Challenges and risks:
understanding and forward-planning

We continuously analyze the major challenges to our business based on soft signals detected in our environment. In doing so, our goal is to reduce our exposure to risks and prepare effective responses when they cannot be avoided.

Identifying priority issues

In 2022, as part of preparations for the Beyond plan, we updated our 2017 materiality matrix through a “double materiality” assessment, which measures both financial and impact materiality.

The exercise confirmed the focuses of the People, Planet and Progress pillars and highlighted the following priority issues:

  • Governance: IT security, personal data, and business ethics;
  • Human resources: talent management, promotion of diversity, and skills development;
  • Environmental protection: the fight against climate change, supply chain decarbonization, development of eco-designed solutions, promotion of sustainable mobility, and healthy and sustainable food;
  • Economic impact: customer satisfaction, innovation, accessibility, and impact of our solutions.

Edenred’s double materiality matrix

A closely monitored risk assessment

In 2021, we remapped the risks that could impact our business or reputation in all of the regions where we operate. The Audit and Risks Committee reviewed these items in 2022, including the related action plans, and found no change in risk probability or impact. The table of risk factors therefore remains unchanged from the prior year.

Le tableau des facteurs de risques reste donc inchangé par rapport à l’année précédente.

Risk category Examples
Financial risks Currency fluctuations, client default
Legal risks Change in local laws and regulations adversely affecting Group solutions
Information system and cybercrime risks Cyberattack, information system resilience and personal data protection
Group strategy and competitive environment risks Competitive pressure and acquisition strategy
Operational risks Business continuity and voucher fraud
Climate risks Impact of carbon taxes on work-related mobility

The CSR Department conducted an additional review of non-financial risks based on international standards and external benchmarks, which was also monitored by the Audit and Risks Committee. The impact of the non-financial risks was assessed using the Group’s risk mapping methodology, taking into account the opinions of stakeholders.

Conducted jointly with the materiality assessment, the review identified the non-financial risks liable to impact Edenred or third parties. Several major risks emerged as part of the process, with specific action plans set up to manage them. These risks include:

Risks Action plans examples
Risks related to competition law, corruption and money laundering. We address these risks by continuously strengthening and updating our prevention and training systems for all employees.
Risks related to personal data protection, information system security and cybersecurity. We notably address these risks by putting in place proactive programs and policies, and by deploying specially developed tools (in particular public and private clouds)
Transition risks related to climate change. We address these risks through our Beyond Fuel strategy and by developing more environmentally friendly solutions, for example.