2017

CSRCORPORATE SOCIAL RESPONSABILITY

SAFRAN IS AN INTERNATIONAL

HIGH-TECHNOLOGY GROUPI t i s a T ie r-1 suppl ie r of systems and equ ipment for aerospace

and defense , operates wor ldwide , employs near ly 58 ,000 people

and generated €15 . 8 b i l l ion in revenue in 2016 . I t s g loba l p resence

enhances i t s compet i t iveness , and enab les i t to bu i ld indust r ia l

and bus iness re lat ions wi th the wor ld ’s lead ing pr ime contrac tors

and operators , wh i le prov id ing fas t loca l se r v ice to customers

a round the wor ld . Work ing a lone or in par tnersh ip , Saf ran ho lds

wor ld or European leadersh ip pos i t ions in i t s core markets .

SPACE

DEFENSE

AVIATION

Photo credits: p. 3: Cyril Abad / CAPA Pictures / Safran, Alexandre Paringaux / Safran, CNES / ESA / Arianespace - p. 4 : Franck Juery / CAPA Pictures / Safran - p. 7 : Cyril Abad / CAPA Pictures / Safran - p. 8 : Eric Vernazobres / Safran - p. 10 : Adrien Daste / Safran - p. 11 : Cyril Abad / CAPA Pictures / Safran - p. 12: Adrien Daste / Safran - p. 13 : Adrien Daste / Safran - p. 15 : Adrien Daste / Safran - p. 16 : Cyril Abad / CAPA Pictures / Safran - p. 17: Cyril Abad / CAPA Pictures / Safran.

4 5

Asaglobal industrialgroup

andleaderinaerospaceanddefense,

Safran is keenly aware of its social

and environmental responsibil ities .

Meetingtheseresponsibilitiesisanon-

negotiable priority for me, and for

everybodyinourGroup.

Safranemployeesaroundtheworldhave

anunyieldingcommitmenttodeliverthe

bestproducts forourcustomersand

meet themostdemandingstandards

intermsoftradecompliance,relations

with our customers , suppliers and

subcontractors,andworkingconditions.

Our people can count on best- in-

classoccupationalhealthandsafety

standards,plusabroadrangeoftraining

programs. They also enjoy multiple

opportunitiestoadvancetheircareers

inacompanyinwhichmanyofthem

areshareholders.Becausewebelieve

We also recognize that progress in

socialandenvironmentalresponsibility

is not something we can achieve

alone.Coordinationamongcountries,

internationalorganizations,multinational

companiesandassociationsisessential

toguaranteesafeandhealthyworking

conditionsforemployeesoverthelong

haul and to effectively manage the

environmental impact of businesses

on a global scale . This is why ourPHILIPPE PETITCOLINDIRECTEUR GÉNÉRAL DE SAFRAN

PHILIPPE PETITCOLINChief Executive Officer of Safran

THE 6PRINCIPLES THAT SHAPE

THE GROUP’S CSR STRATEGY

Develop pioneering products and processes while reducing their environmental impacts.

Constantly strive for excellence in security and in the protection of people and property.

Develop human potential.

Involve our suppliers and partners.

Establish integrity in the Group’s culture for the long term.

Build outstanding relations with stakeholders.

thatsharingknowledge–apillarofour

CSRpolicy–isessentialtoautonomy,

we also actively pursue corporate

philanthropy initiatives insupportof

education,inclusionandculture.

Asyoureadthisbrochureyouwillsee

that we deploy a network of highly

tra ined professionals and that we

haveestablishedrobustproceduresto

preventtheslightestdivergencefrom

our exacting ethical standards. We

haveazerotolerancepolicytowards

any infractions and our vigilance is

never-ending.

OurCSRpolicy isstructuredaround

sixclearstrategicpriorities.Thispolicy

hasbeenrecognizedasexemplaryby

observerssuchasVigeo,aprominent

ESGratingsagency,whichranksSafran

amongthetop-performingEuropean

companiesinthisregard.

commitmentsincludetheUnitedNations

GlobalCompact,whichaimstoengage

allglobalstakeholders.

Youcancountonmeandoneverybody

atSafrantoensurethatourtechnological

and business performance is always

alignedwiththevaluesthatuniteus.

SAFRAN CREATES VALUE WITH

ITS STAKEHOLDERS(Figures as at December 31, 2016, unless otherwise stated)

BUSINESS PARTNERSCUSTOMERS€15.8 billion in revenue,o/walmost80%inexportmarkets.

High-techsolutionsmeetingtherequirementsofawidevarietyofcustomersincludingcivilianandmilitaryaircraftandhelicoptermanufacturers,airlines,spaceagencies(1),armedforces(air,seaandland),andpoliceforces.

Customer satisfactionistheGroup’soverarchinggoal.Itlistensto,anticipatesandmeetstheirrequirements.

Safran’sworldwideoperationbringsitscustomersfastlocalserviceandstate-of-the-artexpertise.

SHAREHOLDERS (Institutional investors, individual shareholders and employee shareholders)

EquitystructureasatApril30,2017:free-float(76.5%),Frenchgovernment(14%),employees(7.9%),treasuryshares(1.6%).

A€1.52dividendpershare(subjecttoshareholderapprovalattheAnnualGeneralMeeting).

RegulardiscussionswithportfoliomanagersandfinancialanalystsinFranceandaroundtheworld.

Otheropportunitiestomeetindividualshareholdersincludebriefingsandplantvisits.

SUPPLIERS, SUBCONTRACTORS AND PARTNERSPurchase volume: €10 billionin2016.

Webuildlong-termpartnershipsbasedonmutualrequirementsandstrivetoimproveperformancetogether.

50%ofpurchasesinFrance,o/w60%fromsmallandmedium-sizedbusinesses.

AS WELL AS: insurancecompanies,tradeorganizations(Gifas,UIMM,OACI)andprofessionalsinthesector.

OBSERVERS FINANCIAL ANALYSTSMorethan20financialanalystfirmsmonitorSafran’sshare.

NON-FINANCIAL RATING AGENCIESSafransharesspecificinformationandCSRachievementswithnon-financialratingagencies.

STAKEHOLDERSIN THE GROUP

EMPLOYEESNearly 58,000 employees worldwide.Over7,000peoplehiredin2016.

36%ofthemwomen.

Over 60% of Safran employees own shares in the Group.

EMPLOYEE REPRESENTATIVESLabor-managementdialogueinFranceledtofourgroupwideagreementsin2016,ontotalcompensationandbenefits,profitsharingwithemployees,Grouppensionplans,andintergenerationalmentoringschemes.

SafranalsobegantalksonaworldwideCSRframeworkagreement,focusingspecificallyonwell-beingatwork,in2016.Talksonrenewingthegroupwideagreementonyouthprofessionalintegration,atEuropeanlevel,shouldbecompletedin2017.

PUBLIC-SECTOR PARTNERS

SCHOOLS, UNIVERSITIES AND LABSTheGrouphasbuiltactiveR&TpartnershipswiththeCNRS(FrenchNationalCenterforScientificResearch),theCEA(AlternativeEnergiesandAtomicEnergyCommission)andOnera(nationalaerospaceresearchcenter).Itisalsoastakeholderinseveralresearchandtechnologyinstitutes,andinnumerousinternationaluniversitylabs.

Over 300 Group employees serve as ambassadorsrepresentingSafranintheirformeruniversitiesorschools,andworkedonover200projectswiththemin2016.

GOVERNMENTS, COMMUNITIES AND LOCAL PARTNERS€704 million industrial capexin2016.

Safranfuelseconomiesintheareashostingitsoperations,alongsidelocaltrainingandemploymentorganizations.

CIVIL SOCIETYNON-PROFITSSafranhassponsoredmorethan550projects,directlyandviaitscorporatefoundations,sinceitsinception.

MEDIASafranisincontactwithanddevelopinganetworkofjournalistsaroundtheworld..

Forthepastseveralyears,theGroupanditssubsidiarieshavealsobeeninteractingwiththeircommunitiesdirectlyonsocialnetworks(Twitter,Facebook,LinkedIn,Viadeo,YouTube,etc.).

AND ALSO: neighborsandNGOs.

(1) In partnership with Airbus via Ariane Group.

6 7

(1) International Forum on Business Ethical Conduct for the Aerospace and Defense Industry.(2) Business and Industry Advisory Committee to the OECD.

(3) The World Economic Forum’s Partnering Against Corruption Initiative .(4) The French aerospace industry trade association.

(5) AeroSpace and Defence Industries Association of Europe.

ETHICS AND INTEGRITY

Honesty and integrity are at the core of Safran’s strategy, and two values that all its employees share. They are one of the pillars upholding

performance as well as harmonious, sustainable growth. They have earned and will continue to earn the trust that the Group’s customers, employees,

shareholders, suppliers and partners place in it.

8 9

Safraniscommittedtoabiding

by thehighestethicaland

professional standards in

itseverydaybusiness.The

principlesitappliestofight

corruptionareenshrinedinits

EthicalGuidelines,Responsible

LobbyingCharterandTrade

Compliance program. All

thesedocumentsmirrorthe

varietyoflegalandregulatory

frameworksinSafran’shost

countries, thefull rangeof

organizations,productsand

marketsitdealswith,andbest

practices.

A network of 149 Trade

ComplianceOfficersanda

suiteoftrainingprogramsare

availabletoensureallGroup

companiesstrictlyapplythese

requirements.In-houseand

externalreviewsandaudits

ensureproceduresarefully

andproperlyapplied.

TRADE COMPLIANCE: UNCOMPROMISING STANDARDS

Safran is also involved in

several industry-specific

andinternational initiatives

to fight corruption. The

Group isamemberof the

IFBEC(1)strategycommittee,

vice-chair of the BIAC(2)

aethics/anticorruptiontask

force, vice-chair of the

B20ResponsibleBusiness

Conduct&Anti-Corruption

taskforce,andpartneronthe

SafeguardingAviation&Travel

ValueChainsprojectatPACI(3).

Itchairstheinternationalethics

committee at the French

businessfederation,and is

activeontaskforcesatGifas(4),

theASD(5),theInternational

Chamber of Commerce

andtheCercleÉthiquedes

Affaires.

1st company

in the CAC 40 index to earn « anticorruption »certification from ADIT(The French Agency

for the Dissemination of

Technology Information)

10 11

Over

6,450employees

trained in the Safran compliance

program worldwide in 2016

It has trained over

18,000employees

in export control since 2010

TheGroupalsohelpsyoung

peoplesecureemployment,

andaplace in society,by

takinginalargenumberof

apprentices, trainees and

researchstudentsyearafter

year.Itisdoingthisaround

theworld,inparticularunder

theEuropeanagreementon

theprofessionalintegration

of youngpeople,which it

signedin2013,andthrough

avarietyofotherinitiatives

i n c l u d i n g t h e s h a r e d

apprenticeshippath,which

theGrouphasbeenrolling

out for severalyearsnow.

Intotal,Europewide,almost

5,500 youths joined the

Group on work-training

schemesin2016,andonein

sixemployeeswasinvolvedin

tutoringthem.

SAFRAN UNIVERSITY

A TRAINING AND DEVELOPMENT

TOOL FOR EVERYONE

Safran University operates a campus in Massy, near Paris, and training facilities in Dallas and Beijing.

It also on-lines a variety of e-learning modules, MOOCs and SPOC(1)

to train people around the world.

HUMAN RESOURCES

RECRUITING AND DEVELOPING TALENTS

Safranispreparingthefuture

andcreatingsustainablejobs

byattractingthebesttalent

ateverylevelontheexpertise

scale,investingsubstantially

inintegratingitsnewtalent,

andprovidingexcitingcareer

prospects. In2016, ithired

7,000 people, including

eng ineers , execut ives ,

techniciansandoperators.

They all share a passion

for the Group’s fields of

expertiseandareenthusiastic

aboutworkinginahigh-tech

environment.

In the high-tech business, innovation today is the key to success tomorrow. Talents, it follows, are central. That is why human potential development is one of Safran’s top priorities. The Group’s people are its single most valuable asset. They acquire skills and expertise throughout their careers, which include ample opportunities for mobility and professional growth. Working at Safran is also an opportunity to thrive in its innovation-centered culture and enjoy unique and enriching experiences day after day.

Asitgeneratesabout80%of

itsrevenueoutsideFrance,

Safranisrequiredtocomply

withawiderangeofimport

andexportregulations,andto

strictlyobservesanctionsand

embargosinforce.

TheGroupanditssubsidiaries

have been rolling out an

ef f ic ient and ef fect ive

m e ch a n i sm to e n su re

regulatorycompliancesince

2005, through a network

of471employeesworking

full-timeonthisfront.Safran

conductsauditsonaregular

basistoensureitcomplies

withallapplicableregulations

and honors its executive

management’scommitments.

The Group’s standards

provideasolidadvantage

for its companies when

theyapplyforDGA(French

defenseprocurementagency)

certification, followingthe

transpositionoftheEuropean

directiveonintra-EUtransfers

ofdefense-relatedproducts,

and the implementation

ofFrenchcontrolsonwar

supplies outside the EU.

Safranisalsoactivelyinvolved

inworkinggroupsatGifas,the

ASD(5)andBusinessEurope,

involvingallthestakeholders

inthisfield.

FollowingtheEUCustoms

Code’sentryintoforce,Safran

setupamechanismdesigned

totightencompliancewith

customslegislation,whichin

particularinvolvedopeninga

Groupcustomsdepartment

in2016.

EXPORT CONTROL

AND CUSTOMS: REGULATORY COMPLIANCE

(1) Small Private Online Courses.

12 13

More than

60%of Safran’s employees are shareholders

1.6million hours of trainingprovided in 2016

EMBRACING DIVERSITY IN ALL ITS WEALTH

Safran is a responsible

emp loye r that fos te rs

diversity,whichitseesasa

levertoboostperformance

andspurinnovation,andis

activelycommittedtoequal

opportunities.Itsinitiatives

inparticularspanyouthand

senior-citizenemployment,

integrating people from

disadvantagedbackgrounds,

promotinggenderequality,

fostering cross-cultural

teams, and hiring people

with disabilities and then

keepingtheminjobs.Safran

isalsocommittedtoequal

opportunities around the

world, inkeepingwiththe

non-discriminationprinciples

upheldbytheInternational

Labour Organization and

Un ited Nat ions G loba l

Compact.

A SOLID EMPLOYEE- RELATIONS MODEL

Safran’semployee-relations

model isrooted in its firm

belief that its talents are

its single most valuable

asset.Itshigh-qualitylabor-

managementdialogue,active

employee shareholding

policy(includingbonuses),

and prof it-shar ing and

employee-savingsschemes,

areafewexamplesofthe

Group’seffortstoencourage

itsemployeestoembraceits

strategyand to share the

benefits with them. Talks

onthefirstworldwideCSR

framework agreement on

well-beingatworkbegan

in2016,andshowthatthe

Groupisencouragingallits

companiestohonorthesame

commitmentswhereverthey

operate.

EMPOWERING ALL EMPLOYEESTO BUILD THEIR CAREERS

TheGroupseesoperational

excellenceandpermanent

ef for t s to enhance i t s

employees’ skills as two

key levers toenhance its

competitiveness. Safran

Un ive rs i t y ’s ambit ious

trainingpolicy is focused

onboththoselevers,and

designedtobuildexpertise

andsharpenleadershipand

managementproficiency,

withaviewtotailoringthe

Group’sskillsinsynchwith

shiftsintechnology.Safran

alsoprovidesitsemployees

w i th o p p o r tu n i t i e s to

experience geographical

andinter-activitiesmobility,

enablingthemtobecome

increasingly polyvalent,

sharpen their skil ls and

managetheircareersmore

actively.

Over

39,000employees

have joined Safran since 2011

40%of vacancies

filled through internal

mobility

14 15

EXCEEDING STANDARDS

The Group has produced

itsownstringent in-house

standards,layingdownthe

rulesthateverysitearound

the world is required to

follow, in order to apply

thispolicy.Its28standards

encompasstheinternational

benchmarks–ISO14001and

OHSAS18001–aswellas

Safran-specificrequirements.

REACHA TOP

PRIORITY

Safran is assessing options to replace

the toxic substances and materials it uses in its products’ life cycles, ahead of

REACH regulation.

HEALTH, SAFETY AT WORK

AND ENVIRONMENT

ANTICIPATING AND PROTECTING,DAY AFTER DAY

Safran’sresponsiblehealth,

wo rk p la ce s a fe t y a n d

environmental(HSE)policy

stemsfromitsvaluesand

ensuresall its employees

enjoyworkingconditions

thatfostertheirwell-being.

The Group’s continuous

d r i v e to u p g r a d e i t s

performancestemsfromits

culture,whichfocuseson

anticipationandprevention,

and is sponsored by top

management. Thispolicy

i s o r g a n i z e d a r o u n d

unwaveringcommitments

to p rote c t eve r yo n e ’s

health,keepeveryonesafe,

protectfacilitiesandtheir

surroundings, and factor

HSE requirements into

products’fulllifecycles.

TheGroupforexamplealso

eco-designs itsproducts,

with a view to reducing

its engines’ consumption

andemissions,usingfewer

productsthatharmhuman

healthandtheenvironment

initsproductionsites,and

thenfacilitatingrecycling.

Saf ran is concurrent ly

introducing cobot-based

so lut ions that improve

h e a l t h a n d i n c r e a s e

performance, under the

Ergonomicsprogram it is

rollingoutGroupwide.

Each site is audited to

obtainacertificationlabel

associatedwithitsmaturity

level.Almost100siteshave

beencertified(35bronze,56

silver,5gold).

Safran has divided

its LTOAFR(1)

by 3 in 6 years

(1) Lost time occupational accident frequency rate.

PATRONAGE AND FOUNDATIONSSUPPLIER RELATIONS

16 17

Safran has sponsored more than

550projects since 2005

The Group is aware that

its suppliers contribute

t o i t s s u c c e s s , a n d

workswiththemtobuild

long-term , trust-based

relationships focusedon

mutualrequirementsand

improving per formance

t o g e t h e r . S a f r a n ’ s

p u r c h a s i n g p o l i c y

suppor ts the i r growth ,

helps them builds their

sk i l l s and fosters the i r

abi l ity to innovate. The

Group applies the same

requi rements to a l l i t s

suppliers , and provides

targeted support for its

high-potential suppliers.

S a f r a n h a s a l s o b u i l t

close tieswith sheltered

workshops.

P a t r o n a g e i n i t i a t i v e s

in France and al l other

countries hosting Group

o p e r a t io n s co nt r ib u te

to S a f r a n ’s co r p o r a te

citizenshipandconveyits

values.Theprojects that

Safran supports through

non-profitsandworkson

withitsemployeescovera

varietyofareasincluding

e d u c at i o n , s o c i a l a n d

professional integration,

equalopportunities, and

nurturing creativity and

talent.

The Group’s patronage

p o l i c y i s ro o te d i n a

three-pronged approach

encompassingeducation,

societyandculture.Safran’s

f inancial support for its

public- or private-sector

partnersisentirelyunrelated

AsaPactePMEmember,

Safranisinteraliaworking

o n a n “ i n n e r - c i r c l e ”

initiativetobuildespecially

close relationships with

par tner manufacturers

thatarewillingtocommit

to long-te rm strateg ic

p ro jec t s rang ing f rom

R&T to production . The

Grouphasalsointroduced

a respons ib le supp l ie r

re l a t i o n s ce r t i f i c a t i o n

p ro ce s s fo r a l l G ro u p

c o m p a n i e s , a n d w i l l

completecertification in

2017.

to its business interests.

Ethicsandintegrityarethe

twocardinalvaluesshaping

itspatronagepolicy.

Through i t s corporate

fo u n d at io n p ro m ot in g

i n t e g r a t i o n , S a f r a n

i s h e l p i n g t e e n a g e r s

and young adults with

disabilities to overcome

exclusion.Andthroughits

corporate fondation for

music,itsupportstalented

youngclassicalmusicians

tothrive.

NEARLY 58,000 EMPLOYEES WORLDWIDE

CSR INDICATORS

18 19

EVOLUTION OF THE LTOAFR* since2012

20142012 2015 20162013

3.5

3.7

2.8

2.7

2.2

The LTOAFR* has dropped 55% worldwide in 5 years

* Lost time occupational accident frequency rate.** Adjusted revenue.

EMPLOYEES BY BUSINESS

76,3%

Flottant

0,5%

AutodétentionAutocontrôle

9,2%

Salariés

14%

Étatfrançais

20162015

2 2812 404

+5,4%

20162015

5962

+5%

20162015

15 536 15 781

+1,6%

2 255Holding

et autres

7 356Défense

24 721Équipementaéronautique

23 210Propulsion

Aéronautique

4%

Holding co.and other

13%

Defense

43%

AircraftEquipment

40%

AerospacePropulsion

Women accountfor almost

27%of the workforce

2016 annual results**

¤15.781 billion

Europe

74 %

Africa / Middle-East

2,9005%

Asia / Oceania

2,5004.3%

Americas

42,800

9,70016.7 %

GO TO THE SAFRAN WEBSITE FOR MORE INFO https://www.safran-group.com/commitments-0

Safran

2, boulevard du Général-Martial-Valin

75724 Paris Cedex 15 - France

Tél. : +33 (0)1 40 60 80 80

safran-group.com

@Safran

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