GROUP OVERVIEW 1 Internal control and risk management Emergency situations 1.9.4.8 Environment To guarantee the efficient handling of emergency situations that The Company has developed a comprehensive methodology to may evolve into a crisis, the Group has improved its crisis reporting evaluate environmental risks as part of its due diligence process processes, based on redundant communication systems and a for all new acquisitions and developments. Klépierre thus does standardized crisis assessment approach. This should facilitate the environmental impact studies and examines all approaches adopted immediate apprehension at the highest management levels, anytime, by the promoter and/or the previous owner (such as environmental anywhere, of the true nature of the crisis that could develop. certifications). Environmental risks are included in the risk mapping at The organization of the crisis management system has been improved, asset level and are closely incorporated into technical risk monitoring. the crisis units supposed to monitor and/or manage events at each Studies of natural risks (earthquakes, mud slides, flooding and management level are clearly identified and tailored to the different decontamination) and technological risks are undertaken before any types of crisis. A permanent watch system allows standardized investment decision is taken. Major environmental risks are factored and efficient response right from the very early stages of the into acquisition and disposal decisions. crisis. The Group has become more resilient and has improved the Regulations on the control and maintenance of wastewater networks, implementation of its business continuity plans. domestic supply water stations and distribution networks, and The crisis management system is tested as part of full-scale exercises. hydrocarbon evacuation and storage facilities exist in many countries. These tests, which measure team responsiveness, are run at least In addition, internal measures have been implemented to cover certain once or twice a year and may be done when customers are present risks that are not always covered by regulatory obligations. or outside of opening hours depending on the country. These good practices include building structure audits, energy audits, analyses to control presence of legionnaire’s disease, and thermal 1.9.4.7 Business continuity checks on electrical installations. Under its risk management policy, Klépierre has to: For more than five years Klepierre has had an ambitious environmental performance program designed to reduce natural resource > identify its business continuity requirements; consumption (operational energy efficiency, reduction of carbon emissions, limited use of drinking water, renovation, etc.) and to > prepare the corresponding action plans; continually improve supply quality. > perform regular tests to measure the efficiency of this plan; A series of initiatives have also been put in place to limit Klepierre’s > define and implement a specific crisis management framework. dependence on increasingly scarce fossil-based natural resources through the increased use of renewable resources (self-generation of The Group updated and tested its Business Continuity Plan (BCP) renewable energy, purchase of green electricity, promotion of “green” following the relocation of the Group’s head office in September 2009. modes of transport, etc.) The framework is predicated on a set of organizational and functional Moreover, the Company has an ambitious certification approach for its procedures geared to the possible types of incident. The following development activities and has set itself the goal of obtaining at least scenarios are covered: BREEAM Excellent for all new developments and major expansions. > a central building is damaged, partially or totally inaccessible, Klepierre has an active and ambitious approach to operational which totally or partially affects employees’ activity; excellence designed in particular to optimize asset management > the Group’s server room is damaged, resulting in long-term so as to continually reduce heating and/or air conditioning needs unavailability of computing resources, thus blocking any use of IT and thereby manage potential temperature variations without tools such as messaging and applications; excess consumption. This excellence approach can also be seen in > an external crisis situation (pandemic, instructions from public the development of new projects with a broad goal of continually authorities restricting travel and/or closing schools, etc.) is reducing greenhouse gas emissions and thereby reducing Klepierre’s declared, making it impossible for employees to go to their places dependence on fossil fuel in order to protect it from fluctuations in of work (central buildings and shopping centers, etc.). energy cost. The BCP is fleshed out by individual departments and divisions: The following processes have thus been put in place for these each manager defines the activities covered, the relevant staff and environmental risks: identification of roles and responsibilities within requirements for ensuring continuity of business. If a central building each country, review of procedures, documents and modus operandi, is affected, teams are transferred to a failover site. identification of possible emergencies but also permanent and periodic controls with the goal of reducing the occurrence of such In the event of a crisis, a crisis unit is responsible for coordinating the risks. overall response to the situation that has occurred, ensuring the safety In addition, regular meetings are organized with all the correspondents of the Group’s entire staff and business continuity. It also has to make in charge of the environmental approach within the 16 countries where sure that its response to the crisis helps to create confidence in the Klépierre operates, in order to ensure permanent consistency between Group and to reduce the public’s potential concerns. the Group’s issues and processes and the operational and effective During periods of crisis, the crisis unit makes any decision necessary implementation of these policies. for the smooth operation of the Group, until the situation reverts to In addition to the general liability insurance cover taken out to hedge normal. against the risk of accidental pollution, Klepierre also subscribed to a further specific policy increasing its coverage for environmental damage, and in particular to cover Klepierre’s liability in respect of damage resulting from gradual pollution. 36 KLÉPIERRE 2017 REGISTRATION DOCUMENT