1.4 Trends and challenges The last three years have been marked by a succession and accumulation of global crises. No one could anticipate them but everyone has had to adapt to them: public health crises, economic crises, geopolitical crises. The uncertainty and extreme volatility inherent in this “world in crisis”, accentuated by the inevitable challenges linked to climate change, now constitute the new framework for action and development for businesses, individuals and for society at large. These crises have also highlighted the vital importance of global transport and logistics in sustaining economies in all circumstances: the complex interconnections of production centers, assembly, distribution and consumption between different areas of the globe require the specialized expertise of logistics providers such as GEODIS, which can supply optimized, innovative and resilient end-to-end transport solutions for its customers, ranging from small businesses to large multinational groups. In this context, several significant factors for the transport and logistics sector characterized 2021 and 2022 and could continue in the short or medium term. The first of these is the sustained growth of e-commerce. In spite of the economic slowdown observed in 2022, this channel has reached a very significant level, particularly for retail activities. This has generated an increase in the volume of small and medium-sized parcels to be delivered within short timeframes as close as possible to consumers in urban and suburban areas, entailing complete rethinks of flow and inventory management, optimizing them without compromising on service quality. To meet this demand, GEODIS constantly adapts and innovates, taking account of its customers’ omni-channel strategies and providing them with its know-how in real-time optimization of their logistics chains through complete visibility of their inventories and flows. The second relates to the pressure on energy supplies, particularly in Europe, which has led to an increase in prices and the adoption of a low-consumption approach in view of the economic risk generated and the threat of shortages. Even though the impact has been very limited for GEODIS, given its contractual arrangements, this volatility in the price and availability of energy – which could continue for a variety of reasons, particularly geopolitical ones – creates uncertainty in the planning of energy transformation schemes, which are essential to the decarbonization of the economy. Thirdly, the strengthening of regulations with regard to social and environmental impact, in particular linked to the European Green Pact, has imposed a sustained pace of transformation of fleets and the organization of certain logistics chains. As far as the climate and emissions in general are concerned, regulatory changes are particularly strong with the Fit for 55 European legislative package and the introduction of Low-Emission Zones (LEZs) for downtown deliveries. GEODIS is constantly monitoring and trying to anticipate these changes for each of its lines of business and geographical areas. However, the lack of visibility on the availability of technologies, infrastructures and access to decarbonized energies at a competitive cost is an obstacle to the anticipation that GEODIS wishes to initiate, in line with its commitment to a path to decarbonization in compliance with the Paris Agreement. The fourth factor is the fluidity of the employment market, which has affected many sectors of the economy, combined with the lack of attractiveness of the logistics industry, which has put a strain on the sector, particularly in the United States. GEODIS is addressing this situation proactively, raising awareness of the logistics industry and strengthening its employer brand, “GEODIS, join the talent pool”, which highlights its values and incorporates its vision of sustainable logistics. As it enters a new phase of its development with the launch of its new strategic plan, Ambition 2027, inspired by the successes and progress achieved by the company during its previous plan, Ambition 2023, the Group is aware of its responsibilities and the difficulties of a world that has become more uncertain and unpredictable. In such a challenging context of crisis, GEODIS’s teams have clearly shown to what extent the values that drive them (commitment, innovation, passion, trust and solidarity) constitute a solid foundation for the Group to contribute to a better future for its clients and, indeed, for all its stakeholders. Thanks to the underlying financial performance, it has been able to generate significant room for maneuver to innovate and to invest, whether organically or through targeted acquisitions. The new Ambition 2027 strategic plan is therefore a natural continuation of the previous plan, enhancing its ambition in terms of operational, financial, social and environmental performance. 16 2022 ACTIVITY AND SUSTAINABILITY REPORT 01 PROFILE AND AMBITION
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