I Value Chain and ESG Material Topics + Double materiality assessment (DMA) + Double materiality assessment (DMA) + Value chain overview + Value chain overview + ESG material topics & DMA process + ESG material topics & DMA process (1) Battery Electric Vehicle (2) Protection of the Interest of Clients (3) General Data Protection Regulation (4) Diversity, Equality and Inclusion (5) Carbon dioxide equivalent or CO 2 e means the number of metric tons of CO 2 emissions with the same global warming potential as one metric ton of another greenhouse gas Assessing the Environmental, Social and Governance (ESG) topics that Arval faces and influences is key to aligning its sustainability strategy with stakeholder expectations and regulatory requirements. Arval’s first Materiality Matrix was built at the end of 2021, based on a three-month combining qualitative and quantitative study involving internal stakeholders (such as Arval executive committee members and employees) and external ones (customers, suppliers, investors, partners, and NGOs). In its 2024 extra-financial report, prepared under the Corporate Sustainability Reporting Directive, Arval published its double materiality assessment*. This covers both Arval’s own operations and activities upstream and downstream in the value chain. Own operations include all equipment, buildings, and services used to deliver business activities, while commercial activities encompass services that form Arval’s value proposition to its customers. This process identified the most significant risks and opportunities for Arval’s business, and the most significant impacts for the environment and the society stemming from the own operations and commercial activities. * Double materiality is a mandatory exercise, part of the CSRD regulation, that allows companies to identify material sustainability issues. It is composed of 2 elements: • Impact materiality corresponds to Arval’s activities across the value chain and its impacts on environment & people (inside–out). • Financial materiality corresponds to risks and opportunities created by the environment and/or people on the Group (outside–in). double materiality impact materiality Company impact on people and planet Sustainability and climate impact on the company risk / opportunities Impacts Financial materiality ESG material topics & double materiality assessment process To pinpoint the ESG topics relevant to Arval’s business model, a dedicated taskforce reviewed all processes, activities and products that compose the value chain. This review enabled the identification of an extensive list of impacts, risks and opportunities throughout the value chain which where subsequently assessed for their materiality. The main components of Arval’s value chain are: Upstream: • The manufacturing of the vehicles and spare parts, which involves numerous industrial processes. Producing steel, aluminium, plastics used in vehicles, as well as in the production and assembly of batteries and the manufacture of spare parts, electronics and tyres produces significant CO2e5 emissions. Extreme weather events may disrupt the supply chain and create shortages. Working with suppliers requires considerations to encourage responsible practices. • Transport of spare parts and finished vehicles to Arval’s distribution centers and customers is another source of greenhouse gas emissions The own operations:Building management, business travels, and procurement of office equipment and supplies consume resources (such as energy, water, office material including IT equipment), generating CO2e5 emissions and waste. Commercial activities during the lease period, namely: • Leased vehicles emit greenhouse gases and other air pollutants. Drivers are exposed to health and safety risks, especially road accidents. At the same time, new mobility habits and opportunities are created in a fast-changing market and regulatory environment. • Vehicle events – such as maintenance, reparation, tyre changes - require garages and service providers to use responsible practices. This helps minimise environmental impact while optimising vehicle performance. • Storing, returning and transporting vehicles for various events expose cars to physical climate risks and generate emissions. • Financing, contract management, and customer or end-user support also require responsible practices including transparency and protection of personal data in all processes. Every interaction provides valuable insights for improving customer satisfaction. Downstream: • Reselling vehicles, including storage, refurbishment and transportation, mirrors ESG issues of vehicle events and logistics processes. • Post- resale vehicle uses presents similar environmental issues to the leasing period. • End-of-life disposal of vehicles and tyres leads to waste and emissions from dismantling. Value chain overview Arval conducted its double materiality assessment using BNP Paribas’s methodology, in compliance with CSRD directive requirements. This process followed four steps to address all relevant ESG topics: 1. Defining Arval’s value chain, distinguishing between «Own operations» and «Commercial activities», and defining relevant ESG sub-topics. 2. Identifying internal and external stakeholders, and the related impacts, risks and opportunities (IRO) per ESG topic. 3. Assessing the materiality of each IRO on a scale of 1 (Minimal) to 5 (Critical). 4. Determination of the materiality threshold for each IRO - when the rating is 3 (Important) or above on at least one of the three dimensions, then the topic is considered material. The material IROs identified through this exercise and reported for the 2024 CSRD sustainability statement are: Climate change mitigation • Greenhouse gas emissions generated during vehicle use throughout the leasing period (negative impact). • Greenhouse gas emissions from vehicle, spare parts, battery and tyre production, and the transportation of vehicles for delivery or resale (negative impact). • Decrease of vehicle resale value as a result of legislative, technological and / or consumer preferences (transition risk). • Cost savings achieved through initiatives to reduce Scope 1 and Scope 2 emissions (opportunity). • Increased customers interest in electric mobility solutions, supported by regulations restricting older or high-emissions vehicles (opportunity). • Growing customer adoption of new mobility practices, such as car sharing, which help reduce fleet sizes and lowering upstream manufacturing emissions (opportunity). Climate change adaptation • Losses from early contract termination, and material damage to Arval’s fleet and buildings caused by natural disasters (physical risk). • Shortages, quality issues, and reduced availability of raw materials from extreme weather events (physical risk). • Air Pollution emitted during the vehicles use, other than greenhouse gases, including NOx, fine particles, VOCs and CO (risk). Business management • Business code of conduct incidents when interacting with stakeholders (risk). Own workforce • Discrimination, inequality and exclusion during key stages of employees’ careers, such as recruitment, performance evaluations, promotions and compensation reviews (negative impact). • Violence and harassment at work, including interactions with colleagues, customers and external stakeholders (negative impact). • Lack of social protection measures for employees (negative impact). • Human resources risks arising from disputes over discrimination, poor contract management, or unequal treatment (risk). • Psychosocial risks for employees related to recent changes in working methods and the working environment (risk). • Attracting and retaining high-level talents through gender diversity practices, thereby reducing of external recruitment costs (opportunity). • Improved employee retention and workplace efficiency through work-life balance initiatives (opportunity). • Increased employee satisfaction, retention and loyalty through skills development, leading to lower external recruitment costs (opportunity). Consumers and end-users • Consumers’ health and safety concerns, road accidents and other safety hazards from physical risks (negative impact). • Impact of unclear, insufficiently transparent, or misleading information provided to customers (negative impact). • Customer dissatisfaction from the treatment of isolated operational or commercial issues (negative impact). • Breaching personal data protection legislation when processing customers’ personal information (risk). • Improved customer satisfaction, fewer accidents, and reduced repair and insurance costs due to driver safety initiatives (opportunity). Environment social Governance Climate Change Adaptation Water & marine resources Workers in the Value Chain Suppliers’ relationships Cybersecurity Material Non-Material Biodiversity & Ecosystems Affected Communities Resource Use & Circular Economy Own Workforce Business Conduct Anti-bribery whistleblowers Material Non-Material Climate Change Mitigation Consumers & End-users Pollution Consumers’ Privacy Risks Impacts Opportunities ESG material topics & double materiality assessment process