The dotted rectangle highlights the most significant risks, which are also presented in chapter D, “Risk factors and management procedures”, page 179. Most of these risks are medium- and long-term risks. VINCI is working to implement both risk-hedging and business strategies to simultaneously diminish the impact of its activities and reduce financial risk, for risks deemed to be material in the short term (ST), medium term (MT) or long term (LT).
In addition to assessing and mitigating the environmental impacts of its activities, VINCI analyses the opportunities brought to its activities by the challenges of the environmental transition. Technological and market evolutions are enabling VINCI to deliver new environmental solutions to its customers, in every business line. VINCI’s research and development efforts are focused on creating low-carbon and energy-efficient products and services.
Climate-related risks and opportunities
| Risk | Description of the net risk | Horizon | Business lines |
|---|---|---|---|
|
1. Intensification of extreme weather events
(RCP 4.5 scenario) |
1. Intensification of extreme weather events
(RCP 4.5 scenario) Description of the net risk Physical risk causing damage to installations, equipment and the health or safety of employees during extreme weather events (storms, wide variations in temperature, drought, flooding, rockslides and other ground movements), whose frequency and magnitude are likely to increase with climate change (see paragraph 2.5.1, “Physical risks related to climate change”, of chapter D, “Risk factors and management procedures”, page 180). This risk was assessed under an RCP 4.5 scenario, using data from a study conducted by the Resallience engineering and design office on the resilience of Group activities to climate risks. Under a more optimistic scenario (RCP 2.6), the financial materiality of the risk would be lessened. The following procedures are in place to manage this risk:
|
1. Intensification of extreme weather events
(RCP 4.5 scenario) Horizon MT |
1. Intensification of extreme weather events
(RCP 4.5 scenario) Business lines VINCI Autoroutes VINCI Concessions VINCI Energies VINCI ConstructionVINCI Immobilier |
|
2. Market uncertainties related to the transition
(RCP 2.6 scenario) |
2. Market uncertainties related to the transition
(RCP 2.6 scenario) Description of the net risk Transition risk impacting VINCI’s activities in the medium term. The environmental transition has raised many uncertainties about how to interpret market signals. New cap-and-trade programs (markets for rights to pollute, which can affect activities that emit greenhouse gases), the possibility of a carbon tax, and the consequences of the EU Taxonomy on excluded sectors are all sources of risk. This risk was assessed under an RCP 2.6 scenario, which would drive a very rapid transition and a strong societal preference for low-carbon activities. Under the RCP 4.5 scenario, the transition would be more gradual, and the financial materiality of the risk would be lessened. The procedures in place to manage risk in terms of both financial and impact materiality involve the Group’s ability to adapt to its markets and effectively track changes in standards (see paragraph 2.2.2, “Legal and regulatory compliance”, of chapter D, “Risk factors and management procedures”, page 176). |
2. Market uncertainties related to the transition
(RCP 2.6 scenario) Horizon MT |
2. Market uncertainties related to the transition
(RCP 2.6 scenario) Business lines VINCI Autoroutes VINCI Concessions VINCI Energies VINCI ConstructionVINCI Immobilier |
| Opportunity | Description of the opportunity | Horizon | Business lines |
|---|---|---|---|
| 1. Accelerating energy renovation | 1. Accelerating energy renovation Description of the opportunity A boom in the energy renovation market is expected in the coming years, creating opportunities for VINCI Construction and VINCI Energies, which develop and deliver solutions to improve the energy efficiency of the built environment (see “Environmental transition of buildings” under paragraph 3.2.2.1, “Actions to reduce indirect emissions”, of the “Environmental performance” section, page 235). According to the GHG emissions reduction targets published by the European Union in June 2021 (the “Fit for 55” package), 3% of the building stock must be renovated each year (compared to the current rate of 0.2%) to achieve energy savings of at least 60% between 2021 and 2030. |
1. Accelerating energy renovation Horizon ST |
1. Accelerating energy renovation Business lines VINCI Energies VINCI Construction |
| 2. Supporting the transition to a low-carbon economy | 2. Supporting the transition to a low-carbon economy Description of the opportunity The GHG emissions reduction targets cannot be achieved without a massive exit from fossil fuels by every industry. VINCI offers solutions to facilitate the transition to other sources or pathways to low-carbon energy, described in in paragraph 3.2.2.1, “Actions to reduce indirect emissions”, of the “Environmental performance” section, page 235, in the areas of:
|
2. Supporting the transition to a low-carbon economy Horizon MT |
2. Supporting the transition to a low-carbon economy Business lines VINCI Concessions VINCI Autoroutes VINCI Energies |
| 3. Adapting to climate change | 3. Adapting to climate change Description of the opportunity The current infrastructure, built to last between 50 and 100 years, may have to contend with extreme weather events of increasing frequency. In preparation for this, infrastructure modifications (strengthening sea walls, adapting drinking water distribution networks, building rainwater harvesting and wastewater collection systems, creating cool urban spaces, etc.) and maintenance (repair of equipment or electrical lines) is necessary. VINCI offers solutions to make buildings and regions more resilient to climate change. These solutions are presented in paragraph 3.2.3, “Resilience of projects and structures”, of the “Environmental performance” section, page 239. |
3. Adapting to climate change Horizon ST |
3. Adapting to climate change Business lines VINCI Construction VINCI Energies |