2024 Universal Registration Document

General and financial elements

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. VINCI’s worksites are more specifically exposed to the following climate risks:

  • “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.

Physical risks related to climate change were evaluated on the basis of SSP5-8.5, the IPCC’s very high GHG emissions scenario, incorporating the most pessimistic change for extreme weather events and the highest risk level. See paragraph 2.2.1, “Identification of material impacts, risks and opportunities”, of chapter E, page 203.

Risk identification Risk management procedures
Risk identification

–Intensification of extreme weather events

Possible consequences:

  • Deterioration in health and safety conditions for employees
  • Financial impacts resulting from increased spending necessary to maintain or repair damaged infrastructure and equipment (higher operating and/or capital expenditure, lower operating income)
  • Damage to the Group’s image and reputation in the event of deficient quality of service (unavailability of the infrastructure under concession, missed delivery deadlines, etc.)

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
1.5.2 Risks relating to the transition to a low-carbon economy

The transition to a low-carbon economy involves numerous uncertainties in the interpretation of market signals that may give rise to risks affecting the Group’s financial performance and reputation. Among these risks, those identified as the most material relate to the advent of new and more stringent regulations aimed at reducing greenhouse gas (GHG) emissions in the most carbon-intensive sectors (construction of new buildings, oil and gas activities, motorway traffic or air travel). These developments might also include the introduction of carbon pricing measures (carbon tax, carbon border adjustment mechanism, etc.). See paragraph 2.2.1, “Identification of material impacts, risks and opportunities”, of chapter E, page 203.

Risk identification Risk management procedures
Risk identification

–Risk of market uncertainties related to the environmental transition

Possible consequences:

  • Loss of revenue in markets that contribute significantly to greenhouse gas emissions and could shrink as a result of more stringent regulations (construction of new buildings, oil and gas activities, motorway traffic, air travel, etc.)
  • Increase in operating expenditure resulting from the implementation of carbon pricing tools (carbon tax, carbon border adjustment mechanism, etc.)

Risk management procedures
  • Environmental transition plan (see paragraph 2.2.2.1, “Climate change mitigation and energy”, of chapter E, page 205)
  • Risk management procedures in the area of legal and regulatory compliance (see paragraph 1.2.2, page 176)
1.5.3 Increase in energy costs

Alterations in the planet’s climate balance are amplifying the risk of increased energy costs, whether for fossil fuels or renewables, due to the frequent destruction of infrastructure by extreme weather events and the investments required to adapt energy systems. In addition, the increasing scarcity of fossil resources and fluctuations in demand related to weather conditions are exacerbating economic pressures. See paragraph 2.2.1, “Identification of material impacts, risks and opportunities”, of chapter E, page 203.

Risk identification Risk management procedures
Risk identification
  • Risk of increased energy costs

Possible consequences:

  • Financial impacts on profitability

Risk management procedures
  • Rollout of energy sufficiency measures aimed at optimising the energy performance of the Group’s buildings and infrastructure (see paragraph 2.2.2.1, “Climate change mitigation and energy”, of chapter E, page 205)
  • Decarbonation of the energy mix so as to reduce dependence on fossil fuels and diversify supply sources, including the promotion of self-consumption
  • Financial risk management procedures (see paragraphs 1.7.1, page 181)
1.6 Business ethics risks

Group companies work according to a decentralised model in an international environment with a multitude of stakeholders who participate in or are impacted by the Group’s operations: project managers and their representatives, concession-granting authorities, regulatory authorities, contractors, architects, design offices, joint contractors, subcontractors, suppliers (including local suppliers of construction materials, concrete, aggregates and water, etc.), service providers (inspectors, transporters, freight forwarders, charterers, insurers, bankers, etc.), local residents, communities, users, etc.

Moreover, the Group’s international expansion, in particular through acquisitions, accentuates the risk of exposure to internal or external fraud, to infringements of the Group’s ethical principles or of regulations, in particular with regard to corruption. If such infringements were committed, the entities responsible would be subject to fines, exclusion from public contracts, remedial action or contract cancellation. Such infringements could also tarnish the Group’s image or reputation, erode the trust of investors, customers and partners, and reduce its ability to respond to calls for tender.

A detailed assessment of impacts, risks and opportunities (IROs) related to business conduct was carried out in preparation of the Group’s Sustainability report, following the double materiality principle (see section 4, “Business conduct”, of chapter E, pages 268 to 273).