La Tribune - This meeting with investors was an important moment for Thales who presented the group's strengthened strategy in matters (environmental, social and governance).What are the main lines of this ambition? Patrice Caine - We unveiled our new strategy in terms of ESG criteria last Tuesday to our investors last Tuesday to our investors last Tuesday to our investors last Tuesday to our investors.We set ourselves quantified objectives, in particular on important criteria such as CO2 emissions generated by Thales.How does the group want to go further and faster on the reduction of its CO2 emissions directly from its activity and that of its subcontractors?Today, we are able to achieve a 35 % reduction target of our emissions from 2023, and no longer 20 %.We have already exceeded the goal that we set ourselves for 2023 and decided to accelerate.We are also mobilized to reduce our CO2 emissions by 50 % in 2030 (rather than 40 %).Finally, we gave ourselves a goal of "net zero" carbon neutrality in 2040.This goal is completely new.Thales therefore accelerates to reduce his carbon footprint faster than expected.We have also presented very important ESG indicators relating to the environment, inclusion, with in particular the feminization of governing bodies, occupational safety and ethical issues, especially in digital.

That is to say? We made public an ethical digital charter matured.Other groups have started to acquire it, such as IBM and Capgemini for example.It appeared to us important to think collectively and with humility on this subject in order to give a reference framework, a guide for our teams working on these digital technologies.Why now ?Because these technologies, such as artificial intelligence, big data or connected objects, change organizations and collaboration in depth.They also raised a certain number of questions, such as the place of humans or the unconscious biases generated by certain algorithms.We have made the choice to approach these subjects proactively to affirm that the systems and products that we conceive must allow a dialogue with humans at any time, be resilient and secure and take into account the imperative need to preserve ourenvironment.

Why did you present Thales from this angle? This seemed more original or, in any case, more new in our dialogue with investors: present our activities through the major societal challenges that our trades tackle.For an engineering and tech group, it is important to show how, beyond its reductions in CO2 emissions, Thales can contribute positively to three major societal issues: to make the world safer (security anddefense), more environmentally friendly and more inclusive, more equitable.We therefore gave our investors another key to reading the activities of Thales.It was an important moment which showed them our global action in terms of ESG criteria, from environmental issues to our mode of governance.

Do you believe that this meeting corresponded well to what Thales investors expected? There was a very important demand, and therefore very large expectations of investors, also shared internally.One of our big challenges in the next 10 years is to be always more attractive in the "talent war".It has become a reality in France and internationally.For the younger generations, expectations on these ESG questions are even greater and it was important for Thales to express themselves, to share its objectives and to show that our company is advancing.We will continue to develop these subjects internally but also on campuses, in universities, in grandes écoles, engineering schools.

How does Thales help improve a world that must be more inclusive? Thales helps bring an identity to each human being on the planet.This is one of the major societal challenges: more than a billion human beings lives without identity and therefore without access to administrative services, education, the most basic social rights, polling stations, travel, etc...Fighting the digital fracture is also the field of inclusion.During containment, everyone could see that connectivity was essential for all families in order to communicate but also to take distance lessons for children or even heal.MI-2022, Eutelsat will put its Konnect VHTS communication satellite into service produced by Thales Alenia Space and with extraordinary power.It will provide connectivity everywhere in Europe (in France with Orange) and reduce the digital divide for families who live, for example, in places that are not very connected to the countryside or the mountains.Our investors did not necessarily have this reading grid, as well as that of our environmental or security contribution.

Precisely, how to convince investors in a group that is present in the field of defense when there is a debate to exclude the defense industry of so -called virtuous funding? We first have the pedagogy to do.We must remember that this industry is probably the most regulated in the world - contrary to what some propagate.Thales has been exporting for example for great democracies such as France, England, the United States, Canada, Australia or India.And if we can export, it is only via an explicit decision of a government, itself democratically elected and which decides, in responsibility, that such an industrialist will export such a product to such a country.I do not know industries that are also regulated, also supervised and also transparent.

But the opponents say that your activities are not virtuous? It seems to me to be major to insist on the fact that there will be no sustainable activities in the long term if there are not, beforehand,stable countries and stable economies too.It must be considered that stability and security are prerequisites for sustainability, a reality which is perfectly understood and admitted by the Americans: "No Sustainability Without Stability".American investors believe that investing in defense is legitimately a socially responsible investment.

Which is not at all the case in Europe for the moment...This is where we must take part in the debate by explaining why, from our point of view, we consider that stability is one of the fundamental elements of sustainable development.The defense industry is completely compatible, or even at the heart of the ESG.Governments are also starting to say.This is why I remain very optimistic because in practice, the funds that refrain today from investing in the defense are minority.The vast majority are either positive or neutral, implied they only ask to be convinced-"give me arguments, explain to me why this defense activity is generally ESG".This work of explanation and pedagogy must be done and, as soon as it is, the very small minority of funds refrain from investing in the defense will remain a minority.

However, there is a debate within the European Commission which is not yet decided...Europe, unlike the United States, has a more ambivalent look on these questions.We must get out of this ambivalence which is illustrated by the fact that this same commission considers today that questions of sovereignty and, therefore, of defense, are important to the point of devoting 8 billion euros to it with the settingPlace of the European Defense Fund.Getting out of this ambivalence is quite possible.Now, everyone has to speak.Moreover, the French government does it to bring back rationality in this debate and to ensure that in the end, defense and security activities are well considered for what they are: an important contributor toESG questions from the angle of stability.Stability of countries, economies stability, planet stability.

Your decarbonation goals are very ambitious.How can investors trust you? We have reached our 2023 goals faster than expected.We must continue to challenge ourselves to go further.We will engage in a certification approach with SBTI (Science-Based Target Initiative) in order to confront our results with an external vision.We are serene.Because we already use all SBTI methodologies when we self-assess.In short, to complete the loop, we are engaged in a process of certification unanimously recognized to complete the skeptics that our approach is serious.

How can you significantly reduce carbon emissions in the aeronautical sector? Beyond the acceleration of the reduction of our own operational emissions, Thales can have a major impact in the emissions avoided, through what some call the "Scope 4 ”, a categorization always under discussion.We work for example on the optimization of aircraft trajectories, by connecting the "brain" of the plane (Flight Management System) to the air traffic management system, two areas in which Thales has world leadership.The impact is potentially considerable with reductions in the order of 10% of CO2 emissions achievable in the short term.Working on programs avoided makes much more sense for Thales which can contribute, thanks to its on -board technologies, to reduce the emissions of its customers.This is also the case when the group works on so -called frugal algorithms.We believe that there is an unexploited deposit which is considerable.Digital will probably know the same storm as air transport.Everyone realizes today that using computers and smartphones and consume all -round Netflix or GeForce Now contribute to global warming.

In the digital field, what are the tracks to reduce carbon emissions? I can give you several levers.The first goes through the most generalized use of so -called frugal algorithms.A similar algorithm produces the same result with the same efficiency, but using less calculation capacity.This track is the subject of completely concrete research and development subjects.Second lever: the smart data rather than the big data.What does that mean ?Today, Big Data algorithms ingest quantities of data in a massive manner.Do we finally need to have all this data ingests at an algorithm rather than selecting the right need in order to consume as little as possible calculation capacity.Third lever, which seems very promising to me, the Far Edge Computing: to ensure that the algorithms treat the data closer to where it is created.For example, an optronic pod installed under the burst will recover a lot of images.Shouldn't we already treat them or preterite them on board the Pod rather than sending all the raw data to Balard [to the Ministry of the Armed Forces] so that they are processed there?This would avoid mobilizing a whole bunch of computing and communication capacities that are energy consumers and therefore CO2 issuers.This is called the "Far Edge Computing" which makes it possible to treat data as close as possible to the sensors.Again, there are gains that are not negligible.

And the fourth lever? It is as digital as hardware.Thales works on so -called neuromorphic processors, which mimic brain behavior.One of their characteristics is that they are potentially ten, a hundred, a thousand times more effective in terms of energy consumption than standard processors.They will be operational by a horizon of 5 to 10 years.In 10 years, these processors will reduce CO2 emissions to equivalent calculation capacity.

How do you manage the place of women in an aeronautical and defense sector where there are not many? Inclusion and diversity are major subjects for Thales.An inclusive company allows each and everyone to deploy all its potential and is synonymous with better collective performance.Women are a part of diversity and our industry strives to make you want, upstream, to more young girls to study in schools leading to this sector, which is not enough today.Thales has given itself ambitious objectives which correspond to what our industry is capable of achieving.We set a target of 20% of women in the highest levels of responsibility by 2023, knowing that a few years ago, they were around 15%.We reach 18.6 % this year.The arrival of women in the governing bodies is progressive but, indeed, at the proportion of the challenges that our industry has in terms of training and recruitment.That said, what matters most in our industries is to ensure that the percentage of women also continues to increase as they climb the ladder.

Last point.We have the feeling that French groups make over-compliance to "wash white than white", unlike certain European competitors.Is it your feeling? I do not share this opinion.In any case, this is not the reality that we live.Thales has never exported so much in the world from major countries, including France, while applying a strict compliance program.Compliance and economic performance go hand in hand.Compliance does not prevent us from being efficient in export.I am proud of all the work carried out by our teams and their commercial successes for ten years in our historic markets and in new countries.

12 minutes

To share :