4.2.1.3 Risks associated with environmental and climate issues
In 2025, the Groupe revised its Climate risk mapping, based on the work carried out in 2022. With the help of an external firm, several scenarios were taken into consideration. This work on climate risks was aligned with the method used by the Groupe’s Risk Management (time horizon, frequency, financial impacts, mitigation measures), and was analyzed in accordance with the recommendations of the TCFD (Task Force for Climate-related Financial Disclosure). The main conclusion of this updating exercise is the need to integrate the speed of climate phenomena and their increasing intensity.
The Company may be faced with physical risks linked to climate change in various cities (flooding, high heat, etc.) that could potentially disrupt its operations and adversely affect the health of employees, as described in the risk analysis in Section 4.2.1.3 below. Mitigation measures have been established and taken, both in terms of business continuity and support for employees who may face difficulties.
The two working scenarios were:
- a low-carbon transition scenario compatible with global warming limited to 1.8°C by 2100 (RCP 2.6);
- a trend scenario leading to global warming of more than 4°C by 2100 (RCP 8.5). [E1-ESRS 2 IRO-1-AR 11 (a), E1-ESRS 2 SBM-3-AR 18 & AR 19, E1-ESRS 2 SBM-3-48, E1-ESRS 2 IRO-1-20 (a), (b) & (c), E1-ESRS 2 IRO-1-21, ESRS E1-9-66 (a) to (d)]
The Climate Task Force, led by the Groupe’s CSR Department with the support of the Risk Management, Finance, IT and GSO (infrastructure and information systems security), Legal, Real Estate and Insurance Departments and corporate teams, took part in the work. A debriefing was accompanied by training to share the latest information on climate issues with these teams. This group works in the form of topical sub-groups in order to examine possible new risks and/or opportunities, to share best practices, and to propose actions that strengthen the Groupe’s resilience in the face of climate hazards and their consequences.
- Physical risks: the physical risk analysis follows the recommendations of the TCFD (1) It takes into account the geographical location of offices, employees and data centers. It analyzes the possible alteration of service continuity for customers and possible disruptions in the normal operation of the Company. It includes the study of the following climatic phenomena: high temperatures, rising sea levels, extreme rainfall with flooding, major fires, tornadoes. By 2025, the 100 locations of the Groupe’s main offices across five continents had been mapped. None of the buildings where the Groupe and its subsidiaries are located has been identified as presenting a major climate risk. [E1-ESRS 2 IRO-1-20 (b), E1-9-66 (b) and E1-9 67]
- 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 constraints for certain products, or the possible occurrence of additional taxes. The issues surrounding carbon taxes in different forms were analyzed in detail.
4.2.1.4 Opportunities related to the fight against climate change [E1-2-25 AR 16 et AR 18]
92% of the Groupe’s Top 100 Clients have defined their climate trajectory with public information, verified by third parties.
The ecological transition has already been a reality for several years: clients ask their agencies not only to measure the impact of their marketing and communication actions, but also to identify solutions to reduce their carbon footprint. The Groupe supports its clients in their own ecological transformation, establishing partnerships with specialized third parties and startups, or with expert organizations that can help implement operational changes.
Climate issues are also an opportunity for innovation in terms of new services to be offered to customers. The Groupe relies on the following levers:
- a specific request in terms of support for clients and their marketing related to their transformation towards more sustainable products, less impactful and adapted to changes in consumer behavior (environmental trade-off criteria, use of the circular economy, privileged proximity, etc.). Consumer expectations are heightened in terms of traceability, transparency and truth fulness;
- the Company’s ability to innovate and help clients reduce their own emissions, particularly those related to their marketing and communication, through adapted solutions, working with partners and suppliers committed and aligned behind these same carbon emissions reduction imperatives to achieve Net Zero. The Publicis approach is collaborative, resulting in various tools or services built with the help of partners and third-party experts.
