Harnessing knowledge

knowledge to overcome risks and challenges

As a responsible company, Edenred was aware of the social challenges and operational/cyclical risks associated with its operations long before the health crisis struck. The Group carries out a detailed review and analysis of its environment in order to be able to seize opportunities whenever they arise and avoid potential pitfalls.


Rising to the challenges

In 2017, Edenred conducted a materiality assessment to identify and prioritize the main social, economic and environmental challenges over which the Group may have responsibility.

The assessment identified seven priority challenges of major importance to Edenred and its stakeholders, which served as the basis for defining the broad contours of the Group’s CSR policy and laying the groundwork for subsequent strategic plans.

Edenred's materiality matrix

Edenred's materiality matrix

Leaving no risk behind

Under the supervision of the Audit and Risks Committee, the Group regularly identifies and analyzes some 200 risks that could potentially have a negative effect on its operations or reputation. Meticulously mapped out based on their financial impact and the probability of their occurring, they are divided into five broad categories :

  • Financial risks (such as currency fluctuations, client default)
  • Legal risks (such as change in local laws and regulations adversely affecting the Group’s solutions)
  • Information systems and cybercrime risks (such as cyberattack, personal data protection)
  • Group strategy and competitive environment risks (such as presence of competitors, acquisition strategy)
  • Operational risks (such as business continuity, voucher fraud)

The CSR Department conducts a supplemental review of non-financial risks based on international standards and external benchmarks. The impact of the non-financial risks is assessed using the Group’s risk mapping methodology, taking into account the views of stakeholders. Priority risks are those that relate directly to the priority challenges defined in the materiality assessment.

  • Talent management (with risks related to talent attraction, retention and training)
  • Sustainable and healthy food promotion (with opportunity to differentiate from the viewpoint of employee users and partner merchants)
  • Energy and climate change (with physical risks related to climate change)
  • Eco-design and circular economy (with transition risks related to climate change)
  • Business ethics (with risks associated with regulatory compliance and business ethics)
  • Responsible payment digitalization and client satisfaction (with risks related to stakeholder expectations)

The Group addresses these risks with specific actions plans and monitoring procedures. In 2020, these plans were adapted to local circumstances arising from the Covid-19 epidemic :

  • Business continuity, thanks to faster digitalization of solutions. In addition, the deployment of digital tools and preliminary crash tests made it possible to set up an efficient remote working system for nearly 95% of the workforce at the height of the health crisis;
  • Inclusion of a higher risk of client defaults in the forecasts for certain regions strongly affected by the economic crisis;
  • A mitigation of the risk of fake vouchers or the fraudulent use of vouchers, thanks to the use of digital media and fraud prevention and detection mechanisms.
Find out more on risk management

To find out more, read chapter 4 of the Universal Registration Document

Access the document