S U S T A I N A B I L I T Y R E P O R T 2 0 1 9 A N D 1 ST H A L F O F 2 0 2 0

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SUMMARY

Collective action P4 A team of passionate people P16

at the heart of our approach
to progress
Ensuring safety in the workplace P18

Seppic affirms its vision P6

Ensuring the professional P20
P8 development of our associate
Seppic at a glance

P10 Developing talent and expertise P22

Our Business Model

Our CSR program P12

Promoting diversity and fighting P26
against discrimination
and organization

Adapting to the health crisis during P28

01
the first half of 2020

Performance indicators P58

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Living in a healthy environment P30
A thoughtful and conscious innovation P32
for the ingredients of tomorrow
Building long-term relationships P46
with our stakeholders
Conducting our business with P48
the highest ethical standards

Preserving biodiversity P38

Building relationships founded on trust P50

Acting for climate P44

Creating value locally P54

02 03 SEPPIC | 3
 SUMMARY
COLLECTIVE ACTION
AT THE HEART OF OUR
APPROACH TO PROGRESS
JEAN-BAPTISTE DELLON
Chief Executive Officer
T
he first half of 2020 will remain
characterized by a complex
health situation. Thanks
to the collective mobilization
of Seppic’s employees, and to Seppic’s
development model based on value
creation for all, our company has shown
itself to be resilient. We have been able
to adapt our working methods to ensure
the health and safety of our employees
and continue to serve our customers,
whether they manufacture medications,
hand sanitizers, personal hygiene products,
detergents, or veterinary vaccines.
In the first quarter of 2020, we also
launched our new plant in the United
States, a facility that brings us closer
to our North American customers
and opens up new development
prospects for Seppic.
Seppic has adopted the vision
of helping everyone enjoy a healthy life
in a healthy environment. Corporate
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A TEAM OF PASSIONATE PEOPLE 01
Social Responsibility (CSR) is at the heart
of this vision and has been the subject
of strong engagement in 2020.
Our first sustainability report details
our CSR program, our actions,
and our results. It also seeks to address
one of our key challenges : better
informing our stakeholders of what Seppic
is currently doing and what it wishes
to do in terms of CSR in order to make
collective progress. This is a deliberate
approach that complements the Universal
Registration Document from the Air Liquide
group, of which Seppic is a subsidiary.
I would like to thank all
of our stakeholders for their commitment,
loyalty and contributions. I would
especially like to thank our employees,
our customers, our suppliers,
the communities in which we operate,
as well as our shareholder Air Liquide.
LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

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 SUMMARY A TEAM OF PASSIONATE PEOPLE 01

SEPPIC AFFIRMS ITS VISION

AT SEPPIC,WE STRIVE TO HELP EVERYONE ENJOY

A HEALTHY LIFE IN A HEALTHY ENVIRONMENT.
This is why we create unique ingredients for products used every day
by consumers, patients and professionals.

This vision gives meaning to our actions and commits us to a shared future.
It is supported by four pillars that make up our story.

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G R EAT P RO D U C T S S TA R T
WI T H U N I QU E I N G R ED I EN T S.
Conscious innovation and robust science are
at the heart of what we do. We design and produce
ingredients with the highest respect for people
and the environment.
Advancing the science of ingredients for all.

GR EAT TRU S T S TA RTS

WITH C ON TI NU E D DE DI CATI ON .
We make each ingredient and serve each customer
with the same level of care – acting locally and
globally to build close and long-term relationships.
Committed to every customer’s future.

G R EAT I N S P I R AT I O N S TA R T S
WI T H S H A R ED PA S S I O N .
We are a team of talented women and men who
love what we do. By combining passion with a broad
expertise, we formulate the best solution to every
customer’s challenge.
Empowering each of us to unleash our potential.

GR EAT STORI E S S TA RT
WITH BOL D LE A P S.
Great journeys often begin with inspiration.
Having worked for over 75 years across multiple
industries, we are always excited to push
boundaries and open up new opportunities.
Exploring the next possibility.

Through innovative ingredients that serve health and well-being,

as part of Air Liquide Healthcare, we contribute
to changing care. Seppic, ingredients that inspire.
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 SUMMARY A TEAM OF PASSIONATE PEOPLE 01

SEPPIC AT A GLANCE

Founded over 75 years ago, Seppic, a subsidiary of the Air Liquide group
since 1986 and a part of Air Liquide Healthcare, develops, manufactures
and markets unique ingredients for products in numerous industries :

Beauty care : Seppic is a leading
actor in the skin care industry.
It is especially well-known for
its rheology-modifying polymers,
emulsifiers, emollients — sources
of sensory experiences
and creativity for formulators —
and its active ingredients.
Animal health : Working alongside
veterinary laboratories to prevent
animal diseases, Seppic is a major
player in farm animal and pet
vaccinations with its ready-to-use
adjuvants based on emulsions,
micro-emulsions, and polymers.
Nutraceuticals : Seppic offers
active ingredients for skin care
and sports recovery, as well
as ingredients for tablet
film-coating and galenic forms
dedicated to dietary supplements.
Performance materials : Seppic
creates specialty ingredients,
particularly surfactants derived
from bio-sourced materials
such as sugars, that respect
the environment. These are used
to compose end-use products
across a wide range of markets,
from detergents to oil drilling.
Pharmaceuticals : Seppic offers
pharmaceutical excipients suitable
for oral, topical, and parenteral routes
of administration. These include
film-coating agents for tablets,
injectable solubilizers, polymers,
emulsifiers and solubilizers
for dermopharmacy, adjuvants for
therapeutic and prophylactic vaccines,
and the active ingredient TECA.

K E Y F I G U R E S 2 0 1 9  :

774 employees in 14 countries, 6 000 customers, in 100 countries

80 distributors
WITH 615 IN FRANCE 5 customer technical service centers
Revenues consolidated with Air Liquide
Healthcare activities : 3,7 billion euros 5 MANUFACTURING SITES
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M A N U FA C T U R I N G S I T E S
Seppic acquired its largest manufacturing site, Société was built in 2007. In 2013 and 2017, Seppic acquired
des Produits Chimiques de la Montagne Noire, in BiotechMarine and Serdex in the field of plant-based
Castres, France, in 1972. This site houses the largest cosmetic active ingredients. In 2020, a brand new
Seppic research center, which opened in 1986. Our manufacturing site was opened in Virginia, United States.
manufacturing site in China, dedicated to animal health,

CASTRES, FRANCE S E R D E X , PA U, F R A N C E B I OT E C H M A R I N E , P O N T R I E U X ,
I N G R E D I E N T M A N U FA C T U R E D I N G R E D I E N T M A N U FA C T U R E D FRANCE
Polymers, surfactants, emulsifiers, active Cosmetic and pharmaceutical active
I N G R E D I E N T M A N U FA C T U R E D
ingredients, vaccine adjuvants, coating ingredients resulting from the extraction
Cosmetic active ingredients derived from
agents, for cosmetic, nutraceutical, of Malagasy plants
marine biotechnologies and the extraction
pharmaceutical, veterinary products
INFRASTRUCTURE of algae and marine plants
and performance materials
6 hectare surface area
INFRASTRUCTURE
INFRASTRUCTURE 2 manufacturing units
3.5 hectare surface area
8 hectare surface area Innovation laboratories dedicated
4 manufacturing units
26 manufacturing units to botanical active ingredients
Innovation laboratories dedicated
Innovation laboratories
C E R T I F I C AT I O N S A N D S TA N D A R D S to marine active ingredients
European Customer Technical
Pharmaceutical Good Manufacturing
Service Center C E R T I F I C AT I O N S A N D S TA N D A R D S
Practices Part 2
ISO 9001
C E R T I F I C AT I O N S A N D S TA N D A R D S UEBT Member
Pending EFfCI certification
ISO 9001
100% RSPO Mass Balance certified
ISO 14001
palm derivative inputs (palm equivalent)
OHSAS 18001
EFFCi
EXCiPACT
Pharmaceutical Good Manufacturing
Practices Part 2
72% RSPO Mass Balance certified
palm derivative inputs (palm equivalent)
HACCP

P O LY KO N M A N U FA C T U R I N G , Q I N G P U, C H I N E
V I R G I N I E , E TAT S - U N I S I N G R E D I E N T M A N U FA C T U R E D
Veterinary vaccine adjuvants
I N G R E D I E N T M A N U FA C T U R E D
Ingredients for cosmetic and INFRASTRUCTURE
pharmaceutical products 0.5 hectare surface area
1 manufacturing unit
INFRASTRUCTURE
Asian Customer
8 hectare surface area
Technical Service Center
4 manufacturing units
C E R T I F I C AT I O N S A N D S TA N D A R D S
C E R T I F I C AT I O N S A N D S TA N D A R D S
ISO 9001
Site opened in 2020
EXCiPACT
RSPO
Classified as environmentally-friendly
ISO 9001
by local Chinese authorities
EFfCI

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 SUMMARY A TEAM OF PASSIONATE PEOPLE 01

AT SEPPIC, WE STRIVE TO HELP EVERYONE ENJOY

ASSETS AND CHALLENGES OUR BUSINESS MODEL

Resources for great results Create unique ingredients for products used
Passionate men and women every day by consumers, patients and professionals.
with a wide range
of expertise and strong
ethical values

Technologies to create
high-performance and
eco-friendly ingredients

A global presence 0 1 I N N OVAT I O N 0 2 SUBSTANTIATION

close to our customers
Patented and responsible Ingredients with proven
Growing markets, innovation efficacy and high performance
a sustainable and
committed shareholder

Responding to societal and

environmental challenges

Energy and environmental 0 3 MANUFACTURING 0 4 T EC H N I CAL

transition Safe and compliant A S S I S TA N CE
Demand for naturalness ingredients, high standards Robust technical expertise
and transparency of quality to support our customers

Transformation of the value chain

through digital technologies

Patient adherence
to the treatment, quality of life
0 5 GLOBAL ACCESS
A large catalog of ingredients
available to all, anywhere

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A HEALTHY LIFE IN A HEALTHY ENVIRONMENT

V A L U E C R E AT I O N

PREREQUISITES TO ACTION Sharing the added value

with our stakeholders
Employees
Supporting employment
Ensuring safety, health
and wellbeing
Developing skills
Customers

ETHICS Offering safe, responsible

and innovative ingredients
Being responsive and reliable
SAFETY
Consumers, patients
and professionals
Offering safe, responsible
H E A LT H ingredients, and naturalness
Providing transparency
RESPECT Suppliers
FOR HUMAN
RIGHTS Developing their operations
over the long term
Shareholder
Zero accidents, high
ethical standards
Maintain sustainable
and profitable growth
Local Communities
Reducing carbon footprint
and the impact on biodiversity
Managing industrial risks
Contributing to local development

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 SUMMARY A TEAM OF PASSIONATE PEOPLE 01

OUR CSR PROGRAM

AND ORGANIZATION

Taking responsible action and making progress on social, societal,

and environmental issues are at the heart of our vision. Our current CSR
program is designed as a continual improvement process
with commitments based on three pillars :

CSR PROGRAM

02. CARING FOR

TH E EN V I RO N MEN T.
Continuously reducing the environmental
footprint of Seppic’s activities, particularly
with regard to climate and biodiversity.

01. C AR IN G F OR OU R P E OP LE .
Enabling everyone to work safely
and in good health, promoting well-being
and personal development. 03. CARING FOR ALL OUR STAKEHOLDERS.
Engaging and listening to our stakeholders, particularly
our suppliers and customers, in order to move forward
together throughout the supply chain — starting with
raising awareness of our CSR commitments and actions.

SETTING OUR OBJECTIVES

In 2020, we established working groups to define our
new action plan and medium-term climate objectives.
We focused especially on the energy used by our
manufacturing sites and the transport of goods to our
customers. We are also supported by an environmental
consulting firm to structure and prioritize our biodiversity
initiatives, from sourcing to end-of-life. Our mid-term
objective is to measure our impact and dependencies
on biodiversity as a whole.

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O R G A N I Z AT I O N A N D P R O C E S S
CSR process : The CSR Climate : The CSR coordination
coordination team conducts team carries out an annual carbon
management reviews of the CSR assessment. The Director
process biannually. We intend of Health, Safety, Environment
to strengthen our CSR process - Risk Management (HSE-RM)
according to the ISO 26000 vouches for the environmental
standard in 20211. action plans at our sites.
Biodiversity : The RSPO
coordinator pilots the action plan
to achieve our sustainable palm
oil objectives. A Natural Sourcing
Manager leads strategy for
accessing genetic resources.

Social : The HSE-RM Director
steers the plan for work safety.
The Human Resources Department
manages social initiatives, including
the European Week for Sustainable
Development, payroll donations,
and the European Disability
Employment Week.
New ingredient development : The project teams and the Projects
Steering Committee use an environmental evaluation grid for each new
ingredient. A validation process with a steering committee has also been
implemented to ensure that the environmental impact of natural-sourced
samples for ingredient developments comply with the Nagoya Protocol
as well as other relevant national laws. Finally, the CSR coordination team
manages employee training in the eco-design of new ingredients.

1
The ISO 26 000 standard relates to corporate social responsibility. It covers seven core issues: governance, human rights, working conditions and relationships,
the environment, fair practices, consumers, and communities and local development.

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 SUMMARY A TEAM OF PASSIONATE PEOPLE 01

CSR REPORTING

In 2015, Seppic adopted CSR objectives.

Progress made through to the year 2019 are highlighted hereafter.

2 0 % TA R G E T E D R E D U C T I O N I N C O 2 E M I S S I O N S at our facilities
by 2020 from 2011 (Scope 1 and 2). All sites have made efforts
to reduce consumption. Concurrently, Seppic has invested in modernizing
its industrial facilities while adapting to the health and beauty markets,
and integrated additional ventilation units and enhanced equipment
cleaning protocols that lead to higher consumption. Our industrial plants
increased from two in 2011 to five in 2020. This growth is the result
of the acquisitions of BiotechMarine and Serdex, followed by the construction
of the Polykon Manufacturing site, a brand new plant whose production
entered the market in the beginning of 2020. Seppic’s carbon intensity1

16 % decreased by 45% between 2011 and 2019, excluding

acquired plants and Polykon Manufacturing. Our CO2
emissions in absolute terms decreased by 16% between
2011 and 2019 on this same scope.

2 0 % TA R G E T E D W A S T E R E D U C T I O N
at our facilities by 2020 from 2011.
Significant progress has been
made to integrate our waste into
recycling channels. The Castres
site, which accounts for 70% of our
waste volume, recycled 95% of its
waste in 2019, compared to 81% in
2015. A methanation channel was
launched there in 2016. While the
overall volume of Seppic’s waste has
increased, Seppic’s total volume of
non-recovered waste has decreased
by 48% between 2011 and 2019,
excluding acquisitions.
20% TA R G E T E D W A S T E W AT E R
R E D U C T I O N at our facilities by
2020 from 2011. Due to enhanced
cleaning of our production equipment,
wastewater volume increased by
8% from 2011 to 2019, excluding
acquisitions. At the same time, our
pollution load has decreased and
the quality of wastewater from our
manufacturing sites has greatly
improved. Notably, the Castres site
reduced the organic matter load of its
wastewater, where Chemical Oxygen
Demand decreased by 29% from
2011 to 2019.

1
According to the Air Liquide group methodology, carbon intensity is the ratio of Scopes 1 and 2 carbon
emissions to EBITDA and is expressed in kgCO2/€.

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GOAL OF 100% RSPO MASS BALANCE CERTIFIED PALM-DERIVED INPUTS BY 2025.

The RSPO Mass Balance (MB) certification rate of our palm derivative (palm

70,5 % equivalent) purchases has increased significantly since

2015. In 2019, 70.5% of our palm derivative inputs were
MB certified. We are on track to meet our objective of
achieving 100% MB in 2025. Beyond certification, Seppic
has also carried out many further initiatives contributing
to the creation of a more sustainable sector (cf Section II.b).

GOAL OF 100% OF NEW INGREDIENTS G OA L O F 1 0 0 % O F O U R O P E R AT I O N S

L AUN C HE D P ROV I D I N G AT LEA S T O N E INVOLVING MORE THAN 10 EMPLOYEES

88
HEALTH OR ENVIRONMENTAL BENEFIT. E N G AG I N G I N A N N UA L C O M M U N I T Y

% The index for new

ingredients launched
P ROJ E C T S. 90% of our operations
employing more than 10 people globally
has grown steadily have organized community service
over the years, from initiatives at the behest of management
30% in 2015 to 88% or employees in 2019 (cf Section III.c).
in 2019. This is driven by the use of
an environmental assessment grid
used in development projects, and
because health is also at the heart
of our new pharmaceutical and
animal health ingredients.

EXAMPLES OF NEW PRODUCTS LAUNCHED IN 2019 AND IN THE 1ST HALF OF 2020

Emogreen TM C69 : easily biodegradable emollient, 100% vegetable origin

(Cosmos, NATRUE, and Mass Balance).

SepifineTM BB : easily biodegradable texturing agent as by-product of other processes, the shell
BEAUTY of the babassu nut, whose harvest respects the Origens Brasil®program, guaranteeing traceability,
total transparency, and equitable distribution of resources (Ecocert).

AsparagusTM : active ingredient derived from the red alga Asparagopsis armata
(Ecocert, Cosmos, NATRUE, Halal, Mass Balance).

Sepivac™ SWE : an oily adjuvant used in human prophylactic vaccines, co-developed

by Seppic and the Vaccine.
H E A LT H Sepifilm™ White TF : white film-coating agent for medicines that does not contain titanium dioxide.

Montanide™ ISA 763 B VG : 100% plant-derived vaccine adjuvant developed to formulate water-in-oil
emulsions for fish vaccination.

For this first sustainability report, we cover a period exceeding a year, from January 1, 2019
to June 30, 2020. Future reports will cover calendar years from January to December
and will be published at the midpoint of the following year.

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 A TEAM OF
PASSIONATE PEOPLE

CARING FOR OUR PEOPLE 

Seppic’s employees and their safety, health,

well-being, and professional development
are at the heart of Seppic’s concerns.
It is their commitment and talent
that enable Seppic to serve its customers
and their product end-users everyday.

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 A TEAM OF PASSIONATE PEOPLE 01

ENSURING SAFETY
IN THE WORKPLACE

Safety is a fundamental value of the Air Liquide group. The Air Liquide group
has signed the United Nations Global Compact, whose 10 founding principles
relate to human rights, international labor standards, the environment,
and the fight against corruption. It also signed the « Responsible Care »
charter, which aims to improve performance in terms of health,
safety, and environmental protection.
Safety is based on universal values, management, training, and reporting.
It is embodied at our sites on a daily basis, with particular
attention paid to risk exposure.

B E E S A F E  : B E I N G A N A G E N T O F O N E ’ S O W N
SAFETY AND THE SAFETY OF ALL
Bee Safe is a Seppic improvement initiative that promotes individual
employee commitment to safety and dialogue within teams. All Seppic
employees are thereby invited to take responsibility for their own safety
and those around them. Launched in 2018 and rewarded with
a nomination for the Victoires Sécurité Santé France awards within
the Air Liquide group that same year, Bee Safe focuses on three
dimensions of safety :

Benevolence (Bienveillance) : each employee watches over

their colleagues and trusts them to ensure their safety.

Enhanced listening (Écoute) : each employee contributes

to the group, dialogue is free-flowing, and initiative is encouraged.

Extending aide (Entraide) : employees work as a team to identify

dangerous situations and practical solutions to everyday problems.

93 % Initial and follow-up trainings are organized for employees

and managers. By the end of 2019, the Bee Safe program
had been rolled out at our three French production sites
and headquarters, where 93% of employees had been
trained. Seppic aims to reach 100% of trained employees
and implement the program in its operations outside France.

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Seppic regularly reports its safety results to the Air Liquide group.
Each month, the Air Liquide group distributes an internal HSE Flash, raising
employee awareness of safety issues and drawing up a report on accidents
and good practices, with employee testimonials from various entities.

MANAGING INDUSTRIAL RISKS

Each of Seppic’s industrial sites applies the Air Liquide group’s Industrial
Management System. Internal audits ensure the implementation
of its requirements.
Our sites in Castres and in Richmond, Virginia, United States, require the use
of some raw materials that justify a Seveso upper tier classification in Europe
and its equivalent in the United States.
The Castres site is subject to several annual inspections by the DREAL
(office for regional management of the environment, development,
and housing). It has voluntarily committed itself to ISO 14001 and OHSAS
18001 certification, which, with five audit days per year, ensures continuous
progress in prevention and protection systems. This site has a Technological
Risk Prevention Plan (PPRT) to which it contributes as operator, as well as a
Specific Intervention Plan (PPI) and an Internal Operation Plan (POI). The latter
are subject to regular training exercises. A Site Monitoring Committee (CSS)
is formed each year to maintain dialogue with the site’s neighbors.
The Richmond site is registered with the Environmental Protection Agency
(EPA) in the United States. Built to the highest fire protection standards,
the site complies with all U.S. safety standards (Occupational Safety
and Health Administration, OSHA) and has implemented its own safety
management system (Process Safety Management, PSM).

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 A TEAM OF PASSIONATE PEOPLE 01

ENSURING THE PROFESSIONAL

DEVELOPMENT OF OUR ASSOCIATE

Seppic, a human-scale company within a large group, pays particular

attention to working conditions, quality of life, and adapting to new work
methods, in an ongoing improvement approach.

WORK - LIFE BALANCE

Seppic has adopted several company policies to improve the working
conditions of employees at all of its French sites :

25 % The « work from home » agreement, signed in

2018, has been renewed in 2019. It allows eligible
employees to have, with manager approval, one day
of remote work per week. 25% of our French
employees entered into a teleworking contract
by the end of 2019. This program was broadened during the 2020
health crisis, enabling continued Seppic operations even during
confinement periods.

Seppic also allows for part-time work when compatible with the
efficient operation of the company. As of December 31, 2019, 44
employees have chosen to work part-time.

The evolution of work methods and technologies facilitates interaction

between employees. To promote a healthy work-life balance, Seppic
committed to the «right to disconnect» in a 2019 agreement governing
the use of technology outside working hours.

Q UA L I T Y O F T H E W O R K E N V I R O N M E N T
In France, employees moved into new headquarters at the start of
2019. Embodying Seppic’s values, the new premises are designed for
collaborative work and offer a green rooftop terrace with a vegetable
garden and four beehives. In Poland, our staff moved into new, modern,
and open offices in 2020, promoting interaction with other companies.

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P R E V E N T I N G P S YC H O S O C I A L R I S K S
At the Castres and La Garenne-Colombes facilities, Seppic has launched
several initiatives to prevent psychosocial risks. Since 2019, a collaborative
pilot approach at La Garenne-Colombes has been involving all stakeholders
to establish an overview of working conditions. Working groups conducted
interviews with employees and presented their findings to a steering
committee in charge of implementing measures to improve our organization
and working environment.
At the Castres plant, a social worker is regularly on duty at the site
and provides support to employees in the event of professional
or personal difficulties.

I N I T I AT I V E S F O R E N T I T I E S O U T S I D E O F F R A N C E
20% of Seppic employees work in entities outside France. These entities
set up local initiatives to promote balanced living as well as the well-being
of their employees at work. For example, employees in China and Brazil
are encouraged to take part in physical activity. In São Paulo, Seppic
offers the Gympass program, while in Shanghai, gym equipment was
installed in the office in 2020. The Qing Pu and Shanghai sites, in China,
offer vacation days that exceed local laws and regulations, and host family
and outdoor activity days. In Brazil, Seppic has introduced workshops to
develop collaboration and improve the workplace atmosphere.

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 A TEAM OF PASSIONATE PEOPLE 01

DEVELOPING TALENT
AND EXPERTISE

Developing the talents of our people, attracting talented people,sharing

knowledge and know-how, are all crucial in the success of our company.

SEPPIC HAS THE AMBITION OF BECOMING

A L E A R N I N G O R G A N I Z AT I O N

A learning organization is « an organization skilled at insights. » It constantly questions itself and evolves,
creating, acquiring, and transferring knowledge, and thanks to employee initiatives, collaborations, and
at modifying its behavior to reflect new knowledge and contributions to continuous improvement.

T E C H N I C A L E X P E R T I S E A N D I N N O V AT I O N , K E Y R E S O U R C E S
F O R V A L U E C R E AT I O N
Seppic values employees who have developed significant expertise.
The Technical Community Leaders (TCL) program established
throughout the Air Liquide group recognizes these experts
and encourages sharing knowledge and innovation.

32
There are 32 Seppic employees in this program, including
8 with an international scope within the Air Liquide group.
They participate in reflection groups on strategic issues,
lead training sessions, and contribute to scientific outreach
at conferences and within professional associations.

15 % This expertise is a contributor to Seppic’s innovation

dynamic. 15% of the staff, more than 110 people,
are entirely devoted to innovation. They work in a network
of four laboratories : Castres, BiotechMarine, Serdex,
and a laboratory at the Veterinary School of Maisons-Alfort.

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FRANÇOIS BERTRAND, TCL International Expert

in vaccine formulation and emulsions
« Adjuvants are essential components of vaccines for human and
animal health. Seppic has built its leadership in this field, thanks in
particular to renowned experts who share and pass on their expertise.
In the Sepivac SWE project for human prophylactic vaccines, I have
had the pleasure of using my expertise both internally with the project
team and externally with our partners. »

DEVELOPING SKILLS
Training of employees is designed to develop both their own employability
and the company’s sustainable performance. In 2019, Seppic targeted
training courses based on employee experience and commitment,
the development of nimble and collaborative organizations, and the
enhancement of expertise. New digital tools have been implemented to
facilitate training access. These include the use of MOOC (Massive Open
Online Courses) and a digital self-training portal, ILoveLearning.
In 2019, Seppic employees completed an average of 23 hours of training.
New hires participate in an onboarding program and are subject to regular
monitoring and mentoring to assist them with the technical aspects of their
position, as well as understanding the cultural and social environment.
Every year at the Castres plant, Seppic supports several collaborators
wishing to carry out a Validation of Acquired Experience as part of their
professional development in connection with the chemical engineering
degree at the Paul Sabatier University of Toulouse.
In France Seppic offers a coaching program for applicable employees
with pre-retirement workshops, interviews and specific training,
as well as a gradual transition to part-time work.

SUPPORTING CAREERS
Each employee benefits from personalized career management.
This is based on continued employee-manager dialogue to build a career
path adapted to their skills and in line with company needs. Every year,
in addition to the performance review (mandatory at two-year intervals
in France, but conducted annually at Seppic), employees meet with their
managers to assess the year’s progress and their personal objectives.

SEPPIC | 23
 A TEAM OF PASSIONATE PEOPLE 01

In 2019, 75% of Seppic employees attended this annual interview

(90% in France). In 2019, 133 employees also benefited from career
development meeting with their Human Resources Manager, either within
a specific context (integration assessment, beginning or end of a social
mandate, return from maternity or sabbatical leave) or as part of their
career monitoring and a mobility scheme.

CARLA PEREZ, Asia Pacific Beauty Care Business & Technical Manager
« I embarked on the Seppic adventure in September 1997, initially for
a work-study contract in Research & Development. 23 years later, after
having participated in the creation of Aquaxyl™ and Sepiwhite™ MSH,
living on multiple continents, and holding both technical and corporate
positions, I am still here, my passion for the cosmetics business and for our
customers intact. »

R E C O G N I Z I N G T H E Q UA L I T Y
O F E M P L OY E E P E R F O R M A N C E
Seppic recognizes the performance of its employees through career
development and a compensation policy. Our compensation policy is
based on performance, responsibilities associated with the position,
and the remuneration levels of the market. Mobility within Seppic entities
or towards subsidiaries of the Air Liquide group provides employees with
the opportunity to continually grow and develop their skills. Each employee
has access to internal Seppic job postings and the Air Liquide group’s job
center. In the case of expatriation, there is an existing support system
in place for assistance with visas, relocation, and schooling.

PA R T I C I PAT I N G I N A P R O C E S S
OF CONTINUOUS IMPROVEMENT
Seppic has implemented listening and feedback measures, such as
an internal engagement survey (MyVoice), the internal BeActEngage
program, and annual customer satisfaction surveys. Seppic will deploy
a program for continuous improvement and develop in-house training
by our experts to transfer knowledge.

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LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

SEPPIC | 25
 A TEAM OF PASSIONATE PEOPLE 01

PROMOTING DIVERSITY
AND FIGHTING AGAINST
DISCRIMINATION
In 2019, Seppic signed a company-wide agreement for employees
of its French entities on hiring, compensation,
training,and combating discrimination.

G E N D E R E QUA L I T Y I N T H E W O R K P L AC E

45 % In 2019, 45% of Seppic’s employees worldwide were

women. The proportion of women on the Executive
Committee was the same, and 58% of managers were
women. There is still room for progress in some areas,
particularly at the plant level, where production jobs
are predominantly male. Seppic also acts against sexual
harassment and gender bias. A representative on each
French site is in charge of informing, guiding, and supporting employees.

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LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

T H E G E N D E R E Q UA L I T Y I N D E X

79
The gender equality index between was 79/100 in
/ 1OO 2019 for the two largest Seppic entities (Castres and
Paris). This index is calculated according to differences
in compensation, the distribution of individual pay raises
and promotions, the number of female employees who
received a pay raise upon return from maternity leave, and parity among the
ten highest paid employees.

R E C R U I T I N G R E C E N T G R A D U AT E S
Seppic participates in many school forums, either directly or in partnership
with the Air Liquide group. In 2019, Seppic recruited 5 young graduates
with permanent contracts and employed 31 interns, work-study students,
and International Corporate Volunteers (VIE).

I N T E G R AT I N G A N D R E TA I N I N G E M P L OY E E S
WITH DISABILITIES
The Mission Handicap of Seppic and the Air Liquide group share the same
tagline : « Our differences drive our performance. » Seppic’s objective is not
only to meet its employment obligations, but also to become an inclusive
company. As part of its corporate agreement on Professional Equality,
Quality of Life at Work, and Disability signed in 2019 for the Castres
and Paris entities, Seppic has committed to :

Recruitment : prohibiting all forms of discrimination in hiring

and implementing measures to publicize job offers through a network
of partners dedicated to integrating people with disabilities.

Maintaining employment : assisting employees in administrative

procedures and adapting working conditions.

Communication and raising employee awareness : organizing

the European Disability Employment Week annually on the four French
sites. This event includes discovery workshops, lectures, and games
related to disability and how it is addressed in the workplace.

This approach has also been adopted by other Seppic entities, particularly
with respect to raising awareness, with, for instance, the organization
of workshops on diversity in the workplace, or choosing to use equipment,
or services provided by companies employing and training people,
with disabilities. Seppic is currently working on a diagnostic process with
regard to disability to further improve its approach.

SEPPIC | 27
 A TEAM OF PASSIONATE PEOPLE 01

ADAPTING TO THE HEALTH CRISIS

DURING THE FIRST
HALF OF 2020

The year 2020 will be remembered as the year of the human coronavirus
epidemic. The employees of Seppic skillfully adapted and modified their work
methods, and continued to serve their customers, in particular those who
played key roles in managing the crisis.

When the epidemic began in countries with Seppic operations, first in China,
then in Italy, France, India, and finally in the United States, and Brazil, Seppic
reacted swiftly and appropriately in each country, while continuing to prioritize
the health and safety of its employees.
Seppic is part of a production chain for products essential to human health
and safety, such as medications, veterinary vaccines, hand sanitizers,
hygiene agents, detergents, and water treatment products. Business
Continuity Plans were therefore drawn up to ensure both the safety
of employees and uninterrupted supply to customers.
In every country, employees were mobilized. No partial unemployment
measures were implemented. For essential production site employees, work
was structured with new measures to avoid contamination. Remote working
was introduced for other employees wherever the situation required it.

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LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

SEPPIC | 29
 LIVING IN A HEALTHY
ENVIRONMENT

CARING FOR THE ENVIRONMENT 

At Seppic, we strive to help everyone enjoy

a healthy life in a healthy environment.
As a manufacturer of ingredients that enter
into the composition of products used every day,
Seppic is aware of how importantit is to address
its impact on climate and biodiversity, at the
level of its manufacturing sites, its international
organization, and its ingredients.

SEPPIC | 30
SEPPIC | 31
 A THOUGHTFUL AND CONSCIOUS
INNOVATION FOR
THE INGREDIENTS OF TOMORROW

Seppic is attentive to the expectations of both its customers and the users
of their products. When it comes to new ingredients, a high level of safety,
compliance and performance remains an essential requirement. There is also
a demand for biosourced raw materials from sustainable and transparent supply
chains, ingredients with labels and certifications, manufactured with respectful
processes, and biodegradable.
Our research teams innovate to develop technologies and ingredients that are both
efficient and environmentally friendly, such as biodegradable ingredients designed
with renewable raw ingredients or processes with a low environmental impact.

D E V E L O P I N G E N V I R O N M E N TA L LY R E S P O N S I B L E T E C H N O L O G I E S
Seppic has a portfolio of environmentally friendly technologies that it
continuously invests in, such as sugar chemistry, marine biotechnologies,
and plant extraction. With the same objective, Seppic is also exploring
new technologies that combine ingredient performance and environmental
performance.

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LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

SUGAR CHEMISTRY

Sugar chemistry is used to create emulsifiers, the active ingredient

ingredients from renewable resources AquaxylTM and the hydrotrope
based on the 12 principles of green SimulsolTM SL 7 G are all derived from
chemistry. For example, MontanovTM this chemistry.

SEPPIC | 33
 MARINE BIOTECHNOLOGIES

The marine biotechnologies resources while allowing the

Celtosome TM
and CelebrityTM, exploration of their full potential
developed by Seppic to create through bioreactor cultures of
wesourceTM cosmetic active dedifferentiated marine plant cells
ingredients, preserve marine or macroalgae cells.

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LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

PLANT EXTRACTION

Plant extraction, when applied to
terrestrial plants such as Centella
asiatica, algae, or marine plants,
produces active ingredients that are
efficacious as well as environmentally
and socially friendly. Our Serdex and
BiotechMarine sites have expertise
in both the plant supply chain and
plant extraction.

SEPPIC | 35
 HEALTH TECHNOLOGIES

Seppic creates ingredients dedicated technologies, vaccine adjuvants

to human and animal health thanks and film coating.
to its proficiency in formulation

SEPPIC | 36
 LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

SHARING SCIENTIFIC KNOW-HOW

48
Seppic contributes to advancing the science of ingredients.
Its experts are encouraged to distribute their work.
Accordingly, in 2019, Seppic shared 48 scientific
communications. In May 2019, the toxicology and cosmetic
innovation teams were awarded the 1st and 2nd « Lester
Conrad » prizes at the 51st annual Conference of the ASCC (Australian
Society of Cosmetic Chemists).
Seppic contributes to a technological ecosystem that encourages reflection
on the challenges of sustainable development. It participates in five French
competitiveness clusters: Industries Agro-Ressources (bioeconomy),
Cosmetic Valley (perfumery-cosmetics), Axelera (chemistry and
environment), Agri Sud Ouest Innovation (agriculture and agro-industries)
and Pôle Mer Bretagne Atlantique (maritime resources). These clusters
help Seppic ensure a technological and market watch, participate in
collaborative research and development projects, and establish contacts
with players in the sector.
For the past 10 years Seppic has been a member of the «Association
Chimie Du Végétal» a consortium of companies dedicated to accelerating
the development of bio-based chemistry, and has been a member of its
board of directors since 2015. More recently, Seppic joined a research and
expertise center dedicated to the deployment of biomimetics in France.

D E P L OY I N G E C O - D E S I G N M E T H O D S
Seppic has created a grid for evaluating an ingredient’s environmental impacts
(carbon emissions, water consumption, and waste) throughout its life cycle
in order to identify areas for improvement. In 2020, Seppic has committed to
provide eco-design training to all those involved in the design process.

Raw materials obtention /

W H AT I S E C O - D E S I G N ? Energy sources
Eco-design aims to reduce
environmental impacts throughout
a product’s life cycle with
Product
equivalent or better performance Recycling ECO-DESIGN manufacturing
Valorisation
by integrating environmental of coproducts A COMPREHENSIVE
aspects from the design and APPROACH
development stage. This approach
is a source of innovation and value
creation. Transport
End-of-life

Usage

SEPPIC | 37
 PRESERVING BIODIVERSITY

Seppic recognizes how important it is to protect ecosystems, those in which

renewable resources are taken, waste is discarded, or products end their life,
beyond our production sites.

E N S U R I N G O U R S U P P LY O F R E N E W A B L E R E S O U R C E S
RESPECTS BIODIVERSITY

55 % of the raw materials Seppic uses are derived from plants.

This number is constantly increasing due to the high demand
from customers and consumers, along with Seppic’s
willingness to meet this expectation. It is essential for us
to ensure that our suppliers’ methods of obtaining these
resources are respectful of biodiversity and allow for a sustainable supply.

SEPPIC | 38
 LIVING IN A HEALTHY ENVIRONMENT 02
C O M P L I A N C E W I T H B I O D I V E R S I T Y R E G U L AT I O N S
Seppic respects the biodiversity regulations in each
country we access genetic resources and their derivatives
from. We also comply with the principles established by
the Convention on Biodiversity and the Nagoya Protocol
with regard to genetic resources and sharing the benefits
arising from their use. We constantly monitor the evolving
relevant regulatory instruments, as well as the status of
ENSURING GOOD HARVESTING PRACTICES
Seppic ensures that its suppliers implement good
harvesting practices.
Our BiotechMarine site in Pontrieux asks its suppliers
of algae and marine plants to sign a charter committing
them to respecting technical requirements in harvesting
and communicating the plants’ origins, and verifies that
they fill out a traceability sheet for each delivery. In France,
algae and marine plant harvesters also have an individual
harvesting authorization and declare monthly harvests to
Maritime Affairs so as to guarantee a responsible harvest.
BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03
the plant and marine species that we use with respect to
the CITES and UICN lists of threatened and endangered
species. We have implemented an internal validation
process with a steering committee to ensure that our
laboratories use raw materials in accordance with the
Nagoya Protocol and pertinent national laws.
The Serdex site in Pau involves harvesters in Madagascar
in the preservation of local natural resources. Serdex
has been a member of the Union for Ethical BioTrade
(UEBT) since 2008. It is committed to the continuous
improvement of its organization and the management of
its supply to take into account the impact of wild plant
collection on biodiversity, social, and environmental
issues. At the last adhesion audit in 2017, 95% of UEBT
membership obligations were met. As part of the UEBT
requirements, Serdex has prioritized improving ethical
practices in the Centella asiatica supply chain.
SEPPIC | 39
 PALM PLANTATIONS
80 %
of our palm derivatives
are tracable to mills
F I G H T I N G A G A I N S T D E F O R E S TAT I O N
Palm oil and its derivatives account for
half of the volume of Seppic’s inputs
of natural origin. Its fat chains provide
a wide variety of properties essential in
certain ingredients’ manufacturing. Its
harvesting has a higher yield than other
oils, but the increase in global demand for
palm, particularly for food and bioenergy,
is threatening primary forests. Seppic is
committed to transforming the palm oil
sector into a sustainable one.
Since 2010, Seppic has been a member
of the Roundtable for Sustainable Palm Oil
(RSPO), whose objective is to transform
the palm oil industry into a sustainable
SEPPIC | 40
PALM INGREDIENTS :
Performance
Biosourcing
Biodegrabality
OLEOCHEMICALS
COMPANIES
REFINERIES
industry. In 2019, 70.5% of Seppic’s palm
oil inputs were Mass Balance certified
while 3.5% were Book & Claim certified.
Seppic is proceeding with its goal to have
100% of its palm inputs certified Mass
Balance or Book & Claim in 2020, and
100% certified Mass Balance by 2025.
In 2019 and 2020, Seppic carried out
traceability reports on its procurements
with the help of Transitions and ASD
(Action for Sustainable Derivatives). As a
result, Seppic was able to trace 89% of its
palm oil derivatives to the refineries, 80%
to the mills and 25% to the plantations
for its 2019 supply base.
 LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

CHANTAL AMALRIC, Beauty Care Strategic Marketing

Manager & RSPO Coordinator
« Today, the palm sector is essential to the production of bio-sourced
ingredients. Seppic’s approach, reasoned and committed, is based upon
the certification and transparency of the sourcing of our purchases. This
allows us to measure impacts and implement projects in the field. I am
proud to see the progress made thanks to the strong support of senior
management and the commitment of our purchasing department. »

In 2019, Seppic also joined the ASD
initiative in order to mutualize traceability
efforts and field actions with other
companies. Launched a year ago, ASD
currently has 18 members, mostly
consisting of companies from the beauty
sector. Seppic’s ambition is for its palm
oil activity to have a positive impact. To
achieve this, Seppic fully adheres to
the NDPE (No Deforestation, No Peat,
No Exploitation) principles championed
by ASD. Its action plan is based in
transparency, impact analysis, and field
projects to sustainably transform the palm
sector.
Finally, Seppic completes an annual
survey on its commitments, procedures,
and achievements towards a sustainable
supply chain for palm derivatives, the
Sustainable Palm Index (SPI). Once
evaluated and verified by Transitions,
the independent firm behind this tool
created in partnership with L’Oréal, this
questionnaire generates a score reflecting
the level of sustainability of Seppic’s palm
procurement practices. In 2019, Seppic’s
SPI score was 80/100, up sharply from
2018 thanks to the implementation of a
transparency program, thus conferring a
« Compliant practices » status to Seppic.

SEPPIC | 41
 M A N A G I N G W AT E R A N D W A S T E AT M A N U FA C T U R I N G S I T E S
Seppic uses water to manufacture ingredients, cool plants, clean machines,
and for domestic use.
The Castres site accounts for more than 90% of Seppic’s water withdrawal
(approximately 420,000 m3) in 2019. Most of this water is taken from rivers
to cool the installations and returned to the source in a short circuit, avoiding
pollution and modification of its physico-chemical characteristics. City water is
reserved for the manufacturing of ingredients and facility cleaning to guarantee
product quality. All industrial water from the site is then controlled and cleaned
by a station equipped with four pre-treatment basins. These include an oil
separator to filter fatty products and recover energy from them, before sending
the waste waters to a treatment plant and finally to the city’s purification
plant. Basins recover rainwater, which is screened before being sent to the
river. Seppic is currently working on a wastewater recycling system in order to
reduce our need for city water at the site.
In the United States, the Virginia plant, opened in 2020, has been designed
with a zero-waste objective, reducing all site discharges to the strict minimum
and systematically adopting the principle of recycling. Purification systems
filtering final discharges have been installed, making the impact on the
environment nearly non-existent.

RECYCLING AND VALORIZING WASTE FOR A CIRCULAR ECONOMY

95
The Castres site has been ISO 14001 certified for 20
% years and benefits from a waste management program
that has made it possible to recycle or recover energy
from 95% of industrial waste produced in 2019
(compared with 81% in 2015).
Plastic waste, metal, and solvent portions are recycled, while products with
a high calorific value are reclaimed for energy recovery. We launched an
« Environmental Awareness » training program in 2019 for all site employees.

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LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

V A L O R I Z AT I O N O F B I O M A S S R E S I D U E S
The Montanov™ emulsifiers are 100% of vegetable origin. Biomass residues
from the manufacturing process are recycled in a farm near Castres. They
are blended with pig manure and then fed into a digester to produce biogas
and then electricity. Non-volatile elements are used as natural fertilizer on the
farm. Compared to incineration, this recycling process, launched in 2016, has
reduced emissions by approximately 100 metric tons of CO2 equivalent per year.

In 2019, the Pau site reclaimed 39% of its waste through agricultural
spraying. The green waste, resulting mainly from plant extraction
and the sludge obtained after wastewater treatment, is a rich source
of fertilizer. In 2019 and during the first half of 2020, Serdex quadrupled
its organic waste recovery capacity.

PRODUCTS’ END OF LIFE

Seppic ingredients are used in the composition of products whose end-of-
life must be taken into account from the conception of the ingredients,
particularly with regard to biodegradability and ecotoxicity. The end-of-life
stakes of the ingredients depend on their final use :

In topical markets, particularly in beauty care, and performance

materials (e.g. detergents), the ingredients that make up the end
products can have an impact on aquatic ecosystems.

In oral and injectable pharmaceuticals, food supplements, and veterinary

vaccines, end products are directly administered to the human or animal
body, rendering biodegradability less essential.

Within the framework of regulations within Europe (Registration, Evaluation,

Authorisation and Restriction of Chemicals, REACH) and outside Europe, tests
on biodegradability and ecotoxicity in aquatic environments may be carried out
on products. Laboratory tests enable us to assess the environmental fate
of substances via studies assessing persistence (ultimate biodegradability)
and studies assessing bioaccumulation. Regarding easy biodegradability,
Seppic follows the OECD 301 test guidelines and has been working
on improving the biodegradability of its cosmetic ingredients.

B E T T E R U N D E R S TA N D I N G D E P E N D E N C I E S
A N D O V E R A L L I M PA C T S
In 2020, Seppic joined forces with a new partner to map all its
dependencies and impacts on biodiversity. This project has been scheduled
over the next 18 months.

SEPPIC | 43
 ACTING FOR CLIMATE

The Seppic initiatives are part of the Air Liquide climate strategy. In 2018,
the Air Liquide group set the objective of reducing its carbon intensity by 30%
by 2025, namely, its carbon emissions in relation to EBITDA
for Scopes 1 and 2 of its carbon footprint.

Since 2011, Seppic has been carrying out an annual Carbon Footprint
Assessment according to the ADEME (French environmental and energy
management agency) for all entities in France and around the world
to prioritize initiatives that reduce our carbon footprint.

T H E D I F F E R E N T « S C O P E S » O F A C A R BO N F O OT P R I N T A S S E S S M E N T
Carbon emissions are calculated using Scope 1 (direct emissions), Scope 2
(indirect emissions associated with energy consumption from manufacturing),
and Scope 3 (indirect emissions from sources not controlled by the company,
both upstream and downstream). The carbon footprint assessment is sensitive
to variations in reporting, particularly with respect to acquisitions, divestments
and transfers between Scopes.

S C O P E 1 A N D S C O P E 2 : A S T E A DY R E D U C T I O N I N C A R BO N
EMISSIONS FROM EXISTING SITES
Between 2011 and 2019, while Seppic enjoyed steady operational growth,
its footprint for Scopes 1 and 2 decreased by 16% on a constant basis.
One of the challenges in the coming years will be to reduce our carbon
footprint while integrating our new production site.
In order to reduce its carbon footprint, Seppic has implemented action
plans throughout its sites to improve the energy efficiency of manufacturing,
use renewable energy, raise employee awareness of energy consumption
reduction methods, and better monitoring methods.

SEPPIC | 44
LIVING IN A HEALTHY ENVIRONMENT 02 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

C A R BO N E M I S S I O N S O N S C O P E S 1 A N D 2

Organic
8 000

Organic + acquisition
6 000 (Biotechmomarine, Serdex)
+ Polykon Manufacturing

4 000
TO N S C O 2 E Q

2 000

0
2011 2012 2013 2014 2015 2016 2017 2018 2019

S A M P L E I N I T I AT I V E S R E D U C I N G E N E R G Y C O N S U M P T I O N AT O U R S I T E S
In Castres, installing energy savers on boilers reduced the site’s annual
gas consumption by 7%. In Pontrieux, replacing the cooling unit with a more
efficient system reduced its annual electricity consumption by 14%.

S C O P E 3 : A N I M PA C T O N T H E E N T I R E
PRODUCTION CHAIN

Scope 3 notably includes carbon emissions related to inputs (raw

materials, subcontracting, packaging) and freight (downstream, transport
of goods), with measurement based on emission factors. Emission factors
are multiplying coefficients used to estimate the quantity of greenhouse
gases emitted. They are regularly updated.
In 2019, inputs and freight accounted for at least three-quarters
of Seppic’s carbon emissions. Input emissions can especially be reduced
by internalizing outsourced production or discontinuing certain outdated
products. For freight, the overall optimization of how merchandise flows to
our customers, as well as among Seppic’s entities, is a priority. Specifically,
we can optimize freight and reduce our carbon footprint by favoring means
of transport that emit the least carbon, such as sea and rail.

SEPPIC | 45
 BUILDING LONG-TERM
RELATIONSHIPS WITH
OUR STAKEHOLDERS

CARING FOR OUR STAKEHOLDERS 

Seppic acts locally and globally to create

long-term, trusting relationships with
its stakeholders and foster a collective
commitment to serve local communities
and the environment.

SEPPIC | 46
SEPPIC | 47
 CONDUCTING OUR BUSINESS
WITH THE HIGHEST ETHICAL
STANDARDS

Ethics is an essential value for the entire Air Liquide group,

founded on integrity and transparency.

Seppic’s Code of Conduct, which draws upon the shared principles

of Air Liquide, focuses on ten themes: compliance with laws
and regulations, people, the environment, antitrust and insider trading
regulations, prevention of conflicts of interest, safeguarding Seppic
activities, transparency and information reliability, internal control
and audit, and sanctions. Seppic’s ethics representative ensures
that all possible measures are taken to conduct activities
with the highest ethical standards.

98 % The Code of Conduct is the subject of an e-learning

module annually attended by all employees. In 2019,
our completion rate reached 98%. Employees also
attend annual e-learning modules to promote awareness
of the anti-corruption code and of competition law.
In 2019, the completion rate was 99% for each of these two modules.
If an employee witnesses inappropriate behavior, they must report
it to their manager, Human Resources, or the Air Liquide group Ethics
Delegate, or alternatively, use the external, anonymous Ethicall alert system.

SEPPIC | 48
BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

SEPPIC | 49
 BUILDING RELATIONSHIPS
FOUNDED ON TRUST

Seppic listens to the needs of each actor in the value chain suppliers, customers,
users and acts alongside them to guarantee product quality and allow for the
sustainable development of their respective activities.

A S S I S T I N G E A C H C U S TO M E R TO B U I L D T H E I R F U T U R E

Seppic serves more than 6,000 customers of all
sizes with the highest care, from multinationals
to highly localized players, adapting to each of
their needs. This broad inclusiveness serves
the health and well-being of all.
Proximity to our customers and the assistance
we offer them are key to the value creation
model of Seppic. Seppic is commercially present
in 14 countries, with 20% of its employees
based outside France, and supported by a
network of 80 distributors, with Customer
Technical Services Centers in France, the United
States, Brazil, China, and since 2020 in India.
Seppic offers its customers comprehensive
support in the manufacturing of their products,
transposition and formulation, technical and
regulatory assistance, as well as practical
training in all areas of ingredient application
via the Sepischools. In 2020, Seppic moved
closer to its North American customers with
the opening of the Polykon Manufacturing site
in Virginia.
In 2019, Seppic conducted a satisfaction survey
among its Beauty Care customers. For each
completed questionnaire, a €5 donation was
made to the Belle & Bien association to support
the Look Good Feel Better program, and to the
8,6 /10
Adream Foundation in
China. The response
rate was 12.2%. The
overall satisfaction
score, 8.6/10, has
been rising since the 2016 survey, with
highlights in quality and customer relations. In
order to keep improving, Seppic has introduced
an initiative focusing on customer claims
management and customer communication in
the event of product trouble-shooting. In 2020,
Seppic also launched a new website designed
to improve user experience, with a personalized
interface and improved sample ordering, as well
as new interesting content for online users.
The survey will open to customers in our other
markets in the latter half of 2020.
Seppic responds to its clients’
CSR assessments. For
instance, 50 companies have
access to the details of our
Ecovadis rating. Ranked «Gold»
since 2015, Seppic is in the
top 5% of suppliers with the best ratings on
social and environmental performance criteria.

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BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

SEPPIC | 51
 P R OT E C T I N G T H E I N T E R E S T O F E N D - U S E R S ,
C O N S U M E R S A N D PAT I E N T S

Seppic’s ingredients enter into products used every day by patients

and consumers.
Seppic guarantees that its ingredients are safe, through strict
compliance with industry regulations (cosmetics, dietary supplements,
pharmaceuticals, animal health, detergents, etc.) in France and
in countries of commercialization, sound toxicological files, and through
its quality management system (see site certifications on page 8).
Ingredients may also be subject to chemical regulations, with which
Seppic complies. For example, Seppic complies with the European
REACH regulation (Registration, Evaluation, Authorisation and restriction
of CHemicals) and informs downstream actors of the risks related
to the use of relevant ingredients. To this end, Seppic prepares
and submits dossiers to the European CHemicals Agency (ECHA)
in order to ensure the safe use of ingredients sent to market.
In addition to applicable regulations, labels attesting, for example,
to compliance with naturalness standards (Cosmos, Ecocert, NATRUE)
or religious precepts (halal, kosher) are the focus of particular consumer
attention. Concerned with meeting these expectations, Seppic certifies
a large share of its ingredients. In 2019, 66 ingredients were certified
Cosmos, and 46 were certified NATRUE. 100% of ingredients manufactured
in Pontrieux (BiotechMarine) and 24% of those manufactured in Castres are
certified halal.
Consumers demand an increasing level of transparency on the origin
and geographical traceability of the products they use, in order to
better inform their choices. Seppic has initiated an approach to widen
the scope of available information on the origin of its ingredients. This
requires working with our suppliers to obtain the relevant information
and developing internal information systems.

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 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

E N G A G I N G W I T H A C TO R S I N T H E S U P P LY C H A I N
In accordance with its ethical commitments, and because it is essential
to ensure the sustainability of its supply chains, Seppic asks its suppliers
to respect the criteria set out in its supplier code of conduct. Adherence
with the code of conduct is stipulated in all our raw material purchasing
agreements to which our suppliers commit, as well as in all our orders
and purchase contracts.

THE CODE OF CONDUCT SUPPLIERS COMMIT

With the code of conduct, our suppliers pledge : to respect human, labor, and
social rights, to practice ethical business conduct, to protect the environment,
to protect resources, particularly information and data.

Furthermore, Seppic performs a risk analysis of its critical suppliers in terms

of ethics and responsibility. Suppliers found to have the highest potential for
exposure must undergo an Ecovadis evaluation of their performance. For some,
Seppic implements evaluation questionnaires and CSR audits.

SEPPIC | 53
 CREATING VALUE
LOCALLY

Seppic has teams in 14 countries and works with many external stakeholders,
including suppliers, customers, and distributors. Seppic participates
in the vitalization and development of its territories of operations.

D E V E L O P I N G E M P L OY M E N T A N D E D U C AT I O N
Each Seppic site is integrated into
the local economic fabric within
which it recruits its employees. With
a heritage of more than 75 years in
specialty chemicals, Seppic passes
on its knowledge and passion
to the younger generations and
promotes access to education
and employment. In 2019, Seppic
recruited 73 people on permanent
contracts (CDI) and employed 31
interns, work-study students and
International Corporate Volunteers
(VIE).
In Castres, Seppic annually
hosts about fifty middle and high
school students for observation
courses. In 2017, the site signed
the « Entreprises & Quartiers »
charter that aims at the inclusion
of « priority city neighborhoods ».
Seppic is committed to welcoming
interns and job seekers from the
“priority city neighborhoods”,
visiting schools to showcase its
careers, circulating its job offers,
and reviewing applications sent
in by «Pôle Emploi» and the local
employment agencies.
In China, Seppic supports the
Adream Foundation, whose mission
is to reduce inequalities linked to
education. Twice a year, Seppic
organizes sessions for school children
to discover the basics of polymer
chemistry and the applications of
polymers in beauty care.

T H E A I R L I Q U I D E F O U N DAT I O N A N D P R O F E S S I O N A L I N T E G R AT I O N
The Air Liquide Foundation supports medical research into respiratory
diseases and environmental research on air composition. It also contributes
to community development through local initiatives and its initiatives favoring
professional integration in technical fields. These professional integration
projects assist people who are distanced from the workforce worldwide :
NEETs («Not in Education, Employment, or Training»), people with disabilities,
and women in technical professions.

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 BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

ACTING IN OUR VALUE CHAIN COMMUNITIES

Beyond employment and education, Seppic contributes to the local
community through supply. The Pontrieux site (BiotechMarine), located near
the Bréhat Archipelago, France, favors suppliers of Breton algae that comply
with sustainable development standards. The Serdex site in Pau, France,
uses mainly plants harvested in Madagascar and has been involved since
2003 in initiatives to improve the living conditions of the communities
where the harvesters live.

S E R D E X : C O L L E C T I V E LY C O M M I T T I N G
TO S E R V I N G C O M M U N I T I E S

Serdex is committed to supporting communities in Madagascar, with the help

of its customers. In 2019, the Air Liquide Foundation also sponsored a school
project in Ambodiriana. Serdex’s ongoing commitment from 2003 to 2019 has
resulted in numerous achievements :

100  classrooms
and libraries built
2 000 students
benefiting from nutritional
1 000 customized
endowments awarded to
programs pickers

Serdex has been a long-time advocate of local suppliers increasing

their technical skills. In 2019, Seppic donated laboratory equipment to
expand the expertise of a supplier and the University of Madagascar, and
undertook shipping donations exceeding one ton in the form of textbooks
and medical equipment to picker communities.

SEPPIC | 55
 E N G A G I N G E M P L OY E E S
Seppic’s employees seek involvement with non-profit organizations
to help the most vulnerable.

In France : Since 2014, employees to the association Paul Béarn

have had the option to make a
monthly micro-donation. They may
dedicate between 1 and €5 from
their salary to six associations, a
donation that is matched twofold
by Seppic. In 2019, 100 employees
made micro-donations. The Pontrieux
site has donated old computers to
elementary school, given barrels
Handisport to participate in the
«Bouchons de l’Espoir» project, and
participated in the «Rose espoir»
race fighting breast cancer. The
Garenne-Colombes site took part
in the Solidarity Run organized by
Special Olympics, which supports
sports activities for the mentally
handicapped.

In United States : In 2019, Seppic Society. On World Environment Day

collected school supplies for Jersey focusing on air pollution, employees
Cares and participated in an event ran or walked to raise funds for the
organized by the American Cancer Environmental Defense Fund.

In Germany : Since 2016, In Brazil : Seppic financially supports

Seppic has been supporting a local organization that helps those
the organization «Bunter Kreis» in need in the streets of Sao Paulo.
which provides activities for
children whose siblings are
seriously ill. In 2019, our
site sponsored a day of such
activities near Cologne.

During the Covid-19 health crisis in the first half of 2020 :

All of Seppic French sites mobilized to donate disposable equipment (disposable
gowns, surgical caps, gloves) to hospitals and caregivers. A fundraising campaign
within the «All mobilized against Covid-19» campaign was implemented to support
the Secours Populaire and the Fondation de France. In the United States, the
« Polymers with a Big Heart » campaign raised funds for Direct Relief, which
provides protective equipment to healthcare organizations and professionals.

SEPPIC | 56
BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 03

SEPPIC | 57
 PERFORMANCE
INDICATORS

The results of the company’s actions

in terms of corporate social responsibility
are measured by extra-financial performance
indicators established at the Seppic level
of ratings and at the Air Liquide group
levels. Seppic is presently working on
the consolidation of its indicators in order
to establish new medium-term objectives.

SEPPIC | 58
SEPPIC | 59
 A TEAM OF PASSIONATE PEOPLE 2017 2018 2019

Total workforce as of Dec. 31 718 741 774

Workforce based in France as of Dec. 31 585 595 615

EMPLOYMENT Permanent contract hirings 52 74 73

Turnover rate based on resignations 2,9% 4,0% 3,0%

Number of trainees, work-study students and VIEs 31 36 31

Number of work-related accidents with work interruption 3 4 4

HEALTH IN THE WORKPLACE Rate of absenteeism 4,6% 5,4%1 6,9%1

Average number of training hours per employee per year 28 26 232

Percentage of employees who have had a performance

76% 66% 75%
review meeting with their manager
ASSOCIATES’ PROFESSIONAL
DEVELOPMENT
Percentage of employees who have had a career 23% 14% 16%
development meeting with the HR Department

WORK-LIFE BALANCE Number of employees benefiting from a teleworking contract 0 102 153

Share of employees based outside France 18% 20% 21%

Percentage of women in the total workforce 45% 46% 45%

Percentage of women in management 57% 59% 58%

DIVERSITY AND EQUAL OPPORTUNITY
Hiring of young graduates 5 4 5

Number of employees recognized as disabled workers 11 17 22

Number of nationalities in the workforce 28 26 25

LIVING IN A HEALTHY ENVIRONMENT 2017 2018 2019

Tons of CO2 eq. emitted on scope 1 and 2

CLIMATE for Seppic as a whole 6 392 6 093 7 270
[excluding Polykon Manufacturing] [5 972]

Share of raw materials from plant origin _3 59%2 55% 2

RSPO Book & Claim Certified Palm Derived Input _3 3,0% 3,5%
Rates in palm equivalent

RSPO Mass Balance Certified Palm Derived Input

BIODIVERSITY _3 64,1% 70,5%
Rates in palm equivalent

Wastewater from our manufacturing sites in m3 145 090 156 646 151 344

Waste from our manufacturing sites, recycled or not,

in metric tons 2 120 2 278
[Integration of cardboard, plastic, iron and empty packaging] 2 080 [2 825] [2 830]

BUILDING LONG-TERM RELATIONSHIPS WITH OUR STAKEHOLDERS 2017 2018 2019

AUDITS Ecovadis grade Gold Gold Gold

Partially
SUPPLY CHAINS SPI score for sustainable palm Compliant Compliant Compliant

ETHICS Code of Conduct training completion rate _3 85% 98%

SEPPIC | 60
 S E P P I C A N D A I R L I Q U I D E R AT I N G S
F R O M I N D E P E N D E N T O R G A N I Z AT I O N S

AIR LIQUIDE GROUP SEPPIC

CDP climate A Ecovadis Gold (since 2015)

CDP water A SPI4 compliant
MSCI A UEBT audited (Serdex)5
Ecovadis Gold
Sustainalytics Low risk
ISS climate C+

NOTES
1
Increased paternity, parental and long-term sick leave.
2
The basis for calculating the indicator gradually expanded : 82% of the input volume of French sites (Castres, Serdex,
BiotechMarine) in 2018; 85% of the same scope in 2019.
3
Data not monitored in 2017.
4
Sustainable Palm Index, as per the methodology proposed by ASD (Action for Sustainable Derivatives).
5
95% of UEBT membership obligations met during the last membership audit in 2017 (Serdex).

SEPPIC | 61
SEPPIC | 62
Photo Credits
©StudioLM
©Laurent Pascal
©Fabrice Picard
©iStock
©Darios44 / Getty Images
©Jose A. Bernat Bacete / Getty Images
©Abstract Aerial Art / Getty Images
©Peeter Viisimaa / Getty Images
©Christophe Rusak / Getty Images

SEPPIC | 63
SEPPIC S.A.
PARIS LA DÉFENSE
50 boulevard National - CS 90020
92257 La Garenne Colombes Cedex, France
info.seppic@airliquide.com
+33(0)1 42 91 40 00

seppic.com

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