LISI 2012 FINANCIAL REPORT
        
        
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            6
          
        
        
          Corporate Social Responsibility
        
        
          The manufacturing sites primarily use metals, and to a lesser
        
        
          extent on plastics.
        
        
          The metal work is done mainly by deformation - cold forging
        
        
          and hot stamping - causing no loss of material aside from
        
        
          adjustments. More sites work daily to optimize their material
        
        
          resources (waste reduction, SMED to reduce losses during the
        
        
          adjustment phases, etc.). Finally, the waste generated by the
        
        
          final stages of production (machining, sharpening) are sorted
        
        
          and sent for 100% materials recovery.
        
        
          Regarding the plastic, the production sites that use this resource
        
        
          recover and sort their plastic waste (core samples, scrap). Such
        
        
          waste is then crushed and reintroduced into the production
        
        
          lines, to the maximum extent required by our customers.
        
        
          
            2.3.3 Energy consumption, measures to improve energy
          
        
        
          
            efficiency and use of renewable energy
          
        
        
          Energy consumption is also down. Tighter control of our
        
        
          consumption and awareness of our production teams play a
        
        
          key role in this decrease in our impact on the consumption
        
        
          of energy resources. Sites are pursuing their waste cutting
        
        
          activities.
        
        
          For example, the LISI AEROSPACE plant at Saint-Ouen l’Aumône
        
        
          implemented a campaign of detection of compressed air leaks
        
        
          by ultrasound, with the assistance of a specialist company. In
        
        
          total, 44 leaks were identified and eliminated, generating a
        
        
          saving of 63,636 kWh/year (or 0.8% of annual consumption).
        
        
          That same site reduced its consumption of gas by 204,930
        
        
          kWh/year, thanks to isolation of the pipes in the heating plant.
        
        
          
            2.4 Climate Change
          
        
        
          
            2.4.1 Emissions of greenhouse gases
          
        
        
          In accordance with the Grenelle II law and its implementing
        
        
          decrees, LISI has established an Assessment of Greenhouse
        
        
          Gases for its legal entities with more than 500 people.
        
        
          Thus, in France, Blanc Aero Industries released the carbon
        
        
          equivalent of 2,276 tons of CO2, Creuzet 2,348 tons of CO2,
        
        
          Indraero 5,542 tons of CO2, Former 15,606 tons of CO2, being a
        
        
          total of 25,772 tons of CO2 for these entities.
        
        
          The analysis in the report shows that themain source of release
        
        
          of Greenhouse Gases is related to energy consumption.
        
        
          This confirms the LISI's general action to reduce its carbon
        
        
          footprint through its energy consumption.
        
        
          3
        
        
          Society-related issues
        
        
          
            3.1 Territorial, economic and social
          
        
        
          
            impact of the company's business
          
        
        
          The LISI Group is firmly rooted in France, particularly in Franche
        
        
          Comté. Indeed, of the Group's 38 production sites, 17 are
        
        
          located in France (48%) of which 5 in Franche Comté, the
        
        
          Company's birthplace. These 17 French sites represent 55% of
        
        
          the workforce.
        
        
          At foreign sites, the vast majority of employees come from the
        
        
          local population, thus contributing to the development of the
        
        
          local economic and social fabric.
        
        
          The LISI Group employs 16 expatriates, or 0.18%, out of 8,909
        
        
          employees in total. This very low proportion shows that the
        
        
          site use mostly local people. Expatriates are mostly managers,
        
        
          which also ensures compliance with Group's operating rules.
        
        
          
            3.2 Relationships with persons or
          
        
        
          
            organizations interested in the
          
        
        
          
            company's business
          
        
        
          
            3.2.1 The conditions for dialogue with those persons and
          
        
        
          
            organizations:
          
        
        
          The international standards ISO 14001 and OHSAS 18001
        
        
          have as one of their basic principles, dialog with the Interested
        
        
          Parties. LISI has based its system of environmental, health, and
        
        
          safety management on these standards.
        
        
          Thus, individuals and/or organizations interested in the
        
        
          company's business have been identified by the sites, as well
        
        
          as their expectations. All requests receive are subject from the
        
        
          sites.
        
        
          
            3.2.2 Partnership and sponsorship activities
          
        
        
          The LISI Group is a major economic player in all areas where it
        
        
          operates. It thus contributes to local employment and to local
        
        
          and regional development.
        
        
          A significant number of employees also contribute to the
        
        
          dynamism of associations, clubs, clusters, networks and other
        
        
          professional organizations.
        
        
          Such professional organizations include the GIFAS (the Group
        
        
          of French Aerospace Industries) for LISI AEROSPACE, AFFIX