Climate-related risks were analyzed and placed in two categories: transition risks, arising from the shift to a low-carbon economy and all the changes that it implies, and physical risks, along with their potential repercussions on business activity and on supply chains. Short-term (<2030), medium-term (2030-2040) and long-term (2040-2050) milestones were established for each risk.
| TRANSITION RISKS | SHORT-TERM | MEDIUM-TERM | LONG-TERM | DESCRIPTION AND IMPACT ON THE GROUP’SPERFORMANCE |
|---|---|---|---|---|
SHORT-TERM (< 2030) |
MEDIUM-TERM (2030-2040) |
LONG-TERM (2040-2050) |
DESCRIPTION AND IMPACT ON THE GROUP’SPERFORMANCE
| |
| REGULATORY AND COMPLIANCE RISKS | REGULATORY AND COMPLIANCE RISKS SHORT-TERM ⓧ | REGULATORY AND COMPLIANCE RISKS MEDIUM-TERM ⓧ | REGULATORY AND COMPLIANCE RISKS LONG-TERM
| REGULATORY AND COMPLIANCE RISKS DESCRIPTION AND IMPACT ON THE GROUP’SPERFORMANCE CO2 emissions regulations for vehicles are frequently updated to apply increasingly stringent standards. In Europe, the CAFE emissions target of 95g CO2/km for new passenger cars as of 2020 was adjusted in 2021 to apply the WLTP standard. In the event of non-compliance, a penalty payment of 95 euros per excess gram per vehicle sold is due. Based on current sales volumes, each excess gram of CO2/km would incur a penalty of approximately €120 million. Regulatory changes may also introduce traffic bans or restrictions for certain vehicles. These changes may impact R&D costs and/or production costs, arising from the need to adapt our vehicles to the new standards. |
| TECHNOLOGY RISKS | TECHNOLOGY RISKS SHORT-TERM ⓧ | TECHNOLOGY RISKS MEDIUM-TERM ⓧ | TECHNOLOGY RISKS LONG-TERM
| TECHNOLOGY RISKS DESCRIPTION AND IMPACT ON THE GROUP’SPERFORMANCE The Group is building its offering around lesser-polluting vehicles, in particular by expanding electric vehicle ranges and designing hybrid solutions for internal combustion engines. The introduction of these technologies, which offer different performances in terms of cost, customer service and CO2 emissions, may not match the market’s expectations and pace of growth. CO2e emissions reduction targets will also entail the adjustment of industrial processes and the rollout of low-carbon production technologies in the short and medium terms. The necessary modernization of plants to increase their energy efficiency may push up production and R&D costs. |
| RISKS RELATED TO MARKET CHANGES | RISKS RELATED TO MARKET CHANGES SHORT-TERM ⓧ | RISKS RELATED TO MARKET CHANGES MEDIUM-TERM ⓧ | RISKS RELATED TO MARKET CHANGES LONG-TERM ⓧ | RISKS RELATED TO MARKET CHANGES DESCRIPTION AND IMPACT ON THE GROUP’SPERFORMANCE Combined with regulatory changes, the transition to a low-carbon economy may bring about behavioral changes among consumers, such as a shift toward smaller or more energy-efficient vehicles or toward shared mobility, more quickly than anticipated. A mismatch between the product/service offering and consumer expectations would expose the Group to a decline in revenues. |
| REPUTATIONAL RISKS | REPUTATIONAL RISKS SHORT-TERM ⓧ | REPUTATIONAL RISKS MEDIUM-TERM ⓧ | REPUTATIONAL RISKS LONG-TERM
| REPUTATIONAL RISKS DESCRIPTION AND IMPACT ON THE GROUP’SPERFORMANCE Environmental issues (carbon footprint reduction and impact on air quality) are a concern for all stakeholders (employees, NGOs, users, etc.) A mismatch between the Group’s product/service offering and environmental requirements could harm its brand image and negatively influence customer purchasing decisions, leading to a decline in revenues. It could also make the Group less attractive to suppliers. A strong environmental reputation also contributes to attracting talent and increasing employee pride in belonging to the Group. |
| WORKFORCE RISKS | WORKFORCE RISKS SHORT-TERM ⓧ | WORKFORCE RISKS MEDIUM-TERM ⓧ | WORKFORCE RISKS LONG-TERM
| WORKFORCE RISKS DESCRIPTION AND IMPACT ON THE GROUP’SPERFORMANCE The accelerated pace of technological change will create a need to update know-how by investing in training and acquiring new skills. |
