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.

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.

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.

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 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.

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.

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.

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.