LISI GROUP - Integrated report 2023

33 2 0 2 3 I N T E G R A T E D R E P O R T STRATEGY Procurement Low carbon steel: agreement between LISI AUTOMOTIVE and ArcelorMittal Compliance New supplier policy kicked off The supplier policy formalizes LISI’s expectations from its suppliers and service providers. It defines the rules of business ethics which govern the rules of work in common. An essential tool for establishing strong and lasting partnership relationships, the policy was updated in December 2023 in order to be adjusted to the new regulatory framework and to strengthen some of its requirements (CSR, certifications, anti- corruption rules, protection of information). The new policy, which incorporates the Group’s new requirements, will soon be disclosed to all suppliers. CO 2 emissions linked to Scope 3 (products or services purchased by LISI) accounted for 67% of LISI’s carbon footprint in 2023. They therefore constitute a major challenge for the Group. As part of the plan to reduce its carbon impact, LISI asks its suppliers of goods and services to commit to reducing their carbon footprint. By working with their raw material suppliers to move towards manufacturing processes that emit less CO 2 , the Purchasing departments collaborate fully in this effort, as illustrated by the signing of an agreement between LISI AUTOMOTIVE and ArcelorMittal. This major strategic agreement entered into in 2023 provides for the joint development of steel that emits less greenhouse gases – called XCarb ® steel – suitable for transformation by cold forming and compliant with the requirements of the automotive market (specifications, cost, availability, etc.). 100% renewable electricity This low-carbon steel, produced from recycled and renewable sources – it uses 100% renewable electricity – allows the ArcelorMittal plants in Hamburg and Warsaw to manufacture wire rods with less than 700 kg of CO 2 per ton of steel. This process reduces CO 2 emissions by 70% compared to traditional methods. The impact for LISI is considerable since it will generate a 45% reduction in LISI AUTOMOTIVE’s carbon emissions linked to the purchase of rawmaterials from ArcelorMittal and a gross reduction which could reach 10,000 tons of CO 2 by 2030. LISI AUTOMOTIVE plans to qualify this new steel on its own products and is developing the initial applications with its German customers. ArcelorMittal will reserve sufficient volumes for LISI AUTOMOTIVE to meet its future demands for green steel. Other initiatives are currently being reviewed at the Purchasing level regarding the optimization and reduction of CO 2  emissions linked to the transport of goods. “By allowing us to combine sustainability and performance, this partnership is a new step for the automotive industry. We are determined to push the boundaries of innovation to create solutions that benefit the planet and future generations.” –François Liotard LISI AUTOMOTIVE CEO Profit