Colas : CSR Information 2022

Environmental,

Employee and Social

Information

2022

This document is an extract from the Colas Annual Report

ENVIRONMENTAL, EMPLOYEE

AND SOCIAL INFORMATION

Bouygues, which has a controlling interest in the Company as defined in Article L. 233-3 of the French Commercial Code, has drafted and published a consolidated Statement on Extra-Financial Performance as mentioned in its Universal Registration Document.

The Company is therefore deemed to comply with the requirements of Article L. 225-102-1 IV of the French Commercial Code and is exempt from preparing a separate Statement on Extra-Financial Performance.

In accordance with the provisions of Articles L. 225-100-1 and L. 22-10-35 of the French Commercial Code, this section sets out the information and commitments made by the Company with regard to environmental, social and societal issues, non-financial key performance indicators and the low carbon strategy implemented within the Group.

In order to ensure transparency for its stakeholders, the Company has decided to have these elements audited by an independent third-party organization. The report of the latter is available in the "Independent verifier's report on a selection of non-financial information" section of this annual report.

Introduction

Colas must respond to major societal issues including social cohesion and equal treatment, inclusion and diversity, combating climate change and preserving biodiversity, transportation and housing needs, improving living conditions, shared mobility, energy transition, preserving resources, and health and safety and workplace well-being.

Furthermore, given the diversity of its activities, Colas needs to take account of the expectations of a number of stakeholders, both at Group level (shareholders, governments and administrations, international development funds, etc.) and at the local level (employees, customers, suppliers, users, local residents, etc.).

To respond to these expectations, Colas' Corporate Social Responsibility (CSR) policy is based on its impacts, risks and opportunities (specific to its activities) and reflects its values of caring, sharing and daring, which form the foundation of its corporate culture. The aim is to respond to the expectations of its many stakeholders and foster a lasting culture of continuous improvement in the field and within the areas in which it operates.

CSR commitments under the ACT project

In 2022, Colas continued to roll out its corporate project called ACT (Act and Commit Together), focused on the Group's eight CSR commitments towards its stakeholders for 2030:

• a commitment to integrate CSR into the business and, in particular, the way in which customers and users are offered solutions that meet the challenges of sustainable regional development;
• three commitments directly related to Colas' activities in terms of its low carbon and biodiversity strategy, the circular economy, reducing its impact and improving the acceptability of its activities;
• two commitments to our employees, particularly on how to attract, develop and retain talent through managerial excellence and how to consolidate a health and safety culture;
• a commitment to responsible purchasing, or how to build a responsible supply chain founded on sustainable performance; and
• a commitment to consolidating an exemplary culture of ethics and compliance.

CSR cuts across all areas of the Group's operations and is supported by its main cross-business functions, in particular business development, environment, health and safety, human resources, procurement, equipment, and even legal. It is managed by the CSR Department, which forms part of the Innovation and Sustainability Department. This department is divided into four units that cover most of the resources needed to coordinate and roll out the Group's CSR commitments:

• development of sustainable strategies (involving the CSR, Environment and HPS (1) departments);
• development of smart and sustainable infrastructure and mobility solutions;
• research and development of sustainable products and solutions;
• institutional relations.

(1) Health/Prevention/Security.

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These four units work on major CSR themes: environmental and low carbon solutions, adapting infrastructures to climate change, active mobility solutions to respond to the needs of customers and users, smart infrastructure, and digital solutions powering performance gains and new business.

The CSR Department, which provides expertise and oversees CSR issues, is responsible for coordinating the implementation of CSR policy across the Group as a whole. Implementation of the ACT project is structured around four key pillars:

• promoting CSR commitments and raising awareness;
• project governance;
• implementing and monitoring entities' action plans;
• measuring non-financial performance.

To foster continuous improvement, these different stages are analyzed, evaluated and presented to the Executive Management Committee each year as the various commitments are rolled out and non-financial results are gathered during the reporting campaign.

Promoting CSR commitments and raising awareness

With the support of the Communications Department, the CSR Department undertakes various activities to promote and raise awareness of the ACT project among employees. These activities, which were particularly important in bringing employees on board when the ACT project was first launched, continue throughout the year.

The following training and awareness-raising activities were undertaken in 2022:

• an awareness and self-assessment module for managers on the eight CSR commitments was rolled out. The aim is for managers to share a common core of knowledge around the ACT project and bring their teams on board. Almost 700 managers have already undertaken self-assessments on the eight commitments for sharing with their teams. Some entities, for example in Switzerland, Slovakia and Gabon, have even opted to expand the rollout to raise awareness of CSR issues among all managers;
• specific employee upskilling tools have been rolled out: Climate Fresco, webinars on compliance rules and "Road Fresco", to raise awareness among employees of the impacts of Colas' various activities and the solutions set out in its low carbon and biodiversity strategy;
• talks were given at Colas' various universities or academies around the world to raise awareness among all employees about CSR.

The CSR Department also set up ColasShare ACT, based on the Group's ColasShare knowledge management platforms, to highlight the Group's CSR commitments and network of CSR experts. This ColasShare ACT platform brings together a range of tools available to operational staff: communication materials, information about commitments and a guide to answering CSR questions that come up in calls for tenders. The platform, which is open to all, can also be used to share best practice.

Governance

The ACT project is monitored and managed using a matrix-based approach with two tiers: Group and local.

On the one hand, each of the CSR commitments is led by a project manager at Group level, who defines the roadmap, governance of its commitment, actions to be taken and monitoring indicators to be put in place. These commitment coordinators represent functional or corporate departments: Human Resources, Environment, Health and Safety, Procurement, Legal and Compliance, Business Development. The CSR Department periodically brings these commitment coordinators together to monitor and oversee progress on the ACT project.

On the other hand, each entity (geographical business units and subsidiaries) appointed a CSR Officer responsible for overseeing the operational rollout of the eight CSR commitments, supporting the definition and implementation of CSR action plans within his/her scope (in keeping with the Group's corporate roadmaps), monitoring progress made and steering local initiatives in collaboration with sponsors. This network of over 20 CSR officers is coordinated by the CSR Department, in particular by a committee of CSR officers that meets three to four times a year to oversee the project and share best practice and achievements.

Lastly, an update on the rollout of the ACT project is presented at each meeting of the Executive Management Committee. The formal involvement of the Executive Management Committee is essential to ensure the participation of Colas' entities.

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Implementing and monitoring action plans

The CSR Department has put in place a process to translate CSR commitments into operational action plans.

In 2022, the coordinators of the eight commitments defined the essential actions entities are expected to take for each commitment. This represents around 50 actions that either have a decisive effect on the impact of commitments or pave the way for rapid progress. Each entity is required to incorporate these essential actions into its action plan. CSR officers also incorporate local actions selected to support their entity's strategy or meet the expectations of local stakeholders.

To monitor progress against action plans, Colas decided to put in place a progress monitoring system. This system helps coordinate progress against local action plans and share achievements and best practice worldwide. Phased rollout of the system began in late 2022 and will continue in 2023.

Some entities, notably in France, have implemented best practice as to how to best implement the project within their business units:

• the Northeastern region has put in place ACT ambassadors within each business unit responsible for implementing the regional action plan within their business units and coordinating the approach so as to identify and progress additional actions;
• the Western region has developed a deck of cards to help implement its regional action plan: dedicated ACT sessions were held at which business unit heads each put together their own action plans by selecting the cards they wanted to use and present to their teams;
• Colas subsidiary Spac has incorporated its CSR action plan into its Horizon 2024 project, which is being rolled out operationally by the business unit head with the support of a local CSR Officer.

Measuring non-financial performance

The CSR Department coordinates non-financial reporting (collecting information, consolidation and verification) in order to track the performance of CSR indicators, and consolidates qualitative and quantitative non-financial data in Colas' various annual publications. Overall, around 70 environmental, social and societal non-financial indicators are collected across the Group each year. In 2022, a new reporting tool, CeS@R, was implemented to simplify the process of collecting data from users and offer more advanced analytical capabilities. The data is analyzed at different levels to identify strengths and priority actions.

Communications

Various communication actions are carried out throughout the year to inform internal and external stakeholders.

Internal communications

DIGITAL TOOLS

Colas relies on various digital tools to keep employees informed:

• the internal social network, Yammer, is enriched on a daily basis as employees share their experiences and promote best practices, through communities for employees working in the same business line, on the same project or in the same geographical area;
• the monthly Colas Inside newsletter, sent out to all Group employees, includes a CSR section and subject-specific sections (on HR, the environment, health and safety, etc.) conveying key messages and Group news;
• "Routes" magazine, which provides a summary of news from around the Group twice a year. This is sent out to employees and published on the website;
• the Bouygues group's in-house newsletter, Challenger Express, which regularly features news about flagship initiatives at Colas, notably in the CSR field.

Digital internal communication tools have also been in place within the Group's subsidiaries for several years. For example, Colas France has a blog, l'e-Changeur, which shares news from the field, including in relation to the ACT project. Meanwhile, Colas Danmark has implemented a mobile app to communicate with all employees, including site workers. Colas Rail produces an online traveling television news show that highlights a range of CSR initiatives and news.

In 2022, Colas continued to run dedicated webinars focused on each CSR commitment, in which CSR coordinators explain the governance structure and roadmap (current and future actions) for each commitment. The webinars "We act for sustainable solutions for our clients" and "We act for less impact" were each watched live by over 1,200 employees in addition to those who watched the recorded sessions later. In total, these webinars on Colas' CSR commitments had more than 12,900 views as of end 2022.

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For Sustainable Development Week in September 2022, the CSR Department produced an ACT starter briefing in the form of a motion design film presenting Colas' eight CSR commitments. The film, which aimed to explain the ACT project in an accessible way, was translated into the languages of all countries where Colas operates and was widely distributed. As of end 2022, the ACT starter briefing had had over 10,000 views.

DEDICATED ACT PROJECT EVENTS

In 2022, a variety of events were held to get Colas employees onboard with the ACT project throughout the year:

• Colas in Motion in May: Colas held a CSR-focused conference attended by more than 700 senior executives from 40 countries and featuring 50 internal and external speakers and six Colas partners. Attendees each followed "CSR tracks" tailored to their profiles - Carbon Fighter, Upcycler, Innovator and Humanizer - and highlights included two panel discussions on CSR, a talk by Bertrand Picard, CSR masterclasses, a "village" showcasing Colas' CSR solutions, Climate Fresco workshops and the newly created Low Carbon Way workshop. Trophies were also awarded in recognition of entities' most notable CSR achievements. This event was an opportunity to share progress on the ACT project and Group CSR best practice from around the world;
• Environment Day in June: Colas held its second Environment Day to raise employee awareness of issues surrounding the collapse of biodiversity;
• European Sustainable Development Week in September: this key event was structured into three phases - Understand, Discover and Act. The week was an opportunity for employees to deepen their understanding of corporate social responsibility and take concrete action on a range of CSR issues. A few examples are as follows:
• • a talk on constraints and opportunities arising from the transition to a circular economy,
  • Climate Fresco and Low Carbon Way workshops,
  • local community initiatives in various countries including tree planting, litter pickups, etc. as well as social inclusion initiatives,
  • distribution of the ACT starter briefing,
  • provision of a communications pack including posters, teasers, kakemonos, etc;
• Mobility Week in September: Colas put a spotlight on intermodality, in particular through Wattway, its photovoltaic road surfacing solution catering for multiple forms of mobility (offering users more ways to get around, improved continuity of service and improved travel conditions). By producing videos and attending exhibitions (Infratech in Germany and Innopolis and Architect@work in France), teams from Colas were able to communicate about these mobility solutions with their partners Hauber & Graf and Nielsen.

BRANDING AND EMPLOYER BRAND

To showcase its brand, Colas set up a brand platform in 2020 that reflects its core identity: "Imagining, building and maintaining sustainable transport infrastructure from our local roots, around the world", in keeping with the expectations of its various stakeholders and its CSR commitments. In 2022, Colas continued to highlight its values in internal communications, such as video messages from the Chairman and CEO, as well as at a number of gatherings and events including the Colas Team Cup.

To promote its employer brand, in 2022 Colas held its third Colas Team Cup, the Group's own sports and arts competition, opening it up to the outside world for the first time so students from all schools could take part. Over 300 people registered. This community-building event boosted Colas' appeal among future candidates.

To ensure they were able to answer candidates' frequent questions about the Company's CSR policy, recruiters also received training on the Group's CSR commitments and their operational implementation.

External communications

The new corporate website, www.colas.com, was launched at the end of 2021 to promote the Group's CSR approach externally and set out the ACT corporate plan and eight associated CSR commitments. A dedicated and regularly updated section expands on these commitments. Press releases also highlight some of the Group's flagship achievements in relation to its CSR commitments.

Active on social networks, Colas regularly highlights CSR commitments and initiatives around the world. Employees often post about CSR initiatives, tagging them with the #ACT hashtag.

The Group also promotes its CSR approach in its magazine "Routes", which is distributed to employees and published on the www.colas.com website and shares news about the Company's strategy as well as testimonials and tangible actions from around the world. In 2022, Colas produced an ACT brochure aimed at all stakeholders that sets out the Group's eight CSR commitments together with illustrative examples for each commitment.

Various Group entities and subsidiaries have their own communication materials promoting CSR. For example, Spac publishes a magazine, Espace, which it also sends out to all customers.

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