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Investor Presentaiton

Can we decarbonate construction as rapidly as is necessary? CONVERSATION WITH Roland Hunziker Director, Built Environment & Member of the Extended Leadership Group WBCSD (World Business Council for Sustainable Development) What are the main conditions to contribute to the carbon neutrality of construction in 2050? What are the main obstacles? We already have an entire range of solutions ready, which make it possible, beyond any doubt, to reach half of our objectives by 2030. We therefore have no technological excuses at this time. The real topic to be addressed is collaboration among stakeholders across the entire value chain. This means, firstly, improving the coordination of efforts; we can highlight the need to generalize the calculation of emissions over the entire building cycle and to involve architects, designers, developers and funders. This also concerns fine-tuning long-term value sharing among the various players, notably by facilitating higher investments during design and construction and by spreading these additional costs over the entire life cycle. It is also necessary to take into account the existing building stock from a holistic perspective, in order to be able to control the variability of the cost of decarbonization from one building to another. In order to contribute to carbon neutrality by 2050, we will need even more technological innovation and greater investments, notably in materials (steel and cement, for example) and in the energies used. It is also necessary to make rapid progress on the circularity front, in order to arrive at an intelligent model that makes it possible to systematically choose the best solution. In the case of the transformation of a building, this applies, for example, to the choice between the reuse of existing structures or their dismantling and recycling. There is still a lot of innovation to be made in terms of business models and the distribution of value created. Regulation also plays a role that is already very significant, but which remains partial. In addition to coercion (prohibitions, limitations, punitive taxation), other levers must therefore be used. The development of reporting for developers and financiers is one of them. Beyond that, all players in the value chain must be held accountable. What is the impact of rising energy costs? Paradoxically, there is a positive effect of this trend, which strengthens awareness of the climate issues at stake and which encourages a reduction in consumption, but also investment in renovation in order to achieve greater long-term profitability. In return, this requires efforts to help the categories of the population made the most vulnerable by this change. What are the main levers to act at the scale of a city in order to achieve a specific objective of decarbonization? We have a real issue concerning the variability of regulatory requirements from one region to another; some boroughs of London, for example, require assessments to be carried out over the entire life cycle of a building. Increasingly stringent requirements are likely to come, notably in terms of binding performance targets. To think about decarbonization at the scale of a city, it is also necessary to take a step back and reflect on urban planning, also taking into account transport and food in the evolution of existing models. It is a question of being pragmatic and taking into account the systemic dimension of a regional community. Also read the article available on the WBCSD website: https://www.wbcsd.org/Overview/News-Insights/WBCSD- insights/If-we-act-today-we-can-halve-the-emissions-of-the- built-environment-by-2030 50 SAINT-GOBAIN 2022/2023 INTEGRATED ANNUAL REPORT
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