
Our people are characterized by their committed andinnovative mindset. Each makes a strong contribution toachieving excellence and creating long-term value forphysical retail and society as a whole. They are driven by astrong motivation to design innovative products, solutions
and services to improve physical retail.

Long-term and stable workforce, in constant
growth-driven renewal
Our management team is very stable. Thierry GADOU has
been the Chairman and Chief Executive Officer for elevenyears. The average tenure of Executive Committee
members is 10 years.
We are also particularly proud to have built an international
Group that keeps its employees for the long term. In fact,
49% of the workforce at year-end 2012 were still with us on
December 31, 2023. These employees were part of the very
first generation of electronic labeling in the world and areable to pass on the legacy of a pioneering company in ourfield. Since then, they have adapted to the context ofstrong growth, internationalization, and innovations aroundour solution. The company has been able to support them inthese transformation challenges to retain them over thelong term.

ESG Report
Our climate strategy: decarbonization with our customers

The average age of our employees, which stabilized at 36
at the end of 2023 (as in the last two years), testifies to theCompany’s ability to integrate new managers and younger
employees while retaining its employees over time. We
have a well-balanced, multi-generational team, stablesenior management, and a talent pool equipped with new
skills to be trained in the latest technologies.

At year-end 2023, the Group had 847 employees acrossthe world, spanning different cultures, languages, genders,ages, and levels of expertise. They work together acrossthe globe, providing our Group with one of our mostsignificant strengths: diversity.

Our global and diverse community
GRI
Code

Topic

202

Market presence

401

Employment

405

Diversity and equal
Opportunity406

Non-discrimination

SDG

We are committed to offering our employees equal
opportunities for recognition and career development,
irrespective of national origin, gender or beliefs, and wefollow all applicable regulations and agreements.
Employees are hired solely on the basis of their education,
professional experience, their potential and ability to adapt,
as well as their motivation to join us.

Topic

Our diversity enables innovative thinking and original ideas,
generating added value for customer solutions.

Sustainable
cities andcommunities

In light of our global market and robust growth, we have
implemented an agile, horizontal, and internationallyoriented organization. Our geographic expansion strategy
has resulted in the mobility or recruitment of local sales
teams, which are based as close to our customers as
possible, to their physical stores and decision-making
centers.

We are particularly mindful of the range of backgrounds ofour teams and of the expression of the cultures to which
each individual belongs. We promote the diversity of ourcollective cultures and of every individual. Our employees(of which 47% are located in France) represent 51 different
nationalities and speak 25 different languages, the mostprevalent being English, French, German, Mandarin
Chinese, Spanish, and Italian.
The workforce increased by 39% between 2022 and 2023
following the organic growth of the Group’s activity and the
additions to the scope of the two acquisitions (Memory andBelive.ai) that year.

December 31,
2023% of theworkforceDecember 31,
2022% of theworkforce

802

95%

570

94%

Fixed-term contracts

45

5%

38

6%

Including apprenticeship

36

TOTAL

847

Workforce by contract type

Permanent

Employee turnover

33
100%

608

100%

December 31,
2023

December 31,
2022

381

206

332

169

Recruitmentof which permanentof which fixed-term contracts

49

37

Departures from the organization

142

151

of which resignations

50

46

of which dismissals and terminations with severance packages

29

19

of which scope effect (exit of BOE Digital Technology Ltd), end of fixed term
contract (e.g., apprenticeships), end of probationary period

63

86

December 31,
2023

December 31,
2022

Female

3

3

Male

4

5

TOTAL

4

4

December 31,
2023

December 31,
2022

Average tenure

Average age of the workforce

Female

34

34

Male

37

38

TOTAL

36

36

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167

ESG Report
Our climate strategy: decarbonization with our customers

2023 age pyramid“13 % of women, i.e. 35 employees, are 24 and below”.

!,$-3%/

14 142%

24 4%

50-54

45

40-44

25-29

2%
5

8%

106

19%

113

20%
20
%

107

19%

!,$
"%*-4

40

5

8%

15%

82

 

3% 
9

35 6%

45-49

30-34

3

 

55-59

35-39

1%
3

21

 

13%

38

13%

38
20%

57

27%
7%

13%



75
(0(4$6,10#744(06$*(561

35

,.(0,$.744(06$*(5(0(4$6,10"744(06$*(5 61
Male

Female$%:%11/(45744(06$*(5

GRI
Code

Topic

% of women among new hires

401

Employment

Workforce by gender - mentoring program

405

Diversity and equal opportunity% of women in top management

405

Diversity and equal opportunity% of women among new hires

406

Anti-discrimination

SDG

Topic

Genderequality

As a global Group encompassing diverse communities, weare committed to providing equal opportunities to every
woman and man employed in the Company, wherever they
live or work. Despite this intention, under-representation of
women in the overall technology sector remains an issue tobe addressed. Not only does technology need more female
representation, we are also convinced that diversity inmanagement teams leads to better business performance.
Therefore, our objective is to significantly improve therepresentation of women in management positions.

The Company also increased the proportion of female
managers, from 22% in 2020 to 27% in 2022 and 28% in
2023.

VusionGroup strives to promote equal opportunities andgender equality at all stages of career development. The
Company has made strides in improving the genderbalance, with women as a percentage of the workforce
increasing from 23% in 2016 to 33% in 2023.

• implementing a mentorship program with Executive
Committee members and via individual development
plans, whereby women are encouraged to makeconnections with senior management members as
mentors who can help to guide them toward the skills
that they will require to be able to assume leadership
positions in the future.

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Universal Registration Document 2023

61 A goal of leadership parity
KPI

61 

To achieve better gender representation, the Groupinitiated an internal program aimed at expanding therepresentation of women in managerial roles by:• identifying women who have the potential, in the short tomedium-term, to access roles that are in the Company's
top 10% most senior positions; andESG Report
Our climate strategy: decarbonization with our customers

Proportion of women in the workforce

December31, 2023%

December31, 2023 Value

December31, 2022%

December31, 2022
Value

December31, 2021%

December31, 2021 Value

33%

281

34%

205

33%

180

Technical roles held by women

19%

82

17%

50

15%

40

Proportion of women recruited

34%

130

41%

85

37%

72

Female managers (managing at least one
person)

28%

79

27%

42

24%

33

Female managers under 35 years old

49%

25

49%

18

40%

12

Among senior executives (GMB
(1)
members), women represent

19 %

6

22%

6

17%

4

(1) GMB = Global Management Board - see section 3 of this report for more details.

These figures show clear progress in the representation of women in senior positions as well as technical roles. In addition,
parity is almost reached among managers under the age of 35, which is a particularly encouraging sign for the future
trajectory.

Diversity & Inclusion (D&I) – Our five-year vision
2021 and 2022

2023

2024 to 2025

Discover, measure and embed
D&I into our DNA

A year focused onparenthood and well-being atwork

Drive positive societal
change through all our
objectives

&"
($%($%

&" 
($%• Raise awareness on D&I

Global webinar, Mandatory training• Create a community

42 contributors, clear internal andexternal action plan

• Fast-track program for women
Mentoring, Training plan, Development
plan• Facilitating parenthood within
the VusionGroup
Flexibility at work, extended & paid
leave for all countries, three free days
per year until children turn 12, one freeback-to-school day• Specific support for young
parents• Improving our employer brand• Employee participation tocreate an engaged community• Inclusive culture

Mental load training, Return to work
interview after birth• Support for engineeringschools with the highest rates
of gender diversity• Promise equal treatment in theworkplace• Total gender parity for senior
management positions

4.3/5 for H1 then 4.4/5 for H2 on eNPS
“Development opportunities are thesame for everyone in the company”• Attracting and retaining top
talent

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Professional Equality Index - France only
The Professional Equality Index was designed to promote gender pay equity within companies. It makes it possible totransparently measure gender pay gaps and highlight any progress made.

2023

Maximum
indicator
score (2023calculation)

2022

2021

Maximum
indicator score(2022/2021
calculation)

1 - Pay gap

38

40

35

34

40

2 - Difference in individual increase rates(in % or equivalent number of employees)

20

20

35

35

35

3 - Difference in promotion rate (in %)

15

15

NA

NA

NA

4 - Percentage of employees who benefited
from a raise in the year following theirreturn from maternity leave

15

15

15

0

15

5 - Number of employees of the underrepresented gender among the 10 highestpaid employees

5

10

5

5

10

93/100100

90/10074/100100

TOTAL

Our workforce increased significantly in 2023 and we no longer use the same calculation methodology. We are including a
new indicator, “Promotion rate gap,” which we did not monitor in previous years. The score of 93/100 in 2023 is verysatisfactory, and we will do everything we can to continue this progress.

Commitment to social and professional integration of people with disabilities
VusionGroup is committed to the social and professional
integration of adults with disabilities.
Parts of the second life ESL repair process are subcontracted to organizations specialized in the social andprofessional integration of adults with disabilities. The
ESAT of Éragny (an organization that places people withdisabilities in appropriate work environments, in the Vald’Oise department of France) has supported our ESG
refurbishment efforts since the 2000s.
In addition, the Group directly employs six people withdisabilities worldwide.

Talent management
We believe that motivation is the first driver of
performance, and that all our employees can achieve strong
results if they are motivated, trained, rewarded, filled with asense of long-term belonging and convinced that their work
is important, meaningful and positive. The breadth of thepositions we offer, our rapid growth in a global context anda very strong culture of innovation enable us to offer our
employees a number of career paths as well as swift andfulfilling personal development.

Our proactive recruitment policy targets talent from thebest schools and with an international orientation.
Therefore, we benefit from a generational balance, multiple
expertise and experience, and a strong ability to train andintegrate new recruits.

Training
KPI

Training and carbon footprint
training

GRI
Code

Topic

404

Training and Education

We are committed to providing our employees withongoing training. As we operate in a particularly innovative
sector, we aim to ensure that all of our employees have thenecessary skill sets to grow within the Company and theindustry, and so that they can fully develop their abilities
and expertise.

SDG

Topic

Decent work and economic
growthWe are encouraging a more flexible learning culture where
our associates can access upskilling classes via our elearning platform, anywhere and at anytime. We have also
increased our investment to offer a wider selection ofcontent. Our aim is to combine a proactive training policy
with a very broad training offer in which employees canchoose the online training courses that are relevant to theircareer and skills according to the time they have available
and their personal motivation.
Additionally, during our bi-annual performance reviews,

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ESG Report
Our climate strategy: decarbonization with our customers

managers and employees look to identify training
opportunities in keeping with our people’s needs and theCompany’s challenges.
The table below details the training expenses over the last
three years, excluding the two acquisitions of Memory andBelive.ai. It should be noted that the pandemic has changedYearbehavior and that e-learning is increasingly popular with
employees who are more tech-savvy.
This is why the Company has stepped up its efforts andinvested in new e-learning licenses with LinkedIn Learning
to complement the 360 learning platform used for internal
e-learning courses.

Number of faceto-face training
Training budget
hours

3,250

Number of elearning training
hours

Number of faceto-face training
hours peremployee

Number of elearning training
hours peremployee

2,317

11.9

4.6

2023

€189,067

2022€146,633

5,128

1,547

22.2

3.1

2021

€107,461

2,903

1,437

19.75

3.5

The training budget has increased considerably to enable
employees to follow more technical and expensive face-toface training courses, while expanding our e-learning
training offer, which is particularly suited to younger
generations and the geographical spread of our teams
around the world.

VusionGroup will also lead internal "Climate Fresk"
workshops, in order to engage employees on current
environmental issues and, more broadly, to understandplanetary limits. We will combine these workshops with a“Climate Change” e-learning module.

Lastly, a blended in-person and e-learning training course issystematically offered to new employees joining the Group.

Remuneration policy

Training on climate change and ESG
In addition to these training hours, a common global training
session on carbon emissions was provided in the second
half of 2021 to the entire staff by the consulting company
performing the independent Group-wide carbon footprint
This training program was organized to:• raise awareness about climate change
consequences, risks and opportunities;

and

its

• improve the company's employees' understanding of theenvironmental footprint of their activities, products andactions, with a view to reduce the carbon footprint
related to our operations;• integrate climate considerations into risk management
policy (reputation, transition or physical risks).
More generally, these training sessions aimed at thinking
about how energy and climate issues will become an
essential element in the strategies of all economic players,
and to anticipate changes that are likely to occur throughregulation, taxation or market forces. Getting ahead of
future disruptions will enable the Company to plan ahead,
to be resilient in the context of transition, and thus ensure
the economic sustainability of its operations.
Since 2023, we have also had access to the EcoVadis
Academy platform which is composed of several training
modules on the environment, responsible purchasing,human rights, ethics, etc. These training courses (32 hours
in 2023) are attended by certain employees when theirbusiness scope can have a real impact on the Group’s ESG
ambitions.

In accordance with the commitments enshrined in theprinciples set out in the labor rights policy, the Human
Resources Department ensures that each employee
receives sufficient compensation to achieve a decent
standard of living, as stated in the United Nations' Universal
Declaration of Human Rights. We compensate our
employees fairly and competitively in accordance with theindustry and the labor markets of each of our countries. We
are committed to providing a fair and decent wage andstrive to ensure full compliance with applicable laws
regarding wages, hours of work, overtime, and benefits.
We pay particular attention to social protection and offer
quality health and retirement coverage to all our employees,
as well as to their families and dependents, which is usuallywell above local regulations and consistent with the highsocial standards in France.
95% of employees have a permanent employment contract
and are recruited locally, thus contributing to theemployability and economic development of each of thecountries where we operate.
The rapid growth trajectory in VusionGroup sales andfinancial performance since 2012 is directly linked to thelevel of commitment and expertise of our teams. It is thus
essential that their variable compensation reflect theircontributions to the Group’s growth and success.
The Company’s overall compensation policy is strongly
focused on performance, entrepreneurship, and individual
responsibility: variable compensation is subject to theachievement of specific and measurable objectives at 80%,
the remaining 20% is based on the Group’s performance.
The objectives are set in a transparent manner and formally
accepted every six months by the employee, before being
evaluated at the end of the half-year period through a
Human Resources Information System (HRIS), which allows
the Group's objectives to be defined at each managerial
level and in accordance with professional duties.

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Value sharing
KPI

GRI
Code

Topic

201

Economic performance

401

Employment

SDG

Decent work and economic growth

Employees participating in LT
compensation plans

Sustainable cities and communities

in 2022), who are likely to receive performance sharesof the Company's stock if specific performance criteria
are met. These plans make motivation the primary
driver of the Company’s performance and havebecome key leverage tools for attracting and retaining
the most talented employees, and for involving them inour entrepreneurial culture.

In addition to certain local regulations, which govern profitsharing plans for employees, the Group has voluntarily
granted performance shares or performance shares andstock options to key contributors to the Company’s
performance on several occasions since it was listed:• National plans:• a new third agreement for the 2023 to 2025 period
was signed by VusionGroup SA in 2023. It provides foran even larger potential incentive bonus allocationcompared to previous periods.
• VusionGroup Italy has also benefited from an incentive
agreement since 2016;• Specific RSU (Restricted Stock Unit) plans have been
implemented in the US entity;• Global stock incentives:• following
severalperformanceshareplans,
performance shares are distributed each year toemployees. The scheme, in place since 2020, is basedon the VUSION strategic plan. Distributed more andmore widely to key people, it concerns a significant
portion of our workforce (about 33% in 2023 and 30%

Topic

In addition, the plans motivate the beneficiaries on essential
value creation targets such as Growth, Sustainability(through profitability and cash management) and Stock
Price.
Section 7 of the Universal Registration Document provides
detailed information on the performance share plans.
Considering the success of this policy, both in terms of
attractiveness, performance, and retention, the Group’s
objective in 2024 is to include 100% of eligible employees
in the long-term incentive plan.
This incentive plan will be aimed at all employees on
permanent contracts, employed by the company for at least
six months, and demonstrating performance in line with orabove expectations.

Dialogue with employees
Regular management appraisals
KPI

Managerial dialogue: rate ofcompletion

GRI
Code

Topic

401

Employment

404

Training and Education

The Group conducts biannual individual appraisals. The
appraisal interviews evaluate employee performance andset individual objectives, consistent with the Company’s
strategy.
In order to standardize practices across the Group andensure a consistent and fair application of the appraisal
policy, we use our “Foederis” tool, a digital platform thatcreates a paperless biannual performance interview
process. This tool is particularly relevant in light of theGroup's rapidly-expanding geographic footprint.

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Universal Registration Document 2023

SDG

Topic

Decent work and economic
growthEach employee and each manager must follow this processaccording to a consistent method and in coordination withthe human resources department: alignment of objectives,
identification of training needs, assessment of performanceand skills, career management and mobility.
100% of the Group’s employees are subject to a
performance review and managerial discussion.

ESG Report
Our climate strategy: decarbonization with our customers

Employee satisfaction survey
KPI

eNPS (Employee Net Promoter
Score)

GRI
Code

Topic

401

Employment

SDG

Twice a year, we conduct an employee satisfaction survey,
outsourced via the Supermood platform to ensure
anonymity.
a. measure employee experience
Promoter Score concept;

based

on

the

Net

b. develop and conduct targeted employee surveys thatassess perceptions of specific issues;c. collect comments and suggestions to build action plansfor continuous improvement of employee satisfaction;d. track results and progress over time and benchmark theresults with comparable companies.

Topic

Decent work and economic
growthThe results of our Employee Net Promoter Score (eNPS)
survey were very positive. The participation rate was 87%
in the first of the year and 84% in the second half of theyear. Overall, on a scale from -100 to +100, the result
obtained in the second half of 2023 was 40. This score has
been constantly increasing since 2021 during the first postpandemic survey, which resulted in a score of 4.
The best score of 4.4/5 in response to the question “are theopportunities for development the same for everyone?”was recorded in the first half of 2023. This score isrepresentative of an inclusive and reassuring environment
for all VusionGroup employees, regardless of gender, ethnic
origin, religion, or sexual orientation.
2023

2022

Survey statements

H2

H1

H2

H1

I trust the leaders of my company

4.3

4.4

4.3

4.3

I see myself working here in three years

4.1

4.1

4.1

4

I understand and can identify with the company’svalues

4.3

4.2

4.2

4.1

I’m satisfied with my workspace

4.3

4.2

4.2

4.1

I am able to contribute to the implementation of thestrategy

4.2

4.1

4

4.1

I strongly feel that I belong in my company

4.2

4.1

4.1

4

Development opportunities are the same for everyone(regardless of gender, ethnic origin, religion, sexual
orientation, etc.).

4.3

4.4

4.3

4.3

Global eNPS score

40

37

36

25

Based on the responses to the question “Would you
recommend your company as a great place to work?” 51%of employees are considered “ambassadors”. In otherwords, on a scale of 0 to 10, 51% of employees gave a scoreof 9 or 10.
The ongoing improvement in the score semester aftersemester is the result of concrete action plans to improvesatisfaction in countries or teams for which the scores are
more mixed (actions in favor of diversity, major investments
to improve the working environment, IT equipment, internal
communication, decompartmentalization of certain teams,etc.).

• Scores from 9 to 10: Promoters, the most satisfied,
happy, and motivated employees.
To calculate the eNPS score and thus assess employee
satisfaction, it is necessary to calculate the percentage of
Promoters and the percentage of Detractors among all the
responses. Exclude passives and perform the following
calculation:eNPS =% Promoters -% Detractors
Theoretically, an eNPS score can range from +100 (allemployees are fully satisfied and recommend the employer)
to -100 (all employees are dissatisfied and are considereddetractors).

How the ENPS survey works:

In reality, an Employee Net Promoter Score:

The feedback of employees can vary from 0 to 10:• Greater than 0 is acceptable;• Scores from 0 to 6: Detractors, dissatisfied employees
who do not recommend the organization);• Between 10 and 30 is good;• Scores 7 to 8: Passives, employees who are fairly
satisfied but not really passionate about their profession
or job;• Greater than 30 is excellent.
The score obtained at VusionGroup has been excellent
since the second half of 2022.

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The In The Memory entity did not respond to thequestionnaire in 2023 because a similar survey had alreadybeen conducted internally.

The eNPS questionnaire was therefore conducted within
VusionGroup with 773 employees. The scope of employees
surveyed includes all types of contracts including interns,
fixed-term, and VIE (international business volunteer
program).

Right to assembly and collective bargaining
KPI
Collective Bargaining, Health and
Safety

GRI
Code

Topic

401

Employment

407

Freedom of association andcollective bargaining

SDG

Topic
Decent work and economic growth

VusionGroup recognizes and considers freedom of
association and collective bargaining as fundamental rights
of its employees: this recognition is formalized in its Labor
Rights Policy (available on our website). The Company isalso a signatory of the Global Compact. VusionGroup
undertakes to comply with the various local regulations andlaws in each of the countries where it operates. The Group
respects the individual right of its employees to form, join or
not join, to participate or leave freely, trade unions or any
other body of their choice to assert and/or defend theirinterests as well as to bargain collectively to support and/or
defend their mutual interests without fear of retaliation(intimidation, discrimination or harassment in any form, lossof salary or dismissal).

With nearly 50% of the workforce located in France,
VusionGroup SA's Social Economic Committee sets thetone for social dialogue.

VusionGroup also recognizes the importance of dialog withfreely appointed employee representatives, employee
representative bodies (such as economic social
committees), and organizations (such as trade unions), andsupports social dialog.

• IT Charter;

Finally, at VusionGroup, we comply with all requirements
aimed at establishing and maintaining fruitful and mutually
beneficial relationships within joint bodies.
Any behavior that does not comply with these rights must
be reported. The whistleblowing system is available to allon our employee platform in English and French.
Social dialogue is managed by the Human Resources
Department, chaired by the Head of the establishment, andcoordinated locally in collaboration with employee
representatives according to the regulations in eachcountry.

Several company agreements have been negotiated andsigned with employee representatives (where this body
exists in the subsidiary concerned), then applied worldwide
to ensure consistency of practices.
Some programs have been developed together:• Agreements on the organization of working hours;• Teleworking agreement;• Code of Ethics;• Right to disconnect;• Diversity and Inclusion Program.
Social dialogue is conducted constructively. Thus, themandatory annual negotiations have always led to anagreement.
In the same way, during the Covid-19 pandemic, we limited
the impact on the business thanks to our proven practice ofsocial dialogue, such as the negotiations on part-time workthat was implemented in many European countries, as wellas in Canada. The safety protocols implemented locallywere all developed in consultation despite the need to act
very quickly.

Providing a healthy and safe working environment
KPI

Work/life balance: eNPS,
teleworking agreements,
collective bargainings

GRI
Code

Topic

401

Employment403

Occupational health and safety

407

Freedom of association andcollective bargaining

Work-life balance
Since 2020, a teleworking agreement has been in place toallow employees to work from home two days a week.
These agreements are rolled out in all the countries in which
we operate and are widely used, except in certain
departments where their work cannot be carried out
remotely.

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Universal Registration Document 2023

SDG

Topic

Decent work and economic
growthThus, more than 70% of employees are covered by ateleworking agreement. This policy meets a dual objectiveof performance and improvement of the quality of life of
employees, by promoting a better balance between
professional and private life, by limiting the constraints
related to travel, by contributing to sustainable
development by reducing the number of car trips while
ensuring social ties are maintained.

ESG Report
Our climate strategy: decarbonization with our customers

We ensure that this new way of working takes place in asecure environment. Remote connection is provided by
VPN platforms and is authorized for employees who haveread the IT Charter and our Code of Business Conduct. Thisapproach is supplemented by employee support systems inorder to preserve balance and quality of life, particularly interms of connection time and health monitoring.
We recognize the importance and benefits of being an agileorganization, both in relation to productivity and caring forour employees. For us, flexible schedules that meet theneeds of the organization while catering to each individual’s
personal circumstances provide the best model.
In order to foster productive teamwork, we have invested in
the development of coworking areas intended to offer all of
our employees a ground to foster social interactions,knowledge sharing, reflection and creativity. These newconnected spaces are friendly, airy, bright, flexible. andagile enough to allow the organization of internal andexternal events in the future, and the installation of a new,more spacious and modern showroom to showcase our
products and innovations.
We are making these investments around the world so that
all our employees can benefit from offices that are easily
accessible and well-served by public transport, met stateof-the-art standards for office design and well-being atwork. The Group’s headquarters moved to a “High
Environmental Quality” (HQE) building in 2014 with best-inclass standards regarding comfort, lighting, ergonomics,social spaces and other facilities. In 2019, the R&D centerand headquarters in Austria were transferred to a brandnew building in Fernitz, south of Graz. With space inabundance, it includes a restaurant, a training room for
sports, a climbing wall, and leisure areas.
In 2023, the Taiwan office was completely refurbished to
the Group’s high standards. The Dallas office in the UnitedStates has moved to new and ultra-modern premises. The
Belive team from Amiens in France moved close to thestation and the interior fittings were carried out in the same
spirit. In Mexico City, the team has also recently relocatedto benefit from the same working conditions and manyother offices such as in Chicago, Milan, and Japan havebeen extended to facilitate growth and modern, connected,
and spacious facilities.
The Group uses these collaborative spaces to organize andpromote numerous social events to foster an interactive
environment and effective internal communication. For
example, a CEO update is organized at the Frenchheadquarters every six weeks and broadcast live aroundthe world in all collaborative spaces in order to share theGroup’s strategy and transformation programs and provide
an opportunity for a social gathering at the office.
Kids Days are organized every year in our main offices inFrance, Austria, and Taiwan. These events are particularly
enjoyed by children and parents, but also all employees
who are invited to help organize this very special day for all.
In terms of sports activities, the Group’s Human Resources
Department promotes local initiatives such as the provisionof a gym for employees in Austria and the organization of
yoga or pilates classes at the headquarters in Nanterre.
Ensuring team cohesion is essential in supporting andmaintaining strong growth. Within a dynamic andstimulating work environment, it is important to establish an
innovative and collective spirit enabling the Company tosuccessfully face the challenges it has set for itself.
In addition, VusionGroup opts for the most favorable
benefits for its employees in each of its subsidiaries. In
addition to the application of the legislation in force in termsof social protection, the best social standards are put inplace, in particular with regard to health and retirement
coverage. Very often, French practices are applied to theentire group. For example, parental leave policies are
consistent between France and the other subsidiaries.
Finally, VusionGroup recognizes the importance of the link
between the nation and the army and supports thecommitment of reservist employees (or another equivalentsystem in foreign countries). As such, the Group offers
flexibility in the time to be devoted to these reserve
missions.

Health and safety
The Group has formalized its health and safety policy, which is available online.
KPI

Collective Bargaining, Health and
Safety

GRI
Code

Topic

401

Employment403

Occupational health and safety

407

Freedom of association andcollective bargaining

The Group directly employs 847 people worldwide and also
sometimes uses temporary employment agencies andsubcontractors. The Group’s employees work in very
diverse environments and thus face different constraints
and risks depending on whether their working environmentis industrial or tertiary, nomadic or sedentary.

SDG

Topic

Decent work and economic
growthFor example, in the context of logistics activities and theinstallation of in-store solutions, both personnel andsubcontractors may be exposed to risks:• related to the equipment and organization of sites(mechanical and electrical risks, risks related to theergonomics of facilities, forklifts and lifting machines).

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In addition, personnel, particularly in the service sector,
nomadic or commercial, are exposed to:• risks related to business travel (accident or health risks);• psychosocial risks, in particular since the increase in
teleworking.
These risks can have consequences on the health and wellbeing of personnel and subcontractors. They are subject toappropriate detailed prevention and mitigation measures (inparticular checks of personal protective equipment for our
installation teams as well as for our logistics teams).

For the sake of personal safety, an external audit was
carried out in 2022 and 2023, a prevention plan was
implemented in 2023, and an occupational risk matrix wasdeveloped:
In 2023, VusionGroup carried out an assessment of therisks related to the various activities carried out by its
employees in order to determine their impact. This analysis
was carried out in consultation with the publications of theInternational Labor Organization's (ILO) International Hazard
Datasheets on Occupations (HDO).

The matrix describing the occupational risks identified is presented below:
Type of risk

Ergonomic risks

Physical risks

Psychological risks

probability

highmoderate

moderateseverity

mediummedium/highmedium/highlevel of risk

medium/highmedium/highmedium/high

Although employees in the service sector are generally lessexposed to the risk of workplace accidents, concerns
include musculoskeletal disorders due to poor posture,slips, bacterial infections, and psychological stress.

Contingency plan

In order to mitigate the high and medium risks identified in
the matrix and improve occupational safety, we have
implemented countermeasures. Occupational health andsafety best practices have been established and include
the monitoring of occupational health and safety indicators:• on-site training of staff in emergency situations (fire prevention)• clear emergency exit signage and unobstructed route• conducting evacuation and fire drills• regular checks of fire alarms and extinguishers• implementing a designated and trained emergency team• providing first aid kits and other first aid equipment

Prevention of musculoskeletal
disorders• medical visits focused on the prevention of ergonomic risks

Protection of mental health• online access to mental health modules through our e-learning platform,• providing ergonomic workstations• developing a comprehensive prevention policy covering work organization and working
conditions• offering flexible working hours options through teleworking agreements to promote a
healthy work-life balance• IT Disconnection Charter to ensure a healthy balance by establishing guidelines for IT
disconnection.

These measures reflect our commitment to ensuring thewell-being and safety of our employees in all areas of theirwork.
The HR contacts of each subsidiary are also the health andsafety representatives: each country is responsible forcoordinating the health and safety of employees, inaccordance with the regulations and the local level of risk.
International reporting is centralized, summarizing Groupwide days of absences, divided into three categories:• sick leave• accidents on the way to/from work
• workplace accidents

176

Universal Registration Document 2023

Out of a total of 4,564 days of downtime worldwide out of a
possible 228,200 working days, i.e., 2%, the vast majorityof downtime was the result of short-term sick leave.

ESG Report
Our climate strategy: decarbonization with our customers

Work-related accidents



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Number of
employees

Number of deaths0% of fatalities resulting from work-related accidents0

Number of serious work-related accidents0

Number of days not worked due to serious accidents at work0

% of serious work-related accidents0

Number of work-related accidents

4

Number of days not worked following a work-related accident

142% of work-related accidents

2.73%

Number of cases of work-related health problems

0

The above data covers all VusionGroup regions.
Commuting accidents are not included.
Definition of indicators:• Percentage of work-related fatalities: number of work-related fatalities/number of hours worked• Serious work-related accidents: work-related accidents that prevented employees from returning to a state of health enjoyed prior to the injury formore than six months.
• Percentage of serious work-related accidents: number of serious work-related accidents (excluding fatalities)/number of hours worked• Number of work-related accidents: excluding fatalities and serious accidents• Percentage of work-related accidents: number of work-related accidents/number of hours worked• Number of illnesses directly related to the work environment: must be approved by a medical institution• Work-related accident frequency rate: ratio between the total number of workplace accidents resulting in death or total incapacity for at least one day
and the number of hours of exposure to the risk, multiplied by 1,000,000• Work-related accident severity rate: ratio between the number of calendar days actually lost due to work-related accidents (in the workplace) and thenumber of hours of exposure to risk, multiplied by 1,000

Work-related
accident frequency
rate : 2.73%
Work-related
accident severity rate:
0.1%

Accidents per
employee:
0.47%

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Principal Adverse Impacts & standard GRI tables

4.6 Principal Adverse Impacts & standard GRI tables
Main negative impacts (PAI: Principle Adverse Impact indicators)
Topics

2. Carbon footprint

Section 4.3.1 "Scope 1, 2, and3 carbon footprint and carbon
intensity"

3. Intensity of greenhouse gas emissions of invested companies

N/A

4. Exposure to companies operating in the fossil fuel sector

No exposure to the fossil fuelsector

5. Share of non-renewable energy consumption and production

Section 4.3.1 "Scope 1, 2, and3 carbon footprint and carbon
intensity"

1.

GHG emissions(GHG)

Information for VusionGroupPAI

GHG emissions

6. Energy consumption intensity by sector with a high climate impact N/A
Biodiversity

7. Activities negatively affecting biodiversity-sensitive areas

N/A

Water

8. Water consumption

Section 4.3.4 "Water andenergy consumption at our
corporate offices: the impact
on our carbon audit is notdeemed significant"Waste

9. Hazardous waste ratio

Section 4.3.3 “Decarbonizing
our solutions”: Circular
economy10. Violation of the principles of the United Nations Compact and themain guidelines of the Organization for Economic Co-operation
and Development (OECD) for Multinational Enterprises

No violation

11. Lack of processes and mechanisms to monitor compliance with
Section 4.2.4 “Group ESG
the principles of the UN Global Compact and the OECD Guidelines
Governance”
for Multinational Enterprises
Social andemployee issues

12. Unadjusted gender pay gap

Section 4.5.2 “A goal ofleadership parity”: 93/100 for
professional gender equality
index in France

13. Gender diversity on the Board of Directors

Section 3.2 “The Board of
Directors”: 50% women on
the Board of Directors at
December 31, 2023

14. Exposure to controversial weapons (anti-personnel mines, cluster
munitions, chemical weapons, and biological weapons)

No exposure

GRI Content Index

Declaration of use

VusionGroup has disclosed the information cited in this index of the content of the GRI
standard for the period 1/1/2023 - 12/31/2023 with reference to the GRI standards

GRI 1 used

GRI 1: Foundation 2021

Applicable Industry
Standard(s)No applicable industry standard(s)178

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VusionGroup (2023 Fiscal year)
GRI standard

Information element

Response/Comments/Location
General information

GRI 2: General
information
2021

2-1

Organization details

Section 7 “The Company, its capital, andshareholders and in particular Section 7.9 "Legal
information” and Section 1“Introduction andpresentation of the Group’s activities" 2023 URD

2-2

Entities included in the organization's
sustainability reporting

Section 4.3.1 “Scope 1, 2, and 3 carbon footprint
and carbon intensity” and Section 4.7 “Scope andmethodology” 2023 URD

2-3

Reporting period, frequency, and contact
point

Section 4.7 “Scope and methodology” 2023 URD

2-4

Restatements of information

Section 4.3.1 “Scope 1, 2, and 3 carbon footprint
and carbon intensity” and Section 4.7 “Scope andmethodology” 2023 URD

2-5

External assurance

Section 4.8 "Report from the independent third
party” 2023 URD

2-6

Activities, value chain, and other business
relationships

Section 4.2 “Market and challenges”: Section 4.2.1“Our business model” and Section 4.5.2 “Asustainable supply chain” 2023 URD

2-7

Employees

Section 4.5.3 “Sustainable and stable headcountin constant renewal” 2023 URD

2-8

Workers who are not employed

N/A

2-9

Governance structure and composition

Section 3.1 “Management bodies” and 3.2 “TheBoard of Directors” 2023 URD

2-10

Nomination and selection of members of
the highest governance body

Section 3.1 “Management bodies” and 3.2 “TheBoard of Directors” 2023 URD

2-11

Chair of the highest governance body

Section 3.1 “Management bodies” 2023 URD

2-12

Role of the highest governance body inoverseeing the management of impacts

Section 3.2 “The Board of Directors” and Section
4.2.4 “Values and governance” 2023 URD

2-13

Delegation of responsibility for managing
impacts

Section 4.2.4 “Group ESG governance” 2023 URD

2-14

Role of the highest governance body insustainability reporting

Section 4.2.4 “Values and governance” 2023 URD

2-15

Conflict of interest

Section 4.2.4 “Values and governance” 2023 URD

2-16Communication of critical concerns

Section 4.2.3 “Materiality analysis” and Section
4.2.4 “ESG governance” 2023 URD

2-17

Collective knowledge of the highest
governance body

Section 4.2.4 “Values and governance” 2023 URD

2-18

Evaluation of the performance of thehighest governance body

Section 3.2.2 “Responsibilities and work of theBoard of Directors” and Section 4.2.4 “Values andgovernance” 2023 URD

2-19

Remuneration policies

Section 3.3 “Compensation and benefits ofcorporate officers” 2023 URD

2-20

Process to determine remuneration

Section 3.2.3.3 “Membership and responsibilitiesof the Nomination and Remuneration Committee”
and Section 3.3 “Compensation and benefits ofcorporate officers” 2023 URD

2-21

Annual total compensation ratio

Section 3.3.2.1 "Information relating tocompensation for 2023 paid to executive andnon-executive corporate officers in respect of
their term" 2023 URD

Statement on sustainable development
strategy

Section 4: “Message from the Chairman”,
Sections 4.2.2 "ESG Strategy" and 4.2.4 “Values
and governance,” and Section 3.2.3.1“Membership and responsibilities of the Strategy
and ESG Committee” 2023 URD

2-22

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GRI standard

GRI 2: General
information
2021(continued)

Information element

Response/Comments/Location

2-23

Political commitments

Section 4.2.4 “Group ESG governance” 2023 URD

2-24

Embedding policy commitments

N/A

2-25

Processes to remediate negative impacts

Section 4.2.4 “Group ESG governance” 2023 URD

2-26

Section 4.2.4 “Values and governance”, Section
4.5.3 “Regular managerial assessments”, Section
Mechanisms for seeking advice and raising
4.5.3 “Employee satisfaction survey”, and Section
concerns
4.5.3 “Right to assembly and collective
bargaining” 2023 URD

2-27

Compliance with laws and regulations

Section 4.2.4 “Values and governance” 2023 URD

2-28

Membership associations

Section 4.2.3 “Recognition of our commitment”
2023 URD

2-29

Approach to stakeholder engagement

Section 4.2.1 “Our business model” and 4.2.4“Interacting with our stakeholders” 2023 URD

2-30

Collective bargaining agreements

Section 4.5.3 "Right to assembly and collective
bargaining" 2023 URD

Relevant topics

Process to determine material topics

Section 4.2.3. “Materiality analysis” and Section
4.3.5 “TCFD reporting” 2023 URD

List of material topics

Section 4.2.3 “Materiality analysis”, 4.2.4“Interacting with our stakeholders” 2023 URD

3-3Management of material topics

Section 4 “ESG Report” 2023 URD

201-1

Direct economic value generated anddistributed

Section 5 “Comments on the fiscal year” andSection 6 “Financial statements” and Section
4.5.3 “Value sharing” 2023 URD

201-2

Financial implications and other risks andopportunities due to climate change

Section 4.3.5 “TCFD reporting (Task Force on
Climate-related Financial Disclosures)” 2023 URD

201-3

Defined benefit plan obligations and otherretirement plans

N/A

201-4

Financial assistance received fromgovernment

Section 5 “Comments on the fiscal year” andSection 6 “Financial statements” 2023 URD

202-1

Ratios of standard entry level wage by
gender compared to the local minimum
wage

N/A

202-2

Proportion of senior managers hired fromthe local community

Section 4.5.3 “Our global and diverse community”
and Section 4.5.3 “A gender parity objective
within the management team” 2023 URD

203-1

Infrastructure investments and services
supported

Section 4.2.4 “Interacting with our stakeholders”
2023 URD

203-2

Significant indirect economic impacts

Section 4.2.1 “Our business model”, 4.2.2 “ESG
strategy: the roadmap for positive retail”, 4.4.1“Decarbonizing our customers” of the 2023 URD

204-1

Proportion of spending on local suppliers

N/A

205-1

Operations assessed in terms of risk
related to corruption

Section 4.2.4 “Values and Governance” 2023
URD

205-2

Communication and training about anticorruption policies and procedures

Section 4.2.4 “Values and Governance” 2023
URD

205-3

Confirmed incidents of corruption andactions taken

Section 4.2.4 “Values and governance” 2023 URD

206-1

Legal actions for anti-competitive behavior,
Section 4.2.4 “Values and governance” 2023 URD
anti-trust and monopoly practices

3-1
GRI 3: Relevant
topics 2021
3-2

GRI 201:
Economic
performance2016

GRI 202:
Marketpresence 2016

GRI 203:
Indirect
economic
impacts
GRI 204:
Purchasing
practices 2016

GRI 205: Anticorruption
2016

GRI 206: Anticompetitive
behavior 2016

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GRI standard

GRI 207:
Taxation 2019

Information element

Response/Comments/Location

207-1

Approach to tax

Section 4.2.4 “Values and Governance” 2023
URD

207-2

Tax governance, control, and risk
management

Section 2.2 “Insurance program and internal
control” 2023 URD

207-3

Stakeholder engagement and management Section 2.2 “Insurance program and internalof concerns related to tax
control” 2023 URD

207-4Country-by-country reporting

Confidentiality constraint

301-1

Materials used by weight or volume

Section 4.3.3 “Electronic waste management”
2023 URD

Recycled input materials used

Section 4.3.3 “Decarbonizing our solutions:circular economy” 2023 URD

301-3

Reclaimed products and their packaging
materials

Section 4.3.2 “Improvements made to packaging
and logistics” 2023 URD

302-1

Energy consumption within theorganization

Section 4.3.1 "Scope 1,2, and 3 carbon audit andcarbon intensity" 2023 URD

302-2

Energy consumption outside of theorganization

N/A

GRI 301:
301-2
Materials 2016

GRI 302:
Energy 2016

302-3

Energy intensity

N/A

302-4

Reduction of energy consumption

N/A

302-5

Reduction in energy requirements ofproducts and services

Section 4.3.2 “Decarbonizing our offering” andSection 4.3.3 “Decarbonizing our solutions:circular economy” 2023 URD

303-1

Interactions with water as a sharedresource

N/A

GRI 303: Water 303-2
and effluent
2018
303-3

Management of water discharge-related
impacts

N/A

Water withdrawal

N/A

303-4

Water discharge

N/A

303-5

Water consumption

N/A

304-1

Operational sites owned, leased, managed
in, or adjacent to, protected areas andareas of high biodiversity value outside
protected areas

N/A

304-2

Significant impacts of activities, products,
and services on biodiversity

N/A

304-3

Habitats protected or restored

N/A

304-4

IUCN Red List species and national
conservation list species with habitats inareas affected by operations

N/A

GRI 304:
Biodiversity
2016

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GRI standard

GRI 305:
Emissions 2016

GRI 306:
Waste 2020

GRI 308:
Environmental
assessment of
suppliers 2016

GRI 401:
Employment
2016

GRI 402:
Labor/
Management
Relations 2016

182

Information element

Response/Comments/Location

305-1

Direct (Scope 1) GHG emissions

Section 4.3.1 "Scope 1,2, and 3 carbon audit andcarbon intensity" 2023 URD

305-2

Indirect (Scope 2) GHG emissions

Section 4.3.1 “Carbon footprint scopes 1, 2, and 3
and carbon intensity” and 4.3.2 “Decarbonizing
our offering” 2023 URD

305-3

Other indirect (Scope 3) GHG emissions

Section 4.4 “Our climate strategy: decarbonizing
our customers’ sites" 2023 URD

305-4

GHG emissions intensity

Section 4.3.1 "Scope 1,2, and 3 carbon audit andcarbon intensity" 2023 URD

305-5

Reduction of GHG emissions

Section 4.3.1 “Carbon reduction ambitions”, 4.3.2“Decarbonizing our offering” and 4.3.3“Decarbonizing our solutions: Circular economy”
2023 URD

305-6

Emissions of ozone-depleting substances
(ODS)

N/A

305-7

Emissions of nitrogen oxides (NOx), sulfur
oxides (SOx), and other significant air
emissions

N/A

306-1

Waste generation and significant wasterelated impacts

Section 4.3.3 “2nd life ESL” and 4.3.3 “Electronic
waste management” 2023 URD

306-2

Management of significant waste-related
impacts

Section 4.3.3 “2nd life ESL” and 4.3.3 “Electronic
waste management” 2023 URD

306-3

Waste generated

Section 4.3.3 “2nd life ESL” and 4.3.3 “Electronic
waste management” 2023 URD

306-4

Waste diverted from disposal

Section 4.3.3 “2nd life ESL” and 4.3.3 “Electronic
waste management” 2023 URD

306-5

Waste directed disposal

Section 4.3.3 “2nd life ESL” and 4.3.3 “Electronic
waste management” 2023 URD

308-1

New suppliers that were screened using
environmental criteria

Section 4.5.2 “A sustainable supply chain” 2023
URD

308-2

Negative environmental impacts in the
supply chain and actions taken

Section 4.5.2 “A sustainable supply chain” 2023
URD

401-1

New employees hires and employee
turnoverSection 4.5.3 “Our global and diverse community”
2023 URD

401-2

Benefits provided to full-time employeesthat are not provided to temporary or parttime employees

Section 4.5.3 “Remuneration policy” and 4.5.3“Value sharing” 2023 URD

401-3

Parental leave

Section 4.5.3 “A gender parity objective within the
management team” 2023 URD

402-1

Minimum notice periods regarding
operational changes

Section 4.5 3 "A good working environment" 2023
URD

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Principal Adverse Impacts & standard GRI tables

VusionGroup (2023 Fiscal year)
GRI standard

GRI 403:
Occupational
health andsafety 2018

Information element

403-1

Section 4.5.3 “Health and safety” 2023 URD

403-2

Hazard identification, risk assessment, andincident investigation

Section 4.5.3 “Health and safety” 2023 URD

403-3

Occupational health services

Section 4.5.3 “Health and safety” 2023 URD

403-4

Worker participation, consultation andcommunication on occupational health and Section 4.5.3 “Health and safety” 2023 URD
safety403-5

Worker training on occupational health andSection 4.5.3 “Health and safety” 2023 URD
safety403-6

Promotion of worker health403-7

Prevention and mitigation of occupational
health and safety impacts directly linked by Section 4.5.3 “Health and safety” 2023 URD
business relationships

403-8

Workers covered by an occupational health
Section 4.5.3 “Health and safety” 2023 URD
and safety management system

403-9Work-related injuries

Section 4.5.3 “Health and safety” 2023 URD

403-10 Work-related ill health

Section 4.5.3 “Health and safety” 2023 URD

Section 4.5.3 “Health and safety” 2023 URD

Average hours of training per year per
employee

Section 4.5.3 “Talent management” 2023 URD

Programs for upgrading employee skills
and transition assistance programs

Section 4.5.3 “Talent management” 2023 URD

404-3

Percentage of employees receiving regularperformance and career development
reviews

Section 4.5.3 “Regular management appraisals”
2023 URD

405-1

Diversity of governance bodies andemployees

Section 4.5.3 “Our global and diverse community”
and Section 4.5.3 “A gender parity objective
within the management team” 2023 URD

405-2

Ratio of basic salary and remuneration of
women to men

Section 4.5.3 “A gender parity objective within the
management team” 2023 URD

404-1
GRI 404:404-2
Training andeducation 2016

GRI 405:
Diversity andequal
opportunities
2016

Response/Comments/Location

Occupational health and safety
management system

GRI 406: Fightagainstdiscrimination
2016

406-1

Incidents of discrimination and corrective
actions taken

Section 4.5.3 “Fostering a highly motivating andinclusive workplace”, Section 4.5.2.3 “Our global
and diverse community”, and Section 4.5.3 “Agoal of gender parity within the managementteam” 2023 URD

GRI 407:
Freedom of
associationand collective
bargaining
2016

407-1

Operations and suppliers in which the rightto freedom of association and collective
bargaining may be at risk

Section 4.5.3 "Right to assembly and collective
bargaining" 2023 URD

GRI 408: Childlabor 2016

408-1

Operations and suppliers at significant risk
for incidents of child labor

Section 4.2.4 “Values and governance” 2023 URD

GRI 409:
Forced orcompulsory
labor 2016409-1

Operations and suppliers at significant risk
for incidents of forced or compulsory labor

Section 4.2.4 “Values and governance” 2023 URD

GRI 410: Safety
410-1
practices 2016

Security personnel trained in human rights
policies or procedures

N/A

GRI 411: Rights
of indigenous
peoples 2016

Incidents of violations involving rights ofindigenous peoples

Section 4.2.4 “Group ESG governance” 2023 URD

411-1

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GRI standard

GRI 413: Local
communities
2016

GRI 414: Social
assessment of
suppliers 2016
GRI 415: Public
policies 2016

GRI 416:
Consumerhealth andsafety 2016

GRI 417:
Marketing andlabeling 2016

GRI 418:
Customer data
confidentiality
2016

184

Information element

Response/Comments/Location

413-1

Operations with local community
engagement, impact assessments, anddevelopment programs

Section 4.5.3 “A great place to work” 2023 URD

413-2

Operations with significant actual andpotential negative impacts on local
communities

N/A

414-1

New suppliers that were screened usingsocial criteria

Section 4.5.2 “A sustainable supply chain” 2023
URD

414-2

Negative social impacts on the supply
chain and actions taken

Section 4.5.2 “A sustainable supply chain” 2023
URD

415-1

Political contributions

Section 4.2.4. “Interacting with our stakeholders”
2023 URD

416-1

Assessment of the health and safety
impacts of product and service categories

0% - Our R&D department continually strives toensure that our products have no impact on healthand safety, Section 4.5.1 "Guaranteeing the safetyof products and solutions" 2023 URD

416-2

Incidents of non-compliance concerning
the health and safety impacts of products
and services

Section 4.2.4 “Values and governance” 2023 URD

417-1

Requirements for product and service
information and labeling

Section 4.5.1 “Guaranteeing the safety of products
and solutions” 2023 URD

417-2

Incidents of non-compliance concerning
product and service information andlabeling

Section 4.2.4 “Values and governance” 2023 URD

417-3

Incidents of non-compliance concerningmarketing communications

Section 4.2.4 “Values and governance” 2023 URD

418-1

Substantiated complaints concerning
breaches of customer privacy and losses of Section 4.2.4 “Values and governance” 2023 URD
customer data

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Scope and methodology

4.7 Scope and methodology
4.7.1

Methodological note on non-financial reporting

VusionGroup approach to non-financial reporting aims to address the obligations stipulated in Articles R. 225-105, R.
225-105-1, and L. 225-102-1 of the French Commercial Code.

4.7.2 Reporting period and frequency
The data gathered covers the period from January 1 to December 31, 2023. No distinctions were made between the data.
The data is reported on an annual basis. Certain indicators do not include historical data because monitoring for these
indicators started in 2023.

4.7.3 Scope
The purpose of the non-financial reporting scope is to be
representative of VusionGroup's operations.

• Group management updates the reporting scope for agiven year on December 31 of that same year;

It is defined in accordance with the following rules:• the non-financial reporting scope for the 2023 fiscal year
comprises all of the Group’s consolidated entities for allof the indicators mentioned.

• only companies fully consolidated in the financial
statements are included in the non-financial reporting
scope;• entities consolidated or created during a given year (Y)will be included in the following year (Y+1) in order toimplement a gradual consolidation approach;

The specificities associated with scope limitations
regarding certain indicators are detailed below:• entities divested during a given year are excluded fromthe reporting scope for that year;

Policy choices and results and non-financial performance indicators
The policy choices and results and the non-financial
performance indicators presented in the statement of nonfinancial performance are made with regard to the mainsocial and environmental risks associated with theCompany’s operations.
Due to the nature of VusionGroup's operations, thefollowing information listed in the second paragraph,section III of Article L. 225-102-1 of the French Commercial
Code is not considered relevant: the fight against foodinsecurity, a responsible, sustainable, and fair food chain,and respect for animal welfare.

However, the same nutrition score that applies to foodproducts meant for humans could be applied to pet foodand thus may contribute to animal welfare.
Risk policies covering product composition and consumer
health as well as food safety, and sustainable food supply
chain are being rolled out by the Group, and will bepresented in more detail in the coming years.

4.7.4 Consolidation and internal control
Data is gathered centrally or from each entity included in the non-financial reporting scope from the following sources:
extractions from information systems, Excel monitoring files, invoices, etc. Qualitative information is gathered centrally byGroup management. The data is controlled and approved by the Group’s operational departments.

4.7.5 External controls
In accordance with the provisions of Article R. 225-105-2 of the French Commercial Code, VusionGroup appointed one of
its Statutory Auditors to be the independent third party responsible for verifying the statement of non-financial performance
as of the 2022 fiscal year. The reasoned opinion on the compliance of the statement of non-financial performance, as wellas on the accuracy of the information, is presented on the last page of this Non-Financial Performance Report (NFPR).

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Scope and methodology

4.7.6 Methodological specificities and limitations
The indicator numbers correspond to the numbering of the challenges and ambitions table in section 4.2.4. When theindicators have not been included in this table, the section of the report in which they are cited is mentioned:

Indicator 1: Number of active patents
All patents filed by the Group’s entities are managed
centrally within the R&D Department in order to manage
and monitor any patent filings and potential defenses. This
indicator includes all patents filed and granted, as theyillustrate VusionGroup’s continuous innovation efforts.

Indicator 2: Carbon intensity
The carbon intensity was obtained until this year only as
follows: the simple division of the Group’s total carbon
footprint (Scopes 1, 2, and 3) by the Group’s consolidated
revenue, before IFRS 15 restatement.
In 2023, we integrated a new methodology, to comply withthat required by the SBTi (Science-Based Targets
Initiative). The Group’s carbon intensity will be calculated
as follows: Group’s Scope 3 carbon footprint only, divided
by the Group’s variable cost margin before IFRS 15
restatement (as defined in section 5.1).
The two methods co-exist and are each used according to
the use case.
When the carbon intensity is limited to Scope 3 (example
according to the SBTi), the Scope 1 and 2 emissions
generated by VusionGroup will also be subject to reduction
targets, but in absolute terms and no longer in intensity.

GHG emissions

Emissions relate to scopes 1, 2, and 3 according to theregulatory methodology for the preparation of greenhousegas emissions assessments for the year 2023.
VusionGroup measures the carbon footprint of its activities,
that of its employees, and its energy consumption on
Scopes 1, 2, and 3 according to the general framework(1)
proposed by the GHG Protocol . Carbon accounting,common to all Group companies, is based on international
standards:
GHG Protocol, International Energy Agency, ISO 14064–1–
2016.
The data for all Group subsidiaries are consolidated to
produce the statement: we aggregate the greenhouse gas
emissions by corresponding item for each of our offices andsubsidiaries around the world.
To compare these different greenhouse gases, which do
not have the same warming potential, they are converted
into “CO2 equivalent.” CO2 is thus considered as thereference gas. The “Global Warming Potentials” are(2)
determined by the IPCC and calculated over 100 years.
Thanks to the CO2 equivalent, greenhouse gases arecomparable and cumulative, which makes it easier toanalyze company activity data.

Scope 1: consideration of emissions from LPG (butane,
propane), natural gas, domestic fuel oil or diesel, heavy fueloil and kerosene for stationary and mobile sources as wellas emissions related to refrigerant leaks. The inclusion ofvehicles used by the entire Group scope is ensured bymonitoring IFRS 16 restatements, making it possible toinventory the fleet of vehicles under a long-term lease, as
well as their respective engines.
Purchases of natural gas to heat our warehouses were also
recorded.
Scope 2: consideration of emissions from purchases ofelectricity, steam, heating and cooling. Electricity emission
factors only take into account combustion. Emissions
expressed for Scope 2 using the location-based method(corresponding to CO2 emissions calculated using “country
emission" factors from ADEME for the years 2018-2020
and from the IEA (International Energy Agency) for the year2021) calculated on the basis of standard emission factors
per country of location, per square meter occupied, and per
headcount present.
Scope 3 Manufacture and use of products sold: the life
cycle analysis of the Group’s products (ESLs) was entrusted(3)
to RDC Environment , which carried out a detailed analysisof the components listed in the industrial nomenclature of
our IoTs (screen, printed circuit, plastic frame, etc.) frommining to transportation to the assembly plant, taking into
account the energy required at each industrial stage, frompackaging and transport at each stage to the finishedproduct and its storage. Rails and fasteners are included inthis analysis.
The use of these ESLs by customers (server consumption,for example) as well as the end-of-life of the product werealso taken into account (destruction by approved
organizations), as well as its possible refurbishment(“second life ESL” program) for a comprehensive view ofthe life cycle, assessed according to the GHG Protocol.
A portion (9.1% of revenue) of the products and services
marketed by the Group, consisting mainly of IoT ranges in
end of marketing cycle, has not been subject to a life cycle
analysis.
Scope 3 Freight: the scope selected mainly concerns
internal freight and upstream and downstream freight (toour European warehouses). The calculation method used isthat of emission factor per km travelled, which make itpossible to associate CO2 emissions with the distancetravelled according to the mode of transport (road, air, rail).
Scope 3 Assets used: assets used by the entire Group aretaken into account by monitoring IFRS 16 restatements,
making it possible to inventory offices and warehouses
under long-term leases, as well as their respective surface
areas.
Scope 3 Business travel: emissions related to businesstravel within the Group are taken into account thanks to thecentralized travel agency reporting. The Group plans tohave only one travel agency for more homogeneous
information reporting.

(1)
(2)
(3)

GHG Protocol: Greenhouse Gas Protocol (https://ghgprotocol.org/)
Intergovernmental Panel on Climate Change
RDC Environment is a company of experts and solutions in sustainable development

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Scope 3 Commuting: emissions related to commuting
were estimated by taking an average of https://www.moneybarn.com/co2-commutes/. Emissions from
commuting represent an estimate and not an exact
calculation due to the availability of data, to be associatedwith the various assumptions. The level of uncertainty
remains significant for this item.
Scope 3 Purchases of goods and services: the emissions
caused by the Group’s purchases of goods and services
have been estimated using monetary emission factors thatcombine CO2 emissions with the value of purchases madefor different types of goods or services. The scope includes
all of the Group’s consolidated entities.

Indicator 3: Second life ESL (recycling oflabels)Second Life ESL or recycled labels: the calculation of theindicator is based on the quantity of labels that has been in
use for more than six years and that has been recycledwithin our European centers. The data is for Europe onlyand excludes entities located in Asia and North and SouthAmerica: the entities included in the “recycling of labels”
indicator account for €642 million of the Group’s annual
revenue (i.e. 80% of the consolidated revenue).
Entities from Asia or North and South America account for€160 million of the Group’s annual revenue: these entities
would not significantly distort the indicator since the labels
installed across these regions are, generally speaking,recent and have been in use for less than six years.

Indicator 4: Avoided emissions
This indicator will be the subject of a methodology in the2024 report.

Indicators 5 and 6: Audit of our supply chain
and signature of the Supplier Code of
Conduct
The department in charge of the Group’s industrial supply
manages the quality audit and ESG audit of suppliers byselecting the most significant suppliers based on purchases
for the current fiscal year (information provided by theaccounts departments).
On this basis, internal or outsourced audits (EcoVadis
questionnaire) are carried out on the most significant
suppliers and make it possible to calculate the number ofsuppliers and therefore the procurement portfolios thathave been audited and/or have signed the Supplier Code of
Conduct.

Human resources indicators:
Indicators 7, 9, 10
All of the indicators describing the age pyramid, genderratios, training hour and managerial interview ratios are
based on digitized reports compiled by the HR department,
whose scope covers all of the Group’s entities, without
exception.
The long-term remuneration policy indicator is also basedon an analysis covering all of the Group’s consolidated
entities, without exception.
Training indicator accounts for each and every training
provided to employees (including trainees and "VIE")
whether or not they are still in the headcount by year-end.
However, the accounting of training hours does not take
into account all entities: the new acquisitions in 2023 hadalready planned their annual training schedule for 2023 andare therefore not recognized (Memory and Belive.ai
representing 15% of the workforce) but will be included in
2024.
This is also the case for the Code of Ethics signature
indicator. This comes from this code's distribution platform,
coupled with the DocuSign software, enabling the real-timemeasurement of the return rate: only employees alreadyintegrated into internal software receive this request.
Memory and Belive.ai have not yet had the opportunity tosign it.

Indicator 8: eNPS
Employees Net Promoter Score: feedback from employees
may vary from 0 (Not at all likely) and 10 (Very likely). Basedon their answer, the respondents are divided into four
categories: ambassadors (above 8.5), passives (6.5 to8.49), non-ambassadors (2.5 to 6.49), and detractors (0 to2.49).
The eNPS score is then calculated using the following
formula: eNPS = % of ambassadors - (% of nonambassadors + % of detractors).
NPS scores range from a minimum of -100 (if every teammember is a non-ambassador or a detractor) to a maximumof 100 (if every team-member is a promoter). Employees
who rate the company between 9 and 10/10 are promoters;
between 7 and 8 are passive; and between 1 and 6 aredetractors.
The scope of employees surveyed includes all types ofcontracts including interns, fixed-term contracts, and VIE(international business volunteer program), with the
exception of the Memory entity, which already had a similar
survey at the time of the launch of the campaign. (Theexclusion represents 8.74% of the workforce, 74 out of
847).
The eNPS survey is carried out twice a year (in H1 and H2)
and the two results have been published since 2024
compared to the previous year when an average of the two
results was published.

Indicator 11: Composition of the Board of

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Directors

Indicator 12: External ratings

This indicator reflects the statistics provided in thecorporate Governance report and in particular section 3.2.1.
This information complies with French regulations as wellas the recommendations of the French Financial Markets
Authority (AMF - Autorité des Marchés Financiers) and the
AFEP-MEDEF Code.

All of the external ratings to which the Group is subject(EcoVadis, ISS, CDP) require for the scope of investigation
to be a Group scope.
In the case of ISS-type external assessments, they arebased on public information and, in particular, theinformation and indicators published in this report.
In the case of the EcoVadis assessment, which is based ona documentary audit, the requirement is the same: adocument that is valid only for the parent entity will not berecognized as valid for the Group.

4.7.7

Other indicators

NPS indicator: customer satisfaction (section
4.5.1)
Customers Net Promoter Score: the calculation of thisindicator is based on feedback from the Group’s clients(scope includes worldwide customers, except China). The
NPS indicator assesses the extent to which clients
recommend a company.
Clients who rate a supplier between 9 and 10/10 are
promoters; between 7 and 8 are passive; and between 1 and
6 are detractors.

Indicator: Packaging savings (section 4.3.2.2)
The calculation of optimized pallet loads via packaging
optimization is the result of a close cooperation with one of
our industrial partners in Southeast Asia.
This cooperation resulted in a reduction in the number ofboxes, removing the protective plastic sheets from the label
screens and using recyclable material only for the final
packaging of electronic devices. These results are thenapplied to the ESL's quantities actually transiting throughthe upstream logistics since July 2021.

The NPS is calculated using the difference between thepercentage of promoters and the percentage of detractors.

Eventually, in addition to reducing the weight and volume of
packaging, this has significantly improved shipping
container filling rates and the number of shipments.

Indicator: Employees' carbon footprint(section 4.3.2)

Ethical business conduct and anti-corruption
indicator (section 4.2.3)

Statistics on the type of engine used in the Group’s vehicle
fleet were compiled for all Group entities, based on the fileof the Finance/Consolidation Department managing allleases subject to an IFRS 16 restatement.

The Group’s consolidated revenue is published under a new
analytical axis determined by the intersection of the
distribution of the geographical areas where the Groupinvoiced its customers during the fiscal year, and theranking of the latter in terms of corruption according to the2022 corruption index, published by Transparency
International
availableonthewebsite:https://
www.transparency.org/en/cpi/2022

The makes and models of the leased vehicles made it
possible to identify the type of combustion engine (hybrid
or electric).

Point of contact: EVP ESG Legal
The point of contact for questions regarding reporting or
information provided in this sustainability report is Ms.
Pascale Dubreuil, EVP ESG Legal of VusionGroup.

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Report from the independent third party

4.8 Report from the independent third party
Report of one of the Statutory Auditors, appointed as independent third party,
oncthecverification of the consolidated non-financial statement
This is a free English translation of the Statutory Auditor's report issued in French and is provided solely for theconvenience of English-speaking readers. This report should be read in conjunction with, and construed in accordance
with, French law and professional standards applicable in France.
Year ended December 31st 2023
To the annual general meeting,In our capacity as Statutory Auditor of your company (hereinafter the “Entity”) appointed as independent third party, and(1)
accredited by the French Accreditation Committee (COFRAC) under number 3-1884 , we have undertaken a limited
assurance engagement on the historical information (observed or extrapolated) in the consolidated non-financial statement,
prepared in accordance with the entity's procedures (hereinafter the "Guidelines"), for the year ended January 31st, 2023
(hereinafter, the "Information" and the "Statement" respectively), presented in the Group's management report pursuant to
the legal and regulatory provisions of Articles L. 225 102-1, R. 225-105 and R. 225-105-1 of the French Commercial Code(code de commerce).

Conclusion
Based on the procedures we performed as described under the "Nature and scope of procedures" paragraph and theevidence we obtained, nothing has come to our attention that causes us to believe that the consolidate non-financial
statement is not prepared in accordance with the applicable regulatory provisions and that the Information, taken as awhole, is not presented fairly in accordance with the Guidelines, in all material respects.

Preparation of the non-financial performance statement
The absence of a commonly used generally accepted reporting framework or of a significant body of established practices
on which to draw to evaluate and measure the Information allows for different, but acceptable, measurement techniquesthat can affect comparability between entities and over time.
Consequently, the Information needs to be read and understood together with the Guidelines, summarized in the Statement
and available on the Entity’s website or on request from its headquarters.

Responsibility of the entity
Management of the entity is responsible for:• selecting or establishing suitable criteria for preparing the Information,• preparing a Statement pursuant to legal and regulatory provisions, including a presentation of the business model, adescription of the main non-financial risks, a presentation of the policies implemented considering those risks and theoutcomes of said policies, including key performance indicators, and the information set out in Article 8 of Regulation (EU)2020/852 (Green Taxonomy),• preparing the Statement by applying the entity’s “Guidelines” as referred above, and• designing, implementing, and maintaining internal control over information relevant to the preparation of the Informationthat is free from material misstatement, whether due to fraud or error.
The Statement has been prepared by the Board of Directors.

Responsibility of the Statutory Auditor, appointed as independent third party
Based on our work, our responsibility is to provide a report expressing a limited assurance conclusion on:• The compliance of the Statement with the requirements of Article R. 225-105 of the French Commercial Code,• The fairness of the historical information (observed or extrapolated) provided pursuant to part 3 of sections I and II of
Article R. 225-105 of the French Commercial Code, i.e., the outcomes of policies, including key performance indicators,
and measures relating to the main risks.

(1)

Accreditation Cofrac Inspection, number 3-1884, scope available at www.cofrac.fr

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