Sanofi

Composition of the Board and its committees

Information required under ESRS 2 paragraphs 20 and 21 can be found on Sanofi's website. One of these directors holds an executive position at Sanofi (Sanofi's CEO), while 16 are non-executives. Sanofi has two directors representing employees on its Board of Directors.

Responsibilities of the Board and its members for IROs, as depicted in the terms of reference or Board mandates

The Board of Directors shall lay down the orientations of the Company's activities and ensure that they are implemented, paying due consideration to social and environmental issues. The Board is committed to a long-term value creation approach while considering the social and environmental impacts, risks and opportunities of the Company's operations.

The Appointments, Governance and CSR (AGC) Committee of the Board addresses CSR-related topics at least four times per year and reports to the Board. On CSR matters, the Committee: • examines and monitors the Company's commitments and policy orientations in terms of social, environmental and societal responsibility (collectively referred to as Corporate Social Responsibility or "CSR") and the extent to which they meet stakeholder expectations, and more generally ensure that CSR issues are taken into account in developing and implementing corporate strategy; • ensures that on climate-related issues the Company's strategy is accompanied by precise objectives defined for different time frames, and reviews annually the results achieved. The Committee may review the presentation to the shareholders' meeting of the climate strategy; • examines draft reports by the Company on governance (including the sections dealing with the diversity policy applied to members of the Board) and CSR matters (especially the sustainability information), and more generally ensure that all information required by applicable legislation on such matters is prepared; • ensures that regular exchanges take place with shareholders on corporate governance and CSR issues and determine how such exchanges take place, while making sure that the principles of equal treatment of all shareholders and the collegiate nature of the Board are not undermined; • identifies and discuss emerging trends in governance and CSR, and ensure that the Company is preparing as well as possible to deal with those trends in light of issues specific to its operations and objectives; and • where applicable, participates in the determination, in conjunction with the Compensation Committee, of the extra-financial criteria included in the Company's remuneration policies.

The Committee does not include any executive corporate officers and is composed primarily of independent directors. The non-executive Chairman is a member of this Committee. While not a member of the committee, the Chief Executive Officer is involved in its work.

As of 2024, the Audit Committee (AC) has a formal oversight role on sustainability reporting. It can challenge the adequacy of such reporting, especially on the materiality assessment and the information to be provided with respect to material impacts, risks and opportunities in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance (refer to the CSRD Disclaimer and Explanatory Note).

Role of the administrative, management and supervisory bodies related to business conduct

As part of its duties, the Audit Committee must obtain assurance that the Chief Executive Officer has sufficient resources to identify and manage the risks, and in particular risks of an economic, financial and legal nature, to which the Company is exposed in the course of routine and exceptional transactions (see article VI B. of Sanofi's Board Charter). In this respect, the Ethics & Business Integrity (E&BI) department is heard regularly by the Audit Committee and provides updates on its roadmap.

The Audit Committee meets at least six times a year and reports to the Board of Directors and informs the Board immediately of any difficulties encountered. Business integrity topics are discussed at least once a year.

Responsibilities of the CEO and the Executive Committee for IROs

The Executive Committee regularly monitors Sanofi's impacts, risks and opportunities, as well as the work carried out by the sub-committees described hereafter. Some members of the Executive Committee are also appointed as owners or sponsors of a given CSR topic within the broader CSR strategy outlined previously.

The Risk Committee is chaired by the Group General Counsel and gathers executives from Global Business Units (GBUs) and functions (GFs). It consolidates the risks and impacts identified by the sub-committees and focuses on those that are high priority for Sanofi. The group Risk Committee then assigns each identified risk or impact to the relevant Executive Committee member and reports regularly to the Audit Committee. The group Risk Committee reports on a quarterly basis to the Executive Committee on the progress of the mitigation plans.

The Executive Compliance Committee (ECC) ensures the effectiveness of Sanofi's Ethics & Business Integrity program and monitors the corresponding impacts, risks and opportunities. The ECC is chaired by the CEO with senior representatives from all key functions and GBUs. The ECC meets every quarter.

Other operational governance bodies responsible for overseeing IROs

The CSR Committee comprises the senior leaders of Sanofi's Global Business Units and global functions. It meets on a quarterly basis to discuss key CSR topics. As part of Sanofi's double materiality assessment, the CSR Committee was given formal oversight of the identification of social and governance impacts, risks and opportunities in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance (refer to the CSRD Disclaimer and Explanatory Note).

The Planet Care Impact Steering Committee oversees the Planet Care pillar of Sanofi's CSR strategy and therefore monitors its efforts towards its environmental transition. The Committee chaired by the Head of Manufacturing & Supply (also an Executive Committee member) includes senior executives from Environment, CSR, Procurement and R&D functions along with senior representatives from Sanofi's GBUs and other activities. It submits strategic orientations and the company's commitments to managing its environmental (climate, pollution, biodiversity and waste) impacts, risks and opportunities to the Executive Committee, which reviews these proposals with respect to their operational implementation.

The Climate-related Risk & Opportunities Committee (CROC) oversees Sanofi's climate change adaptation efforts. It works closely with the Planet Care Impact Steering Committee to ensure that the Task-force for Climate-related Disclosure (TCFD) recommendations are applied at all levels of organization and that systems are in place to manage climate-related risks and opportunities. This group, which meets monthly, includes senior executives from CSR, HSE, Environment, Risk Management and Insurance, along with senior representatives from Strategy, Finance, Legal, CSR, Procurement, Supply Chain and HSE.

Engagement of the Board with Committees and working groups on (i) material IROs; (ii) implementation of due diligence; and (iii) results and effectiveness of policies, actions, metrics and targets

The Board of Directors validates the Company's overall strategy, scrutinizes its implementation and regularly monitors delivery. As part of this role, it is informed of all material CSR impacts, risks and opportunities and directly engages with the committees in charge of implementing the relevant policies and action plans, monitoring their effectiveness, as well as Sanofi's progress towards meeting its targets.

Regarding environmental IROs, the Board is kept up to date on the progress on Sanofi's Planet Care program and reviews the climate transition plan at least once a year. This oversight role is supported by the Appointments, Governance and CSR Committee within the Board of Directors, which meets every quarter with the Global Head of CSR.

The Planet Care Impact Steering Committee oversees Sanofi's transition efforts. It presents to the Executive Committee the Company's strategic priorities and commitments related to environmental risks, impacts and opportunities. The Executive Committee approves and ratifies these proposals for implementation.

For climate-related IROs, the Climate-related Risk & Opportunities Committee (CROC) oversees Sanofi's adaptation efforts, which are quarterly monitored at Executive Committee level via the Head of Corporate Affairs (member of the Sanofi Executive Committee). The Global Head of CSR informs the Board and its committees of the implementation of policies and action plans, and of progress towards meeting their targets for managing material IROs.

Regarding social and societal IROs, the Chief People Officer, a member of the Executive Committee, meets the Board regularly to discuss the People & Culture agenda, particularly when co-creation, review and decisions are needed to move forward.

The Ethics & Business Integrity function forms the cornerstone of Sanofi's efforts to promote and instill ethics and integrity in all of its activities. It works closely with other departments such as Internal Control and Processes, Internal Audit and Risk Management, Global Quality, Procurement, People & Culture, HSE, and CSR. The Head of Ethics & Business Integrity has a double reporting line — to the General Counsel and to the CEO — and meets periodically with the Audit Committee and/or the Board and external auditors.

How the Board and its committees take into account IROs when overseeing the strategy, major transactions and the risk management process

The Board and its committees reviewed several material IROs during the period. The Board and the Executive Committee engage regularly with the Global Heads of CSR, HSE, Ethics & Business Integrity and with the Chief People Officer. The Executive Committee also gives consideration to the reports and proposals from the Planet Care Committee and the CROC. Below is a list of material IROs addressed between January 1, 2024 and December 31, 2024:

Sanofi conducted its double materiality assessment at group-level in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance - refer to the CSRD Disclaimer and Explanatory Note.

Incentives schemes contingent on ESG criteria

There are two incentive schemes which include ESG performance criteria: • the Chief Executive Officer's variable compensation policy (short-term incentive, STI); and • the performance shares plan (long-term incentives, LTI).

The individual performance criterion based on CSR accounts for 10% of the CEO's annual variable compensation.

Furthermore, 20% of the variable compensation of the Executive Committee members is contingent upon achieving targets regarding human capital and climate-related issues.

The compensation policy for the CEO is established by the Board of Directors.

Since 2023, performance share plans — Sanofi's long-term incentive scheme awarded to senior employees — have incorporated two CSR performance criteria, accounting for 10% in the current plan. The performance criterion equates to the achievement over a three-year period of annual targets linked to the following pillars of Sanofi's CSR strategy: • Affordable Access (5%) – providing essential medicines to non-communicable disease patients through Sanofi Global Health; • Planet Care (5%) – Carbon footprint reduction, Scope 1 & 2 emissions (% GHG reduction versus the 2019 baseline).

Details on the annual targets are reported in the plan's brochure made available to the beneficiaries. At the end of the period, the Board will determine the allocation rate corresponding to the CSR targets met.

Mapping of core elements of due diligence

Mapping of core elements of due diligence, for impacts on people and the environment, to the relevant disclosures in Sanofi's sustainability statement:

Risk management and internal controls process for sustainability data

Description of scope, main features and components of risk management and internal control processes and systems in relation to sustainability reporting

Sanofi applies the Internal Control - Integrated Framework issued in 2013 by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), reflecting its listing on the US market and in light of obligations under the Sarbanes-Oxley Act. The COSO framework is considered equivalent to the reference framework of the Autorité des Marchés Financiers (AMF, the French Financial Markets Regulator). Internal Control is a process, performed out by an entity's Board of Directors, management and other personnel, and is designed to provide reasonable assurance regarding the achievement of objectives related to: • the effectiveness and efficiency of operations; • the reliability of reporting, particularly with regard to accounting and financial information; and • compliance with applicable laws and regulations.

Sanofi's Internal Control system has adopted the COSO guidance "Achieving Effective Internal Control Over Sustainability Reporting (ICSR): Building Trust and Confidence through the COSO Internal Control – Integrated Framework (2023)" as the foundation for establishing and maintaining an effective system of internal control over sustainability reporting.

Approach to the assessment of reporting risks

Description of risk assessment approach

During the first year of the CSRD rollout, the Internal Control function focused on review processes impacted by the European directive using a risk-based approach to identify main metrics to focus on. Priority was given to document quantitative data across the impacted processes, collected through interviews with multiple data points owners.

Additionally, the Internal Control function used the "List of ESRS Data Points — Implementation Guidance" released by EFRAG to collect, at data point granularity, the information (policies, systems used, scope of applicability, operational risks, etc.) pertaining to the quantitative and qualitative data to be disclosed under the CSRD.

At the end of this financial year, the Internal Control function delivered a mapping of the IROs by end-to-end process, as well as a systems and risks inventory, the first step in rolling out the internal control system.

Risks identified and strategies implemented in the sustainability reporting process to mitigate these risks

Activities that seek to mitigate identified risks are in progress and being rolled out over time by corporate support functions as part of their operational remit. The main mitigating activities in place are mainly consistency checks, gap analysis, variance analysis versus prior year, and reconciliations. As part of the mitigating activities implemented across the processes impacted by the CSRD, a similar review process is implemented using the "four eyes" principles. When the global team performs consistency checks, variations are investigated and explanations sought from local contributors; if corrections are needed, actions are taken either at local or global level.

Those mitigating activities were not part of an established internal control process. Further mitigating activities and formalization might be necessary and will be assessed by the Internal Control function as part of the deployment process.

The Internal Control function is developing a risk management strategy for sustainability reporting that will continue to draw on a training program for functions impacted by the CSRD. In July 2024, the Internal Control function delivered an introduction training for data point owners, addressing key concepts around risks and how to design and implement mitigating actions.

The Internal Control function already worked on a multi-year plan to develop and deploy a control environment to cover the CSRD-related material topics. The multi-year plan includes a training program to educate certain relevant contributors (globally and locally) in risk management and the control environment required in the context of audited sustainability reporting.

Integration of risk assessment findings and internal controls into sustainability reporting processes, with periodic updates to the Board or its Committees

Starting from 2025, the Internal Control function will integrate findings reporting and monitoring related to sustainability reporting into its standard process, in a similar way to the process used for its Severe Impact Controls & Sarbanes-Oxley controls.

At present, the Audit Committee, whose remit includes assessing the effectiveness of internal control, works with the Appointments, Governance and CSR Committee on monitoring the rolling out the ongoing program and processes to improve the reliability of and control over our ESG data and reporting processes.

Sustainability goals for our products, services, customers and geographical areas

Sanofi's goals cover four areas of sustainability:

Access to healthcare

In 2024, two billion people around the world still lacked access to quality medicine and healthcare. We aim to change this by offering affordable access to medicines for underserved communities, while helping to build sustainable healthcare systems. • We are using our expertise to provide affordable access to quality care for the deprived populations who need it the most. We have created the Sanofi Global Health Unit (GHU), a non-profit business unit that operates in some of the poorest countries where it initially offers 30 of its essential medicines in therapeutic areas including cardiovascular diseases, diabetes, and cancer. The GHU aims to provide care to two million people with non-communicable diseases (NCDs) in 40 countries by 2030. • We are also helping 1,000 patients with rare diseases who lack access to treatments by donating 100,000 vials of medicine each year. This fulfills a commitment of over 30 years to patients with rare diseases, such as Fabry, Gaucher or Pompe disease. • For many people, the affordability of our medicines is not the only barrier to access – availability is a further barrier. That is why we are developing a global access plan to make all new products available in selected markets with unmet needs, within two years of initial launch.

R&D for unmet medical needs

As part of our commitment to society, we believe it is essential to determine how our science can benefit vulnerable communities: • we continue to contribute to efforts led by the World Health Organization (WHO) to eradicate poliomyelitis and eliminate sleeping sickness – two diseases that affect marginalized communities – with vaccines and new therapeutics; and • we have identified significant disparities in treatment for children with cancer. Our R&D teams of world-renowned researchers have a deep understanding of the specific challenges of pediatric oncology and are keenly aware of the need for appropriate treatments. We have therefore devoted our teams to this cause.

A healthy planet

We are mindful of our ambition to support initiatives to protect the planet. Planet Care is our environmental program that seeks to reduce the direct and indirect impacts of our operations and products on the environment. It covers the entire life cycle of our products — from raw materials to their potential end-of-life impact. We commit to: • on climate change mitigation (i) reducing our greenhouse gas (GHG) emissions (Scopes 1 & 2) by 55% and our Scope 3 emissions by 30% by 2030 (versus 2019), and our emissions across all Scopes by 90% by 2045 (targets validated by the SBTi – Science Based Target initiative), (ii) supplying all of our sites with 100% renewably-sourced electricity by 2030, (iii) establishing an eco-fleet by 2030, (iv) committing the supply chain to reduce its Scope 3 emissions; and • on products, improving the environmental profile of our products by eco-designing all new products by 2025. By 2027, we will no longer use plastic in our vaccine syringe blister packs. This truly complex industrial task will address the problem of plastic waste in the environment and help to minimize our climate impact.

Inclusion and diversity of employees and communities

We are driven to make our workplace and communities inclusive and diverse by: • achieving gender representation in senior leadership; • fostering sustainability and inclusion in the ecosystems where we operate, serving communities through volunteering; and • making our commitment to society an integral part of our leaders' career development paths, thus strengthening the social impact of their decisions. The Leaders to Citizens program was launched in 2022 to encourage the Company's senior leaders to actively advocate CSR efforts and continue embedding these principles in all of its operations.

Elements of Sanofi's CSR Strategy that relate to or impact sustainability matters

Incorporating the CSR strategy, Sanofi's Play to Win core business strategy outlines our ambition to become a leading immunology company. This shift in portfolio focus has implications for our CSR strategy regarding our impact on people and the environment. There may be positive impacts on environmental sustainability matters: most immunology products are biologics, meaning fewer pharmaceuticals are released in the environment via patient use, and fewer chemicals are required for production. There may also be implications for our access to healthcare strategy, as immunology products are generally more expensive and produced at lower volumes. Furthermore, acquisitions made to fuel Sanofi's R&D pipeline may further challenge our ability to meet our access to healthcare commitments, such as access planning for products developed or commercialized under strategic external partnerships.

Description of products, services, markets, customers

Sanofi's activities are organized around the following categories: Immunology, Rare Diseases, Neurology, Oncology, Other pharma, Vaccines, and Opella (divestment process in-progress).

We have business operations in approximately 63 countries and our products are available in more than 160 countries. Sanofi is the tenth largest pharmaceutical company globally by sales. Our main markets in terms of net sales are the United States, followed by the European region, and other markets such as China and Japan.

We work with regulatory bodies who approve our medicines and vaccines for safety and efficacy, health authorities who valuate our products, healthcare practitioners who prescribe treatments and patients who benefit from our medicines and vaccines.

Sanofi employees around the world

Sanofi's workforce comprises 82,878 employees — see section 3.3.1. Own workforce (ESRS S1). The company operates through 52 manufacturing sites and has 13 research and development (R&D) facilities in countries across the globe.

Description of the business model and value chain

Our business model is centered on pharmaceutical innovation, with research and development (R&D) as the primary input. We gather inputs from a global network of suppliers and partnerships with research institutions. Inputs are secured by investing in R&D, maintaining quality control measures, and seeking to ensuring compliance with regulations. We also actively participate in collaborations and alliances on cutting-edge technologies and compounds to enhance our product pipeline.

Our outputs include a diverse portfolio of pharmaceutical products and vaccines to address a wide range of therapeutic areas, benefiting various stakeholders: • patients (end-users), through access to innovative and effective treatments that improve their health and quality of life; • other stakeholders, with healthcare providers gaining access to advanced medical solutions, and communities benefiting from our commitment to corporate social responsibility and public health initiatives.

Investors may benefit from Sanofi's financial performance and growth potential, driven by a steady stream of new product launches and expanding market share.

Sanofi operates within a complex value chain that spans upstream and downstream activities and stakeholders. • Upstream operations include: – sourcing raw materials and active pharmaceutical ingredients (APIs) from a network of key suppliers who are selected based on pre-established criteria; – partnering with contract manufacturers for production; – partnering with clinical sites and research institutions to advance scientific research and clinical trials; and – purchasing/using capital goods and using financial services to fund its operations. • Downstream operations and stakeholders include: – transportation and distribution — we use both direct sales and partnerships with distributors, and work with service providers to transport products to their destination; – customers — health authorities, hospitals and healthcare professionals that prescribe and administer our Sanofi products; and – patients (end-users) who use Sanofi products and dispose of packaging and unused products (end-of-life).

The description above has considered the following: a. Key operations, resources, distribution channels and customer segments: Sanofi's key operations include R&D, manufacturing and marketing of pharmaceuticals and vaccines. Its key considerations are skilled personnel, state-of-the-art research facilities, and a global supply chain network. Distribution channels are diversified to include direct sales and working with wholesalers and pharmacies. b. Key business relationships and their characteristics: Sanofi's relationships with customers and suppliers are long-term collaborations that adhere to standards of quality and foster mutual commitment to innovation and public health. c. Cost structure and revenue: Sanofi's cost structure comprises substantial investment in R&D, production costs and marketing expenses. Revenue streams are primarily derived from the sale of pharmaceuticals and vaccines, with a focus on high-growth therapeutic areas. d. Potential impacts, risks and opportunities: Sanofi has in place a process to identify potential impacts, risks and opportunities within its sector, including regulatory changes, market competition and advancements in medical technology.

Key stakeholder groups and engagement

Below is a list of our key stakeholder groups. The overall goal of our engagement process is to build relationships, advance Sanofi's objectives and sustainability commitments and obtain outside views. We consider the outcomes of this dialogue in our CSR strategy. The examples provided in the table are not exhaustive.

The sustainability report was presented to the Bureau of the Comité de Groupe France on February 13, 2025.

Amendments to strategy and business model to address the views and interests of stakeholders

In 2021, Sanofi built its CSR strategy based on the perspectives of internal and external stakeholders via a materiality assessment and in alignment with its business priorities. The identified topics were used to design the CSR strategy — built into Sanofi's core strategy and business model — thereby addressing stakeholders' views and interests.

We regularly engage with our patients to ensure that their key concerns and expectations are included in our strategy, especially regarding products and geographical markets. We are also involved in several health and pharmaceutical trade associations that address various CSR topics. This gives us further insight into sector trends and stakeholder interests with respect to products and geographical markets in particular.

The table below indicates some of the key shareholder views and interests, as identified through ongoing dialogue, which influence our corporate and CSR strategies in the years ahead.

Plans for continuously improving stakeholder engagement

In 2024, we launched the Sanofi Patient Promise to further strengthen our engagement with patient organizations. We will report back on its effectiveness in 2025. Through ongoing dialogue, we are deepening our commitment to patients to better understand and serve their needs. For more information, see section 3.3.3.3. Patient Engagement.

How administrative, management and supervisory bodies are informed of views and interests of affected stakeholders with regards to impacts

The CSR strategy and its performance is presented to the Board of Directors at least once a year. The presentation includes new insights and views gathered from stakeholders. The quarterly presentations to the Appointments, Governance and CSR (AGC) Committee also address stakeholder views and interests in light of Sanofi's CSR strategy and proposed adjustments. The Audit Committee oversees the Double Materiality Assessment process and outcomes performed in 2024 in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance - refer to the CSRD Disclaimer and Explanatory Note. and thereby seeks to be well informed of Sanofi's analysis of its impacts on affected stakeholders.

The executive leadership team is also regularly informed of views and interests of affected stakeholders via the communication of results of key stakeholder surveys, such as One Voice (employee survey) and an annual ESG investor perception study. Key functions in contact with stakeholders, such as CSR, Public Affairs and Media Relations, report directly to Sanofi's Head of Corporate Affairs who is a member of the Executive Committee.

Material impacts, risks and opportunities

The tables below list the impacts, risks and opportunities (IROs) identified as material to Sanofi following the double materiality assessment (DMA) performed in 2024 in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance - refer to the CSRD Disclaimer and Explanatory Note. The full descriptions and all disclosures in accordance with ESRS 2 - SBM-3 can be found under the relevant topical standard.

Next to each (sub) topic in the tables it is specified: • whether it has a positive impact (IP) or negative impact (IN), or is a risk (R) or an opportunity (O); and • where the topic is located in Sanofi's value chain, i.e. upstream, own operations, or downstream.

All IROs have been scored regardless of the mitigation measures implemented by Sanofi. The materiality assessment was conducted based on gross impacts, risks and opportunities in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance. For more information on the methodology, see section 3.1.4.1. IRO-1: Description of the process to identify and score IROs.

ENVIRONMENT

SOCIAL

GOVERNANCE

*The following IROs are entity-specific and not explicitly covered by the ESRS: • Medical and Bioethics (I) • Supply Chain Continuity (I)

Sanofi conducted its double materiality assessment at group-level in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance - refer to the CSRD Disclaimer and Explanatory Note.

Current and anticipated effect of its material IROs on Sanofi's business model, value chain, strategy and decision-making

Sanofi has longstanding experience in identifying material topics. It published its first materiality assessment in 2010, and has performed an update approximately every two years based on a formalized stakeholder engagement process. The main goal of our legacy materiality assessments was to ensure the appropriateness and relevance of our CSR strategies in addressing key business and stakeholder concerns.

The material IROs identified in the DMA are intended to generally align with the CSRD methodology, as described in ESRS 1, and previous materiality assessments results. We believe that our CSR strategy already addresses aspects of the most material impacts and risks identified in the DMA:

The IROs with lower materiality are addressed in dedicated policies and approaches to ensure adequate focus and resource allocation.

Linking material impacts to Sanofi's strategy and business model

Our impacts originate from, and are connected to, our strategy and business model. • As a pharmaceutical company with a diversified product portfolio, we are contributing to better healthcare outcomes through our medicines and vaccines and, therefore, have positive impacts on patients. • We serve patients worldwide: medical innovation seeks to balance benefits and risks to improve patients' lives, making patient safety a priority. • We have a large international industrial footprint: the production, distribution and use of Sanofi's product has environmental impacts. • Sanofi's international upstream and downstream value chain to support our efforts can create negative environmental and social impacts, such as environmental pollution and labor rights issues. • We operate in a highly regulated environment: the pharmaceutical sector has a strong focus on medical ethics and business conduct requirements.

Financial effects of Sanofi's material risks

The material risks identified in the DMA as per the CSRD methodology are already included in our risk management framework. These identified material risks are gross risks in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance and do not take into account mitigation measures in place. The level of control over those risks is monitored by our risk management governance process. We therefore do not expect a material adjustment to the financial statements due to those material risks.

Resilience of Sanofi's strategy and business model regarding its material impacts and risks

Key gross resilience-related risks identified during the DMA process in accordance with the CSRD methodology are: • climate adaptation — the risk that we do not anticipate and prepare for the adverse effects of climate change by taking appropriate action to prevent or minimize the damage they can cause to our business (includes transition and physical risks); • impacts and dependencies on ecosystem services, i.e. provisioning and supporting services — the risk that we or our suppliers are unable to secure the natural resources needed to produce and package its medicines and vaccines (e.g. plant materials, animal raw materials, materials used in packaging) and the risk that the prices of such natural resources increase significantly due to scarcity and competition for dwindling resources, leading to financial risk; • talent attraction — the risk that we will be unable to attract and/or retain people with the necessary skills and experience, which could adversely affect our ability to implement our strategy and attain our objectives (financial risk); and • supply chain continuity — the risk of supply chain interruptions or loss of inventories due to unforeseen events, which could lead to loss of revenue.

The above resilience issues are monitored by Sanofi's risk management governance.

Description of the process to identify and score IROs

Sanofi developed its DMA methodology in early 2024 in accordance with EFRAG's ESRS 1 guidance "IG 1 Materiality Assessment Implementation Guidance" and "IG 2 Value Chain Implementation Guidance" (December 23, 2023 versions). Sanofi consulted the final versions of the IG (May 2024). Sanofi's DMA methodology seeks to account for EFRAG's guidance with Sanofi's existing risk processes and thresholds established at Company level. Sanofi's DMA was conducted top-down at Company-level.

Identification of IROs to be assessed and their definition

Sanofi created a list of potential IROs, pre-filled with the IROs derived from the sustainability matters covered in the relevant topical ESRS as per ESRS 1, Appendix A, AR 16, up to the sub-sub-topic level for the DMA, where sub-sub topics are defined in the Standard. Some sub-sub-topics were merged into the same IRO when no difference in materiality scoring was identified. In biodiversity, for example, land degradation, desertification and soil sealing IROs were bundled under impacts on the extent and condition of ecosystems. Where no sub-sub-topics are defined in ESRS 1 AR 16, materiality was assessed at the sub-topic level.

Sanofi then added to the list other potential IROs relevant to Sanofi (e.g. Medical and Bioethics) that are not covered or not explicit enough under the sustainability matters described in ESRS 1 AR 16. These IROs were already identified in the previous materiality assessment conducted by Sanofi in 2022 (based on available guidelines at the time, for more information on the previous assessment, see our Statement of Extra-Financial Performance for 2023, Section 3.2.3. Double Materiality Assessment).

To identify additional risks not listed in the ESRS, Sanofi compared the list of potential IROs with entity-specific risk profiles (assessments updated annually) and added potential risks where necessary, identified pursuant to the DMA and the CSRD process, in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance - refer to the CSRD Disclaimer and Explanatory Note.

Consideration of operational and regional specificities

Prior to the identification of IROs, Sanofi completed a context analysis as recommended under EFRAG IG 1. It identified its key products and activities, geographical regions, affected stakeholders and value chain participants, as specified in SBM-1. Sanofi is a multinational company with a broad geographical and industrial footprint, serving patients worldwide. For more context see "Evaluation of gross versus net impacts, risks and opportunities" below.

Sanofi considered that business relationships in lower-income countries are higher risk, in both human rights and environmental matters, due to less stringent national regulations in place. To identify human rights-related adverse impacts, for example, Sanofi assessed the presence of upstream and downstream business relationships in non-OECD countries.

Use of Sanofi's due diligence process for the identification of negative impacts

Sanofi is subject to the French duty of vigilance law of March 27, 2017 for parent and ordering companies. Sanofi's Vigilance Plan covers the Company's activities, those of its fully consolidated companies, and the activities of tier-one suppliers and subcontractors. The previous Vigilance Plan's salient issues — as identified and managed using Sanofi's methodology for identifying and prioritizing major risks to people and the environment — were considered when identifying IROs. Impacts identified pursuant to the DMA, from the CSRD perspective have then been used to define the Vigilance Plan salient issues, moving forward.

IRO description

For each IRO identified pursuant to the DMA in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance - refer to the CSRD Disclaimer and Explanatory Note, Sanofi prepared a description of the impact, risk or opportunity as it manifests for Sanofi. It is therefore the company-specific definition, which could nonetheless be applicable to several companies. The descriptions were reviewed together with the owners of the topical ESRS.

External stakeholder consultation

Sanofi did not directly involve external stakeholders for the CSRD-specific DMA due to the short period for conducting the first analysis and because stakeholders had been consulted relatively recently, in the previous financial year (second half of 2022), and their input was still considered relevant. Sanofi may consider further involvement of external stakeholders in the DMA process in the future. Sanofi engaged with external stakeholders during its materiality analysis in 2022. In this exercise, external stakeholders were consulted on the 16 material topics that had been defined. The topics were grouped into bundles, and each stakeholder was assigned to one bundle, associated with his or her area of expertise. Stakeholders were asked their views on the IROs for Sanofi regarding the topics in their assigned bundle. The outputs of the interviews were aggregated for all interviewees and summarized in factsheets, one for each topic.

Value chain and own operations

For each IRO, it was defined whether the impact, risk or opportunity occurred in Sanofi's own operations, or its upstream or downstream value chain. An impact can occur at several levels for the same IRO. Below are the definitions of the three areas which also apply to impact and financial materiality.

Evaluation of gross versus net impacts, risks and opportunities

For the materiality assessment, Sanofi assessed gross impacts, risks and opportunities in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance - refer to the CSRD Disclaimer and Explanatory Note. The gross approach evaluates impacts, risks and opportunities without taking into account measures put in place by the company to prevent, mitigate or correct impacts or risks, hence without considering the level of control on impacts or risks. However, Sanofi did consider context when assessing gross impacts, risks and opportunities. The context considered includes (but is not limited to): • that Sanofi is a pharmaceutical company; • that Sanofi is a European company, subject to European (and specifically French) regulations; • Sanofi's industrial footprint; • Sanofi's product portfolio; and • that Sanofi serves patients worldwide.

Examples of "measures" or "levels of control" that were not taken into account are for instance the Planet Care program and Sanofi's anti-corruption and anti-bribery program.

This gross approach, in accordance with the CSRD methodology, does not enable any direct comparison with risk factors disclosed as part of financial disclosures which also take into account mitigation measures and level of control.

Assessment and scoring of IROs

The final materiality score was calculated as follows: • Impact Materiality = Severity² x Likelihood • Financial Materiality = Size of Financial effect² x Likelihood

Severity and financial effect were squared to give further emphasis to the severity over the likelihood of the impact, risk, or opportunity. This practice is aligned with Sanofi's risk methodology and ensures that the most severe risks and impacts are adequately captured and reflected by the methodology.

The following materiality rating matrix was obtained using this methodology:

Materiality thresholds (risk methodology)

Each identified IRO is rated between 1 and 100 — 100 being the highest score possible (Severity at 5² x Likelihood at 4). The threshold for the materiality of an issue was set at 18 and above by Sanofi's leadership.

An existing in-depth scenario analysis has been leveraged to assess climate related IROs.

Severity

In line with ESRS 1, for impact materiality, severity was assessed using three sub-criteria: Scale, Scope and Remediability. Any of the three characteristics of severity can make an impact severe. For the ratings, Sanofi selected those of its risk methodology where issues are rated as 1, 2, 3, or 5 for the equivalent of "severity". Sanofi put in place and applied a process to determine the correspondence of each rating number with the double materiality sub-criteria. Judgements on the ratings are based on available studies, existing function risk profiles and expert opinions, and are therefore subjective and subject to ongoing review and change in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance - refer to the CSRD Disclaimer and Explanatory Note.

For any particular IRO under evaluation, the highest rating of the three severity sub-criteria is used as the final severity score. For example, if an IRO has a severity scale rating of 2, a scope of 5 and a remediability of 1, the final severity score is set at 5.

Decision-making process and internal control procedures

General validation process

In general terms, Sanofi performed the double materiality assessment as follows:

1. The ESG team completed the evaluations based on internal studies and documentation or external scientific reports. The team also considered the previous materiality assessment constructed with internal and external stakeholder views.
2. The evaluations, were then discussed, adjusted, and approved with the subject-matter experts. The evaluations were also compared to the function-specific risk profile where available (risk profiles are updated annually).
3. The finalized file was submitted to and reviewed by Sanofi's Risk Management Team.
4. The CSRD-related materiality ratings, determined in accordance with CSRD, were approved by Sanofi's Senior Leadership, via presentation to the relevant Committees:
   1. the Planet Care Steering Committee for Environmental IROs;
   2. the CSR Committee for Social and Governance IROs.

Integration of the identification, assessment and management of IROs in the overall risk management process

Sanofi has historically integrated risk management in its processes at the highest decision-making level. The Risk department was initially created within the CSR function, linked to the Executive Committee, to facilitate collaboration between the audit, risk and CSR functions. Initially, three areas were included in the risk analysis: • the impact on Sanofi's business which is now clarified as the impact on Sanofi's profit and growth; • the impact on patients which has since been extended to employees; and • the impact on Sanofi's reputation.

The latter, reputational risk, has undergone the most changes to become the overall impact on stakeholders. This includes Sanofi's impact on society as well as the legal risk in terms of responsibility which now goes far beyond our legal responsibility to shareholders. Given the early integration of risk assessment and management into Sanofi's strategy and business model, impacts such as those on human rights and animal welfare have been assessed for several years, independent of their financial materiality to the Company.

The finalized double materiality assessment was submitted to Sanofi's Risk Management team. The risk team performed an alignment check to ensure consistency with Sanofi Group risk ratings. Inconsistencies were discussed and adjustments were made to the double materiality assessment. Each IRO was reviewed individually, as sometimes calculated ratings do not accurately reflect the prevalence of a risk or impact.

This years' CSRD DMA was reviewed by the Risk Committee followed by the Audit Committee.

All disclosures related to IRO-2 can be found in the appendix of the sustainability statement, page 127.

Sanofi's commitment to Net Zero

Our updated commitment towards Net Zero by 2045 was validated by the SBTi on January 19, 2023.

The SBTi's Target Validation Team has assessed Sanofi's corporate science-based targets and determined that the 2030 Scope 1 & 2 target and the 2045 Net Zero target are in line with a 1.5 °C trajectory.

To address Sanofi's corporate emissions, a 2045 Scope 3 target was set for a 'net zero' aligned 93.9% of base-year Scope 3 GHG emissions. Under the target, modeled using the Absolute Contraction approach, absolute Scope 3 emissions would be reduced by 30.0% by FY2030 from the FY2019 base. Our 2030 target meets the minimum ambition for the 2 °C pathway under the Absolute Contraction Approach.

Main GHG reduction targets

The main GHG reduction targets versus the 2019 baseline are described in the table below:

Additional supporting goals

1. Increase our annual supply of renewable electricity to 80% in 2025 and then 100% in 2030;
2. Invest in carbon offset projects that combine a positive impact on both communities and the environment to offset residual emissions from 2030, on top of a science-based emission reduction trajectory;

For Sanofi to reach these ambitious commitments, the company has defined an emissions reduction program and has set up several action plans across its own activities (Scopes 1 & 2) and full value chain (Scope 3).

Decarbonization levers for reducing Scope 1 & 2 GHG emissions and progress to date

The figures below detail the levers to achieve the Scope 1 & 2 target to reduce GHG emissions by -55% by 2030 from a 2019 baseline, as well as progress to date.

Scopes 1 & 2 (GHG protocol): 2019 GHGs emissions to 2024 (-47%)

Scope 1 & 2 emissions are linked to energy consumption, leakage of refrigerants and Sanofi's vehicle fleet: Sanofi has adopted an approach that combines energy efficiency (consume less, consume smarter) with decarbonization of energy supplies (consume differently).

Reduced consumption and improved energy efficiency

• Sanofi's energy efficiency approach extends to relevant activities, buildings, processes and utilities. It takes in the design of new buildings, and the medical representative vehicle fleets. Energy saving programs are in place at all relevant sites. Sanofi's Energy efficiency program is managed via a management system that covers all relevant operations, includes a reference framework, an internal audit and performance review program. – The Energy management system of Sanofi has been assessed and certified as meeting the requirements of ISO 50001:2018 for the following activities: research, development, manufacturing, distribution centers and related support functions performed in the Business Units. • Various levers are being activated (depending on the activity carried on at the site), with a specific focus on air treatment systems that ensure high-quality environments in manufacturing and R&D buildings, which can account for up to 70% of the energy consumption of these buildings. However, these systems are important for the quality and safety of Sanofi's medicines, and any alterations must be validated. The Company therefore plans to reduce its energy consumption at existing facilities by 15% in 2025, compared to 2021. • Internal standards have been issued, requiring energy efficiency to be built into the design and selection of plant and equipment that use energy. Sanofi's Sustainable Buildings Charter also helps promote sustainable and energy-efficient buildings that are, in many cases, certified to LEED (Leadership in Energy and Environmental Design), BREEAM (Building Research Establishment Environmental Assessment Method) or HQE (Haute Qualité Environnementale) standards.

Decarbonization of energy

Sanofi also operates a low-carbon energy policy, favoring the use of lower-carbon energies for projects and buying in electricity from certified renewable sources. In September 2020, the Company made a public pledge that by 2030, 100% of the consumed electricity will come from renewable sources, by joining the RE100 initiative. Transition to renewables relies on the following strategies: • installation of solar panels; Sanofi can self generates up to 25 GWh per year. The largest plant, which will produce 11.5 GWh per year, is located on the Sisteron site. Progress to date: the output from the solar panels installed rose from 0.5 GWh at the end of 2021 to 18.8 GWh at the end of 2024, representing between 5% and 20% of consumption on the nine largest project sites located in France, India, Italy, China, Spain & Brazil; • guaranteed certified origin energy contracts; • a renewable electricity Power Purchase Agreement (PPA) is in place in Mexico to supply energy to Sanofi's two Mexican sites. Plans to extend this model to Europe and the United States is in progress; we notably signed 11 Power Purchase Agreements (PPA) in 2024 for a maximum of 20 years for an annual volume of 238.5 GWh per year, representing 50% of electricity needs in France; • transition to renewable thermal energy to meet heating needs by increasing the use of biomethane and biomass. A long-term biomethane supply contract (2024-2030) has been signed in France for 210 GWh per year.

As a result, the use of renewables has been raised from 16% of electricity consumption in 2019 to 85% in 2024.

Refrigerant control

Regarding emissions linked to the leakage of refrigerants, Sanofi has put policies in place to manage the use of carbon-intensive refrigerants like HFC & HCFC. These include switching to substitute refrigerants with a lower global warming impact, improving leak prevention, and systematically analyzing accidental discharges so that lessons can be learned and shared across sites. Progress to date: since 2019, Sanofi has reduced the impact of refrigerant discharges by 41%, avoiding 9,300 tons of CO2e emissions.

Sustainable vehicle fleet

We have also pledged to optimize our vehicle fleet (subject to availability of suitable models in the regions where we operate), to reduce greenhouse gas emissions from our fleet. Our aim is for our eco-car fleet to reach 80% of total fleet by 2030. An eco-car fleet as defined by internal criteria combines hybrid, electric and biofuel vehicles.

Regarding emissions from Sanofi's vehicle fleet, the global car fleet policy was reviewed in 2023 so as to cover the cost of installing EV charging points at home for employees who opt for an electric vehicle. A policy for sales representative travel was also introduced to implement an eco-driving policy and culture (e.g., with eco-driving courses), improve fuel efficiency, reduce travel and convert Sanofi's car fleet to an eco-fleet criteria (biofuel, hybrid and electric vehicles). Progress to date: already 50% of Sanofi's fleet meets the eco-fleet criteria and CO2e emissions from the sales forces were cut by 50% versus a 2019 baseline.

Decarbonization levers for reducing Scope 3 GHG emissions and progress to date

Scope 3 emissions account for 91% of Sanofi's total emissions. The figures below detail the levers to achieve the Scope 3 target to reduce GHG emissions by -30% by 2030 from a 2019 baseline, as well as progress to date.

Scope 3 (GHG protocol): 2019 GHGs emissions to 2024 (-10%)

Decarbonization of inputs and raw materials

In terms of decarbonization, we are actively working to reduce the use of virgin resources and reuse materials more efficiently in order to mitigate the impact of our products' GHG emissions. Emissions from the purchase of raw materials and subcontracting represent half of Sanofi's emissions (51% for in 2024), making them the primary lever for decarbonization. To reduce the impact of our products, we are reviewing our manufacturing processes and seeking to replace the most carbon-intensive raw materials with more environmentally sustainable alternatives. The use of alternative supplies for certain carbon-intensive raw materials will improve our level of emissions from 2024 onwards. We are identifying less carbon-intensive suppliers for our main raw materials. The country of manufacture and origin of our raw materials has become a key element of decision-making when choosing suppliers. For example, the emissions linked to one of our most carbon-intensive raw materials has been significantly reduced since 2019 by moving sourcing to less carbon intensive suppliers in Europe (Spain and France).

Supplier engagement

Purchased goods and services and capital goods represent 67% of Sanofi's total emissions. We are therefore engaging with suppliers to work towards their improving their environmental footprint and fighting climate change. Sanofi's Supplier Engagement Program: • sets clear environmental expectations on activities to be completed; • provides guidance on how to complete activities; and • supports suppliers less advanced/mature on sustainability matters.

As part of the program, those suppliers need to commit to: • calculate their Scope 1+2+3 emissions and report them publicly; • get a CDP Climate score of A or B; • engage with their own supply chain; • set SBTi (Science Based Targets initiative) targets; and • sets a target for 100% renewable electricity by 2030.

In 2024, there were 205 suppliers engaged in the Supplier Engagement Program, covering 75% of supplier-related emissions and representing 50% of our procurement spend.

Moreover, through the Energize Program, a collaborative effort within the pharmaceutical industry, we help our shared supply chains convert to renewable energy. We are also a member of the Pharmaceutical Supply Chain Initiative where, among other efforts, a decarbonization maturity model has been developed to help suppliers evaluate how responsible their current practices are toward Net Zero, as well as provide corresponding content to help them proceed to the next level.

In 2023, the Sanofi CEO signed an Open Letter to Suppliers published by members of the Sustainable Markets Initiative Health Systems Task Force to set out minimum targets for supplier decarbonization.

Reducing air cargo shipments in favor of more sustainable modes of transportation

To decrease emissions related to the distribution of pharmaceuticals within our international transport network, we are using less air transport and more sea shipment, road and rail shipment, which are less carbon-intensive. Our other decarbonization efforts include: • increasing the fill levels of trucks and sea containers; • developing rail for intra-European deliveries and France-China deliveries; • experimenting with electric and natural gas vehicles for in-town deliveries and for pre-carriage shipments; • designing packaging to reduce volume and optimize transport; • grouping product shipments and pooling transport to reduce the number of trucks on the road; • starting analysis of new sea shipment with hybrid or renewable propulsion; • developing multimodal transports solutions.

Since 2023, we continued to reduce our carbon footprint by maximizing sea transport for vaccines shipments (excluding flu vaccines) from France to 13 countries (Australia, Japan, Malaysia, South Korea and Brazil for instance). Potential new sea routes are under assessment or validation for the transport of vaccines.

Reducing other downstream emissions

Downstream emissions will be impacted by packaging and device improvements, such as Sanofi's commitment to PVC-free blister packaging for its vaccine syringes. Such actions contribute to the decarbonization of downstream emission categories such as 'transportation and distribution' and 'end of life treatment of sold products'.

Investments planned to support the climate transition roadmap

Sanofi has estimated the costs of its climate transition roadmap for its whole scope until 2030. The Executive Committee, through the annual strategic planning process, has validated the funding needed to meet 2030 public climate commitments. The investment represents between €300 million and €400 million annually on average.

Alignment of the transition plan with the overall business strategy and financial planning

The Planet Care roadmap is embedded in our strategic financial planning processes. We work on the integration of our climate change mitigation and adaptation projects, into our short and long-term strategic financial planning process. This is an annual process culminating in executive endorsement of key strategic investments over a ten-year horizon.

Approval of the transition plan by supervisory bodies

Sanofi's Board of Directors validates the Company's overall strategy, oversees its implementation, and regularly monitors delivery. As part of this role, the Board monitors Planet Care (Sanofi's environmental program), including the climate commitments, and reviews the climate transition plan at least once a year.

With regard to the Sanofi's climate change mitigation transition plan, it aims to provide an understanding of the Company's past, present and future mitigation efforts, to ensure that its strategy and business model are compatible with the transition to a sustainable economy. It is understood, however, that to date there is no consensus on targets or trajectories for reducing greenhouse gas emissions at company level (the objectives being set at national level), which would make it possible to guarantee the compatibility of a strategy with a scenario limiting global warming to 1.5 °C, in accordance with the Paris Agreement.

Policies related to climate change mitigation and adaptation

The full description and objectives of our CSR strategy may be found in ESRS 2 and our Road to Net Zero is presented in detail in our transition plan disclosure.

Aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework, reflecting key financial stakeholders concerns, our Climate-related Financial Disclosures & Risks and Opportunities program aims to identify climate risks and opportunities and develop and implement adaptation plans to address climate risks and opportunities.

Most of the sub-topics identified in the Climate Transition and Physical Impact risk category are monitored in dedicated working groups. Short-, medium- and long-term mitigation plans have been defined and are being implemented. Monthly reporting is escalated to the Climate Risk and Opportunities Committee (CROC) and progress is presented quarterly to the Executive Committee Climate Risk Owner by the Global Heads of Risk Management, CSR and the CROC leader.

Targets and actions related to the Climate Change — Road to Net Zero

The main targets and progress against targets are presented in the following sections: 3.2.1.4.2. GHG emissions for targets related to GHG emission reductions and 3.2.1.2. Transition plan for climate change mitigation (E1-1) for targets related to decarbonization levers. Please refer to section 3.2.1.2. Transition plan for climate change mitigation (E1-1) for actions and resources related to the Climate Change – Road to Net Zero sub-program of the CSR policy.

Targets and actions for the Climate-related Financial Disclosures & Risks and Opportunities

We are working to identify targets to drive our adaptation policies and actions. We aim to define these targets by the end of the 2026 fiscal year. The internal targets are set by each working group in accordance with their adaptation plans and internal stakeholders, who monitor the actions, and are validated by the Climate Risks & Opportunities Committee (CROC).

The table below outlines the high-level actions corresponding to each of the identified climate-related risks and opportunities, as well as the resources currently assigned to these actions:

The main targets and progress against targets are presented in the following sections: 3.2.1.4.2. GHG emissions for targets related to GHG emission reductions and 3.2.1.2. Transition plan for climate change mitigation (E1-1) for targets related to decarbonization levers. Please refer to section 3.2.1.2. Transition plan for climate change mitigation (E1-1) for actions and resources related to the Climate Change – Road to Net Zero sub-program of the CSR policy.

Climate-related targets and progress

Main GHG reduction targets versus the 2019 baseline:

Additional supporting goals:

1. Increase our annual supply of renewable electricity to 80% in 2025 and then 100% in 2030;
2. Invest in carbon offset projects that combine a positive impact on both communities and the environment to offset residual emissions from 2030, on top of a science-based emission reduction trajectory;

Progress to date on key targets:

Scope 1 & 2 emissions reduction:

• 47% reduction achieved by 2024 (versus 2019 baseline)
• From 708 ktCO2eq in 2019 to 374 ktCO2eq in 2024
• Target: 55% reduction by 2030

Scope 3 emissions reduction:

• 10% reduction achieved by 2024 (versus 2019 baseline)
• From 4,265 ktCO2eq in 2019 to 3,823 ktCO2eq in 2024
• Target: 30% reduction by 2030

Renewable electricity:

• 85% of electricity consumption from renewables in 2024 (versus 16% in 2019)
• Target: 100% by 2030

Vehicle fleet:

• 50% of Sanofi's fleet meets eco-fleet criteria
• CO2e emissions from sales forces cut by 50% versus 2019 baseline
• Target: 80% eco-fleet by 2030

Supplier engagement:

• 205 suppliers engaged in the Supplier Engagement Program in 2024
• Covering 75% of supplier-related emissions
• Representing 50% of procurement spend

Other achievements:

• 41% reduction in refrigerant discharge impact since 2019, avoiding 9,300 tons of CO2e emissions
• 18.8 GWh generated from solar panels at the end of 2024 (versus 0.5 GWh in 2021)
• 11 Power Purchase Agreements signed in 2024 for 238.5 GWh per year
• 210 GWh per year biomethane supply contract signed for France (2024-2030)

Sanofi's Climate risks scenario analysis

In 2023, Sanofi updated and published the results of its climate risk analysis performed in 2021. Sanofi used scenario analysis to perform a physical and transition risk assessment based on three of the IPCC climate change scenarios under two different time horizons (2030 and 2050): • a 1.5 °C scenario (RCP2.6) which assumes aggressive mitigation measures leading to transitional constraints; • a 4 °C scenario (RCP8.5) which reflects limited climate action, resulting in more pronounced physical impacts; and • a "most-likely" scenario based on a 2.8 °C warming projection (RCP4.5) to complement the analysis, providing a balanced view of potential risks and opportunities.

We did not use the short-term (2025) time horizon in our analysis, considering the short timeframe and the ongoing roadmaps to address short-term risks.

For transition risks, Sanofi also used IEA transition scenarios (IEA Net Zero Emissions and IEA Sustainable Development Scenario). In particular, IEA assumptions for energy prices and carbon costs in 2030 are used to estimate financial impacts: • IEA NZE 2050 scenario which is ambitious and requires significant changes in policy, technology, and behavior; and • IEA STEPS (Stated Policies Scenario) which is more reflective of the current trajectory without additional interventions.

Climate-related scenarios used by Sanofi

Anticipated financial effects from material physical and transition risks

This climate-scenario analysis was used to assess (i) the resilience of each aspect of Sanofi's own operations and value chain (upstream, downstream) to climate change scenarios, (ii) the materiality of climate-related risks, and (iii) the scale of potential opportunities for the business to capitalize on prospects from the transition to a low-carbon future. Sanofi conducted an assessment covering all climate areas to determine which climate change adaptation sub-risks and opportunities could have a financial impact in the medium term (2030) and the long term (2050), along with an approximate scale of impact.

Four sub-risks (Carbon Costs, Raw Material Scarcity, Stakeholder Pressure, Natural Disasters) were evaluated as material for Sanofi according to our DMA and its specific thresholds. These four sub-risks were aggregated into the Climate change adaptation risk of the DMA.

As discussed elsewhere in this chapter, risks that are "material" from a CSRD perspective are not necessarily "material" from a securities law or financial statements perspective in accordance with the CSRD and related methodology established by EC, EFRAG and other guidance - refer to the CSRD Disclaimer and Explanatory Note. Climate scenarios used are compatible with the climate-related assumptions made in Sanofi financial statements.

Financial impact assessment of material climate risks

The table below describes the financial impact of each risk identified. All financial effects assessed as part of the analysis are potential estimates, not exact financial effects to be expected, and include assumptions about Sanofi's operations in the future. The actions undertaken to support the adaptation of Sanofi's strategy to those sub-risks are described in the Actions section hereafter.

Substances of concern and substances of very high concern

Policy and Management Approach

Our laboratory and manufacturing activities may require using some substances placed on the candidate list of substances of very high concern (SVHC) under the EU REACH regulation. All sites monitor compliance with emissions limits set in their respective operating permits. In all countries where we have business operations, we also seek to comply with applicable regulations regarding the use of these substances. A task force ensures a monitoring of SVHC-related regulatory developments, regular assessments of their impacts on our activities and develops plans to mitigate or prevent impacts. In line with our eco-design approach, we strive to reduce, minimize or replace the use of substances of very high concern by less hazardous substances when available and feasible, without compromising patients' access to medicines.

Targets

In line with our eco-design approach, we strive to reduce, minimize or replace the use of substances of very high concern by less hazardous substances when available and feasible, without compromising patients' access to medicines. No specific target has been set at global level. Substitution plans are engaged on a case by case basis in line with applicable regulations.

Quantitative Data

SVHC data reported here relate to our manufacturing operations and related activities and cover a list of 53 substances placed on the candidate list of substances of very high concern under the REACH regulation.

Methodology

A preliminary review of the candidate list of SVHC for authorization under the REACH regulation was done to identify those are the most likely used in Sanofi manufacturing activities. A list of 53 SVHCs was established based on the above mentioned review and was used as a basis for collecting and consolidating data from Sanofi manufacturing sites worldwide.

Amounts of SVHC procured and used cover SVHCs as such or in pre-identified mixtures in manufacturing operations and related activities (cleaning, quality control). Amounts of SVHC leaving facilities as part of products cover products for which the SVHC content is >0.1% (w/w). Amounts of SVHC that leave facilities as emissions (air / water) were calculated from regulatory monitoring data when applicable, or determined by mass-balance based on worst-case assumptions. For each category a reporting threshold of 1kg/y was applied.

For 2023, total amounts were consolidated from yearly figures provided by sites. For 2024, total amounts were determined from a consolidation of Q1 to Q3 figures provided by sites and an estimate of Q4 calculated as an average quarterly value from Q1 to Q3 data.

Waste

Waste Management Targets:

• By 2025: Reuse, Recycle or Recover at least 90% of waste (3R program)
• By 2025: Reduce landfill rate to less than 1%
• By 2030: Reduce waste index by -30% versus 2019

Waste Hierarchy: Sanofi applies a five-layer waste hierarchy with "zero waste" at the top, followed by reduction at source, reuse, recycle/compost, incineration with energy recovery, and landfill as last resort.

2024 Waste Performance:

Radioactive Waste (2024): 2.71 tonnes

Key Waste Streams:

• Used solvents: 23% of total waste (58% regenerated and reintroduced into industrial process in 2024)
• Heparin production biowaste: Over 99% recovered through biomethane production
• Egg waste from flu vaccine production: Composted or used for methanization
• Radioactive waste from R&D activities: Declared to authorities per local regulations

Waste Management Programs:

1. Landfill-Free program: Target less than 1% waste to landfill by 2025
2. 3R program: Target more than 90% reused, recycled or recovered by 2025
3. Performance & Digitalization program: Standardize processes, leverage partnerships, implement digital tracking

Significant Achievements:

• One US facility switched from landfill to composting for egg waste (June 2022), reducing landfill by nearly 4,000 tons annually
• One French site started selling 1,800-3,000 tons/year of material previously treated as hazardous waste to another company for reuse (late 2023)

Methodology Notes:

• Distinction between hazardous/non-hazardous follows EU Decision 2000/532/EC for EU countries and local regulations elsewhere
• Waste from soil decontamination operations excluded
• Recovery rate = waste recycled + incinerated with energy recovery
• 3R rate = (recycled waste + waste with energy recovery) / (total waste + solvents recycled on-site)
• Site considered landfill-free when disposal rate < 1%