Climate Report April 2021

Expert guide

IDENTIFIED CLIMATE-RELATED RISKS AND THEIR 
IMPACT ON BUSINESS ACTIVITY 2/2

 

PHYSICAL RISKSSHORT-TERMMEDIUM-TERMLONG-TERMDESCRIPTION AND IMPACT ON THE GROUP’S PERFORMANCE
 

 

SHORT-TERM

(< 2030)

 

MEDIUM-TERM

(2030-2040)

 

LONG-TERM

(2040-2050)

 

DESCRIPTION AND IMPACT ON THE GROUP’S PERFORMANCE

 

EXTREME WEATHER EVENTS/NATURAL DISASTERS

EXTREME WEATHER EVENTS/NATURAL DISASTERS

SHORT-TERM

 

EXTREME WEATHER EVENTS/NATURAL DISASTERS

MEDIUM-TERM

EXTREME WEATHER EVENTS/NATURAL DISASTERS

LONG-TERM

EXTREME WEATHER EVENTS/NATURAL DISASTERS

DESCRIPTION AND IMPACT ON THE GROUP’S PERFORMANCE

Some extreme weather events may disrupt or, in more serious cases, temporarily interrupt the activity of a number of the Group’s production and logistics facilities. An increased frequency or intensity of floods, hurricanes or droughts, combined with higher temperatures and sea levels, can push up risk prevention and maintenance costs, as well as insurance premiums.

 

RESOURCE SCARCITY

RESOURCE SCARCITY

SHORT-TERM

RESOURCE SCARCITY

MEDIUM-TERM

RESOURCE SCARCITY

LONG-TERM

RESOURCE SCARCITY

DESCRIPTION AND IMPACT ON THE GROUP’S PERFORMANCE

The increasing scarcity of some natural resources, such as water, may directly impact the automotive industry. It may oblige the Group to make investments to reduce its consumption or pay financial compensation to residents living near production facilities or to local communities.

Furthermore, the use of new raw materials such as cobalt may generate upward price pressure, as sales of electrified vehicles steadily grow.

STRUCTURAL GEOGRAPHIC AND GEOPOLITICAL CHANGES

STRUCTURAL GEOGRAPHIC AND GEOPOLITICAL CHANGES

SHORT-TERM

 

STRUCTURAL GEOGRAPHIC AND GEOPOLITICAL CHANGES

MEDIUM-TERM

STRUCTURAL GEOGRAPHIC AND GEOPOLITICAL CHANGES

LONG-TERM

STRUCTURAL GEOGRAPHIC AND GEOPOLITICAL CHANGES

DESCRIPTION AND IMPACT ON THE GROUP’S PERFORMANCE

Climate change may lead to structural and geopolitical changes in certain regions. Because the Group has many sites around the world, this could directly impact its activity. Instability in one region or country could require the Group to adjust its industrial strategy.

Regional and geopolitical instability can also create weaknesses in the supply chain ecosystem and oblige the Group to reorganize its value chain, pushing up purchase costs.

SPREAD OF DISEASES

SPREAD OF DISEASES

SHORT-TERM

SPREAD OF DISEASES

MEDIUM-TERM

SPREAD OF DISEASES

LONG-TERM

SPREAD OF DISEASES

DESCRIPTION AND IMPACT ON THE GROUP’S PERFORMANCE

By forcing the shutdown of production facilities or sales outlets, epidemics and pandemics can have a direct impact on sales and manufacturing, and therefore on revenues.