Airbus 2015 Annual Report Download - page 53

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 21 l
Risk Factors
Registration Document 2015
4 Industrial and Environmental Risks
4. Industrial and Environmental Risks
Given the scope of its activities and the industries in which it
operates, the Company is subject to stringent environmental,
health and safety laws and regulations in numerous jurisdictions
around the world. The Company therefore incurs, and expects
to continue to incur, significant capital expenditure and other
operating costs to comply with increasingly complex laws and
regulations covering the protection of the natural environment
as well as occupational health and safety. This expenditure
includes the identification and the prevention, elimination or
control of physical and psychological risks to people arising
from work, including chemical, mechanical and physical agents.
Environmental protection includes costs to prevent, control,
eliminate or reduce emissions to the environment, waste
management, the content of the Company’s products, and
reporting and warning obligations. Moreover, new laws and
regulations, the imposition of tougher licence requirements,
increasingly strict enforcement or new interpretations of existing
laws and regulations may cause the Company to incur increased
capital expenditure and operating costs in the future in relation
to the above, which could have a negative effect on its results
of operation and financial condition.
If the Company fails to comply with health, safety and
environmental laws and regulations, even if caused by factors
beyond its control, that failure may result in the levying of civil or
criminal penalties and fines against it. Regulatory authorities may
require the Company to conduct investigations and undertake
remedial activities, curtail operations or close installations or
facilities temporarily to prevent imminent risks. In the event of
an industrial accident or other serious incident, employees,
customers and other third parties may file claims for ill-health,
personal injury, or damage to property or the environment
(including natural resources). Further, liabilityundersome
environmental laws relating to contaminated sites can be
imposed retrospectively, on a joint and several basis, and
without any finding of non-compliance or fault. These potential
liabilities may not always be covered by insurance, or may be
only partially covered. The obligation to compensate for such
damages could have a negative effect on the Company’s results
of operation and financial condition.
In addition, the various products manufactured and sold by
the Company must comply with relevant health, safety and
environmental laws, for example those designed to protect
customers and downstream workers, and those covering
substancesand preparations, in the jurisdictions in which they
operate. Although the Company seeks to ensure that its products
meet the highest quality standards, increasingly stringent and
complex laws and regulations, new scientific discoveries,
delivery of defective products or the obligation to notify or provide
regulatory authorities or others with required information (such as
under the EU Regulation known as “REACH”, which addresses
the production and use of chemical substances) may force
the Company to adapt, redesign, redevelop, recertify and/ or
eliminate its products from the market. Seizures of defective
products may be pronounced, and the Company may incur
administrative, civil or criminal liability. In the event of an accident
or other serious incident involving a product, the Company may
be required to conduct investigations and undertake remedial
activities. Employees, customers and other third parties may
also file claims for personal injury, property damage or damage
to the environment (including natural resources). Any problems
in this respect may also have a significant adverse effect on
the reputation of the Company and its products and services.
In addition, the Company is sometimes subject to government
inquiries and investigations of its business and competitive
environment due, among other things, to the heavily regulated
nature of its industry. In addition to the risk of an unfavourable
ruling against the Company, any such inquiry or investigation
could negatively affect the Company’s reputation and its ability
to attract and retain customers and investors, which could
have a negative effect on its business, results of operation and
financial condition. See “—Corporate Governance — 4.1.4
Ethics and Compliance Organisation”.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
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