2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 87 MANAGEMENT REPORT Social and environmental information 3 Finally, the open days held in 2017 showcasing the assistance, salvage and pollution remediation tugs operated by the Company Les Abeilles along the French coast raised more than €25,000, which will be shared between: 3 the Association Œuvres Sociales de la Marine (Brest); 3 the Association Œuvres Sociales de la Marine (Cherbourg); 3 the Caisse des Péris en Mer de Cherbourg (Cherbourg); 3 Recherche Contre la MUCOVISCIDOSE (Brest). 6.2.1.3 Relations with stakeholders and fair practice BOURBON has identified its stakeholders as all people and organizations able to influence or be influenced by the Group’s decisions and activities. The Group has maintained a close dialog with its employees, clients and shareholders, i.e . its main stakeholders over a period of some years ( e.g . by providing a free phone number for shareholders, asking clients to complete a satisfaction survey after each contract, etc. ). This close collaboration permitted BOURBON to improve its global performance, particularly in committing itself to continuous improvement through CSR with this method. In its Code of conduct, BOURBON defines the rules that apply to all Group employees and other stakeholders (suppliers, partners and clients), ensuring that they work together to respect local cultures, people, laws and ethics. The principles it contains show the way forward for ethical conduct. A supplier Code of conduct sets out the commitments that the Group expects from its suppliers and subcontractors, particularly regarding respect for fundamental rights at work, health and safety, environmental protection, anti-corruption, and promoting economic and social development. At the Group level, local procurement is favored as much as possible to build lasting relationships with local suppliers and boost the local economy. The Code of conduct is routinely included in contracts and is published on BOURBON’s website. 6.2.1.3.1 Local purchases BOURBON attaches particular importance to the impact of its activities in the areas where it operates, especially with regard to the social and economic aspects. As part of its overall strategy, BOURBON is continuing to develop local partnerships by integrating quality and international safety standards. In 2017, local procurement accounted for around 56% of purchases of parts and supplies (unchanged from the previous year) and directly helped to support the local economy. The proportion of local purchases developed as far as possible in the various geographical zones where BOURBON operates. This type of procurement mainly focuses on routine supplies and services for vessel maintenance (engine oils, spare parts, services, ship repair yards) and operations (catering and other services). Prioritizing local procurement offers significant added value in terms of response times and overall purchasing costs (including logistics). 6.2.1.3.2 Suppliers and subcontractors In 2014, the Group Purchasing function was completely reorganized to improve international supplier management and to deploy tools and processes common to all subsidiaries worldwide. This enabled procedures and tools to be introduced to improve monitoring of suppliers, with the implementation of purchasing strategies by product category, supplier quality management and performance measurement through regular assessments and risk analysis. All of these processes factor in quality standards and ethical issues. In 2017, more than 30 evaluations were carried out (70% fewer than in 2016) because, overall, the vessels had fewer programmed technical shutdowns, given the economic conditions. BOURBON has defined a single scope for its suppliers and subcontractors. This includes, in addition to the procurement of parts and supplies, the following categories: fuel, classification societies, flags, freight forwarders, telecommunications, travel agencies and external manning agents. Of these, two categories (external manning and ship repair yards) account for more than 13% and 9% of purchases respectively. In terms of risk management, therefore, it is essential that BOURBON prioritizes its actions with these suppliers: 3 firstly, external manning agents: these subcontractors are closely monitored since they manage a significant percentage of the Group’s workforce (27% in 2017). They comply with international standards and with BOURBON’s standards (see section 6.1.1.3 on international recruitment policy) and undergo annual internal audits; 3 secondly, ship repair yards: they perform maintenance on vessels in the fleet, which are the Group’s major assets. The nature of the work carried out by these subcontractors requires strict safety management. Accordingly, HSE criteria are given a higher weighting during annual appraisals. 6.2.1.3.3 Compliance program BOURBON has set up a compliance program. As regards the specific corruption risk linked to the countries in which the Group operates, anti-corruption measures and procedures are an integral part of this program. Its main components are described in the “internal control and risk management procedures” section of the management report. The Group has also put in place a dedicated compliance organization with 26 compliance managers across the Group’s subsidiaries who report to the Corporate compliance team. The Group also has a dedicated procedure for compliance requirements which it applies to third parties and its suppliers in particular. In 2015, the Group launched a Compliance E-learning Program for all of its onshore and offshore employees. The e-learning program continued in 2017. Very close attention is paid to seagoing personnel who have limited internet access.