LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021

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LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
LEADING
SOCIETIES TO A
LOW CARBON FUTURE
Alstom’s sustainability journey 2021
LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
SNAPSHOT OF
        OUR COMPANY

    At Alstom, we develop and
    deliver mobility solutions
                                          Our ambition is clear.
                                                                                                                   3                        questions
                                                                                                                                            to Henri
                                                                                                                                            Poupart-Lafarge
                                                                                                                                            Chairman and CEO of Alstom

                                                                                                                   What makes you think Alstom is in
                                                                                                                   the best position to address the challenges
                                                                                                                   of sustainable mobility?
                                                                                                                                                                                    Our customers can choose from a portfolio of proven
                                                                                                                                                                                    solutions based on Alstom’s unrivalled expertise in both
                                                                                                                                                                                    hydrogen and battery propulsion solutions. This includes
    that provide the sustainable          We are committed to leading the way to                                                                                                    new but also refurbishment options.
                                                                                                                   Because of the major challenges facing society today –
    foundations for the future of         greener and smarter mobility, worldwide.                                 global warming, population growth and rapid urbanisation,        Also important are our advanced signalling and digital
    transportation, guiding societies                                                                                                                                               solutions which increase capacity and reduce emissions
    to a low carbon future.               Green and smart solutions, for all.                                      shortage of natural resources and the unprecedented
                                                                                                                   health crisis experienced in the last two years, the demand      through more efficient operation. In the coming years we
                                                                                                                   for a more environmentally friendly, resource efficient and      will continue to work intensively with all the players in our
                                                                                                                   socially inclusive economy is steadily growing in societies.     value chain to deliver on the same goal: safe and sustainable
                                                                                                                                                                                    mobility for all.
                                                                                                                   As a pure player in the mobility sector, Alstom doesn’t
         A complete range of mobility solutions                                                                    simply provide products and services, instead, we develop,
                                                                                                                   optimise and market a wide range of mobility solutions           What are the key achievements from last
                                                                                                                   that contribute to a low carbon future.                          year that you are most proud of?
         Our broad portfolio covers trams,                                                                         Our strong local presence as well as long-standing
         metros, people movers and                                                                                                                                                  The successful integration of Bombardier Transportation is
                                                                                                                   relationships with our customers and their communities
         monorails, commuter, regional                                                                                                                                              a game-changer for Alstom, allowing us to nearly double in
                                                  Urban rolling      Mainline                         Components   help us bring the right solutions to the market: mobility
                                                                                    Locomotives                                                                                     size, to benefit from strong technological and geographical
         and very high-speed trains.                 stock         rolling stock                                   solutions that are reliable, safe, and sustainable. We are
                                                                                                                                                                                    complementarity, and to offer the broadest portfolio
         Furthermore we offer locomotives,                                                                         convinced that access to smarter, greener transportation
                                                                                                                                                                                    of innovative sustainable solutions to our customers.
         a full range of components,                                                                               can boost social equity and economic development and
                                                                                                                   we make it our mission to support the transition towards         I took great pride in witnessing our collective ability to
         services, infrastructure, signalling
                                                                                                                   sustainable transportation systems.                              achieve such a complex integration, in a time of pandemic,
         and digital mobility solutions.
                                                                                      Integrated                                                                                    while continuing to deliver to our customers. We are now
                                                   Signalling      Infrastructure                     Customised   At Alstom, we are committed to maintain our focus on
                                                                                    urban systems      services                                                                     more than 74,000 people, united in the ambition to lead
                                                                                                                   innovations that transform mobility at large, by pioneering
                                                                                                                                                                                    the sustainable mobility transition and willing to tackle
                                                                                                                   smarter and greener mobility solutions.
                                                                                                                                                                                    the challenges ahead.

                                                                                                                   How can Alstom make a stronger positive
                                                                                                                   impact on mobility in the years to come?
                                    Alstom in numbers                                                              Societies need to move decisively towards zero emission
                                                                                                                   transport for both passengers and freight. Alstom has been
        Over                            Partnering over         More than                         Sales (FY

        150,000 300                                             74,000
                                                                                                                   putting environmental sustainability and social responsibility
                                                                                                  2021/22):

                                                                                                  15.5
                                                                                                                   at the top of its agenda for decades, focussing on developing
                                                                                                                   a wide range of green and innovative technologies to reduce
        vehicles in commercial          cities.                 employees                                          emissions and pollution in catenary-free operations.
        service worldwide.                                      in 70 countries.                  bn euros.

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LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
A TRANSFORMATIVE                                                                                                                                                       MADE IN
    VALUE CREATION                                                                                                                                                         ALSTOM
    MODEL
                                                                                                                                                                        VALUE CREATED
             OUR RESOURCES                                                                                                                                              FOR STAKEHOLDERS
                                                                                                                                         aEBIT

             FINANCIAL CAPITAL                                                                        17%                                5%                                     EMPLOYEES
                                                                                                                                                                                · Total Recordable Injury Rate for
                · €81bn backlog                                                                   AMERICAS                                                                        employees and contractors at 2.3
                   · Equity of €9bn
                                                                                                                                                                                   · 80% of employees are proud to work for Alstom(3)
                                                                                                      62%
                        INDUSTRIAL CAPITAL                                                         EUROPE
                           · 250 sites in 70 countries                                                                                                                                   CUSTOMERS
                                                                                                      7%
                             · Industrial CAPEX: €303m
                                                                                                                                                                                           · Customer satisfaction at 8.1(4)
                                                                            SALES
                                                                          €15.5bn
                                                                                                                                                                                             · Energy consumption of solutions
                                INTELLECTUAL CAPITAL                                                AMECA                                                                                      reduced by 22% vs 2014
                                  · 9,400 patents                                                                      RESPOND TO                DESIGN
                                   · 3.4% of sales dedicated to R&D                                   14%              CLIENT NEED          THE RAILWAY
                                                                                                                                                 SYSTEM
                                    · 19,700 engineers
                                     · 91.3% of trained people
                                                                                                ASIA/PACIFIC                                                                                    PASSENGERS
                                                                                                                          PURCHASE SUB-SYSTEMS                                                   · Nearly 90 million people daily
                                                                                                                         MANUFACTURE TRACTIONS
                                                                                                                                ASSEMBLAGE                                                         transported by Alstom trains
                                      NATURAL CAPITAL                                                                       SYSTEMS
                                                                                                                                 DESAND BOGIES
                                                                                                                                     TRAINS
                                      · 42% of electricity
                                        of renewable origin                                                                                                                                        ENVIRONMENT
                                      · 88% waste recovery
                                                                                                                                     ACHAT DES SOUS-SYSTÈMES                                      · 4.6 g CO2/pass.km
                                      · 92% of products sold last year
                                                                                                                                     ASSEMBLE                                                     · 51% eco-designed solutions
                                        can be reused or recycled
                                                                                                                                     FABRICATION
                                                                                                                                     TRAINS      DES SYSTÈMES
                                                                                              Signalling

                                                                                              15%
                                                                                                                                     DE TRACTIONS ET LES BOGIES
                                      HUMAN CAPITAL
                                                                                                                                                                                                 SUPPLIERS
                                      · 74,100 employees from
                                                                                                                                                                                                 · 60% of Alstom products
                                        166 nationalities
                                                                                                                                                                                                   costs purchased
                                    · Top Employer Europe, Asia Pacific       Rolling stock                 Services

                                                                               56                           22%
                                                                                                                                                                                               · Founding member of “Railsponsible”
                                      and North America
                                                                                      %                                                    INSTALL
                                                                                                                                       INFRASTRUCTURE
                                BRAND CAPITAL                                                                                          AND SIGNALLING                                      SOCIETY
                              · 1,000 customers among which 300 cities
                                                                                              Systems                                                                                     · 27% effective tax rate(5)

                         SOCIETAL CAPITAL
                       · ISO 37001(1) antibribery certification
                                                                                                7%                                                                                      · > 245,000 beneficiaries
                                                                                                                                                                                      from social programme

                    · 62% of total purchase volume covered
                       by screenings, online assessments                                                                 MAINTAIN                                               SHAREHOLDERS
                       and/or on-site audits(2)
                                                                                                                                         GIVE THE KEY
                                                                                                                                         TO OPERATORS                           · 35% pay-out ratio(6)
             · €2.2m foundation budget

                                                                                                                                                                  (3)   Employee engagement survey 2021.
                                                                                                                                                                  (4)   Net Promoter Score.
     (1) For countries and operational sites in all its regions.                                                                                                  (5)   Before PPA.
     (2) As per level of risks.                                                                                                                                   (6)   Proposed at July 2022 Shareholders’ meeting.

4                                                                                                                                                                                                                                       5
LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
Decarbonising transport
                                                                                                                                         medical services, and cultural activities.      by transport, focusing first on switch to                      as many connections within or between
                                                                                                                                                                                         lower emitting modes.                                          major cities worldwide still cannot be
                                                                                                                                         Deep decarbonisation is needed in all                                                                          made with public transport. In addition,
                                                                                                                                         sectors to reach the aims of the Paris          The crucial importance of transport sector                     specific plans and funding are targeting
                                                                                                                                         Agreement but has proven particularly           emissions in achieving Paris Agreement                         the development of hydrogen production
                                                                                                                                         difficult in transport until now. Transport     targets is now well recognised by public                       capabilities and usage in Europe, France,
                                                                                                                                         carbon emissions account for around             authorities. Many countries have already                       Germany and Spain amongst other
                                                                                                                                         27% of global emissions and have been           scheduled a halt to sales of new cars                          countries.
                                                                                                                                         increasing steadily. If current trends          equipped with combustion engines
                                                                                                                                         continue they could represent 40% of            e.g. Norway (2025), Germany (2030),                            Biofuels continue to raise questions
                                                                                                                                         total emissions by 20302. Decarbonisation       Denmark (2030), France (2040), United                          around land usage, environmental
                                                                                                                                         of transport requires strong emission           Kingdom (2040) and Spain (2040).                               benefits and operational costs, and
                                                                                                                                         reductions even as increasing global            Cities and provinces are also taking                           should therefore be preferred for use

    SOCIETIES ARE FACING
                                                                                                                                         populations and urbanisation trends drive       up the challenge and planning a ban                            for transport modes that have limited
                                                                                                                                         up transport demand. Decarbonisation            of diesel or fossil-fuel vehicles at local                     alternative decarbonisation pathways.
                                                                                                                                         of freight, which represents around 40%         level (e.g. Madrid, Paris, Amsterdam,
                                                                                                                                         of transport emissions3, represents an          Athens, Mexico, Munich, and regions like
                                                                                                                                         additional challenge as the volume of           California and Quebec). Decarbonising

    UNPRECEDENTED
                                                                                                                                         goods being transported continues to            passenger traffic through electrical
                                                                                                                                         rise rapidly.                                   transport powered by renewable
                                                                                                                                                                                                                                                        Worldwide CO2 emissions by Sector
                                                                                                                                                                                         energy appears as the most logical
                                                                                                                                                                                                                                                        (2018)
                                                                                                                                         The transport sector still relies heavily       path. Hydrogen also offers a credible

         SUSTAINABILITY
                                                                                                                                         on fossil fuels as a primary source of          long-term alternative for applications                                 6%           27%
                                                                                                                                                                                                                                                                                                Transport
                                                                                                                                         energy, representing 97% of energy              requiring high autonomy. Long-term
       We must                                                                                                                           demand, and with little progress on this        investments embedded in the recovery                                                                   Industry
                                                                                                                                         in recent years. Today most actors agree        packages unveiled by governments in the
    dramatically shift                                                                                                                   that the “Avoid Shift Improve” approach,        EU, USA, India and Canada since 2020
                                                                                                                                                                                                                                                                                                Buildings

       ” CHALLENGES
                                                                                                                                                                                                                                                           39%                   28%
    transport from                                                                                                                       which defines the priorities for action,        have demonstrated a willingness to focus                                                               Other
                                                                                                                                         should be the way to decouple mobility          on electrical and shared mobility as a
    road to rail.                                                                                                                        needs from CO2 emissions generated              priority. Investment needs to remain high
                                                                                                                                                                                                                                                       Source: IEA - 2019. Emissions from energy combustion
                                                                                                                                                                                                                                                       Electricity and Heat Reallocated

                       Ursula von der Leyen,
                       2021, European          Time for change                                                                           Rail is the answer
                       Commission President    Our climate is warming. Greenhouse gas      rise to 1.5 °C. To enable this, global
    COP26 UN Climate Change                    emissions caused by human activity have     emissions must peak as soon as possible,      In contrast to other motorised modes of         Alstom supports a strong push to shift                        strong contribution to decarbonisation
    Conference in Glasgow, Nov 2021            already led to an increase in average       before declining dramatically. Despite        transport rail is inherently low emission.      passenger and freight transport demand                        investment in rail brings many other
                                               global temperatures by around 1.1°C1        widespread awareness and reinforced           Rail makes up just 2% of total transport        from higher emission modes to rail. This                      benefits. It supports equal access
                                               over pre-industrial levels. This warming    collective efforts, emissions reached their   emissions. Yet it accounts for 8% of            should be accomplished by increasing rail                     to transport, brings social progress
                                               is leading to more extreme weather          highest ever level in 2021 (+6% versus        global passenger travel, and 7% of freight      transport capacity through investment                         and economic development, and has
                                               events, increased frequency of droughts,    2020).                                        activity3. In France very high-speed rail       in rolling stock and infrastructure,                          positive impacts on air quality and
                                               floods, and bushfires amongst other                                                       can bring up to 60 times fewer carbon           incentivised by regulation. As well as a                      public health.
                                               catastrophic consequences. Under the        At the same time persistent inequalities      emissions per passenger kilometre than
                      Transport                                                                                                                                                          Average GHG emissions for powered transportation modes (gCO2/pkm)
                                               Paris Agreement the global community        continue and large sections of the global     an equivalent flight.

                  27%
                      generates                has coalesced around the ambitious goal     population continue to have limited                                                                     19
                                               of achieving carbon neutrality by 2050,     access to mobility, impairing their ability   Highly efficient electric rail vehicles are
                                                                                                                                                                                                  Rail
                                               in order to limit global temperature        to access education, employment,              already running with zero well-to-wheel
                  of CO2 emissions                                                                                                       emissions when supplied with renewable                          39
                                               Potential Global Temperature Increases                                                    electricity. Emissions from diesel rail                   Thermal 2 & 3 wheels
                  from energy use
                                                                                                                                         operations can already be avoided for
                                                                     2.5-2.9°C Expected based on current policies & actions              passenger transport using battery and                                             63
                                                                                                                                         hydrogen solutions; these technologies                    Bus
                                                                     2.4°C Likely to be reached based on current commitments
                                                                                                                                         are also now being developed for freight                                                                        123
                                                                     1.5°C Maximum increase targeted                                     applications.
                                                                                                                                                                                                  +1,000 km flights
                                                                     1.1°C Temperature increase today
                                                                                                                                                                                                                                                                          148
     1 IPCC 6th Assessment Report - 2021                                                                                                                                                          Thermal car
                                                                                                                                         2 Source: International Transport Forum 2019.   Source: www.iea.org/data-and-statistics/charts/well-to-wheel-wake-wing-ghg-intensity-of-motorised-passenger-
                                                                                                                                         3 Source: IEA.                                  transport-modes in 2021.

6                                                                                                                                                                                                                                                                                                             7
LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
ALSTOM’S                                                                                                        Our people and our communities
                                                                                                                                    are our strength
                         MISSION:                                                                                                   We understand the scale of the challenges we face,
                                                                                                                                    but we are confident in our ability to succeed. This is
                                                                                                                                    based on the immense talents and enthusiasm of our
                                                                                                                                    74,100 employees, who all subscribe to our values of
                                                                                                                                                                                                Alstom is committed to contributing to the social and
                                                                                                                                                                                                economic development of our communities, in every
                                                                                                                                                                                                one of the 70 countries where we are present. We see
                                                                                                                                                                                                this as a vital part of being a good corporate citizen.
    Support the transition to sustainable transport systems                                                                         being Agile, Inclusive and Responsible. Our utmost
                                                                                                                                    priority is keeping our people safe, while empowering
                                                                                                                                                                                                Our community actions are coordinated at a country
                                                                                                                                                                                                level, allowing us to be responsive to specific local
    by delivering mobility solutions that are safe, environmentally                                                                 them to contribute to our shared mission. We are
                                                                                                                                    actively increasing and embracing our diversity, which
                                                                                                                                                                                                needs. Alstom also funds the Alstom Foundation, which
                                                                                                                                                                                                supports projects to boost socio-economic development
    friendly, reliable and inclusive everywhere in the world                                                                        we see as a source of strength, and taking more care
                                                                                                                                    for the health and wellbeing of our employees.
                                                                                                                                                                                                and sustainability in disadvantaged communities
                                                                                                                                                                                                in countries where we operate.

    Answering the call
    in a responsible way                                                                                                                                                                                        Momentum to accelerate action on
    At Alstom, we believe sustainable mobility is key                                                                                                                                                           sustainability is growing.The EU
    to sustainable development, and that everyone                                                                                          Today,                                                               taxonomy for sustainable activities
    should have access to mobility through public
    transport. Our contribution is to deliver mobility
    solutions that are safe, sustainable, attractive and
                                                                                                                                           99%
                                                                                                                                           of Alstom
                                                                                                                                                                                                                (a classification system establishing
                                                                                                                                                                                                                a list of environmentally
                                                                                                                                                                                                                sustainable economic activities)
    reliable everywhere in the world, because ultimately                                                                                revenues are EU                                                         will significantly direct investments
    this will increase social equity and inclusion. This                                                                               taxonomy eligible.                                                       towards sustainable projects.
    mission lies at the heart of our company strategy.
                                                                                                                                                                                                                Alstom welcomes this, as well as
    Alstom’s core business and solutions directly                                                                                                                        the public policies and legislation emerging around the world that help
    contribute to sustainable development, which is                                                                                                                      unlock the investment required to make economic activity and mobility
    reflected in one of the United Nation’s Sustainable                                                                                                                  more sustainable.
    Development Goals: “Providing access to safe,
    affordable, accessible and sustainable transport
    systems for all, notably by expanding public transport
    by 2030”. Transport’s essential contribution to                We must also reinforce collaboration on decarbonisation
    sustainable development is represented by its                  with our customers and our suppliers as we have a shared
    ability to boost economic development, promote                 responsibility for all the emissions in our value chain.
    employment and well-being, and reduce inequality
    and exclusion.                                                 Alstom’s strong contribution to decarbonisation is also               Our vision at the heart
    Contribution
                                                                   reflected at the European level. Some 99% of Alstom’s
                                                                   activities are classified as eligible under the EU’s taxonomy
                                                                   on sustainable activities.
                                                                                                                                         of our corporate strategy
    to net zero
                                                                                                                                         Global trends will continue to spur growth in the rail industry. Our strategy Alstom in Motion 2025

                                                                   Together for success                                                  - or AiM 2025 - positions us to capture this growth and extend our innovative leadership of the
                                                                                                                                         mobility industry. This will be accelerated by the successful integration of Bombardier Transportation.
    Decarbonising transport is also key to limiting the
    effects of global warming. Alstom will make a strong           At Alstom, we always act with the highest levels of integrity,        It builds on well-established strategic pillars.
    contribution to the decarbonisation of mobility, and           and we have a strong ethics and compliance focus. This
    our emission reduction targets are Science Based, in           allows us to be a trusted partner for our customers,                                                        GROWTH               INNOVATION                     EFFICIENCY
    line with Paris Agreement trajectories. In the longer          our suppliers and all our stakeholders. We work with                                                        by offering          by pioneering smarter          at scale,
    term we have committed to net zero carbon in our               our suppliers to help them improve their sustainability                                                     greater value        and greener mobility           powered by
    value chain by 2050. Delivering on this promise will           performance.                                                                                                to customers         solutions for all              digital
    require us to continue to innovate to bring new and
    improved energy efficient solutions to the market, as          Alstom’s mission to improve access to sustainable and
    well as to propose efficient alternatives to diesel in rail.   equitable public transport is clear, and strongly underlined          Everything we do is dedicated to making the world more sustainable. That’s why our AiM 2025 strategy
                                                                   by our priorities. Following the successful integration of            fully integrates our Corporate Social Responsibility commitments. The deployment of the strategy
                                                                   Bombardier Transportation, we have the most global reach              is driven by one Alstom team with one set of common values: Agile, Inclusive and Responsible.
                                                                   and breadth of product range in our industry. We are united
                                                                   in our purpose and together we will lead the way to greener
                                                                   and smarter mobility.
8                                                                                                                                                                                                                                                         9
LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
A COMMITTED
     ORGANISATION
                                                                                                                                                                                                      Our 2025 Sustainability & CSR targets
                                                                                                                                                             All goals have been established considering risk and materiality assessments, dialogue with stakeholders, and recognised
                                                                                                                                                             CSR standards and frameworks.

                                                                                                                                                                         ENABLING                                                                                      CARING
                                                                                                                                                                         decarbonisation of mobility                                                                   for our people

                                                                                  Our sustainability                                                         -25%1 100%                                   100%2 25%                                         Total
                                                                                                                                                                                                                                                            recordable
                                                                                                                                                                                                                                                                          Global
                                                                                                                                                                                                                                                                          Top
                                                                                                                                                                                                                                                                                          28%                 Learning
                                                                                                                                                                                                                                                                                                              culture:

                                                                                  targets fully
                                                                                                                                                             energy               main solutions          electricity         recycled                      injury rate
                                                                                                                                                                                                                                                                          Employer
                                                                                                                                                                                                                                                                                         women in
                                                                                                                                                                                                                                                                                                              22   hours
                                                                                                                                                                                                                                                                 2
                                                                                                                                                             consumption          covered by              from                content in                                                 management,
                                                                                                                                                             in solutions.        ecodesign               renewable           newly-developed               at            certification. engineering and per employee

                                                                                  integrated in our                                                                               approach.               sources.            rolling stock.                                             professional roles. per year.

                                                                                  strategic framework                                                                    ACTING                                                                                        CREATING
                                                                                                                                                                         as a responsible business partner                                                             a positive impact on society
                                                                                  At Alstom, our sustainability targets are fully integrated into our
                                                                                  Alstom in Motion 2025 strategy, underlining our determination
                                                                                  to make Corporate Social Responsability (CSR) achievements
                                                                                                                                                             100%                                                    500                                    12                     250,000
                                                                                                                                                             of suppliers monitored or assessed                      suppliers trained in                   countries              beneficiaries per year from local
                                                                                  a central part of our company performance. Our strategy                    on CSR and E&C standards                                Sustainability & CSR.                  with CSR label.        actions and Alstom Foundation.
                                                                                  has been designed based on the analysis of key challenges                  according to their level of risk.
                                                                                  and stakeholders’ expectations as collected during Alstom’s
                                                                                  Materiality assessment. From this basis, we developed our
                                                                                  Sustainability and CSR strategy and its deployment roadmap,
                                                                                  validated and monitored by the Board of Directors and the                                                                                  2030 Carbon targets
                                                                                                                                                                                                                                             Based on Science3
                                                                                  dedicated Sustainability & CSR Committee of the Alstom
                                                                                  Leadership Team.                                                           40%                                                                                            35%
                                                                                                                                                             reduction in direct and indirect (scope 1 & 2) CO2 emissions                                   reduction in indirect emissions from use of sold products in
                                                                                                                                                             from Alstom sites vs. FY2021/22.                                                               gCO2/pass.km and gCO2/ton.km vs. FY2021/22.

     A recognised and well-­established                                                                                                                                          Alstom is committed to achieving net zero carbon in value chain by 2050.

     Sustainability & CSR performance
                                                                                                                                                        1 Compared to 2014. 2 At end 2025. 3 Targets to be submitted for Science-Based Target initiative validation.

                                                                                                                      Accolades
                                                                                                                     and awards
                                                                                                                                                        Driving change,
     Alstom has developed a strong growth                    expense of responsibility. Alstom’s CSR
     momentum in recent years. This is already               performance is positively evaluated
     being further boosted with the successful               on a regular basis by numerous rating
     integration of Bombardier Transportation.
     Importantly, growth has not come at the
                                                             agencies.
                                                                                                                                                        locally
       Here is a snapshot of some of Alstom’s CSR ratings.
                                                                                                                     Platinum Top 1%                    Regional implementation of our CSR
                                                                                                                    Ecovadis CSR rating (74/100)        policy is undertaken by a local network
                                                                                                                                                        of Sustainability & CSR Champions.
                                                                                                                            Top 100                     Each local Champion supports their
                                                                                                                                                        Managing Director to drive Alstom
                                            DISCLOSURE INSIGHT ACTION

         11th consecutive year,              A-rating on                      Member of CAC40 ESG                 Most Sustainable Corporations
          top 5% in industry               climate change                    (with a score of 67/100)            in the World (Corporate Knights)       policies and processes locally; manage
                                                                                                                                                        local CSR initiatives; foster positive
                                                                                                                                                        relationships with local organisations
                MSCI                        ISS-oekom                            Sustainalytics
                                                                                                                         ISO 26000                      and communities; develop and maintain
                                                                                                                  label awarded for France, Italy,      the Country Community Action Plan; and
               AA rating                    Prime status                             Rank 4th                      UK, Australia, Spain and India
                                            with B-rating                       as industry leader -                                                    contribute to report and communicate
                                                                              score 19 (lower better)                                                   on CSR initiatives, good practices and
                                                                                                                                                        Alstom Foundation activities.

10                                                                                                                                                                                                                                                                                                                         11
LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
SUSTAINABLE                                                                                                  FRANCE
                                                                                                                  Testing of the first hybrid electric-die-

     MOBILITY
                                                                                                                  sel-battery trains for four French re-
                                                                                                                  gions Occitanie, Grand-Est, Nouvel-
                                                                                                                  le-Aquitaine and Centre-Val-de-Loire
                                                                                                                  has been concluded successfully. The
                                                                                                                  existing regional diesel fleet will be                                     GERMANY

     EVERYWHERE
                                                                                                                  refurbished to contribute to reduce                                        The city of Stuttgart is making moves to
                                                                                                                  energy consumption and greenhouse                                          scale up public transport capacity on its
                                                                                                                  gas emissions without the need to up-                                      existing infrastructure. The first step will
                                                                                                                  date the current infrastructure. Start                                     be to rejuvenate 215 S-Bahn and 118
                                                                                                                  of commercial operations is planned                                        regional trains by retrofitting them with

     A glimpse of where we are making a difference
                                                                                                                  in 2023.                                                                   Alstom’s latest digital signalling technol-
                                                                                                                                                                                             ogy ETCS and Automatic Train Operation
                                                                                                                                                                                             in automation level 2 (GoA2). Passen-
                                                                                                                                                                                             gers will enjoy refurbished trains and
                                                                                                                                                                                             can look forward to reliable, punctual,
                                                                                                                                                                                             and more frequent rail service with fast-
                                                                                                                                                                                             er connections based on rail automation.

            CANADA
            In Montreal, we supply the Metropolitan
            Express Network with a complete automatic
            and driverless light metro system specifically
            adapted to climate conditions and highly
            accessible. It is ecodesigned and integrates
            innovations for energy performance, such
            as LED lighting, predictive maintenance, air
            conditioning regulation, etc. The project is
            expected to save 500k to 1 million tons of                                                                                                                                INDIA
            CO2 over 25 years.
                                                                                                                                                                                      Alstom will supply and maintain 30 trains for
                                                                                                                                                                                      India’s first regional rapid transit system, linking
                                                                                                                                                                                      Meerut to Delhi, plus 10 trains for local transit in
                                                                                                                                                                                      Meerut. The trains will be manufactured locally
                                                                                                                                                                                      at Alstom’s Savli and Maneja factories in Guja-
                                                                                                                                                                                      rat. The trains will be the fastest in operation in
                                                                                                                                                                                      India, with a design speed of 180 km/h. Smart
                                                                                                                                                                                      ergonomics, high safety standards, low life cycle
                                                                                                                                                                                      costs and high recycleability make these trains
                                                                                                                                                                                      an attractive and sustainable choice to promote
                                                                                                                                                                                      public transport and significantly reduce traffic
                                                                                                                                                                                      congestion and air pollution.

              PANAMA
              We have implemented Mastria, the world’s
              first multimodal supervision and mobility
              orchestration solution in Panama City.
              The platform uses AI to provide operators
              and transport authorities with enhanced           UNITED KINGDOM
              passenger flow management tools. It also          The UK’s iconic Pendolino™ train fleet operated
              allows them to efficiently adapt their offer in   by Avanti West Coast is to undergo the coun-                            SOUTH AFRICA
              real time, such as to impose social distancing    try’s biggest ever train refurbishment, which
              requirements to maintain high standard                                                                                    Alstom’s Gibela JV builds passenger trains for the na-
                                                                will create scores of high-skilled engineering                          tional railway agency. The 78-hectare Gibela Dunno-
              sanitary conditions.                              jobs and secure hundreds more roles through-                            ttar plant is a world-class hub for train manufactur-
                                                                out the network. The overhaul will focus on                             ing excellence in the African continent and was built
                                                                onboard facilities, with passengers benefitting                         with an investment of more than €50 million. With
                                                                from more comfortable seating, better lighting,                         a high local content contractual commitment, Gibela
                                                                new interiors, and more. Performance will also                          is strongly engaged in developing local supply chains
                                                                be improved through new maintenance pro-                                and sourcing components from local companies.
                                                                grammes, ensuring the fleet can continue to                             79 South African suppliers provide critical parts for
                                                                serve communities for years to come.                                    the trains, such as cables, subsystems and interiors.

12                                                                                                                                                                                                                                           13
LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
PRIORITIES OUR CSR PRIORITIES OUR CSR PR
      Enabling
      decarbonisation
      of mobility                                      Creating
      We embed responsible innovation at the           a positive impact
      very core of our R&D strategy to create and
      develop an extensive range of low carbon/
      high-performance mobility solutions.
                                                       on society
                                                       We are committed to accelerating local
                                                       development, wherever we operate, and
         P16-21                                        to supporting inspiring and transformative
                                                       community projects.

                                                          P26-29

                    Caring for
                    our people                                            Acting as
                    Our responsibility journey is a
                    collective one. That is why we
                    make sure all our teams are on
                                                                          a responsible
                    board and that Alstom is a safe,
                    inclusive, and great workplace.                       business partner
                                                                          We always act with integrity and purpose,
                                                                          building strong partnerships to thrive
                       P22-25                                             as a trusted and responsible leader.

                                                                             P30-31

 14                                                                                                                   15
LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
Destination? Net zero.
                                                                                                                                                          Rail’s low emissions already make it the most environmentally friendly
                                                                                                                                                      powered transport mode. An increasing number of our customers are powering
                                                                                                                                                         our electric rail vehicles with renewable electricity, for full zero-emission
                                                                                                                                                      transport. To achieve net zero carbon through our value chain by 2050 we will
                                                                                                                                                      continue greening our operations, and work together more intensively with our
                                                                                                                                                                                   customers and suppliers.

                                                                                                                                   We have defined our Climate
                                                                                                                                   Strategy aiming for net zero                                                Net zero carbon roadmap
                                                                                                                                   carbon across our whole

     ENABLING
                                                                                                                                   value chain by 2050.

                                                                                                                                   Alstom carbon                              Contribution              Reduction of CO2 emissions in our value chain                    Carbon
                                                                                                                                   footprint (FY 2021/22)                     to net zero                                                                                removal

     DECARBONISATION
                                                                                                                                   Scope 1 & 2                                mobility              Scope 1 & 2              Scope 3            Scope 3
                                                                                                                                   Direct and indirect                                              Energy and Fuel          Supply Chain       Sold Products
                                                                                                                                                                              Quantify                                                                                  Balance
                                                                                                                                   emissions                                  and increase                                                                              the remaining
                                                                                                                                                                                                             2025 Operational targets on Energy
                                                                                                                                   230 ktCO2                                  avoided CO2                                                                               CO2 emissions

           OF MOBILITY
                                                                                                                                                                              emissions                            2030 CO2 reduction targets                           by sequestration
         To offer the French                                                                                                       Scope 3                                    through our                                                                               projects
                                                                                                                                   Use of Sold Products                       solutions
     Regions other alternatives                                                                                                    32,000 ktCO2
                                                                                                                                                                                                    Reduce absolute
                                                                                                                                                                                                    emissions by 40%
                                                                                                                                                                                                                             Target to be
                                                                                                                                                                                                                             disclosed in
                                                                                                                                                                                                                                                Reduce emissions
                                                                                                                                                                                                                                                intensity by 35%
     to diesel by 2024-2025,                                                                                                       Scope 3
                                                                                                                                                                                                    vs FY2021/22             FY2022/23          vs FY2021/22
                                                   At Alstom, we believe that net zero mobility is not only possible,                                                                                                                           (rolling stock)
     we are working on                                                                                                             Business travels
                                                   but genuinely vital to the success of the Paris Agreement. We                   6 ktCO2
     different solutions, such                     embrace this challenge as we mobilise our know-how to provide                                                                                          Raise awareness among Alstom employees
     as hybrid, hydrogen and                       the most attractive, inclusive and advanced rail solutions: the
                                                                                                                                   Scope 3
                                                                                                                                   Logistics
     battery-powered trains,                       lowest emission mass transport mode for passengers and                          33 ktCO2                                         The 2030 reduction targets will be submitted to SBT initiative for validation in the course of 2022
     as well as the partial                        freight. Achieving carbon neutral transport by 2050 requires a
                                                   decisive modal shift towards rail, and we welcome the policies
     electrification of lines.
                      Carole Desnost
                                      ”            and investments that will unlock this shift. At the same time, we
                                                   continue to improve our own operations to substantially reduce our              CONTRIBUTING TO LOW CARBON                                At the same time Alstom is deploying a             on direct train-to-train communication,
                      SNCF Group Director          direct carbon footprint.                                                        MOBILITY THROUGH GAME-                                    complete signalling system for Line 18             brings the intelligence of the system on-
                      of Technology, Innovation                                                                                    CHANGING DIGITAL TECHNOLOGIES                             of the Île-de-France network in Paris.             board the trains and allows an increase
                      and Projects.                                                                                                                                                          Urbalis Fluence TM* automatic train                of 30% in capacity while decreasing
                                                                                                                                   Alstom primar y contributes to                            control, an innovative solution based              energy consumption.
                                                                                                                                   development of net zero mobility

                                                  Our 2025 targets
                                                                                                                                   by delivering efficient rail systems
                                                                                                                                   enabling low carbon transport. Digital
                                                                                                                                   technologies can bring large carbon
                                                                                                                                   benefits. For example, SNCF Réseau
                                                                                                                                   has chosen Alstom’s digital signalling
                                                                                                                                   technology AtlasTM for the Paris-Lyon
                                                                                                                                   high-speed line, the busiest route in

                25%                      100%                                25%                        100%
                                                                                                                                   Europe. Thanks to the new ERTMS
                                                                                                                               1   system, Alstom allows an increase in
                                                                                                                                   the capacity of the line from 13 to 16
              energy reduction            of newly developed           recycled content in newly-         electricity supply       trains during peak hours, allowing more
                in solutions.           solutions ecodesigned.          developed rolling stock.         from renewables.          sustainable mobility capacity on the
                                                                                                                                   existing infrastructure.
                        Alstom committed to science-based        targets within the frame of the Paris Agreement.
                                                                                                                                   *World-first implementation for Métropole Européenne
                                                                                                                                   de Lille
     1: At end 2025

16                                                                                                                                                                                                                                                                                          17
LEADING SOCIETIES TO A LOW CARBON FUTURE - Alstom's sustainability journey 2021
Innovation for energy efficiency                                                                                                                                        Ecodesign for
                The largest part of our carbon footprint comes from the energy use of our solutions                                                                                                 circular solutions
               during operation. Our teams therefore strive to increase energy efficiency by deploying
                                                                                                                                                                            Incorporating ecodesign into our product development process is key to reducing
                 the most advanced technologies, materials and designs in our electric trains, and
                                                                                                                                                                        the environmental impacts of our products and solutions. We take a design, lifecycle and
                by offering green traction options to replace diesel trains, taking us closer to carbon                                                                impacts approach to reduce environmental impacts right throughout the product lifecycle.
                             neutrality and reducing operating costs for our customers.                                                                                            This is an important part of our shift towards a circular economy.

                                                                                                                                                                METROPOLISTM, SETTING ECODESIGN                                                                    We adopt a systematic
                                                                                                                                                                AS A GOLD STANDARD                                                                                   ecodesign process,

                                                                                                                                                                                                                                                                    100+
                                                                                                                                                                                                                                                                   fostered by network of
                                                                                                                                                                With its extensive track record,
              HOW DO WE MAKE IT HAPPEN?                                                     WHERE WE STAND TODAY                                                low lifecycle costs and keen focus
                                                                                                                                                                on passenger experience, Alstom’s

                                                                                         22%                                                                    Metropolis metros set the standard in                                                                ecodesign experts.
                    Monitoring                          Continuously                                                Freight solutions:
                                                                                                                                                                reliable and attractive metro service.
                                                                                                                    emissions amount
                energy efficiency of our                 innovating                                                                                             Fully automated or manually operated,                                                              The recently developed

                                                                                                               9.2
              solutions through a unique                                                 energy reduction            to an average of                                                                                                                               low-impact material
                                                    for enhanced performance,                                                                                   Metropolis stands for energy-efficient,
              KPI (based on standardised                 establishing energy              in our solutions                                                      quiet and safe operations. Also, by            from Voyages SNCF and Alstom, brought               catalogue is a key tool
             sets of operating conditions).         efficiency as one of our top            since 2014.                        gCO2/ton.km.                     choosing low impact materials whenever         together on a common platform during the           to improve performance.
                                                          six R&D priorities.                                                                                   possible (sustainable wood flooring,           definition and co-specification phases of the
                                                                                                 Passenger transport solutions:                                 organic grease, etc.) Alstom strives to        project: a first in Europe. Thanks to a more
                     Adopting

                                                                                                4.6
                                                         Integrating                            emissions amount to an average of                               pave the way towards a more circular           compact architecture, the TGV M power car
           a systematic design, lifecycle and                                                                                                                   approach to production and operation.          brings the added value of lower acquisition

                                                                                                                                                                                                                                                                          51%
                                                        energy efficiency as
             impacts approach to drive the              a key priority in our                                gCO2/passenger-km.                                                                                and maintenance costs while offering 20%
              reduction of energy demand.               ecodesign process.                                                                                      LAUNCHING THE TGV M POWER CAR                  more capacity. The return of energy to the
                                                                                          This confirms that Alstom’s solutions rank                                                                           catenary during braking, eco-driving and                  of newly developed
                                                                                                                                                                                                                                                                            solutions with
                                                                                          amongst the most efficient in the transport                           This ecodesigned TGV very high-speed           the increasingly aerodynamic shape of                         ecodesign in
                                                                                                sector for low carbon mobility.                                 train (scheduled to enter service in 2024)     the nose enables overall energy savings of                     2021/22.
                                                                                                                                                                benefits from the combined know-how            approximately 20%.

     ENERGY EFFICIENCY IMPROVE-                      motor, high performance regenerative           it captures more than 99% of the
     MENTS AND ADVANCED FEATURES                     electrical braking, and energy saving          recoverable energy in braking mode and
                                                     modes in stabling. Those trains are            re-injects it into the network or back
     Thanks to its permanent focus on inno-          also offering reduced noise in operation       to the power grid, delivering up to 40%
     vation, Alstom is pursuing its objectives       and an ecodesign approach using more           savings on energy consumption, with
     to enhance efficiency through improved          environmentally friendly materials (such       corresponding reduction in operating
     traction systems, weight reduction, im-         as recycled materials) and high rate of        costs. Additionally, Hesop facilitates
                                                                                                                                                                        Alstom’s ecodesign approach is based on lifecycle thinking, consideration
     proved aerodynamics and heating/air             recyclability.                                 heat dispersion, reducing the ventilation                           of customer and stakeholder expectations, and continuous improvement.
     conditioning systems, ecodriving, braking                                                      requirements of underground operations.
     energy recovery and storage, and optimi-        HESOPTM: SAVING ENERGY,                        To date, 123 Hesop converters have
                                                                                                                                                                         Our 5 priorities                                                  Product lifecycle based on regional train
     sation at system level.                         GENERATING VALUE                               been ordered or delivered for metro and          Energy
                                                                                                    tramway projects worldwide.                                                                      Reduction                             Coradia Polyvalent operating in France
                                                                                                                                                     efficiency
     TRAINS OF THE FUTURE                            Our expertise in energy efficiency has                                                                                                          of noise and
                                                     led us to create Hesop: an advanced                                                                                                             vibrations                                 36%                             4%
                                                                                                                 123
     Danish State Railways (DSB) has chosen          reversible power substation. Incredibly,                                                                                                                                        Raw materials                              Manufacture
     Alstom to deliver a new state-of-the-art
     train fleet to provide regional and fast                                                                                                                                                            Easy end-of-life             < 1%                                               < 1%
     rail services. With their top speed of 200
     km/h, the Coradia StreamTM range of
                                                                                                               HesopTM converters
                                                                                                                    ordered                                                                              management and           End-of-life                  LCA*                      Delivery
                                                                                                                                                                                                         circular economy                                      results
     trains have been specially adapted to
     local needs and will ensure swift and
     comfortable mobility across Denmark.                                                                                                                                                            Reduction of                               5%                                 54%
                                                                                                                                                                                                     air emissions                   Maintenance                                   Use
     The trains have been designed for energy                                                                                                       Use of greener, recyclable
     efficiency with specific features such as                                                                                                      and natural materials
     enhanced aerodynamics, ventilation
     system adjusted to occupancy, efficient
     traction chain with self ventilated traction                                                                                               * Lifecycle analysis

18                                                                                                                                                                                                                                                                                                  19
Goodbye diesel,                                                                                                                         Towards net zero operations
                                              time for greener rail                                                                                                           Alstom has been acting to reduce the environmental footprint of our
                                                                                                                                                                             operations, with significant progress achieved. We aim to progressively
                  Today, approximately 25% of rail operations remain dependent on diesel, with the                                                                              reach net zero operations and have committed to sourcing 100%
                 proportion higher for freight transport in many countries. In Europe 46% of rail lines                                                                             renewable electricity supply across our facilities by 2025.
                 remain unelectrified and 6,000 diesel trains are set to be replaced or refurbished by
                2035. Alstom has a portfolio of solutions that provide an alternative to diesel and will
                            accompany its customers in the shift away from diesel in rail.

                                                                                                                                                        HOW DO WE MAKE                                                    WHERE WE STAND TODAY
                                                                                                                                                          IT HAPPEN?
     THE FIRST HYDROGEN PASSENGER                    DESTINATION? GREEN TRACTION                  THE FUTURE IS ALSO BATTERY-
     TRAIN, ALREADY A REALITY                        WITH HELION                                  ELECTRIC
                                                                                                                                                                      Rolling                                                CO2 emissions Scope 1 and 2 in detail
     At Alstom, we believe that hydrogen trains      Alstom is determined to accelerate the       Irish Rail has selected Alstom to deliver                   out energy efficiency
     are a vital technology to enable zero-          shift towards emission-free mobility.        13 battery-electric trains as part of a                    programmes in all our
                                                                                                                                                                  geographies.                   At the end of 2021,                                      Scope
                                                                                                                                                                                                                                                               1 - Use of natural
     emission mobility. Our Coradia iLint™ train     That’s why we acquired Helion Hydrogen       considerable framework agreement                                                                                                                        gas and other fuels
     has proven the viability of hydrogen rail,      Power, a manufacturer of hydrogen            for the Dublin Area Rapid Transport                                                            Alstom was supplied
                                                                                                                                                                 Generating

                                                                                                                                                                                                   42%
     providing a whisper-smooth emission-            fuel cells and fully integrated hydrogen     network. Due to enter service in 2025,                                                                 with                              43%
                                                                                                                                                                                                                                                          Scope
                                                                                                                                                                                                                                                                1 - Company cars
                                                                                                                                                                                                                               53%                        (using gasoline or diesel)
     free ride with a range of up to 1,000           systems for transport and energy             these solutions are capable of journeys                       renewable energy
     kilometres. The successful deployment           applications. We are convinced that          up to 80 kilometres outside the electrified                      on our sites.                                                                          Scope 1 - HFC fugitive
                                                                                                                                                                                                                                                           emissions
     of the Coradia iLint in Germany has led         hydrogen has a key role to play in the       network under battery power. With                                                              of green electricity*.
     to multiple orders and the development          green transition, not just in mobility but   fast-charging stations and regenerative                         Switching                                                                3%             Scope 2 - Use of electricity,
                                                                                                                                                      to renewable electricity (through                                                                    steam & heat (- market
     of a broader range of hydrogen trains.          also in industrial applications. Helion      braking, it is a giant step for making rail                                                                                                              based)
     Alstom has taken orders for a total of 59       will help us play a strong role in this      even more sustainable, while enhancing               certificate and power purchase                                                       1%
     hydrogen trains, including the delivery of      transition.                                  the passenger experience in the Dublin                         agreements.).
     Coradia Stream hydrogen trains to Italy.                                                     area and beyond. Alstom has also sold its     *42% of electricity from renewable origin
                                                                                                  battery-electric trains to the German and
                                                                                                  Australian markets.
                                                                                                                                                 ALL-IN ON RENEWABLE ENERGY

                                                                                                                                                 Initiatives to install solar PV panels are
     Green traction implementation: Alstom is involved                                            UPGRADING EXISTING TRAINS                      rapidly multiplying across our facilities
     in numerous concrete projects throughout Europe                                              TO BATTERY POWER                               worldwide. Green electricity purchases
                                                                                                                                                 are also on the rise (green certificates
                                                                                                  The French government and SNCF                 or green power purchase agreements
                                                                                                  have set the target of phasing                 (PPA)). All our regions have established a
                                                                                                  out diesel trains by 2035. To help             trajectory to reach 100% green electricity
                                                                                                  France meet this target, we are                by 2025.
                                                            1st Test                              now leveraging our services and
           Hydrogen train
           programme                                                                              retrofit skills to convert five AGC
           Eversholt Rail         Trial operations                                                diesel-electric bimode trains to zero-
                                                                                                  emission battery-electric propulsion.                               OUR GOAL                                                              A GAME-CHANGING ENERGY
                                                                                                  With 50% of the French diesel rail                               Reach 100% green                                                         INFRASTRUCTURE
                                                                                                  fleet consisting of AGC trains built                             electricity by 2025
                                                                    1st Test                      at Alstom’s site in Crespin, this                                                                                                         Alstom’s site in Villeneuve (Switzerland)
                                            1st Passenger                                         sustainable retractioning approach                                                                                                        has consistently invested in environmental
                                            Service in 2018                                       could have a major impact on                                                                                                              initiatives since 2018, including reducing
                                                                                                  removing diesel from the French rail                                                                                                      water consumption and installing LED
                                                         Trial operations                         network. It also provides a unique                                                                                                        lighting. This year, this pioneering site
                               1st order                                                          opportunity to capitalise on existing                                                                                                     has installed approximately 3900 sqm
                                                                                                  assets and avoid unnecessary renewal                                                                                                      of solar panels on its Gotthard test hall,
                                                                                                  of installed rolling stock fleets.                                                                                                        enabling the production of around 770
                                                      1st order                                                                                                                                                                             MWh of electricity per year, half of which
                                                                                                                                                                                                                                            it consumes while feeding the rest into the
                                                                                                                                                                                                                                            local grid. An extra 1300 sqm is currently
                                                                                                                                                                                                                                            being developed for a similar purpose.

20                                                                                                                                                                                                                                                                                         21
Health & safety,
                                                                                                                                                            unconditionally
                                                                                                                                   Implementing strong and consistent Health & Safety standards everywhere
                                                                                                                                     in the world - for employees and contractors - is evidence of Alstom’s
                                                                                                                                        determination to protect our people and ensure safe workplaces.

                                                                                                                         HOW DO WE MAKE IT HAPPEN?                                 WHERE WE STAND TODAY

                                                                                                                           Integrated                  Implementing              We have divided               Total Recordable

                                                                                                                                                                                                                2.3
                                                                                                                               Health & Safety         our Life Saving Rules   the Injury Frequency             Injury Rate at

                                                                                                                                                                                  2
                                                                                                                                 management              to create a safer      Rate by more than
                                                                                                                                  in line with         working environment.             in
                                                                                                                         ISO 45001 and key                                              8 years.              (scope: employees

     CARING FOR
                                                                                                                       performance indicators                                                                  and contractors).
                                                                                                                     tracking in all our facilities.

                                                                                                                               Deploying                                                     Proportion of Alstom

           OUR PEOPLE
                                                                                                                       safety training modules
                                                                                                                                                                                       employees trained with e-learning
                                                                                                                          to foster in-house             Conducting

                                                                                                                                                                                            76.1%
         Our company is fully                                                                                                                                                         module on High Risk Activities (in %)
                                                                                                                             EHS culture.                   regular risk
     commited to ensuring that                                                                                                                           assessments and
                                                                                                                           Rolling out                   developing action
     Alstom figures among the best                                                                                        our Health and               plans to mitigate any
     places to work in the world.                                                                                      Wellbeing Programme.               identified risks.
     We are building an agile, inclusive,   Our people are our greatest resource. We make sure to
     and responsible culture, engaging      provide them with the best working environment and
     with our people and ensuring           employee experience. At Alstom, we deploy ambitious
     they are given opportunities to        programmes to help our company attract, engage,                                                                                                    HEALTH & SAFETY IN ACTION,
                                            protect and retain the right people.                                                                                                               WITH OUR LIFE-SAVING RULES

                                    ”
     grow and develop their talents.
                                            It is a cornerstone of our collective success.                                                                                                     Thanks to the analysis of main safety
                  Anne-Sophie
                                                                                                                                                                                               risks, we have identified the high-risk
                  Chauveau-Galas                                                                            OUR GOAL                                                                           activities related to the broad spectrum
                  Chief Human Resources
                                                                                                            Reduce severe                                                                      of works that we perform. These activities
                  Officer                                                                                  accidents to zero                                                                   are defined in our Alstom Zero Deviation
                                                                                                                                                                                               Plan. Last year, 77 EHS audits were
                                                                                                                                                                                               performed. Our goal? To reinforce our

                                            Our 2025 targets
                                                                                                                                                                                               control of high-risk activities, including
                                                                                                                                                                                               working at height, works involving risk
                                                                                                                                                                                               of interference from moving vehicles, etc
                                                                                                                                                                                               and reduce serious accidents to zero.

                                                                                                                                                                                               Alstom has launched an awareness
                                                                                                                                                                                               campaign around its Life-Saving Rules.
            Total recordable
            injury rate at            28%                        Global Top
                                                                 Employer
                                                                                      22
                                                                                      Learning culture
                                                                                                                                                                                               These rules are all about making sure
                                                                                                                                                                                               everyone knows and understands their

            2
                                                                                                                                                                                               role in keeping themselves, their teams,
                                      women in management,       certification.                  hours                                                                                         colleagues and contractors safe in high-
                                      engineering &                                   training/employee.                                                                                       risk activities. An EHS world cup was
                                      professional role (MEP).                                                                                                                                 launched in 2022 to recognise and award
                                                                                                                                                                                               good practices across the world.

22                                                                                                                                                                                                                                          23
Diversity & inclusion,                                                                                            Developing and engaging with our employees,
                          source of strength and resilience                                                                                          making Alstom an employer of choice
        Across all our businesses and product lines, we create an inclusive culture in which diversity is                                                            Meeting the mobility challenges of tomorrow is only possible with
      recognised and valued. By bringing together people from diverse backgrounds and giving everyone                                                           the support of our talents around the world. That is why we strive to create
     the opportunity to contribute their know-how, strengths and experiences, we create shared value for                                                            engaging work environments and encourage inspiring career paths.
                  Alstom and our stakeholders while reflecting the diversity of our customers.

                                                                                                                                                       80%
                                                                                                                                                        of employees
                                                                                                                                                   feel proud of working
                                                                                                                                                                                                                                                       WHERE WE STAND
              HOW DO WE MAKE IT HAPPEN?                                               WHERE WE STAND TODAY                                               for Alstom
                                                                                                                                                                                                                                                           TODAY

                                                                                                                                                                                                                                                       35,000
                                                                                                                                                                                                                                                                 More than

                                                                                                 45%
            Through reinforced                   Preventing
             governance supported by          potential discrimination
             the Diversity & Inclusion           and harassment
                                                                                              of the Alstom Board                                                                                                                                    new colleagues on-boarded since
                   committee.                      behaviours.
                                                                                                                                                                                                                                                             February 2021.

                                                                                                                                                                                                                                                         18
                                                                                              members are women.
                 Making                          Supporting                                                                                   IT ONLY MATTERS IF OUR PEOPLE ARE ON BOARD
           our Diversity Charter a          gender balance, disability

                                                                                            23.2%
                                                                                               As of March 2022
          gold standard, across our          inclusion, LGBT+@work                                                                            We have relaunched our global engagement survey. The latest study (conducted                         average training hours per employee.

                                                                                                                                                                                                                                                         14
                geographies.                  and multiple cultures.                                                                          between October and November 2021) recorded a very encouraging 68% participation
                                                                                                                                              rate. A total of 46,371 permanent employees worldwide (in 65 countries) shared
                              Encouraging                                                     women in managers                               their feedback. 80% expressed pride at working for Alstom and with an overall Global
             female hiring and managing female attrition (through                             & professional roles.                           Engagement Index score of 67%, one point above the external benchmark, the survey                      countries certified Top Employers.
                 active recruiment policies and targeted talent                                                                               result provides an excellent platform for further progress.
            development programmes, coaching and mentorships).

                                                                                                                                                                                                                    ALSTOM SPAIN AN EARLY MOVER
                                                                                      TAKING PRACTICAL ACTION FOR EQUITY                                                                OUR GOAL
                                                                                                                                                                                      Obtain Global Top                                 Alstom is certified as a Top Employer in the regions
                                                                                      In 2021/22, Alstom carried out a comprehensive                                                 Employer certification                             Europe, Asia Pacific and North America, with
                                                                                      analysis of our compensation practices to identify                                                  by 2025                                       certifications in a total of 14 countries worldwide.
                                                                    OUR GOAL          potential pay gaps between our female and male                                                                                First among them, Spain, where Alstom was awarded the certification
                                                                   Reach 28   %       employees during the Performance Management
                                                                                      Cycle. Currently, for all Managers, Engineers and
                                                                                                                                                                                                                    back in 2019. The Top Employers Institute, which conducts the in-
                                                                                                                                                                                                                    depth evaluation, measures close to 600 HR practices, including
                                                                of women amongst
                                                                managers, engineers   Professionals, the actual gap between male salaries                                                                           learning and talent development. Today, our goal is to obtain Top
                                                                 and professionals    and female salaries is measured at 5.3% as of                                                                                 Employer certification for all Alstom regions by 2025. We are heading
                                                                                      31 March 2022. Any identified specific and urgent                                                                             in the right direction!
                                                                                      cases are corrected as priorities. General guidelines
                                                                                      have also been developed so that managers and
                                                                                      HR can address the topic. This exercise will be
                                                                                      repeated yearly.

     A WORKPLACE FOR ALL
                                                                                                                                                                                            HOW DO WE MAKE IT HAPPEN?
     Within Alstom many initiatives at country level have been established
     to promote gender diversity. This includes “Alstom Women of
                                                                                                                                                              Deploying                                       Encouraging                               Maintaining
     Excellence”networks, which comprise hundreds of members in countries                                                                                                                                                                          employability through free
                                                                                                                                                           career management                            internal mobility with the
     such as the United States, India, Germany, France and the UK. We                                                                                                                                                                              access to Digital Learning
                                                                                                                                                              through annual                            introduction of MyGalaxy
     also work through external partnerships, like Valore D in Italy and                                                                                                                                                                         content in the “I-Learn” portal.
                                                                                                                                                         performance targets and                      to allow employees to map
     Elles Bougent in France. Many of Alstom’s employees are involved
     in programmes to promote STEM (Science, Technology, Engineering,
                                                                                                                                                           assessments, people                         their skills versus positions                    On-boarding
                                                                                                                                                        reviews, skills assessment                    and build their future career             our new employees through the
     Mathematics) studies for girls and woman and many countries organise
                                                                                                                                                         and development plans.                       steps as well as their global           Discovery Challenge digital platform
     employee visits to schools and welcome young female students for
                                                                                                                                                                                                            journey at Alstom.                   (more than 1M connections).
     training periods (as in Australia’s Lucy Mentoring Program).

24                                                                                                                                                                                                                                                                                             25
Contributing to projects that
                                                                                                                                             change people’s lives
                                                                                                                         All our projects share the ambition of making transport more inclusive and supporting
                                                                                                                           local development, by providing better access to work, education, medical services
                                                                                                                         and culture. At Alstom, we seek to serve communities and people by connecting them.

                                                                                                                CONNECTING CARIOCAS

                                                                                                                Historically engaged in developing the Brazilian
                                                                                                                mobility landscape, Alstom participated in the

     CREATING A POSITIVE
                                                                                                                modernisation of the Porto Maravilha region.
                                                                                                                This included a new three line tramway with a
                                                                                                                total length of 28 km, with this network providing
                                                                                                                the local population with a smooth, efficient and

     IMPACT ON SOCIETY
                                                                                                                economical means of transportation, opening the
                                                                                                                port region to the rest of the city.

                                                                                                                Upon completing five years in operation, Rio
                                                                                                                de Janeiro’s tramway numbers are impressive,
                                                                                                                underlining our positive socioeconomic impact
                                                                                                                in the area. Between 2016 and 2021, we have
         Alstom has partnered with            We are committed to                At Alstom, we believe that     transported more than 73 million people, who have
     India in the modernisation           deploy Corporate Social                responsible leadership can     enjoyed shorter and more comfortable journeys.
                                                                                                                The tramway project has been the centerpiece of
     and development of its               Responsibility in our local            only be built on strong        a major renovation programme of the city centre,
     transportation industry,             territories to create shared           relationships with local       which involved creating pedestrian areas and
     making it safer and more             value for all our stakeholders.        communities and contribution   completely redesigning the urban landscape for the
     sustainable. And going               We encourage our teams in              to local initiatives over      great benefit of inhabitants.
     forward, we aspire to continue       Regions, countries, sites to           the long-term. We are
     to positively influence the          take local and concrete actions        committed to supporting
     Indian market with our               and support deployment                 local development wherever
     products and operations.
                                ”         of robust processes through            we operate and acting as                                                                              BUILDING A MORE ACCESSIBLE

                                                               ”
                                          a country CSR label.                   a trusted and valued local                                                                            AND UNIVERSAL MOBILITY
                                                                                 partner as well as a good
                                                                                                                                                                                       Alstom and Fundación ONCE have
                 Ling Fang,                           Cécile Texier,             corporate citizen.                                                                                    renewed the collaboration framework
                 President of Alstom                  VP Sustainability                                                                                                                agreement launched in 2019 to promote
                 Asia Pacific Region                  & CSR                                                                                                                            the social inclusion of people with
                                                                                                                                                                                       disabilities in rail mobility. Both entities
                                                                                                                                                                                       have collaborated to develop more
                                                                                                                                                                                       accessible and inclusive projects during

                                       Our 2025 targets                                                                                                                                the last couple of years, including the new
                                                                                                                                                                                       Barcelona Metro and the future high-
                                                                                                                                                                                       capacity commuter trains for Renfe. In

                                                                          250,000
                                                                                                                                                                                       addition, Fundación ONCE has become

                      12
                                                                                                                                                                                       a strategic advisor to Alstom worldwide.

                      countries to implement AFNOR                        beneficiaries from local actions
                      Committed to CSR Label.                             and Alstom Foundation.

26                                                                                                                                                                                                                                    13 27
Supporting local development,                                                                                                                              Making a difference where
                                   wherever we operate                                                                                                                                      it matters, together
                       In all the territories where we are present, we recognise the importance                                                                                Through the Alstom Foundation and local community actions driven
                 of understanding and engaging with local communities, supporting their sustainable                                                                            by employees, Alstom demonstrates its commitment to being a good
                 development and acting as a committed local citizen. We demonstrate our long-term                                                                                        corporate citizen and giving back to society.
                         commitment by nurturing virtuous partnerships and supporting local
                                                   community actions.

                                                                                                                                                                                                                                                                 HOW DO WE MAKE IT
                                                                                                                                                                                                                                                                     HAPPEN?
              HOW DO WE MAKE IT HAPPEN?                                                   WHERE WE STAND TODAY                                                                                                                                                             Deploying

                                                                                                                 1,200
                                                                                                                                                                                                                                                                  Country Community Action Plans
                                                                                          Present in

                                                                                         70
                                                                                                                                                                                                                                                                   in all countries where we have
               Reinforcing                                                                                                                                                                                                                                           more than 200 employees.
          deployment of localisation
             plans in the context
                                                    Deploying                                                       suppliers’ employees
              of major projects.
                                                  impact reports to
                                                                                          countries.             trained on Alstom quality                                                                                                                                   Making
                                                 assess our positive                                                                                                                                                                                                a difference with the Alstom
                                                                                                                       fundamentals.
                                                    contribution                                                                                                                                                                                                    Foundation through projects
                 Working

                                                                                                                         X5
                                                 (social, economic,                      More than                                                                                                                                                                promoted by Alstom employees

                                                                               74,000
          closely with local suppliers          environmental, etc).                                                                                                                                                    © Recicla - Association Nuevos Caminos    in territories where we operate.
              (SMEs, start-ups...)
                                                                                                                                                      Alstom Foundation’s Recicla+ project.
                and contributing
            to ecosystems growth.
                                                                                                                    more indirect jobs                                                                                                                                     Teaming up
                                                                                         employees.               for each direct Alstom              ACTING AS A LOCAL FORCE FOR GOOD                                                                                with local and international
                                                                                                                        employee.                                                                                                                                     partners to bring a positive
                                                                                                                                                      At Alstom, we act as a positive corporate citizen by fostering cooperation with local                          impact to local communities.
                                                                                                                                                      communities and investing in initiatives that support social, environmental and economic
                                                      ENTERING A NEW CHAPTER OF RAIL                   SHARING VALUE(S)                               development. We are proud to see our employees come together in inspiring fund-raising                              Promoting
                                                      MOBILITY IN THE US                               IN SOUTH AFRICA                                events and donation campaigns. By teaming up with local NGOs and charities, our                                    volunteering
                                                                                                                                                      teams in Italy, North America, Australia or Poland (among others!) truly embody what
                                                      In the United States, Alstom is building         In South Africa, Alstom’s Gibela Joint         our vision of local contribution is all about. Thanks to everyone involved.
                                                      the next generation of high-speed                Venture is delivering 600 new passenger
                                                      trainsets for national operator Amtrak.          trains to the Passenger Rail Agency of
                                                      The first two trains have already been           South Africa. Gibela is strongly invested
                                                      manufactured in New York State and               in developing local supply chains to allow
                                                      are undergoing testing before they enter         sourcing of components and services                                                                                                                       THE DISCOVERY CHALLENGE
                                                      service later in 2022. The supply chain for      from local companies. The company                                                  WHERE WE STAND TODAY                                                   CAMPAIGN
                                                      the project is distributed widely across the     currently works with 79 South African

                                                                                                                                                              44 8,000 245,000
                                                      country, with parts being manufactured           suppliers with technology transfer at the                                                                                                                 Alstom University is Alstom’s award
                                                                                                                                                                                               Around                             More than
     FORWARD INDIA!                                   by 250 different suppliers in 17 states.         heart of the programme. This increase in                                                                                                                  winning online learning repository.
                                                      The project supports more than 1,300             local skills and capabilities should provide                                                                                                              In 2021 the Discovery Challenge
     India has made great progress in                 new jobs in nearly 90 communities                a strong base for ongoing sustainable               countries have                                                                                        campaign allowed Alstom employees
     making its transport infrastructure more         countrywide, with a focus on high value          growth.                                           deployed a Country                                                                                      to direct points to various NGOs as
                                                                                                                                                                                              employees              people benefited from Alstom
     sustainable and Alstom is very proud to          engineering and manufacturing jobs.                                                                   Community                                                                                            they completed learning programmes.
                                                                                                                                                                                       involved in volunteering       and Foundation community
     have been a partner in this transformation.                                                                                                            Action Plan.                                                                                         This saw 47,000 participants complete
                                                      Supported Employment and Household Consumption in India                                                                                 activities.                actions in 2021/22.
     By developing next generation metro trains                                                                                                                                                                                                                  432,000 learning hours and €46,000
     and efficient electric locomotives, we offer                                                                                                                                                                                                                donated to 8 NGOs.

                                                                                                                                                                                                             2.2 275
     solutions that emit up to ten times fewer
     CO2 emissions than competing modes                                                                                                                                                                   Alstom Foundation:                                     In China for instance, WorldVision
     of transport. In September 2021 Alstom                                                                                                                                                                                                                      was given €8000 to strengthen
     India was our first country to estimate                                                                                                                                                                                         Foundation projects         protection skill’s of local NGOs and
     its socio-economic impact according to a                                                                                                                                                                                          to date, including        support various quality local activities
     global methodology developed with Ernst                                                                                                                                                              million euros budget                                   targeted to the most vulnerable
                                                                                                                                                                                                                each year.              the 38 projects
     & Young.                                                                                                                                                                                                                                                    children and families.
                                                                                                                                                                                                                                     selected in 2021/22.

28                                                                                                                                                                                                                                                                                                          29
A value chain built
                                                                                                                                                                                              on shared values
                                                                                                                                                         Building a fairer, safer and greener supply chain is vital to improving environmental
                                                                                                                                                        and societal outcomes. That is why we are fully committed to reducing environmental,
                                                                                                                                                                          social and ethical risks throughout our supply chain.

                                                                                                                                                        HOW DO WE MAKE IT HAPPEN?                                               WHERE WE STAND TODAY

                                                                                                                                                                                                                          96%                                 62%
                                                                                                                                                        ESD Charter*                        Fostering a
                                                                                                                                                    signature as a mandatory             collaborative approach
                                                                                                                                                    pre-requisite for entrance            for all our operational

     ACTING
                                                                                                                                                        to Alstom’s panel                      partnerships.        of the spend volume covered                  of spend
                                                                                                                                                                                                                     by ESD Charter* signature               volume assessed
                                                                                                                                                                                                                         with key suppliers.                  on CSR stakes.
                                                                                                                                                            Assessing                      CSR criteria
                                                                                                                                                    and auditing our suppliers’            integrated in each
                                                                                                                                                                                                                                              100
     AS A RESPONSIBLE
                                                                                                                                                     CSR performance to rely                supplier business
                                                                                                                                                     on a sustainable & strong              award and futher
                                                                                                                                                           supply chain.                 strenghten in coming                    suppliers enrolled in Alstom Sustainable
                                                                                                                                                                                          selection processes.                     Procurement training programmes.

              PARTNER
     The Schaeffler Group is a key supplier of components to the railway                                                                    * Ethics & Sustainable Development Charter

     industry, and has been a reliable partner of Alstom for several
     decades. The Group has been recognised with the Railsponsible
     Supplier Award 2021, Sustainability and Climate Change.                                                                                PREMIUM PARTNERSHIP PROGRAMME

         As sustainability plays a crucial role in                                    Alstom’s relationships with all our stakeholders      Our Alstom Alliance™ programme is designed and driven to
     the Schaeffler Group’s corporate strategy,                                       are guided by our fundamental principles of           develop a collaborative approach with our strategic suppliers and
                                                                                                                                            contractors in 4 main areas: Business Development, Operational
     decarbonisation has become a key priority with                                   integrity and transparency. And by working            Excellence, Product & Process Innovation and After Sales Market.

                                                                             ”
     the aim to achieve carbon neutrality by 2040.                                    collaboratively with our suppliers we ensure          24 suppliers have already joined the programme and committed
                                                                                      they share our commitments and are                    to reaching ambitious objectives. Annual evaluations highlight
                                                       Klaus Rosenfeld                                                                      valuable achievements and next steps to help Alstom elaborate
                                                                                      empowered to develop their sustainability
                                                                                                                                                                                                                                                                    24
                                                       Chief Executive Officer                                                              each axis of its business plan. Amongst other priorities, we are
                                                       of Schaeffler AG               practices. In this way we foster partnerships         using this programme as a catalyst to deploy our Sustainability
                                                                                      that help deliver sustainable mobility.               and Climate targets with our strategic partners.
                                                                                                                                                                                                                                                                  suppliers in
                                                                                                                                                                                                                                                                  the Alliance
                                                                                                                                                                                                                                                                  programme
     Achieving common sustainability goals requires
     smart & innovative ideas and intensive dialogue
     between both teams.
                                                                                                                                                                                                                     SUSTAINABLE PROCUREMENT THE LICENSE TO OPERATE
                                                                                                                                                                                                                     ACROSS OUR INDUSTRY

                                                            Our 2025 targets                                                                                                                                         Alstom strongly supports sectoral initiatives destined to
                                                                                                                                                                                                                     accelerate positive transformations in rail industry supply chains.

                                 100% 500
                                                                                                                                                                                                                     Most prominent among them, Railsponsible aims to drive
                                                                                                                                                                                                                     sustainability in the railway supply chain through a common
                                                                                      ISO 37001                   Reaching a net promoter
                                                                                                                         score of
                                                                                                                                                                                                                     approach, field collaboration and the sharing of best practices
                                                                                                                                                                                                                     and processes, with members including SNCF, Nederlandse

                                                                                                                       8.3
              of suppliers monitored or assessed                  suppliers trained        certification in all                                                                                                      Spoorwegen, Deutsche Bahn and Knorr-Bremse. This initiative
                  on CSR and E&C standards                        on sustainability             regions.                                                                                                             counts now 15 members.
                according to their level of risk.                    and CSR.

30                                                                                                                                                                                                                                                                                         31
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