LISI 2012 FINANCIAL REPORT
91
5
Risk factors
these units with at least a very significant majority and most
of them at 100%.
2.2 Strategic risks
These risks are identified as major risks likely to compromise
durably the completion of the strategic plan as described in
paragraph 1.1. All identified risks which are classified in the
"HIGH RISK" category of occurrence are the subject of insurance
coverage (cf. paragraph 3.1) or of a corrective action plan and
are treated as a priority by the managements of the various
divisions.
2.3 Environmental risks
The LISI Group is committed to protecting the environment
whilst manufacturing its products. Any negative impact
resulting from its activities is minimal, and specific attention is
paid to water, energy and waste management.
Its industrial and environmental policy aims to manage its
major risks, which are:
- the risk of fire and its potential impact on affected sites or
their environment.
- the risk of soil or water table pollution.
This risk management policy involves:
- the ongoing improvement of the fire protection of the sites,
which are subject to annual monitoring and visits.
- investment in protection systems, with the installation of
sprinkler systems or upgrading of existing systems.
- pollution risk prevention: the Group is implementing an
appropriate prevention policy.
As part of the manufacturing sites’ compliance program, and in
the absence of any ongoing legal disputes, the Group has made
provisions for an overall sum of €8.1m. Concrete measures are
being taken to prevent soil pollution on old sites, including
carrying out monitoring activities in concert with the local
authorities, on the one hand, and implementing retrofitting
work, on the other hand.
More specifically, a sum of €4.9 million has been established
which relates to the assessed cost of decontaminating the
Torrance site (California – USA) which suffered TCE (solvent)
pollution several years ago (before 1975). The process that
is currently in progress involves pumping and filtering
underground water downstream from the site. This treatment
has facilitated processing over 15 metric tons of TCE in shallow
pollution, and over 7 metric tons in the layers further from
the surface. The estimated amount at December 31, 2012,
facilitates handling of treatment in accordance with the
techniques recommended by our advisors. Liaison with the
authorities has led to the swift closure of the soils file and to
the acceptance of measures taken with regard to the deepest
waters.
As part of the Social and Environmental Responsibilities
requirements, LISI AUTOMOTIVE undertakes to reduce the
impact of its activities on the environment and to ensure
healthy, safe working conditions for all its employees and
service providers, as part of the Global Compact. Commitment
No. 7 states that "businesses are encouraged to apply the
precautionary approach to environmental challenges".
Commitment No. 8 plans to undertake "initiatives to promote
greater environmental responsibility". Finally, Commitment
No. 9 promotes "the development and dissemination of
environmentally friendly technologies". In order to comply,
LISI AUTOMOTIVE has implemented three specific measures:
standardization of practices and definition of indicators, risk
management organized around the COSO benchmark and
implementation of action plans for environmental safety.
2.4 Legal risks
The Group is involved in a limited number of legal proceedings
with third parties (not customers). All these disputes have
been reviewed with our Auditors and themost significant were
appreciated by the Audit Committee. Generally speaking, all
legal positions are determined and reviewed by third-party and
in-house specialists.
Except for the disputes referred to above, for a period covering
at least the last twelve months, no governmental, legal,
or arbitration proceedings (including any proceedings of
which the Group is aware, which is pending or of which it is
threatened) are to be reported that may have or have recently
had significant effects on the Group's financial situation or
profitability.
2.5 IT-related risks
For eachof its divisions, theGrouphas identified an IT safeguard
action plan likely to be implemented in the event of a serious
failure. In addition, the Group has insured risks of interruptions
and malfunctions of its IT systems with a specific policy.
