1.4.3 Attracting and retaining talent
It is essential for the Group to be able to attract and retain talent. Worksite activity changes very quickly, and companies that have specialised skills and expertise have a competitive advantage in responding to calls for tender.
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Risk management procedures |
Risk identification
- Unattractive Group businesses; little awareness of the employer brand associated with Group companies
- Lack of inducement and professional advancement
- Heightened competition between employers
Possible consequences:
- Difficulty in retaining qualified employees trained in the Group’s specific business lines
- Difficulty in responding to project needs
- Difficulty in carrying out projects in line with the Group’s quality standards due to a lack of competent staff
- Project delays or cancellations
- Damage to the Group’s reputation in the event of deficient work quality due to a lack of proper skills
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Risk management procedures
- Improvement of the skills of Group employees according to a human capital development cycle (training and development objectives in the annual performance review)
- Implementing a training programme for every employee
- Developing programmes that foster internal job mobility
- Forging local partnerships with economic, social, institutional, academic and non-profit entities
- Developing the skills of locally recruited employees, especially those hired under programmes to help people join the labour force
- Promoting diversity among employees by combating discrimination in Group companies
- Employee profit-sharing (Group level)
- Encouraging community outreach among Group employees
- Employer brand enhancement, outreach initiatives in schools
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1.5 Environmental risks
Group companies might be subject to risks related to the environment of projects and of the local areas and regions in which they operate, in particular risks related to climate change and the potential contamination of natural environments.
These risks are analysed during the tendering phase with respect to the human, technical, financial and legal issues they generate. Solutions are devised and scaled with the development teams so as to take these issues into account as far upstream as possible. VINCI analyses the situation so as to determine how best to protect the environment in the region concerned. If necessary, VINCI supplements this analysis through consultation with local stakeholders and regularly re-evaluates the risks depending on how business activities evolve. VINCI then implements the technical and organisational solutions it can to reduce these risks. Insurance companies are also involved in the analysis, in order to adapt their policies to the project’s residual risks.
How these risks are taken into consideration changes over the course of a project’s life, including during the infrastructure asset’s operating phase. The cost of reconstruction following major weather events may be partly covered by insurance companies. Environmental risks go beyond economic aspects and extend to VINCI’s image and reputation, as operations can suffer long-term consequences if a risk event occurs. Taking a longer-term view, the environmental transition and the mixed market signals it generates can also constitute a risk factor (see paragraph 1.2.2, “Legal and regulatory compliance”, page 178).In addition, the environmental issues relating to the Group’s activities and their impact on the environment are analysed according to the principle of “double materiality” and detailed at greater length on the basis of their time horizon (short-, medium- or long-term) in paragraph 4.4, “Duty of vigilance with regard to the environment”, of chapter E, “Workforce-related, social and environmental information”, pages 279 to 290.
1.5.1 Physical risks related to climate change
Climate change has made extreme weather events more frequent and more severe, making environmental risks more significant for the Group’s activities. They comprise the following:
- “storms”, a general term that includes weather events causing high winds and precipitation (rain, snow and hail);
- wide variations in temperature (heat or cold waves, drought);
- flooding, from rivers overflowing their banks, run-off from heavy precipitation, or rising sea levels, which can cause landslides and exacerbate erosion;
- rockslides or other ground movements, such as the expansion and contraction of clay, which can affect buildings and infrastructure.These risks were evaluated on the basis of a RCP 4.5 scenario (a “pessimistic” scenario more likely than not to result in a global temperature rise as high as 3.3°C by the end of the century).
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Risk management procedures |
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Possible consequences:
- Damage to installations and equipment
- Deterioration in health and safety conditions for employees
- Financial impact resulting from increased expenses necessary to maintain or repair damaged infrastructure and equipment, operating losses and construction delays
- Impact on the Group’s image and reputation in the event of deficient quality of service, such as substandard work or missed delivery deadlines
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Risk management procedures
- Prior identification of the risks affecting the specific area, implementation of technical facilities to mitigate extreme weather events (cofferdams, pumps, retention basins, cooling equipment, etc.) and allowing for the related expenses when preparing project cost estimates
- Establishing a business continuity plan (BCP) for certain concession assets (e.g. airports)
- Emergency procedures, in cooperation with local actors, to respond to extreme weather events (work stoppages for employees due to inclement weather, equipment removal, etc.) and cooperation with local officials to implement appropriate emergency and work resumption measures
- Managing unplanned events with the appropriate insurance company departments
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1.5.2 Increasing scarcity of resources
At the same time that the natural climate balance is changing, certain raw materials (minerals, rare metals, fossil fuels) are becoming more scarce, and regions subject to water stress are expanding. For Group activities that depend on the availability of these resources, the increasing scarcity of these resources has a direct impact on the Group’s ability to obtain the materials it needs for its projects and concessions.
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Risk management procedures |
Risk identification
- Increasing scarcity of resources
- Expansion of areas of water stress
Possible consequences:
- Financial impact resulting from possible increases in the cost of certain materials
- Impact on the Group’s image and reputation in the event of deficient quality of service, such as substandard work or missed delivery deadlines
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Risk management procedures
- Implementing eco-design solutions to reduce the use of certain raw materials and to reuse or recycle material from deconstruction in a circular economy approach
- Identifying project sites in areas of water stress so as to adapt construction and operation methods
- Reducing water consumption and development of solutions to reuse water at certain sites
- Adapting processes
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