4 A RESPONSIBLE COMPANY

As a responsible and innovative group, CCR places environmental, social and technological challenges at the heart of its actions and thought process. The management of the teams aims to develop the skills of each individual, but also promote equality and professional diversity in a work environment that fosters research and innovation. CCR Group also pursues a sponsorship policy in favour of the environment, culture and humanitarian aid.

The Polar POD, a 100-metre high, zero-emission vertical vessel, is equipped with a gondola located 15 metres above the surface that can onboard 8 people with 6 months of autonomy.

“IN 2021, WE DECIDED TO SIGNIFICANTLY INCREASE OUR EXPOSURE TO INFRASTRUCTURES RELATED TO THE ENERGY TRANSITION.”

SÉBASTIEN JALLET,

Chief Investment Officer

A PROACTIVE AND RESPONSIBLE INVESTMENT POLICY

In 2021, equity markets in developed countries performed well in both Europe and the United States. The Eurostoxx 50 and CAC 40 indices soared by 21% and 29% respectively, while the S&P 500 and Nasdaq indices jumped by 27% and 21% respectively. However, accelerating inflation, the woes of Chinese property developers and the tightening of Chinese President Xi Jinping’s domestic policies, weighed heavily on emerging market equities.

2021 was the year in which economic growth resumed in developed countries after the economic crisis resulting from the various restrictions that States had adopted in the context of the global pandemic. Economic growth on both sides of the pond, was stimulated by expansionary fiscal policies and very accommodating monetary policies.

In the US, domestic demand remained strong in 2021 as evidenced by the preliminary retail sales data for November, which rose by +0.3% month-on-month after increasing by +1.2% in October. However, persisting inflation (6.8% year-on-year in November, its highest since 1982) and the fall in the savings rate in 2021 should weigh on household purchasing power.

The wave of Covid-19 caused by the Omicron variant should also lead to be more cautious, especially as the vaccination rate is among the lowest in the developed world (62%).

The producer price index in November was high (13%), significantly higher than the consumer price index (6.8%), which could mean that companies’ margins will be squeezed if cost increases are not passed on in sales prices. In this context, an increase in the price of manufactured goods cannot be ruled out.

The labour market returned to balance with an unemployment rate of 4.2%. Despite the economic and health uncertainties, the Fed decided to take a hawkish stance to fight inflation, announcing an acceleration of the reduction of its net asset purchases and now anticipates three rate hikes in 2022.

In the Eurozone, industrial production remained buoyant in October thanks to the rebound in automobile production, specifically in Germany (+2.3% in the Eurozone in November). In contrast, business and household confidence surveys dipped slightly. A further deterioration is expected in December as the surveys take into account the impact of the new Omicron wave and the uncertainties it brings with it. This slight decline in the latest data is also explained by the rise in prices (5.0% year-on-year in December), which is eroding household purchasing power. Against this backdrop, the European Central Bank (ECB) announced that it would end its Pandemic emergency purchase programme (PEPP) in March 2022.

“CREATING VALUE REMAINS OUR PRIORITY WITH A PARTICULAR FOCUS ON THE NON-FINANCIAL PERFORMANCE OF REAL ESTATE ASSETS.”

KARINE ROBIDOU,

Deputy Chief Investment Officer, Head of Real Estate, Infrastructure and ESG Investments

However, at the same time, the ECB decided to increase its net purchases within the Asset Purchase Programme (APP) to €40 billion per month in Q2, €30 billion in Q3 and €20 billion from October 2022 onwards for an as of yet undetermined period. The reduction in net purchases will therefore be very gradual throughout 2022. A rate hike in 2022 is highly unlikely according to Christine Lagarde, President of the European Central Bank, and the latest ECB inflation projections indicate a status quo as the ECB anticipates inflation below 2% at 2022 year-end but above all an average inflation of 1.8% in 2023 and 2024.

Just like last year, we witnessed equity markets ending the year with a bang. The new Omicron variant, which is more contagious but less dangerous as the vast majority of populations in developed countries have been vaccinated, is no longer of real concern to market players. Flows continue to be directed towards equities in a context of low interest rates in which the only way to achieve a return is through the dividends distributed by this asset class.

The rise in yields at the end of the year, linked to the tightening of monetary policies by the Fed in 2022 and probably by the ECB in 2023, is not, for the moment, undermining the confidence of financial markets in the equity markets. But geopolitical uncertainties could induce volatility.

Rising interest rates and stable credit risk premiums. Interest rates also experienced erratic movements with a sharp increase in French long rates (10-year maturity), which rose by 66 basis points until mid-May to reach 0.3%. Rates then fell by 46 basis points to -0.16% in early August. Rates then rose again as inflationary pressures were factored into the monetary policies of the major central banks. French 10-year rates thus ended 2021 at 0.20%, up 56 basis points over the year. On the credit bond front, risk premiums of Investment Grade (IG) credit remained relatively stable. Risk premiums on the iTraxx Europe index corresponding to average European IG premiums remained flat at 48 basis points over the period.

FINANCIAL INVESTMENTS

DYNAMIC STEERING TO CONTROL RISKS AND GRASP OPPORTUNITIES

How has the investment policy evolved in this context?

SÉBASTIEN JALLET : " In this rather favourable environment for risky assets, we opted for maximum exposure to the equity markets from the beginning of the year. On a stable allocation compared to 2019 year-end, we let the protection fund roll out at 90% exposure for most of the year. As a result, portfolios benefited from the bounce back in equity markets after being efficiently protected from the air pocket we experienced in 2020.

We also outperformed on the rates market. 2021 started with a high level of money market investments, which we worked to reduce throughout the year, helping to improve the current yield of our bond portfolios, all other things being equal.

Finally, we decided to significantly increase our exposure to infrastructure related to the energy transition. We namely sought to invest in infrastructures that use innovative techniques to produce decarbonised energy and hydrogen naturally emerged as a source of energy for the future.

Green hydrogen, produced from decarbonised energy, represents a substitute for hydrocarbons with the added advantage that it can be stored. The energy transition infrastructure fund to which we are committed to, is an impact fund that will represent about 1% of the Group’s assets. »

What is the outlook for 2022?

S.J. : « Rising long-term interest rates fuelled by tighter monetary policies are likely to cause volatility in what we believe are expensive equity markets.

The very high valuations of technology stocks are one of the most important risk factors in 2022 as rising long-term interest rates are expected to weigh on their valuations. We continue to think that if this technology bubble bursts, it could lead to a sectoral rotation towards more traditional stocks that still offer value today. If we add to the high levels of public and private debt in the world, the current configuration makes us cautious.»

REAL ESTATE

IMPROVING ENERGY PERFORMANCE

How did the performance of real estate assets change in 2021?

KARINE ROBIDOU : "CCR and CCR Re Premium’s real estate portfolios include directly-owned prime office and residential assets located in Paris. The valuations of these portfolios have continued to increase steadily this year, by around 6%. We also have holdings in thematic real estate funds that have shown a fair amount of resilience in certain asset classes, like in logistics and managed residential.

We now have €1 billion in real estate assets, which represents 9% of the Group’s assets. Despite the complicated conditions caused by the health crisis, we continued to be very active. On the one hand, in the management of leases, we maintained a good level of flat lets and renewed office space with rental growth. On the other hand, in the management of buildings, we completed an ambitious refurbishment programme to improve the energy performance of our assets.

The quality of our assets remains a priority, and we have a better understanding of their carbon footprint since we carried out energy audits. We have taken out green energy contracts for all our buildings, and each year we devote a major part of our works budget to improving the energy performance of the buildings. It is a demanding and sometimes complex task to preserve the history of our buildings which have strong architectural features.”

Quelles sont les perspectives pour 2022 ?

K.R. : "We are still active buyers but we are vigilant in terms of asset selection and pay very close attention to liquidity and risk/return profiles. We will be present on strategies ranging from off-plan development to the acquisition of buildings and secured products.

Competition is fierce: The return of inflation, lower volatility in real estate and its returns reinforce the appetite of investors for this asset class, but quality supply remains quite rare and expensive. Value creation remains our priority in our new acquisitions but also in our existing assets, with a particular focus on the non-financial performance of the assets. We will undertake the complete refurbishment of an office building by creating green areas and spaces, consider converting the use of an office building into a student residence and continue the creation of a wooden co-living building.

Finally, the development of our investments in thematic funds in France and Europe will be an important axis for the growth of our portfolios."

“BY INVESTING IN THIS FUND, THE CCR GROUP IS CONTRIBUTING BOTH TO THE COUNTRY’S ENERGY TRANSITION AND TO THE STRENGTHENING OF AN INDUSTRIAL SECTOR OF EXCELLENCE.”

NICOLAS MARY,

Head of Delegated Management Investments

INVESTMENT RELATED TO THE ENERGY TRANSITION

THE CCR GROUP COMMITS TO CREATING THE WORLD’S LARGEST FUND DEDICATED TO LOW-CARBON HYDROGEN INFRASTRUCTURE

The CCR Group is investing €100 million in the Clean H2 Infra Fund, an infrastructure fund managed by Hy24 which aims to invest in assets that reduce global greenhouse gas emissions. The fund is committed to key projects in the decarbonised hydrogen sector with a target outstanding amount of €1.5 billion. It is the largest hydrogen fund in the world. The portfolio aims to be diversified both geographically (Europe, the Americas and Asia), and across the decarbonised hydrogen value chain: production, conversion, storage, supply and end-use. Having a solid expertise with the participation of French industry flagships and a significant investment potential, the fund will support major projects that boost the growth of the sector and the energy transition with the target of reducing global greenhouse gas emissions, in accordance with Art. 9 of the SFDR.

The Clean H2 Infra Fund is managed by Hy24, the world’s largest clean hydrogen investment platform, which is a 50/50 joint venture between ARDIAN and FiveT Hydrogen. The Fund was created with the support of the main industrial players in the field of hydrogen energy, Air Liquide, TotalEnergies, VINCI-Concessions, Plug Power, Baker Hughes and Chart Industries, and two institutional investors, CCR and AXA.

of the Group’s assets, that’s what the investment represents in the Hy24 fund.

We will take ESG issues into account in investment analytical and decision-making processes

We will be active investors and take ESG issues into account in our shareholder policies and practices

We will require the entities in which we invest in to publish appropriate information on ESG-related issues

We will promote the acceptance and application of the Principles among the asset management community

We will work together to increase our effectiveness in implementing the Principles

We will individually report on our activities and progress in implementing the Principles

THE CCR GROUP ABIDES BY THE UN PRINCIPLES OF RESPONSIBLE INVESTMENT

CCR Group joins the 365 French signatories of the Principles for Responsible Investment (PRI) defined and supported by the UN. As a reinsurer of the natural catastrophe compensation scheme, CCR has been integrating extra-financial criteria on the environmental impact, societal issues and governance of issuers into its investments for several years.

Joining the PRI is an obvious choice for the CCR Group, which is exposed to the consequences of climate change, and goes hand in hand with the investment policy reorientation undertaken several years ago by CCR and CCR Re to commit to responsible and sustainable finance.

“TEAM SPIRIT, INVOLVEMENT, HONESTY, RESPECT, SERVICE AND RESPONSIBILITY ARE WORDS THAT REFLECT OUR DNA AND ALLOW US TO MEET THE HUMAN CHALLENGES OF THE GROUP’S TRANSFORMATION.”

MARLÈNE LARSONNEUR,

Chief Human Resources Officer

THE DIVERSITY OF THE TEAMS, A VECTOR FOR INNOVATION AND GROUP DEVELOPMENT

The diversity of our teams, the gender balance, and the ability of our talents to innovate and add value to the Group’s development are proudly highlighted to summarise 2021.

For several years now, but even more so in this second year of Covid crisis, we feel it is essential to thank our employees for their commitment to the Group’s values. Team spirit, involvement, honesty, respect, service and responsibility are words that reflect our DNA and allow us to meet the human challenges of the Group’s transformation.

302

employees, of which 21 were work-study placements

69 %

of them have chosen to work remotely

84 %

attended at least one training course

The Group joined the Welcome to the Jungle platform.

A FLEXIBLE WORK ORGANISATION

Amendments to remote work agreements were signed in both Group entities, allowing remote work to become a much more flexible way of organising work, offering a better work-life balance for all our employees.

The redesigned work organisation combining remote work and on-site presence allows everyone to:

- gain flexibility and improve team satisfaction,

- develop their agility while taking into account operational and organisational needs,

- optimise the quality of life at work,

- preserve the health of each of our employees and to improve working conditions, in particular by reducing commuting time, fatigue and stress.

MULTICULTURALISM AND MULTILINGUALISM

The CCR Group is strengthening its language training with “Blending Learning” courses in partnership with a company called Speexx. This learning evolved in 2021 with the launch of the new Speexx platform using a more comprehensive and innovative pathway that enables learner-centred learning and interests through artificial intelligence.

This new course has enabled us to offer all Group employees free access to the Speexx Language Resource Centre. These microlearning courses, available in five languages, offer everyone the opportunity to reactivate and maintain their language skills.

INNOVATION AND SHARING AT THE HEART OF OUR HIRING PROCESS

This year, the Group joined the “Welcome to the Jungle” platform, allowing candidates to dive at the heart of our expertise and corporate life and promote our employer brand.

Until now, we always posted job offers on our websites, but today we are putting our corporate culture even more clearly in the spotlight, highlighting our work environment, our corporate values, our key figures, our diversified career paths in the form of video testimonials... it’s a whole new way for candidates to see our Group, which is actively hiring.

This innovative showcase offers future candidates a real-time view of our Group.

50 %

of women on permanent contracts

40 %

of women in the Group Comex since 2019

39 %

of managers are women in the CCR group as at 31/12/2021

91 %

gender equality index of the CCR group

The Human Resource team.

The Group has set up a referral programme called RECRUT’COOPT, which offers a collaborative hiring process based on human relationships. This approach aims to affirm and formalise the notions of trust, mutual respect and direct relationship that underpin interactions between the Group and its employees. By letting its employees recommend profiles, the Group increases its chances of receiving qualified and diverse candidates. This approach is also in line with the CCR Group’s commitment to the Diversity Charter, which was renewed in 2021.

Employees, who are encouraged to make referrals, become ambassadors of our know-how, our professionalism and our values to those around them. Thank you to all the participants of the 2021 edition, for their involvement and their referrals reflecting the expertise of the Group.

A COMPANY FOCUSED ON SOCIETAL ISSUES AND WITH AN ACTIVE DISABILITY POLICY

Changing the way people think about disability, improving the employment conditions of people with disabilities and promoting diversity are at the heart of our human resources policy.

For the 4th year in a row, the Group hosted the European Employment Week for People with Disabilities in November 2021. Throughout the week, an original programme was proposed to change the way people look at disability with challenges, quizzes, testimonials on the theme of disability, diversity and employment.

The Group worked with various service providers, including Diversidées for its Big Quizz, which aimed to lift taboos around diversity. Café Joyeux, a company which employs and trains people with mental disabilities, came to make a speech on inclusion and fragility in the workplace. A member of staff described the ascent of the Kilimanjaro by his friend, Julien VEDANI, who has a physical disability.

Eight employees of the CCR Group, which is a partner of the French Disabled Sports Federation, had the pleasure of taking part in its gala dinner in November 2021 at the Hôtel de Ville de Paris with numerous celebrities from the world of sports, namely the medal-winning athletes of the Tokyo Paralympic Games.

CCR Group employees at the gala dinner of the French Handi Sport Federation.

FOCUS

PROMOTING THE INITIATIVES OF OUR YOUNG TALENTS

In 2020, the Group launched a “young talent” competition to promote the best initiatives of “young talent” between 20 and 35 years old. Twelve teams took part and presented their project orally to the jury, made up of members of the CCR Group Executive Committee. The lucky winners of the competition were announced in January 2021, during the New Year’s address by Bertrand LABILLOY, CCR Chief Executive Officer, CCR Re Chairman and Chief Executive Officer. The projects were rolled out in the second half of 2021.

First prize

The project “Speak, spoke, spoken” by Zi-Xiang WANG, Joséphine KIEFFER and Pape NDIAYE: form one or more discussion groups with the aim of improving oral expression in a foreign language. One-hour workshops in English and Spanish started in September 2021 for the entire company. Led as friendly group discussions, these one-hour sessions take place during lunch breaks on a voluntary basis.

Second prize

The project of Roxane MARCHAL and Margot PINSUN called “Climate Change Responsibility”: aiming to get an ecolabel for the CCR Group on all the actions carried out to fight against climate change and not only an ecolabel focused on finance.

The actions that have been implemented so far include the replacement of traditional paper with recycled paper, better signage for sorting bins and the launch of several studies on the recycling of cigarette butts. With regard to soft mobility, a survey was sent to employees to find out if they were interested in a Velib’Pro membership. This proposal, signed in the Mandatory Annual Negotiations (NAO or négociations annuelles obligatoires) in December, will be implemented in 2022.

Third prize

Johnny NGUYEN’s “Youth and CCR” project: supporting the CCR Group in sharing its knowledge with young people from disadvantaged backgrounds. Partnerships were formed with two associations to welcome young people to the Group’s premises and to raise their awareness of good practices in job hunting and integration into the workplace.

With an association called E2C93, CCR Group employees led workshops to help young people write their CVs and cover letters, and set up mock job interviews. This initiative will continue in 2022 with another association called Stage & Après.

The ‘Young Talents Competition’ was an opportunity to honour these young talents and to promote the diversity and actions of our young employees.

A STRONG CORPORATE CULTURE, CEMENTING COMMITMENT AND PERFORMANCE

The CCR Group has built a strong culture and a collective identity around values of commitment driven by communication, dialogue and action. The harshness of the health crisis in 2021 reinforced our determination to be even more supportive and active as a corporate citizen.

SHARED VALUES

Since the start of the pandemic in 2020, the Group’s values have become even more relevant: team spirit, respect, involvement, service, honesty and responsibility. These values cover professional, behavioural, relational and moral qualities.

TEAM SPIRIT AT THE HEART OF THE ACTION

The main challenge during the pandemic was to keep in touch with employees despite the distance imposed by working from home. While the development of specialised IT tools enabled virtual proximity, the strength of the CCR Group’s corporate culture was obvious in the widespread participation and enthusiasm at events organised physically on the company’s premises when the health crisis allowed it.

The physical return to work in September 2021 was an opportunity to organise a number of events to enable employees to discover all the new actions put in place to make their workplace pleasant and friendly. A breakfast reunion was held on the new terrace on the top floor with a breathtaking view of the Eiffel Tower and the discovery of the company’s new reception venue for seminars and team meals.

The highlight of this recovery week gave all employees the opportunity to meet in the gardens of the Musée Rodin to celebrate CCR’s 75th anniversary. A strong moment of reunion around fun and artistic activities.

The CCR Group fosters a friendly and caring atmosphere, and the Communications department organises internal activities and events throughout the year to provide employees opportunities to meet and get to know each other.

INVOLVEMENT AND SERVICE AT THE HEART OF THE INITIATIVES

Employees are encouraged to become more actively involved in society by participating in internal events offered by the Group.

In 2021, the success of the fourth edition of “Giving Tuesday” demonstrates this with the creation, by employees, of a solidarity box, filled with useful items or gourmet gifts, intended for the underprivileged. 50 boxes were collected and distributed by the charity “La balade des lucioles” during their end of year rounds.

With its patronage of the Energy Observer, company employees were able to meet the ship’s crews at the event organised in May 2021 on the Champ-de-Mars, follow a guided tour of the new exhibition village, understand how hydrogen production works and test vehicles and bicycles that run on this ‘fuel of the future’. On World Earth Day in April 2021, a speaker of the Ecoacteurs charity, which CCR Group sponsors, took part in two workshops: ‘My sustainable and waste-free food’ and ‘Towards (almost) nil waste’ to raise awareness among employees of the environment, sustainable development, the agri-environment and ecotourism.

As part of the Climate Change Responsibility project, the CCR Group encourages and promotes ideas from employees on sustainable solutions for office life, such as improving waste sorting, implementing a policy of purchasing recycled/able supplies, choosing soft mobility for business trips and improving the carbon footprint of each department.

FOCUS

PROMOTING WELL-BEING AT WORK

The work environment influences the pleasure of employees to come into work every day. The CCR Group therefore attaches great importance to the physical and mental well-being of its employees in the workplace by providing them with numerous amenities:

- two user-friendly areas for meals and breaks were created: a terrace on the top floor and a cafeteria called ‘Le 157’

- a gym with a wide range of equipment and a dozen weight training and fitness machines is available in the company basement.

Two employee-initiated sports associations: AS CCR and CCR FC offer running, fitness, yoga, pilates and football

- a weekly sophrology workshop allows employees to relax and learn about relaxation and activation techniques for the body and mind

- a weekly distribution of fruit is offered on the premises for employees to access healthy and balanced snacks on each floor.

The gym is available to all employees.

Development of new spaces on the 9th floor of the headquarters.

Le 157, the Group’s cafeteria.

Development of new spaces on the 9th floor of the headquarters.

Le 157, the Group’s cafeteria.

The gym is available to all employees.

CCR, ENVIRONMENTAL, CULTURAL AND SOCIAL PATRON

CULTURAL PATRONAGE

The CCR Group renewed its patronage of the Musée Rodin in 2021, to support the museum’s restoration and acquisition projects. CCR Re thus contributed to the purchase and restoration by the museum of a national treasure, which is of major interest to the French heritage. This original plaster sculpture, modelled by Auguste Rodin’s himself, is entitled ‘I am Beautiful’ (Je suis Belle in French).

ENVIRONMENTAL PATRONAGE

CCR continued to patron the Energy Observer. 2021 was the year of the greatest journeys of this odyssey, in an environment still generally weakened by the pandemic. In May 2021, the new Energy Observer exhibition village made a stop in Paris during the “Le Paris de l’Hydrogène” event and presented new mobility solutions using this technology.

MUSÉE RODIN

The restoration of ‘I am Beautiful’ allowed for a more uniform appearance of the work: the sculpture was cleaned and its broken elements were repaired. These steps were carried out by the Musée Rodin’s restoration teams, under the direction of its curators. The two characters in this sculpture, Crouching Woman and The Falling Man, appear in The Gates of Hell, but are assembled here to produce an entirely different scene inspired by Charles Baudelaire’s poem ‘Beauty’.

POLAR POD

CCR is a sponsor of the Polar POD ocean expedition launched by Jean-Louis Étienne. Polar POD is an oceanographic platform designed to withstand extreme sea conditions which allows scientists to collect valuable and previously unattainable data. For its first exploration, Polar POD will drift for three months in the waters of the powerful Circumpolar Current to study the Southern Ocean surrounding Antarctica.

ENERGY OBSERVER

In 2021 the ship and crew sailed more than 15,000 nautical miles, a record distance for a year of exploration. During this journey, the crew continued filming the Energy Observer Solutions videos showcasing the initiatives of those who are devoting their energy to creating sustainable solutions.

H@NDI @LTITUDE

aims to make outdoor sports activities (skiing, climbing, etc.), and more specifically skydiving, accessible to people with reduced mobility or disabilities, whether for leisure or competition. Organises discovery jumps in wind tunnels and supports athletes during training jumps and competitions.

OLAGARROA

promotes artistic, cultural and sporting activities for young people with disabilities. The association promotes collective activities for broader social integration. Organises courses and prepares skiers for competitions by helping them with their travel arrangements.

ECOACTEURS

promotes and supports the great outdoors, heritage and sustainable development players in the Médoc region. Organises its actions around environmental education and sustainable development, agri-environment and ecotourism. Develops communication of its projects on social media and environmental awarenessraising events for the general public.

CULTURAL PATRONAGE

ENVIRONMENTAL PATRONAGE

MUSÉE RODIN

POLAR POD

ENERGY OBSERVER

H@NDI @LTITUDE

OLAGARROA

ECOACTEURS

WUMODJA

provides access to culture for Comorian children and facilitates the integration of students arriving in France. The association organises collections of books and school supplies to help equip a library in the southwest of Grande Comore, in the village of Domoni, where it has undertaken the construction of a primary school.

AHVEC

set up and developed several years ago a socio-educational centre in carpentry/ building to welcome and train abandoned children in Baleveng, North West of Cameroon. The training centre was followed by other infrastructure projects that contribute to local life (a nursery school, a well, etc.).

UN STAGE ET APRÈS

aims to support students who have dropped out of school to help them regain a taste for school at junior high school level. Welcoming them to the CCR Group allows these students to discover the company and the diversity of the employees’ backgrounds.