- Risk outlook: these risks will increase inexorably over the coming years, but with a low impact on the operational functioning of the Company in view of the systems and modus operandi practiced. 2 The transition risks: they come from changes in the market, regulations or technology to limit global warming to 1.5°C and have been grouped into six other scenarios. Particular attention was paid to possible regulatory changes, such as the end of certain product categories for the Groupe’s clients, the ban on communicating on certain products, stricter restrictions for certain products, or the possible occurrence of additional taxes. The issues surrounding carbon taxes in different forms were analyzed in detail.
- Mitigation measures:
- from a business point of view, Publicis Groupe participates in sectoral work enabling our various activities to anticipate regulatory changes and be a source of proposals to improve professional practices. The implementation of a proprietary A.L.I.C.E. carbon calculator or participation in AdGreen and Ad Net Zero are an illustration of this;
- from a regulatory point of view, under the supervision of the Legal Department, various teams monitor international and national regulations in order to anticipate changes concerning us or our clients, to develop our standards, and to call upon external experts where applicable;
- with regard to possible carbon taxes, the objective is to reduce all sources of carbon emissions without exception, and to work on long‑term projects such as that of a Carbon Fund.
- Risk outlook: these changes are expected in the coming years, but with a low impact in the short term in view of the work undertaken within the Groupe.The Climate Task Force meets once a year, as needed, and works in thematic sub‑groups to examine, any new risks and/or opportunities, to share best practices, and to implement actions that strengthen the Groupe’s resilience in the face of climate hazards and their consequences. It is also working on a transition plan. This work has facilitated two projects carried out in close cooperation between the Secretary General and the Finance Department: one on the internal price of carbon, the other on the anticipation of the Groupe’s future needs in carbon credits, with several options in terms of Carbon Funds.
- The internal carbon fee or ICF (Internal Carbon Fee). The Management Board approved the principle of an internal carbon price of euro 50 TeqCO2. This price was built by integrating three parameters:
- the price of voluntary carbon credits for REDD+ and sequestration‑type projects;
- a contribution to the financing of internal actions to facilitate the ecological transition (R&D, new tools or systems);
- support for innovation in subsidiaries’ products and services to help the Groupe’s clients in their own transition.
This ICF will be applied to all Groupe entities starting with emissions in 2023, with four years of previous data (2019, 2020, 2021, 2022, 2023) showing the evolution of impacts and their costs since the reference year used for carbon trajectory calculations (notably the targets validated by SBTi with 2019 as the reference year). This ICF covers scopes 1+2+3 carbon emissions including travel, of which air transportation and direct purchases. Even if these initial estimates result in a fairly low ICF, it is expected of this exercise that the subsidiaries will better assess the financial impacts of their own carbon emissions, which should help accelerate the implementation of all solutions to reduce these impacts.
- Anticipation of future needs in terms of carbon credits. In 2023, the Publicis Groupe Management Board approved the proposal to join the Climate Fund for Nature Fund managed by Mirova/Natixis. It is a fund shared with other companies and investors whose objective is to support projects dedicated to the protection and restoration of nature with co‑benefits for biodiversity and communities in several countries. A majority of them will take the form of carbon phase‑out projects: afforestation, reforestation, restoration of key natural ecosystems, such as mangroves, or natural regeneration, as well as regenerative agriculture and agroforestry projects. The Fund is already supporting an ambitious project to protect primary forests in Peru in partnership with a local NGO and indigenous communities. Various other projects are at an advanced stage of study, including mangrove and land restoration in Latin America, Africa and Southeast Asia. A euro 20 million investment will enable the Groupe to receive carbon credits for around fifteen years to offset residual and irreducible carbon emissions.
