Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — ESG Presentation (March 2023)
34 slides from Air Liquide Sa's sustainability presentation, Mar 24, 2023
Slide 1: Delivering Group Sustainability Objectives in 2022
DELIVERING GROUP SUSTAINABILITY OBJECTIVES IN 2022 Fabienne Lecorvaisier, Executive Vice President in charge of Sustainable Development, Public and International Affairs as well as the supervision of the General Secretariat Ashutosh Misra, Group VP in charge of Sustainable Development Jean-Marc de R
Slide 2: Topics
Topics Advancing for the environment Advancing for Health Advancing for All Sustainability 2022 Performance Strategy Deploying the Action Plan 2 THIS DOCUMENT IS ••PUBLIC Delivering Group Sustainability Objectives, March 24, 2023
Slide 3: Our Sustainability Strategy
01 Our Sustainability Strategy Fabienne Lecorvaisier 33 THIS DOCUMENT IS ••PUBLIC Delivering Group Sustainability Objectives, March 24, 2023
Slide 4: March 2021: First Complete Set of ESG Commitments
March 2021: First Complete Set of ESG Commitments 2025 2035 2050 A ● Inflection in absolute emissions ● <33%> reduction in absolute ● Carbon Neutrality batement emissions vs. 2020 ● <30%> reduction in carbon of CO Emissions 2 intensity vs. 2015 C are for patients ● In Mature economies - increase pers
Slide 5: March 2022: Concept of Global Performance is Enacted
March 2022: Concept of Global Performance is Enacted Sustainability Ambition Group’s New Strategic Plan March 2021 Reminder March 2022 A Acting for a low-carbon society Delivering financial performance And beyond, C Acting for Health Decarbonizing the planet Unlocking progress via technologies T Acti
Slide 6: CO2 Emissions Reduction Becoming One of the Strategic Objectives
…With CO2 Emissions Reduction Becoming One of the 3 Strategic Objectives Absolute Scope 1+2 emissions Reminder Performance Objectives ~2025 Inflection point Sales growth 30 +5-6% CAGR(1) 2035 Reduce by ⅓ CO2 emissions 20 ROCE CO2 10 >10% emissions by 2023(2) inflection MtCO2 and forward around 2025 20
Slide 7: Sustainability Fully Embedded in Strong Governance and Processes
… And Sustainability Fully Embedded in Strong Governance and Processes Board Board reviews of Sustainability Strategy & Progress CES Committee Env. & Society Committee oversight Executive Committee COMEX oversight Executive sponsorship of Financial and Extra Financial programs Exec. VP CFO Strategy,
Slide 8: With an Organization in Place to Achieve the Objectives
… With an Organization in Place to Achieve the Objectives ■ Yearly Carbon Budget allocated to Hubs and countries → Tight CO2 management system embedded in the investment decision process ■ Revision of investment decision process with integration of CO2 trajectory → Control of geographical CO2 trajec
Slide 9: Investments in Energy Transition
… And investments being selective Industrial Investment Decisions above €5m Large Industries Energy Transition H2 mobility Others thereof ~1/2 IM > 50% Electronics In Energy Transition 16bn (1) Total investment decisions € 2022-2025 (1) Cumulated industrial and financial investments decisions over 4
Slide 10: Which is Producing Concrete Results
… Which is Producing Concrete Results Objectives and KPIs 2021 Results 2022 Results Advancing By 2035, a 33% reduction in Scope 1 & 2 emissions vs. 2020 < +1%(a) - 0.3%(a) for the Environment By 2025, a 30% reduction Carbon Intensity vs. 2015 -24% -25% 38% 49% Advancing In mature economies, improve
Slide 11: Recognized by Extra Financial Rating Agencies
… That are recognized by Extra Financial Rating Agencies Air Liquide remained Air Liquide ranked a Level A leader, #5 out of 295 For the 6th consecutive Air Liquide has Recognized as “ESG scoring an A- on industrial year, Air Liquide has maintained its A Industry Leader Top Climate and Water compani
Slide 12: 2022 Performance
02 2022 Performance Ashutosh Misra, Jean-Marc De Royere, Claire Dessertine 12 THIS DOCUMENT IS ••PUBLIC Delivering Group Delivering Sustainability Group Objectives, Sustainability MarchObjectives, 24, 2023 March 24, 2023
Slide 13: Ashutosh Misra
Ashutosh Misra 13 13 THIS DOCUMENT IS ••PUBLIC Delivering Group Sustainability Objectives, March 24, 2023
Slide 14: 2022 CO2 Emissions Profile by Scopes
2022 CO2 Emissions Profile by Scopes 27 % 37 % 36 % TOTAL EMISSIONS Scope 1: 16.3 Mt Scope 2 (a): 23.0 Mt Scope 3: 22.1 Mt 61.4 Mt AVOIDED 13.3 Mt Avoided emissions from end-uses : 64.1 Mt EMISSIONS 77.4 Mt Avoided emissions from efficiencies and clients’ applications (a) Market Based 14 THIS DOCUMENT
Slide 15: Decarbonization Levers Depending on Geographies & Business Mix
...With Decarbonization Levers Depending on Geographies (a) & Business Mix Scope 1 Focus Business mix Sc 1 Benelux, France Sc 2 USA, KSA Sc 1 Large Industries Sc 2 ● SMRs(b) and ASUs(c) Sc 1 MEA EU ● Significant decarbonization opportunities for both Scope 1 & 2 emissions Scope 2 Focus APAC AM Sc 2 S
Slide 16: ADVANCE Levers Deployed to Meet CO2 Trajectory
…. And ADVANCE Levers Deployed to Meet CO2 Trajectory ⅓ ⅓ Carbon Capture Asset Management Usage / Storage 2035 emission reduction levers ▪ ASUs electrification in China ▪ Assets selected for subsidies ▪ Assets revamping with CO2 recycling Kairos@C Antwerp@C Porthos ▪ Energy efficiency projects ▪ >50 ne
Slide 17: 2 Years of Stable Emissions While Delivering Strong Growth
… Resulting in 2 Years of Stable Emissions While Delivering Strong Growth Objectives 2021 FY 2022 FY and KPIs Achievement Achievement By 2025, a 30% reduction -24 % -25% Carbon Intensity (vs. 2015) (vs. 2015) vs. 2015 Our CO2 emissions reduction target was validated by the By 2035, a 33% < +1% -0.3%
Slide 18: Energy Transition Projects Initiated and Developed in 2022
... And Several Energy Transition Projects Initiated and Developed in 2022 to Continue the Decarbonization Journey into the Future Transport & storage K6 - Cement plant Shipping JV Grandpuits Zero Crude Carbon Platform Antwerp@C CO2 Capture Kairos@C Low-Carbon H2 Lime plant Export Hub for Chemicals
Slide 19: Goal to Decarbonize our Full Value Chain
… With the Goal to Decarbonize our Full Value Chain Air Liquide is participating in the SBTi led Expert Advisory Group to develop SDA* for chemical sector, with special focus on scope 3 emissions * Sector Decarbonization Approach 2 Products CO2 - Food, pharma, welding, water treatment, cooling, appl
Slide 20: Key Progress in 2022: Scope 3 Emissions
Key Progress in 2022: Scope 3 Emissions Measuring Comprehensive and transparent reporting & Monitoring Enhanced methodologies Scope 3 Engaging Suppliers’ mapping & dialogue with 2035 Objective suppliers “Procure to neutrality” roadmap 100% of Top 50 customers committed to 2050 Carbon neutrality by 2
Slide 21: Key Progress in 2022: Water Management
Key Progress in 2022: Water Management Water management Objectives 2022 Achievements Objective Objective 1 2 78 sites identified as high water use operations in high water stress areas Tools, guidelines and templates prepared, Pilots launched For high water use For all operations, to operations in hi
Slide 22: Key Progress in 2022: Biodiversity
Key Progress in 2022: Biodiversity 1st Set of Biodiversity Commitments 2022 Achievements ▪ Act4Nature Commitment in 2023 Assessment of biodiversity related risks ▪ Develop and implement Biodiversity KPI ▪ (1) Access to Natural Resources by 2025 ▪ (2) Impact on Natural resources ▪ Biodiversity assess
Slide 23: Key Progress in 2022: EU Taxonomy
Key Progress in 2022: EU Taxonomy Focus: CAPEX(*) 2022 H2 manufacturing Achievements Eligible Roll out of the full (eligibility + alignment) 380.6 M€ reporting, incl. Technical Screening Criteria and Aligned DNSH across relevant activities 114.3 M€ Eligible turnover: 17.5% of Group turnover Others M
Slide 24: Jean-Marc De Royere
Jean-Marc De Royere 24 24 THIS DOCUMENT IS ••PUBLIC Delivering Group Sustainability Objectives, March 24, 2023
Slide 25: Strong Progression on Personalized Care in Mature Economies
Strong Progression on Personalized Care in Mature Economies SCOPE Example from Portugal ■ Personalized care plans for HHC* patients Partners ■ L1: Compliance-driven Portuguese Sleep Association ■ L2: Outcome-driven (APS) and Portuguese Pneumology Society (SPP) ■ Patient-focused partnerships Personal
Slide 26: 1.8 Million People with Facilitated Access to O2 in LMICs
1.8 Million People with Facilitated Access to O2 in LMICs* SCOPE ■ Millions in rural communities lack ready access to oxygen ■ Access OxygenTM : safe, reliable, patient-focused O2 services ■ Delivered by AL teams or social entrepreneurs to primary care centers ■ Supported by a dedicated entity, Acce
Slide 27: Claire Dessertine
Claire Dessertine 27 27 THIS DOCUMENT IS ••PUBLIC Delivering Group Sustainability Objectives, March 24, 2023
Slide 28: Acting for All - Objectives and 2022 Results
Acting for All - Objectives and 2022 Results Diversity, 35% of women among a source of managers & 31.5% performance professionals 2022 2025 by 2025 Wellbeing 100% of employees under a beyond the common basis of care workplace 42% coverage by 2025 2022 2025 100% of employees encouraged to engage 43%
Slide 29: Diversity Performance: Challenging, But On Track
Diversity Performance: Challenging, But On Track Examples Objectives 2021 2022 31.5% and KPIs RESULTS 35% women among Publication of “Inspiring Women: 120 inspiring stories for the Manager & Professional 31.0% 31.5% 120 years of Air Liquide” women share their unique population by 2025 experiences, b
Slide 30: Common Care Coverage: Progressing Well Toward Objective
Common Care Coverage: Progressing Well Toward Objective Key Elements of Common Care Coverage Life insurance Objectives Health insurance 2021 2022 and KPIs 14 weeks paid Maternity leave 100% of employees RESULTS with common care 34% 42% coverage package by 2025 Each Hub of the Group has a 2023-2025 r
Slide 31: Citizen at Work: Launched Across Entities
Citizen at Work: Launched Across 15 Entities Objectives 2021 2022 2022 and KPIs 100% of employees RESULTS to have access to Early adopters 43% local volunteering 17,000 29,000 activities by 2025 employees employees AL S. Africa - 2022 Mandela Day ● Program Launched; 15 entities; governance guideline
Slide 32: Best In Class Governance: New Actions Undertaken
Best In Class Governance: New Actions Undertaken A diversified and independent Board: Board ● 50% of women, as of Dec. 31, 2022 (stable vs. 2021); & Shareholders ● 80% of independent members, as of Dec. 31, 2022 (vs. 92% as of Dec. 31, 2021) Promote a responsible Expansion of platform to external sta
Slide 33: Conclusions
Conclusions Concrete actions to achieve our short- and mid-term ESG objectives initiated Flattening of CO2 emissions for 2 years in row Next steps on Environmental Several new PPAs for Renewable Energy Objectives Large scale carbon capture & electrolysis projects ■ Accelerate in line with CO2 launch
Slide 34: To learn more…
To learn more… Sustainability Report Downloadable Reporting 2022 Universal Vigilance Plan Air Liquide Foundation 2022 for Stakeholders Registration Document Delivering Group Sustainability Objectives, March 24, 2023