3. Environment The Group’s reported emissions (three scopes) totaled 3,843 ktCO2e in 2023. Approximately 91% of these emissions correspond to scope 3, and more specifically to subcontracted transport. This fact underlines the importance for the Group of working closely with its partners with the same approach to decarbonization. Actively decarbonizing its operations also represents opportunities for GEODIS, not least by developing business with highly committed customers and by cutting costs through more energy-efficient operations. Adaptation risks Transport and logistics chains not only have an impact on increasing GHG emissions, but they are also vulnerable to global warming. Physical risks can be qualified in two ways: ● acute risks arising from extreme events: heat waves or cold snaps, extreme wind-related hazards (storms, tornadoes) or water-related hazards (droughts, floods), landslides; ● chronic risks resulting from gradual changes: altered temperatures (air, fresh water and sea water), altered wind and precipitation conditions (rain, hail, snow), rising sea levels, soil erosion. These hazards can affect GEODIS’s activities in a variety of ways: impacts on health and working conditions, disruption of activities, inability to carry out essential logistical missions (in the healthcare sector, for example), deterioration of goods and equipment. Increasingly intense heat waves can damage transport infrastructures, while flooding can lead to road closures, and so on. In 2022, for example, river freight traffic was severely disrupted by drought and low water levels in the Rhine, causing major disruption to supply chains. For GEODIS, physical climatic risks can therefore have repercussions on employee health and safety, as well as leading to a loss of business and restoration costs. To anticipate these risks, the Group has set up operational control systems such as business continuity programs, subscriptions to alert systems, hurricane protection rooms, heatwave programs and regular inspections of buildings and equipment. To help prepare for such events, GEODIS introduced a strategy in 2023 to adapt to the effects of climate change. An analysis of the exposure of Group sites to physical climatic hazards has been carried out (see section 3.1.5). This analysis serves as a reference for site vulnerability studies and the definition of additional action plans. 3.1.2 Governance The climate challenge is addressed at the highest level of the Group and is fully integrated into the CSR governance, described in section 2.4 of this document. Climate-related issues are discussed at least quarterly at Management Board meetings. Climate risks are fully integrated into the Group’s risk management, which follows that of the shareholder, SNCF(1). Issues, progress and commitments are presented to the Supervisory Board and at meetings of the Audit and Risk Committee. The executive vice president, Sustainability is a member of the Group’s Management Board. The Group’s CSR policy and commitments, including for the climate, are shared and validated by the Management Board. In 2023, the Management Board approved the Group’s commitment to employ a sciencebased approach (SBT), as well as the roadmap required to achieve it. This plan was also presented to the Supervisory Board. The head of the Climate and Environment programs reports to the executive vice president, Sustainability. She manages all actions forming part of the Group’s climate plan, in close collaboration with the lines of business and the regions, all of which have a team responsible for climate-related issues. She organizes the consolidation of climate-related information and metrics. Since 2022, the annual variable compensation of the members of the Management Board and the Group’s Top Executives, 156 senior executives in all, has incorporated a CSR component which includes a climate metric accounting for 9% of the total variable compensation. This individual target relates to concrete levers that can be activated by each individual (energy efficiency of buildings, percentage of alternative vehicles, percentage of renewable energy, etc.). The LongTerm Incentive (LTI) of these executives also includes a CSR component, with a target of 10% of the total LTI to reduce greenhouse gas emissions from scopes 1, 2 and 3, in line with the Group’s Science Based Targets commitments. 3.1.3 Awareness-raising campaigns In 2023, GEODIS rolled out climate awareness and training initiatives with and for Group employees. In January, a giant Climate Fresk was used to raise the awareness of 176 Group managers, including the Management Board, to climate issues. Subsequently, numerous other Climate Fresk sessions were organized by GEODIS in the regions, and were run by inhouse facilitators. By the end of 2023, the Group had 33 internal facilitators, and more than 800 employees had taken part in the Climate Fresk and in workshops designed to encourage collaborative discussion on the levers to be activated to decarbonize the Group’s transport and logistics activities. The campaign to promote GEODIS’s climate culture was completed during the European Week for Sustainable Development with the launch of the ”Time For Action“ Climate School. Based on the notion of better understanding (1) https://medias.sncf.com/sncfcom/finances/Publications_Groupe/sncf-group-annual-financial-report-2023.pdf 42 - 2023 ACTIVITY AND SUSTAINABILITY REPORT
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