2019 Annual financial report

This chapter achieves two common objectives: on the one hand, to meet the legal requirements in terms of the declaration of non-financial performance (DNFP), and, on the other, to bring together a series of Corporate Social Responsibility (CSR) related issues, in accordance with current legislation and regulations, and in response to international standards with which the Group has voluntarily complied for a number of years now. 

This chapter is the core of the Group’s non-financial reporting and includes a number of quantitative and qualitative indicators presented under the comply or explain rule. Examples of various actions carried out and initiatives implemented in the agencies to address social, cultural, ethical and environmental issues are given. More examples are featured on the Group’s corporate website www.publicisgroupe.com (CSR Section). A CSR Smart Data table is also available on the corporate website (CSR Section). The DNFP is made up of a number of factors included in this document, denoted by the following:

•  background information on segment trends or the general outlook, as well as on the business model and value-creation components, are presented in the introduction with a summary of key financial and non-financial figures;
• the Group’s strategy and activities are presented in more detail in Section 1;
• the risk factors are presented in order of priority in Chapter 2. Non-financial risks were submitted to stakeholders as part of a review of the materiality table and critical group issues. Human rights and environmental risks are presented in Section 4.4.1, with the aim of improving compliance with Duty of care requirements; 
• the Group’s governance is presented in Section 3; 
• the consolidated financial statements in Section 5;
• a specific DNFP cross-referencing table can be found in Chapter 10. Working methods and processes in place for CSR reporting, as well as governance of these issues, are explained in Section 4.7. In accordance with French and European regulations, the Bureau Véritas verification report of external audit can be found at the end of this chapter. The DNFP cross-referencing table can be found in Chapter 10.9 of this document.

Materiality of CSR challenges and stakeholder engagement in 2019

In 2019, the Supervisory Board conducted an in-depth review of the Group’s CSR strategy. A working group, made up of six Board members, led by Anne-Gabrielle Heilbronner, Secretary General and member of the Management Board, reviewed the strategic guidelines and current action plans. 

In terms of the range of initiatives, the Board supported the Management Board’s plan to develop the CSR strategy further by focusing on key priorities. Key stakeholders were consulted once again, with the support of Salterbaxter, a Group subsidiary specializing in CSR, as part of a classic client assignment, using traditional working methods. 

This consultation, drawing on qualitative interviews (as in 2015) focused on a list of 25 major issues incorporating risk factors such as personal health and safety, diversity, data protection issues and transparency. These risk factors are presented in Chapter 2, and in Section 4.4.2 of the Duty of Care Plan. Individual interviews were held with more than 80 people, representing clients in seven different sectors, as well as American and European investors, and webinars were offered to employees (in the United States, France, the United Kingdom and India). Together with clients from seven different industries and European and US investors, over 80 people were questioned. This consultation brought the following points to light:

•  there was a clear alignment between the priorities identified by both internal and external stakeholders;
•  the Group’s three current priorities – Diversity & Inclusion, Responsible Marketing and Data protection - are still at the heart of the expectations expressed, but with higher demands in relation to some issues such as equal pay, greater diversity in recruitment and more transparency on the Group’s data use. The materiality table was expanded;
• environmental concerns became a top priority, so that the Group can limit its own impacts and take effective action against global warming. The new materiality table can be found in the introduction to this document. Dialog with stakeholders is also conducted on a continual basis with local agencies.