2018 2019 SUSTAINABILITY REPORT - GLASS MADE TO LAST - Verescence

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2018 2019 SUSTAINABILITY REPORT - GLASS MADE TO LAST - Verescence
SUSTAINABILITY REPORT
    2018 - 2019
     GLASS MADE TO LAST
2018 2019 SUSTAINABILITY REPORT - GLASS MADE TO LAST - Verescence
S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                           GLASS MADE TO LAST

                                                                                              24   Act for Society
CONTENTS                                                                                           Local presence, global strength
                                                                                                   Preserving employment on our sites
                                                                                                   Sustainable procurement
                                                                                                   Business ethics

                             04                   Introduction                                30   Eco Solutions
                                                  Editorial                                        Quality of service and competitiveness
                                                  Verescence past and present                      Optimizing the environmental impact of our processes
                                                  Our path to sustainability                       Innovation and eco-design
                                                  Three-pillar CSR strategy and governance         Our eco-innovations for sustainable luxury
                                                  Our 2018 achievements and 2022 objectives        Shared perspectives on eco-design between Verescence & Guerlain

                             16                   People First                                40   Appendices
                                                  Health and safety                                CSR dashboard and 2022 objectives
                                                  Well-being at work and recognition               Our value chain
                                                  Skills and careers                               2018-2019 CSR initiatives
                                                  Diversity                                        GRI (global reporting initiative) equivalence table
                                                                                                   Global Compact equivalence table
                                                                                                   Contact us
2018 2019 SUSTAINABILITY REPORT - GLASS MADE TO LAST - Verescence
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                    S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                       GLASS MADE TO LAST

          EDITORIAL

OUR SUSTAINABLE
COMMITMENTS
                                                                                               “Recognition of Verescence as an
THOMAS RIOU                        &            ALAIN THORRÉ
Chief Executive Officer                         CSR Director
                                                                                            eco-innovative glassmaker is growing.”

A PIONEER IN ECO-SOLUTIONS FOR LUXURY BOTTLES, WITH VERRE INFINI®              Thomas Riou: Between our first CSR report and                          don’t perceive our development positively.
IN 2008, VERESCENCE HAS BEEN ADVANCING ITS CSR FOR A DECADE. IN ITS            this one, Verescence has changed shareholder:                          It is on its three “pillars” (People First, Act for
SECOND SUSTAINABILITY REPORT, IT SETS OUT ITS AMBITIOUS ACHIEVEMENTS           Stirling Square Capital Partners. The latter is it-                    Society & Eco Solutions) that Verescence con-
AND OBJECTIVES WITH CONVICTION.                                                self a signatory to the PRI1. Together, we want                        tinues to pragmatically roll out its vision of CSR,
                                                                               to accelerate our development based on our                             baptized “Glass Made to Last.” This strategy is at
                                                                               CSR commitments. Moreover, since 2017, Veres-                          the heart of our new strategic plan: Verescence
                                                                               cence has been increasingly recognized by its                          2022.
                                                                               customers as an eco-innovative glassmaker. We
                                                                               have established ourselves as champions in our                         Alain Thorré: Being “sustainable” is not only
                                                                               sector of activity, the world’s leading glassmak-                      about ensuring the company’s future, but also
                                                                               er, concerned about the territories in which we                        about having robust processes (reduction of our
                                                                               operate and the working conditions of our 2,300                        scrap, waste, optimization of our energy and water
                                                                               employees, not to mention our suppliers. No                            consumption, etc.) and an optimal organization.
                                                                               economic success is possible if our stakeholders                       For example, in 2019, our production site in ►

                                                                               1
                                                                                   PRI : Principles of Responsible Investment; signing them implies a commitment to promote companies committed to CSR.

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             S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                 GLASS MADE TO LAST

                                               Mers-les-Bains will become a so-called “dry”
                                               plant, totally autonomous in terms of water.
                                               Instead of relying on the city’s drinking water,

                                                                                                     “Tomorrow even more than today, our mission
                                               the site will use a rainwater storage system. Op-
                                               erational excellence - our daily goal -, impacts
                                               our sites and ultimately customer satisfac-
                                               tion, ensuring faultless delivery on time. CSR is      is to provide our prestigious customers with
                                               not just a single aspect, it is all-encompassing.
                                                                                                         eco-designed bottles, produced with the
                                               Thomas Riou: From this perspective, innovation
                                               is a powerful accelerator. Whether it’s in our new
                                                                                                           territories and people working with
                                               industrial processes – we strive to ensure that
                                               each new investment reduces our environmental
                                                                                                                    and for us in mind.”
                                               impact and improves working conditions – or in
                                               our products, which must be fully compatible with
                                               our CSR commitments and provide a response to                                      CO2 and water consumption. We want to
                                               sustainable development in luxury goods. A few                                     go even further by aiming for an A grade
                                               examples: the development, as of 2017, of LCA                                      and by certifying all our sites ISO 50001 by
                                               (Life Cycle Assessment) software in collabora-                                     the end of 2020 (our Mers-les-Bains site has
                                               tion with EVEA for sustainable development and                                     already been certified for a few months).
                                               the ban on developing a decoration technique
                                               that could hinder the recyclability of glass. In-                                  Alain Thorré: It’s also an asset recognized by
                                               novation is of course about listening to our cus-                                  the talents we recruit. In conducting job in-
                                               tomers, but it also means offering them eco-de-                                    terviews in France, Spain and the United
                                               signed solutions in line with their brand’s DNA.                                   States, I was able to see that most candi-
                                                                                                                                  dates were attracted by our CSR approach.
                                               Alain Thorré: Our customers rate us number one
  “2018 and 2019                               in this respect. In 2018, the jury of the LUXE PACK                                Thomas Riou: And that’s good because CSR is

have been marked
                                               in green competition in Monaco, bringing to-                                       everyone’s business, at all levels of our organiza-
                                               gether the main customers of luxury packaging,                                     tion and at all levels of our value chain. We are

    by a double                                awarded the prize to Verescence, praising the
                                               maturity of our CSR approach. It is structured,
                                                                                                                                  already seeing this at our sites, where “field” ini-
                                                                                                                                  tiatives are more and more numerous and struc-

 recognition of the                            ambitious and deployed at all levels of the com-
                                               pany, from operators to General Management.
                                                                                                                                  tured. Tomorrow even more than today, our mis-
                                                                                                                                  sion is to provide our prestigious customers with

success of our CSR                             Thomas Riou: 2018 and 2019 were also marked
                                                                                                                                  eco-designed bottles, produced with the territo-
                                                                                                                                  ries and people working with and for us in mind.•

  commitments.”                                by a double recognition of the success of our CSR
                                               commitments. Our group is the first glassmaker
                                               to win the EcoVadis Gold Medal. We were also rec-
                                               ognized by the CDP, a non-profit organization, in
                                               obtaining a B grade for the control of our

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                                   S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                GLASS MADE TO LAST

VERESCENCE                                                                                                                         7 gold medals                       Grade B
PAST AND PRESENT                                                                                                                 EcoVadis for the group
                                                                                                                                      and all its sites
                                                                                                                                                                  Climate Change & Water
                                                                                                                                                                       Consumption
                                                                                                                           TOP 1% of the best companies in 2018

THANKS TO FRENCH EXPERTISE GAINED FROM OVER A CENTURY OF
EXPERIENCE, VERESCENCE HAS ESTABLISHED ITSELF AS A PIONEER
IN THE ECO-DESIGN OF BOTTLES FOR LUXURY GOODS AND DEVEL-
OPED INTERNATIONALLY TO BECOME THE MARKET LEADER.

The history of Verescence began in 1896 with the cre-
ation of the Mers-les-Bains glass factory, in what is now
Glass Valley, the world center for luxury bottles.                                            N°1
                                                                                              in bottles for
Through a series of acquisitions, the group reached its                                       Perfumery &
current form in 2016, with a new name that highlights                                         Cosmetics
its constant transformation. We are now focused on the
Perfumery & Cosmetics business, with the aim of consol-
idating our position further as the world’s leading manu-
                                                                                              €305M
facturer of luxury glass bottles on the sustainable beauty                                    Revenue in 2018
market.
                                                                                              2300
Right from the start, the company aimed to expand in-
                                                                                              employees
ternationally in order to get closer to its customers, and                                    worldwide
contribute to the development of the areas in which it
operates.
                                                                                              500 M
We are also very proud to be pioneers in our industry,
                                                                                              bottles produced
with, in particular, Verre Infini® (100% recycled), environ-
mental impact analysis and the recyclability of our bot-
tles.                                                                                         100%
                                                                                              of our sites certified:
                                                                                              ISO 9001, ISO 14001
                                                                                              ISO 22716 (Cosmetics GMP),
                                                                                              OHSAS 18001

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                            S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                                                               GLASS MADE TO LAST

OUR PATH TO
SUSTAINABILITY
                                                                                                                   2013
                                                                                                             • Implementation of
                                                                                                             Autonomous Production
                                                                                                             Units (APU) on all our
                                                                                                                                                                                                                                     2018
                                  2009
                                                                                                             finishing sites
                                                                                                             • La Granja declared                                                                                              • Signature of the United

                                                                                                                                                                           2015
                                                                                                             Biosphere Reserve by                                                                                              Nations Global Compact
                                                                                                             UNESCO                                                                                                            • First Sustainability Report
                                                                                                                                                                                                                               • EcoVadis GOLD for the
                             • Launch of a Safety Day
                                                                                                                                                                                                                               group and all its sites
                             on all sites: safety, our
                                                                                                                                                                     • Reconstruction of                                       • CDP "B" for Climate
                             priority
                                                                                                                                                                     Furnace 1 in                                              Change and Water

                                                                                                                                                                                                       2017
                                                                                                                                                                     Mers-les-Bains with                                       Consumption
                                                                                                                                                                     reduction of CO2                                          • Luxe Pack in green award
                                                                                                                                                                     emissions and energy                                      for "Best CSR approach"
                                                                                                                                                                     consumption                                               • Reconstruction of Furnace 1
                                                                                                                                                                     • Luxe Pack in green award   • Safety Day becomes CSR     in La Granja with reduction

                                                                                                  2011
                                                                                                                                                                     for "Best eco-friendly       Day                          of CO2 emissions and
                                                                                                                                                                     designed product" with       • All of our sites are       energy consumption
                                                                                                                                                                     Verre Infini® NEO             certified ISO 9001,
                                                                                                                                                                                                  ISO 14001, ISO 22716,
                                                                                            • Launch of the TOP 2012                                                                              OHSAS 18001
                                                                                            plan to improve quality                                                                               • Reconstruction of
                                                                                            and service                                                                                           Furnace 6 in
                                                                                                                                                                                                  Mers-les-Bains with
                                                                                                                                                                                                  reduction of CO2
                                                                                                                                                                                                  emissions and energy
                                                                                                                                                                                                  consumption
                                                                                                                                                                                                  • Creation of a Life Cycle
                                                                                                                                                                                                  Analysis software

                                                                                            2012
    2008                                                                               • Launch of the

• Launch of Verre Infini®,
the first glass for the
                                                     2010                              Performance 2015 plan to
                                                                                       ensure long-term
                                                                                       profitability
                                                                                                                                           2014                         2016                                                                            2019
beauty market composed
of 100% post-consumer                          • Oaktree Capital                                                                                                                                                                                  • New shareholder Stirling
                                                                                                                                                                  • SGD becomes Verescence
glass (PCR)                                    Management enters the                                                                  • Development of Verre                                                                                      Square Capital Partners
                                                                                                                                                                  • Launch of the Excellence
                                               group's ownership:                                                                     Infini® NEO, the first                                                                                        • Launch of the
                                                                                                                                                                  2018 plan to consolidate our
                                               investments for the                                                                    premium glass made                                                                                          Verescence 2022 plan, to
                                                                                                                                                                  position as world leader in
                                               eco-responsible upgrades                                                               using 90% recycled                                                                                          become the global
                                                                                                                                                                  glass manufacturing
                                               of our facilities                                                                      materials, including 25%                                                                                    reference in the
                                                                                                                                      post-consumer glass (PCR)                                                                                   sustainable beauty
                                                                                                                                                                                                                                                  industry
                                                                                                                                                                                                                                                  • Our Mers-les-Bains site
                                                                                                                                                                                                                                                  obtains ISO 50001
                                                                                                                                                                                                                                                  certification
                                                                                                                                                                                                                                                  • EcoVadis "Sustainability
                                                                                                                                                                                                                                                  Leadership Award" for our
                                                                                                                                                                                                                                                  Sparta site

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                                   S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9

THREE-PILLAR CSR STRATEGY
AND GOVERNANCE
CSR IS PART OF OUR DNA. IT IS AT THE HEART OF OUR STRATEGY, DECISIONS AND ACTIONS, AS
REFLECTED IN OUR STRATEGIC PLAN VERESCENCE 2022.

CSR STRATEGY
Our CSR strategy is based on the 10 prin-
ciples of the Global Compact in line with
the UN Sustainable Development Goals                                                          INTERVIEW
(SDGs). This report measures our progress
for the period 2018-2019 and constitutes our
Communication On Progress (COP). Our CSR ini-                                                                                 PEOPLE FIRST                       ACT FOR SOCIETY                      ECO SOLUTIONS
tiatives are classified according to three pillars:
PEOPLE FIRST, ACT FOR SOCIETY and ECO                                                                                  Glass-making and finishing are        What makes Verescence unique        Glass is a unique material that
SOLUTIONS.                                                                                                             not easily learned skills. They are   is its status as an international   can be recycled an infinite
Our strategic plan, “Verescence 2022” express-                                                                         based on precise and rare ex-         group with a strong local pres-     number of times without any
es our vision of sustainability for the entire                                                                         pertise acquired over a long pe-      ence. As a leader, we have to       deterioration in its properties.
group. It is a roadmap to fulfilling our ambition                                                                      riod of time. What’s more, they       set an example and make our         It inspires us to incorporate the
                                                                                           Julien Horreard
of remaining a leader and an example for our                                                                           evolve with the arrival of new        actions sustainable so that we      environmental imperative as a
                                                                                          Partner at Stirling
employees, our territories and our customers.                                           Square Capital Partners        technologies. Verescence must         contribute positively to the        source of creativity and innova-
                                                                                                                       find a way to maintain its histor-    ecosystems around us. We be-        tion. We believe that developing
                                                                            “Verescence is the leader in its market,   ical skills and adapt to new de-      lieve that economic and social      more planet-friendly processes
MANAGEMENT TO IMPLEMENT OUR AMBITION
                                                                            notably through its capacity for
OF SUSTAINABILITY                                                                                                      velopments, while guaranteeing        performance must and can be         and eco-designed products is
                                                                            innovation and its sense of excellence.
Verescence has a new shareholder (since                                     With our investment fund as its            safety and well-being at work.        coordinated jointly.                compatible with the codes of
February 2019) who has signed the PRI, a highly                             sole shareholder, Verescence aims                                                                                    luxury and beauty.
                                                                            to become the global reference in
committed executive committee and a CSR de-
                                                                            the sustainable beauty market. This
partment with dedicated teams at each site.                                                                            > Health and safety                   > Local presence,                   > Quality of service
                                                                            ambition is in line with the objectives
Within Verescence, CSR concerns every oper-                                 of the Principles for Responsible          > Well-being at work and                global strength                     and competitiveness
ational employee, whatever their position. It is                            Investment (PRI) to which we adhere.”        recognition                         > Preserving employment             > Innovation and eco-design
broken down into specific objectives that are                                                                          > Skills and careers                    at our sites                      > Optimizing the environmental
reviewed monthly by steering committees. A                                                                             > Diversity                           > Sustainable procurement             impact of our processes
World CSR Day mobilizes all employees every                                                                                                                  > Business Ethics
year at all our sites.

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OUR 2018 ACHIEVEMENTS
AND 2022 OBJECTIVES

     GOLD medal
     EcoVadis for
                                            -20%                                               -4,722
   the group and all                     water consumption                                    tons of CO2 emissions
        its sites                     Objective 2022: 2,5 m3/tg                              Objective 2022: 0,9 t/tg

                                           85,9%                                               90%
Signature of the United                     waste recovered                                   local purchases
Nations Global Compact                    Objective 2022: 97%                               Objective 2022: 95%

       Score B for
                                                  3%
                                        investments to improve
                                                                                                 2,6
                                                                                           TF1 index for the group
    Climate Change                        working conditions                                Objective 2022: < 2
 & Water Consumption                      Objective 2022: 2%

                                                41%                                          + 40%
     Prize for the                        female recruitments                        bottles made using Verre Infini® NEO
 "best CSR approach"                      Objective 2022: 50%                          Objective 2022: +50% per year

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                     S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                             PEOPLE FIRST

       PEOPLE FIRST                                                                                                   HEALTH AND SAFETY

                                                                                                           Health and safety are priorities in an industri-           SAFETY
                                                                                                           al company. That’s why we have set ambitious               As a sign of our commitment to safety, the lost-
                                                                                                           “Health and Safety” targets moving towards                 time accident frequency rate (TF1) stood at 2.6
                                                                                                           zero accidents and zero occupational diseases.             in 2018 and is in line with our objectives. We also
                                                                                                           Quantified objectives and detailed action plans            have a plant in the USA that has been at 0 acci-
                                                                                                           are applied to all our plants and are accompa-             dents for more than 4 years. By way of compar-
                                                                                                           nied by significant investments. For example, in           ison, the frequency rate published by the French
                                                                                                           2018, they represented 3% of our total invest-             national health insurance fund shows a result of
                                                                                                           ments.                                                     23 for the French general social security scheme
                                                                                                                                                                      overall.
                                                                                                           HEALTH
                                                                                                           OHSAS 18001 certification (a reference in terms            In 2018, to go even further, we introduced an
                                                                                                           of occupational health and safety management)              analysis of “near misses” and the resulting “field”
                                                                                                           has been renewed at all our sites and the audit            action plans at all our sites.
                                                                                                           results have enabled us to make further prog-
                                                                                                           ress.                                                      In both La Granja and Mers-les-Bains, a new
                                                                                                                                                                      technology for lubricating our molds is being
                                                                                                           2018 saw the implementation of one of our firm             deployed to improve the safety of this essential
HEALTH AND SAFETY                                      VERESCENCE IS AN AGILE COMPANY
                                                                                                           commitments: to provide all our employees with             action. By the end of 2020, 100% of our produc-
                                                       IN CONSTANT TRANSFORMATION, A
                                                                                                           healthcare in line with the best practices in their        tion lines worldwide will be equipped.
                                                       TRANSFORMATION MADE POSSIBLE BY THE
                                                                                                           country of residence and financial protection in

WELL-BEING AT WORK
 AND RECOGNITION
                                                       COMMITMENT OF OUR PEOPLE.
                                                                                                           the event of a non-work-related accident. We are
                                                                                                           delighted to have set up a life insurance policy
                                                                                                                                                                                           3%
                                                       A company is first and foremost enriched by its
                                                                                                           at the Verescence Somme site, the last site not                    investments to improve working
                                                       teams, talents and personalities. Our priorities
                                                                                                           to have one in place. We have also improved the                           conditions in 2018
                                                       are health, safety, skills development, recogni-
                                                                                                           health coverage of all our employees in France.

                                                                                                                                                                                           2.6
SKILLS AND CAREERS                                     tion and well-being at work. This is essential to
                                                       establish sustainable performance.
                                                                                                           Numerous initiatives have been implemented
                                                                                                           around the world to combat MSDs (musculoskel-                          TF1 for the group in 2018
                                                                                                           etal disorders): frequent rotation on strenuous
    DIVERSITY                                                                                              jobs, a warm-up program before taking up work
                                                                                                           in Spain, and the recruitment of an ergonomist                    0 accidents
                                                                                                           for our French decoration sites.                                       since 2014 in Sparta, USA

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                                  S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                              PEOPLE FIRST

                                                                                                                        GREATER DIALOG FOR GREATER
                                                                                                                        COMMITMENT
                                                                                                                        In 2018, we decided to give even more space
                                                       FOCUS                                                            to open exchange with our employees and
                                                                                                                        launched an annual global engagement survey
                                                                                                                        among 400 executives and supervisors. This

                                  WORLD CSR DAY 2019:
                                                                                                                        system is supplemented by the creation of ex-
                                                                                                                        pression groups for our operator employees. This
                                  SAFETY, OUR PRIORITY                                                                  approach has demonstrated certain strengths in
                                                                                                                        terms of adherence to our strategy, its CSR & in-
    10 years ago, Verescence launched                                                                                   novation dimension and the commitment of our
    World Safety Day. Since 2017, this day                                                                              staff. But also areas to work on that are the sub-                    OUR EMPLOYEES
    has become a CSR day.                                                                                                                                                                     TAKE THE FLOOR
                                                                                                                        ject of global or service-specific action plans.
    An event rich in meaning
    As part of this day, we adapt the pro-                                                                              In 2019, in Mers-les-Bains, we will finalize the
    duction in our plants so that 100% of                                                                               modernization of the site’s administrative of-

                                                                                                                                                                                                83 %
    our employees can be informed and                                                                                   fices, which will accommodate 150 people in a
    trained on our CSR strategy, our safe-
    ty standards and best environmental                                                                                 state-of-the-art and highly collaborative space.
    practices.                                                                                                          When completed, this project will represent an
                                                                                                                                                                                                  are proud
                                                                                                                        investment of €4.5 million.                                         to work at Verescence
    Raising awareness among all employees
    Stands are organized with the active

                                                                                                                                                                                               80 %
    participation of our teams and stake-                                                                               A SHARED AND STIMULATING DIRECTION
    holders, to get people involved and                                                                                 In 2018, the group’s internal newsletters, first
    encourage commitment. In 2019 we                                                                                    published in France, were extended to Spain and
    ran evacuation exercises, conferences                                                                                                                                                      are passionate
                                                                                                                        the USA. All of our sites publish an internal news-
    on recycling and its implementa-                                                                                                                                                        about their profession
    tion at our sites, and actions to raise                                                                             letter, “Verescence in Action”, once a month
                                                                                                                        placing the emphasis on the site’s latest news.

                                                                                                                                                                                                 81%
    awareness of water and energy con-
    sumption, etc.                                                                                                      We also continued to develop our collaborative
                                                                                                                        tool on the Group’s Intranet with the creation of
                                                                                                                        a “Human Resources” section.                                        share the same values
                                                                                                                                                                                       and the group’s CSR commitment

                                                                                                                        In 2019 we will be preparing the launch of our
           WELL-BEING AT WORK                                                                                           new strategic plan, “Verescence 2022”, which
           AND RECOGNITION
                                                                                                                        will be presented at each of our sites, an oppor-
                                                                                                                        tunity to explain our strategy and its application
As a key indicator for measuring our progress                       A DEMANDING AND MOTIVATING
                                                                    MANAGEMENT APPROACH                                 in each plant and department. An opportunity
in this area, our absenteeism rate continued to
                                                                    The quality and consistency of the practices of     also to take stock of our transformation plan,
drop in 2018 and is in line with our commitment
                                                                    our management teams are essential. That is why,    which is coming to an end (Excellence 2018) and
to 5%. As a reminder, our target for 2022 is an
                                                                    in 2018, we launched in-depth training courses in   to celebrate our major achievements.
absenteeism rate of less than 4%. To achieve
this objective, we continue to invest in improv-                    France, starting with our operational managers.
ing working conditions, intensifying our internal                   In 2019, an international training course will be
communication and regular feedback from our                         launched for the company’s strategic managers.
employees on our strategy and results.                              100% of our managers will be able to benefit
                                                                    from these programs by the end of 2020.

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                                    S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                                      PEOPLE FIRST

                                                                                                                                a professional training organization by the gov-
                                                                                                                                ernment and takes on high school students to
                                                                                                                                support their path to professionalization. This is
                                                                                                                                an excellent example of how we work alongside
                                                                                                                                our territories.                                                             INTERVIEWS
                                                                                                                                We want to offer even greater career visibility by
                                                                                                                                deploying career programs at all our sites and
                                                                                                                                the appropriate training resources.

                                                                                                                                INTERNAL AND INTERNATIONAL MOBILITY
                                                                                                                                Our international scope offers great career op-
                                                                                                                                portunities abroad that we choose to offer our
                                                                                                                                employees as a priority. Twenty expatriates are
                                                                                                                                currently able to contribute to a form of mutual                  Engineer, Verescence Mers-les-Bains
                                                                                                                                acculturation at our sites to increase our collec-
                                                                                                                                tive intelligence. Objective for 2019: finalization              “With the support of Verescence, I
                                                                      Verescence team members at the Transbaie event in 2018.
                                                                                                                                of our global job exchange project.                              began a continuing education program
TEAM BUILDING & CONVIVIALITY                                                                                                                                                                     at the École d’ingénieurs de Rouen in
                                                                                                                                A key component of our strategy is to promote                    2018. As a result, I got a position as
We believe that sport is an ideal way to bring                        We regularly organize inaugurations and events
                                                                                                                                internal promotion. For example, in 2018, more                   Application Finishing Engineer within
teams closer to the group and have healthy em-                        to celebrate milestones, victories and important
                                                                                                                                than 70% of vacant positions were filled through                 the group. What a journey in only 10
ployees. In 2018, Verescence took part in numer-                      moments in the company’s life. These highlights                                                                            years! And this wonderful experience
                                                                                                                                internal transfers or promotions.
ous races, including the Transbaie, a legendary                       allow us to invite the stakeholders who have                                                                               continues: as of 2019, my new duties
                                                                                                                                Every employee at Verescence should be able                      will allow me to continue to develop my
17km race in the Bay of the Somme that brought                        contributed positively to these projects and to
                                                                                                                                to advance according to their talents. From the                  skills every day.”
together 6,500 runners. The Verescence team                           congratulate our teams. Verescence Orne was in
                                                                                                                                moment they’re hired, we help them develop
was formed of 84 athletes from France and                             the spotlight in 2018, with the inauguration of its
                                                                                                                                their skills. For example, several employees hired
Spain who trained together all year round. We                         new decoration lines and the 60th anniversary of
                                                                                                                                as qualified operators have become engineers
will be taking part again this year with more than                    the site.
                                                                                                                                thanks to training funded by Verescence.
100 sign-ups.

                                                                                                                                                  60%
            SKILLS AND CAREERS

The talents of our employees are essential for                        decided to introduce a training portal in 2020
                                                                                                                                             of staff trained in 2018                                     Sophie Duquenne
our future and at the heart of the priorities of our                  accessible to all, with construction already un-
                                                                                                                                                                                                     APU Manager, Verescence Orne
strategic plan “Verescence 2022”. We help build                       derway.

                                                                                                                                                  9736
and develop them by stepping up our training                          We are also spearheading unique training cen-                                                                              “Becoming a manager was a career de-
efforts and placing them more and more in “re-                        ters for bottles, with the Glass and Finishing                                                                             velopment I’d been looking for. Knowing
al-life” situations through internal and interna-                     School in France. Each year, we continue to im-                                                                            how to communicate and giving mean-
                                                                                                                                                                                                 ing to what is expected of each person
tional mobility programs.                                             prove the quality and diversity of our training,             hours of training at the Glass and Finishing                  is something that can be learned and
                                                                      which represents 9,736 hours of training in 2018.                           School in 2018                                 the training course offered by Veres-
VERESCENCE ACADEMY                                                    Our sectoral know-how is a competitive advan-                                                                              cence has helped me a lot. I learn every
In 2018, 60% of the workforce received training.                      tage and we must take into account technologi-                                                                             day, working closely with the teams. It’s
                                                                                                                                                                                                 incredible to make progress together!”
Already a high level, but one we want to increase                     cal changes in our traditional businesses.
even further by 2022. To meet this goal, we have                      Finally, our site in Spain has been approved as

                                                              20                                                                                                                       21
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                                   S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                             PEOPLE FIRST

          DIVERSITY

Increasing the intelligence of our organizations                     CULTURAL AND GEOGRAPHICAL DIVERSITY
is an imperative to meet the economic, ecologi-                      At Verescence, three different nationalities
cal and societal challenges related to our activi-                   are building the future within the Executive
ties. Diversity at Verescence is a source of wealth                  Committee and six nationalities within the Board
                                                                                                                                                                                                        FOCUS
and progress.                                                        of Directors.

DEVELOPMENT OF OUR EMPLOYMENT AREAS                                  In 2018, we were fortunate to see eight of our
AND SOCIAL INCLUSION                                                 Brazilian colleagues (a subsidiary we sold in
Our growth and profitability must have a posi-                       2017) want to join us and continue the adven-
                                                                                                                                                                                                  WOMEN
tive impact on our employment areas and lead                         ture. They are now based in France, Spain and                                                                            AT VERESCENCE
to a stable employment contract as soon as pos-                      the USA. This is a great opportunity to bring a
sible. In 2018, we recruited more than 120 people                    different perspective to the functions they per-                                                                  Affirming and developing women in
on permanent contracts in France and Spain.                                                                                                                                            leadership
                                                                     form.
                                                                                                                                                                                       Launched in 2017, the network
                                                                                                                                                                                       “Women at Verescence” brings together
Rooted in its territories, Verescence works with                     Annual business line committee meetings bring                                                                     Verescence employees and customers for
local schools, trains and recruits mainly locally.                   together Verescence experts of all nationalities                                                                  an event to consult, exchange and inspire
                                                                                                                                                                                       one another.
                                                                     and departments, while exchange visits between
In addition, we want our presence to bring tan-                      our sites and major group-wide projects com-                                                                      Meeting with inspiring women
gible benefits to our territories by including the                   plete this “cross-fertilization” system.                                                                          A second meeting was held on February
most disadvantaged populations. For example,                                                                                                                                           12, 2019, in Paris. In this context, Hélène
in 2018, our Spanish site completely revised its                                                                                                                                       Marchand, Director General France,
                                                                     WOMEN AT VERESCENCE
                                                                                                                                                                                       welcomed Tatiana Brillant, who came to
accessibility for disabled workers. A great mo-                      The proportion of female managers in 2018 re-                                                                     share her professional experience as a
bilizing project. In France, we have forged close                    mains in line with the 2017 results. Our 2020 tar-                                                                negotiator in the RAID forces - an elite
links with the Pôle emploi employment agency                         get (33%) will require us to extend our efforts,                                                                  unit of the French police where, before
and HumanDo, an actor in integration through                                                                                                                                           her, this role was reserved for men.
                                                                     particularly through recruitment.
                                                                                                                                                                                       Her testimony was a high point of the
employment and more recently worked closely                                                                                                                                            event and an instructive moment for the
with the “Resto du Cœur” to identify people with                     In 2018, we achieved a rate of women recruited                                                                    network.
limited access to employment.                                        of 41%. We have set ourselves a parity-based re-
                                                                                                                                                                                       Towards greater parity
                                                                     cruitment target for 2020 of 50-50.
                                                                                                                                                                                       At Verescence, we believe that it is
                                                                                                                                                                                       essential to increase the number of
                                                                                                                                                                                       women in our entire workforce by
                                                                                                                                                                                       facilitating women’s access to all the
                                                                                                                                                                                       group’s professions and hierarchy levels.

                   33%                                                                        41%                                                                                      In the words of Hélène Marchand, “parity
                                                                                                                                                                                       in technical and managerial roles will
                                                                                                                                                                                       increase the intelligence of our company.”
            female managers in 2018                                                     female recruits in 2018

                                                                                                                                     Hélène Marchand, General Manager France,
                                                                                                                          at the 2019 Women at Verescence conference in Paris.

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                          S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                                                  AC T FO R SO C I E TY

                                                                                                                                               LOCAL PRESENCE, GLOBAL STRENGTH

           ACT FOR SOCIETY                                                                                                           In France, Spain and the USA, our sites have the
                                                                                                                                     autonomy necessary for their agility in order to
                                                                                                                                                                                                   AS CLOSE AS POSSIBLE TO LOCAL REALITIES,
                                                                                                                                                                                                   ALL ALIGNED WITH THE HIGHEST STANDARDS
                                                                                                                                     support customers locally while taking into ac-               Since 2018, 100% of our sites have been certi-
                                                                                                                                     count their ecosystems.                                       fied to the highest standards. For example, ISO
                                                                                                                                                                                                   22716. This internationally recognized standard
                                                                                                                                     The group’s departments help them gain com-                   is used by European authorities to identify
                                                                                                                                     plementary expertise, transfer good ideas,                    cosmetic products (containers and contents)
                                                                                                                                     promote the co-construction of technical or                   manufactured according to best practices.
                                                                                                                                     organizational innovation and facilitate the dis-             Verescence has obtained this certification not
                                                                                                                                     semination of feedback between our teams.                     only for its European sites but also across the
                                                                                                                                     The aim is to stimulate collective intelligence               Atlantic.
                                                                              VERESCENCE IS A GLOBAL GROUP                           and inspire best practices that are then repli-
                                                                              DEDICATED TO CULTIVATING THE LO-                       cated wherever we feel they are appropriate.
                                                                              CAL PRESENCE OF ITS PLANTS. CSR BEST                   Diversity is a driving force behind this approach.
                                                                              PRACTICES ARE SHARED BETWEEN OUR                       “One Verescence” is, in a way, our version of the
                                                                              THREE PRODUCTION COUNTRIES (FRANCE,                    “cross-fertilization” system cherished by compa-
                                                                              SPAIN AND USA).                                        ny’s promoting learning and empowerment.
                                                                                                                                                                                                                    INTERVIEW
                                                                              Born in the Glass Valley, Verescence has been          MAXIMIZE THE SORTING OF GLASS IN
                                                                              preserving and promoting its glassmaking know-         CLUSTERS
    LOCAL PRESENCE,                                                           how for over 120 years. A unique know-how that         To minimize the environmental impact of our
    GLOBAL STRENGTH                                                                                                                  activity while contributing to the dynamism of
                                                                              Verescence has also been able to deploy in Spain
                                                                              and the United States and which has ensured its        our territories, Verescence has decided to set up
                                                                              position today as the leading glassmaker in lux-       its sorting activities at its manufacturing sites all
                                                                              ury bottles worldwide. We believe that a sustain-      over the world.
      PRESERVING
EMPLOYMENT AT OUR SITES                                                       able company is a company that knows how to            With this in mind, between 2017 and 2019 we
                                                                              reconcile societal and economic performance in         doubled the number of sorters at our main
                                                                              order to have a positive impact on its employees,      French site in Mers-les-Bains. In Spain, 100% of                   “Mega Verre was chosen by Verescence
                                                                                                                                                                                                        to set up in its Mers-les-Bains plant to
                                                                              customers and, more generally, all its stakeholders.   sorting is now carried out at the La Granja site
                                                                                                                                                                                                        boost sorting performance and reduce
SUSTAINABLE PROCUREMENT                                                                                                              with two service providers based on the prem-                      lead times. This allows us to benefit
                                                                              Our societal commitments -ACT FOR SOCIETY-             ises.                                                              from constant volumes and thereby
                                                                              are based on: our locations, the preservation of       This virtuous clustering should enable us to                       ensure the sustainability of our sorting
                                                                                                                                                                                                        activity, “ explains Christophe Gosmant,
                                                                              our jobs, our responsible purchasing and busi-         achieve our 2020 objective of 90% on-site sort-
                                                                                                                                                                                                        Chairman and CEO of Mega Verre.
    BUSINESS ETHICS                                                           ness ethics. Progress was made in 2018-2019 on         ing. Verescence has already increased from 40%
                                                                              these four major challenges and ambitious new          in 2017 to over 80% in 2019.
                                                                              objectives were integrated into our new strate-
                                                                              gic plan: Verescence 2022.
                                                                                                                                                        80%
                                                                                                                                              sorting of bottles carried out
                                                                                                                                                    in-house in 2018

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                                  S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                              AC T FO R SO C I E TY

        PRESERVING EMPLOYMENT AT OUR SITES

Responsibility No. 1: the sustainability of our                     QUALIFYING COURSES                                   VALORIZATION OF OUR TRADE                                     of the world’s production of high-end bottles
company. It involves in particular the qualifi-                     Present in sometimes “disadvantaged” territo-        We are active members of European and French                  and flasks comes from, Verescence participat-
cation of our employees and the promotion of                        ries, such as Sparta in the USA or Abbeville in      associations such as FEVE (European Federation                ed in a forum, the first of its kind, dedicated to
the glass and finishing trades. Raising the level                   France, Verescence is involved in the training of    of glass packaging and glass tableware makers),               the glass industry: WEV (Week-End Verrier). A
of training in the main employment areas where                      local populations. For example, 37 certificates      the Fédération du Verre, Glass Valley, Cosmetic               variety of trades, from glassmaking, molding,
Verescence operates is part of the equation.                        have been issued since 2016 in the form of a         Valley and The Fragrance Foundation.                          foundry and finishing, to sorting. Objectives: to
                                                                    Certificate of Professional Qualification (CPQ) or   In 2018, with the collaboration of Glass Valley               encourage vocations and bring candidates and
                                                                    of Professional Knowledge and Skills (CléA).         and Pôle emploi, in the Bresle Valley where 70%               employers closer together.

                                                       FOCUS                                                             Industry Week
                                                                                                                         In 2019, we opened the doors of our
                                                                                                                         Mers-les-Bains plant to young high school
                                                                                                                         students during Industry Week to encour-
        VERESCENCE SOMME: ADVANCE EACH TALENT WITH AN
                                                                                                                         age these young people to pursue a career
              INDIVIDUALIZED TRAINING PROGRAM                                                                            within our company and to promote the
                                                                                                                         entire range of technical professions in our
                                                                                                                         plants. Learn more
                                                                                         “Support
                                                                                        our talents
                                                                                       in qualifying
                                                                                         projects.”                      Sustainability Report
                                                                                                                         Publicizing our CSR through a report such
                                                                                                                         as the one published in 2018 contributes to
     Verescence continues to run qualifying training courses with its partners. In 2018, our Abbeville                   our attractiveness as an employer. Almost
     site in France celebrated its first CléA certificates.                                                              all the job interviews conducted in 2018-
     “Beyond the practical skills mobilized on a daily basis by our teams, the ‘training’ section of                     2019 showed that candidates had read the
     their CV may lack substance. Which explains our desire to support them in qualifying projects.                      documentation and that our vision in this
     Thus, at the Verescence Somme site, we were able to share the joy of a certain number of them                       area was a source of motivation for them.
     to have obtained, in 2018 – for some, the 1st diploma of their lives! A certificate attesting to a
     level of training validated by the French Ministry of Education and obtained while working at
     Verescence. Whether it is a CPQ course resulting in a diploma valid in the world of industry,
     or a CléA integrating a refresher course on the ‘fundamentals’, the passing candidates see
     their individual employability improved”, notes Patrick Dartois, Human Resources Manager at
     Verescence Somme.

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                                   S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                                         AC T FO R SO C I E TY

          SUSTAINABLE PROCUREMENT

CSR is one of the pillars of the purchasers’ func-                   A ROLE AS A SPRINGBOARD FOR OUR
tion at Verescence. Local procurement, training                      SUPPLIERS
of purchasers to find supply chains in line with                     Verescence relies on its suppliers to support the
our strategy, criteria for selecting our suppli-                     development of its activities and its different
ers and requirement for them to supply us with                       geographical areas. This has an environmental
innovation to complement our eco-design offers:                      and economic impact both for Verescence and
our responsible purchasing approach covers all                       its partners. Some examples:
these dimensions.                                                    • The environmental gains associated with sort-
                                                                     ing as close as possible to the plants (less trans-
LOCAL PROCUREMENT, A KEY OBJECTIVE                                   port, less landfill and wasted natural resources),
Our ambition is to conduct more than 95% of                          Verescence’s strategy -ACT FOR SOCIETY- cre-
our purchases locally in 2022 compared to 90%                        ates jobs that benefit its ecosystem.
in 2018. And in our sights: only select suppliers                    • In addition, we create value for the sup-
who share our interest in the environmental and                      pliers who support us in our interna-
social impact of the supply chain.                                   tional     development,       which   minimizes
                                                                                                                                                                                                               Our glassmaking plant in Covington, Georgia.
                                                                     our carbon footprint and therefore that of our
Our first step was to make 100% of our suppliers                     customers.
aware of our CSR approach. We now want our                                                                                                       BUSINESS ETHICS
main suppliers (France, USA and Spain) to be
able to adhere to our CSR charter by 2020.                                                                                              To date, 100% of Verescence’s exposed popula-              herent in the protection of private data on 100%
                                                                                                                                        tions are trained in corruption risks, anti-com-           of its sites.
Next step: 100% of Verescence sites will pur-                                                                                           petitive practices and information security. The           With regard to the risks of corruption, anti-com-
chase exclusively from suppliers able to produce                                                   FOCUS                                GDPR (EU General Data Protection Regulation)               petitive practices and information security, new
a Responsible Minerals Initiative (RMI) declara-                                                                                        has been in force since mid-2018. This new ob-             training was provided through an e-learning
tion of compliance for gold and tin purchases.                                                                                          ligation has been added to the other texts with            training cycle that covered all exposed employ-
                                                                                                                                        which we strictly comply: the French Sapin2 law            ees regardless of their workplace.
At the same time, in the quality audits of our                               VERESCENCE NORTH AMERICA                                   on transparency and the fight against corrup-
suppliers, their CSR has represented 26% of the                             STRENGTHENS ITS ECOSYSTEM OF                                tion, the Foreign Corrupt Practices Act (FCPA),            Accessible to all, the other component of the
overall score since 2017.                                                         LOCAL SUPPLIERS                                       the UK Bribery Act, essentially.                           system includes a multi-topic alert procedure
                                                                                                                                                                                                   (corruption, conflicts of interest, money laun-
                                                                                                                                        CONCRETE ACTIONS                                           dering and other kinds of mismanagement) cou-
                                                                           To further virtuous co-development, Verescence encour-
                                                                                                                                        The 2018-2019 period is marked by the estab-               pled with the possibility of verifying third parties
                                                                           aged the setting up in the USA of two of its European
                                                                                                                                        lishment of a data register under the GDPR. The            through an official international database, called

                  90%
                                                                           lacquer suppliers in 2018-2019. The goal: to help them
                                                                                                                                        associated GDPR policy is being finalized in mid-          World-Check.
                                                                           identify a business opportunity that will ensure the sus-
                                                                                                                                        2019. In addition to bringing its sites in France
                                                                           tainability of their local presence. What we have to gain:
          of local purchases in 2018                                                                                                    and Spain into compliance with this European               An external audit in 2018 enabled us to improve
                                                                           an end to importing the lacquer used on our Sparta site.
                                                                                                                                        regulation, Verescence is also in the process of           our own risk awareness, challenge ourselves and
                                                                           This approach has also been implemented with one of
                                                                                                                                        implementing it, this time on its own initiative,          refine our mapping. All our suppliers and poten-
                                                                           our packaging suppliers.
                                                                                                                                        across the Atlantic. The company firmly believes           tial partners were subject to an update screening
                                                                                                                                        that it can anticipate and manage the risks in-            in 2018.

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                       S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                                                ECO SOLUTIONS

                                                                                                                                        QUALITY OF SERVICE
                                                                                                                                        AND COMPETITIVENESS

          ECO SOLUTIONS                                                                                                         In our luxury trade, the expected level of quali-
                                                                                                                                ty, the sophistication of products and therefore
                                                                                                                                                                                                            INTERVIEWS

                                                                                                                                the multiplication of manufacturing steps can
                                                                                                                                lead to high levels of waste. Reducing our en-
                                                                                                                                vironmental impact consists first and foremost
                                                                                                                                in simplifying flows and better controlling our
                                                                                                                                industrial processes. Customer satisfaction and
                                                                                                                                the robustness of our industrial processes con-
                                                                                                                                tribute to our overall performance.

                                                                                                                                IMPROVING OUR PRODUCT QUALITY                                           François-Xavier Colin
                                                                           GLASS IS A UNIQUE MATERIAL THAT CAN                  In 2018, Verescence grew faster than expected,                   Supply Chain Director North America
                                                                           BE RECYCLED AN INFINITE NUMBER OF                    falling below the 1% customer complaint rate.
                                                                                                                                                                                               “On Time - In Full” (OTIF) deliveries are
                                                                           TIMES WITHOUT ANY DETERIORATION IN                   Process control, both in glassmaking and finish-               a high expectation for our customers.
                                                                           ITS PROPERTIES. IT IS OUR SOURCE OF                  ing, continued to improve: a 2% increase in effi-              An OTIF of more than 95% in our US
                                                                           INSPIRATION AND CREATIVITY.                          ciency at all our sites. This improvement in oper-             zone is essential for customer satisfac-
                                                                                                                                ational excellence is accompanied by significant               tion, but it also allows us to significantly
                                                                                                                                                                                               reduce additional transport and over-
                                                                           We have long been convinced that the develop-        investment in people and equipment.                            consumption of packaging, optimize
                                                                           ment of eco-designed products and more en-           The target for 2022 is a customer complaint rate               stocks and reduce obsolete stocks.”
                                                                           vironmentally-friendly processes is compatible       of less than 0.5% and improved yields of 5% at
                                                                           with the codes of luxury and beauty. It clearly      all our sites.
 QUALITY OF SERVICE
AND COMPETITIVENESS                                                        meets the demand for “extra soul” that new gen-
                                                                           erations of consumers expect.                        AGILITY AND DIRECT FLOWS
                                                                                                                                Today, our customers are asking us for ever
                                                                           Our objectives:                                      greater agility to deal with the high volatility of
                                                                           • To produce sustainably by reducing our scrap,      the market. The sector is undergoing a major
    OPTIMIZING THE
ENVIRONMENTAL IMPACT                                                       our energy and water consumption, by recycling       transformation, impacted by the development
  OF OUR PROCESSES
                                                                           our waste while improving the working condi-         of e-commerce, the globalization of demand,
                                                                                                                                                                                                        Christophe Cuperlier
                                                                           tions of our employees.                              the emergence of new brands and the growth of
                                                                                                                                                                                                        Quality Director France
                                                                           • To innovate to offer packaging that has less im-   sales in Asia.
                                                                           pact on the environment.                             In 2018, Verescence improved its service in a                  “Verescence has managed to reduce
   INNOVATION AND                                                                                                                                                                              customer complaints to below 1% for
     ECO-DESIGN                                                                                                                 context of high load (91% of OTIF). We have also

                                                                                        0,78%
                                                                                                                                                                                               the entire group.
                                                                                                                                worked to reduce unnecessary steps in our flows
                                                                                                                                                                                               A sustainable control of our processes
                                                                                                                                to shorten our delivery times while reducing our               allows us to satisfy our customers, as
                                                                                                                                inventories. Our ambition for 2022 is to be able               well as to reduce our waste.”
                                                                                    customer claim rate in 2018                 to offer our customers an OTIF of more than 97%
                                                                                                                                while reducing our lead time by at least 3 weeks.

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                                 S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                               ECO SOLUTIONS

           OPTIMIZING THE ENVIRONMENTAL
           IMPACT OF OUR PROCESSES

Producing while controlling energy, water and                      CO2 EMISSIONS                                         WATER
raw material consumption, with lower CO2 emis-                     Carbon dioxide emissions decreased by 1.96%           We are working to optimize the water cycle,                 raising awareness among our customers and of-
sions and waste, is the shared ambition of each                    between 2017 and 2018, a reduction of over            maximize wastewater treatment, and reduce our               fering alternative solutions. After Spain and the
of our sites. A key element of our competitive-                    4,722 metric tons in the CO2 discharged into the      consumption. Each site is autonomous with re-               USA, our Verescence Orne site has completely
ness, the tangible reduction of our environmen-                    atmosphere. The operation of our largest fur-         gard to carrying out an exhaustive monthly water            eliminated the use of solvent-based paints.
tal impact was top on the cards in 2018. With                      nace rebuilt in our Mers-les-Bains plant in 2017      consumption assessment by detailing the quan-
clear ambitions to remain exemplary by 2022.                       contributed significantly to this by allowing us to   tities of water withdrawn, recycled for industrial
                                                                   substitute fuel oil with much less emissive gas.      use and discharged. This data collection allows
ENERGY                                                             Overall, our fuel consumption for the group was       us to diagnose our consumption performance.
In 2018, we continued the modernization of our                     reduced by more than 75% per ton of glass pro-        In 2018, for example, the La Granja site reduced
furnaces. A latest-generation furnace was com-                     duced between 2017 and 2018. Our 2022 objec-          its water consumption by 20% by optimizing                                  INTERVIEW
missioned in Spain in October 2018 and is show-                    tive is to reduce our CO2 emissions to 0.9 met-       the rules for filling its retention basin and elimi-
ing a reduction in gas consumption of around                       ric tons per ton of glass drawn, a 25% decrease       nating all unnecessary consumption. This glass-
10% per year. And this summer 2019, we will                        compared to 2016.                                     making site currently consumes less than 1.7m3
thoroughly modernize our American furnace.                                                                               of water per ton of glass drawn: this is the best
We are therefore continuing to renew our pro-                      WASTE                                                 performance observed in the Verescence group.
duction facilities and we are ultimately commit-                   The objective is to recover 97% of our waste by       Numerous projects are in progress: converting
ted to reducing our overall energy consumption                     2022. By focusing on mapping our waste, we            Mers-les-Bains into a so-called “dry” plant, by
while increasing our production capacity.                          will continue to reduce it and increase its val-      collecting rainwater and treating wastewater. In
We have also launched the ISO 50001 certifica-                     ue. Thus, our Verescence Orne and Verescence          2018, the group succeeded in reducing its water                             Javier Arenal
tion project (energy management reference sys-                     Somme sites have together managed to reduce           consumption by 20%, from 4m3 of water per ton                             EHS Manager Spain
tem) at all our sites by 2020. Our largest glass                   the weight of their lacquering sludge by 40%          of glass drawn to 3.2m3. Our overall objective for
                                                                                                                                                                                         “Our Spanish production site is located
plant in Mers-les-Bains is already certified.                      by implementing a pressing process to recover         2022: 2.5m3 of water consumed per ton of glass
                                                                                                                                                                                         in the municipality of La Granja de San
                                                                   wastewater for reuse in the production process.       drawn, i.e. -55% compared to 2016.                              Ildefonso in Castile and León, declared
                                                                   In 2018, the Verescence group improved its per-                                                                       a biosphere reserve by UNESCO in 2013.
                                                                   centage of reused waste by +2%, for a total of        SOLVENTS (VOLATILE ORGANIC                                      Priority is therefore given to the safety
                                                                                                                         COMPOUNDS)                                                      and preservation of this protected eco-
                                                                   85.9% of recovered waste.
                                                                                                                                                                                         system. In 2018, our water consumption
                                                                                                                         Verescence was a pioneer 10 years ago in the                    reduction project enabled us to reduce
                                                                                                                         development of “water-soluble” lacquers. Our                    our water consumption per ton of glass
                                                                                                                         intention is now to eliminate the use of sol-                   drawn by 20%.”
                                                                                                                         vent-based paints by 2019. To this end, we are

             - 4,722 t                                                                      85,9%                                        - 20%                                                Iso 50001
             CO2 emissions in 2018                                                   waste recovered in 2018                        water consumption in 2018                              Mers-les-Bains site certified in 2019

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                                   S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                              ECO SOLUTIONS

                                                                                                                          PROMOTION & DIFFUSION OF ECO-DESIGN IN                     A TOOL FOR MEASURING ECOLOGICAL
                                                                                                                          THE WORLD OF LUXURY GOODS                                  IMPACT: OUR LCA
                                                                                                                          In our ecosystem, rallying to the ecological cause         We developed a life cycle analysis (LCA) tool
                                                                                                                          is still a difficult exercise: for us and sometimes        with EVEA in 2017 and are now using it in our
                                                                                                                          also for our customers in their own companies.             developments to guide our customers towards
                                                                                                                          Hence our involvement, for educational and ex-             more eco-responsible offers.
                                                                                                                          emplary purposes, in conferences, forums and
                                                                                                                          inter-professional initiatives, such as, in 2018-          This tool takes into consideration the three stag-
                                                                                                                          2019:                                                      es of the life cycle of glassware production: the
                                                                                                                                                                                     ecological impact of raw materials, manufactur-
                                                                                                                          • The presentation of our partnership with                 ing (including packaging), finishing and trans-
                                                                                                                            Bvlgari to create Man Wood Essence in Verre              port.
                                                                                                                            Infini® NEO, during the PCD Paris 2019 exhi-
                                                                                                                            bition;                                                  With this scientifically robust tool, based on the
                                                                                                                          • Our testimony on the compatibility of the                principles of the international standards ISO
                                                                                                                            luxury packaging and sustainable develop-                14040 and ISO 14044, our customers have ac-
                                                                                                                            ment with Guerlain during the Cosmétiquemag              cess to decision support and ipso facto, argu-
                                                                                                                            conference, the Innovation Fragrance Summit              ments that are not tainted with “greenwashing”
                                                                                                                            2018, and the Luxe Pack Monaco 2018;                     for their communication.
                                                                                                                          • Our Upcycled project, in 2018, with the
                                                                                                                            perfumer Givaudan. In another way, it is proof           We want to go even further in 2019 and devel-
                                                                                                                            perfect of our strength of conviction and our            op the first tool for analyzing the recyclability of
                                                                                                                            potential in this area. Exemplary in more than           glass (glass is 100% recyclable but some finish-
      INNOVATION AND ECO-DESIGN                                                                                             one respect: it includes the finishing of mate-          ing touches can hinder its recycling).
                                                                                                                            rials and materials that are still rejected, and
Developing eco-solutions represents an excep-                        REDUCE, REUSE, RECYCLE: OUR ECO-DESIGN                 the eco-design of content.
tional opportunity: an opportunity to reinvent                       PROPOSALS THAT INSPIRE OUR CUSTOMERS
our business and inject it with new, more cre-                       Recycled material (glass recovered from our pro-
ative and sustainable energy.                                        duction sites, known as PIR, or post-consumer,
                                                                     known as PCR), glass weight reduction, refillabil-
Our goal for tomorrow: to push back the current                      ity, “clean” finishes, etc. The eco-solutions that
limits of glass to propose alternatives to plastic                   inspire our eco-responsible offers are varied and
that is not easily recyclable. To respond to this                    can be combined. We advise our customers using
trend of “Glassification,” to the desire of our                      our LCA (Life Cycle Analysis) software and very
customers to “de-plasticize” their beauty pack-                      soon via a recyclability index of our products.
aging, Verescence is studying new R&D oppor-
tunities, with the firm intention of remaining a
pioneer in eco-designed offers in all high-end
beauty segments, including make-up.
                                                                                                                                                                                                                        Our Life Cycle
                                                                                                                                                                                                                        Analysis tool.

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                          S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                           ECO SOLUTIONS

OUR ECO-INNOVATIONS                                                                                                                                                          glassmaking know-how and exper-
                                                                                                                                                                             tise in high-end recycled glass. The

FOR SUSTAINABLE                                                                                                                                                              production of Henry Rose Verre Infini®
                                                                                                                                                                             NEO bottles has reduced the carbon
                                                                                                                                                                             footprint by 6% and water consump-
LUXURY                                                                                                                                                                       tion by 7%.

                                                                                                                         GUERLAIN / ABEILLE ROYALE
                                                                                                                         LIGHTWEIGHT VERRE INFINI® NEO
                                                                         UPCYCLED, THE FIRST 100%                        After the weight reduction of the
                                                                         ECO-DESIGNED BOTTLE                             Orchidée Impériale jar in 2015, Guerlain
                                                                         Upcycled is a lightweight glass bottle          decided to entrust Verescence with
                                                                         concept, decorated with eco-designed            lightening its “Abeille Royale” day and
                                                                         materials, with a glass cap, connected          night care products by using Verre
                                                                         to facilitate access to traceability data       Infini® NEO (incorporating 90% of
                                                                         and containing juice made by Givaudan           cullet from recycling). I.e., a contain-
                                                                         from apple waste. In other words, Up-           er that we manufactured with a 44%
                                                                         cycled is the first fragrance with such         reduction in carbon footprint over one
                                                                         an impressive eco-design and trace-             year (approximately 565 tons less CO2
                                                                         ability. It is the result of an intersectoral   emissions) and a 42% reduction in
                                                                         initiative presented to the Luxe Pack           water consumption.
                                                                         Monaco jury at the end of 2018. This                                                                “REFILLABILITY”, A PROMISING
                                                                         bottle was offered to our customers to                                                              APPROACH
  BVLGARI TO CREATE MAN WOOD
                                                                         make them aware of the possibilities of                                                             Another axis of eco-design: the pos-
  ESSENCE IN VERRE INFINI® NEO,
                                                                         eco-design.                                                                                         sibility of refilling our bottles. With
  DURING THE PCD PARIS 2019
  EXHIBITION                                                                                                                                                                 this in mind, Verescence was the first
  Bvlgari has chosen our premium recy-                                                                                                                                       glassmaker to offer a refillable care jar,
  cled glass, Verre Infini® NEO,                                                                                                                                             equipped with a glass cup that can also
  composed of 90% recycled glass, to                                                                                                                                         be replaced to accommodate a wide
  make the bottles for its new Bvlgari                                                                                                                                       range of treatments. This pure, neutral,
  Man Wood Essence eau de parfum. The                                                                                                                                        waterproof material is compatible with
  bottle contains 25% post-consumer                                                                                                                                          a wide range of formulas.
  glass (PCR), 65% internal cullet (PIR)
  and only 10% raw materials, for a total
  of 90% recycled materials. From the
  2018 volumes, this has made it possible                                                                                HENRY ROSE / MICHELLE PFEIFFER
  to reduce the carbon footprint by 7%                                                                                   VERRE INFINI® NEO
  (- 174 tons of CO2, the equivalent of                                                                                  For the bottle of her new perfume
  51 round-the-world trips by car) and                                                                                   collection, named Henry Rose, Mi-
  water consumption by 7%.                                                                                               chelle Pfeiffer called on Verescence’s

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                                      S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                           ECO SOLUTIONS

SHARED PERSPECTIVES
ON ECO-DESIGN BETWEEN
VERESCENCE & GUERLAIN
VERESCENCE AND MAISON GUERLAIN HAVE A LONG-STANDING RELATIONSHIP WITH SAMSARA
THAT BEGAN IN THE 1980s. MORE RECENTLY, THANKS TO A CONVERGENCE OF VIEWS AT THE
HIGHEST LEVEL - BETWEEN CEO LAURENT BOILLOT FOR GUERLAIN AND THOMAS RIOU FOR
VERESCENCE - THE PARTNERSHIP HAS DEEPENED AROUND RESPONSIBLE PROCUREMENT AND ECO-
DESIGN. EXPLANATIONS BY SANDRINE SOMMER, DIRECTOR OF SUSTAINABLE DEVELOPMENT AT
GUERLAIN, AND SAMUEL JOACHIM, DIRECTOR OF INNOVATION AND DEVELOPMENT AT VERESCENCE.

Sandrine Sommer: Guerlain and Verescence are                          our customers, a new, unexpected satisfaction:
pioneers in eco-solutions in our sector. Our dis-                     they no longer hesitate to carry it in their bags
                                                                                                                                                                                           The new Abeille Royale jar is made of lightweight and recycled glass.
cussions on eco-design since the signing of our                       when they have to travel. The entire range has
charter for responsible procurement have made                         been reviewed; the exercise has now been applied      tion about the container of our skincare prod-           they place in us allow us to take real effective
it possible to first of all realize our project to “re-               to the Abeille Royale day and night care products,    ucts, via our Bee Respect platform, open to the          action. This is also very motivating for our R&D
design” one of our flagship products, one of the                      which will be launched in August 2019. By taking      public since March 2019. “From flowers to bot-           teams. Trust is mission critical for us to progress
most impacting: the Orchidée Impériale skincare                       eco-design a step further, with the choice of Verre   tle”, it gives an overview of the product cycle.         and eco-innovate!
jar. You can easily imagine the nearly blanket dis-                   Infini® NEO.                                          This is one more step in positioning the luxury
belief we were met with then when we said we                                                                                sector on the path to sustainable development.           Sandrine Sommer: The co-creation between
wanted to take up the challenge of modifying one                      Samuel Joachim: Verescence was the pioneer in         Our common understanding on this topic has               Guerlain and Verescence is fruitful!
of our best sellers, and this, against the current of                 the implementation of eco-design solutions by         led me to invite Verescence to participate in the
the luxury codes of the time since the goal was to
make it even more prestigious by reducing it. Well
our idea paid off!
                                                                      developing a post-consumer cullet glass in 2008:
                                                                      Verre Infini®, then more recently Verre Infini® NEO
                                                                                                                            Bee Committee (an ethics committee created in
                                                                                                                            2018 involving external stakeholders), which I                             2006
                                                                      composed of 90% recycled glass (65% post-indus-       surround myself with to advance this awareness
                                                                      trial cullet and 25% post-consumer cullet).           and the development of concrete solutions.                         1st case of Orchidée Impériale
Samuel Joachim: Our life cycle analyses have

                                                                                                                                                                                                        2015
shown that glass mass is a very effective lever in                                                                          Samuel Joachim: We also had the privilege of
reducing the environmental impact of a product.                              “We have taken                                 hosting the Guerlain Sustainable Development
We have therefore tried to reduce it while pre-
serving the aesthetic qualities and mechanical re-
                                                                        eco-design a step further                           Committee, which was held at our production
                                                                                                                            site in Mers-Les-Bains in December 2018.                     lightening of the Orchidée Impériale jars
sistance of the jar. The environmental benefits as                       with the choice of Verre                                                                                                    (-62% in weight)
a result: - 62% CO2, fewer raw materials collected                                                                          Sandrine Sommer: A symbolic, inspiring place
for a clean and luxurious jar.                                                Infini® NEO”.                                 when linking luxury and sustainable develop-
                                                                                                                            ment.
                                                                                                                                                                                                        2019
Sandrine Sommer: Same capacity, same                                  Sandrine    Sommer:       Alongside     Guerlain,
                                                                                                                                                                                            launch of a lightweight jar made of
price but less visibility in store! And yet, suc-                     Verescence is playing the game of transparency        Samuel Joachim: The presence of Guerlain teams                  Verre Infini® NEO for Abeille Royale
cess was achieved. With, on the part of                               right down to traceability by providing informa-      at the heart of our industrial site and the trust                  (-44% CO2 and -42% water)

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S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9    GLASS MADE TO LAST

                                                           APPENDICES

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                                             S U S TA I N A B I L I T Y R E P O R T 2 0 1 8 - 2 0 1 9                                                                                                                               GLASS MADE TO LAST

CSR DASHBOARD AND 2022 OBJECTIVES
VERESCENCE MONITORS ITS SUSTAINABLE DEVELOPMENT PERFORMANCE AND HAS SET AMBITIOUS OBJECTIVES FOR 2022.
The table below gives a brief overview of the group’s progress with respect to each of the three pillars of the «GLASS MADE TO LAST» program.
Details of the figures and progress with respect to each commitment are given in the main body of this report.1

                                                                                                                                                                                                                                                    ACHIEVED              OBJECTIVES
        SDGs                     PILLAR                                             THEME                                                                             KPI                                               UNIT
                                                                                                                                                                                                                                         2016          2017      2018     2019       2022
                                                                    HEALTH AND SAFETY                                Lost time accident frequency rate (TF1)                                                                Rate             6,31       3,22     2,60     < 2,5        70%
                           PEOPLE FIRST                             SKILLS AND CAREERS
                                                                                                                     Career path deployment rate                                                                              %              33%        50%      50%      83%        100%

                                                                                                                     Percentage of female managers                                                                            %              31%        30%      29%      32%        > 35%
                                                                    DIVERSITY
                                                                                                                     Percentage of female recruits                                                                            %              29%        41%      41%      47%         50%

                                                                    LOCAL PRESENCE, GLOBAL STRENGTH                  Local purchasing vs. Purchasing volume                                                                   %              84%        85%      90%      90%         95 %

                                                                                                                                                                                                                       Cumulative
                                                                    PRESERVING EMPLOYMENT AT OUR SITES               Number of CQP/CléA certificates issued                                                                                   14         26       37       29         40
                                                                                                                                                                                                                        number

                                                                                                                     Number of suppliers that have signed the CSR Charter
                       ACT FOR SOCIETY                              SUSTAINABLE PROCUREMENT                          vs. Number of suppliers listed on the Verescence CSR1 panel                                              %              0%         0%       60%      100%       100%
                                                                                                                     (suppliers with a significant effect on Verescence's CSR impact)

                                                                                                                     At-risk employees trained and qualified on corruption risks,
                                                                    BUSINESS ETHICS                                                                                                                                           %              30%       80%       100%     100%       100%
                                                                                                                     anti-competitive practices and information security vs. Total workforce

                                                                                                                     Customer claim rate                                                                                      %           1,43%          1%      0,78%    0,8%       < 0,5%
                                                                    QUALITY OF SERVICE AND COMPETITIVENESS
                                                                                                                     On Time In Full delivery rate (OTIF)                                                                     %              88%       90%       91%     > 94%       > 97%

                                                                                                                     Annual change in the number of bottles made using Verre Infini® NEO                                      %           -30%        +150%      +40%     +50%       +50%
                                                                    INNOVATION AND ECO-DESIGN
                                                                                                                                                                                                                                                                         per year   per year

                                                                                                                     Transformation rate of offers with LCA into eco-designed products²                                       %               -          -       43%      50%         50%
                         ECO SOLUTIONS
                                                                                                                     CO2 emissions (Scope 1: Direct GHG; Scope 2: Energy Indirect GHG)                                      t/tg*            1,2        1,16      1,14      1         0,9
                                                                    OPTIMIZING THE ENVIRONMENTAL                     Water consumption                                                                                      m3/tg*           5,51      4,02      3,19      3,1        2,5
                                                                    IMPACT OF OUR PROCESSES
                                                                                                                     Waste recovery rate                                                                                      %           81,8%        84,5%     85,9%    92%         97%
                                                                                                                                                                                                                        *
                                                                                                                                                                                                                        /tg = per metric ton of glass produced

1
    Data from 2016 to 2018 have been updated (vs. 2017 Sustainability Report) following the sale of our Brazilian subsidiary in 2018.   2
                                                                                                                                            Creation of the LCA software in 2017. Data collected from the year 2018.
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