Supplements to theAnnual Report 2021

1

Supplements to the Sustainability statements
included in the Signify Annual Report 2021
1. Data definitions, boundaries, and scopeThis supplement to the Signify 2021 Integrated Report details data definitions,boundaries, and scope of sustainability indicators disclosed.

2. Signify’s materiality assessment 2021
As part of Signify’s annual reporting process, dedicated stakeholder engagement
activities have been conducted to update Signify’s materiality matrix and identify the mostmaterial topics. This supplement provides details of this process.

3. GRI Content index
The Signify 2021 Integrated Report has been prepared in accordance with the GRI
Standards: Comprehensive option. This supplement to the Annual Report provides adetailed GRI Content Index for the most material topics identified (top right quadrant ofour matrix): Climate action and Human rights.

4. Task Force on Climate-related Financial Disclosures (TCFD)
The Signify 2021 Integrated Report follows the TCFD recommendations. This supplement
to the Annual Report details our reporting in line with the recommendations.

5. EU non-financial reporting directive (NFRD)
The Signify 2021 Integrated Report is subject to E.U. directive 2014/95/EU, relating todisclosure of non-financial and diversity information. This supplement to the Annual
Report provides details on compliance with this directive.

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Supplement 1: Data definitions, boundaries, andscope•

Brighter lives revenues
Revenues coming from our portfolio which
benefit society focusing on 3 mainsustainability areas:• Food availability: Signify is increasing foodavailability with agricultural lighting that
can help improve yield and quality, while
using less resources and reducing waste
and food miles. Our lighting enables the
production of clean, healthy and nutritious
food all year round.
• Safety & security: Signify is improving city
services and can help to reduce street
crime and night-time traffic accidents andour Trulifi offers a range of LiFi systems,
providing two-way wireless communicationthat is reliable, secure and fast.
• Health & wellbeing: Signify provides lightwhich adapts to circadian rhythm andoptimizes energy levels to help people see,feel and function better. With UV-C Light,
we can inactivate viruses, including thevirus causing COVID 19, in a matter of
seconds.

•

Solar solutions as these are powered byrenewable energy
Electronic control gears which optimize
the energy and light performance of thelight source.

Employee data
The total number of employees comprises all
employees, including from newly acquiredcompanies and temporary employees, but
excludes interns. Social data covers all
employees that have been fully integrated inour system and exclude contingency workers.
The Employee Net Promoter Score (NPS)
survey is performed on a quarterly basis and is
calculated through a weighted average for thewhole year using the respondents and results.
It includes employees with access to acompany email address.
Environmental data
Environmental data from manufacturing
operations are reported quarterly or halfyearly, according to defined company
guidelines that include definitions, procedures
and calculation methods. A robust system ofinternal controls has been implemented toensure consistent data quality. The results aretracked and internally reported to measureprogress against our program targets. Data on
operational energy usage includes energy use
from manufacturing sites and non-industrialsites and excludes transmission losses to thegrid. Most of the environmental data covers areporting period from the 1st of December
2020, until the 30th of November 2021.

Circular revenues
Revenues coming from our circular portfolio topreserve value and avoid waste through four
categories:• Serviceable
luminaires:
Upgradable,
serviceable, connectable, energy efficient,reusable and recyclable.
• Circular components: Exchangeable andrecyclable parts, such as drivers, controls,and LED boards.
• Intelligent systems: Monitor serviceable
luminaires for preventive maintenance andlighting asset management.
• Circular services: Prolong lifetime andprovide customers with sustainable endof-contract options.

Health & Safety
Health & Safety data is reported by sites withmore than 50 FTEs (full-time equivalents) andvoluntarily reported by sites with fewer
employees. Health & Safety data are reported
and validated monthly. The focus of reportingis on work-related injuries and illnesses that
predominantly
occurinmanufacturing
operations and lead to a recordable injury orillness case. Recordable cases include all
injuries and illnesses sustained at work that
result in medical treatment, restricted work,
lost work days, or fatality. All injury and illness
cases are reported for staff and contractors
as outsourced workforce. The TRC and LWIC
KPIs refer to all reported cases.

Climate action revenues
Revenues coming from energy efficient andsolar products, systems and services whichhelps to save energy and reduce carbon
footprint with the below criteria:• Products which meet strict luminous
efficacy thresholds (between 80 and 110
lm/W depending on lumen output) to
reduce energy consumption.
• Systems and managed services whichenable further energy savings (up to 80%
total) by optimizing the lighting use.

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Integrity code
Alleged Integrity code concerns areregistered via our internet-based reportingand validation tool. Our Ethics line is available
to all employees and outside parties, allowing
concerns to be anonymously registered by
telephone or through an online web form. In
addition, local compliance officers areavailable globally, to register concerns onbehalf of employees. The Integrity code
concerns encompass all concerns registeredin the Ethics line database opened throughout
the financial year.

The reason for the WageIndicator databaseselection was the extensive coverage ofcountries, the sample-method, and theresearch institutes involved with their study,
including Harvard Law School and the
University of Amsterdam. Signify does notindependently
validate
data
from
WageIndicator, thereby causing an inherent
uncertainty of the accuracy of the data.
Statements on living wage pertain to all
employeetypes,
includingtemporaryemployees, but exclude interns.

Lives Lit and Community support
The Signify Foundation and Signify’s CSR
program focus on lives lit and entrepreneurs
trained. We define lives lit as the number ofpeople that are enabled first access to solar
lighting (indoor/outdoor), access to improved
lighting (LED lighting), or access to thebenefits of lighting (horticulture, UV-C). The
beneficiaries are either reached directly
through provision of lighting products, orindirectly through supported partners. For
entrepreneurs trained we count the people
who have been provided with business and/or
technical skills training through our funding
support.

Mergers, acquisitions, divestures
New Signify venturesareincludedinenvironmental and social disclosures to theextent that the integration process of theseventures has sufficiently been finalized. Assuming
new ventures’ sustainability reporting andavailability of data conform with Signify
requirements, the normative integration period is
two years. Whenever the normative period is notrealistic, we will deviate and disclose it in our
Annual Report. Divestitures completed before
December 31 of the book-year are excluded fromenvironmental and social reporting. In case Signify
acquires a new manufacturing site or office(whether it is leased or owned), Signify has 12months to ensure the site is integrated in its
sustainability commitments.

Living wages
Signify defines a living wage as the gross monthly
wage needed to cover the necessary living costsof an individual or a family. It is calculated as thegross income necessary to afford these
expenditures. For all countries examined (Poland,
Mexico, China, United States of America and India,
which represents 90% of the workforce inscope), Signify used WageIndicator’s database to
set its baseline.
WadeIndicator’s database offers different
variations of family model (individual, with orwithout child, national fertility rate) andemployment rates (full-time, part-time, national
employment rate). To perform its analysis, Signify
selected the “Standard family” Living Wage as we
believe it reflects better the average family
composition across our countries of operation,
maintains a stable method of comparison, and is
the WageIndicator recommended family variation.
The Standard Familiy Living Wage indicates a grossmonthly income range for a full-time equivalent
worker at which the total earned family income issufficient to cover necessary costs. The standard
family includes two adults and two children (family2+2) and the family employment rate is 1.8, whichmeans one adult is a full-time worker and thesecond adult has a working week of 80% (4 days aweek). Signify uses the lower range of theStandard family model for its analysis.

Carbon footprint over value chain
Signify reports in line with the Greenhouse Gas
Protocol (GHGP). The GHGP distinguishes
three scopes of carbon emissions. The
market-based method of reporting is used asa reference for calculating our total
operational carbon footprint.
• Scope 1 – direct GHG emissions – isreported with direct emissions from ourindustrial and non-industrial sites in full.
• Scope 2 – indirect GHG emissions – isreported with indirect emissions from ourindustrial and non-industrial sites in full.
Signify reports Scope 2 GHG emissions
based on both market-based and locationbased methods. The market-based method
quantifies scope 2 emissions fromelectricity based on the GHG emissions of
the generators from which the electricity
was contractually purchased, a specificelectricity product purchased, or acontractual instrument (e.g. renewableenergy credit), whether independent fromor bundled with the purchased electricity.
The market-based method reflects
emissions from electricity that anorganization has purposefully chosen. The
location-based method quantifies scope 2

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emissions based on average energy
generation emission factors for defined
geographic locations, including local,
subnational, or national boundaries.
• Scope 3 – other GHG emissions related toactivities not owned or controlled by
Signify are reported for Business travel,
Logistics.

spend. Risk countries for supply chain
management in 2021 can be found on ourThesupplier
sustainability
website.
performance rate is defined as thepercentage of all active risk suppliers thathave had an audit score of at least 90 out of
100 points in the defined timeframe (3-years
cycle). The CDP supply chain results are basedon self-reporting from suppliers. This causes
an inherent uncertainty of the accuracy of
impacts from their emission reduction
activities.

Our carbon neutrality commitment covers
Signify operations, meaning scope 1, 2 andpart of scope 3 for Business travels andlogistics.
Operational energy usage includes energy use
from manufacturing sites and non-industrialsites and excludes transmission losses to thegrid.

Sustainable innovation
Sustainable innovation comprises all R&D
activities contributing to our sustainable focal
areas. This means all research and new
development of products, systems, orservices that demonstrate a measurable
positive impact in energy efficiency (10% or
greater), and preferably also in one or moresustainable focal areas: Energy & solar,
Circularity, Packaging, Substances, Weights &materials, Safety & Security, Health & wellbeing, Food availability. Sustainable innovation
spend is the cumulative spending of all R&D
projects
contributing
tosustainable
innovation.

The CO2 emissions calculation includes all six
Kyoto gasses (CO2, CH4, N2O, HFCs, PFCs, andSF6).
Emission factors sources:•
Emissionfactorsforelectricity
consumption have been taken from IEA
and eGrid for the location-based
method; AIB and Green-e for the marketbased method.
•
Emission factors for the other sources ofscope 1 & 2 emissions have been takenfrom DEFRA, EPA and IPCC AR5.
•
Emission factors for scope 3 sources
have been taken from DEFRA and Clean
Cargo.

Value creation modelThedefinitions,scope,
estimatesandassumptions used for some parts of the value
creation model are disclosed in the methodology
document that can be found at our sustainability
downloads webpage.
The acquisitions’ normative integration period forenvironmental and social disclosures is two years.
This normative period differs from financial
accounting requirements.

Signify aligns its efforts to cut greenhouse gas
emissions with climate science. Our ScienceBased Targets have been approved by the
Science Based Targets Initiative.
Plastic free packaging
Our plastic free packaging policy aims toeliminate all plastics from our consumer
packaging in 2022. The scope of the packaging
requirements is applicable for the packaging
components used for Signify finished products
and includes:•
Packaging for all newly introduced
products and changes in packaging ofcurrent portfolio transport packaging(e.g. A-boxes and palette boxes)•
Individual product packaging (e.g. boxes,
blisters, and sleeves)•
Supportive packaging materials (e.g.
pallets, stretch foil, stowing materials)

Waste to landfill
The amount of waste sent to landfill is calculated
on a quarterly basis and includes waste frommanufacturing locations with more than 50
manufacturing FTE and voluntarily reported bysome manufacturing sites.
To achieve “zero (manufacturing) waste tolandfill”,
theamountof
non-hazardous
manufacturing waste being disposed directly tolandfill should be <1% of total waste.
In our approach to zero, we exclude:•
Chemical waste: hazardous/non-hazardous
and other waste classified as hazardous•
One time waste: e.g. demolition, construction
waste•
Regulated waste: if governed by legal
requirements to be landfilled, or the waste

Sustainable supply chain
Supplier audits focus on risk suppliers, basedon identified risk countries and (forecasted)5

collection and/or treatment company isgoverned by local legal requirements% Women in Leadership KPI is the percentage ofwomen as a percentage of the total population ingrades H22 and above. It includes employees withor without a defined end date and international
assignees who are in Workday, with compensation
grades H22 and above (including EXCO).
It excludes:• Contingent workers• Newly acquired companies (e.g., Klite): not in
Workday and not yet integrated into the
Signify operating model, so cannot be
considered for KPIs due to missing data points• Employees not in the FTE count (e.g., interns)• Factory and warehouse workers: noleadership roles in these groups
The source of data is Workday.

6Supplement 2: Signify’s materiality assessment 2021
1. Our approach
Our materiality assessment is the first step towards defining our strategy. By identifying future trends andunderstanding stakeholders’ perspectives (at a global and local level), we can better manage the risks andopportunities that could impact our ability to create value in the long-term.
We define materiality along two axes. The vertical axis captures the importance of each topic for external
and internal stakeholders. The horizontal axis captures both our company’s significant impacts on theeconomy, environment, and society and the impact of externalities on our business. Assessing both axes
enables us to prioritize and focus on the most relevant issues and define Signify Annual Report’s content.
Our materiality assessment was conducted using the GRI Standards’ principles for defining report content
while integrating the concept of double materiality.
For our materiality assessment, we use different sources of information (internal and external) to identify
possible material topics. To prioritize these topics, Signify organizes annually dedicated stakeholder
engagement activities. At the end of this process, we can identify the most material topics Signify should
be reported on.
2. Our stakeholders
We engaged with the stakeholders considered most relevant to our company, as they are most likely to be
impacted by our activities and have the most influence on achieving our commitments. Capturing
perspectives from multiple stakeholders’ groups enables us to gain broader insights into value creation andcontribute to the definition of our future strategy and plans.
For our 2021 materiality assessment, we have defined stakeholder representatives from each of the six
identified groups: Customers, Employees, Suppliers, Inventors and Analysts, Municipalities and governments,
and Civil society organizations. Representatives have been selected against several criteria: expertise,
constituency, geographies. The broad range of stakeholders minimizes bias and creates a diverse insight.
In addition to our strategic conversations with these stakeholders, we hold memberships and are active inmany organizations, including the Carbon Disclosure Project (CDP), the World Economic Forum (WEF), theResponsible Business Alliance (RBA), and The Climate Group.
3. Identification phase
In this first phase, we performed different activities to capture the potential new sustainability topics weshould add to our list of material topics.
Media and trends analysis
In 2021, we performed a trend analysis to identify
current and future trends. This includes extensive
desktop research of the most recent literature andexperts’ reviews. In 2021, we implemented a new internal
trends survey, designed to better capture trends andunderstand Signify’s stakeholders’ expectations at a
local level. Participants from across the world wereselected for their knowledge in sustainable development
and for their external facing roles and regularinteractions with various stakeholders.
Additionally, we capture headlines monthly from major
mainstream and sustainability media assets. This helps
perceiving societal expectations and upcoming
sustainability topics at the global level.

Integration of Signify top 2021 risks
In 2021, we integrated the top risks and opportunities identified during Signify annual risk workshop for the
first time. We translated top risk into material topics to offer a complete overview of our financial and nonfinancial risks and opportunities and improve the link between sustainability, risk management, and strategy.

7

Signify identified risk

Material topic

Risk related to climate change
Inability to position and establish an effective go-to-market strategy in an
increasingly digital marketplace
Inability to develop data managed services businessInability to meet market requirements through the digitalization journey
Risk of global geopolitical instability
Inability to improve the growth profile of the company and develop our growth
platforms
Inability to maintain our leadership position in innovation
Inability to reallocate resources on high priority areas and stop non/low value
add activities
Inability to lean further our processes to increase execution speed
Current company structure may pose a threat to the ability to harvest
opportunities in the fast-moving market
Business continuity disruptions

Climate change
Digitalization
Geopolitical instability
Innovation

Operational excellence

On-going stakeholder engagement
Throughout the year, we engage with key stakeholders and gain significant insights into how to create value
and anticipate risks. Working closely with key stakeholders strengthens our ability to address their needs
and concerns. We inform our stakeholders about our activities, the measures taken and their results
through different engagement channels.
Overview stakeholder engagement activities (non-exhaustive)
Stakeholder
Stakeholder engagement processes
group
Customers
Business development, lean value chain
projects, consumer panels, Net Promoter
Scores, social media, customer surveys, key
account management, sustainability exchanges
with customers
Employees
Regular meetings, quarterly team surveys, biannual employee development process,quarterly update webinars and sustainability
engagement campaigns
Investors andVirtual roadshows, (ESG) investor conferences,
analysts
investor webcasts, investor relations website,
investors' perception study

Exemplary topics
discussed
Growth for sustainability& innovation;
Satisfaction rates;
ESG-performance
Strategic alignment
sessions; Training &Development; Diversity,
equity and inclusion;
Strategic alignment
sessions; ESGperformance

Suppliers

Supplier development and quality activities
including topical training sessions, industry
working groups such as EPRM and RBA, and thecommodity management, supplier quality andprocurement engineering functions

Sustainability
performance;
Peer-learning

Governments,
municipalities

Annual innovation experience, research
projects, policy and legislative developments,
business development, GreenSwitch andBrighten America programs
Partnerships with NGOs, cross-sector (multistakeholder), projects, supplier sustainability
stakeholder day, our social investment
program, the Signify Foundation

Sustainable cities;
Energy efficiency;
Sustainable innovation

Civil society
organizations

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Social impact of light;
Sustainable operations;
Growth forsustainability;

Conclusions of the identification phase 2021
Our material topics are the outcome of aligning our strategy and Brighter Lives, Better World 2025
sustainability program, and our stakeholders’ expectations. As a result of our trends and media analysis,
some topics originally included in an umbrella term became standalone topics. This is the case for
Cybersecurity and Diversity & Inclusion. We gathered the topics of Energy efficiency and Carbon footprint
under the new material topic: Climate action. Human capital development is renamed Talent & development
and integrates now the topics of Learning and development and Employee engagement. By incorporating
our top risks, we generated new material topics: Digitalization, Innovation, Geopolitical instability, andOperational excellence.
To provide a clearer picture of our impacts on our stakeholders, including investors, we organized ourmaterial topics into three categories: Environment, Social, Economic & Governance (ESG).
List of 2021 material topics
Environmental
Climate action*
Hazardous substances
Circular economy
Responsible packaging
Water usage
Biodiversity*: new/updated material topics

SocialHuman rights
Safety at work
Talent & development*
Diversity & inclusion*
Social impact of light

Economic & GovernanceBusiness ethics
Digitalization*
Cybersecurity*
Innovation*
Operational excellence*
Geopolitical instability*

4. Prioritization phase
In this phase, we focused on evaluating the importance of each material topic according to the importancefor our stakeholders and our business impact through a stakeholder survey and an internal strategic
workshop. The materiality is evaluated along two axes.
2021 Stakeholders’ survey
The first axis, Y axis, represent the importance of each topic for our stakeholders. Every year, we send an
online survey to a list of respondents that represent our global stakeholder groups and we ask them to rate
our sustainability topics by significance and relevance for Signify. In 2021, we invited close to 550 internaland external stakeholders to provide input via the online survey (response rate: 22%).
With the survey outcome, we can further ensure we focus our efforts and public disclosures on the subjects
considered the most important to Signify and its stakeholders. The survey answers define the position of thesustainability topics in the vertical axis of our matrix.
In 2021, we observed a significant increase of importance for the topics of Biodiversity, while Climate Action
and Business ethics increased slightly. Together with Human rights and Safety at work, these topics remain
the most important topics to our stakeholders.
Internal strategic workshop
The final step of our prioritization phase includes several discussions to finalize the position of the topics on
the X axis based on adverse and positive impacts on the environment, economy, and society, and the risks
and opportunities they represent.
In 2021, an internal workshop was organized to finalize each topic’s position on the X axis. Participants
included representatives from the Sustainability and the Strategy departments.
Through the discussions, we confirmed that Climate action and Human rights are our two most material
topics. Business ethics and Safety at work remain very important and Signify has strong processes in place.
Social impact of light, Circular economy, Digitalization, and Geopolitical instability are important for Signify tomanage and are positioned on the right hand on the X axis. Biodiversity and Water are both in the lower
quadrant of this matrix and are our two least material topics. The result of the materiality assessment has
been reviewed by the Leadership Team and the Supervisory Board.

9

5.

Results of Signify’s 2021 materiality assessment

Signify’s 2021 materiality matrix

10Signify’s 2021 material topic’s definition and link to SDGs
Signify reports on the contribution to six priority SDGs embedded in the Brighter Lives, Better World 2025
sustainability program. For each material topic, Signify analyzed its contribution to our priority SDGs at thetarget level. The definition of the targets can be accessed on the United Nations website.

Material topic

Climate action

Environment

Hazardous
substances

CirculareconomyResponsible
packaging
Water usage
Biodiversity

Human rights

Safety at work

SocialTalent& Development

Diversity& Inclusion

Social impactof light

Priority
SDG

Definition
Signify’s actions to combat climate change and its
impacts by going beyond carbon neutrality anddoubling the pace of the Paris Agreement 1.5ºC
scenario. This includes offering energy-efficientand solar solutions to reduce the emissions of ourcustomers and driving carbon reductions at our
suppliers.
Signify’s endeavors to manage chemicals in its
production processes and hazardous and/or
regulated substances in its products. This
minimizes risks from the use of substances to ouremployees, our customers, the environment, andmore broadly society
Signify’s efforts to reduce waste and preserve
value by aligning customers’ goals, the growth of
the business, and the future resources of theplanet. This includes developing products that canbe repaired, refurbished, reused or recycled, andsending zero waste to landfill.
Signify’s actions to reduce packaging weight andvolume, increase recycled content, and eliminate
plastic packaging for consumer products.
Signify’s efforts to reduce water use in operations,considering Signify also operates in water-scarceregions.
Signify’s engagement to minimize its negative
impacts on biodiversity and increase impact
through its carbon offsetting projects.
Signify’s adherence to human rights principles in its
own operations as well as social responsibility in its
supply chain. This includes topics like labor
conditions, living wages, and responsible mineralsourcing.
Signify’s actions to ensure a safe and healthy
workplace by reducing injuries and illnesses ofSignify employees and contractors.
Signify’s focus on employee engagement anddevelopment to enrich the lives and careers of ouremployees, enabling growth, engagement, andfulfilment.
Signify’s commitment to diversity, equity andinclusion in the workplace as an equal opportunity
employer. This fosters an inclusive culture where
people truly belong, have impact and take pride in
the company we build and to drive long-term value
creation.
Signify’s engagement to develop lighting productsthat create value for society by contributing toincrease food availability, safety and security, andhealth & wellbeing. As well as enabling access tosustainable and affordable lighting to support
underprivileged and underserved communities.

11

Relevant SDG
Targets
7.2; 7.3
13.2; 13.3

12.4;

12.2; 12.5; 12.7

12.2; 12.4; 12.5
12.2;
13.2

8.7; 8.8

3.4; 3.98.8
8.1; 8.5; 8.6;
8.8

8.1; 8.5; 8.6;
8.8

3.4; 3.9

11.3; 11.7

Economic & GovernanceBusiness
EthicsSignify’s commitment to act with integrity andensure ethical behavior of the workforce, including
share performance and pay out policy, responsible
procurement practices, tax policy, and productquality and safety.

8.1; 8.7

Digitalization

Signify’s efforts to digitalize its go-to-market
approach and business processes by building
technology platforms that address customer needs
in a connected world and support Signify’s growth.

8.1; 8.2

Cybersecurity

Signify’s efforts to protect information, products,
and operations from cyber-attacks and security
breaches, protect customer privacy, and ensurethat product development, software applications,and ecosystems comply with security standards
and best practices.

8.1; 8.2

3.4
7.3

Innovation

Signify’s endeavors to develop different capabilities
and competencies to continuously introduce locally
relevant new products and solutions in areas suchas connected lighting systems, software, and digitalapplications.

8.1; 8.2; 8.4
11.6
12.2
13.2

Operational
excellence

Geopoliticalinstability

Signify’s actions to enhance operational capabilities
and opportunities to ensure business continuity,competitiveness, and growth. This includes
reallocation of resources, speed of processes’
execution, and building personnel capabilities andculture.
Signify’s attention to geopolitical and economic
developments (such as the polarization and tradeprotectionism) in medium-term operational
planning which supports global trade stabilization
and avoids supply chain disruption.

128.1; 8.2

8.1

Supplement 3: GRI content index
GRI Content Index 2021
SRS

Disclosure

Disclosure Requirements

Reference 2021 Annual
ReportGRI 102: General disclosures 2016
1. Organizational profile
102-1

Name of theorganization

a. Report the name of the organization.

10. Corporate governance

102-2

Activities, brands,
products, andservicesa. A description of the organization’s activities.
b. Primary brands, products, and services,
including an explanation of any products orservices that are banned in certain markets

3. Creating long-term value
4.1. Financial performance

102-3

Location of theorganization's
headquarters

a. Report the location of the organization’s
headquarters.

15. Signify N.V. financial statements

102-4

Number of countries
operatinga. Number of countries where the organization
operates, and the names of countries where it has
significant operations and/or that are relevant to
the topics covered in the report.

4.2 Sustainability performance
10.1 Signify organization

102-5

Nature of ownershipand legal forma. Report the nature of ownership and legal form.

10. Corporate governance

102-6

102-7

Markets served

Scale of thereportingorganization

a. Markets served, including:i. geographic locations where products andservices are offered;ii. sectors served; andiii. types of customers and beneficiaries.
a. Scale of the reporting organization, including:i. total number of employees;
ii. total number of operations;iii. net sales (for a private sector organization) or
net revenues (for a public-sector organization);
iv. total capitalization (for a private sector
organization), with a breakdown in terms of debt
and equity; andv. total number of units of products and services
sold or provided.

13

4.1. Financial performance
4.2 Sustainability performance

1. Performance highlights
14.6 Notes to corporate statement[3] Information by segment andmain country[4] Income from operations[12] Interest in entities[22] Equity

Information on
employees andother workers

The reporting organization shall report thefollowing information:a. Total number of employees by employment
contract (permanent and temporary), by gender.
b. Total number of employees by employment
contract (permanent and temporary), by region.
c. Total number of employees by employment
type (full-time and part-time), by gender.
d. Whether a significant portion of theorganization’s activities are performed byworkers who are not employees. If applicable, adescription of the nature and scale of work
performed by workers who are not employees.
e. Any significant variations in the numbers
reported in Disclosures 102-8-a, 102-8-b, and102-8-c (such as seasonal variations in the
tourism or agricultural industries).
f. An explanation of how the data have been
compiled, including any assumptions made.

14.6 Notes to corporate statement[4] Income from operations
16.3.1 Talent & Development
16.3.2 Diversity, equity & inclusion
2021 Sustainability Supplements - Datadefinitions, boundaries, and scope

Supply chain

a. A description of the organization’s supply
chain, including its main elements as they relate
to the organization’s activities, primary brands,
products, and services.

12.5 Operational risks
16.3.3 Human rights

102-10Significant changes
to the organizationand its supply chain

a. Significant changes to the organization’s size,
structure, ownership, or supply chain, including:i. Changes in the location of, or changes in,operations, including facility openings, closings,
and expansions;ii. Changes in the share capital structure andother capital formation, maintenance, andalteration operations (for private sector
organizations);iii. Changes in the location of suppliers, thestructure of the supply chain, or relationships
with suppliers, including selection andtermination.

14.4 Consolidated statements of cashflows
14.6 Notes to corporate statement[3] Information by segment and main
country[12] Interest in entities
2021 Sustainability Supplements - Datadefinitions, boundaries, and scope102-11

Precautionary
Principle orapproacha. Whether and how the reporting organization
applies the Precautionary Principle or approach.

12.1 Establish strong risk management
environment

102-12External initiatives

a. List of externally-developed economic,
environmental and social charters, principles, orother initiatives to which the reportingorganization subscribes or which it endorses.

16.1 Approach to sustainability reporting
16.1.1 Definition of Signify’s strategic
focus: our materiality assessment
16.3.3 Human rights

102-13

Memberships ofassociations

a. A list of the main memberships of industry orother associations, and national or international
advocacy organizations.

16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

102-14

Statement fromsenior decisionmakera. A statement from the most senior decisionmaker of the reporting organization (such as
CEO, chair, or equivalent senior position) about
the relevance of sustainability to the organizationand its strategy for addressing sustainability.

2. CEO Message

102-15Key impacts, risks,and opportunities

a. A description of key impacts, risks, andopportunities.

2. CEO Message
12. Risk factors and risk management

102-8

102-9

2. Strategy

14

3. Ethics and integrity
102-16

Values, principles,standards, andnorms of behavior

a. A description of the reporting organization’svalues, principles, standards, and norms of
behavior.

12.1 Establish strong risk management
environment
16.3.4 Acting with integrity

102-17

Mechanisms foradvice andconcerns about
ethicsa. A description of internal and externalmechanisms for:i. seeking advice about ethical and lawful
behavior, and organizational integrity; andii. reporting concerns about unethical andunlawful behavior, and organizational integrity.

12.1 Establish strong risk management
environment
16.3.5 Business ethics

6. Board of Management
7. Supervisory board
10. Corporate governance

10. Corporate governance16.1.2 Sustainability governance

4. Governance102-18Governancestructurea. Governance structure of the reportingorganization, including committees of the highest
governance body.
b. Committees responsible for decision-making
on economic, environmental, and social impacts.

102-19Delegation of
authoritya. Process for delegating authority for economic,
environmental, and social impacts from thehighest governance body to senior executives
and other employees

102-20Executive-level
responsibility foreconomic,
environmental andsocial topics

102-21

Consulting
stakeholders on
economic,
environmental, andsocial topics

102-22Composition of thehighestgovernance bodyand its committees

102-23Chair of thehighestgovernance body102-24

Nomination andselection thehighestgovernance bodya. Whether the reporting organization has
appointed an executive-level position or
positions with responsibility for economic,
environmental and social topics.
b. Whether post holders report directly to thehighest governance body.
a. Processes for consultation between
stakeholders and the highest governance bodyon economic, environmental and social topics.
b. If consultation is delegated, describe to whomand any feedback processes to the highest
governance body.
a. Composition of the highest governance bodyand its committees by:i. executive or non-executive;ii. independence;iii. tenure on the governance body;iv. number of each individual’s other significant
positions and commitments, and the nature of thecommitments;
v. gender;
vi. membership of under-represented socialgroups;vii. competences relating to economic,
environmental and social impacts; andviii. stakeholder representation.
a. Whether the chair of the highest governancebody is also an executive officer in the reportingorganization.
b. If the chair is also an executive officer,
describe his or her function within the reportingorganization’s management and the reasons forthis arrangement.
a. Nomination and selection processes for thehighest governance body and its committees.
b. Criteria used for nominating and selecting
highest governance body members, including
whether and how:i. stakeholders (including shareholders) are
involved;
ii. diversity is considered;iii. independence is considered; and15

16.1.2 Sustainability governance11.3 Annual general meeting ofshareholders
11.1 Shareholder engagement
16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

6. Board of Management
7. Supervisory board
10. Corporate governance10.2 Board of management

8. Supervisory board report
10.2 Board of management
10.3 Supervisory board

102-25

102-26102-27102-28102-29iv. expertise and experience relating toeconomic, environmental, and social topics are
considered.
a. Processes for the highest governance body toensure conflicts of interest are avoided andmanaged.
b. Whether conflicts of interest are disclosed to
stakeholders, including, as a minimum:
Conflicts ofi. cross-board membership;
interest
ii. cross-shareholding with suppliers and otherstakeholders;iii. existence of controlling shareholder; andiv. related party disclosures.
a. Highest governance body’s and senior
Role of highest
executives’ roles in the development, approval,
governance body in and updating of the organization’s purpose, value
setting purpose,or mission statements, strategies, policies, andvalues and strategy goals related to economic, environmental, andsocial topics.
Collective
a. Measures taken to develop and enhance theknowledge ofhighest governance body’s collective knowledge
highestof economic, environmental, and social topics.
governance bodya. Processes for evaluation of the highest
governance body’s performance with respect togovernance of economic, environmental, andsocial topics.
b. Whether such evaluation is independent or not,Evaluating theand its frequency.
highestc. Whether such evaluation is a self-assessment.
governance body’sd. Actions taken in response to evaluation of theperformancehighest governance body’s performance withrespect to governance of economic,
environmental, and social topics, including, as aminimum, changes in membership andorganizational practice.
a. Highest governance body’s role in identifying
and managing economic, environmental, andsocial impacts, risks, and opportunities –Identifying andincluding its role in implementing the due
managing
diligence processes.
economic,b. Whether stakeholder consultation is used toenvironmental, andsupport the highest governance body’ssocial impacts
identification and management of economic,
environmental, and social impacts, risks, andopportunities.

10.2 Board of management
10.3 Supervisory board

8. Supervisory board report
10.2 Board of management
10.3 Supervisory board
10.4 General meeting of shareholders
16.1.1 Definition of Signify’s strategic
focus: our materiality assessment
8. Supervisory board report
9.2.5 Long-term equity-based incentive

9.2.5 Long-term equity-based incentive
12.1 Our approach to risk management
and business control
8 Supervisory board report
10.2 Board of management
10.3 Supervisory board
16.1.2 Sustainability governance12.1 Establish strong risk management
environment
8. Supervisory board report
10.2 Board of management
10.3 Supervisory board
16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

102-30Effectiveness ofrisk management
processes

a. Highest governance body’s role in reviewing
the effectiveness of the reporting organization’srisk management processes for economic,
environmental, and social topics.

12.1 Establish strong risk management
environment
8. Supervisory board report
10.2 Board of management
16.1.2 Sustainability governance102-31

Review of
economic,
environmental, andsocial impacts

Frequency of the highest governance body’s
review of economic, environmental and social
impacts, risks, and opportunities.

12.1 Establish strong risk management
environment
8. Supervisory board report
10.2 Board of management
16.1.2 Sustainability governance102-32Highestgovernance body’srole insustainability
reporting

The highest committee or position that formallyreviews and approves the reportingorganization’s sustainability report and ensuresthat all material topics are covered.

8. Supervisory board report
16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

102-33

Communicating
critical concerns

12.1 Establish strong risk managementa. Process for communicating critical concerns to environment
the highest governance body.
10.2 Board of management
16.3.5 Business ethics

16

Nature and total
number of criticalconcerns

a. Total number and nature of critical concernsthat were communicated to the highest
governance body.
b. Mechanism(s) used to address and resolve
critical concerns

16.3.5 Business ethics

Remuneration
policies

a. Remuneration policies for the highest
governance body and senior executives for thefollowing types of remuneration, if used:
i. fixed pay and variable pay, including
performance-based pay, equity-based pay,bonuses, and deferred or vested shares;
ii. sign-on bonuses or recruitment incentive
payments;
iii. termination payments;
iv. claw backs; andv. retirement benefits, including the difference
between benefit schemes and contribution rates
for the highest governance body, senior
executives, and all other employees.
b. How performance criteria in the remuneration
policies relate to the highest governance body’s
and senior executives’ objectives for economic,
environmental, and social topics.

9. Remuneration report
10.2 Board of Management,
Remuneration

102-36

Process fordetermining
remunerationa. Process for determining remuneration.
b. Whether and how remuneration consultants
are involved in determining remuneration andwhether they are independent of management.
c. Any other relationships that the remuneration
consultants have with the reporting organization.

9. Remuneration report
10.2 Board of management
10.3 Supervisory board, Remunerationcommittee

102-37

Stakeholders’involvement inremunerationa. How stakeholders’ views are sought and taken
into account regarding remuneration.
b. If applicable, the results of votes on
remuneration policies and proposals.

10.2 Board of management
10.4 General meeting of shareholders

102-34102-35a. Ratio of the annual total compensation for thereporting organization’s highest-paid individual ineach country of significant operations to themedian annual total compensation for all
employees (excluding the highest-paid individual)
in the same country.

102-38Annual totalcompensation ratio

Clause 4.4 When compiling the information
specified in Disclosure 102-38, the reportingorganization shall, for each country of significant
operations:4.4.1 identify the highest-paid individual for thereporting period, as defined by totalcompensation;
4.4.2 calculate the median annual totalcompensation for all employees, except thehighest paid individual;
4.4.3 calculate the ratio of the annual totalcompensation of the highest-paid individual tothe median annual total compensation for all
employees.

17

Signify does not consider this indicator
relevant. Signify makes an impact on
local communities by the salaries it pays
to its employees. Salaries are based on
industry norms as described in ourIntegrity code.

102-39

Percentage
increase in annual
total compensation
ratio

a. Ratio of the percentage increase in annual
total compensation for the reportingorganization’s highest-paid individual in eachcountry of significant operations to the medianpercentage increase in annual totalcompensation for all employees (excluding thehighest-paid individual) in the same country.

Signify does not consider this indicator
relevant. Signify makes an impact on
local communities by the salaries it pays
to its employees. Salaries are based on
industry norms as described in ourIntegrity code.

5. Stakeholder Engagement102-40

List of stakeholder
groupsa. A list of stakeholder groups engaged by thereporting organization.

16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

102-41

Collective
bargaining
agreements

a. Percentage of total employees covered bycollective bargaining agreements.

76 %102-42

Identifying andselectingstakeholdersa. The basis for identifying and selecting
stakeholders with whom to engage.

16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

102-43

Approach to
stakeholder
engagement102-44

Key topics andconcerns raised

a. The organization’s approach to stakeholder
engagement, including frequency of engagementby type and by stakeholder group, and an
indication of whether any of the engagement wasundertaken specifically as part of the report
preparation process.
a. Key topics and concerns that have been raised
through stakeholder engagement, including:i. how the reporting organization has responded
to those key topics and concerns; andii. the stakeholder groups that raised each of the
key topics and concerns.

16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

6. Reporting practice102-45

Entities included in
the consolidated
financialstatements

102-46

Defining reportcontent and topic
Boundaries

a. A list of all entities included in the reportingorganization’s consolidated financial statements
or equivalent documents.
b. Whether any entity included in the reportingorganization’s consolidated financial statements
or equivalent documents is not covered by thereport.
a. An explanation of the process for defining thereport content and the topic Boundaries.
b. An explanation of how the reportingorganization has implemented the Reporting
Principles for defining report content.
Clause 6.1 When compiling the information
specified in Disclosure 102-46, the reportingorganization shall include an explanation of how
the Materiality principle was applied to identify
material topics, including any assumptions made.

14.6 Corporate statement[3] Information by segment and main
country[12] Interest in entities

16.1.1 Definition of Signify’s strategic
focus: our materiality assessment
2021 Sustainability Supplements - Datadefinitions, boundaries, and scope

102-47

List of material
topicsa. A list of material topics identified in theprocess for defining report content.

16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

102-48

Restatements of
informationa. The effect of any restatements of information
provided in previous reports, and the reasons forsuch restatements.

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

102-49Changes inreportingSignificant changes from previous reporting
periods in the list of material topics included in
the report and topic boundaries.

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.1.1 Definition of Signify’s strategic
focus: our materiality assessment

102-50

Reporting Period

a. Reporting period for information provided.

January 1 – December 31 2021

9102-51

Date of mostrecent reporta. If applicable, the date of the most recent
previous report.

February 23, 202118

102-52

Reporting cycle

a. Reporting cycle.

Yearly102-53

Contact point forquestionsregarding thereporta. The contact point for questions regarding thereport or its contents.

11.1 Shareholder engagement

Claims of reportingin accordance with
the GRI Standards

a. The ‘in accordance’ claim made by thereporting organization about its use of the GRI
Standards, either:i. ‘This report has been prepared in accordancewith the GRI Standards: core option’; orii. ‘This report has been prepared in accordancewith the GRI Standards: comprehensive option’.

This report has been prepared inaccordance with the GRI Standards:
Comprehensive option

102-54a. The content index for the report, which
specifies each of the GRI Standards used toprepare the report and lists all relevant
disclosures.
b. For each disclosure, the content index shall
include:i. the number of the disclosure;ii. the page number(s) or URL(s) where theinformation for each disclosure can be found,either within the report or in another publishedmaterial; andiii. if applicable, and where permitted, thereason(s) for omission when a required disclosure
cannot be made.
102-55

GRI content index

GRI Content Index 2021
6.3.1 include the words ‘GRI Content Index’ in thetitle;
6.3.2 present the complete GRI content index in
one location;
6.3.3 include in the report a link or reference to
the GRI content index, if it is not provided in thereport itself;
6.3.4 for each GRI Standard used, include thetitle and publication year (e.g., GRI 102: General
Disclosures 2016);
6.3.5 include any additional material topics
reported on which are not covered by the GRI
Standards, including page number(s) or URL(s)where the information can be found.

102-56External assurance

a. A description of the organization’s policy andcurrent practice with regard to seeking external
assurance for the report.
b. If the report has been externally assured:i. A reference to the external assurance report,
statements, or opinions. If not included in theassurance report accompanying the sustainability
report, a description of what has and what has
not been assured and on what basis, including theassurance standards used, the level of assurance
obtained, and any limitations of the assurance
process;ii. The relationship between the organization andthe assurance provider;iii. Whether and how the highest governance bodyor senior executives are involved in seeking
external assurance for the organization’ssustainability report.

19

16.1.1 Definition of Signify’s strategic
focus: our materiality assessment
17 Combined independent auditor’sreportGRI 103: Management approach 2016

103-1

Explanation of thematerial topic andits Boundary

103-2

The management
approach and its
components

103-3

Evaluation of the
management
approach

For each material topic, the reportingorganization shall report the following information:a. An explanation of why the topic is material.
b. The Boundary for the material topic, which
includes a description of:i. where the impacts occur;ii. the organization’s involvement with the impacts.
For example, whether the organization has caused
or contributed to the impacts or is directly linked
to the impacts through its business relationships.
c. Any specific limitation regarding the topic
Boundary.

2. CEO Message
3.2 Our impact
12.5 Key risks
16.1.1 Definition of Signify’s strategic
focus: our materiality assessment
2021 Sustainability Supplements - Datadefinitions, boundaries, and scope

Clause 1.1 If management approach disclosures
are combined for a group of material topics, thereporting organization shall state which topics arecovered by each disclosure.
For each material topic, the reportingorganization shall report the following information:a. An explanation of how the organization manages
the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the
management approach includes that component:i. Policies, ii. Commitments, iii. Goals and targets,
iv. Responsibilities, v. Resources, vi. Grievance16.1.1 Definition of Signify’s strategic
mechanisms, vii. Specifc actions, such as
focus: our materiality assessment
processes, projects, programs and initiatives
2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
Clause 1.1 If management approach disclosures
16.4 Better Worldare combined for a group of material topics, thereporting organization shall state which topics arecovered by each disclosure.
Clause 1.2 If there is no management approach fora material topic, the reporting organization shalldescribe:
1.2.1 any plans to implement a management
approach; or
1.2.2 the reasons for not having a management
approach.
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectivenessof the management approach;ii. the results of the evaluation of the management
approach; andiii. any related adjustments to the management
9.2.5 Long-term equity-based
approach.
incentive
16.1.1 Definition of Signify’s strategic
Clause 1.1 If management approach disclosures
focus: our materiality assessment
are combined for a group of material topics, the16.1.2 Sustainability governancereporting organization shall state which topics are
16.1.4 Reporting Standards
covered by each disclosure.
16.4 Better World
Clause 1.2 If there is no management approach fora material topic, the reporting organization shalldescribe:
1.2.1 any plans to implement a management
approach; or
1.2.2 the reasons for not having a management
approach.

20Topic Specific Standards: Most material topics on which Signify reports according to GRI Standards
Climate action
GRI 302: Energy 2016

302-1

Energyconsumption
within theorganization

302-2

Energyconsumption
outside of theorganization

302-3

Energy intensity

302-4

Reduction ofenergyconsumption

The reporting organization shall report thefollowing information:a. Total fuel consumption within the organizationfrom non-renewable sources, in joules ormultiples, and including fuel types used.
b. Total fuel consumption within the organizationfrom renewable sources, in joules or multiples, andincluding fuel types used.
c. In joules, watt-hours or multiples, the total:
i. electricity consumption
ii. heating consumptioniii. cooling consumption
iv. steam consumption
d. In joules, watt-hours or multiples, the total:
i. electricity soldii. heating soldiii. cooling soldiv. steam solde. Total energy consumption within theorganization, in joules or multiples.
f. Standards, methodologies, assumptions, and/or
calculation tools used.
g. Source of the conversion factors used.
The reporting organization shall report thefollowing information:a. Energy consumption outside of the organization,in joules or multiples.
b. Standards, methodologies, assumptions, and/or
calculation tools used.
c. Source of the conversion factors used.
The reporting organization shall report thefollowing information:a. Energy intensity ratio for the organization.
b. Organization-specific metric (the denominator)
chosen to calculate the ratio.
c. Types of energy included in the intensity ratio;
whether fuel, electricity, heating, cooling, steam,or all.
d. Whether the ratio uses energy consumption
within the organization, outside of it, or both.
The reporting organization shall report thefollowing information:a. Amount of reductions in energy consumption
achieved as a direct result of conservation andefficiency initiatives, in joules or multiples.
b. Types of energy included in the reductions;
whether fuel, electricity, heating, cooling, steam,or all.
c. Basis for calculating reductions in energy
consumption, such as base year or baseline,
including the rationale for choosing it.
d. Standards, methodologies, assumptions, and/or
calculation tools used.

21

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

302-5

Reductions inenergyrequirements ofproducts andservices

The reporting organization shall report thefollowing information:
a. Reductions in energy requirements of soldproducts and services achieved during thereporting period, in joules or multiples.
b. Basis for calculating reductions in energy
consumption, such as base year or baseline,
including the rationale for choosing it.
c. Standards, methodologies, assumptions, and/or
calculation tools used.

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

GRI 305: Emissions 2016

305-1

Direct (Scope 1)
GHG emissions

305-2

Energy indirect(Scope 2) GHG
emissions

The reporting organization shall report thefollowing information:a. Gross direct (Scope 1) GHG emissions in metrictons of CO2 equivalent.
b. Gases included in the calculation; whether CO2,
CH4, N2O, HFCs, PFCs, SF6, NF3, or all.
c. Biogenic CO2emissions in metric tons of CO2equivalent.
d. Base year for the calculation, if applicable,
including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes inemissions that triggered recalculations of baseyear emissions.
e. Source of the emission factors and the global
warming potential (GWP) rates used, or areference to the GWP source.
f. Consolidation approach for emissions; whether
equity share, financial control, or operational
control.
g. Standards, methodologies, assumptions, and/or
calculation tools used.
The reporting organization shall report thefollowing information:a. Gross location-based energy indirect (Scope 2)
GHG emissions in metric tons of CO2equivalent.
b. If applicable, gross market-based energy
indirect (Scope 2) GHG emissions in metric tons ofCO2equivalent.
c. If available, the gases included in the calculation;
whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or
all.
d. Base year for the calculation, if applicable,
including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes inemissions that triggered recalculations of baseyear emissions.
e. Source of the emission factors and the global
warming potential (GWP) rates used, or areference to the GWP source.
f. Consolidation approach for emissions; whether
equity share, financial control, or operational
control.
g. Standards, methodologies, assumptions, and/or
calculation tools used.

222021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

305-3

Other indirect(Scope 3) GHG
emissions305-4

GHG emissions
intensity

305-5

Reduction of GHG
emissions305-6

Emissions ofozone-depleting
substances (ODS)

305-7

Nitrogen oxides(NOX), sulfur
oxides (SOX), andother significant
air emissions

The reporting organization shall report thefollowing information:a. Gross other indirect (Scope 3) GHG emissions inmetric tons of CO2 equivalent.
b. If available, the gases included in thecalculation; whether CO2, CH4, N2O, HFCs, PFCs,
SF6, NF3, or all.
c. Biogenic CO2emissions in metric tons ofCO2equivalent.
d. Other indirect (Scope 3) GHG emissions
categories and activities included in thecalculation.
e. Base year for the calculation, if applicable,
including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes inemissions that triggered recalculations of baseyear emissions.
f. Source of the emission factors and the global
warming potential (GWP) rates used, or areference to the GWP source.
g. Standards, methodologies, assumptions, and/or
calculation tools used.
The reporting organization shall report thefollowing information:a. GHG emissions intensity ratio for theorganization.
b. Organization-specific metric (the denominator)
chosen to calculate the ratio.
c. Types of GHG emissions included in the intensity
ratio; whether direct (Scope 1), energy indirect(Scope 2), and/or other indirect (Scope 3).
d. Gases included in the calculation; whether CO2,
CH4, N2O, HFCs, PFCs, SF6, NF3 or all.
The reporting organization shall report thefollowing information:a. GHG emissions reduced as a direct result of
reduction initiatives, in metric tons of CO2
equivalent.
b. Gases included in the calculation; whether CO2,
CH4, N2O, HFCs, PFCs, SF6, NF3 or all.
c. Base year or baseline, including the rationale forchoosing it.
d. Scopes in which reductions took place; whether
direct (Scope 1), energy indirect (Scope 2), and/or
other indirect (Scope 3).
e. Standards, methodologies, assumptions, and/or
calculation tools used.
The reporting organization shall report thefollowing information:a. Production, imports, and exports of ODS in
metric tons of CFC-11 (trichlorofluoromethane)equivalent.
b. Substances included in the calculation.
c. Source of the emission factors used.
d. Standards, methodologies, assumptions, and/or
calculation tools used.
The reporting organization shall report thefollowing information:a. Significant air emissions, in kilograms or
multiples, for each of the following:i. NOX
ii. SOX
iii. Persistent organic pollutants (POP)iv. Volatile organic compounds (VOC)

232021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.4.1 Climate action

Emissions from ODS are at non-material
levels for Signify.

Emissions from NOX and SOX are at nonmaterial levels for Signify.

v. Hazardous air pollutants (HAP)vi. Particulate matter (PM)vii. Other standard categories of air emissions
identified in relevant regulations
b. Source of the emission factors used.
c. Standards, methodologies, assumptions, and/or
calculation tools used.
Human rights (operations and supply chain)
GRI 406: Non-discrimination 2016406-1

Incidents of
discriminationand corrective
actions taken

The reporting organization shall report thefollowing information:a. Total number of incidents of discrimination
during the reporting period.
b. Status of the incidents and actions taken withreference to the following:i. Incident reviewed by the organization;
ii. Remediation plans being implemented;
iii. Remediation plans that have been implemented,
with results reviewed through routine internalmanagement review processes;
iv. Incident no longer subject to action.

This topic is covered under the Signify
Integrity code and the Supplier
Sustainability Declaration, our code of
conduct for suppliers.
12.1 Establish strong risk management
environment – Signify Integrity code
2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.3.3 Human rights
16.3.5 Business ethics

GRI 407: Freedom of association and collective bargaining 2016

407-1

Operations andsuppliers in which
the right tofreedom of
association andcollective
bargaining may be
at risk

The reporting organization shall report thefollowing information:a. Operations and suppliers in which workers’
rights to exercise freedom of association orcollective bargaining may be violated or atsignificant risk either in terms of:i. type of operation (such as manufacturing plant)
and supplier;ii. countries or geographic areas with operations
and suppliers considered at risk.
b. Measures taken by the organization in thereporting period intended to support rights toexercise freedom of association and collective
bargaining.

This topic is covered under the Signify
Integrity code and the Supplier
Sustainability Declaration, our code of
conduct for suppliers.
12.1 Establish strong risk management
environment – Signify Integrity code
2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.3.3 Human rights
16.3.5 Business ethics

GRI 408: Child labor 2016

408-1

Operations andsuppliers at
significant risk forincidents of childlabor

The reporting organization shall report thefollowing information:a. Operations and suppliers considered to havesignificant risk for incidents of:i. child labor;
ii. young workers exposed to hazardous work.
b. Operations and suppliers considered to havesignificant risk for incidents of child labor either interms of:i. type of operation (such as manufacturing plant)
and supplier;ii. countries or geographic areas with operations
and suppliers considered at risk.
c. Measures taken by the organization in thereporting period intended to contribute to theeffective abolition of child labor.

24

This topic is covered under the Signify
Integrity code and the Supplier
Sustainability Declaration, our code of
conduct for suppliers.
12.1 Establish strong risk management
environment – Signify Integrity code
2021 Sustainability Supplements - Datadefinitions, boundaries, and scope
16.3.3 Human rights
16.3.5 Business ethics

GRI 412: Human rights assessment 2016

Operations thathave been subject
to human rights
reviews or impact
assessments

The reporting organization shall report thefollowing information:a. Total number and percentage of operations
that have been subject to human rights reviews
or human rights impact assessments, bycountry.

412-2

Employee training
on human rights
policies orprocedures

The reporting organization shall report thefollowing information:a. Total number of hours in the reporting period
devoted to training on human rights policies orprocedures concerning aspects of human rightsthat are relevant to operations.
b. Percentage of employees trained during thereporting period in human rights policies orprocedures concerning aspects of human rightsthat are relevant to operations.

412-3

Significant
investment
agreements andcontracts that
include humanrights clauses orthat underwent
human rights
screening

The reporting organization shall report thefollowing information:a. Total number and percentage of significant
investment agreements and contracts that
include human rights clauses or that underwent
human rights screening.
b. The definition used for “significant investment
agreements”.

412-1

This topic is covered under the Signify
Integrity code and the Supplier
Sustainability Declaration, our code of
conduct for suppliers.
12.1 Establish strong risk management
environment – Signify Integrity code
2021 Sustainability Supplements Data definitions, boundaries, andscope
16.3.3 Human rights
16.3.5 Business ethics
This topic is covered under the Signify
Integrity code and the Supplier
Sustainability Declaration, our code of
conduct for suppliers.
12.1 Establish strong risk management
environment – Signify Integrity code
2021 Sustainability Supplements Data definitions, boundaries, andscope
16.3.3 Human rights
16.3.5 Business ethics
This topic is covered under the Signify
Integrity code and the Supplier
Sustainability Declaration, our code of
conduct for suppliers.
12.1 Establish strong risk management
environment – Signify Integrity code
2021 Sustainability Supplements Data definitions, boundaries, andscope
16.3.3 Human rights
16.3.5 Business ethics

Annex to the GRI Content Index 2021:
Supplement to GRI Standard 102-8:

Contract type by gender in % 2021
FemaleMale

Permanent

Temporary

97%
98%

3%
2%

Contract type by geography in % 2021
EuropeAmericasRest of the world

Permanent
94%
100%
99%

Temporary
6%0%
1%

Full-timePart-time

97%
99%

3%
1%

Time schedules by gender in % 2021
FemaleMale

25

GRI Standard 401 -1: Turnover rate breakdown 2021

Turnover rate by management level as % of total employee base
Staff
Professional
Mid-Level professional
Senior-level professional
Leadership

Percentage (0-100%)
45.4%
6.6%
1.7%
0.5%
0.1%

Turnover rate by gender
FemaleMale
Not declared

Percentage (0-100%)
47.8%
52.2%
0%

Turnover rate by age group
Under 30

Percentage (0-100%)
48.5%

30 – 50
Over 50

43.3%
8.2%

GRI Standard 405 -1: 2021 Workforce gender breakdown 2021

Share of women in total workforce (as % of total workforce)
Share of women in all management positions, including junior,middle and top management (as % of total management positions)Share of women in junior management positions, i.e. first level ofmanagement (as % of total junior management positions)Share of women in top management positions, i.e. maximum twolevels away from the CEO or comparable positions (as % of total
top management positions)Share of women in management positions in revenue-generating
functions (e.g. sales) as % of all such managers (i.e. excluding
support functions such as HR, IT, Legal, etc.)
Share of women in STEM-related positions (as % of total STEM
positions)26

Percentage (0-100%)
40%
24%
29%
25%

18%
42%

GRI Standard 415-1: Public policy
Signify actively engages with governmental organizations, emphasizing the environmental and socioeconomic
benefits of energy efficiency, the potential of connected LED lighting and joining public debates addressing
sustainability issues. We share updates on initiatives and developments in this area on our website and in our
Press Releases.
As formalized in our Integrity Code, Signify adopted a policy of prohibition of contributions, in money or in
kind, to political parties, political organizations or individuals engaged in politics. Signify takes part in industry
associations and coalitions for sustainable growth and we share our contributions. The total contributions
and expenditures amounted EUR 3.42 million in 2021.
Type of tradeorganization

Geographic
scope

Spend (€ millions)

Industry associations

Global

2.52

Coalitions for sustainablegrowthGlobal0.9

Political contributions

Global0

Focus of membership(non-exhaustive)
Sustainable innovation in theindustry, climate action,scaling up action on the UN
SDGs, common standards.
Carbon pricing, sustainable
cities, standards for impact
measurement, UN SDG
contribution.

The largest contributions and expenditures are made by Signify to:a) The National Electrical Manufacturers Association ‘NEMA’ to develop performance standards andpromote product interoperability to increase market demand, while improving safety to mitigate
risks (EUR 0.47 million).
b) World Economic Forum which engages the foremost political, business, cultural and other leadersof society to shape global, regional and industry agendas (EUR 0.29 million).
c) Syndicat de l'Eclairage to engage on standards in light technology (EUR 0.2 million).

As Signify we address the following main issues with the contributions and expenditures:•
Signify considers climate change an important focus area with, in addition to the move towards
renewable energy, also an emphasis on energy efficiency and becoming carbon neutral (total ofcontributions and expenditures of EUR 0.43 million).
•
Within our industry we engage with associations to develop uniform standards in lighting technology
and connectivity (total of contributions and expenditures of EUR 0.45 million).

27

Supplement 4: Task Force on Climate-related
Financial Disclosures (TCFD)
Governance(a) Board’s oversight of climate-related risks and opportunities
The Supervisory Board, Signify’s highest governance body, reviews our approach to combat climate change
as well as our 2021 materiality assessment, which shows that climate action is our most material topic.
Understanding and managing climate-related risks and opportunities are an important part of ourcommitment to action on climate change.
At Signify, climate-related risks and opportunities are governed by the Board of Management (BoM),
consisting of our Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Commercial Officer(CCO). Every quarter, Signify's BoM reviews climate-relate issues of strategic importance together with ourChief Strategy and Sustainability Officer (CSO), including material items, action plans, risk management plans,sustainability budget, and investment in climate-related opportunities. The BoM guides the performance andoversees the progress against targets and commitments set out in our sustainability program, including theones addressing climate-related issues.
Signify's Leadership Team, including our BoM, are incentivized via Long-Term Incentives (LTI). Because of theimportance of sustainability for our long-term value creation, the vesting of 25% of the annual long-term
incentive grant is dependent on how well Signify performs on its sustainability targets, including the targets
related to climate action.

References:•
Section 8 - Supervisory Board report of the 2021 Annual Report•
Section 16.1.2 Sustainability Governance of the 2021 Annual Report•
Signify CDP Climate reporting(b) Management’s role in assessing and managing climate-related risks and opportunities
Climate-related risks and opportunities are managed the same way as other risks. Signify’s BoM is
responsible for the overall risk management associated with the company's activities. It is assisted by thecompany leadership team, which participates on a quarterly basis in audit risk and control meetings organizedby the Risk Committee, to identify critical risks and review progress on the implementation of risk responses,
including climate-related risks.
Sustainability is at the core of our strategy and purpose. The executive responsibility for climate-related
issues is assigned to our Chief Strategy and Sustainability Officer (CSO), to ensure the strong linkage andsynergy between the company’s strategy and sustainability commitments, as well as to drive Signify's
performance in the space of Climate action. Our CSO oversees strategy setting, sustainability budget, andmajor plans of action regarding climate change. Our CSO reports directly to our CEO and addresses climaterelated issues regularly to the BoM in case of major capital expenditures, acquisitions, and divestitures.
Signify’s CSO oversees a multi-discipline Climate Risk Assessment Taskforce team, consisting of experts in
Operations, Insurance, Risk Committee, Internal Audit, Sustainability, and Environment, health & safety. The
Taskforce team is responsible for the continuous evaluation the company’s short-term and long-termclimate-related risks and opportunities. This, as part of Signify’s integral risk management and business
control, contributes to maximizing climate-related opportunities and improving our resilience to climatechange.
Additionally, Signify's top 700 managers are incentivized via Long-Term Incentives (LTI). Because of theimportance of sustainability for our long-term value creation, the vesting of 25% of the annual long-term
incentive grant is dependent on how well Signify performs on its sustainability targets, including the targets
related to climate action.

28

References:•
Section 12.1 - Establish strong risk management environment of the 2021 Annual Report•
Sections 16.1.2 Sustainability Governance of the 2021 Annual Report•
Signify CDP Climate reporting

Risk Management(a) Signify’s processes for identifying and assessing climate-related risks
The potentially significant impacts of climate change pose a challenge to the stability and continuity ofbusinesses over the short, medium, and long terms. With a global footprint, Signify’s manufacturing sites andsupply chain are exposed to these physical and transition risks related to climate change. On the other hand,
the transition to a lower-carbon economy presents climate related opportunities for Signify’s sustainablegrowth areas based on low-carbon technological innovation: (1) Climate action, (2) Circular economy, (3)Food availability, (4) Safety & security, and (5) Health & wellbeing.
Driven by the perceived high magnitude of financial impacts attributed to climate risks, the assessment ofclimate risks becomes imperative and future-prove. Disclosing climate-related physical and transition risks
showcases long-term business sustainability. As a leader in sustainability, Signify is committed to improving
its global operations and reducing its emissions over the entire value chain. This includes understanding therisks posed by climate change and how to improve business resilience accordingly. Therefore, it is paramountto assess the potential impacts of climate related risks and opportunities on our business operations andfinancial performance under different scenarios. Signify seeks to maintain an evolving overview of these risks
and opportunities over time.
Following the Task Force on Climate related Financial Disclosures (TCFD) recommendations and guidance,
Signify has been conducting an ongoing climate risk assessment in line with the four core elements ofoperations, namely governance, strategy, risk management, and metrics and targets.
In 2020, Signify launched a dedicated multi-discipline Climate Risk Assessment Taskforce, consisting ofexperts in Operations, Insurance, Risk Committee, Internal Audit, Sustainability, and EHS. The Taskforce is
responsible for the continuous evaluation the company’s short-term and long-term climate-related physicaland transition risks and opportunities, as illustrated in Figure A. We are proactively investigating how physicaland transition risks affect our global operations. In response to these identified risks and opportunities, wedevelop risk adaptation and mitigation strategies that enhance our operational resilience, risk management,
and financial planning.

29

Figure A Signify’s climate risk assessment approach
Physical risks
Climate-related physical risks are assessed under difference climate change scenarios, namely a short-term
scenario, and two long-term scenarios in line with the Shared Socio-economic Pathways (SSP) described in
the IPCC AR6 report: a below 2°C or SSP1-2.6 scenario – taking the sustainable road, and an above 4°C or
SSP5-8.5 scenario – fossil fueled development path. The SSPs are narratives describing alternative socioeconomic trends that shape future scenarios. In line with the lates climate sciences, the SSPs explore theclimate responses of a range of possible future atmosphere GHG concentrations and analyze the resulting
changes in future global temperatures compared to pre-industrial levels.
The physical risk assessment approach consists of three steps: risk mapping, risk assessment, and risk
mitigation. Signify continues to monitor its exposure to physical risks related to climate change and is working
at individual plant level to reduce and mitigate the impacts of those risks. The first step is risk mapping for all
our manufacturing facilities and warehouses/distribution centers under different IPCC climate change
scenarios. Site risk mapping identifies, among others, physical risks related to climate hazards, such as
flooding, heatwaves, droughts, etc. Subsequently, a risk assessment is performed depending on thegeographical location, the type of activity, and financial exposure related to a specific facility and/or
operation. We evaluate the environmental, social, and governance aspects which have the greatest impact
on our business and the greatest level of concern to stakeholders along our value chain. These direct orindirect aspects may represent opportunities and risks, and thus influence our ability to create or preserve
economic, environmental, and social value for our stakeholders and for Signify. Assessing these aspects
enables us to understand their implications in financial and non-financial terms, thereby prioritizing risk
mitigation and effectively addressing them in our policies and programs.
Transition risks
Climate-related transition risks are assessed the same as other risks. The Climate Risk Assessment
Taskforce continuously follows external trends of market, policy, regulations, (low carbon) technology, andcustomer preference, in order to identify near-term, medium-term, and long-term transition risks in line with
the IEA scenarios including the IEA 2 degrees scenario. Signify's BoM is briefed each quarter to review thetransition risks and opportunities, and the short, medium, and long-term response strategies are addressed
as well.

30

References:•
Chapter 12 of the 2021 Annual Report•
Signify CDP Climate reporting(b) Signify’s processes for managing climate-related risks and,(c) Integration of processes for identifying, assessing, and managing climate-related risks are into the
Signify’s overall risk management
Climate-related risks and opportunities are managed the same way as other risks. Signify's risk management
focuses on the following risk categories: Strategic, Operational, Compliance, and Financial risks. As climaterelated risks cuts across all these four categories, climate-related risk management is fully embedded in ourrisk management process and recognized at the management level.
Signify’s Business Control Framework (BCF) sets the standard for risk management and business controls in
the company. The objectives of the BCF are to maintain integrated management control of the company’s
operations, in order to ensure the integrity of the financial reporting and related disclosure including
disclosure of climate-related risks, as well as compliance with applicable laws and regulations. We regularly
evaluate and improve our BCF to align with business dynamics and good practice. Our leadership team is
responsible for identifying the critical business risks and for implementing appropriate risk responses. We
continuously follow external trends to determine the issues most relevant for our company and where we
can have the greatest positive impact.
For risk management, a comprehensive view of the company’s business strategy and activities is required.
To do so, Signify’s risks and opportunities are identified, assessed, managed, and controlled in a structured
way, combining elements of top-down and bottom-up approaches.
For climate-related strategic risks, the company’s leadership team reviews the risks and ranks them basedon impact, likelihood, risk criticality and control effectiveness, during the annual risk workshop. Owners are
assigned and accountable for ensuring that adequate risk mitigation and monitoring measures are
implemented. The outcome of the risk workshop is integrated in the strategic planning cycle. Each quarterthe key risks are discussed during the audit and risk committee meetings. Reported risks and opportunities
are analyzed for potential cumulative effects and are aggregated at Division, Market Group, and company
level.
Climate-related operational risks are reviewed on a regular basis as part of the business performance
reviews or, for specific topics, through dedicated risk committees. In addition, on an annual basis the top
risks are identified by company leadership. Relevant risks including those associated with business
opportunities are prioritized in terms of potential impact and likelihood, considering quantitative and/or
qualitative aspects and reviewed with the Board of Management. On a quarterly basis, risks and controls arereviewed in the audit risk committees with the Divisions, Market Groups and specific Functions. As part ofthe Business Continuity plan, we continue monitoring our exposure to climate-related risks and are working
at individual plant level to mitigate and minimize the impact of those risks.
For climate-related compliance risks, we continuously follow external trends, especially the development ofregulations and policies focusing on the product environmental impact and transition to a net-zero economy,
and other emerging discussion in the same area. Potential risks of non-compliance are regularly reviewed
within Signify at regional, Division, or company level. This ensures our preparedness against emerging
regulations and policies and ability to adjust our portfolio.
For climate-related financial risks, since 2020, the Climate Risk Assessment Taskforce has been screening
and evaluating relevant climate-related risks and their financial impacts in detail for our sites all over theworld. These risks are reviewed at least once per year at individual plant, regional, Division and Function, or
company level. This improves our resilience to climate-related risks and allows risk responseplans/strategies to be developed in a timely matter.

References:•
Chapter 12 of the 2021 Annual Report•
Section 16.4 Better World of the 2021 Annual Report•
Signify CDP Climate reporting31

Strategy(a) Climate-related risks and opportunities and,(b) The impact of climate-related risks and opportunities on the organization’s businesses, strategy, andfinancial planning
Transition risks and opportunities
The climate-related transition risks are presented in the below table. We have focused on transition risks
relevant for Signify in the following aspects: policy and legal, technology, market, and reputation. For a few
high-priority risks we performed a regional deep-dive, the results of which is shown in Figure B.
In terms of transition opportunities, we have focused on the following aspects: resource efficiency, products
and services, markets, and resilience. To understand the potential impact of the short-, medium-, and longterm opportunities, we made the below assumptions:- There are varying levels of regulatory requirements on energy efficiency of lighting products- No price erosion- Signify maintains its current market share in the lighting industry- There will be an increased need for lighting based on population increase, urbanization, GDP growth andlighting market intelligence

Technology

Policy and Legal

Transition risks andopportunities

Increased pricing of
GHG emissions

Change in regulatory
requirement for lowcarbon products

Substitution ofexisting products andservices with lower
emissions options

Changing customer
behavior

MarketIncreased cost of raw
materials

Access to newmarkets

Use of public-sector
incentives

Short
term
(2025)

Potential impact

The broader adaption of GHG pricing, carbon
taxes, and trading schemes across the globe will
drive up operational and productions costs.
Increased revenue resulting from products andservices that fulfill the low-carbon and energy
efficiency
requirements.
This
presents
opportunities for Signify as we have a strong anddifferentiated portfolio of energy efficient andlow-carbon products.
We anticipate the introduction of more stringent
minimum energy performance standards forlighting products in the coming decade, in whichcase, the least energy efficiency products in our
portfolio would be phased out and substituted,
impacting revenues from these products.
Increased revenue resulting from increased
customer awareness regarding climate change
and increase demand for products manufactured
by a sustainable company creating positiveenvironmental and social impact.
Singify’s suppliers who operate in regions
vulnerable to extreme weather events (e.g.,
floods and hurricanes) could be affected bychanges in physical climate parameters, which maylead to disruption in supply chain and increased
cost of raw materials.
As part our strategy, Signify is driving 5 new
growth for sustainability areas to help address theworld’s greatest challenges: (1) Climate action, (2)Circular economy, (3) Food availability, (4) Safety& security, and (5) Health & wellbeing. Sustainable
design and innovation will gain us access to thesemarkets, resulting in increased revenue.
Increase revenues from products, systems andservices that align with policy schemes. Signify’senergy efficient and low-carbon offering fit right
into the European Green Deal and the American
Jobs Plan.

32

Mediumterm(2030)

Long
term(2050)

Reputation
Resource efficiency
Products and services

Credibility ofemissions-related
reporting anddisclosure

Use of more efficient
production
processes,
use of recycling

Increased water
pricing due to scarcity

Development and/or
expansion of low
emission goods andservices
Development of new
products or services
through R&D andinnovation

Resilience

Shift in consumer
preferences

Signify’s sustainability statements, including all
topics related to emissions are audited by anindependent third party against Reasonable
Assurance. Credibility and transparency ofsustainability reporting has been our strength.
Reduced operating costs (e.g., through efficiency
gains and cost reductions). Reduced exposure to
GHG emissions and therefore less sensitivity tochanges in cost of carbon. Signify has
implemented more than 200 energy efficiency
initiatives in our facilities worldwide and reduced
70% of its carbon footprint in the last decade.
Increased water pricing might drive up production
cost in the short, medium and long term. Using theWater Risk Monetizer tool by Ecolab, Trucost, andMicrosoft, we assessed our current portfolio of
operating manufacturing facilities, considering
different scenarios of risk adjusted pricing forwater. Potential impact on business would be nonsignificant. Signify has set a target to reduce 5%of water consumption every year.
Reputational benefits resulting in increased
demand for goods/services. Increased revenues
resulting from increased demand for low-carbon
products and services. Signify has a strong
portfolio and leading market position of lowcarbon and energy efficient products andservices.
Increased revenues resulting from increased
demand for products and services that are lowcarbon and more energy efficient. Signify is strongin sustainable design and innovation.
Increased revenues resulting from increased
demand for products and services that fulfill
consumer’s low-carbon preferences. Signify has astrong portfolio, offering a wide range of lowcarbon and energy efficient products, systems
and services.

Participation in
renewable energy
programs andadoption of energy
efficiency
measures

Reduced exposure to future fossil fuel priceincreases. Reduced exposure to GHG emissions
and therefore less sensitivity to changes in cost ofcarbon. Signify has been carbon neutral and using
100% renewable electricity since 2020.

Development ofclimate adaptationand insurance risk
solutions

Increased resilience and reduced exposure toclimate risks. In 2020, Signify launched a
dedicated
multi-discipline
ClimateRisk
Assessment Taskforce, consisting of experts fromOperations, Insurance, Risk Committee, Internal
Audit, Sustainability, and EHS. Climate adaptationand insurance risk solutions are reviewed at least
annually.

High risk

High opportunity

Medium risk

Medium opportunity

Low risk

Low opportunity

33

Figure B Transition risks and opportunities at regional level
Physical risks
The climate-related physical risks are presented in the below table. We have focused on assessing physicalrisks relevant for Signify’s manufacturing sites and warehouses/distribution centers, namely riverine
flooding, coastal flooding, drought, tropical storm, and heatwave for the short-term (2025) and two longterm (2050) scenarios: a below 2°C or SSP1-2.6 scenario – taking the sustainable road, and an above 4°C or
SSP5-8.5 scenario – fossil fueled development path. The long-term impact of physical risks is influenced byclimate change and degree of global warming. In particular, the long-term risks of riverine flooding, droughts,
and tropical cyclones under the above 4°C scenario are expected to be significantly higher than under the
2°C scenario. This again resonates with the importance and urgency of taking bold climate action in line with
the Paris Agreement 1.5 °C pathway.

Physical risks

Riverine flooding

Coastal flooding

Droughts

Heatwaves

Tropical cyclones

Short
term
(2025)

Potential impact
Riverine flooding might be relevant for 23% of our sites.
Due to high level of preparedness and high resilience atsite level, risk and exposure are expected to be low inthe below 2°C scenario.
Coastal flooding might be relevant for 9% of our sites.
Due to high level of preparedness and high resilience atsite level, risk and exposure are expected to be low.
Droughts might be relevant for 21% of our sites. Due tohigh level of preparedness and high resilience at site
level, risk and exposure are expected to be low in the
below 2°C scenario.
Only 6% of our sites might be affected by heatwaves.
Due to high level of preparedness and high resilience atsite level, risk and exposure are expected to be low.
Tropical cyclones might be relevant for 26% of our sites.
Overall, a medium risk level is perceived even in the
below 2°C scenario. For sites that are at higher risk inthe long term, we keep reviewing the risk profile andresponse plan for mitigation and/or adaptation.

High risk
Medium risk
Low risk

34

Long term(2050)< 2°C

Long term(2050)> 4°C

(c) The resilience of the organization’s strategy, taking into consideration different climate-related
scenarios
Sustainability is at the core of our strategy and purpose. Signify has a robust sustainability program, Brighter
Lives, Better World 2025, which sets ambitious target for climate action. Signify was one of the first 28
companies committing to verified Science-Based Targets in line with the Paris Agreement 1.5°C pathway to
cut GHG emissions in our operations as well as in our value chain.
Since 2020, Signify is 100% carbon neutral in its global operations and uses 100% renewable electricity. Overthe past decade, we implemented hundreds of emission reductions initiatives in our facilities worldwide,
which enabled us to reduce 70% of our gross operational emissions. Signify has invested in three Power
Purchase Agreements (PPAs) to ensure long-term and high-quality renewable energy sourcing, and toenable the green power grid transition. Signify has a strong position in sustainable innovation and design,
which continue to revolutionize the lighting industry toward low-carbon and energy efficiency. With our
focus on energy efficiency and circular economy, we are improving our resilience to the future change inpolicy and regulations, (low carbon) technology, customer behavior and consumer preference, as well as thechallenge of energy scarcity; in the meanwhile, this helps reduce our exposure to increase cost of carbon
and fossil energy.
In terms of physical risks, the Climate Risk Assessment Taskforce, launched in 2020, has been screening andevaluating relevant climate-related risks and their impacts in details for our sites all over the world. Theserisks are reviewed at least once per year at individual plant, regional, Division and Function, or company level.
We continue evaluating those sites at higher risk in the long term, discussing response strategies
accordingly, and incorporating climate-related risks into the company’s overall risk review cycles.
In the long term, we are committed to continue deepening our understanding of climate-related risks andopportunities. Ultimately, this improves our resilience to climate-related risks and allows risks oropportunities response plans/strategies to be developed in a timely matter.

References:•
Section CEO Letter of the 2021 Annual Report•
Section 4.1 Financial performance of the 2021 Annual Report•
Section 12.5 Climate change of the 2021 Annual Report•
Chapter 16 of the 2021 Annual Report•
Signify CDP Climate reporting35

Metrics and targets
Climate action is perceived as the most material topic by our internal and external stakeholders as the resultof our 2021 materiality assessment. Signify was the first lighting company to reach carbon neutral operationsin 2020 and has committed to double its positive impact on the environment and society by the end of 2025.
Our climate-related metrics and targets are listed in the table below.
Targets

Baselineyear
Brighter Lives, Better World 2025 program

Targetyear

Definition

Double the pace we achieve the 1.5ᵒ
degree scenario of the Paris
Agreement(Full scope 1 + 2 +3)
Increase Climate action revenues to
72%

2019

2025

2019

2025

100% Carbon neutral operations

2020

2025

100% Renewable Electricity

2020

2025

Cumulative carbon footprint reduction of
our full value chain relative to the targets of
the 1.5-degree scenario of the Paris
Agreement (in Million Tonnes).
Percentage of total revenues coming fromenergy efficient and solar products,
systems and services, meeting strict
luminous efficacy thresholds, which help tosave energy and reduce carbon.
Percentage of our full operations(manufacturing sites, non-industrial
locations, logistics and business travel)
which is carbon neutral.
Percentage of electricity from renewablesources.

Approved Science-Based Targets, 1.5ᵒ scenario
70% reduction - scope 1, 2

2015

2030

30% reduction - scope 3(product use)

2015

2030

Reduction of 70% of absolute scope 1 and 2
GHG emissions
Reduction of 70% of absolute scope 3 GHG
emissions from use of sold products

Metrics

2021

Unit

Scope 1 emissions

149

kilotonnes CO2-equivalent

Scope 2 emissions

10

kilotonnes CO2-equivalent

Scope 3 logistics

124

kilotonnes CO2-equivalent

Scope 3 business travel

7

kilotonnes CO2-equivalent

Operational carbon footprint intensity

42

tonnes CO2-equivalent per million euro sales

References:•
Chapter 16 of the 2021 Annual Report•
Signify CDP Climate reporting36

Supplement 5: EU Non-Financial Reporting Directive(NFRD)
Category
Company business model

Criterion

Reference 2021 Annual Report
3 Creating long-term value
4 Corporate performance
10.2 Board of management
10.3 Supervisory board
16.3.2 Diversity, equity & inclusion
10.2 Board of management
10.3 Supervisory board
16.3.2 Diversity, equity & inclusion
16.3 Brighter Lives

Description
Policy description

Diversity
KPI / result
Policy description
Social matters

KPI / result

16.3 Brighter Lives
12.5 Operational risks
16.3 Brighter Lives
16.4 Better World

Risk
Policy description
Environmental matters

KPI / result

16.4 Better World
12.5 Climate risk
16.4 Better World
16.3.3 Human rights
16.3.3 Human rights
16.3.5 Business ethics
16.3.3 Human rights
12.1 Establish strong risk management
environment
12.1 Establish strong risk management
environment
16.3.5 Business ethics
12.1 Establish strong risk management
environment
12.3 Risk assessment and control

Risk
Policy description
Human rights

KPI / result
Risk
Policy description

Bribery and corruption

KPI / result

Risk37