Corporate Responsibility Report 2019 Ambition Trusted partner for your Digital Journey Contents 4 Interview with Thierry Breton, Chairman and Chief Executive Offi cer 6 Integrated approach 7 Profi le 8 2016 Landmarks 10 Market trends 12 2019 Ambition and strategy 14 2019 Financial and extra-fi nancial targets 16 Stakeholders’ expectations 18 Materiality and challenges 20 The Atos’ value creation model 22 Governance 24 Main Key Performance Indicators Atos’ Corporate Responsibility and Sustainability Challenges 26 People A diverse, talented and motivated workforce 32 Business & Innovation The partner of choice for sustainable innovation 40 Ethics & Supply Chain Walking the walk to stand tall 46 Environment Innovative leadership for environment 52 GRI G4 Content Index 61 Auditor’s Assurance Letter 62 Contacts 63 Scope of the reports Atos has produced this 2016 Corporate Responsibility Integrated Report in accordance with the G4 Comprehensive option and IIRC framework principles. Atos has successfully completed the GRI Content Index Service. The overall process and reports are assured by an external auditor. This document contains the Atos Integrated Dashboard and main Key Performance Indicators relating to Atos’ corporate responsibility. The names of the indicators (GRI labels) are placed at the top of specific pages with the following codification: GRI: [G4-XX]. Atos - Corporate Responsibility Report 2016 3 Interview with Thierry Breton,G RI: [G 4 - 1] Chairman and Chief Executive Offi cer An integrated strategy for our 2019 Ambition to embark on our next chapter of sustainable growth W hat has Atos achieved in the last few years? In our 2013 strategic plan, we announced ambitious objectives to achieve sustainable growth. Three years later, we have delivered on those promises with impressive results. We have exceeded our revenue target to reach circa € 12 bn in 2016 and we have grown from 72,000 people to 100,000. Atos’ profile has significantly changed with an even stronger focus on technology; this is largely due to our recent acquisitions of Bull with High Performance Computing and security, and Unify with integrated Communication and Collaboration. As a result, Atos was among the top 5 digital leaders in 2016. We are the #1 leader in Europe, and we are now strongly established in North America, our largest region. What are the aims of the 2019 Ambition strategic plan? As Digital Shockwaves accelerate, sending out wave after wave of transformative disruption, digital will become the cornerstone of enterprise and public services competitiveness and growth, bringing both opportunities and risks. In this ever more connected world where data should be protected and valued, organizations need both pragmatic and innovative partners to help them in their digital transformation. We are increasingly well positioned as their trusted partner for this digital journey. This is the essence of our new strategic 2019 Ambition: to help all our customers navigate towards digital transformation while providing 4 TTrruusstteedd partner for your Digital Journey A timeline of Corporate them with enhanced security, greater computing power, application transformation and deeper collaboration. We will continue to capitalize Responsibility and on our technological strengths and people skills by bringing to the Sustainability at Atos market what we call the Digital Transformation Factory based on four growth pillars. These include: Atos Canopy Orchestrated Hybrid Cloud, SAP HANA by Atos, Atos Digital Workplace and Atos Codex. We will also continue to enhance our state-of-the-art cybersecurity 2009 technologies across all our off erings. In addition, Worldline, now the largest payment service provider in Europe, will continue to expand its Creation of the Corporate Responsibility powerful payment and transaction technology services. and Sustainability program. How important is corporate responsibility and sustainability to Atos’ clients and to Atos? Our customers come to Atos because they want to transform their 2010 business for the digital era. Becoming more sustainable is an integral part of that transformation. Sustainability is a major driver in the IT services Atos starts to carry out regular materiality assessments in order to identify the main market, and it is growing every year. All of our clients are requesting challenges it faces (GRI guidelines). sustainable outcomes from us. One example is our zero carbon datacenter services. As the digital partner of choice for our customers, Atos becomes the first IT company to off set we have embedded corporate sustainability and responsibility into all residual CO emissions from its datacenters. our operations and all our innovations. That is why at the Atos Board 2 of Directors’ and Executive Committee levels we follow the indicators Launch of the global workplace of our performance very closely two times a year. And we insist on transformation program, Wellbeing@work. improvements and progress year after year. Atos signs up to the United Nations Global How does the extra-fi nancial performance of Atos relate to the Compact. company’s fi nancial performance? I don’t believe that in today’s fast-moving world you can separate the two elements. If we don’t invest in our people and in innovation, if we don’t minimize our environmental footprint and if we don’t act 2011 fairly and ethically at all times, then we cannot achieve our financial First annual meeting of Global Stakeholders. targets on a sustainable basis. I’m a strong believer that the success of a company should be measured as much by its ability to progress in areas such as social impact, innovation, governance and the environment as by its financial statements. That is why, at Atos, we have an integrated approach to our performance. In everything we 2012 do, we try to create shared value. Our objectives for 2019 include Atos is assessed by major Corporate extra-financial areas such as managing our carbon footprint and Responsibility rating agencies including our supply chain as well as off ering our people the best possible Dow Jones Sustainability Index (DJSI), working environment in our open, collaborative workplaces. Their Euronext Vigeo and FTSE4good. digital expertise, understanding and capacity for innovation form the foundation of our growth. Launch of the Client Innovation Workshops. What were the main achievements for Atos in terms of corporate social responsibility in 2016? Our performance speaks for itself. Since 2012, we have cut our carbon 2013 intensity by 50% which has led the CDP to rank us as best-in-class for reducing carbon emissions. I am also proud that the Dow Jones Launch of e-learning for employees Sustainability Index (DJSI) has ranked Atos as the most sustainable about the Code of Ethics. company in the IT services sector (#1 of its Gold level) and that our Corporate Responsibility Integrated Report was rated once again at the G4 comprehensive level, the highest rating from the Global Reporting Initiative. In addition we have doubled our investment in digital training 2015 in the last three years. Just in 2016, we completed 14,000 digital certifications and we intend to multiply this number in the coming Atos achieves a -50% reduction in carbon years. intensity from a 2012 baseline. In short, innovation and sustainability are inseparable parts of our DNA. Building on the main capital that is invaluable for Atos – our people – they are the main drivers of our strategy of creating long-term value 2016 for our clients and all our stakeholders, as well as for society as a whole. Atos achieves the GRI G4 Comprehensive Level, the highest rating, for its Corporate Responsibility Integrated Report for the third consecutive year. Atos is recognized as the best performer in the IT services sector by DJSI (#1 of the Gold level). Atos - Corporate Responsibility Report 2016 5 Integrated approachG RI: [G 4 - 18] [G 4 - 19] Using integrated thinking to create long-term value As a leader in digital services, Atos aims to deploy technology and innovation to promote a more sustainable society. At Atos we believe that corporate responsibility and sustainability form an integral part of a successful digital transformation journey, creating lasting value for stakeholders and ensuring sustainable growth. In 2016, Atos presented its three-year strategic plan “2019 Ambition” including both fi nancial and extra fi nancial targets. Atos management promotes integrated thinking criteria in its decision- making processes. In this context, the Group has adopted an integrated reporting framework to communicate its strategy for growth, report on its progress, and explain how its actions benefi t its stakeholders and society at large. • Since 2014 and for the third year in a row, Atos has produced its Corporate Responsibility Integrated Report in accordance with the Global Reporting Initiative (GRI) G4 Comprehensive option. This option includes fi nancial and extra-fi nancial performance fi gures, following the AA1000 Standards for an integrated approach to stakeholder engagement. • As an active member of the Integrated Reporting Business Network and of its Technological Initiative, Atos believes in long-term value creation and the key role of digital technologies to support companies to advance towards a fully integrated management approach. • Atos’ integrated approach is embedded in its annual materiality review, using key performance indicators for the six capitals – fi nancial, manufactured, human, intellectual, social & relationship and natural – mobilized to create lasting value. As a result of its annual materiality review process, Atos identifi ed in 2016 four principal challenges determining its continuous success in the market: people, business & innovation, ethics & supply chain, and environment. 6 Trusted partner for your Digital Journey GRI: [G 4 - 3] Profi le Atos, trusted partner for your Digital Transformation In this fast-changing world driven increasingly by data, Atos brings together people, business and technology to create the firm of the future and deliver sustainable growth. As technology and increasing social and environmental expectations continuously raise the bar higher, our clients can rely on Atos to guide them through a successful digital transformation creating long-term value for themselves and for society as a whole. € 12 € 1,104 We are experts in: Infrastructure & million operating margin Data Management billion annual revenue Business & € 230 Platform Solutions 27% female employees million investment in the Big Data & Atos-Siemens Alliance Cybersecurity Digital Payments & e-Transactions 100, 096 employees 72 Communication in countries 5,000 Soft ware & Platforms active patents owned by the Group Integrated reporting for the digital age • We are leaders in digital services with pro • With its cutting edge technologies, digital forma annual revenue of circa € 12 billion expertise and industry knowledge, the Atos and circa 100,000 employees in 72 countries, Group supports the digital transformation of serving a global client base. its clients across diff erent business sectors including: Defense, Financial Services, Health, • By investing in innovation and bringing best Manufacturing, Media, Utilities, Public sector, practices to our customers we embrace the Retail, Telecommunications, and Transportation. Digital Journey as their trusted partner. Atos - Corporate Responsibility Report 2016 7 2016 Landmarks Corporate sustainability recognition in 2016 R ecognition of Atos’ firm commitment to operating a truly sustainable business resulted in several prestigious awards and high rankings from a variety of leading independent ratings agencies in 2016. In May 2016, Atos published its 2015 Corporate Responsibility One month later, international non-profit global disclosure Integrated Report in compliance with the highly demanding system CDP rated Atos as a world leader for corporate recommendations from the Global Reporting Initiative G4 action on climate change, placing the company on its 2016 comprehensive option and the International Integrated Climate “A” List. The accolade was given in the presence of the Reporting Framework. This was the second year in a row that French Minister Ségolène Royal in respect of the company’s Atos successfully completed the GRI Content Index Service continuous eff orts to integrate environmental priorities into its with the G4 comprehensive option, demonstrating the Group’s overall strategy, to reduce its own footprint and to innovate and continued excellence in corporate sustainability. develop digital solutions that its clients can use to meet both their business and climate challenges. In September Atos was ranked number 1 in the IT services sector in the Dow Jones Sustainability Index for its Atos was granted gold status for its performance in sustainable sustainability commitment and performance both globally development by EcoVadis, an independent agency specialized (2016 DJSI World Gold Level) and in Europe (2016 DJSI in supplier sustainability rating. Atos increased its score from Europe Gold Level). While this was the fifth consecutive year 2015 in the four key areas assessed by EcoVadis: fair business that Atos had been selected as a member of the Dow Jones practices, environment, labor practices and sustainable Sustainability Indices, Atos has been recognized as the most procurement. This excellent result positions Atos among the sustainable company in its industry group, which includes 2% of companies which have advanced engagement with a around 150 companies worldwide. corporate sustainability and responsibility. The score confirms Atos as a trusted partner with strong commitment to reducing risk in its supply chain. How leading extra fi nancial rating agencies assessed Atos in 2016 In March 2017, Atos was ranked at the top of the CAC 40 Governance Index, a new corporate governance index based on the CAC 40, developed by Euronext together with corporate social responsibility (CSR) rating agency Vigeo Eiris. The index rates companies listed in the CAC 40 Paris stock index on their corporate governance performance, in particular the extent to which they have integrated social responsibility and sustainability into their decision-making processes. Entered in the CAC 40 on March 20, 2017, Atos is ranked in the top 10 CAC 40 companies, based on 45 indicators that address the following four criteria: •Responsible board practice and organization: eff ectiveness, balance of power integration of social responsibility factors; •Audit and internal controls: independence of specialized committees and review of CSR risks; •Shareholders’ rights: fair treatment and protection of minorities; •Responsible executive remuneration. 8 Trusted partner for your Digital Journey “Our world-class performance in corporate responsibility and in integrated thinking differentiates Atos as a trusted business partner and as a responsible employer. External organizations such as the GRI and the Dow Jones Sustainability Index have awarded us their very highest rankings. Our leadership in corporate responsibility and sustainable innovation is a core part of who we are and is key for our clients in their digital transformation.” Olivier Cuny General Secretary, Atos Awards and recognition for our teams Atos Digital Chair with the ENS and the CEA The ENS (École normale supérieure) Best Risk Monitoring Paris-Saclay, a prestigious public institution of higher education in France, Award 2016 together with the CEA (the French Alternative Energies and Atomic Energy As part of the Awards for Risk Commission) and Atos agreed in 2016 Management, Atos received the prize to form a partnership that will last at for the best risk monitoring, awarded by least five years. The partnership will Employee Crowe Horwath Global Risk Consulting, include the creation of an Industrial Data the IFACI (French Institute of Audit and Engagement Analytics & Machine Learning Chair, to Control) and law firm Dechert. be based at ENS Paris-Saclay. This Chair Company of the will support a program of collaboration The risk management system at Atos to stimulate industrial applications is based on a set of procedures and Year 2016 of artificial intelligence and the tools implemented as true competitive development of disruptive technologies. advantages that promote quality. Atos was awarded both the Employee Known as AtosTM Rainbow, this system Engagement Company of the Year facilitates the analysis and processing and the Wellbeing Award at the North of risks linked to the project life cycle. American Employee Engagement AtosTM Rainbow encourages managers Awards held in Chicago in 2016. Several to extend their operational excellence aspects of the unique Atos Wellbeing@ through relevant checks and best work program were singled out for practices among their operations and praise. These included the Atos Accolade support teams. program which honors employees for their key contributions to successful projects and delivers multiple points of employee appreciation. The judges noted that Atos’ prioritization of career development was one of the most impactful drivers of employee engagement. The awards were also given in view of the increased employee collaboration through the adoption of blueKiwi, the social network environment for Atos employees. Atos - Corporate Responsibility Report 2016 9 Market trendsG RI: [G 4 - 2] The new data-driven economy Digital transformation continues to drive fundamental business and organizational changes. With digital transformation, clients will move from legacy infrastructure, through cloud orchestration, to autonomics and cognitive solutions. As a consequence, enterprises need strong partners to accompany them in their digital journeys, providing them with enhanced security, greater computing power, application transformation and deeper collaboration. Digital Shockwaves in business will radically change end-to-end production and service processes in all sectors of the economy. Some Digital Shockwaves will impact certain industries more than others. Some will bring positive eff ects, others will bring potential threats. The business and social impacts of these shockwaves will intensify competition in all industries, and will require the development of new employee skills, new forms of security and new business models. GLOBALIZATION Business Models How companies are taking advantage Evolving Challenges of digital technologies to find new markets, Beginning with security, whose business models and revenue streams. constant evolution demands radically new reexamination. Digital Blended Digitalization of Business Models Energy Business Models TION NInettewlloigreknedt DEM MA Deep Entreprise OG O learning R T A U DevOps in large P A H IT for Life Blockchain Organizations I Interactive & C S Dynamic Media Evolving Challenges Ways of Working Identity Quantum safe Augmented Cryptography Interactive Reality Fast Data Additive Identity & Manufacturing Wearables Ways of Working Privacy How people will collaborate with people, machines and Disruptive Technologies virtual ‘beings’ in entirely new ways. Cloud & C & LI Cloud Continuum Containerization SM USAT TAINE CH IoT & Future Networks Computing Memories U ST ABILIATNGE T R Y Disruptive Technologies How certain specific technologies may single-handedly create major societal and economic disruptions. 10 Trusted partner for your Digital Journey