2022 Annual Report 15 30% Club France Investor Group Gender Pay Gap (SAFRAN, Aerospace & Defense) The equal pay gap and gender pay gap are two different notions. While equal pay gap means equal pay for equal work and no discrimination based on gender (which is forbidden by law in France), the gender pay gap captures the under-representation of women in senior, higher paying positions. Closing the gender pay gap requires measures to break the glass ceiling through adequate, supportive, and relevant HR policies. It is different than possible discrimination captured through the equal pay gap. When it comes to action plans to increase the share of women in senior positions and reduce the gender pay gap, we need proactive steps such as setting a target to increase female representation at management levels first and to strengthen the female talent pool to naturally have more candidates for senior positions promotion. Setting targets will hold the company accountable and can show the direction and ambition of the company. We understand the communication challenges behind target setting such as the risk of demotivating men. For the engaged company, this is not an issue as the objectives are clearly communicated and not perceived at the expense of men. A good practice to meet targets is through internal promotion rather than external recruitment. For this company, there is a specific context with a pyramid of age that will facilitate more women onboarding. As such, the company has adopted a voluntarist approach with 75% of retiring workers being replaced with women with equal competencies. We believe such an opportunity exists at many French companies with the 60s retiring in this decade. The company is activating two levers to reduce gendered pay. As explained above, developing the female talent pipeline but also using a pay increase envelope as a way of catching up and reducing the gap actively. Case Study 2