MANAGINGRISK
Everyone plays a part in risk management at Air Liquide. From Operations to the Board of Directors, from each employee to the CEO, the Group has established a set of procedures to identify, manage, and mitigate risks linked to its own business as well as to the activities of its subsidiaries and suppliers.
VIGILANCE PLAN: IDENTIFYING AND PREVENTING RISKS
Since 2017, Air Liquide has implemented a Vigilance Plan that is designed to identify and prevent risks in three areas: human rights and fundamental freedoms, human health and safety, and the environment. The plan encompasses the activities of the Group itself but also of its subsidiaries, suppliers, and subcontractors. It is organized around five measures:
- Risk mapping;
- Procedures to regularly assess the situation of subsidiaries, suppliers, and subcontractors;
- Appropriate measures to mitigate risk and prevent serious impacts;
- An alert mechanism that collects reports of potential or actual risks;
- A monitoring scheme to follow up on the measures implemented and assess their effectiveness.
RISK COMMITTEE: STEERING MAJOR RISKS
The Risk Committee provides its expertise to entities that are required to manage risks within their respective scope of responsibility. It meets twice a year under the chairmanship of the Chief Executive Officer and in the presence of the General Secretary and the Group Vice President of Strategy, and brings together the heads of the Group Control and Compliance, Legal, Finance, Communication, Safety and Industrial Systems, Human Resources and Sustainable Development Departments as well as a representative from Operations. It is tasked with monitoring active risks for the Group, reporting on progress in priority measures to mitigate major risks, drawing up a risk management summary, and determining the Group’s guidelines in the area.
This diagram shows the organizational structure for duty of care governance, which is organized into three levels.
- Supervisory bodies - The Board of Directors oversees two committees that meet in joint session: the Environment and Society Committee and the Audit and Accounts Committee. These committees oversee, respectively, duty of vigilance risks (negative impacts) and environmental and social risks (for the company).
- Control Bodies - The Executive Committee oversees two committees: the Ethics and Compliance Committee and the Risk Committee.
- Operational Management Bodies - Four areas are managed through a central Duty of Vigilance Department: Human Rights (Human Resources Management Committee, Digital Security Committee), Health and Safety - Security (Industrial and Safety Committee), Environment (E-Enrisk Committee, Sustainable Development Department), and Suppliers (Group Procurement Management Committee).
The Vigilance Plan is approved by the Board of Directors.
The Vigilance Plan is reviewed by the Ethics and Compliance Committee and the Environment and Society Committee.
The Vigilance Plan
Air Liquide is committed to respecting human rights, protecting people and preserving the environment in the conduct of its business worldwide.
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