Vilmorin & Cie - Annual report 2017-2018

1 ANNUAL REPORT Vilmorin & Cie 59 2017-2018 The likely consequences of actions carried out by computer would be as follows: direct or indirect financial loss, unauthorized copying (“theft”) of digital data, whether or not accompanied by public disclosure, temporary unavailability of information systems, destruction of data, loss of exclusivity of potential/technical and scientific assets, infringement of national or international regulations, negative brand image damage, temporary business slowdown. Managing the risk During fiscal year 2017-2018, Vilmorin & Cie took several measures to rationalize its IT operations, contributing to the information systems security (ISS). All its hosting services have been centralized in a secure, redundant, ISO 27001 certified and “Tier III” qualified hosting center in accordance with the Uptime Institute's standards. Vilmorin & Cie has also begun work to bring it into compliance with the European General Data Protection Regulation (GDPR). Vilmorin & Cie is well aware of the major risks associated with information systems and digital data, and is now restructuring its cybersecurity efforts. Vilmorin & Cie has reassessed the “cyber” risks and is planning the implementation of ISS measures, according to a roadmap, as part of the transformation of the Corporate Information Systems. Over fiscal year 2018-2019, Vilmorin & Cie will build a core of human resources dedicated to ISS, take audit and evaluation measures aimed at comparing the identified areas of progress, develop a new ISS governance and policy (based on the ISO 27005 standards, Cybersecurity Framework of the US National Institute of Standards and Technology, and the French ISS policy), and integrate systematic ISS risk assessment principles into its project management methods. At the same time, Vilmorin & Cie will lead several technical “IT hygiene” projects as recommended by the National Agency for Information Systems Security (ANSSI) in France, and will build a security culture through awareness raising. These measures will limit the possibility and consequences of a computer attack or accident as described above. 1.7.3.9. Environmental risks Identification of the risk While conducting its business, Vilmorin & Cie is subject to numerous environmental regulations. These regulations are complex and constantly evolving, increasingly stringent, and their application can prove costly or even limit the group’s ability to conduct or develop its activities. In particular they concern the quantitative and qualitative management of water, air, greenhouse gas emissions, soil pollution, the use of natural resources, the preservation of biodiversity, noise, dust and waste (1) . In cases where the group’s environmental responsibility should be called into question because of an accident or significant pollution, its activities, results and reputation could be negatively affected. Moreover, the purchasing preferences of distributors and customers, especially in more developed countries, are more and more influenced by environmental issues (particularly greenhouse gas emissions and tackling climate change, soil protection and the preservation of water resources), sometimes publicized by NGOs (Non-Governmental Organizations). If Vilmorin & Cie fails to anticipate these evolutions correctly, and take measures to control, optimize and communicate on the environmental consequences of its business, its performance and reputation could be negatively affected. Managing the risk Vilmorin & Cie’s environmental risk management policy focuses on: understanding and respecting the external obligations of Vilmorin & Cie (legal requirements, requests from the authorities), developing a culture of continuous improvement and operational excellence through employee training, incident reporting and analysis, and sharing of learning, providing quality solutions that meet the needs of distributors and customers, notably through the creation of seed varieties adapted to the diversity of environments, and the dissemination of responsible and reasoned agricultural practices to farmers and partners in all regions, optimizing agricultural, agronomic and industrial processes to guarantee food quality and safety for products, preventing and reducing, whenever possible, the negative impacts, direct and indirect, of the group’s activities on the environment and on the communities directly linked to its territories. At the same time, the Group’s Code of Conduct, and the fact that its reference shareholder Limagrain has been a signatory of the United Nations Global Compact since 2013, is reinforcement of Vilmorin & Cie’s commitment to make a significant contribution to respect for the environment, notably through its economic and social performance and responsibility, and the rational use of resources coupled with the optimization of its production processes at its facilities in all the countries where it operates. In order to ensure its compliance with the environmental regulations in force (as presented above in the paragraph “Identification of the risk”), Vilmorin & Cie has implemented organizations, procedures and tools: international environmental monitoring accessible from the Group’s Intranet and organized by theme and by country, and adapted management of the sites declared ICPE (Installation Classified for the Protection of the Environment) , in water stress zones or an adjacent area and/or protected for its biodiversity. (1) The regulations concerned include the following: - Directive 2012/27/UE of the European Parliament and of the Council of October 25, 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC. Text with EEA relevance: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX :32012L0027. - Article L.181-2 of the French Environmental Code created by Ordinance No. 2017-80 of January 26, 2017 - art. 1 https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000033926976&categorieLien=id. - Law No. 2016-1087 of August 8, 2016 for the regaining of biodiversity, nature and landscapes: https://www.legifrance.gouv.fr/eli/loi/2016/8/8/2016-1087/jo/texte. 1.7. Risk factors PRESENTATION of Vilmorin & Cie