702017 INTEGRATED REPORT

RISKS AND OPPORTUNITIES MAPPING

The changing demographic and environmental factors that characterise the world we live in today are setting a new scene for SUEZ customers (governments, local authorities, industry) and for the Group s business activities. Despite a macro-economic context that remains uncertain, the need for new environmental services continues to grow. And at a time when change happens fast, the demand for responsiveness and agility is a new challenge in itself. Strong and selective analysis of risks and opportunities consistent with progress on the UN SDG agenda (see p.33) is now more necessary than ever before.

AN INTEGRATED RISK MANAGEMENT SYSTEM The company s integrated risk management system aims to provide an overview of the risk portfolio using methods and tools that are common to all subsidiaries and functional divisions. The risks are categorised (strategic, financial, operational), assessed (in terms of importance and frequency) and quantified where possible. The way risks are processed is regularly reviewed to provide input for action plans at the various levels of the company.

> Resource depletion and

conflicts of use

> Increase in emerging forms of pollution

> Anarchic urbanisation in the least developed

countries

> Pressure on corporate responsibility

throughout the value chain

> Populist and protectionist movements

> Territorial discrepancies and social instability

> Platforms that make cities ungovernable

> Inclusive business models tailored to fragile

economic contexts

> Circular economy and secondary raw

material cycles > Pollution protection and clean-up solutions

> Smart city

> Infrastructure needs

> Recovery of waste as a local renewable energy

source

> Biodiversity loss > Impact of extreme weather events on infrastructure

> Price fluctuations of raw materials

> New competitors

> Cyber security

> Ethics of algorithms

> Job losses and skills inadequacy

> Smart management of resource and flows

> Citizens' participation

> Corporate Social Responsibility

> Changing consumption habits

> Attractiveness of a committed company

> New digital services

> New activities, new skills

> Slow techs

> Blockchain and cryptocurrencies:

solutions for secured and targeted funding?

> Alternative water resources

> Resilience solutions for cities and ecosystem

protection

> Low-carbon solutions

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DEMOGRAPHIC CHALLENGE

CLIMATE EMERGENCY

EXPECTATIONS OF CITIZENS

Risks Opportunities