3 RISK FACTORS, INTERNAL CONTROL AND INSURANCE - Risk factors
3.1.2 DETAILED PRESENTATION OF RISK FACTORS
184.108.40.206 INDUSTRIAL AND ENVIRONMENTAL RISKS
(the European Seveso regulations for industrial facilities or the ADR for the carriage of hazardous materials by road, for instance).
Rubis’ business lines (distribution, support and services, storage), described in greater detail in chapter 1, entail industrial and environmental risks that may have impacts of very different natures and scales, depending on the activities and the nature of the
products handled (petroleum products, LPG, bitumen, chemicals, fertilizers and agrifood products). In most countries, such activities are subject to many very stringent environmental, health and safety regulations requiring the implementation of risk prevention systems
RISK OF A MAJOR INCIDENT IN INDUSTRIAL FACILITIES (1) Probability: ▲ Impact: ▲▲▲ Scope covered: ● ●
Description of the risk The Group operates industrial facilities in which petroleum products (automotive or heating fuels, bitumen, LPG) are handled, as well as chemical products and fertilizers. Such products are inherently flammable or, in some cases, explosive. The facilities in question are import or storage terminals for petroleum products or chemicals, LPG cylinder filling plants and a refinery. Forty-one are classified Seveso (high and low threshold) in the European Union; thirty-seven related sites are operated outside the European Union. Although the Group’s entities ensure that these facilities and their operations comply strictly with standards predefined by the Group and the regulations applicable to them, a major incident (explosion, fire, massive pollution), including as a result of malicious acts, could occur on a site and cause damage to people, the environment and/or property, as well as to the Group’s reputation. The liability of the Group, its Senior Managers or employees could be incurred. The impact of the shutdown of a site for which the contribution to earnings is significant could also have an adverse effect on the Group’s financial position.
Examples of risk management measures Due to the nature of the Group’s activities, operational safety is an ongoing concern for all teams. In addition to strict compliance with the applicable Seveso-type regulations, significant resources are devoted to preventing the risk of accidents, and especially major industrial incidents, including: • an active risk prevention approach through the implementation of proven HSE (health, safety and environment) management systems;
• investments totaling €123 million for the security, maintenance and adaptation of facilities in 2019; • membership of professional bodies such as GESIP (Groupe d’Étude de Sécurité des Industries Pétrolières – Group for Safety Research in the Petroleum Industries) and the Joint Inspection Group (JIG), which provide general operational, training and safety support ;
• the establishment of crisis management organizations at Rubis Énergie and Rubis Terminal that can be implemented quickly in the event of a major incident in order to limit the consequences. The Group also generally ensures that it sets aside sufficient provisions to cover the risks identified (see note 4.11 to the consolidated financial statements).
RISK OF A MAJOR ACCIDENT IN DISTRIBUTION FACILITIES (1) Probability: ▲ Impact: ▲▲ Scope covered: ●
Description of the risk The Group operates a network of 1,065 gas stations in 23 countries, most often entrusting their management to managers or independent resellers. Although the quantities of products stored in gas stations are limited (less than 40 m 3 ), the main risk stems from the fact that such facilities are often located in urban or suburban areas and that they are accessible to the public. An explosion, fire or a massive product leak, including caused by malicious acts, could result in serious harm to personnel (most often not Group employees), customers and local residents, the environment and/or property, as well as to the Group’s reputation.
(1) This risk and the corresponding management measures are described in the NFIS, chapter 4, section 4.2.