Saint-Gobain // Universal Registration Document 2021

Risks and control Risk factors

Property and business interruption insurance The risks covered are non-excluded property and casualty risks as well as operating losses following a sudden accident affecting the insured property. They are covered by a global program. The programs meet the insurance criteria laid down by the Risk and Insurance Department, specifically: all policies are “all risks” policies with named exclusions; ■ claims limits of liability are based on worst-case ■ scenarios where safety systems operate effectively; deductibles are proportionate to the size of the site ■ concerned and cannot be qualified as self-insurance. These criteria take into account current insurance offerings, which exclude certain risks and cover natural disasters like floods, storms, earthquakes or tsunamis only up to a certain amount. In extreme scenarios, such events could have a substantial uninsured financial impact in terms of both reconstruction costs and lost production costs. The Risk and Insurance Department’s policy is based on the findings of the annual audits carried out by independent prevention experts recognized by the Group’s insurers. These audits give a clear picture of the risk exposure of the main sites in the event of a fire or other incident, and provide an estimate of the financial consequences in a worst-case scenario. Individual claims in excess of €12.5 million were transferred to the insurance market for all Group subsidiaries. As from January 1, 2022 this amount is increased to €17.5 million. This amount is self-insured by the Group through its captive insurance company. The latter has taken out reinsurance protection to protect it against an excessive frequency and/or severity. Liability coverage 1.5.2 A program provides coverage for third-party personal injury and property damage claims for which the Group would be legally held liable. This program comprises several programs for the lower tranches of coverage. The first program covers all subsidiaries and has a coverage limit of €100 million. Those located in North 1.5.1

America are subject to a deductible of USD 50 million. The program’s exclusions are consistent with market practice and concern in particular potentially carcinogenic substances and gradual pollution. In order to satisfy local regulatory requirements, a policy is taken out in each country in which the Group has a significant presence. Local policies are backed up by the master policy issued in Paris, which can be activated when local coverage proves inadequate. The second program, with a cover limit of USD 50 million, concerns the subsidiaries located in North America. This program is structured differently to deal with the specific nature of liability risks in the United States. It is divided into several lines of coverage, requiring it to be placed, if needed, on the London insurance market. Exclusions are in line with current market practice in the United States and primarily concern contractual liability, pollution and third-party consequential loss. In addition to the two programs described above, a number of supplementary programs have been set up in order to bring the total coverage limit to a level considered compatible with the Group’s businesses. Within the operating units, action is taken to raise awareness of civil liability risks, and the units are motivated to control costs by assuming a deductible that does not, however, constitute self-insurance. The Group also runs a risk prevention program at its operating units with the support of the Environment, Health and Safety Department. Furthermore, to meet the environmental requirements set out in Directive 2004/35/EC of April 21, 2004 on environmental liability with regard to the prevention and remedying of environmental damage, the Group has since 2017 had a specific policy with a limit increased from €25 million to €75 million per year as from July 1, 2020. This policy offers worldwide cover, excluding the United States, for the Group’s civil environmental liability arising in relation to damage affecting natural resources (protected natural species and habitats, soil and water) as a result of its activities. Exceptions 1.5.3 Joint ventures not controlled by the Group and minority interests are excluded from the scope of the above policies. These insurance policies are taken out separately.

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