Making investment decisions
Through its investments, Air Liquide shapes the future of the Group and of industry. To ensure that investments reflect its financial and extra-financial commitments, the Group has set up a specific governance system under senior leadership.
Investments: strategic decisions taken at the very highest level
The Board of Directors is regularly informed of the evolution of the Group’s portfolio of opportunities, evaluates major investment projects and reviews the investment decisions required for the Group’s medium-term development, including those relating to the energy transition. The Executive Committee members examine investment projects in their scope of responsibility, within the Resources and Investment Committees (RIC).
Resources and Investment Committees for a 360° project assessment
The Resources and Investment Committees (RICs) review and approve proposed investments. RICs approve investment requests, medium and long-term contractual commitments, associated human resources requirements, as well as the environmental impacts of projects. In addition to considering the expected profitability of each project, investment decisions are based on a rigorous assessment in which the following criteria, in particular, are systematically reviewed:
- whether the project is located in an industrial basin with high potential,
- the competitiveness of the customer’s site, including factors such as size, production processes, environmental footprint, cost of raw materials, and access to markets,
- customer risk,
- country risk,
- whether the project is aligned with the Group's environmental objectives.
RICs typically meet once a month for each geography and each activity. Each Committee meeting is chaired by the member of the Executive Committee in charge of the geography or of the activity involved and brings together the manager of the cluster or business line concerned by the investment, along with representatives from the Group Finance department, Engineering & Construction and the Capital Implementation Group, who have a veto right. Additional participants may be invited to attend, including representatives of the Group Industrial Direction. The member of the Executive Committee with responsibility for Sustainable Development is consulted on projects submitted to the RICs, giving special attention to sustainability issues. RIC decisions are reviewed by the CEO.
CLIMATE AND INVESTMENT DECISIONS
To achieve decarbonization goals, investment plans must be compatible with the Group’s carbon trajectory. The investment process is now accompanied by the allocation and monitoring of an annual CO2 budget assigned to Group Operations, in order to steer this trajectory.