Bureau Veritas is a world leader in Testing, Inspection and Certification (TIC) services. The Group helps strengthen trust between companies, authorities and consumers. Its mission is to reduce its clients’ risks and improve their performances. It also supports its clients with their innovations in the areas of quality, health, safety and sustainable development.

Bureau Veritas is recognized for its expertise, impartiality, integrity and independence, acquired over its 190 years of existence.

The services provided by Bureau Veritas are designed to ensure that products, assets and management systems conform to given standards and regulations in terms of quality, health, safety, environmental protection and social responsibility (QHSE).

Depending on its clients’ needs and on applicable regulations, standards or contractual requirements, Bureau Veritas acts:

• ●as a “third party”, independently issuing reports and conformity certificates for products, assets, systems, services and organizations;
• ●as a “second party”, on behalf of and upon the instructions of its clients to ensure better control of the supply chain; or
• ●as a “first party”, on behalf of clients seeking support in ensuring or improving the conformity of their products, assets, systems and services.

The services delivered by Bureau Veritas cover six areas of value creation for its clients:

Companies must prove that they are compliant with a large number of standards and regulations. Bureau Veritas helps them by providing its in-depth expertise on the standards applicable to their businesses. As an independent third party, Bureau Veritas verifies that companies comply with these standards. This allows them to conduct and develop their businesses in compliance with local and international regulatory requirements and thereby to obtain and maintain the necessary licenses to operate issued by public authorities.

International trade relies on third-party players who certify that the goods exchanged comply with the quality and quantities stipulated in commercial contracts. Bureau Veritas plays a key role in these transactions by testing materials, verifying that goods comply with contractual specifications and validating quantities. Exchanges of commodities, for example, are based on certificates issued by companies such as Bureau Veritas.

Capital goods and mass consumer products must meet national and international standards before being sold on the market in a given country. These standards act as technical trade barriers within the meaning of the WTO. Companies design and manufacture their products and equipment in accordance with the standards of different countries. They call on Bureau Veritas to carry out tests and optimize their test plan, with the aim of getting their products to market faster.

Managing risks relative to quality, health, safety, environmental protection and social responsibility improves the efficiency and performance of organizations. Bureau Veritas helps its clients to identify and manage these risks, from project design to completion and decommissioning.

Second- and third-party testing, inspection and auditing methods allow companies to determine the true condition of their assets. This enables them to launch new projects and products with the assurance that costs, timing and quality are under control. During the operational phase, inspections help optimize maintenance and extend the useful life of industrial equipment.

The huge rise in the use of social networks has transformed how global brands are managed. Brands may quickly find themselves impacted by a malfunction in one of the links in their supply or distribution chain. Bureau Veritas helps companies better manage these risks, by conducting analyses as a highly reputed independent global player.

Bureau Veritas offers three main types of services:

• ●Testing and analyses: These services determine the characteristics of products or materials in the laboratory or on-site
  • ●They provide assurance that they meet safety and quality requirements.
  • ●These services also ensure that products or materials comply with terms of reference, standards and regulations.
• ●Inspection: Inspection involves on-site verification that a product, asset or system meets defined criteria.
  • ●It covers a wide range of services designed to reduce risk, control quality, verify quantity and meet regulatory requirements.
  • ●Inspections include visual and document checks, manufacturing supervision, and various other types of inspections (electronic, electrical, mechanical, software).

• ●Certification: Certification attests to compliance with specific requirements and is delivered by an accredited body. It provides a guarantee from an independent third party that a product, service or management system meets specific standards.
  • ●Certification enables companies to strengthen their reputation, access new markets or carry out their activities. 
  • ●Bureau Veritas offers certification services for management systems, products and people.

The Group is active in the following areas:

• ●Assets: ships, trains, aircraft, buildings, infrastructure, networks, power plants, refineries, pipelines, industrial installations;
• ●Products: consumer products (electronics, textiles, toys, automotive, food, smart devices), industrial equipment (pressure equipment, machinery, electrical equipment), commodities (oil, petrochemicals, minerals, metals);

• ●Systems: QHSE management systems (ISO 9001, ISO 14001, etc.), sector-specific QHSE systems (automotive, aeronautics, agri-food), supply chain management, supplier audits.

Bureau Veritas has a broad-based portfolio of more than 400,000 clients. It operates in a wide range of industries:

• ●transportation and shipbuilding;
• ●oil and gas value chain, from exploration to supply;
• ●construction and civil engineering;
• ●power and utilities;
• ●consumer products and retail;
• ●aeronautics and rail;
• ●metals and minerals industry;
• ●agri-food;
• ●governments;
• ●automotive and chemicals.

On December 31, 2023, the ten biggest clients represented around 7% of the Group’s yearly revenue, while the 25 biggest clients accounted for around 11%. This illustrates the diverse nature of the Group’s revenue streams.

Bureau Veritas operates in close to 140 countries with many sites across the globe. Historically, management has been based on a decentralized organizational structure. This favors local decision-making and accountability to better meet its clients’ needs. However, to adapt to changing market trends, Bureau Veritas combines this autonomy with a transversal operational approach and global business management based on its Global Service Lines. Control procedures and reporting rules have also been implemented and are applicable across the Group’s operations. These rules and procedures are regularly updated to bring them into line with changes in Bureau Veritas’ businesses, organization, processes and tools.

Since Bureau Veritas’ growth is partially driven by acquisitions, the Group integrates companies with a wide variety of practices and policies. Integration is achieved by implementing specific internal procedures.

In order to better address the specific characteristics of some of its end markets, meet the evolving needs of its clients, improve management of its geographic network and support the deployment of its strategic plan, Bureau Veritas’ organization revolves around three divisions:

• ●Marine & Offshore;
• ●Consumer Products Services;
• ●Commodities, Industry & Facilities (CIF), comprising four businesses:
  • ●Agri-Food & Commodities (including Government services and International trade),
  • ●Industry,
  • ●Buildings & Infrastructure,
  • ●Certification.

Global Service Lines are responsible for the overall management of each of the CIF division’s businesses, structured as six main regional hubs:

• ●Southern and Western Europe;
• ●France;
• ●Middle East, Caspian Sea region and Africa;
• ●North America;
• ●Latin America;
• ●Asia Pacific.

The CIF division, which accounts for almost 80% of the Group’s revenue, is gradually adopting a matrix-based organization aimed at:

• ●serving its clients globally;
• ●adapting to market trends by sharing high-level technical and IT capabilities;
• ●spreading best practices throughout the network;
• ●benefiting from economies of scale to develop new products or invest in new tools.

Since 2017, Bureau Veritas has adapted the way it reports its earnings to its market-focused organization. It now reports on six businesses (as compared to eight historically): Marine & Offshore, Agri-Food & Commodities, Industry, Buildings & Infrastructure, Certification, and Consumer Products Services. This change enhances the understanding of the Group’s business portfolio. Further details on these businesses are provided in section 1.5 – Presentation of business activities, of this Universal Registration Document.

Executive Committee members oversee the Group’s support functions. These functions were reinforced at the beginning of 2024 and are represented by:

• ●Juliano Cardoso, Executive Vice-President, Corporate Development & Sustainability. This new role at Bureau Veritas has been created to accelerate the development and execution of the Group’s strategy, while accelerating the integration of sustainability concerns into all operations and services;
• ●François Chabas, Executive Vice-President and Chief Financial Officer, in charge of finance, tax, investor relations and purchasing;
• ●Kathryn Dolan, Executive Vice-President, Human Resources.
• ●Philipp Karmires, Executive Vice-President and Chief Digital and Information Officer. This new role is designed to boost digital culture and technologies at Bureau Veritas. In enabling Bureau Veritas to better meet its clients’ needs and capture increased efficiency and productivity, digital transformation supports the Group’s future growth trajectory;
• ●Béatrice Place Faget, Executive Vice-President, Legal Affairs & Internal Audit.

The “Information Office for Maritime Insurance” was founded in Antwerp, Belgium, in 1828, to collect and verify information regarding the condition of ships for insurers. Later renamed Bureau Veritas, the company transferred its registered office to Paris and built up an international network.

The growing number of accidents during the construction boom that followed the First World War led to the introduction of preventive measures. Bureau Veritas supported industrial expansion and branched into inspecting metal parts and equipment for the rail industry and conducting technical testing in the aeronautical, automotive and construction industries. The Group opened its first laboratories near Paris to conduct metallurgical and chemical analyses and test services for building materials.

The 30-year post-WWII boom brought with it technical progress, growing urbanization and world trade. Bureau Veritas played a key role in modernizing shipbuilding and classifying subsea vessels, nuclear-powered vessels and shipping hubs. The start of the computer era led to the use of more scientific methods. Bureau Veritas reinforced its construction expertise in the protection of people, goods and in energy efficiency.

As the world became increasingly globalized, economic players required traceability, transparency and technical consistency across the globe. To meet the needs of its clients, Bureau Veritas developed its Certification and Government services businesses to evaluate management systems and supply chains. New subsidiaries in the United States, Africa and China expanded its network. Acquisitions in the United States strengthened its expertise in consumer goods, and the Group also expanded its presence in the United Kingdom, Australia and Spain. It became the leader in compliance assessments for the construction industry in France.

Bureau Veritas was listed on Euronext Paris on October 24, 2007. The IPO was aimed at driving Bureau Veritas’ growth by raising its profile, giving it access to new means of financing and forging loyalty among its employees.

Fast-growing countries were investing more in infrastructure and experiencing growing demand for quality, safety and reliability. After its acquisition of Inspectorate in 2010, Bureau Veritas became one of the world’s top three players in the commodities sector. It became a leading player in Canada following its acquisition of Maxxam and carried out in parallel a series of acquisitions in the construction and consumer products industries in China. In 2015, Bureau Veritas defined a new strategic roadmap through 2020, focusing on growth, resilience and profitability.

After six transformational years, Bureau Veritas successfully rebalanced its activities to build an efficient growth platform Building on the success of its previous strategic plan and having overcome the Covid-19 crisis, the Group presented its 2025 strategy in December 2021, a strategy underpinned by innovation, proactiveness and agility for its future growth, thereby affirming its sustainability leadership in the TIC sector.

The Group presented its strategy through 2028 at its Capital Markets Day on March 20, 2024. With the vision of becoming the preferred partner for customers' excellence and sustainability, Bureau Veritas has built its LEAP I 28 strategy around three pillars: Portolio, Performance and People, with sustainability at its core. Details of Bureau Veritas' LEAP I 28 strategy are provided in section 1.4 – Group's strategy and objectives, of this Universal Registration Document.

In 1995, the Wendel group became co-shareholder of Bureau Veritas with the Poincaré Investissements group. Wendel gradually acquired a controlling interest in the Company in 2004. That year, Wendel and Poincaré Investissements respectively held 33.8% and 32.1% of the capital and voting rights of Bureau Veritas, while the remainder was held by individual investors. On September 10, 2004, Wendel acquired 100% of Poincaré Investissements, raising its stake in Bureau Veritas to 65.9% of the capital and voting rights.

Wendel proposed that Bureau Veritas’ minority shareholders sell their interests under terms similar to those offered in connection with the acquisition of control. After this private purchase and exchange offer was executed, the Wendel group held 99% of Bureau Veritas’ capital and voting rights. Bureau Veritas was listed on Euronext Paris on October 24, 2007. Wendel then sold around 31% of the capital for €1,240 million.

• ●On March 5, 2009, Wendel sold 11 million shares as part of a private placement, reducing its equity stake from 62% to 52%.
• ●On March 6, 2015, Wendel sold 48 million shares(1) as part of a private placement, bringing its shareholding to 40% of the capital and 56% of the voting rights of Bureau Veritas.
• ●On October 30, 2018, Wendel sold 21 million shares as part of a private placement, after which the company held around 35% of the capital and 52% of the voting rights of Bureau Veritas.

On December 31, 2023, Wendel held 35.43% of the capital and 51.56% of the exercisable voting rights of Bureau Veritas.

To the Group’s knowledge, there is no comprehensive report covering or dealing with the markets in which it operates. As a result, and unless otherwise stated, the information presented in this section reflects the Group’s estimates, which are provided for information purposes only and do not represent official data. The Group gives no assurance that a third party using other methods to collect, analyze or compile market data would obtain the same results. The Group’s competitors may also define these markets differently.

Services related to quality, safety, performance, sustainability and responsibility are termed as Testing, Inspection, and Certification (TIC). TIC tasks range from on-site tests and supply chain inspections to data verifications. They can be carried out at any supply chain stage, in all sectors, and by various private or public parties.

The TIC market size is tied to the value and risk of products or assets. The "TIC intensity" corresponds to the fraction of an item's value dedicated to controlling this asset or product. Typically, this fraction ranges from 0.1% to 0.8%. The TIC market's value is determined by multiplying the TIC intensity by the amount spent on goods and products by manufacturers, operators, buyers and sellers.

Market fluctuations are linked to economic factors like inflation or global economic activity and trade. Using this method, Bureau Veritas estimates the global TIC market to be nearly €300 billion, considering factors like market investment and goods and services’ production value.

Considering the diverse nature of the TIC sector and the diversity of industries it addresses, each end-market segment is naturally exposed to its own growth drivers and cycles. The O&G end-market for example will be largely dependent on the oil price. Any boom in oil activity can lead to an increase in the required TIC services.

However, collectively, the global TIC market is supported by secular trends, and technological, economic or societal inflections that should benefit the TIC activity.

For additional information on secular trends, see the section entitled "A strategy resolutely in step with trends", of the Integrated Report included in this Universal Registration Document.

These secular trends are strong business drivers and shape the fundamentals for the TIC industry as - in all areas – they generate:

• ●an expanded need for regulation from public authorities at all levels. This is especially the case in fields such as ESG, cybersecurity or Artificial Intelligence, for example:
  • ●the General Data Protection Regulation (GDPR),
  • ●the Corporate Sustainability Reporting Directive (CSRD),
  • ●the Cyber Act.
• ●the leveling-up of norms & standards in the world, developed by groups of global experts, that will help facilitate geographical expansion of 3rd party service providers;
• ●increasing society requirements for traceability and transparency to protect brand and reputation.

The overall TIC market is estimated at €300 billion worldwide, and can schematically be broken down into two segments:

• ●the “insourced market”, i.e., services managed internally by companies (e.g. for quality control) or directly by public authorities like customs and safety authorities.
• ●the “outsourced market” which is ultimately the addressable market for specialized service providers like Bureau Veritas and represents 45% to 50% of the global TIC market.

At national level, the size of the outsourced, hence addressable, TIC market is influenced by a country’s administrative structure, its federal versus central nature, as well as economic profile and presence of specific industries. Depending on these factors, the market size can significantly vary, independently of broader economic conditions. Companies’ strategic choices between insourcing and outsourcing may change annually, based on government policies and industry shifts.

Today, Bureau Veritas sees a growing trend towards outsourcing and therefore an increase of its addressable market, driven by:

• ●an enhanced client focus on their core activities;
• ●increased public service delegation translating into the privatization of statutory regulated verifications;
• ●this phenomenon is linked to scarcity and arbitrage in financial resources by companies and governments.

Geographically, the TIC market is split into three regions: Europe, the Americas and Asia. Due to the complexity and specificity of local and national regulations, this market is mostly addressed by hundreds of specialized local or regional players with only a handful of truly global players. The top ten players in the industry, based on the Group’s calculations, hold about 25% of the outsourced market, equivalent to roughly €150 billion.

The trend towards globalizing specific TIC markets supports industry consolidation. Major players are positioning themselves to serve multinational corporations and expand local market footprints.

Given Bureau Veritas’ worldwide network, leadership status across its sectors, and acquisition experience, it stands strong to play a pivotal role in this consolidation phase of the TIC market. For an in-depth insight into the Group’s acquisition approach, refer to section 1.4.3.1 – Focused portfolio, of this Universal Registration Document.

Entering the global market in this field is challenging due to several high-entry barriers:

1. ●Reputation matters: a strong reputation for integrity and independence is essential for building long-term risk management partnerships with businesses.
2. ●Authorizations and accreditations are needed to operate in many countries. Acquiring them is a time-consuming process. Therefore, building a comprehensive portfolio demands long-term efforts.

• ●Geographic network: having a robust presence both local and international is crucial.
  • ●A dense local network ensures optimized service roll-out and economies of scale.
  • ●Simultaneously, an international dimension aids in supporting global clients everywhere they operate.
  • ●A wide array of services is expected, especially for key accounts, helps in executing large contracts and differentiating from local competitors.
  • ●The high technical skills and expertise of the Group's teams offers a competitive edge. Such expertise ensures delivery of high value-added solutions.
  • ●A strong and renowned brand is essential to build and ensure customer trust.

Together, these factors create a challenging landscape for new entrants aiming for a global stance.

Bureau Veritas boasts a vast global network with more than 1,600 offices and labs in almost 140 countries across the world.

Countries with established economies, such as France, the US, Canada, Japan, the UK, Spain, Italy, the Netherlands, Australia, and South Korea, feature a prominent presence of Bureau Veritas. These nations have strong regulatory frameworks, and the Group is recognized for its technical prowess and modern production techniques.

In rapidly developing economies, like China, Brazil, Chile, Colombia, the United Arab Emirates, and India, Bureau Veritas has secured strong footholds for a sustainable growth. The Group has fostered a significant local presence over time in these regions and continues to grow by inaugurating new offices and labs.

The scale of the Group’s network is a core asset, offering value and differentiation on both commercial and operational levels.

• ●On the sales front, this vast network empowers Bureau Veritas to cater to key accounts. This enables securement of significant international contracts, which are becoming an increasingly substantial portion of its activities.
• ●Operationally, the Group capitalizes on its scale to enhance profitability. Economies of scale arise from shared office spaces, back-end operations, IT resources, and the distribution of costs associated with innovating in new services and standardizing inspection procedures over a broader base.

With a regional hub organization in pivotal countries, Bureau Veritas efficiently distributes knowledge, technical aid, and sales teams throughout areas. In the future, the Group envisions fortifying this hub-centric network structure, leveraging the benefits of scale.

Bureau Veritas has built a successful global business based on its long-standing reputation for technical expertise, high quality and integrity. This reputation is one of its most valuable assets and is a competitive advantage for the Group worldwide.

Throughout its history, the Group has honed expertise across diverse technical fields and developed a comprehensive understanding of regulatory landscapes. At present, Bureau Veritas holds accreditation from numerous national and global delegating authorities and accreditation bodies, either as a second or third party. The Group persistently works to uphold, refresh, and broaden its array of accreditations and approvals. Regular inspections and audits by these bodies ensure the Group’s procedures, staff qualifications, and management systems adhere to the necessary standards, rules, and regulations.

Bureau Veritas places paramount importance on values like integrity, ethics, impartiality, and independence. These core values not only shape the brand’s reputation but also enhance its value to clients. In 2003, with the guidance of the TIC Council (an international body representing independent testing, inspection, and certification firms), these values were at the heart of the efforts in the TIC profession. This collaboration culminated in the creation of the Group’s inaugural Code of Ethics, released in October 2003 and regularly updated since then.

Bureau Veritas’ financial structure is built on a robust foundation that hinges on four essential characteristics:

• 1 .Dual growth drivers: The financial model leverages two primary streams for growth:
  • ●organic growth,
  • ●supported by strategic acquisitions.

The past ten years have witnessed an average organic growth of around 3%.

• 2 .Profitable growth model: Bureau Veritas’ historical adjusted operating profit margin stands at circa 16%. It signals the Company’s ability to effectively manage its operations and maintain profitability even in challenging circumstances.
• 3 .Steady cash flow generation: over the last half-decade, the Group has consistently delivered free cash flow above €600 million. This is due to the significant efforts deployed to monitor and optimize its cash flow and liquidity, especially when it comes to working capital requirements.
• 4 .Rigorous capital allocation strategy: Bureau Veritas operates with a strict capital allocation philosophy.

1. ●The net debt remains considerably below banking ratio thresholds.
2. ●Simultaneously, the Group must have the liquidity to fund potential acquisitions and continue its commitment to pay dividends to its shareholders.

Section 1.4.6 – Financial and non-financial ambition, of this Universal Registration Document provides an in-depth look into Bureau Veritas’ financial goals and aspirations.

Bureau Veritas’ new vision is: to be the preferred partner for customers’ excellence and sustainability.

Bureau Veritas wants to be ‘top of mind’ for its customers in its market verticals, with superior service quality and solutions differentiation versus competitors. This entails building long-lasting relationships with customers, and guiding them when tackling their current and future challenges.

It is the Group’s responsibility to anticipate changes and innovate to serve its customers as they pursue excellence and higher levels of quality, safety, environmental compliance, and as they seek to obtain new sustainability credentials.

This unifying vision translates into an ambitious strategy, focusing the Group’s efforts on key priorities with a high potential for impact, growth and returns, and designed to ensure the Group’s customers’ excellence and sustainability.

The new strategy framework is based on three pillars: Portfolio, Performance and People, combined with a holistic approach to sustainability both within Bureau Veritas’ organization and with its stakeholders. The objective is to support its customers in their transition while leading by example in its own journey.

The first pillar is the portfolio strategy, designed to reshape Bureau Veritas' activities around the Group's differentiation and growth on its markets. Through an active management of its portfolio, the Group aims to focus its activities that will unable it to attain top leadership positions in the served markets. It will achieve this through organic growth, accelerated M&A and portfolio high-grading.

To this end, the Group will implement a three-fold approach:

• 1 .Expand current leadership in existing strongholds through a combination of rapid organic scaling and inorganic expansion to fill in gaps in each activity.
• 2 .Accelerate growth in selected markets to create new long-term strongholds, investing early in fast growing strategic sectors (sustainability, energy transition and digital), where the Group has a clear path to market leadership.
• 3 .Optimize value and impact from the remainder of the portfolio in a granular and consistent way. Businesses that do not meet stringent financial performance hurdles will be candidates for performance improvement or portfolio high grading.

In addition, Bureau Veritas’ Sustainability offering will actively support its clients' sustainability journey across all markets served by Bureau Veritas, from transition to transformation.

Expand Leadership in businesses where Bureau Veritas is an established leader: this concerns the current strongholds of the Group in terms of market share, expertise and brand recognition with substantial growth opportunities.

The objective is to invest to increase the competitive advantage of the Group versus market followers and to develop in select white spaces.

Priority will be given to organic and M&A investments to accelerate the development of new solutions and expand the Group's capacities and geographical coverage in new markets.

In parallel, Bureau Veritas ambition is to accelerate its development in markets underpinned by powerful trends to establish winning organic platforms, and to build the strongholds of tomorrow.

This concerns businesses in fast-growing markets, where the Group can leverage its attributes to become market leader. These activities will become top priority for organic and inorganic investments.

Activities in this block are key as they will contribute to the Group’s resilience and generate profits to be reinvested in strategic priorities. They are a mix of:

• ●performing businesses in more mature markets where the Group already has solid positions to defend; and
• ●currently low-performing businesses which present an opportunity for margin and profit improvement to generate funds for strategic investments. 

The Group will monitor this mix to ensure it is aligned with its objectives of creating step change in growth and shareholder return.

Capitalizing on its technical expertise, field DNA, global reach and independence as a trusted third-party, Bureau Veritas’ role is to support its customers in their transition journey to a new, sustainable model. The Group will accompany its clients in their transformation strategy through the development of novel solutions and an active network of experts. The Group aims to build leadership positions in two complementary segments of services with the objective of multiplying the share of sustainability in its revenues by three by 2028:

• ●transition services: supporting clients' move to more sustainable business models, through two types of activities:
  • ●ESG transformation services, i.e., supporting the implementation and monitoring of plans,
  • ●compliance and reporting assistance services, supporting clients' efforts to comply with and communicate on regulatory and voluntary disclosures;

• ●green object services, supporting the build and maintenance of green assets, green products, and green commodities - e.g., renewables, new mobility, green fuels, etc.

Acquisitions play a key role in Bureau Veritas’ strategy. The Group operates in a very fragmented market and has strong attributes to actively participate in the consolidation of its industry. Over the last 10 years, the Group has made 59 acquisitions, representing more than €900 million of revenue acquired.

Firmly aligned with its ‘focused portfolio’ strategic directions, the Group is ready to accelerate its M&A ambition, in a very disciplined way, consistent with its criteria around targets valuation, growth and profitability metrics and value creation potential.

While carrying on its bolt-on strategy, the Group will remain open and attentive to mid-size opportunities (revenues above €100 million) targeted in key sectors such as Buildings & Infrastructure, Cybersecurity, Sustainability, Certification, Consumer Goods and Renewables.

In addition to a clearly defined portfolio strategy, the Group’s strategic framework is complemented by specific performance programs.

The objective is to entrench higher granularity in the measurement and management of the day-to-day business. The Group also expects to elevate customer experience, and service quality versus the rest of the market, and will modernize and scale select operational and functional processes to extract operational efficiencies.

The Group aims to accelerate growth through additional capacity from enhanced productivity and reduced cost to serve from efficiencies, with the ambition to deliver up to 100 bps of operational leverage and up to 80 bps of functional scalability by 2028.

Two of the enablers in the implementation of this strategy pillar are 1) operational performance & functional scalability, and 2) innovation.

The Group will improve its delivery models, to better serve its customers and to reduce its cost to serve. Three key areas of focus have been identified to extract operational leverage:

• 1 .Improving performance management and measurement, leveraging the set of good practices shared in the Bureau Veritas network today. This granular, rigorous and continuous management of operational performance is to be prioritized by managers at all levels, to entrench the culture of continuous performance improvement in operational management practices. This will ensure harmonized KPIs are consistently monitored and incentives are put in place to assure implementation across all levels of the organization.
• 2 .Modernizing operational and functional processes, reducing lead times for processing clients' requests and improving productivity. This will reduce the Group’s structural operating costs. 
• 3 .Creating Group functional scalability built around functional efficiency programs that will leverage the scale to build efficient and cost effective support structure. 

The TIC industry is currently impacted by several key megatrends, including digitization & connectivity accelerating the pace of change. These evolutions offer new opportunities for organizations capable of rapidly scaling technologies that have proved their efficiency.

The future being by essence uncertain, innovation and agility is required to swiftly adapt to new paradigms and maintain leadership in a constantly changing world.

Innovation and technology are the backbone of Bureau Veritas’ strategy through a three-layered approach.

First, the Group has invested in scalable global enterprise systems. It has migrated its systems to the cloud to strengthen global operations across human resources, finance, and sales.

Second, this makes it possible to capture data through modernized operation systems, enabling people in the field and in labs to deliver superior customer service.

The third layer is the innovation with technologies including machine learning and Artificial Intelligence (AI) to address customer needs and create new revenue streams.

This approach will enable Bureau Veritas to navigate the complexities of a world in constant evolution to enhance services, improve the service quality of its operations, and improve its people productivity and capabilities. With this clear focus, the Group is well-positioned to capture the opportunities of the future and execute its 2028 ambition.

As a service company, Bureau Veritas’ people skills and knowledge are critical to its market differentiation and business success. The Group will evolve its people model to navigate a competitive and changing labor space.

Three underlying trends to take into consideration:

• ●A combination of an evolving generational dynamic and a growing role of technology
• ●A shrinking workforce across developed markets and increased demand for skills
• ●An accelerated need for ‘New Economy’ and technical skills

In this fast-moving world, the Group’s competitive advantage and ability to outpace competition will come from:

• 1 .New economy skills, or how the Group will be able to hire and develop the skills it needs faster and more efficiently. For its growth in the new economy, the Group should be capable of acquiring and developing more rapidly and efficiently skills such as energy transition, sustainability and cyber, which are not all available at scale in the market. To ensure it can power this growth, Bureau Veritas will have to blend its strength in hiring with an accelerated focus on developing the skills itself.
• 2 .Tech augmented ways of working, or how the Group will accompany people in new ways of working. With the increasing role of technology, Bureau Veritas will develop new tech-augmented service models that require new skills and competencies. These enhanced service models will free experts to focus on adding value, improving productivity, and enhancing customer service quality.

Staying true to its purpose of “Shaping a world of trust by ensuring responsible progress”, Bureau Veritas must be exemplary in its own sustainability journey.

The Group’s CSR strategy addresses the three dimensions of "Shaping a Better Workplace", "Shaping a Better Environment" and "Shaping Better Business Practices", to drive a positive transformation of Group activities and actions. This is delivered through the engagement of its 83,000 dedicated employees(2) to shape a better environment, a better workplace and better practices. Bureau Veritas will be fully engaged to deliver on its CSR commitment. The Group will also continue its efforts around the following priorities: climate, circularity and biodiversity, health & safety, human capital, diversity, and ethics.

The Group is committed to the achievement of five key performance indicators through 2028. In 2023, Bureau Veritas’ near-term targets on CO2 emissions reduction trajectory have been endorsed by the Science Based Targets initiative (SBTi). It emphasizes Bureau Veritas’ commitment to follow a trajectory in line with the Paris Agreement goals.

Bureau Veritas is now a more resilient business and capable of a step change in growth and profitability. The new mid-term financial targets reflect this ambition:

Over the period 2024-2028, the use of Free Cash Flow generated from its operations will be balanced between Capital Expenditure (Capex), Mergers & Acquisitions (M&A) and shareholder returns (Dividend):

In addition, to support its strategy and reflect its financial health, Bureau Veritas intends to buy back up to €200 million shares under the share buyback program approved by the Annual Shareholders’ Meeting. This operation will be financed using available resources.

Bureau Veritas verifies that ships and offshore facilities comply with classification rules, mainly as regards the robustness and reliability of equipment. This mission is usually carried out together with the regulatory certification mission essential for operating ships. Marine insurance companies require such certificates to provide coverage, and port authorities also check that valid certificates exist when ships come into port. It is also essential for operators to make sure that their offshore facilities are in line with applicable safety and quality standards, as well as regulatory requirements.

Bureau Veritas Marine & Offshore services help clients comply with these regulations. They also help them reduce risk, extend asset lifecycles and protect the marine environment.

The Group is involved from the construction phase, approving drawings, surveying the shipyard and inspecting materials and equipment. Experts then make regular inspections throughout the vessel’s lifetime to provide ongoing oversight. Bureau Veritas provides a range of technical services, including asset integrity management. On behalf of its clients, the Group monitors any changes in regulations, identifies applicable standards, and liaises with the authorities. It also informs them about the compliance process and carries out design and execution reviews.

The Group has diversified its services: first by providing loss adjustment and risk assessment for the offshore industry and later marine accident investigations, pre- and post-salvage advice and the refloating of vessels. In 2018, it created Bureau Veritas Solutions Marine & Offshore (BV Solutions M&O). In 2023, 40% of Bureau Veritas Marine & Offshore revenue was generated by the certification of ships under construction, while the remainder was generated by the surveillance of ships in service and complementary services.

Bureau Veritas is a member of the International Association of Classification Societies (IACS), which brings together the largest international classification societies. Together, these companies classify around 90% of the world’s ships. The rest of the world’s fleet is either classified by small companies or not classified at all.

To meet the needs of its clients, the Marine & Offshore network has 2,900 experts in 90 countries. In addition to 19 local design approval offices (located near its clients), the Group’s network of 180 control stations gives it access to qualified surveyors in the world’s largest ports. This means that inspections can be conducted on demand and without the delays that could be detrimental to the ship’s business and owner.

Maritime trade has been on the rise since the early 2000s, except in 2020 due to the Covid-19 pandemic. In 2023, orders for new ships and renewal of the worldwide fleet continued to see good momentum, above the trends observed since 1996. Demand is mainly for LNG carriers and container ships, as orders for bulk carriers and tankers decline.

At the beginning of 2024, global order books stood at a record 3.4 years.

Bureau Veritas is the world leader in terms of the number of classified ships and ranks number five worldwide in terms of tonnage with a greater market share in 2023. The Group has expertise in all segments of maritime transport, spanning different types of vessel including bulk carriers, oil and chemical tankers, container ships, gas carriers, passenger ships, warships and tugs. It also has expertise in offshore facilities designed for the exploration and development of coastal and deep-water oil and gas fields (fixed and floating platforms, offshore support vessels, drill ships, subsea equipment). Bureau Veritas also holds the leading position in the market for highly technical ships such as liquefied natural gas (LNG)-fueled vessels, LNG or liquefied petroleum gas carriers, and other types of specialized vessels and equipment.

Bureau Veritas supports the maritime industry in its various advances and innovations, from Arctic shipping to LNG supply chains. It also supplies new solutions and ratings to ensure on-board safety and supports technologies ranging from alternative fuels to on-board autonomy.

The Group has several thousands of clients. Its key clients are:

• ●shipyards and shipbuilders around the world;
• ●equipment and component manufacturers;
• ●ship owners;
• ●oil companies and Engineering, Procurement, Installation and Commissioning (EPIC) contractors involved in the construction and operation of offshore production units;
• ●insurance companies, P&I (Protection & Indemnity) clubs and lawyers.

In millions of gross registered tonnage (GRT)

International regulations applicable to maritime safety and environmental protection are evolving rapidly, providing classification companies with growth opportunities and momentum. These include:

• ●Reduction in greenhouse gas (GHG) emissions: with the introduction of new regulations adopted under the aegis of the International Maritime Organization (IMO) and the European Union, new and existing ships must improve their energy performance. Bureau Veritas can play a crucial role in certifying compliance with the new EEXI and CII standards.
• ●The EU’s “Fit for 55” package: these measures set out a roadmap for achieving the European Union’s goal of reducing GHG emissions in the EU by at least 55% by 2030 as part of the European Green Deal. Bureau Veritas offers audit, inspection and certification services to help maritime companies comply with these requirements.
• ●The Ballast Water Management (BWM) Convention adopted under the aegis of the IMO: this entered into force in 2017 and gives classification societies a greater role in verifying the effectiveness of ballast water management systems.
• ●Ship recycling: the Hong Kong international convention and European regulations in this area offer opportunities for ship recycling inspection and certification services. Under the EU’s Ship Recycling Regulation (applicable at the end of 2018 for new ships and as from January 2021 for existing ships), ships are required to have on board an Inventory of Hazardous Materials (IHM).
• ●Regulations applicable to ships for inland navigation transporting hazardous materials: Bureau Veritas is one of three classification societies recognized by the European Union.
• ●Cyber resilience: the IACS (International Association of Classification Societies) unified requirement concerning the on-board integration of computer-based systems came into force in 2016. It has since been rounded out by new rules for cyber resilience of on-board systems and equipment.
• ●A “safety case” system for the offshore industry: this development requires the expertise of an independent body which Bureau Veritas can provide.
• ●Monitoring, Reporting and Verification (MRV) and Data Collection System (DCS): the EU and IMO have introduced regulations on the monitoring, reporting and verification of carbon dioxide emissions and on the collection of ships’ fuel consumption data. These rules are designed to further drive decarbonization efforts in the maritime sector.
• ●The Polar Code and ban on heavy fuel oil: the “Polar Code”, or “IMO Guidelines for Ships Operating in Polar Waters” came into effect in January 2017. The IMO’s ban on the use of heavy fuel oil in the Arctic region has also been in place since January 1, 2024.

All these factors require technical and regulatory know-how, which is at the heart of Bureau Veritas’ expertise. As a classification and certification company, the Group is well positioned to help maritime companies navigate this complex and fast-changing regulatory landscape.

Bureau Veritas plays a key role in supporting the maritime industry in its energy transition. In the face of major challenges in terms of the environment and greenhouse gas emissions, the Group is actively committed to steering the maritime industry towards solutions that are both sustainable and environmentally friendly.

The maritime industry recognizes the importance of propulsion technology choices in the current climate emergency. The deadlines set by the IMO from 2023, then 2030 and 2050, entail difficult decisions for ship owners. By the end of 2023, approximately 50% of orders for new ships were based on dual-fuel systems. LNG, with its potential to reduce emissions, is seen as a particularly critical transition fuel. Methanol is also emerging as a relevant option, particularly for container ships.

Offshore markets, meanwhile, are focusing on gas projects, not least because of geopolitical changes in Europe. These developments open up new opportunities over the coming years. In order to maintain current production levels and replace older infrastructure, investments continue to be made in the offshore oil sector. The market has also seen a significant rise in investments from oil companies in offshore projects for both fixed and floating wind farms. Considerable investments were made in wind farm installation and maintenance vessels.

As an independent body, Bureau Veritas plays an essential role in assessing new technologies for ship owners, shipyards and suppliers. It offers critical expertise from the earliest stages of design through to delivery, and throughout the assets’ lifecycle.

Through its Green Line offer, Bureau Veritas provides a wide range of services to support the shipping industry, such as:

• ●developing and implementing standards for new alternative propulsion solutions and fuels, validating their sustainable origin, developing dedicated infrastructures and providing project assistance;
• ●reducing the risks associated with new projects through approvals in principal (AiP), which are designed to provide an independent opinion on the risks and reliability of the design;
• ●voluntary sustainability initiatives, through the Sustainable Ship ratings, which recognize efforts to reduce pollution and emissions, protect marine ecosystems, recycle ships and improve well-being on board;
• ●onshore & offshore wind lifecycle solutions;
• ●engineering services for sustainability performance and sustainable construction in shipyards;
• ●responsible fishing practices;
• ●crew and passenger safety, and on-board health, safety and hygiene protocols;
• ●electrifying sea-going vessels.

Bureau Veritas Marine & Offshore recently published two white papers, the first on alternative fuels (“Alternative Fuels Outlook”) and the second on the decarbonization of the shipping industry (“Decarbonization Trajectories – Sharing Expertise: Realistic Approaches to Shipping’s Decarbonization”). These papers are designed to guide and raise awareness of the challenges facing the shipping industry.

In 2024, the decarbonization of shipping will undoubtedly be at the heart of the industry’s major challenges. Bureau Veritas will continue to support its ship owner, shipyard and charterer clients in transitioning to cleaner energy, lending invaluable technical expertise to solutions for today’s and tomorrow’s world.

The digital revolution in the maritime industry is gathering momentum. Bureau Veritas Marine & Offshore is at the forefront of this revolution, reinventing the role of technology in classifying ships and offshore facilities. By leveraging new tools including digital twins, drones, remote virtual tours, artificial intelligence and cloud platforms, the Group can help its clients make safer, more effective, data-driven decisions.

Digital Classification comprises four key services:

• ●3D classification, which is bringing the design review and monitoring process for the construction of new vessels and offshore facilities into the digital age using a 3D model. By using 3D models, all stakeholders – ship owners, shipyards and Bureau Veritas – can work together more effectively. This real-time collaborative platform offers unrivaled efficiency, enabling rapid adjustments and dynamic exchanges;
• ●remote inspection techniques, whose adoption in the form of drones and other smart devices (exploration robots, remote-controlled vehicles, etc.) is a real advancement. They improve safety by avoiding inspectors having to access hazardous areas, and also increases inspection accuracy;
• ●predictive models, which represent the future of maintenance. Optimized, predictive inspection schemes enable maintenance decisions to be based on specific, dedicated risk analyses. The “BV Machinery Maintenance” solution is an example of how technology can improve maintenance processes in real time, saving time and money;
• ●costs associated with inspections, including for example travel, can be considerably reduced thanks to remote and augmented reality inspections. This means they can be carried out in a safer, more flexible and effective manner.

The introduction of smart functions on-board ships enables better supervision and transparency, key drivers in the transition to a more sustainable shipping industry. Through reduced emissions and improved maintenance, smart ships will help facilitate compliance with international regulations and reduce operating costs.

Classification societies play an important role in facilitating the transition to smart shipping, by helping industry players adopt new data-driven processes.

Through its SMART ratings, Bureau Veritas recognizes the importance of this transition and strives to help its clients on their path towards safer, more connected and more environmentally friendly navigation.

The Group is aware of the need for its clients to be able to access durable digital platforms to guide them through their decarbonization and digitalization strategies over the long term. This is what prompted the collaboration between Bureau Veritas and OrbitMI, a maritime software company whose integration platform provides connected information. This technology facilitates effective decision-making by offering a range of simple digital solutions for collecting, reporting and tracking data during maritime operations.

Developing strong value-added services remains an important growth driver for the Group and its businesses.

Bureau Veritas Solutions Marine & Offshore (BV Solutions M&O) is a separate and independent organization providing clients with specialist technical advice. In this era of energy transition, many players in the shipping industry are looking for solutions to design and operate in a more sustainable way. As an independent consultant, BV Solutions M&O offers engineering and modeling services that enable clients to evaluate and compare various solutions. This entity’s international expansion, most recently in Australia and South Korea, is a response to the growing demand for these types of services.

Particularly in demand are risk and feasibility studies relating to the integration of new fuels such as hydrogen, ammonia and methanol, as well as vessel propulsion systems. These energy alternatives are at the heart of current debates on decarbonizing the shipping industry. In developing expert technical services focused on GHG strategy studies for a variety of stakeholders – from ship owners to banks – BV Solutions M&O uses a global fleet management approach and various management scenarios. These issues are crucial to the industry’s ability to make informed decisions.

Bureau Veritas plays a crucial role in helping to transform the world into a more sustainable place. It supports responsible use of resources, advocates for animal rights, and ensures traceable and reliable supply chains. This helps consumers make informed choices.

Its Agri-Food & Commodities division ensures safe and efficient resource extraction, production and distribution. It fosters transparency and sustainability throughout the entire supply chain.

The Group provides end-to-end expertise in inspection, audit, certification, and testing. Agri-Food & Commodities services cover all stages of production & extraction, from exploration, production, trade & recycling for three main markets:

• ●Oil & Petrochemicals;
• ●Metals & Minerals;
• ●Agri-Food.

The Agri-Food & Commodities division leverages the synergies of a global lab and inspector network. Its broad range of services and global reach allow Bureau Veritas to adapt to market changes and support clients holistically. The aim is to promote traceable, sustainable, and ethical production and trade.

In addition, Bureau Veritas provides Single Window inspection services to help governments grow their international trade.

Bureau Veritas enjoys long-standing relationships with top traders and players in the oil, mining, agriculture and food industries.

For over 35 years, the Group has also been a global leader in delivering Government services. Its expertise in this market is well-established and respected.

• ●global presence, in particular in high-potential regions;
• ●strong leadership positions in all commodities segments with recognized multi-sector technical expertise;
• ●advanced technical expertise with laboratory facilities in prime areas;
• ●a dense and consistent network of laboratories and inspectors to ensure optimized pricing and quick turnaround;
• ●agile Government services with ability to quickly put in place new programs worldwide;
• ●long-term ties and a solid reputation with big Commodities, Agri-Food key players, and governments;
• ●a strong position to support the sustainability and traceability transition of the sector.

The commodities testing and inspection market is concentrated. In 15 years, Bureau Veritas bought 20 companies and is now a leader in commodities trading, food testing, and oil and minerals testing. These acquisitions allowed the Group to expand its presence in Australia, the Americas, Asia, Europe, and Africa.

In the Oil & Petrochemicals sector, Bureau Veritas is a global leader in testing and inspection. It is also among the top three in the Metals & Minerals sector.

In Agri-Food, the Group leads the market in Agri inspection in Brazil and rice inspections worldwide. It is also the food testing market leader in Canada, Australia, and South East Asia. The 2019 joint venture with AsureQuality further strengthened its position and laboratories network in South East Asia and the Pacific.

• ●In the Oil & Petrochemicals division, Bureau Veritas is boosting its inspection and testing offer and market share for marine cargo. The Group is also opening new locations to broaden its reach and widen its expertise in lube oil and LNG.
• ●For Metals & Minerals, the goal of Bureau Veritas is to grow its market presence, mainly for on-site laboratory, trade-focused inspections and testing. Bureau Veritas plans to do this by expanding its network, capitalizing on its expertise, and maintaining strong customer ties.
• ●In Agri-Food, Bureau Veritas plans to secure key positions at major Agri-commodity trading hubs. The Group also invests in services that monitor and improve the social and environmental impact of food and Agri-commodities.
• ●In terms of Government services, the Group’s strategy is based on supporting the transition to Single Windows as per the recommendations of international organizations encouraging governments to set up secure web platforms to restructure and simplify government services. The strategy also aims to develop public service delegation contracts in order to optimize State resources (for example, the Code’nGO! theory exam for driving license applicants in France) and improve the tax collection process (for example, gas station controls).

The Group delivers both inspection and laboratory tests for traditional products like crude oil, gasoline and chemicals. It also includes services linked to renewable fuels such as biofuels, sustainable aviation fuels or biodiesel. This segment focuses on bulk liquid cargoes in the trade flows and supply chains and serves major oil refining and trading centers globally.

• ●Cargo inspection services help ensure commodities meet contract or legal specifications and limits. This minimizes contamination and loss;
• ●Lab tests help many players in the industry uphold standards. With “Reshape Your Lab”, Bureau Veritas provides state of the art laboratory management solutions. The Group also provides clients high value-added services like oil assays, bunker quantity and quality surveys, biofuel certification, and Marine Fuel Quality checks. More recently, the Group expanded its fuel and Oil Condition Monitoring services. It has set up laboratories in clients’ facilities (laboratory outsourcing), thus helping clients reallocate investments towards other topics such as decarbonization;
• ●The business operates globally but is managed from hubs in Houston, London, Rotterdam, Dubai, and Singapore. These hubs are backed by a wide-reaching network, including over 175 offices and laboratories.

In line with BV Green Line, the Group offers solutions for a fast-evolving industry. It supports initiatives like Hydrogen, Carbon 14 Biogenic Analysis, and Plastic to Oil. By providing dedicated Renewables/Circular Economy and R&D-driven services, it helps clients in their journey towards energy transition and carbon neutrality.

The Metals & Minerals segment offers diverse inspection and laboratory testing services for the exploration, mining, and metal trading sectors. This includes precious metals, coal, iron ore, base metals, and energy transition materials like lithium. It also covers processed products and recycled metal flows. These services can be split into two market segments:

The Group offers lab testing services, such as sample preparation, geoanalytical, metallurgy, and mineralogy testing. These provide mining firms important information throughout their operations:

• ●In the exploration phase, the long-term outlook for key metal prices supports Bureau Veritas' client activities. Positive forecasts drive client investments in exploration and mine development. These investments rely heavily on extensive laboratory testing data.
• ●In the production phase, many miners entrust their regular testing to Bureau Veritas. This often involves on-site sampling and testing for quick resource grade control feedback. Specialized metallurgical tests are also crucial, mainly provided from the Group’s key laboratories in Australia and Chile.

Bureau Veritas inspects and tests to verify and certify the quantity and quality of mineral shipments, from their mining origins to their integration into products. Sometimes, this extends to the metal’s recycling phase.

This business correlates with the physical flow of trade commodities and the transaction's perceived risk. Through its services, Bureau Veritas provides precise estimates of payable and penalty contents, helping clients determine commercial value. Key clients include traders, miners, smelters, power generators, banks, financers, and recyclers.

Bureau Veritas operates in global trading hotspots and main company bases. Primary hubs are in the UK, Singapore, Shanghai, Mumbai, Dubai, Perth, Santiago, Lima, and Houston. These hubs also receive support from other strategic points in Rotterdam, Geneva, Jakarta, and Johannesburg.

Bureau Veritas is a top player in the Agri-Food sector, offering inspection and laboratory testing services. The value chain serves ranges from agricultural and marine harvesting to food manufacturing, retail and catering, and ends with waste and packaging impact minimization. This planet-to-planet approach is a unique differentiator for the Group’s customers.

The Testing, Inspection, and Certification (TIC) market outlook for Agri-Food is favorable, sustained by population rise, urbanization and more stringent regulation growth. Heightened consumer expectations for improved quality, sustainability and traceability in the supply chain also drive the momentum.

The services can be split into three categories:

Bureau Veritas offers services from the seed planting phase through the growth and harvest stages of crops. Positioned in major global farming areas, the Group provides clients with pivotal data. This information contributes to better farming techniques and encourages sustainable practices, such as deforestation-free and local production strategies, leading to an effective agricultural supply chain.

A modern agricultural shift is underway, marked by new seeds, advanced crop protection, and digital integration. This revolution is maximizing the output of existing farmland. Bureau Veritas employs drone and satellite imagery, combined with on-ground surveys, to map cultivated areas. This information is shared with farmers, traders, banks, insurers, and suppliers, enabling them to optimize their product performance and investment returns.

Agri-commodities encompass grains, oils, cotton, feeds, and other by-products. Bureau Veritas oversees these from source to endpoint.

• ●Inspection services maximize control over everything from inland production and storage to vessel loading and discharge supervision.
• ●Grading and laboratory analyses determine product quality and phytosanitary condition.
• ●Trade related inspection and testing services verify and certify the quantity and quality of agri commodities as they move through the supply chain.

These services offer crucial data to clients, aiding traders, buyers, banks, and financiers in establishing the commercial value of the products.

Bureau Veritas is active in global trade hotspots. The Group operates from main hubs such as London, Paris, Geneva, Sao Paulo, Singapore, Houston and Shanghai. These hubs also get support from key sites in Rotterdam and Dubai.

Key tests include veterinary drug residues, pesticides, heavy metals, contaminants, nutritional testing, allergens, GMOs, and species identification. They also cover microbiological, chemical, and environmental evaluations for varied food matrices:

• ●Bureau Veritas' team of food safety experts conducts visual inspections of finished products for quality and quantity assurance, to ensure they are safe and of appropriate standard.
• ●The Group also oversees food safety and brand standards for large retailers and food service networks.

Bureau Veritas offers a range of solutions through its Government services business.

To facilitate international trade, the Group verifies the conformity and quantity of merchandise (finished products, equipment, commodities, etc.). Its services are intended for different stakeholders, including governments, exporters, banks and international organizations.

The Group also offers value assessment expertise, ensuring correct import tax. Its inspection services – using X-ray scanners – help combat illegal imports and terrorism. Bureau Veritas also verifies the conformity of imported goods to ensure that they comply with applicable standards, rules and regulations. These services help combat unfair competition and counterfeit or poor quality products, and represent the majority of business and revenue in the Government services segment.

The Verigates client portal helps trade operators to confidentially track inspections step by step through a secure web platform available around the clock.

Bureau Veritas also offers a diversified portfolio of Single Window services for logistics, customs and foreign trade. A secure digital platform facilitates transactions and product delivery. These solutions are designed to support customs, ports and all those involved in foreign trade.

Bureau Veritas is also active in public service delegation contracts, such as the theory test for driving license applicants in France. It also checks gas stations for metering and quality. Lastly, Bureau Veritas advises on projects funded by International Financial Institutions.

Since the 1980s, the expansion of world trade has increased demand for inspections and verifications. Due to the free trade rules issued by the World Trade Organization and lower customs duties, pre-shipment inspections have become less of a priority for governments. In contrast, verification-of-conformity services (of products with standards) are becoming increasingly important.

Future growth in this sector is based on destination inspections by scanner, verification of product conformity with standards, and other services designed to facilitate trade, including the national Single Window.

Bureau Veritas aids its industrial clients by performing checks and verifications on equipment, assets, and processes at all stages of an industrial facility's life, from the very early stage of conceptual, basic and detailed design, fabrication and procurement phases down to operational and decommissioning or dismantling phases. They mostly aim to ensure they meet client needs and follow both local and global norms and standards.

Bureau Veritas Industry division’s services are divided into four key areas:

• ●support for industrial projects in the development phase (Capex). This includes design review, risk and safety checks, studies, and reliability assessments as well as field activities at supplier and manufacturer locations and on-site;
• ●independent third-party assessment, certification or verification of equipment, facilities, and projects. This aligns with regional, national, and international regulations and standards;
• ●services intended for the production of assets or equipment, and asset integrity management during the operation phase (Opex). This aims to improve asset performance, reduce risk, and minimize costs. It involves regulatory or voluntary inspections and audits, asset management solutions, non-destructive testing, and measuring emissions;
• ●Health, Safety, and Environment (HSE) and sustainability services for industry, which encompass environmental monitoring, impact assessment, studies as well as training and personnel certification.

Bureau Veritas Industry offers services across various sectors. In 2023, they included notably:

• ●Oil & Gas: this sector, including exploration & production (on- & offshore), pipelines & terminals (including LNG), and refining & chemicals activities, made up about 33% of the divisional revenue.
• ●Power & Utilities: this includes nuclear, conventional, and renewable energies (especially offshore and onshore wind, solar and battery storage), urban gas supply, water systems, and waste management. It accounted for approximately 14% of revenue. The Group has a strong presence, offering services covering the full Capex lifecycle. It provides solutions ranging from site assessment and technical advisory services to owner engineering during the procurement and construction phases.
• ●Chemicals & Processing: for industries like cement and paper manufacturing.
• ●Manufacturing: covering equipment, machines, and modules.
• ●Raw Materials.
• ●Transportation & Logistics: this includes aeronautics, rail, terminals, port facilities, containers, and tanks.

Bureau Veritas provides services to a diverse array of industrial companies throughout the value chain. This includes asset owners and operators, engineering firms, EPC contractors, construction companies, as well as equipment manufacturers (OEMs) and their respective supply chains. The customer base comprises large international corporations with global operations, regional leaders across various sectors, and many small local firms within each country. This broad client base reflects Bureau Veritas' extensive reach and capability in serving different industry needs.

Bureau Veritas' Industry business operates worldwide. The Group is active in all major industrial countries, including:

• ●Europe: France, Italy, the United Kingdom, Germany, the Netherlands, Spain;
• ●Americas: the United States, Latin America;
• ●Asia Pacific: Australia, Japan, China;
• ●the Middle East.

Additionally, the group also operates in high growth potential areas like India, Africa, Southeast Asia, and the Caspian Sea countries.

The Testing, Inspection, and Certification (TIC) market for the industry is highly fragmented due to the variety of end markets. It features numerous local firms and a limited number of large global players. In 2023, Bureau Veritas considers itself the world's leading provider of industrial inspection and certification services, with a strong position in the hydrogen market and alternative energies like bio-fuels and e-fuels.

Key drivers for market growth identified by Bureau Veritas include:

• ●global efforts to combat climate change. The accelerated pace of energy transition and net-zero emission targets set by many countries have opened significant opportunities. These include renewable power generation (especially wind and solar), low carbon hydrogen (in transport and hard-to-abate industries), power grids, e-mobility, and CCUS (Carbon Capture, Utilization and Storage). Decarbonization efforts are also shifting Capex project backlogs towards Gas and LNG, as industrial and oil & gas sectors move towards low-carbon strategies. Methane emissions reduction from both upstream and downstream sectors is a very quickly growing field of opportunities;
• ●increase in industrial projects and new regions and industries. Significant investments in industrial facilities and infrastructure are still expected, particularly in high-potential economies. Most sectors, including chemicals, should benefit from this trend. New industries like high-speed rail and urban transport also present growth opportunities;

• ●opportunities with existing assets (Opex services). Amid tighter financial conditions, industrial players are looking to prolong the life and use of existing assets while controlling operating costs. This leads to control and inspection activities outsourcing and integrating more sensors and IoT devices, offering new service opportunities in the TIC industry;
• ●increasing and stricter regulations and standards. Increasingly complex regional and international regulations and the globalized supply chain complicate the operational environment for industrial firms and manufacturers;
• ●emphasis on safety, environmental risks, and sustainable development. These factors significantly impact a company's brand and reputation, emphasizing the importance of TIC services;
• ●new digital tools and technology solutions. The industry is moving towards predictive inspection and maintenance regimes, thanks to new technologies like sensors, drones, robotics, cloud-based platforms, automated data collection, and AI. This transition is expected to elevate industrial risk management and integrity assessment to a new level.

Bureau Veritas plans to capitalize on its leading position in the global market for inspection and asset management services to diversify its industry exposure. It also aims to increase its market share in Opex services. Key areas include:

• ●diversification into key markets. The Group has identified promising markets for growth, such as the decarbonization of the Energy sector (most notably renewables, low carbon hydrogen, power grids and methane emission reduction from hydrocarbon assets), Transport and Chemicals, and more generally Electromechanical equipment using advanced technologies;
• ●development of Opex services. Bureau Veritas is launching an initiative to expand such services, especially in the Oil & Gas, Power & Utilities, and Chemicals sectors. The aim is to enhance the recurring nature of its business;
• ●using the Capex/Opex model. The Group plans to continue employing and replicating its successful Capex/Opex model in various businesses. Key account management will play a pivotal role in increasing market share with existing clients;
• ●new services in digital asset management. Introducing services related to digital asset management is expected to help Bureau Veritas capture recurring business and secure long-term client relationships;
• ●adapting to trends in the Automotive market. The automotive sector is undergoing significant changes, including the shift of production and consumption to emerging countries and the move towards "smart" cars and electric technologies. These trends are creating new demand for TIC services. Over the past six years, Bureau Veritas has established a strong presence in supply chain services, electronics, and connectivity. The Group aims to leverage these areas of expertise.

The Group has enhanced its sustainability-focused industry services. The Covid-19 pandemic taught organizations about global supply chain resilience. Many companies now seek to reassess their supply chains for sustainability. This involves using field data to ensure thorough assessment and decision-making.

After COP 21, many companies, across the entire value chain are intensifying their efforts towards net carbon neutrality and sustainability. Bureau Veritas provides comprehensive services supporting this transition towards renewables and alternative energies. These projects allow clients to meet their decarbonization and sustainability goals:

• ●onshore and offshore wind lifecycle solutions;
• ●solar power, from development to management;
• ●power grid stability and renewables integration;
• ●hydrogen value chain solutions;
• ●e-mobility and Power-to-X solutions.

Companies in all sectors aim to positively impact climate change and environmental protection. Developing efficient plans and measuring carbon footprints are key steps towards a carbon-neutral future. Bureau Veritas' expertise and technology knowledge helps clients in assessing, monitoring, quantifying, and limiting emissions. Since 2021, Bureau Veritas offers a portfolio called "Achieving Net Zero" for this purpose, which includes:

• ●monitoring carbon footprints;
• ●developing carbon reduction strategies;
• ●solutions for net-zero emissions;
• ●verifying energy savings;
• ●certifying carbon emission savings;
• ●controlling industrial environments;
• ●testing and controlling emissions.

Bureau Veritas offers services in Buildings & Infrastructure covering the asset's life. These services apply to new construction projects and existing assets. The Group specializes in two main areas:

• ●"In-Service Inspection, Monitoring & Audit" represents about 46% of the division's revenue. It focuses on the periodic inspections that laws require for various equipment or assets. It also offers tests, diagnoses, and monitoring services related to the health and safety of building occupants, and on asset management solutions to enhance property management;
• ●"Construction services" represents about 54% of the division's revenue. The Group provides independent technical assistance, control, and supervision at the planning, design, construction, and operation stages, as well as project management assistance.

Bureau Veritas provides independent assistance to clients, asset owners and operators when operating their real estate assets. It offers a range of services to enhance the quality, safety, performance and regulatory compliance of buildings and infrastructure, guided by top international practices. In-Service Inspection, Monitoring & Audit services are recurring because regulations and conditions change over time. As a result, most of the Group’s business comes from multi-year or annually renewed year over year contracts.

Bureau Veritas designs a suite of services tailored to client needs and their specific market. This includes local regulations and the operating and maintenance practices. Inspection, testing, critical data analysis are carried out using online reporting tools to perform these services. Its global network has an expertise in areas like:

• ●structure and envelope;
• ●electrics, air conditioning, heating;
• ●fire safety;
• ●elevators and lifting equipment;
• ●pressure equipment;
• ●indoor air/water quality;
• ●acoustics.

Services apply to all building and facility types. This includes:

• ●commercial buildings, like offices, hotels, hospitals, educational facilities, retail, logistics warehouses, industrial buildings, and multipurpose complexes;
• ●residential buildings;
• ●public buildings;
• ●sports and leisure facilities.

They also cover infrastructure inspections such as roads, railways, airports, ports, hydraulic systems, telecom, and urban areas.

Bureau Veritas operates mainly in mature countries (France, the UK, Spain, the US, and Japan). It has also developed an important presence in high-potential markets (China, Brazil, India, the United Arab Emirates, and Saudi Arabia). The Group believes that it has a number of advantages that have enabled it to carve out a position as global leader of the In-Service Inspection, Monitoring & Audit market:

• ●comprehensive services. Bureau Veritas offers a wide range of mandatory and voluntary inspection services to both local and international clients. This capability comes from its extensive geographic coverage and the varied technical capabilities of its local teams;
• ●involvement in construction. Being part of the construction phase of assets ideally positions the Group for subsequent inspection services;
• ●unmatched technical expertise. The Group uses an advanced integrated suite of methodological tools and technologies. This approach raises the quality of services offered to clients;
• ●utilization of historical data. Bureau Veritas’ leading position allows it to access historical data and statistics. This information is used to enhance collective knowledge;
• ●expert analysis for transactions. The Group provides expert opinions for the analysis of assets during acquisition, sale, and leaseback processes, known as Technical Due Diligence.

The expansion of the global market for In-Service Inspection, Monitoring & Audit is due to several factors:

• ●global real estate growth;
• ●high-potential market expansion, in which the rise of the middle classes has led to higher expectations for quality of life and building performance;
• ●new technology development for buildings, facilities and their operations;
• ●outsourcing by public authorities of mandatory building and facility inspections.

• ●The Group has established a strong network in key high-growth countries.
• ●Its presence development helps supports the international growth of key accounts and offers solutions tailored to local markets.

• ●Bureau Veritas is involved in projects needing data processing capabilities and new systems for collecting information via sensors and IoT.
• ●The Group has upgraded its tools for knowledge sharing, technical support, and connected tablet reporting. These tools are for use by both its technicians and clients, making data accessible online and integrating it with maintenance management tools.

• ●Optimizing the service portfolio and implementing "lean" management has enhanced service quality and profitability in key countries.
• ●The goal is to continue these efforts and apply these best practices globally.

Bureau Veritas' mission is to offer independent assistance to clients like supervisory authorities, developers, investors, architects, engineers, and construction firms. It assists these clients in achieving their project objectives in quality, safety, and performance while complying with regulations and top international standards.

The Group tailors its services to client needs, considering project development, local regulations, and design and construction techniques. It combines design review, testing techniques for production and pre-production phases, and the best tools for calculation, supervision, and project management.

Bureau Veritas has a global network of experts in various infrastructure and building segments. These experts have high professional experience in many technical fields, including:

• ●geotechnics;
• ●foundations, facades;
• ●cement, asphalt, steel, wood and mixed woods;
• ●seismology, vibration and vulnerability analysis;
• ●fire safety;
• ●waterproofing;
• ●air conditioning, heating, electrics and elevators.

The service portfolio covers all building and infrastructure types, especially commercial, residential, and public buildings, as well as road, rail, port, airport, hydraulic, and telecom infrastructure, plus sports and leisure facilities.

The Group intervenes in mature countries like France, the US, Spain, the UK, and Japan, and has expanded into high-potential markets such as China, India, Brazil, Mexico, Singapore, the United Arab Emirates, Saudi Arabia, and several African countries.

Although local by definition, compliance assessment for the construction market reflects certain key global trends including:

• ●increasing urbanization of high-potential countries, leading to the emergence of “mega cities” and major infrastructure needs;
• ●development of middle classes in high-potential countries, resulting in more demanding requirements in terms of quality of life and the performance of buildings and facilities;
• ●stricter sustainable development requirements in mature economies;
• ●regulatory changes;
• ●new construction methods, including Building Information Modeling (BIM), prefabrication and increased automation of construction processes.

To reduce exposure to the cyclical nature of construction markets, the Group balances its focus between mature and high-potential countries. It has also developed complementary asset management services like building and infrastructure inspection and monitoring, technical and environmental audits, energy audits, and assistance in obtaining “green” building certification. This approach has helped lessen the impact of the construction crisis in Europe and in China.

To diversify its geographical exposure, Bureau Veritas has made several acquisitions in the past decade, particularly in Asia with a focus on China, North America, and Latin America. These acquisitions cover various market segments, including infrastructure, commercial buildings, and buildings in operation. Over time, the Group has built a strong network in key high-growth countries, focusing on regulated businesses and project management needs.

The main acquisitions spanned different regions (China, Brazil, Mexico, the United States, France and Australia) and activities. These include mandatory and technical supervision, project management assistance, building commissioning, operational risk management for data center facilities, mandatory property compliance services, consulting for white certificate-eligible projects, and construction management for transportation infrastructure. In China, the Group’s exposure is solely focused on the infrastructure market.

Bureau Veritas has evolved its service portfolio to meet new client needs, especially in emerging technologies. The Group is involved in a number of projects designed using Building Information Modeling (BIM) systems in Europe, China, and Latin America. It is adapting its services and internal tools to this collaborative design approach. For example:

• ●In infrastructure asset management services, the Group provides integrated technical assistance to one of Brazil's largest highway concessionaires. This service includes monitoring and controlling the status of various highway infrastructure.
• ●Bureau Veritas’ digital project management assistance solution for large construction projects, PRIManager, is being rolled out in key geographies of the Group’s network.

Global demand from owners and concessionaires of buildings (commercial, residential) and infrastructure (roads, rail, airports, ports) for services related to energy efficiency, carbon footprint monitoring, and sustainability is increasing. Bureau Veritas responds by continuously developing new audit and inspection frameworks to meet client needs and regulatory compliance:

• ●Green building labels:
  • ●Bureau Veritas offers consulting for popular schemes like LEED, BREEAM, HQE, 3-STARS, CEEQUAL, EDGE, etc. These schemes apply to new and existing buildings or infrastructure,
  • ●A partnership with the US Green Building Council (USGBC), the founder of the LEED™ certification system, enables Bureau Veritas to conduct LEED Certification in China and Brazil.
• ●Environmental services:
  • ●The Group's expert network covers all environmental aspects: air pollution, noise, wastewater, solid waste, biodiversity, social impact;
  • ●Bureau Veritas' environmental services span the entire value chain, from preliminary environmental impact assessments, green construction site monitoring, to environmental performance monitoring during operations.
• ●Sustainability solutions in Buildings and Infrastructure:
  • ●Bureau Veritas aims to shape trust and transparency when operationalizing its clients’ sustainability journey. The main focus revolves around confidence in the communication with their main stakeholders and ensuring that they achieve their intended goals;
  • ●The Group supports its clients in the roll-out of their net zero and sustainability agenda. It helps them mitigate their risks, to better adapt to climate change. This encapsulates ensuring compliance, brand protection, and performance enhancement;
  • ●Bureau Veritas’ global presence allows the management of complex Building & Infrastructure projects, including multiple sites.

By certifying that the management systems implemented by organizations comply with precise standards and benchmarks, Bureau Veritas creates the trust needed for any economic exchange. The depth of the Group’s portfolio enables it to offer its clients a wide variety of possible certifications. These services are based on national or international standards, or on private standards set by third-party organizations or by clients themselves. Bureau Veritas operates in a wide range of fields:

• ●Certification of QHSE management systems: Bureau Veritas ensures that systems comply with Quality (ISO 9001), Health & Safety (ISO 45001) and Environmental (ISO 14001) standards.
• ●Industry certifications: Bureau Veritas is accredited as a certification body for standards specific to certain industrial sectors, such as automotive (IATF), aeronautics (EN 9100), and agri-food (BRCGS, IFS, FSSC 22000, etc.). In France, Bureau Veritas also provides label certification services in the Agri-Food sector, e.g., Label Rouge, Agriculture Biologique (AB) and Origine France Garantie.
• ●Certification and audit of sustainable development practices: environment, governance, social practices, working conditions, forest management, carbon auditing, and sustainability in the broadest sense, are now major concerns for many companies. Bureau Veritas provides a wide range of audit and certification services in these areas.
• ●Cybersecurity and enterprise risk management: data security is paramount in the digital age. Bureau Veritas’ services include certifications to confirm good information security, data protection, business continuity and much more, according to recognized standards.
• ●Customized assignments: some companies have specific needs or internal standards they wish to have certified in their distribution network or supplier management systems. Bureau Veritas can offer customized second-party audits to meet these needs.
• ●Supply chain management: Bureau Veritas helps large companies manage their ESG roadmap and assess the performance of their supply chain, notably through its Clarity solution.
• ●Training courses: Bureau Veritas trains company personnel in various fields, including QHSE, environment and business continuity. These courses are accredited by CQI/IRCA (Chartered Quality Institute – International Register of Certificated Auditors).

The certification market is growing steadily in line with growth in the world economy. Certification covers different sectors and is a crucial step to access some international markets.

Most contracts run on a three-year cycle, increasing the resilient nature of this business. An initial audit generally takes place in the first year, followed by annual or semi-annual surveillance audits over the remaining period. At the end of the three-year period, the certification process is generally renewed by the client. The client attrition rate on these three-year missions is low (less than 10%) and mostly reflects clients who have discontinued their business or who operate in markets for which certification is no longer required.

The Group has a huge, diversified client portfolio. It currently manages more than 150,000 active certificates for three types of clients:

• ●Large international groups, who require certification of their management systems covering all of their sites worldwide.
• ●Large domestic companies seeking to improve their performance and reputation by certifying their management systems.
• ●Small and medium-sized companies for which certification may be a condition of access to export, public procurement, and high-volume markets.

The Certification portfolio is very diversified, with little exposure to large clients. The largest client represents less than 1% of the total revenue for this business.

Bureau Veritas is a front-ranking player in certification. Alongside other global companies, the Group operates in a market that remains highly fragmented, with approximately two-thirds of the world’s certification business conducted by local and/or small firms.

• ●A highly diverse portfolio of products and services, meeting the needs of major business sectors and providing customized solutions to companies wishing to improve their performance.
• ●A global, coherent and geographically diverse network of auditors, allowing Bureau Veritas to play a major role in local markets and to support its clients with worldwide audits, where it can provide centralized oversight of the audit program and conduct audits locally.
• ●Expertise recognized by over 70 national and international accreditation bodies.
• ●Bureau Veritas Certification, which provides simplified management of certification contracts and the most complex delivery projects (numerous sites, multiple standards, global accreditations, etc.).
• ●Efficient reporting tools, enabling clients to consult audit findings for their sites across the globe and to also monitor key indicators such as the number of audits already planned, incidents of non-compliance, certificates issued and invoicing.
• ●A world-famous brand symbolizing expertise and professionalism, enabling clients to enhance the image of their companies and gain the confidence of their own stakeholders.

Bureau Veritas Certification has recently received a number of major awards for the quality and execution of its work:

• ●In February 2022, Bureau Veritas was named “European Certification Body of the Year” by the BRC Global Standard, issued by the Global Food Safety Initiative. This program is used by the entire agri-food industry, from distributors and restaurateurs to major food manufacturers.

• ●In October 2023, Bureau Veritas was named a “Gold level” finalist in the International Automotive Oversight Body (IAOB) “Certification Body of the Year”" program, in recognition of the quality of service and professionalism of its teams.

The certification market is fragmented, although there is a trend towards consolidation, as large companies limit the number of certification partners in order to simplify and harmonize their processes. This also enables them to optimize management of their operations, better assimilate standards and reduce audit costs. Leveraging its global footprint, the Bureau Veritas Group is ideally placed to address these new market trends. Its aim is to step up the development of business with major international groups.

New products have been added to Bureau Veritas’ current offering in several important areas:

• ●Risk management: the Group is expanding its solutions for businesses, focusing on cybersecurity, business continuity and corruption prevention.
• ●Digital: new information security and data protection solutions are now available, in line with the European GDPR and the ISO 27701:2019 standard on privacy information management. The 2021 acquisition of Secura, a Dutch company specialized in cybersecurity, enabled Bureau Veritas to deepen and expand its expertise. In particular, the Group helps its clients improve digital security and comply with new regulations.
• ●Training: Bureau Veritas focuses on digitalization in the field of training, offering online training solutions such as a virtual classroom, e-learning modules and hybrid skills-building training programs.
• ●Automotive: Bureau Veritas provides TISAX (Trusted Information Security Assessment Exchange) Certification, which was created at the initiative of the German Association of the Automotive Industry (VDA). This information security management system is perfectly adapted to industry requirements and is intended to provide a secure data exchange platform for automotive companies.

Bureau Veritas offers Corporate Social Responsibility and sustainability certification services. These help companies verify their energy efficiency, carbon footprint, greenhouse gas emissions and Corporate Social Responsibility commitments. The Group provides certification solutions for renewables, bioenergy and energy management systems. It also verifies companies’ calculations of their greenhouse gas emissions.

To assist companies wishing to adopt a responsible supply chain, Bureau Veritas has a comprehensive range of services covering sectors such as agri-food, forestry, metals and minerals, and biomaterials. Thanks to its international reach, Bureau Veritas can support its clients in ESG audits of supply chains.

Social practices, governance, diversity and inclusion are also of major importance to Bureau Veritas, which is training more and more auditors to meet these challenges, also central to a growing number of organizations.

Diversification of the Certification division’s portfolio continues apace, notably driven by the development of its services for sustainability and cybersecurity. The Group’s strategy is to continue along this path, by developing new services based on critical issues for its clients, such as water, waste, recycling, ESG due diligence, non-financial reporting and carbon.

The Group provides quality management solutions and compliance assessment services for consumer products. These services can be provided throughout the production or supply chain. Inspections, laboratory testing and product certification, as well as production site and social responsibility audits, are provided to retailers, vendors and manufacturers of consumer products.

The aim is to ensure that the products put on the market comply with regulatory safety standards or with voluntary or industry standards relative to quality and performance. The main product categories include:

• ●softlines: clothing, leather goods, footwear;
• ●hardlines: furniture, sporting and leisure goods, office equipment and supplies, and toys;
• ●electrical products and electronics, such as:
  • ●household appliances,
  • ●wireless and smart devices: tablets, smartphones, applications and connected objects,
  • ●automotive: connectivity, equipment, components and on-board systems.

The Group provides services:

• ●during a product’s design and development stage: verification of product performance, advice on regulations and standards applicable in all countries across the globe, assistance in defining a quality assurance program;
• ●at the sourcing stage for materials and components: inspections and quality control tests for materials and components used in manufacturing the product;
• ●at the manufacturing stage: inspections and tests to assess regulatory compliance and product performance, as well as compliance of product packaging; factory audits with respect to quality systems and Corporate Social Responsibility;
• ●at the distribution stage: tests and assessment of compliance with specifications and comparative tests with equivalent products.

Usually, the Group is accredited as an “approved supplier” by a client, retailer or brand as one of two or three inspection and testing companies. In this situation, manufacturers and vendors can choose which company will inspect and test their products.

Bureau Veritas’ strategy of diversifying its client base has helped to reduce its dependence on traditional key accounts and increase its penetration of small and medium-sized clients in the mass market. Historically, most of the revenue from this business was generated by some 100 key accounts. Today, the 20 largest clients represent 25% of the revenue for this business.

The Group provides its services across the globe, but mainly in the United States and Europe for products sourced from Asia. Retailers in emerging markets such as Latin America and India are growing fast. The Group has recently been expanding its business with local clients and manufacturers in Asia.

In the United States, Bureau Veritas’ strong presence in the large retail market is partly the result of its successful integration of two US companies acquired in the early 2000s.

In 2022, the Group further diversified its footprint in the United States with the acquisitions of ATL – Advanced Testing Laboratory based in Cincinnati (Ohio) and Galbraith Laboratories, Inc. based in Knoxville (Tennessee). These acquisitions strengthen Bureau Veritas’ position in the consumer healthcare and industrial chemicals supply chains, better connecting existing services to support upstream research and product development.

Business in Europe has grown significantly over the past few years. The Group’s key markets are mainly France, Germany and Italy.

Bureau Veritas continues to expand its activities and offering in Europe to reinforce its client base and optimize its position in the textiles and hardlines segments. For example, in 2022 the Group acquired Spain’s AMS Fashion, an expert in sustainability, quality and conformity services for the fashion industry, including organic/vegan content verification and durability testing.

The Group believes that the consumer goods market will benefit from the following factors over the next few years:

• ●the development of new products and technologies that will have to be tested;
• ●shorter product lifecycles and time-to-market, as demonstrated by the swift adoption of wireless/SmartWorld technologies and their emergence in all types of products;
• ●the continuing tendency of retailers to outsource quality control and product compliance assessment;
• ●stricter standards and regulations regarding health, safety, and environmental protection;
• ●the emergence of new requirements linked to wireless integration systems in terms of connectivity, interoperability, safety and quality of service;
• ●growing demand from middle-class consumers in emerging countries for safer, higher-quality products;
• ●the gradual opening up of previously unexploited markets (India and China) to foreign players;
• ●the migration of manufacturing facilities to South Asia (Bangladesh, India, Pakistan and Sri Lanka) and South East Asia (Cambodia, Indonesia, Malaysia, Myanmar, the Philippines and Vietnam);
• ●the relocation of near-shoring/near-sourcing production capacities closer to consumer markets (Mexico, North Africa, Turkey, Eastern Europe, etc.) in order to reduce supply chain risks.

In order to take advantage of these trends, the Group has accelerated diversification of its Consumer Products Services division, a process begun in the early 2020s, focusing on:

• ●growing in domestic markets in China, South and South East Asia, and Europe;
• ●intensifying efforts to develop its services platform for technology products (electrical and electronic, wireless technologies, Internet of Things, connectivity and data security);
• ●developing the client base, in particular to become less dependent on American clients and to develop a presence among online retailers.

The Group is one of three world leaders in consumer products testing, with leadership positions in textiles and clothing as well as hardlines, including toys. More recently, Bureau Veritas has strengthened its positions in the Electrical & Electronics segment, more specifically in SmartWorld and wireless testing (mobiles, connected devices). It is also active in the automotive sector.

The Group believes that its “BV OneSource” service offering is a unique and innovative solution for clients seeking an integrated solution for global supply chain quality and information management. BV OneSource offers real-time tracking of the status of tests and inspections conducted on products and audits of facilities, as well as immediate access to applicable regulations and reports. This digital platform is an analytical tool that helps clients manage their risks, protect their brand and access better information on their sourcing.

Innovation remains one of the key factors driving growth. The SmartWorld (connected devices) initiative was launched to address growth opportunities resulting from the number of connected devices, regarding equipment testing, new connected services, and data security. Since 2013, the Group has gradually strengthened its presence on this market through several acquisitions.

For several years now, the Group has also invested in 5G to support business development in wireless technologies and their emergence in all types of products of the Internet of Things, in particular in the areas of connectivity and mobility. The Group now has test platforms in Asia (China, Taiwan and South Korea), as well as capacity in California in the United States.

Major trends in the automotive and new mobility markets are creating additional needs for TIC services:

• ●the relocation of production and consumption to emerging countries;
• ●the fundamental shift to smart cars using electric technologies.

Through acquisitions and internal investments, Bureau Veritas has established technology testing laboratories in Asia, Europe and North America. This puts the Group in good stead to help automotive suppliers meet their compliance and performance requirements for on-board electronics and connected vehicles. The Group provides solutions enabling testing or certification of various new features such as on-board connectivity, sensor safety, user experience, telemetry and infotainment systems, cybersecurity and data privacy.

Lastly, as the market for cars and new mobilities using electric technologies continues to grow, Bureau Veritas also offers battery and electrical system (performance and safety) testing solutions.

The Consumer Products Services division is rolling out an offer as part of Bureau Veritas’ Green Line of services and solutions. The Group partners with organizations to help them execute their sustainability strategies with trust and transparency. By promoting more ethical and ecological practices in the supply chain, it responds to growing market demand for responsible consumption.

In 2023 for example, the Group acquired Impactiva Group, a leader in quality assurance for the footwear and apparel industry in Asia, Europe and Africa. This company helps to guarantee the highest levels of quality in production, optimize the use of raw materials and minimize waste. This transaction increases Bureau Veritas’ capacity to deliver supply chain services in line with economic, quality and sustainability objectives.

Through its various services, Bureau Veritas helps its clients develop their strategies for all products, offering both testing services and inspection and audit/certification solutions.

Bureau Veritas offers a range of efficient resource management services to its clients such as:

• ●assistance in managing chemical waste (wastewater testing, chemical and environmental audits and atmospheric emissions assessments);
• ●product lifecycle and eco-design analysis.

The Group awards the certified “Footprint Progress” label to products meeting eco-design credentials, thereby providing consumers with proof of a product’s environmental benefits through legible, visible markings.

Consumers want more visibility as to a product’s origin and durability. This is the case in the textile industry for example, where higher quality is gaining currency over “fast fashion”. Regulations in force in certain countries, including France since 2021, encourage the repair and reuse of a product rather than its replacement.

Bureau Veritas offers its clients product repairability analyses and durability testing to meet these requirements.

Respect for human and labor rights, along with ethical principles, has gained traction with brands, regulators and also end consumers. Many countries have introduced stricter regulations, for example, to fight against modern slavery. Increased demand for inspection services along with social and safety audits highlights a shift in collective awareness and regulatory requirements in terms of Corporate Social Responsibility.

These services are designed to ensure supply chain compliance with applicable regulations, as well as the Corporate Social Responsibility commitments made by brands.

To conduct its business, the Group has numerous Licenses To Operate - LTO (hereafter “Authorizations”), which vary depending on the country or business concerned: accreditations, approvals, delegations of authority, official recognition, certifications or listings. These Authorizations may be issued by national governments, public or private authorities, and national or international organizations, as appropriate.

The Group is a certified founding member of the International Association of Classification Societies (IACS), which brings together the 11 largest international classification societies. At European level, Bureau Veritas is a “recognized organization” under the European Regulation on classification societies and a “notified body” under the European Directive on marine equipment. Bureau Veritas currently holds more than 150 delegations of authority on behalf of national maritime authorities.

The Group has more than 150 accreditations issued by national and international bodies, including:

• ●in Europe: COFRAC (France), ENAC (Spain), UKAS and CQI (United Kingdom), ACCREDIA (Italy), DAkkS (Germany), RVA (Netherlands), BELAC (Belgium) and DANAK (Denmark);
• ●in the Americas: ANSI/ANAB (United States), INMETRO (Brazil) and INN (Chile);
• ●in the Asia-Pacific region: JAS-ANZ and NATA (Australia and New Zealand).

These accreditations cover both its management system, product and service certification solutions and its inspection and testing activities.

The Group is also a “notified body” under European directives and holds more than 300 approvals, certifications, official recognition and authorizations issued mainly by government organizations. The main international approvals concern pressure equipment, transportation equipment for hazardous goods, fire safety systems, electrical installations, and environmental measures. Some are also designed to promote health and safety in the workplace.

All such accreditations and approvals are regularly renewed upon expiration.

Bureau Veritas is affiliated with numerous industry groups, including the TIC Council, AOAC, ACS, API, ASQ, ASSE, ASTM International, NCWM, AFPM, EI, and ISO. The Group actively participates in ASTM International, EI, and ISO technical committees, especially those on hydrogen and carbon capture.

The Group has US customs approval and holds AASHTO accreditation for asphalt lab testing and inspections. Certain laboratories are recognized by the LME, LBMA, and LPPM for various roles in metals and minerals.

For agri-commodities, Bureau Veritas is accredited by FOSFA, GAFTA, ICA, SAL, and FCC, among other relevant bodies globally.

Many of the Group’s labs possess ISO 17025 accreditation from numerous entities, such as NATA, SCC, A2LA, SINGLAS, UKAS, INN, and CNAS. In the US, most of the Group’s labs are EPA-registered for fuel testing.

Regarding government contracts, Bureau Veritas had around 30 as of December 31, 2023. Many of its labs are globally approved for TML testing. For PSI and VOC tasks, it is ISO 17020-accredited by COFRAC.

The Group holds the following principal authorizations and accreditations: American Association for Laboratory Accreditation (A2LA), French Accreditation Committee (COFRAC), Zentralstelle der Länder für Sicherheitstechnik (ZLS), Hong Kong Laboratory Accreditation Scheme (HOKLAS), IEC System for Conformity Testing and Certification of Electrical Equipment (IECEE), National Environmental Laboratory Accreditation Program (NELAP), Singapore Laboratory Accreditation Scheme (SINGLAS), United Kingdom Accreditation Services (UKAS), China National Laboratory Accreditation for Conformity Assessment (CNAS), Deutsche Akkreditierungsstelle Chemie GmbH (DACH), Deutsche Akkreditierungsstelle GmbH (DAkkS), AKS Hannover, Japan Accreditation Board (JAB), National Accreditation Board for Testing and Calibration Laboratories (NABL), Pakistan National Accreditation Council (PNAC), Laboratory Accreditation Correlation and Evaluation (LACE), Komite Akreditasi Nasional (KAN), Thai Industrial Standards Institute (TISI), Vietnam Laboratory Accreditation Scheme (VILAS), CTIA Authorized Testing Laboratory (CATL), PCS Type Certification Review Board (PTCRB), Global Certification Forum (GCF), Bluetooth Qualification Test Facility (BQTF), Bluetooth Qualification Expert (BQE), NFC Forum Authorized Test Laboratory, WiFi Alliance Authorized Test Laboratory, Federal Communications Commission (FCC), Industry Canada (IC), Car Connectivity Consortium (CCC), OmniAir Authorized Test Laboratory (OATL), LoRa Alliance Authorized Test House (ATH), Sigfox Accredited Test House, Thread Authorized Test Lab, Wireless Power Consortium for Qi Certification (Qi), EMVCo Service Provider, Visa Recognized Testing Laboratory, Brazilian National Telecommunications Agency (ANATEL) and Brazilian National Institute of Metrology, Quality and Technology (INMETRO).

Each of the Group’s businesses has put in place a dedicated organization for managing and monitoring these authorizations on a centralized basis, and the authorizations are subject to regular audits by the authorities concerned. In the case of Commodities, authorizations are managed and monitored at the legal entity level.

Obtaining, renewing and maintaining these authorizations must be justified by qualitative and quantitative criteria relative in particular to the independence, impartiality and professional capabilities of the beneficiaries. These include proof of:

• ●experience in the field concerned;
• ●the existence of trained, competent and qualified technical personnel, technical resources and methodologies;
• ●a quality management system that complies with applicable standards.

These standards include in particular ISO/IEC 17020 for inspection companies, ISO/IEC 17021 for management system certification bodies, ISO/IEC 17065 for products and services certification, ISO/IEC 17024 for personnel certification, and those relating to testing and calibration laboratories (ISO/IEC 17025).

Bureau Veritas is actively engaged in research and innovation to bolster its market positioning and explore new opportunities. The Group’s major initiatives include:

• ●Technological partnerships: the Group partners with manufacturers and start-ups to jointly develop innovative solutions. These partnerships can result in the implementation of cutting-edge technologies such as artificial intelligence (AI) and blockchain.
• ●Strategic alliances: agreements are signed with various companies focused on specific technologies and segments. In 2023, for example, Bureau Veritas entered into a partnership with a US maritime software company (OrtbiMI) to develop joint digital solutions and facilitate their market launch. The aim is to help shipping companies in their digital transformation and decarbonization efforts.
• ●Cybersecurity: involvement in the work of the European Cyber Security Organisation underlines the importance of this issue, in line with the European Commission’s objectives.
• ●Collaborative projects: involvement in projects funded by institutions such as the Single Interministerial Fund and in European calls for projects underscores the Group’s commitment to large-scale initiatives. Bureau Veritas has joined CLEANHYPRO, for example. This project:
  • ●is a consortium of 28 partners from original equipment manufacturers (OEMs) and research and technology organizations,
  • ●is co-funded by the European Union, and its primary mission is to spearhead innovation in electrolysis technologies and materials. Bureau Veritas’ remit is to develop a quality label for electrolyzer batteries, offering transparency on technology and product quality. Product quality covers reliability, the effects of aging, efficiency and durability criteria;
• ●Hydrogen and renewable energies: by joining the Hydrogen Council and actively participating in ISO and IEC standardization committees, the Group is demonstrating its intention to support and shape the future of clean energies.
• ●Digitalization: the Group is aware of the need to transition to more digital offerings and is therefore stepping up efforts to develop new concepts such as future inspection/audit services.
• ●Continuous innovation: in light of fast-paced changes in the TIC market, the Group is constantly investing to adapt and meet emerging client needs. Bureau Veritas is resolutely forward-looking, harnessing a proactive approach to research and innovation to stay at the forefront of its industry. Initiatives include:
  • ●development of innovative artificial intelligence (AI) for new inspection techniques (shape recognition AI and 3D technologies) and for the use of technical rules and data (natural language-processing AI);
  • ●revamp of production tools to form a collaborative digital platform open to clients, leveraging product lifecycle management solutions (partnership with ARAS Innovator);
  • ●ongoing development of classification services to support the digitalization of maritime shipments through intelligent ratings, developed together with clients and digital solution suppliers.

The Group’s IT department has four main responsibilities:

• ●Defining the Group’s technological architecture. The department sets the standards for applications and infrastructure across all businesses and geographical areas;
• ●Selecting and managing integrated solutions for all Group units. These solutions include messaging, collaboration tools and various systems such as ERP finance, client management, Human Resources and production;
• ●Guaranteeing the availability and security of all of the Group’s infrastructures and solutions;
• ●Managing the Group’s overall relationship with its main suppliers of equipment, software, telecommunications and services.

The department is supported by six regional centers: North America, Latin America, Europe, France/Africa, Asia, and the Middle East/Pacific. These centers provide various services to the countries in their respective regions.

A Global Shared Service Center has also been set up in India to pool certain support processes. In 2023, operating expenses and running costs for the Group’s information systems represented 4% of the Group’s revenue.

Details on Bureau Veritas’ Non-Financial Statement (NFS) appear in the three following sections of this Universal Registration Document (URD):

• ●chapter 1 presents the Bureau Veritas Group and its business model;
• ●chapter 2, which describes the Group’s sustainability policies, is also known as the Sustainability Report;
• ●chapter 4 presents risk management.

Since 1828, Bureau Veritas has acted as trust maker between companies, governments and society. It is an independent, impartial guarantor of its clients’ word.

Bureau Veritas is a world leader in laboratory testing, inspection and certification services. Created in 1828, the Group has approximately 82,000 employees located in more than 1,600 offices and laboratories across the globe. Bureau Veritas helps its clients improve their performance by offering services and innovative solutions in order to ensure that their assets, products, infrastructure and processes meet standards and regulations in terms of quality, health and safety, environmental protection and social responsibility.

Bureau Veritas is a Business to Business to Society service company that contributes to positively transforming the world we live in. We work closely with our clients to address the critical challenges they face and to link these to the emerging aspirations of society. We work with companies to build and protect their reputations, supporting them as they forge the foundations of trust that are built to last.

Trust is the very foundation upon which relationships between citizens, public authorities, and companies are built. In today’s fast-changing world, this essential link is no longer a given.

Citizens and consumers are seeking out verifiable and verified information on how companies develop, produce and supply their goods and services. Decision makers across all organizations face the challenge of proving their CSR commitments in order to remain competitive and sustainable.

At Bureau Veritas, our work enables organizations to operate and innovate safely and perform better. Thanks to our recognized expertise, technical knowledge and worldwide presence, we support them by managing quality, safety, health and sustainability risks, to the benefit of society as a whole.

As a Business to Business to Society company, we believe that today more than ever, trust depends on evidence of responsible progress.

We bring more to the table than testing, inspection and certification. The work we do goes beyond verifying compliance and has a much wider impact.

We play a pivotal role in building and protecting companies’ reputations, supporting them as they forge the foundations of trust that are built to last.

Our mission: Shaping a World of Trust by ensuring Responsible Progress.

A Business to Business to Society company

Our employees serve our clients and are inspired by society; they make Bureau Veritas a Business to Business to Society service company that contributes to positively transforming the world we live in.

Ensuring responsible progress

Through our testing, inspection and certification services, we help our clients improve performance and minimize risk, while strengthening their brands.

We also help them to be more efficient, more methodical and more trustworthy in their journey towards a more sustainable business and a more responsible world.

Our testing and analysis services provide assurance that products and raw materials have the required properties.

We also make sure they comply with specifications, standards and regulations, by conducting laboratory and in-situ tests designed for the manufacturing and process industries concerned. Tests are performed across a wide network of laboratories all over the world. Our centers use state-of-the-art equipment and apply specialist industry expertise. They are strategically located in response to our clients’ needs, and for convenient access from major ports and manufacturing centers.

Our inspections involve on-site verification that products, services, assets and facilities meet specifications and operate as intended.

They cover a wide range of services designed to control quality, verify quantities and meet regulatory requirements. Our inspection services help companies have confidence in the reliability and integrity of their products, assets and systems.

As an independent third party and accredited certification body, we provide certification services to attest that management systems, services and personnel comply with specific standards.

Equipment and products can be certified to meet sector-specific or industry standards, international, local or voluntary standards, or manufacturer or client requirements. Certification enables companies to access new markets, strengthen their brands, or simply obtain a license to operate.

Like most large companies, Bureau Veritas has a robust CSR strategy. Yet Bureau Veritas’ commitment to Corporate Social Responsibility (CSR) is unique in its duality: on the one hand, the added value of its services and broad scope of CSR-related expertise; and on the other, the conviction and determination to pave the way towards responsible progress by acting itself as a corporate citizen aware of environmental and social issues.

Beyond compliance with regulations, Bureau Veritas is committed to supporting its clients in their sustainability journey and to meeting the expectations of consumers, employees and all of its stakeholders.

Owing to the nature of its services, Bureau Veritas has a direct and indirect impact on CSR issues:

• ●directly, in each of its businesses, entities, subsidiaries and regions;
• ●indirectly, by offering a broad range of services aimed at improving its clients’ impact on health and safety, security, environment, respect for human rights, and sustainability in the widest sense.

This helps prepare the way towards a sustainable future while serving the interests of its stakeholders. This view is echoed in the commitment to CSR made by the Chairman of Bureau Veritas’ Board of Directors and the Group’s Chief Executive Officer, as set out below.

Further details on the Group’s Environment, Social, Governance (ESG) commitments and policies can be found on the Sustainability pages of the Bureau Veritas website. They can also be accessed by clicking on the following link: https://group.bureauveritas.com/fr/groupe/batir-un-monde-meilleur/politiques

The scope of this Non-Financial Statement covers all Bureau Veritas activities. The scope is identical to that of the financial statements. The list of companies included in the scope of consolidation is presented in Note 37 of section 6.6 − Notes to the consolidated financial statements, of this Universal Registration Document, page 411.

All sustainability information relating to companies acquired in 2023 is included in this statement, except for environmental information, which will be included with a one-year lag in the 2024 Sustainability Report.

The statement covers the operations of Bureau Veritas. It includes upstream and downstream value chain information identified as material in the double materiality assessment of impacts, risks and opportunities.

The presentation and content of this report differ from previous years. They are developed from the requirements of the European Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).

The risk analysis presented in 2022 has been replaced by a double materiality assessment focusing on Bureau Veritas’ impact on people and the environment and on the financial risks and opportunities associated with each sustainability topic.

Greenhouse gas (GHG) emissions from the value chain (Scope 3) are estimated based on purchases made, to which emission factors are applied for each purchasing category.

Uncertainties can arise depending on the quality of the data calculated for the value chain (such as GHG emissions) or when projections are based on uncertain assumptions.

The data collection methodology is detailed in section 2.6.3 − Information compilation methodology, of this Universal Registration Document.

Since June 2023, the information required to calculate direct and indirect GHG emissions (Scopes 1 and 2) has been calculated for all Bureau Veritas sites (laboratories and offices). Before then, emissions were only calculated for large sites, such as laboratories with more than 25 employees and offices with more than 50 employees, while those from other sites were estimated.

To provide a more comprehensive and nuanced analysis, the methodology for calculating the gender pay gap was revised in 2023. The updated approach uses a weighted calculation and introduces a three-tier hierarchy to better reflect organizational structure and the importance of various factors. The three-level hierarchy includes weighting by Operating Group, by country and finally by salary band. This methodology ensures a more accurate and granular representation of the pay gap.

• ●Appointment of a new Chief Executive Officer.
• ●Appointment of a new Chairman of the Board of Directors.
• ●Appointment of a Lead Independent Director.
• ●Creation of a Board of Directors CSR Committee.
• ●All of the five indicators reported on a quarterly basis are now covered by reasonable assurance (see section 2.1.3.1 − Strategy, business model and value chain, of this Universal Registration Document).
• ●Review of the sustainability strategy.

Executive Management presents to the Board of Directors the conditions for the implementation of the sustainability strategy, including an action plan and the timeframe within which these actions are to be carried out. It reports annually to the Board on the results achieved.

With regard to climate change, the strategy is accompanied by precise targets set for different timeframes.

The Team of Experts from the support departments (Human Resources, Legal and Compliance, Finance, Environment and Health & Safety) identifies and assesses material impacts, risks and opportunities.

The CSR Department, supported by the Team of Experts, proposes the sustainability strategy, related policies and short-, medium- and long-term objectives. This strategy is validated by Executive Management and the Executive Committee. The CSR Department and the relevant support departments are responsible for implementing the associated action plans and achieving the objectives set.

Sustainability management is decentralized to the level of each Operating Group, which works with its CSR ambassadors to set its own objectives in line with Group policies and objectives. CSR commitments are directly taken up by Executive Committee members and Bureau Veritas executives. The criteria for their variable compensation include CSR objectives.

The Stakeholders Committee was set up in 2019 with eight independent expert members, comprising CSR managers from international companies in different industries, experts in CSR climatology and social sciences, representatives from civil society (associations, NGOs, etc.), investors and sustainability analysts.

The role of this Committee is to outline stakeholders’ expectations with regard to Bureau Veritas’ CSR policy. The Committee assesses the nature and criticality of the non-financial risks and opportunities to which Bureau Veritas is exposed. It guides Bureau Veritas in its CSR policies to improve its impact on society, and on the environment and people in particular. The Committee meets twice a year.

The governance of the Board of Directors was strengthened in 2023 with the appointment of Laurent Mignon as Chairman and Pascal Lebard as Lead Independent Director.

The Board of Directors determines the multi-year strategic orientations based on proposals from Executive Management.

It reviews the results achieved each year. It assesses the possibility of adapting the action plan or modifying the objectives, particularly in light of developments in the company’s strategy, technologies, stakeholder expectations and the Company’s economic capacity to achieve them.

The climate strategy and key actions are presented to the Shareholders’ Meeting at least every three years or whenever there is a material change in the strategy.

• ●The CSR Committee has an operational role, including reviewing the consistency of the materiality assessment and the resulting strategic orientations, monitoring CSR management and the effectiveness of policies, reviewing human and material resources, and reviewing communication on sustainability challenges in line with Bureau Veritas’ strategic plan.
• ●The Audit & Risk Committee monitors the sustainability information reporting process and the effectiveness of the internal control and risk management systems with regard to the relevant development and reporting procedures. It makes a recommendation on the selection of the auditors, whose appointment for the Sustainability Report is proposed to the Shareholders’ Meeting. It oversees the engagement of the independent third party and ensures that CSR risks are taken into account in the Group’s risk management.
• ●The Strategy Committee ensures that sustainability is factored into the Group’s strategy and that sustainability indicators are ambitious. It oversees the development and promotion of ESG services to support clients in their own CSR initiatives.
• ●The Nomination & Compensation Committee ensures that sustainability objectives are included in the variable compensation of the CEO and Executive Management.

The CSR Committee was set up in 2023. The Board of Directors has given it the specific task of monitoring sustainability challenges. The composition, tasks and powers of this Committee are described in section 3.3.3 − Board Committees in 2023, of this Universal Registration Document.

The CSR Committee deals notably with the issue of climate strategy and ensures that the interests of executives are aligned with the sustainability strategy by incorporating ESG criteria into short- and long-term variable compensation, with ESG criteria including at least one on climate.

It reports regularly to the Board of Directors on the performance of its duties. Together with the Audit & Risk Committee, it also reports on the sustainability reporting assurance engagement and how such engagements have contributed to the integrity of financial and sustainability reporting.

Strategy and business model:

• ●The CSR Committee reviews the double materiality assessment process and how stakeholder expectations are addressed;
• ●It reviews the assessment of impacts, risks and opportunities (IROs) and their level of materiality;
• ●It reviews business models and the resulting CSR strategy;
• ●It ensures that CSR indicators are included in executive compensation packages;
• ●It ensures that CSR audits are conducted on acquisitions.

Policies and action plans:

• ●It oversees the implementation of policies, action plans, and the human and financial resources required to achieve the objectives set;
• ●It reviews the Company’s sustainability reporting policy, including digital publications.

Metrics and targets:

• ●It reviews the ambition of CSR objectives;
• ●It monitors the readings of CSR indicators and the achievement of management objectives.

Climate transition:

• ●It reviews the resources allocated to the climate transformation plan;
• ●It monitors actions to reduce GHG emissions from operations and the value chain;
• ●It verifies the alignment of outcomes with the SBTi commitments.

Benchmarking:

• ●It ensures that the results of non-financial rating agency assessments are consistent with the objectives set;
• ●It analyzes CSR benchmarking studies with leading companies and related best practices.

The Operating Group departments report their sustainability indicators on a quarterly basis. As part of the Operating Reviews, they present the action plans and outcomes associated with the material impacts, risks and opportunities to Executive Management.

This information is analyzed and consolidated by the CSR Department. It is then presented to the CSR Committee, which reports to the Board of Directors. The CSR Committee, created after the June 2023 Shareholders’ Meeting, met in the fourth quarter of 2023.

• ●Role and governance of the CSR Committee.
• ●Progress report on CSR policies (double materiality assessment).
• ●Review of sustainability performance indicators and SBTi targets.
• ●Update on the sustainability reporting assurance engagement and the means of monitoring carbon emissions and training indicators.

• ●Assessment of compliance with the ESRS.
• ●Double materiality assessment (methodology and results).
• ●Impacts, risks and opportunities (IROs).
• ●Net Zero Emissions engagement opportunity review.

• ●Intensify dialogue with stakeholders to clarify their expectations.
• ●Define the means and actions of the climate transition plan.
• ●Assess the resources and capabilities required to deliver ESG services.

The variable compensation of the Chief Executive Officer, the members of the Executive Committee and the Group’s senior executives is based partly on sustainability performance indicators. The aim is to align their compensation with the Group’s strategy, of which ESG is an integral part. This approach applies to both short- and long-term variable plans, with sustainability indicators linked to environmental, social and governance objectives, including CO2 emissions, diversity and safety.

Indicators and acquisition curves are reviewed annually and aligned with the Group’s commitments. They are regularly reviewed by the Board Committees. Long-term incentive plans are described in sections 3.8.3.2 – Performance shares and 3.8.3.3 – Stock subscription and purchase options of this Universal Registration Document.

CSR criteria are included in the non-financial portion of bonuses paid to the Chief Executive Officer, members of the Executive Committee and all Group executives.

The proportion of CSR criteria is at 20% in the long-term incentive plans for 2023. The criteria measured are the proportion of women in leadership positions and carbon emissions per employee(1). The targets set for the end of 2025 are 30% women in leadership positions and 2 metric tons of CO2 per employee.

To increase the consistency between the CSR strategy and the Group’s commitments, in particular the climate transition plan unveiled in May 2023, the following changes have been made:

• ●alignment of decarbonization indicators and targets with the SBTi-validated climate transition plan for all short- and long-term plans;
• ●increase in the weighting of the CSR criterion in the variable compensation of the Chief Executive Officer, with a dedicated climate indicator and indicators on the proportion of women in management positions;
• ●incorporation of the Group’s business level CSR objectives into the short-term incentive plans of the members of the Executive Committee and senior executives, depending on their areas of responsibility.

10% of the Chief Executive Officer’s variable compensation is linked to the CSR strategy, breaking down as 5% dedicated to the climate, with a CO2 reduction target in line with the climate transition plan, and 5% to the proportion of women in management positions and the Group-wide accident rate.

These objectives are cascaded into the variable compensation programs for senior executives, and these criteria have a 10% weighting in variable compensation.

All long-term incentive plans are subject to performance conditions, 20% of which are related to CSR.

The criteria measured are the proportion of women in leadership positions and carbon emissions per employee.

Bureau Veritas’ due diligence work is conducted by the team of support department CSR experts, with input from the Stakeholder Committee, and then presented to the CSR Committee, which reports to the Board of Directors.

Before proceeding with any acquisition, Bureau Veritas carries out due diligence on the sustainability practices of the company in question. This is to confirm that the company’s business is consistent with Bureau Veritas’ social and environmental commitment and that its practices are in line with the Group’s CSR strategy. The due diligence process covers eight points:

• ●CSR management system;
• ●environment and climate;
• ●social;
• ●safety and security;
• ●governance;
• ●information systems – data protection;
• ●taxonomy;
• ●supply chain and responsible purchasing practices.

The process is carried out under the responsibility of topic owners, by means of questionnaires and site audits, where necessary. The findings are submitted to the Mergers & Acquisitions (M&A) department. They are included in the target’s assessment and taken into account when deciding whether or not to proceed with the acquisition.

If the planned acquisition is approved, the CSR topic owners approach the company in question to determine methods for it to roll out Bureau Veritas’ CSR policies, indicators and targets. If low CSR performance is found, a specific follow-up plan is undertaken at the entity following consolidation.

Consolidation within the Bureau Veritas Group is carried out by an entity which is specially appointed for this task, and the process is monitored to verify aspects such as inclusion in Bureau Veritas CSR reporting. The maximum time frame for consolidation is one year.

• ●Impactiva – Quality assurance for the footwear and apparel industry;
• ●ANCE – Mexican leader in classical E&E product conformity assessment (e.g., household appliances, lighting products, power tools).

In 2023, Bureau Veritas conducted its double materiality analysis in preparation for the application of EU Directive 2022/2464 (Corporate Sustainability Reporting Directive). Alignment between this analysis and the Group’s risk mapping was carried out to ensure consistency between the two approaches and, in particular, the proper consideration of material sustainability challenges in the Company’s risk management.

The methodology used for the double materiality assessment is described in section 2.1.4.1 − Description of procedures for identifying material impacts, risks and opportunities, of this Universal Registration Document.

Sustainability-related risks across the three ESG dimensions (environmental, social and governance) were taken into account in the risk assessment of each of the five risk categories:

• ●strategy and markets;
• ●operational excellence;
• ●people;
• ●legal and regulatory;
• ●finance and reporting.

These risks are consolidated with all Group risks. The risks identified were reviewed first by the Audit & Risk Committee and then by the Board of Directors to oversee the implementation of appropriate policies on reducing impacts and frequency and improving control methods.

The Group has introduced a policy for preventing and managing cases of counterfeit certificates, as the case may be, to protect the Bureau Veritas brand and image and also to meet accreditation requirements.

When Bureau Veritas detects counterfeiting of its certificates, it immediately informs the relevant authorities and accreditation bodies, as well as, where applicable, the owners of the certification programs. It initiates the appropriate legal proceedings against the perpetrators of these forgeries.

Specific preventive measures are implemented to detect counterfeit or forged certificates. These measures involve the mandatory use of global and secure solutions when issuing certificates and final reports. These measures generate documents in PDF format, time-stamped and with a unique QR code.

Bureau Veritas ensures that its businesses comply with laws and regulations governing tax evasion(2), and more generally strives to conduct its business activities in strict compliance with applicable tax regulations by putting in place appropriate resources and procedures.

The fourteen countries contributing most to the Group’s corporate income tax charge for financial year 2023 are listed below, with the corporate income tax rate for each. These 14 countries account for around 80.1% of the Group’s total corporate income tax charge of €240.7 million.

Given the nature of its activities, Bureau Veritas does not consider prevention of food insecurity, respect for animal welfare or equitable, sustainable and responsible food as significant sustainability risks requiring a Group response(3).

In accordance with French law No. 2022-296 of March 2, 2022, Bureau Veritas takes into account cultural and sports factors when determining the direction of the Company’s activities. Its Wellness Policy encourages and helps all employees to use the resources available for improving their own physical and mental well-being.

In doing so, Bureau Veritas encourages its employees to practice physical activity and sports. At many sites, local management and human resources teams run awareness campaigns on physical and mental health and provide wellness advice to employees through specialists on a variety of topics, such as nutrition and exercise.

Bureau Veritas also offers its employees subsidized health check-ups and medical visits, as well as gym memberships. In some countries, bicycle purchases are subsidized.

Recognizing the crucial importance of the link between Bureau Veritas, the nation and its armed forces, Bureau Veritas supports members of the reserve forces. Bureau Veritas actively encourages its employees to support these fundamental values through personal initiatives and volunteering within the military community(4).

By definition, emerging risks are new, specific to Bureau Veritas, and potentially material in the long term. When the Group’s risk map was updated, emerging risks were identified and then reviewed with the CSR Department. Two risks are likely to have a material, but as yet unquantified, impact:

• ●Social and environmental in-house activism
• Individual expectations towards employer values and policies increase. Certain employee could have more radical attitudes when their expectations are not fulfilled. The expression of their disagreement can be like the refusal to provide a service to a client with intensive CO2 emission or refusal to deliver a service to a client when requiring travelling by plane. These situations can negatively impact Bureau Veritas whose business-to-business services rely on employee engagement and a high quality of service. The first mitigation action is to provide each employee with an extensive view of Bureau Veritas' engagement for sustainability. The second action is to identify such employee preferences and to avoid exposing them to sectors they do not want to work with or to transportation modes they dislike.

• ●Leaving of aging population
• In the most advanced countries aging populations may accelerate their retirement, taking away their expertise and experience. This situation may have significant impacts on technical service companies like Bureau Veritas. To maintain its level of expertise, Bureau Veritas needs to first identify where such situations could happen and then to accelerate the transmission of the expertise to the younger generations. The mitigation actions are to identify where lack of expertise can be critical and to put in place adequate training programs to transmit aging people expertise to younger generations.

Climate-related risks are described in section 2.2.2 − Climate change, of this Universal Registration Document.

Climate change is likely to cause loss of life, social and geopolitical tensions, and economic recession. According to the World Economic Forum, “Environmental risks could hit the point of no return,” and “nearly all environmental risks feature among the top 10 over the longer term.”

Source: https://www.weforum.org/publications/global-risks-report-2024/

Bureau Veritas’ sustainable development strategy is built on two key pillars:

• ●Bureau Veritas’ ESG services offering addresses needs emerging from clients’ environmental and social transitions;
• ●corporate social and environmental responsibility, which is reflected in Bureau Veritas’ implementation of sustainable policies to meet stakeholder expectations.

Through its mission and commitment, Bureau Veritas is “Shaping a World of Trust”. The Group’s sustainable development strategy is fully integrated into this objective, with the aim of “Shaping a Better World”. It is built on three strategic priorities:

• ●“Shaping Better Labor Relations”;
• ●“Shaping a Better Environment”;
• ●“Shaping Better Business Practices”.

This strategy focuses on six key elements in the three pillars of sustainability, namely Environment, Social and Governance.

Bureau Veritas is a signatory of the United Nations Global Compact. The Group supports the Global Compact's 10 principles and has made them an integral part of its strategy, culture and day-to-day operations:

Global Compact principles:

Human rights

• 1 .Businesses should support and respect the protection of internationally proclaimed human rights.
• 2 .Make sure that they are not complicit in human rights abuses.

Labor

• 3 .Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
• 4 .The elimination of all forms of forced and compulsory labor.
• 5 .The effective abolition of child labor.
• 6 .The elimination of discrimination in respect of employment and occupation.

Environment

• 7 .Businesses should support a precautionary approach to environmental challenges.
• 8 .Undertake initiatives to promote greater environmental responsibility.
• 9 .Encourage the development and diffusion of environmentally friendly technologies.

Anti-corruption

• 10 .Businesses should work against corruption in all its forms, including extortion and bribery.

Bureau Veritas’ business model and value chain are described in Chapter 1 of this Universal Registration Document (URD).

Bureau Veritas is a professional services company.

The Group’s mission is to reduce its clients’ risks, improve their performance and help them innovate to meet the challenges of quality, health and safety, and sustainable development.

The services provided by Bureau Veritas are designed to ensure that products, assets and management systems conform to different standards and regulations.

Depending on its clients’ needs and on applicable regulations, standards or contractual requirements, Bureau Veritas acts:

• ●as a “third party”, i.e., an independent body issuing reports and conformity certificates for products, assets, systems, services or organizations;
• ●as a “second party” on behalf of and upon the instructions of its clients to ensure better control of the supply chain; or
• ●as a “first party” on behalf of clients seeking to ensure that the products, assets, systems or services they are producing or selling meet the requisite standards.

Bureau Veritas carries out its engagements using its own staff and, where necessary, subcontractors, particularly when specific expertise not available within Bureau Veritas is required.

Bureau Veritas provides services to companies operating in the fossil fuel and chemicals industries. Services provided to these sectors include industrial process safety inspections, environmental audits, technical assistance to reduce carbon emissions and product quality testing.

Proportion of revenue from these sectors:

• ●coal (mining, energy production, etc.): less than 1%;
• ●oil & gas (extraction and production): 11%;
• ●nuclear: less than 1%;
• ●chemicals: less than 2%;
• ●agricultural chemical inputs and pesticides: less than 0.5%.

Bureau Veritas does not work with companies operating in the controversial weapons or tobacco growing and production sectors.

In 2023, Bureau Veritas continued to roll out its Green Line service offering, which is presented below. Section 1.4 − Group's strategy and objectives, of this Universal Registration Document sets out the orientations and priorities for the 2024-2028 period.

The Green Line comprises CSR services and solutions, including both services specifically addressing sustainability (e.g., energy performance diagnostics and certification of energy management systems), and traditional services geared towards sustainability-oriented assets (e.g., construction inspections of wind turbines or electric vehicle charging systems).

The Green Line covers the three CSR pillars: Environment, Social and Governance. Its scope is broader than that of the European Green Taxonomy.

Sustainability, along with CSR and ESG matters, have become key growth drivers and trust catalysts for all economic players. Beyond their financial performance and ability to innovate, companies are now valued for and judged on their positive impact on people and the planet.

Through its Green Line of services and solutions, Bureau Veritas empowers organizations – both private and public – to implement, measure and achieve their sustainability objectives, reliably and transparently.

In this way, Bureau Veritas helps its clients meet the challenges of product and service quality, health and safety, environmental protection and social responsibility, all along the value chain, in their selection of resources and during production.

Bureau Veritas helps its clients make their ESG initiatives traceable, visible and reliable, so that their impact can be measurably demonstrated. By promoting transparency, Bureau Veritas helps them protect their brands and their reputations.

The BV Green Line has five main focuses:

Bureau Veritas supports organizations in their endeavors to shrink their carbon footprint, providing encouragement along all the paths towards a carbon-free future: verification, measurement, certification, emissions offsetting, etc.

The Group’s experts help organizations overcome the obstacles along the way and promote the sustainable use of natural resources. Bureau Veritas is also a front-line player in the energy transition, covering key stages in the production chain of renewable and alternative energies. It helps its clients design, build and operate their assets sustainably.

Renewable and alternative energies – energy transition:

• ●onshore & offshore wind lifecycle solutions;
• ●solar power from project development to asset management;
• ●power grid stability and renewables integration;
• ●power-to-X, hydrogen and biofuel services.

Sustainable use of natural resources:

• ●crop monitoring for the agricultural industry;
• ●precision farming;
• ●responsible fishing;
• ●forest certification;
• ●marine pollution prevention.

Industrial carbon footprint:

• ●carbon footprint monitoring;
• ●verification of energy savings;
• ●industrial environmental control;
• ●emissions testing and control.

While consumers, citizens and investors demand increasing transparency and authenticity, supply chains have become exceedingly complex, chiefly owing to globalization. Managing these chains is therefore becoming increasingly difficult. Supply chain disruption can have critical impacts on a company’s operations.

Supply chain management requires agility and responsiveness to protect the business. For companies in the energy, retail, automotive and agri-food sectors, supply-chain risk management has become an absolute priority.

The Group helps companies in all business sectors fulfill their aims of ensuring fair, responsible sourcing and end-to-end product traceability, from point of origin to consumption.

As part of its strong commitment to a more responsible business model, Bureau Veritas offers its clients services and solutions for promoting circular-economy models to their end clients.

Supply chain resilience:

• ●risk assessment methodology based on field audit results;
• ●development of a personalized risk index;
• ●provision of a unique digital platform (Supply-R);
• ●supply-chain ESG audits.

Food certification:

• ●product component testing;
• ●organic certification.

Circular economy:

• ●verification of circular economy models.

All buildings and infrastructure companies are confronted with the dual challenge of addressing the growing needs of urban populations while ensuring that their buildings and infrastructure are of high quality, profitable, and compliant with environmental and safety regulations.

Bureau Veritas is present at every stage, from feasibility studies to operation. It offers inspection and certification services for new and aging assets and helps clients in the transition towards reduced energy consumption.

With its technical expertise and in-depth knowledge of local regulations, Bureau Veritas is ideally placed to help clients design, develop and manage cities and infrastructure. Bureau Veritas contributes both to the development of sustainable and intelligent cities and to significantly prolonging building and infrastructure lifespans through refurbishment.

Construction and renovation:

• ●green building certification;
• ●project management for building and infrastructure energy improvements;
• ●infrastructure lifecycle analyses management;
• ●energy performance diagnostics.

The transportation industry (airline, railway, land vehicle, maritime freight companies, etc.) accounts for some 25% of CO2 emissions worldwide (source: International Energy Agency).

The maritime sector is leading the energy transition, with its developments in sustainable fuels, use of alternative propulsion systems and support for construction and operation of offshore wind farms.

Electrification is a key point in the energy transition, and the development of electric mobility calls for readily accessible charging solutions.

Bureau Veritas has a history of nearly 200 years of providing maritime industry expertise to help clients in the development of new energies. As LNG fuel takes on increasing importance in maritime transportation, the Group helps shipowners optimize vessel design in the light of requirements of current and future regulations on atmospheric emissions.

The transportation industry’s environmental footprint is gradually being reduced through a combination of advances in technologies, alternative fuels and energy sources. Bureau Veritas harnesses its expertise in New mobility and works closely with industry players to pave the way to a new era in sustainable development.

For electric vehicle charging stations (EVCS), Bureau Veritas has developed a comprehensive portfolio of services across the whole system lifecycle, from design and manufacture to setup and operation.

E-mobility:

• ●project management assistance for charging stations under construction;
• ●inspection services for charging stations in operation.

Alternative propulsion:

• ●expertise and support for LNG-related projects;
• ●engineering services to support performance and sustainability improvements;
• ●cybersecurity and safety solutions for the maritime and offshore sectors;
• ●development and implementation of new regulations for new fuels.

Bureau Veritas helps clients reduce risks and improve their performance in terms of health, safety and security.

It has developed a full range of solutions for assessing diversity and inclusion policies and measuring key indicators in the field. Bureau Veritas also helps its clients strengthen their governance through dedicated services on ethics and integrity.

Social practices:

• ●social audits;
• ●health, safety, hygiene and inclusion protocol audits.

CSR Strategy:

• ●policy monitoring;
• ●management system improvements;
• ●verification of reports;
• ●transparency and credibility of ESG commitments with Clarity®.

Ethics and business practices:

• ●assessment of respect for human rights;
• ●supplier assessments;
• ●anti-corruption certification;
• ●data privacy and cybersecurity certification.

The Group’s main stakeholders are its employees, shareholders, clients, suppliers and subcontractors, as well as accreditation bodies, governments, public authorities and society at large.

For the fourth year running, Bureau Veritas published the value of its qualitative and quantitative impact on society.

The approach applied is based on an assessment of the positive and negative impacts of the Group’s activities on each of its stakeholders, as shown below. Social, environmental and economic impacts are taken into account.

The impact on the Company is calculated as the difference between:

• ●the amounts paid by Bureau Veritas to its stakeholders (suppliers, subcontractors, employees, shareholders, states), plus the value created with its clients;
• ●the cost of resources used and their negative impacts (environment and accidents).

The impact on the Company is the sum of the impacts on each of the stakeholders in its value chain:

• ●the impact on subcontractors and suppliers corresponds to the amounts paid in purchases of goods and services and subcontractor fees;
• ●the impact on personnel is the cost of salaries and training provided to employees, less the cost of accidents and work stoppages;
• ●the impact on clients is the value created in terms of quality, safety, environment and sustainability, minus the amount of fees paid by clients;
• ●the environmental impact corresponds to the cost of CO2 emissions (Scopes 1, 2 and 3);
• ●the impact on shareholders corresponds to the amount of dividends paid;
• ●the impact of the change in share value is not measured;
• ●the impact on governments corresponds to taxes paid and citizenship initiatives (donations and sponsorship).

As part of this approach, the following methodological assumptions were applied:

• ●the quantitative impact on clients is calculated on the basis of the estimated reduction in their Poor Quality Costs (PQC) due to Bureau Veritas’ work. This estimate is weighted for each activity, depending on the proportion of tests performed by Bureau Veritas;
• ●to calculate the environmental impact, the price of a ton of carbon was estimated at €47(5) (€49 in 2022, €54 in 2021);
• ●for the impact on safety, fatalities and lost-time accidents were considered, with the direct and indirect costs of accidents taken into account at an estimated €1,200 per day of downtime;
• ●to calculate the impact on employees, costs entailed by absenteeism and attrition were considered (with attrition and absenteeism rates applied to payroll).

The list below shows the material impacts, risks and opportunities as they result from the assessment carried out by Bureau Veritas as described in section 2.1.4 − Management of impacts, risks and opportunities, of this Universal Registration Document.

Impacts: Bureau Veritas also adapted its business model to reduce its negative impacts on the environment, on its own workforce and its value chain workforce. The corresponding processes and action plans are monitored through the follow-up of both the climate transition plan execution and the worker engagement survey. The actions to mitigate the negative impacts of the Group's activities on the environment demonstrate Bureau Veritas' responsibility, preserving its reputation and maintaining customer trust. Bureau Veritas addresses workforce challenges to ensure employee well-being and satisfaction. By prioritizing employee development, diversity and inclusion, the Group ensures talent retention and a more stable and resilient workforce. Its resilient supply chain strategy protects against resource shortages and ensures the continuity of the Group's business operations.

Risks: Bureau Veritas’ strategy and business model take into account the sustainability risks related to its activities. They are integrated into the Group risk management plan. They are assessed to ensure the permanent adaptation and efficiency of its mitigation actions. Compliance with environmental regulations and ethical business conduct reduces legal risks and positions the Company as a responsible and compliant organization.

Opportunities: Bureau Veritas’ strategy and business model were designed to seize the business opportunities arising from changes in market needs for its transition to more sustainable activities. It is reflected in the Green Line set of services and solutions that was developed and is regularly reviewed to remain adapted to changes in market needs by industry, business line and geographical region. Bureau Veritas’ diversification of operations and services make its business model highly resilient, reducing its dependence on vulnerable resources or regions. The Company adapts to changing environmental conditions.

The double materiality assessment is performed according to a process defined by the CSR Department. In conducting its materiality assessment, Bureau Veritas took into account the list of sustainability topics covered by the European Sustainability Reporting Standards (ESRS) in conjunction with the identification of material challenges.

The expertise of our operating and support departments enables us to analyze sustainability topics from the perspective of the impact of the Company’s activities and value chain on society and the environment (impact materiality) and from the perspective of the impact of society and the environment on the Company’s risks and opportunities (financial materiality).

Each sustainability topic was assessed for impacts, risks and opportunities to determine its level of materiality.

• ●Impact materiality was used to assess the actual or potential positive and negative sustainability-related impacts associated with the Company’s operations and value chain, including through its services and business relationships.
  • ●Adverse impacts are assessed on two counts, namely severity (size, scale, reversibility) and probability.
  • ●Positive impacts do not take irreversibility into account.
• ●Risks and opportunities are related to the sustainability of the business, including those arising from dependence on natural, human and social resources. The financial impact of risks and opportunities is assessed based on a combination of their probability and the potential magnitude of the financial impact.
• Each risk or opportunity assessment is justified in terms of the rating levels selected, especially the magnitude of the impact and its probability.

The double materiality assessment was conducted by Bureau Veritas teams with a good understanding of stakeholder interests and perspectives. This assessment will be reviewed in 2024 by stakeholders and the Board Committees.

There are two main stakeholder groups:

• ●concerned stakeholders: people or groups who have a vested interest in, or could be impacted – positively or negatively – by the Company’s activities and its direct repercussions and by indirect business relationships along its value chain; and
• ●users of sustainability reports: primary users of financial reporting data (investors, lenders, and other existing and potential creditors, including asset managers, credit institutions and insurance companies), and other users, including the Company’s business partners, trade unions and social partners, civil society and non-governmental organizations, governments, analysts and academics. Some stakeholders may belong to both groups.

This analysis was presented to the Audit & Risk Committee and to the CSR Committee.

The findings of their assessment are shown in the double materiality matrix below:

This Sustainability Report meets the requirements of the CSRD and provides a detailed discussion of Bureau Veritas’ environmental, social and governance (ESG) commitments.

It provides an in-depth analysis of policies, processes and performance, reflecting the Group’s commitment to meeting stakeholder expectations on sustainability.

Scope: this report is prepared on a consolidated basis, on a scope identical to that of the financial statements. It covers all of Bureau Veritas’ operations, and those of its subsidiaries and facilities in different countries.

Coverage: unless otherwise stated, it covers Bureau Veritas’ entire value chain. The assessment of impacts, risks and opportunities takes into account Bureau Veritas’ own activities as well as those of its value chain partners.

Omissions: no specific information relating to the Group’s intellectual property has been omitted from this report.

Bureau Veritas’ Scope 3 greenhouse gas (GHG) emissions are estimated on the basis of Bureau Veritas’ purchasing volume and the emission factor of each purchasing category.

This Taxonomy reporting complies with Regulation (EU) No. 2020/852 of the European Parliament and of the Council of June 18, 2020 on the establishment of a framework to facilitate sustainable investment, and with Delegated Regulation (EU) No. 2021/2178 of the Commission of July 6, 2021, amended by the Delegated Regulation (EU) 2023/2486 of June 27, 2023, specifying the content and presentation of information to be disclosed.

The Taxonomy regulation aims to direct funding to activities that significantly contribute to one or more of the Taxonomy’s six following environmental objectives:

• ●climate change mitigation;
• ●climate change adaptation;
• ●sustainable use and protection of water and marine resources;
• ●transition to a circular economy;
• ●prevention and reduction of pollution;
• ●protection and restoration of biodiversity and ecosystems.

Delegated acts set the technical review criteria for determining the conditions under which an economic activity may claim to make a substantial contribution to one or more of the objectives of the Regulation, and for determining whether it does any significant harm to any of the other environmental objectives.

Taxonomy-eligible activities are considered aligned if:

• ●they make a substantial contribution to at least one of the six environmental objectives;
• ●they do no significant harm to any of the other environmental objectives;
• ●they comply with minimum social safeguards; and
• ●they comply with the technical screening criteria set by the European Commission.

TIC Council, the professional association of compliance verification bodies, has published a guide on Taxonomy reporting for the TIC (testing, inspection, certification) sector. This guide specifies which services are Taxonomy-eligible. It was updated in 2023 to cover all six environmental objectives.

TIC services are broken down into four categories, by level of eligibility for the Taxonomy:

• ●services eligible for the Taxonomy:
  • ●Level 1: TIC services explicitly mentioned in the delegated acts of the Taxonomy;
• ●services not eligible for the Taxonomy:
  • ●Level 2: TIC services implicitly included in Taxonomy-eligible activities;
  • ●Level 3: Other TIC services contributing substantially to one or more environmental objectives;
  • ●Level 4: TIC services that do not contribute to environmental objectives.

The Taxonomy reporting is prepared by a Committee spanning the Finance, Operations, Systems and CSR functions. The Committee reviews and validates the reporting method used and verifies the data collected.

Bureau Veritas’ reporting complies with the recommendations of the Taxonomy Reporting Guide issued by TIC Council, the professional association of compliance auditors.

The following rules were used for this statement:

• ●the 2023 report covers the proportion of turnover, capital expenditure (Capex) and operating expenditure (Opex) associated with eligible/not-eligible and aligned/non-aligned activities;
• ●activities that would be eligible under both climate change mitigation and climate change adaptation are reported only under climate change mitigation, to avoid any risk of being counted twice;
• ●eligibility: only level 1 activities are reported as eligible;
• ●alignment:
  • ●SC (substantial contribution):
    • ●SC criteria are met for the activities with which TIC services are associated,
    • ●because of the difficulties involved in collecting SC data owing to the large number of clients concerned; only activities without SC criteria are considered aligned in this report;
  • ●DNSH (do no significant harm):
    • ●none of the reported activities do any significant harm to the other environmental objectives (Article 17 of the Taxonomy Regulation),
    • ●the DNSH requirements for the activities with which TIC services are associated apply only when relevant, as recommended in the European Commission FAQ of December 19, 2022,
    • ●the DNSH requirements listed in Annex A (“Generic criteria for DNSH to climate change mitigation”) of the Delegated Act for Climate Change Mitigation apply;
  • ●Minimum safeguards:
    • ●the minimum safeguards fall into four categories;
      • ●human rights
        • Bureau Veritas’ Human Rights Policy and the Duty of Care Report ensure that Bureau Veritas respects human rights in its operations, subsidiaries and value chain (see sections 2.3.1.2-B-m – Human rights and 2.4.4 – Duty of Care Plan, of this Universal Registration Document),
      • ●corruption
        • Bureau Veritas’ Code of Ethics, which undergoes regular internal and external audits, ensures that Bureau Veritas complies with anti-corruption expectations (see section 2.4.1 – Business conduct, of this Universal Registration Document),
      • ●tax
        • Bureau Veritas ensures that its businesses comply with laws and regulations on tax evasion, and strives to conduct its business in strict compliance with applicable tax regulations (see section 2.1.2.5 – Tax evasion, of this Universal Registration Document),
      • ●fair competition
        • Compliance with fair competition practices is covered by Bureau Veritas’ Code of Ethics, which undergoes regular internal and external audits (see section 2.4.1 – Business conduct, of this Universal Registration Document);
    • ●Bureau Veritas conducts its business in accordance with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight core conventions cited in the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work and the International Bill of Human Rights (Article 18 of the Taxonomy Regulation). See sections 2.1.3.1 − Strategy, business model and value chain, 2.4.1 – Business conduct and 2.3.1.2-B-m – Human rights, of this Universal Registration Document,
    • ●no criminal conviction.

This report is presented according to the requirements of Annex 8 of the EU Taxonomy Regulation and Delegated Regulation (EU) No. 2020/852 of the Commission.

Calculation method:

• ●turnover is taken from the Group’s management tool (FLEX), for traceability of the amounts declared. The eligibility of each case is examined through criteria defined for three attributes: 1/ the nature of the service, 2/ the client’s market, and 3/ the object on which the service is provided;
• ●the eligibility and alignment criteria used are those defined in the TIC Council 2023 Guidelines.

Bureau Veritas’ Taxonomy-eligible Turnover represented less than 20% of the total in 2023

The 2023 reporting differs from the 2022 reporting in two ways:

• ●the 2023 Taxonomy reporting covers all six environmental objectives presented in 2.2.1.1 – Background, of this Universal Registration Document. This scope differs from the 2022 reporting, which only covered the climate change mitigation and adaptation of environmental objectives.
• ●The Taxonomy reporting coverage rate is 80%; it was 57% in 2022. This rate corresponds to the proportion of Bureau Veritas’ Turnover that has the three attributes necessary to be analyzed with regard to the Taxonomy eligibility criteria in the Group’s ERP. Thus, in 2023, 20% of Bureau Veritas’ Turnover could not be analyzed and the corresponding activities were deemed ineligible, in accordance with a Note from the Commission that prohibits extrapolation. Taxonomy-eligible Turnover is therefore underestimated in 2023.

In 2023, capital expenditure related to assets or processes associated with economic activities that could be considered environmentally sustainable under Annexes I and II of the Taxonomy regulation include:

• ●office, laboratory and vehicle leases (IFRS 16):
  • ●amount of office and laboratory leases signed in 2023;
  • ●company vehicle leases signed in 2023.

Other capital expenditure is not eligible for the Taxonomy:

• ●property, plant and equipment (IAS 16);
• ●intangible assets (software, patents, etc.) (IAS 38).

Bureau Veritas did not record any capital expenditure in 2023 for the other categories concerned:

• ●investment property (IAS 40);
• ●agricultural land (IAS 41).

Capex is made available to Bureau Veritas businesses indiscriminately. Office and laboratory leases have been classified in category 7.7 (Acquisition and ownership of buildings) of Annex I. Leases of company vehicles have been classified in category 6.5 (Transport by motorbikes, passenger cars and light commercial vehicles). As we do not have the means to quantify the proportion of aligned Capex, Bureau Veritas considers that all of this Capex is non-aligned.

Opex encompasses operating expenditure related to assets or processes associated with economic activities that could be considered environmentally sustainable, including the following:

• ●research and development for €4.9 million;
• ●short-term leases for €51.5 million;
• ●maintenance and repair of assets for €114.8 million.

Opex is made available to Bureau Veritas activities indiscriminately.

This operational expenditure accounts for less than 5% of operational costs (salaries, sub-contractors and purchasing). It is not material for Bureau Veritas business model. Consequently, it will not be reported according to the exemption rule set out in article 1.3.1.2 of Commission delegated regulation (EU) 2021/2178 of July 6, 2021.

Bureau Veritas’ climate transition plan covers the Group’s climate impact, as well as the risks and opportunities that climate change represents for the Group. It covers all of Bureau Veritas’ operations, and those of its subsidiaries and facilities in different countries.

Bureau Veritas has set up a Climate and Sustainability Task Force to put together and monitor the implementation of a climate plan. This task force includes the heads of the Environment, Strategy, Risk Management and Sustainable Development departments. It meets whenever necessary, and at least once per year, to examine progress on action plans.

It reports to the Chief Executive Officer of Bureau Veritas and submits annual progress reports under the management review. It keeps the Executive Committee informed on its work and liaises with it on the definition and implementation of action plans. It presents its work to the Board of Directors and the CSR Committee at least once a year.

The CSR Committee pays particular attention to the implementation of the climate transition plan. It reviews the resources allocated, the actions implemented and verifies the alignment of outcomes with the SBTi commitments. It ensures that climate indicators are included in executive compensation.

Although a services organization, Bureau Veritas has focused on mitigating its activity impact on the environment for many years. Bureau Veritas is committed to fighting climate change, joining in 2019 the French Business Climate Pledge launched by MEDEF, France’s largest employer federation. Bureau Veritas has set a climate transition plan which is disclosed in the CSR section of the Group's website. The plan is designed according to the recommendations set by the Taskforce on Climate-related Financial Disclosure (TCFD).

The ambition set in this transition plan is aligned with the Paris Agreement keeping global warming below 1.5 degrees Celsius above the preindustrial average. The near-term targets set for 2030 were SBTi approved in May 2023. Bureau Veritas committed to reducing Scope 1 and 2 emissions by 42%, and Scope 3 emissions by 25% from a 2021 baseline.

The decarbonization relies on five main levers:

• ●reducing fuel and gas consumption in laboratories;
• ●improving buildings' energy efficiency;
• ●producing and using renewable energy;
• ●transforming the vehicle fleet to low carbon emissions;
• ●reducing value chain carbon emissions.

The investments related to support these actions are financed in each Operating Group. Each of them is now working on their budget to financially sustain the effort to 2030. After this exercise, the plan will be reviewed by the Executive Committee and by the Board of Directors. Once approved, it will be immediately deployed. This process is expected to be finalized by the end of Q2 of 2024.

The actions decided in the transition plan are integrated in the Group strategy. They were presented to the Group executive management and to the Board of Directors for their approval.

Bureau Veritas assessed that the locked-in emissions are residual considering that in the future Scope 1 and 2 emissions could be partially eliminated.