The geographical factor was also taken into account; main environmental risks were identified for each country where the Group is present. The reported index is the average of nine environmental indicators: biodiversity and protection of marine areas; biodiversity and protection of land areas; exposure to climate change; vulnerability to climate change; deforestation; environmental regulatory framework; waste management; water pollution; and water depletion. VINCI also produced a map positioning its countries of operation based on local environmental regulations.
These analyses served to identify the main risks for the Group’s activities, as well as the different risk management strategies available and their suitability.
The material environmental issues on which the activities of VINCI companies may have a significant impact were sorted into three categories. The categories span the entire project life cycle, from the response to the call for tenders to the preparation of sites and construction, through to the operating phase. Subcontractors and suppliers are also taken into account.
| Major issues | Description | Main risks |
|---|---|---|
| Climate change | Climate change Description Three types of activity contribute to energy consumption and greenhouse gas emissions:
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Climate change Main risks
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| Resources and the circular economy | Resources and the circular economy Description The construction sector consumes significant quantities of raw materials (sand, steel, bitumen, wood, aggregates, etc.). The production, processing and disposal of waste resulting from the Group’s activity and that of its suppliers are a source of greenhouse gas emissions, create risks of degradation of natural environments and constitute a nuisance for local populations, while contributing to the depletion of certain virgin raw materials. |
Resources and the circular economy Main risks
|
| Preservation of natural environments | Preservation of natural environments Description The construction and concessions activities of VINCI can have short-, medium- and long-term impacts on natural environments, habitats and species. Projects may also pose a nuisance for local residents. |
Preservation of natural environments Main risks
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In 2019, the Group put the climate emergency at the centre of its environmental ambition. VINCI is always looking to identify and manage the related risks and opportunities more effectively. In 2020, it developed forward-looking low-carbon scenarios in order to anticipate potential changes in its markets looking ahead to 2050. Two main scenarios were analysed, based on two possible pathways enabling our society to keep global warming below two degrees by the end of the century: a “pro-technology” scenario, in which technological innovations would deliver major reductions in emissions without changing lifestyles, and a “sufficiency” scenario, in which growing collective awareness would lead to significant transformations in production and consumption practices. Three sector models for Europe were built, one for each of VINCI’s main business sectors (buildings, mobility and energy). Additional models are being developed, including one for the construction sector in France and another for mobility in North America. In any scenario, it seems inevitable that the unprecedented development of low-carbon technologies will need to be combined with more energy-efficient and resource-efficient patterns of consumption. VINCI’s business lines have been involved in every stage to build these scenarios and are now working to take their results on board so that they can support strategic decisions by their executive committees.
Based on the results of this scenario analysis, the main climate-related risk to which VINCI is exposed, and whose exposure is expected to increase in the future, is regulatory risk. As a group operating across a broad range of sectors, VINCI must comply with a large number of climate regulations. These include cap-and-trade emissions trading programs – which can affect VINCI activities that emit greenhouse gases, especially Eurovia’s carbon-intensive manufacturing businesses – and energy efficiency standards and regulations for buildings, such as France’s new environmental regulation adopted in 2020 (RE 2020). As a construction industry leader, VINCI must supply products that meet these standards. Non-compliance with regulations could expose the Group to financial penalties, among other sanctions. Furthermore, GHG emissions regulations are expected to increase in the future and impose stricter rules on carbon-intensive businesses.
In addition to the environmental risk mapping described earlier, entities undertake specific work to anticipate and manage risks in the short- or medium-term that have been identified as major for their projects. They found that as a global builder and operator of infrastructure, VINCI is highly exposed to the acute physical risks associated with climate change. Extreme weather events can negatively impact the Group’s activities in different ways, such as damage to worksites or flooded runways or motorways. VINCI’s activities may also be severely impacted by longer-term climate change, such as temperature increases. Because a significant portion of VINCI’s activities take place outdoors, its employees are sometimes confronted with extreme weather conditions. To ensure the Group’s compliance with the laws and regulations of the countries where it operates, working conditions are closely monitored, especially with respect to variations in temperature (high or low), which can impact the works timetable. Changes in temperature can also alter the behaviour of certain construction materials, so additional research and development work may be required to guarantee the same level of quality to customers. High temperatures can affect traffic patterns where VINCI operates motorways, airports and other infrastructure under concession contracts.
