Plastic Omnium // 2021 Universal Registration Document
NON-FINANCIAL REPORTING DISCLOSURE Plastic Omnium's business model
ANALYSIS OF EXTRA-FINANCIAL RISKS AND OPPORTUNITIES 4.2.3.2 The selection of extra-financial risks that make up the Non-Financial Reporting Disclosure was made by determining their materiality, i.e. by defining why and how they are important for the Group. These are the main risks identified in:
The consequences of the risks for the Group The risks analyzed by the Group and listed below address social, societal and environmental areas. The consequences for the Group of not mitigating them may be of the following nature: legal may involve contracts, entities, assets, intellectual property and ● compliance and may lead to convictions or financial sanctions, etc.; financial may penalize the Company in its development; ● reputational may damage the Company’s image (talent flight, lack of ● interest from candidates, etc.); organizational may be related to security or IT issues, for example; ● environmental may have repercussions on ecosystems such as their ● pollution or non-protection, etc. The consequences of risks on society and the environment In addition, each of these risks, depending on their typology and the issues involved, may impact one or more stakeholders:
the Group risk mapping (see description of the risks in section 2, ● p.51). These risks are assessed on the basis of their probability of occurrence and the estimated magnitude of their impacts on the Group (in financial and reputational terms), after taking into account the measures adopted by the Group to manage these risks (net impact). This concerns the following risks: Occupational Health and Safety; ● Human Resources; ● Cyber risk/IS continuity of service – data protection: the impact of the ● risk was revised upwards; Product safety-quality and customer satisfaction; ● Responsible Purchasing/Suppliers; ● Human Rights; ● Impact of climate change on the business model (non-mitigation of ● climate change): the risk has been revised upwards and is now one of the Group’s main risk factors; Natural disasters. ● the materiality analysis of Sustainable Development issues carried out in ● 2020. These risks are assessed on two criteria: importance for each stakeholder and their impact (financial, organizational, strategic or reputational) on the Group’s overall performance. Some of these risks are found both in the materiality matrix and in the Group risk mapping and contribute to mastering the clean mobility challenge. Some are also addressed in the Vigilance Plan. To achieve and implement effective mitigation measures, the analysis of these risks, published in the NFRD, was based on the principle of double materiality: the impacts that these risks may have on the Group; ● the impacts that these risks, if they are not mitigated by the Group, may ● have on society and the environment. In other words, this double materiality makes it possible to reveal the impacts of the environment on the Company and of the Company on its environment and to implement the associated mitigation measures and policy. Effectively and rapidly mitigating risks is a major challenge for Plastic Omnium because it can turn a risk into an opportunity and give the Group a competitive advantage. This concerns the following risks: Business ethics and tax evasion; ● Eco-design and recyclability; ● Biodiversity. ●
Employees who may be affected in their physical and/or moral integrity, their commitment, their work-life balance, their effectiveness, their development in terms of skills, career or income, their motivation, the protection of their data and their representation. Subcontractors or suppliers who may be affected in their physical and/or moral integrity, their rights, the protection of their data, their development, etc. Customers and end users who may be affected in terms of their physical and/or moral integrity, encounter problems of non-compliance, deteriorated customer experience or with the protection of their data. People and the environment, which may be impacted by non-mitigation or non-adaptation to climate change, by pollution, failure to take the management of raw materials or biodiversity into account, etc.
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This analysis also makes it possible to understand the risks in terms of opportunities for Plastic Omnium and its stakeholders and to anticipate overall performance and resilience strategies.
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PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2021
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