Environmental responsibility: Innovating all along our value chain
Environmental challenges: 4.2. opportunities for the Group This section applies the recommendations of CDSB REQ-03/TCFD (1) . Issues relating to the environment and the fight against climate change have been analysed for Sopra Steria. No key environmental risks were identified by the Group risk mapping exercise. Sopra Steria reaffirms that climate action must be incorporated into the actions of all organisations. In seeking to develop solutions that benefit the environment and the climate, digital technology is a key priority for limiting risks and expanding opportunities. The Group’s material environmental risks and opportunities are published annually in Sopra Steria’s responses to the CDP Climate Change questionnaire (2) . All Group risks are set out in Section 1, “Risk factors”, of the chapter 2 of this Universal Registration Document (pages 36 to 42). ((* ( Risks and opportunities identified at the local or national level are flagged up by correspondents to the Group Environmental Sustainability Committee (GESC), which undertakes more in-depth analysis. The findings of this analysis are presented to the relevant business unit heads at meetings of the Corporate Responsibility and Sustainable Development Committee for inclusion in action plans. Major risks are discussed at meetings of the Group Executive Committee and presented to the Audit Committee and the Nomination, Governance, Ethics and Corporate Responsibility Committee, which submit their conclusions to the Board of Directors. The CR&SD Director is a member of the Group Executive Committee and informs the latter directly of any environmental or climate-related issues requiring particular attention and any decisions that need to be made. In accordance with the recommendations of the TCFD, Sopra Steria has analysed two climate scenarios , in both qualitative and quantitative terms: the Sustainable Development Scenario (SDS) developed by the International Energy Agency (IEA), which is aligned with the Paris Agreement; and the RCP 8.5 “business as usual” scenario developed by the Intergovernmental Panel on Climate Change (IPCC). This analysis allowed for the identification of risks and opportunities for the Group’s activities, over a period of 25 years beginning in 2015. Detailed information on the analysis is included in Sopra Steria’s responses to the 2020 CDP Climate Change questionnaire. As regards climate-related opportunities and risks, Sopra Steria complies with TCFD guidelines and assesses both physical and transition risks. %'$ (( $' #) . # #+ '$#" #) ! ! " ) ' ( ( $%%$')*# ) (
a. Physical risks Sopra Steria’s main physical risk relates to disruption resulting from severe flooding, which could restrict access to the Group’s facilities. Climate events could damage electrical and telecommunications infrastructure, thus affecting Sopra Steria’s data centres. These risks are taken into account when choosing production sites and infrastructures. Sopra Steria has also set up continuity plans at various levels of its activities and a robust system for remote working to deal with these risks. These plans and arrangements have proved their effectiveness during the Covid-19 crisis, enabling all the Group’s operations to continue and allowing the Group to act with agility to maintain high levels of customer service. b. Transition risk Sopra Steria’s main transition risks relate to regulatory change and reputational risk. Uncertainty as to changes in European regulations on greenhouse gas emissions reduction targets could affect the cost or availability of offsetting projects and force businesses to comply with stricter classification requirements. The impact of regulatory change is thus built into Sopra Steria’s "net zero" emissions programme, whether in relation to purchasing renewable energy, choosing environmentally efficient buildings, developing greener travel options or investing in carbon capture projects. Sopra Steria is involved in various French working groups looking at the effects of regulatory change, particularly in relation to digital sustainability. Reputational risk is fully integrated into the Group’s environmental programmes, which are now recognised as the most effective and transparent in the sector. This is key priority for the Group’s development in terms of its ability to attract and retain the best talent and serve as a benchmark partner for major organisations. For example, at the international level, the Group is working with a wide range of partners in the carbon offset market to identify the most environmentally and socially responsible and ethical projects. Sopra Steria interacts with the United Nations in the context of its "Climate Neutral Now" programme to verify its selected carbon capture projects. c. Opportunities for the Group Sopra Steria is addressing business opportunities linked to efforts to limit climate change and protect natural resources by offering innovative solutions such as the following: Sustainable IT : stepping up the digital sobriety approach; p IT for Sustainability : leveraging the potential offered by new p technologies to develop innovative solutions in support of the environment and the climate. These opportunities are set out in Section 4.3.7, “Including digital sustainability in our value proposition”, of this chapter (pages 129 to 130). Sopra Steria publishes all its risks and opportunities annually in its disclosure to the CDP, in accordance with TCFD guidelines. No material risks related to the climate or sustainable development were identified within the Group in 2020.
CDSB REQ: For more information, see the Glossary on page 308. (1) Sopra Steria’s responses to the CDP Climate Change questionnaire are available from the CDP’s website at (2) https://www.cdp.net/fr/responses?utf8=%E2%9C%93&queries%5Bname%5D=Sopra+Steria.