APC 2013 Annual Report Download - page 43

OVERVIEW OF THE GROUP'S STRATEGY, MARKETS AND BUSINESSES
RISK FACTORS
The Group’s Human Resources strategy is strongly anchored in Resources for employees’ developmental endeavors are
its ‘Total Employee Experience’ philosophy, ensuring that Human provided through an upgraded unified online platform that
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Resources offers at every stage (from “Start” to “Move On”) of an addresses their learning and career needs. The very same
employee’s life cycle within the company remain attractive in platform gives managers visibility of available talent them across
order to recognize, reward and retain employees. the whole company for recruitment, and allows managers to
effectively manage and assess the talent under their charge for
Employee welfare is boosted by two key developments: 1) succession planning. With a best-in-class system, Human
continuation of the ‘Cool Sites’ program to promote engaging Resources is able to better provide key services in support of
workplaces, and 2) the Health & Welfare corporate policy was their customers and stakeholders – a positive step up for its
updated in 2013 to cover dependants and will be fully Human Resources digitization strategy.
implemented by 2015.
Employee engagement stays high on the agenda with the Group
To nurture the resilient and innovative workforce required for its
seeking both blue and white-collar sentiment and gauging
success, the Group encourages employees to take ownership of
workforce satisfaction through bi-annual survey exercises. Its
managing their performance and career development. From the
employee engagement efforts contribute to a keen focus on
point of joining, employees are immersed in a learning culture
employer branding; the Group has actively reached out to
founded upon three pillars: education, experience and exposure
prospective employees through social media platforms and
(3Es). Learning initiatives in particular are actively communicated
events for targeted groups, and has been ranked previously as
and driven by Human Resources. Internal processes and
an ‘Employer of Choice’.
programs are geared towards creating learning opportunities for
employees, be it through onboarding for new employees,
To augment the quality of its workforce and to reflect its growing
international mobility, job role changes, career development global presence, the Group has committed to a renewed
training or managing talent. diversity and inclusion policy to tap on talent and to better
leverage on the rich diversity of its existing workforce.
Industrial and environmental risks
Defective products or design flaws may cause The Group’s plants and products are subject to
harm to persons and property and subject us to environmental laws and regulations
product liability claims and other adverse effects Our plants and products are subject to extensive and
increasingly stringent environmental laws and regulations in the
Despite its testing and quality procedures, the Group’s products countries in which we operate.
might not operate properly or might contain design faults or
defects, which could give rise to disputes in respect of our
To limit risks related to the environment in general, the Group is
liability as seller or manufacturer, notably in Europe, where liability
involved in a process to continuously improve the environmental
related to defective products could lead to a loss of revenue,
performance of its plants and products. In1992, Schneider Electric
claims under warranty and legal proceedings. Such disputes
drafted a formal environmental policy. This policy is designed to
could reduce demand for our products or harm our reputation
improve production processes, promote eco-design, and integrate
for safety and quality. To prevent or limit these risks, Schneider
customer expectations into our environmental protection
Electric immediately recalls products if there are any doubts
approach. This policy also aims to identify, assess and prevent
whatsoever that a product or one of its components is not 100%
environmental risks, in order to guarantee full compliance with all
safe for people and/or equipment. At the end of2009, the Group
environmental laws and regulations applicable to the Group’s
launched a broad recall campaign concerning a range of low
businesses, particularly those in force in the European Union and
voltage capacitors produced between 2004 and 2008. This
considered more rigorous (notably the WEEE, RoHS directives and
campaign continued throughout 2010 and 2011 and was
REACH Regulation). We record environmental provisions when the
concluded in this first half of2012 in accordance with schedule
risks can be reliably measured or it is probable that clean-up work
announced in the 2011 report. Another broad recall campaign
will be performed and the related costs can be reasonably
that is still ongoing involves our global recall of Vigi Compact
estimated. Provisions for environmental risks totaled EUR62million
NS/NSX circuit breakers produced between 2009 and 2011,
as of December31, 2013. If no risk has been identified, Schneider
which began in2011 and was continued in2012 and 2013. It is
Electric will not estimate the financial cost of environmental risks.
expected to be concluded in2014. No broad product recall was
We expect our spending on environmental compliance programs
begun in2013.
to increase as a result of changes to existing environmental
regulations and the introduction of new regulations.
Some of the expenses incurred by Schneider Electric in the
context of product recalls are covered by the liability insurance
It is possible that Schneider Electric may be required to pay
program described in the “Insurance” section below.
significant fines or compensation as a result of past, current or
future breaches of environmental laws and regulations by
Provisions for product risk totaled EUR429million as of
companies that are currently or were previously members of the
December31, 2013 (see note23 to the consolidated financial
Group. This exposure exists even if we are not responsible for the
statements).
breaches, such as in cases where they were committed in the past
by companies or businesses that were not part of the Group at the
time.
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2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC