Universal Registration Document 2024

SUSTAINABILITY REPORT 4 ENVIRONMENTAL MATTERS

Risks

Opportunities

Political and legal issues

The increase in administrative constraints and requirements related to the environmental transition in the process of issuing permits and authorisations leads to a structural increase in the costs and delays of new development projects, which could lead to a deterioration in longevity and competitiveness of Groupe ADP’s portfolio. Changes in the regulation of air traffic through new direct or indirect taxes (for example, the new tax on long-distance transport infrastructure operators, validated on 28 December 2023 by the French Constitutional Council and introduced from 1 January 2024) could also affect the profitability model of airlines and/or the cost of air transport for passengers, which could lead to a decrease in traffic on the Group’s airports. Groupe ADP’s specific activities could also be targeted by the adoption of restrictions on cargo traffic and/or new or increased taxes, which would have an impact on the freight revenues of the Group’s airports, in particular for Paris-Charles de Gaulle airport. In addition, an increase in taxes on the use of business aircraft could have an impact on Paris-Le Bourget airport traffic. Groupe ADP may have difficulty obtaining adequate financing to support the transition and development, due to investors’ decision to reduce their environmental footprint or to withdraw from the aerospace industry. Obtaining appropriate insurance coverage may also be compromised due to the increased frequency and severity of climate-related events and claims costs. In addition to the financial consequences of market risks for the Group, changes in travel behaviour affect passenger traffic. The impact of the deployment of low-carbon technologies could result in loss of value, delays and/or cost overruns in the execution of complex investments/technology developments, which could impact the Group’s results. In addition, in the event that investment and/or delivery are too slow, Groupe ADP could be exposed to an imbalance between electricity production and/ or distribution capacity and needs (charging of electric vehicles, etc.), which would have an impact on the Group’s ability to meet its sustainable development commitments. A potential lack of correlation between societal changes and the attractiveness/acceptability of the airport sector could lead to an increase in the frequency of trespassing or other acts of defiance by activists, disrupting operations and/or damaging the assets of customers or the Group. In France in particular, the Group could have difficulties managing the change in the passenger experience due to the Group’s emission reduction policies (e.g., changes in temperatures in terminals), which could harm its reputation. This would result, for example, in a potential loss of quality of service perceived by passengers (perceived thermal comfort, continuity of service at the airport, etc.) due to energy efficiency requirements or the deterioration of the passenger experience due to de-optimised operations. In addition, risks related to human resources could also materialise in Groupe ADP’s difficulty in attracting and/or retaining the required skills due to a deterioration in the perception of the aeronautics industry.

Capital markets issues

New services/revenue streams (including retail) could be developed due to increased rail traffic at Paris-Charles de Gaulle stations (particularly high-speed lines). Changes in the airport’s business model could also lead to new uses of the Group’s airports and assets. Opportunities arise to develop services and revenues as a producer, distributor or intermediary of fuel or energy (sustainable aviation fuels, low-carbon electricity, low carbon hydrogen). In addition, a positive differentiation of Groupe ADP for its actions in favour of the environmental transition and the respect of its commitments could generate confidence and facilitate the obtaining of support and financing. Groupe ADP could focus its efforts on increasing the share of self-generated renewable energy on the Group’s platforms, thus reducing dependence on national electricity grids and potentially reducing energy costs.

Technological challenges

Reputation issues

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UNIVERSAL REGISTRATION DOCUMENT 2024 w AÉROPORTS DE PARIS