Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — ESG Presentation (March 2021)
79 slides from Air Liquide Sa's sustainability presentation, Mar 23, 2021
Slide 1: Sustainability Day
SUSTAINABILITY DAY 23 March 2021
Slide 2: I - Our commitments
I - Our commitments Benoît Potier Chairman & Chief Executive Officer Sustainability day 2
Slide 3: Time to act for a sustainable future
TIM E TO ACT FOR A SUSTAINABLE FUTURE A GROWTH HISTORY Performing in the present and Preparing the PERFORM ANCE & SUSTAINABILITY 1 future thanks to a deeply resilient and diversified business model OUR AM BITION IS TO M AKE 2 A M EANINGFUL DIFFERENCE INVENTING AND SHAPING All stakeholders share 3 TH
Slide 4: Air Liquide ambition
AIR LIQUIDE AM BITION Air Liquide ambition stated in 2016: Lead our industry Deliver long-term performance Contribute to sustainability Committing to sustainability Sustainability day 4
Slide 5: An ESG commitment structured around main priorities
AN ESG COM M ITM ENT STRUCTURED AROUND 3 M AIN PRIORITIES 1 Abatement of CO2 emissions 2 Care for patients T rust to engage w i th our em ployees 3 as the base to bui ld a best i n class governance Sustainability day 5
Slide 6: Abatement of CO2: setting a trajectory to reach carbon neutrality
ABATEM ENT OF CO 2 SETTING A TRAJECTORY TO REACH CARBON NEUTRALITY CO2 emissions start Reach Carbon Air Liquide decreasing in absolute value Neutrality by 2050 Commitments ~2025 2035 2050 -30% Carbon intensity Decrease scope 1 & 2 in kg CO2/ € EBITDA(a) CO2eq emissions in vs 2015 absolute value by -
Slide 7: Hydrogen as a cornerstone of the energy transition
HYDROGEN AS A CORNERSTONE OF THE ENERGY TRANSITION… …AND A TREM ENDOUS GROWTH POTENTIAL Our ENGAGEM ENT Power generation, buffering Decarbonize our production assets 2050 to develop a competitive low-carbon Transportation H2 offering at large scale. 18 % Industry energy of final energy Creating valu
Slide 8: Care for patients
CARE … FOR PATIENTS Our ENGAGEM ENT In mature economies Improve the quality of life of chronic patients at home through Value-based care In low & middle Facilitate access to oxygen for rural income countries communities Sustainability day 8
Slide 9: Trust as the base to engage with our employees
T RUST …AS THE BASE TO ENGAGE WITH OUR EMPLOYEES Lost-Time Frequency Rate of AL Employees Our ENGAGEM ENT 1.9 Safety as a prerequisite for action 0.9 2010 2015 2020 Provide a common basis of care coverage for all employees Com m i tm ent: 100% of employees with a common basis of care coverage packag
Slide 10: Trust as a base to build a best in class governance
T RUST … AS A BASE TO BUILD A BEST IN CLASS GOVERNANCE Board A diversified and independent Board & Shareholders Shareholders: loyalty, close relationship Ethics in business Promote a responsible dialogue with our business With customers and patients stakeholders With suppliers Contribute to Deve
Slide 11: Agenda
AGENDA Creating value for a Care for patients Trust as the base to Trust as the base to Q&A Session low-carbon society engage with our build a best in class and setting a employees Governance trajectory to reach Carbon neutrality Assets Customers Ecosystems Sustainability day 12
Slide 12: II - Creating value for a low-carbon society
II - Creating value for a low-carbon society and setting a trajectory to reach Carbon neutrality Guy Salzgeber - Executive VP Ashutosh Misra - Group VP Sustainable Development François Jackow - Executive VP Matthieu Giard - Vice President Fabienne Lecorvaisier - Executive VP Sustainability day 13
Slide 13: An ambitious path towards carbon neutrality
AN AM BITIOUS PATH TOWARDS CARBON NEUTRALITY ~2025 Inflexion point 30 2035 Reduce by ⅓ CO2 emissions 20 Absolute Scope 1+2 emissions 10 MtCO2 0 2050 Carbon Neutrality 2020 2025 2035 2050 Subject to favorable long-term policy and regulatory frameworks, and availability of new low-carbon energy infras
Slide 14: Enhanced disclosures and reporting methodology
ENHANCED DISCLOSURES AND REPORTING M ETHODOLOGY CO2 Emissions (M tCO2) M arket-Based reporting 3.2 32.5 ▪ Aligns with reporting best practices 27.5 1.8 ▪ Allows to account for Renewable Electricity sourcing initiatives Reporting Adjustments ▪ Change in Cogeneration accounting M ethodology Update ▪ A
Slide 15: 2025: Remaining committed to -30% carbon intensity objective vs. 2015
2025: REM AINING COM M ITTED TO -30% CARBON INTENSITY OBJECTIVE VS. 2015 ~2025 Inflexion point Carbon Intensity (a) (kgCO2/ € EBITDA) 7.3 30 6.3 2035 Reduce by ⅓ CO2 emissions 20 10 5.1 MtCO2 4.4 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2050 Carbon Neutrality 2020 2025 2035 2050 (a)
Slide 16: Emissions to start decreasing around 2025
EM ISSIONS TO START DECREASING AROUND 2025 ~2025 Inflexion point ~ 2025 ▪ High level of investment decisions in 2019 & 2020 30 ▪ Project backlog leads to short-term CO2 emission increase ▪ Partially offset by energy transition initiatives already launched or under development 2035 Reduce by ⅓ CO2 em
Slide 17: Reduce CO2 emissions by one third by 2035
REDUCE CO2 EM ISSIONS BY ⅓ BY 2035 ~2025 Inflexion point 30 2035: Reduce by ⅓ CO2 emissions ▪ Baseline: 2020 Market based emissions of 2035 Reduce by ⅓ CO2 emissions 32.5 million tonnes CO2eq (Scope 1+2) 20 ▪ Takeovers shall be integrated in the baseline and be subject to the ⅓ CO2eq reduction targe
Slide 18: Carbon neutrality ambition aligned with the Paris Agreement
CARBON NEUTRALITY AM BITION ALIGNED WITH THE PARIS AGREEM ENT Absolute Scope 1+2 emissions ~2025 Inflexion point 30 Acting on: 2035 Reduce by ⅓ CO2 emissions 20 Industrial assets Customers & Markets Governance 10 MtCO2 0 Carbon Neutrality 2050 2020 2025 2035 2050 Requires favorable long-term p
Slide 19: Creating value for a low-carbon society
SETTING A TRAJECTORY TO REACH CARBON NEUTRALITY BY 2050 M ilestones towards Carbon Neutrality by 2050 ASSETS A Decarbonizing through energy management, carbon capture, and zero-emission technologies CUSTOM ERS C Support hard-to-abate industrial sectors with low carbon offers Creating value ECOSYSTEM
Slide 20: Understanding the emissions of our asset base
UNDERSTANDING THE EM ISSIONS OF OUR ASSET BASE SCOPE 1 (Direct Emissions) 32.5(b) SCOPE 2 (Indirect Emissions) 15.3 MtCO2eq MtCO2eq 17.2 MtCO2eq H2 Hydrogen/CO(a) 27% Cogeneration 15% Electricity & Steam mostly for Air CO2 N2O Gases(c) Other direct emissions 53% 5% (a) Includes all Hydrogen & Carbon
Slide 21: Scope 1: Decarbonize our assets
SCOPE 1: DECARBONIZE OUR ASSETS Capturing CO2 ▪ 10 out of 53 SMRs represent 41% of Scope 1 emissions in 2020 Using renewable feedstock ▪ > 1.3 TWh of biomethane production capacity today H2 Electrolysis for future low carbon growth in Hydrogen Scope 1 ▪ Access large low-carbon electricity sourcing D
Slide 22: Testimony - Carbon capture projects as a first phase of energy transition
TESTIM ONY - CARBON CAPTURE PROJECTS AS A FIRST PHASE OF ENERGY TRANSITION ■ Step change in abatement of scope 1 emissions with CCS & electrolysis ■ CCS as transition before scaleup of renewable powered Electrolyzers ■ Proprietary CryocapTM technology in operations since 2015 ■ Partnerships for majo
Slide 23: Scope 2: Increasing energy efficiency and low carbon electricity consumption
SCOPE 2: INCREASING ENERGY EFFICIENCY AND LOW CARBON ELECTRICITY CONSUM PTION Consuming less energy ▪ Upgrade less efficient Air Separation assets ▪ Further deployment of SIO* for energy optimization Consuming cleaner energy ▪ Focusing on ~10 countries with highest decarbonization potential ▪ Large
Slide 24: Testimony: Expertise in energy management
TESTIM ONY: EXPERTISE IN ENERGY M ANAGEM ENT ▪ Strong expertise in electricity management ▪ 3 PPA* signed in US, Spain and Netherlands ▪ State of the art ALiveTM ASU, adapted to renewable energy Cristina Ballester Herrera Augustin Guillemont Vice President General Manager, European Large Industries
Slide 25: Enhanced reporting of Scope 3 emissions
ENHANCED REPORTING OF SCOPE 3 EM ISSIONS Employee commuting ASUs in Tolling Processing of sold products(a) N2 Waste generated in operations O2 Fuel and energy H2 related activities Downstream transportation N2O Use of sold products Purchased Upstream CO2 products and transportation services Scope 3
Slide 26: Avoiding emissions through innovation and technology
AVOIDING EM ISSIONS THROUGH INNOVATION AND TECHNOLOGY Synergies & Industri al efficiency Oxygen for Steel 15 MtCO eq 2 78 MtCO eq 2 enScribeTM for Sem i conductors avoi ded i n 2020 avoi ded i n 2020 Biomethane Ar / Kr appli cati ons H2 for Ultra Low Sulfur Di esel M ethod 1 M ethod 2 Scientifically
Slide 27: 2035: Using main levers for decarbonization
2035: USING 3 M AIN LEVERS FOR DECARBONIZATION Asset Management ⅓ ⅓ Carbon Capture & Usage / Storage ▪ Technology upgrade, latest E&C 2035 emission ▪ Targeted actions on 10 large SMRs innovation reduction levers ▪ CCS partnerships ▪ Asset mutualization & Economy of scale ▪ Portfolio management ⅓ Low
Slide 28: Creating value for a low-carbon society
SETTING A TRAJECTORY TO REACH CARBON NEUTRALITY BY 2050 M ilestones towards Carbon Neutrality by 2050 ASSETS A Decarbonizing through energy management, carbon capture, and zero-emission technologies CUSTOM ERS C Support hard-to-abate industrial sectors with low carbon offers Creating value ECOSYSTEM
Slide 29: The world has changed
THE WORLD HAS CHANGED Jan. 2021- GHG Reductions of 40% by 2030, Net-zero by 2040. Jul. 2018 - GHG Reductions of 90% by 2025, 40% in its supply chain. Oct. 2015 - Zero CO2 emission challenge, -35% for 2030, 0 in 2050. M anufacturing and raw materials must change as well Sustainability day 31
Slide 30: Our industrial customers received the message
OUR INDUSTRIAL CUSTOM ERS RECEIVED THE M ESSAGE Industrial Companies Taking actions Air Liquide’s Top 20 Customers # of companies, cumulated # 1 # 11 # 2 # 12 # 3 # 13 # 4 # 14 # 5 # 15 +108% # 6 # 16 # 7 # 17 # 8 # 18 # 9 # 19 # 10 # 20 Clear Short term targets (2030) Committed to GHG reductions No
Slide 31: Let's hear it from them
LET’S HEAR IT FROM THEM ST on Carbon Neutrality Covestro on shifting towards a Circular Economy Sustainability day 33
Slide 32: Air Liquide's offers along the low carbon chain
AIR LIQUIDE’S OFFERS ALONG THE LOW CARBON CHAIN Low C Products 1 Low Carbon Industrial Gas 4 M anufacturing Supply 2 Low Carbon process transformation ▪ Large Industries i ncludi ng decarboni zed 3 Carbon Capture as a service ▪ Industrial M erchant Tak eovers ▪ Electronics Sustainability day 34
Slide 33: Low-carbon industrial gas supply: existing sites
1 LOW-CARBON INDUSTRIAL GAS SUPPLY EXISTING SITES: TAKEOVER & DECARBONIZE Low -Carbon Energy Sasol Econom y of scale & Asset renew al y Ronnie Chalmers Executive Vice President Africa Middle East and India Hub Opti m i zati on ▪ 15 years contract ▪ Core Air Liquide expertise ▪ Includes CO2 reduction
Slide 34: Low-carbon industrial gas supply: renewable H2 for refining
1 LOW-CARBON INDUSTRIAL GAS SUPPLY CASE STUDY: RENEWABLE H 2 FOR REFINING Fossil/ Low-Carbon H2 H2 Refinery RED II to enforce 14% renewable content in EU transportation fuels Electrolyzer % Green H2 Quotas could be met using Renewable H2 in refining Green H 2 Value ▪ Avoided CO2 emissions ▪ RED II c
Slide 35: Low carbon process transformation: low-carbon steelmaking
2 LOW CARBON PROCESS TRANSFORM ATION CASE STUDY: LOW-CARBON STEELM AKING DRI + SMR+CCS Blast Furnace Electric Arc Furnace Iron ore H2 A unique value for steelmakers Hydrogen injection ▪ Air Liquide already supplies O2 to both H2 H2 major steelmaking processes Direct Reduced Iron Electrolyzer ▪ To re
Slide 36: Low carbon steelmaking: thyssenkrupp Steel Europe
2 LOW CARBON STEELM AKING EXAM PLE: THYSSENKRUPP STEEL EUROPE AG, DUISBURG, GERM ANY H2 Phase 1 - End of 2019 Testing H2 injection 2t/ day into blast furnace Phase 2 - on-going Extended to full BF scale >20t/ day Building H2 pipeline connection Phase 3 Robert van Nielen thyssenkrupp New DRI unit >20
Slide 37: Carbon capture as a service
3 CARBON CAPTURE AS A SERVICE AL SMRs CO2 capture as a service H2 CO2 shipping ▪ Proprietary purification technologies to to storage Refining address a wide range of CO2 streams / Chemicals CO2 CO2 CO2 Termina Termina ▪ LI business model l l CO2 pipeline to storage ▪ Mutualize CO2 capture infrastruc
Slide 38: Leveraging long-lasting relationships to support customers' energy transition
LEVERAGING LONG-LASTING RELATIONSHIPS TO SUPPORT CUSTOM ER’S ENERGY TRANSITION Refining Chemicals Steel Companies like... ... ... ... Low Carbon H 2 Adv. Bi ofuels Bi o-feedstock s Iron Reducti on (DRI / Blast Furnace) M ajor Decarbonization CO/ CO2 Recycle Low -Carbon H 2 Low -Carbon H 2 CCU + CCS
Slide 39: Leveraging long-lasting relationships: manufacturing and new segments
LEVERAGING LONG-LASTING RELATIONSHIPS TO SUPPORT CUSTOM ER’S ENERGY TRANSITION M anufacturing New Segments Companies like... ... ... Recycled and Advanced Bi o-sourced CO2 Materi als for Batteri es M ajor Low -Carbon Decarbonization Industri al Gases New Constructi on levers & Process Materi als Oxy
Slide 40: Positioned to capture growth in the energy transition
POSITIONED TO CAPTURE GROWTH IN THE ENERGY TRANSITION Innovation Low Carbon Industrial Gas Supply Low Carbon Process Transformation + + Carbon Capture As A Service Growing Customer New Products & Needs M anufacturing Support Customer Basin Relationship Footprint Sustainability day 42
Slide 41: Creating value for a low-carbon society
SETTING A TRAJECTORY TO REACH CARBON NEUTRALITY BY 2050 M ilestones towards Carbon Neutrality by 2050 ASSETS A Decarbonizing through energy management, carbon capture, and zero-emission technologies CUSTOM ERS C Support hard-to-abate industrial sectors with low carbon offers Creating value ECOSYSTEM
Slide 42: Leading the hydrogen ecosystem development
LEADING THE HYDROGEN ECOSYSTEM DEVELOPM ENT Electrolysis CCU + Low-Carbon H 2 CCS + Low-Carbon H 2 Denmark France (In Devt.) Antwerp / Benelux KEY 1.2 MW 1 CO2 Capture “Cryocap” CO2 Capture FIGURES Electrolysis Bécancour, QC 1x 20MW 1.2 Mt of H 2/ year Large scale 1,850 k m H 2 electrolysis (In Devt
Slide 43: Master the full value chain, invest in production and distribution
M ASTER THE FULL VALUE CHAIN, INVEST IN PRODUCTION & DISTRIBUTION Energy Sourcing Production & Distribution Build, own and operate Secure access to clean energy sources Long-term contracts for large volumes Leverage Air Liquide’s Leverage AL footprint to provide competitive purchasing power for and
Slide 44: Build large scale electrolysis capacities
BUILD LARGE SCALE ELECTROLYSIS CAPACITIES H2 Securing long-term low-carbon electricity supply H2 Leveraging Air Liquide pipeline network O2 for increased competitiveness Value low-carbon H2 and O2 3GW Developing partnerships in all technologies Electrolysis capacity invested by 2030(a) (a) Including
Slide 45: The 20 MW Becancour electrolyzer example
BUILD LOW CARBON HYDROGEN CAPACITIES THE 20 M W BECANCOUR ELECTROLYZER EXAM PLE Largest PEM electrolyzer running on hydropower (started in Q4 2020) Integration in existing AL basin, with H2 liquefier For industrial use and mobility > 100 MW 20 M W 1.2 MW 2018 2020 2022-23 Sustainability day 47
Slide 46: Focus on a basin: the Belgium-Netherlands ecosystem
FOCUS ON A BASIN THE BELGIUM -NETHERLANDS ECOSYSTEM A favourable ecosystem H-vi si on ▪ Strong renewable energy potential Porthos ▪ Major industrial & transportation hub Electrolyzer ▪ Strong national & EU support for emission reduction HyTruck s Large Air Liquide footprint ▪ 7 H2 production units a
Slide 47: Develop hydrogen supply chain and mobility through partnerships
DEVELOP HYDROGEN SUPPLY CHAIN AND M OBILITY THROUGH PARTNERSHIPS Partnership with Hyundai Consortium for Heavy Duty & Light Duty Leverage existing Large Industries infrastructure in Yeosu basin Somie Kim Director, Hydrogen Energy Air Liquide Korea Sustainability day 49
Slide 48: Creating a low-carbon hydrogen ecosystem by leveraging key basins
CREATING A LOW-CARBON HYDROGEN ECOSYSTEM BY LEVERAGING AIR LIQUIDE KEY BASINS Nordics Leverage on Air Liquide footprint Northeast & to offer reliable low-carbon industrial Eastern Canada Dunkirk solutions West Normandy Coast Paris Use industrial infrastructure to Rhine/Ruhr TX/Gulf Benelux anchor pr
Slide 49: Hydrogen business to more than triple before 2035
HYDROGEN BUSINESS TO M ORE THAN TRIPLE BEFORE 2035 At Before 2035 Capturing demand: Today ▪ Low Carbon + Renewable H2 offer Least ▪ New H2 industrial applications 3x ▪ Carbon Capture as a service Sales ~€2bn >€ 6bn ▪ H2 mobility Capturing additional value by decreasing customers CO2 footprint Invest
Slide 50: Creating value for a low-carbon society
SETTING A TRAJECTORY TO REACH CARBON NEUTRALITY BY 2050 M ilestones towards Carbon Neutrality by 2050 ASSETS A Decarbonizing through energy management, carbon capture, and zero-emission technologies CUSTOM ERS C Support hard-to-abate industrial sectors with low carbon offers Creating value ECOSYSTEM
Slide 51: Creating value through energy transition
CREATING VALUE THROUGH ENERGY TRANSITION Committed to Leveraging on ▪ Carbon neutrality by 2050 with key ▪ Deployment of ESG program milestones ▪ Long-term relationships with customers ▪ Accelerate growth thanks to leadership position in Energy transition ▪ Existing asset footprint ▪ Innovation ▪ St
Slide 52: Energy transition already supporting our growth
ENERGY TRANSITION ALREADY SUPPORTING OUR GROWTH Energy Transi ti on Related Sales From Core Business 650m O2 for Blast O2 to Glass enScribe ~€ Furnace Float ~ €440m and New M arkets 2021 2018 Biomethane & estimate New Technologies H 2 M obility of energy transition projects in 2019 & 2020 +13% Sales
Slide 53: And accelerating: investment opportunities
AND ACCELERATING Investment Opportunities 12-m onth portfoli o Selectivity in the projects 2019 2020 Same expected returns Share of 44% Energy Transition 29% Leverage existing basins projects Apply Large Industries - Industrial Merchant combined business 2.9bn 3.1bn 12-month Portfolio ~€ ~€ model Su
Slide 54: Hydrogen ambition is part of it
HYDROGEN AM BITION IS PART OF IT Before 2035 By 2030(a) Sales Capex Electrolysis >3x +~€8bn 3GW 6 >€ bn (a) Including 1 GW decided still under construction Sustainability day 56
Slide 55: But opportunities go far beyond
Takeover & decarbonize Low-Carbon/Renewable H2 for refining Low-Carbon/Renewable O2 and H2 for steel and chemicals CO2 capture as a service BUT OPPORTUNITIES GO FAR BEYOND On-site generation for IM customers enScribe offer for Electronics customers AliveTM : ASU + Energy Storage Biogas upgrading Sus
Slide 56: Recognizing progress pace is not fully under our control
RECOGNIZING PROGRESS PACE IS NOT FULLY UNDER OUR CONTROL Paris Agreement alignment CO2 Storage Public support : Policies, Infrastructure CO2 storage availability and Regulation Multi-stakeholder alignment Efficient CO2 pricing 0 Low-Carbon Electricity Energy Transition is global Decrease i
Slide 57: Climate now fully embedded in our decision processes
CLIM ATE NOW FULLY EM BEDDED IN OUR DECISION PROCESSES Carbon impact as part of the M anagement of Carbon impact investment decision cri teri a i n local operati ons ▪ Systematic evaluation of ▪ Deployment of dedicated reporting on CO2 ▪ environmental impact emissions ▪ CO2 reduction levers ▪ Alloca
Slide 58: Innovation at the heart of a new low-carbon world
INNOVATION AT THE HEART OF A NEW LOW-CARBON WORLD A Global ecosystem for Innovation 33% close to markets and customers Annual i nnovati on Paris Frankfurt Yantai Seoul Tokyo expenses(1) for Energy Transi ti on Recent major technology partnerships Shanghai Newark, DE Dubai 3 E&C manufacturing centers
Slide 59: We remain highly committed to profitable and sustainable growth
WE REM AIN HIGHLY COM M ITTED TO PROFITABLE AND SUSTAINABLE GROWTH Portfolio IM Price / M ix Efficiencies M anagement divestitures bolt-on acquisitions 2016 2017 2018 2019 2020 Cost of new developments more than compensated by pursued performance efforts Sustainability day 61
Slide 60: III - Care for patients
III - Care for patients Diana Schillag Vice President Sustainability day 62
Slide 61: Outstanding healthcare in 2020: supporting patients and hospitals
OUTSTANDING HEALTHCARE IN 2020: SUPPORTING PATIENTS & HOSPITALS DURING A GLOBAL HEALTH CRISIS CONTRIBUTION FROM ALL OUR HEALTHCARE ACTIVITIES Servicing hospitals with medical oxygen Increased production of ventilators Support to chronic patients at home Sustainability day 63
Slide 62: Healthcare trends accelerated by the pandemic
HEALTHCARE TRENDS ACCELERATED BY THE PANDEM IC Business strategy confirmed Increased recognition of AL as a major and reliable actor in healthcare Strengthened relationships with healthcare authorities AL Healthcare to support the continuum of care and transformation of healthcare system Pursue inno
Slide 63: Leverage healthcare societal role in mature economies
LEVERAGE HEALTHCARE SOCIETAL ROLE IN M ATURE ECONOM IES Patients are at the heart of what we do Improve the quality of life of chronic patients at home through Value-based Healthcare By leveraging our proximity and understanding of patients’ expected outcomes By combining digital and human support I
Slide 64: Leverage healthcare societal role in low and middle income countries
LEVERAGE HEALTHCARE SOCIETAL ROLE IN LOW AND M IDDLE INCOM E COUNTRIES Facilitating access to O2 for rural communities Up to 800,000 deaths of child pneumonia every year and lack of access to oxygen in rural areas By equipping with O2 primary care facilities in villages ▪Air Liquide Access Oxygen Pr
Slide 65: IV - Trust as the base to engage with our employees
IV - Trust as the base to engage with our employees Armelle Levieux Vice President Group Human Resources Sustainability day 67
Slide 66: Engaging with our employees
ENGAGING WITH OUR EM PLOYEES For people to deliver their best performance it is our responsibility to create a SAFE, INCLUSIVE and COLLABORATIVE workplace Sustainability day 68
Slide 67: Trust to engage with our employees
TRUST TO ENGAGE WITH OUR EM PLOYEES One ambition: zero accident Safety at w ork Commitment: 100% of employees under a common Wellbeing beyond the basis of care coverage by 2025 including life w ork place insurance, health coverage and maternity leave Create equal opportunity for all and promote a cu
Slide 68: Delivering the best in exceptional situations
DELIVERING THE BEST IN EXCEPTIONAL SITUATIONS Sustainability day 70
Slide 69: V - Trust as the base to build a best in class governance
V - Trust as the base to build a best in class Governance Benoît Potier Chairman & Chief Executive Officer Sustainability day 71
Slide 70: Board of directors: high independence and diversity
BOARD OF DIRECTORS: HIGH INDEPENDANCE AND DIVERSITY As of December 31, 2020 82% of independent Directors* Independence 2 Employee Directors 1 independent Lead Director 55% Non-French Directors* from 5 nationalities Diversity 55% Women* 4 Committees including the ESG Environment and Society Committee
Slide 71: ESG cascading down the organization
ESG CASCADING DOWN THE ORGANIZATION Social and environmental stakes embedded Board of Directors in the agenda Dedicated internal Executive Vice-President in charge of sustainable structure development and dedicated Sustainability department Roll-out of ESG ambition in Hubs & Clusters Collective thro
Slide 72: A strengthened dialog with stakeholders
A STRENGTHENED DIALOG WITH STAKEHOLDERS Integrity and transparency governing behaviors and actions Ethics in Program based on business: ▪ a strong governance: Ethics Committee, Control a prerequisite to Department, Ethics officer action for all our ▪ the renewed and enhanced Code of Conduct employee
Slide 73: Conclusion and key takeaways
Conclusion and Key takeaways Benoît Potier Chairman & Chief Executive Officer Sustainability day 75
Slide 74: Time to act for a sustainable future
TIM E TO ACT FOR A SUSTAINABLE FUTURE 1 Abatement of CO2 emissions 2 Care for patients T rust to engage w i th our em ployees 3 as the base to bui ld a best i n class governance Sustainability day 76
Slide 75: Commitment to reach carbon neutrality and key milestones
COM M ITM ENT TO REACH CARBON NEUTRALITY AND KEY M ILESTONES CO2 emissions start Reach Carbon Air Liquide decreasing in absolute value Neutrality by 2050 Commitments ~2025 2035 2050 Decrease scope 1 & 2 CO2eq emissions in absolute value by -33%(a) (a) from 2020 Market based emissions of 32.5 million
Slide 76: Sustainability, also a growth opportunity for Air Liquide
SUSTAINABILITY, ALSO A GROWTH OPPORTUNITY FOR AIR LIQUIDE An ambition to triple our H 2 business A unique position to leverage Before 2035 By 2030(a) Strong Innovation Business M odel Sales Capex Electrolysis >3x +~€8bn 6bn 3GW Basin Customer >€ Footprint Relationship (a) Including 1 GW decided stil
Slide 77: Creating value for a low-carbon society
Creating value for a low-carbon society A M AJOR COM M ITM ENT TOWARDS CARBON NEUTRALITY IN 2050 Leading our industry in committing to actions for a sustainable future Time to ACT 2021: Deployment of local and global programs Follow our progress Annual KPI up-dates Sustainability day 79
Slide 78: Break
BREAK
Slide 79: Q&A
Q&A