Universal Registration Document 2024

4.1.4 Integration of sustainability issues into compensation

Since 2020, Publicis Groupe has included sustainability issues in the variable portion of executive compensation (annual variable and long-term variable), a compensation structure submitted each year to a shareholder vote. These elements are explained in Section 3.2. [ESRS 2 GOV-3-29 (a) to (e)] Two CSR criteria were used:

• in social matters, 45% women on the main Executive Committees in the Groupe (Groupe Executive Committee, Management Committee, Executive Committees of the main countries and brands) in 2025, with an annual checkpoint of 44% in 2024. The choice of this criterion was motivated by the need to advance gender equality, particularly at the highest levels of responsibility in the Groupe and its main subsidiaries. The 2024 target has been achieved and exceeded, with 45.8%;
• in terms of the environment, switch to 100% direct renewable energy by 2030, with an annual checkpoint of 65% in 2024. The choice of this criterion was motivated by the need to use only renewable energy sources for all offices worldwide, the purchase of certificates of origin (RECs or similar) being a transitional measure. The 2024 target has been achieved, with 75%. [ESRS 2 GOV-3-29 (b) & (c)]

4.1.5 ESG risk management and mapping

Historically, ESG risks have been included in the Groupe’s major risk map (Chapter 2 of this document), in particular risks relating to Talent and social issues, but also risks related to ethics, personal data and data security. These risks are also analyzed and monitored as part of the application of the French law on the Duty of Care (see Section 4.6). Specific topics were explored in depth as part of the ESG Committee’s work before the change in governance, and since then by the Strategic, Environment and Social Committee. The same applies to the monitoring of the Company’s three main ESG priorities and related actions.

The entry into force of the CSRD was an opportunity for in- depth work, carried out in 2023, on the mapping of ESG risks. The objective is to establish a common base with the double materiality exercise, and to have consistency in the approach to and definition of the issues. The methodology used for its development is consistent with that used for other mapping exercises (see Section 2 of this document). The common foundation is based on the identification of twenty key CSR issues for Publicis Groupe, resulting from a sectoral, documentary and regulatory analysis, supplemented by qualitative interviews with key contacts in the Groupe’s various functions and regions. The mapping process has identified 15 risks, some of which are from the Groupe’s major risk mapping. No risk appeared to be very high and certain. [ESRS 2 GOV 5-36 (a) to (c)] Nevertheless, five CSR/ESG risks were analyzed in depth:

• challenges in the management and protection of personal data (Chapter 2 and Section 4.3.12.7);
• data security breach (Chapter 2 and Section 4.2.3);
• deterioration in the well-being and working conditions of talent (Chapter 2 and Section 4.3.12.8);
• growing challenges on social equity issues (Chapter 2 and Section 4.3.4);
• climate change challenges for advertising activities (see Section 4.2.2).

The results of this work on ESG risk mapping were presented to the Supervisory Board’s Audit Committee and ESG Committee in September 2023.

From 2022, in anticipation of the CSRD and ESRS coming into force, an ad hoc study on climate-related risks was carried out with the Risk Management team with the help of an external firm. The objective was to have a more precise analysis of physical risks, depending on the location of offices and data centers in urban areas, and transition risks. Based on the work of the IPCC, two scenarios were selected: RCP 2.8 (stabilization at 1.5 °C), and RCP 8.5 (4 °C scenario).

This work was shared with the ESG Committee in 2023 and taken into account for the completion of the ESG risk mapping in 2023, reviewed by the ESG Committee and Audit Committee in September 2023. These elements were also considered to carry out the work for the Duty of Care risk mapping in 2024, presented to the Strategic, Environment and Social Committee in September 2024.[ESRS 2 GOV-5-36 (d)]