- Physical risks: they are associated with the impacts of climate change due to the geographical location of the offices, employees and data centers, which may affect employees and their working environment, alter the continuity of service for clients and the normal operation of the Company. Six scenarios were examined, taking into account rising temperatures, rising sea levels, extreme rainfall with flooding, major fires and tornadoes. None of the buildings where the Groupe and its subsidiaries are located has been identified as presenting a climate risk, an analysis confirmed with the Groupe’s insurance companies. [E1-ESRS 2 IRO-1-20 (b), E1-9-66 (b) and E1-9 67]
- Mitigation measures for physical risks:
- the Talent and HR teams in the countries have extended the spectrum of systems enabling employees to be supported in terms of physical and mental health prevention throughout the year, with the possibility of strengthening these systems, as was the case with the pandemic. With the internal tool LionAlert, the Groupe can contact employees in case of extreme emergency and ensure they are safe. LionAlert is activated locally according to events (earthquake, cyclone, flood, major fire, but also acts of terrorism, political tensions, etc.). Employees regularly update their contact information;
- the IT Department implemented the necessary measures to ensure continuity of service from one region of the world to another; tests and backup plans are carried out regularly. The Re:Sources IT teams are able to equip all employees worldwide for an extended remote working configuration with the appropriate equipment for IT, connectivity and office automation (this was already the case for years in regions of the world subject to major climate hazards, and this has covered 100% of the Groupe since the pandemic);
- in terms of energy, the switch to 100% renewable energy, expected before 2030 in the Groupe, will reduce the impact of non-renewable energy for electricity needs;
- ISO 14001 certification provides a method that helps anticipation strategies, especially for entities that may be the most exposed.
- 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.
- Internal carbon price or ICF (Internal Carbon Fee). In 2023, the Management Board approved the principle of an internal carbon price of 50 euros per TeqCO2 [E1-8-63 (a) & (b)] 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. [E1-8-63 (c)]
This ICF (available for information only) measures the change in impacts and their costs since the reference year used for the carbon trajectory calculations (in particular the targets validated by SBTi with 2019 as the reference year). This ICF covers Scopes 1 + 2 + 3 carbon emissions such as travel, including air transportation and direct purchases. Even though these initial estimates result in a fairly low ICF, it is expected from this exercise that 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. [E1-3-29 (c), E1-8-63 (b), E1-8-AR 65]
- 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. [E1-ESRS 2 IRO-1-20 (c), ESRS 2 SBM-3-449 (b)]
- Mitigation measures on transition risks: 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 illustrations 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. [ESRS 2 SBM-3-48 (b)]
- 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.
- Climate for Nature Fund. In 2023, the Publicis Groupe Management Board approved the proposal to join the Climate Fund for Nature, 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. This euro 20 million investment will enable the Groupe to receive carbon credits for around fifteen years to offset residual and irreducible carbon emissions.
