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7
RISKS AND CONTROL
1. Risk factors
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SAINT-GOBAIN
- REGISTRATION DOCUMENT 2016
challenging this complaint. The hearing was held on May 11,
Saint-Gobain Isover and Compagnie de Saint-Gobain are
postponed to a date not yet known.
2016. The Competition Authority’s final ruling has been
writ on Saint-Gobain Isover, the Centre Scientifique et
In the civil law area, in March 2013 Actis served a civil liability
Technique du Bâtiment, and the FILMM before the Paris Civil
consequences of facts forming the subject of the
Court (Tribunal de Grande Instance) for the adverse
December 16, 2014, the pre-trial judge declared a stay of
investigation by the Competition Authority. In an order dated
Competition Authority.
proceedings while waiting for the decision from the
States drywall industry
United States Department of Justice in the United
Investigation by the Anti-trust Division of the
In July 2015, the Anti-trust division of the United States
agreement, in the United States drywall industry. This
potential anti-competitive practices, specifically a price
of class actions in the civil courts against eight drywall
investigation followed complaints filed in late 2012 in the form
Department of Justice opened a criminal investigation into
of their customers.
manufacturers in the sector, including CertainTeed, by some
identified any element that might create liability for
civil proceedings, CertainTeed and its attorneys have not
On the basis of testimony and documents submitted in the
competent court. An appeal against this decision is still
This application was accepted on February 18, 2016 by the
possible.
judgment in May 2015 in order to end the civil proceedings.
CertainTeed, and as a result filed a motion for summary
c) Environmental-related litigation
PFOA matters in the United States
Levels of PFOA (perfluorooctanoic acid) in excess of U.S.
advisories have been found in municipal water systems and
Environmental Protection Agency (EPA) or state health
(polytetrafluorethylene) have never been manufactured by
Bennington (Vermont) in the United States. PFOA and PTFE
purchases from third party suppliers and which in the past
these plants. SG PPL is a processor of PTFE which it
private wells near current Saint-Gobain Performance Plastics
(New Hampshire), and two former facilities in North
(SG PPL) facilities in Hoosick Falls (New York) and Merrimack
contained traces of PFOA.
SG PPL has voluntarily provided bottled water in all three
communities, installed point-of-entry treatment systems to
on-going and the scope of responsibility for SG PPL arising
communities in the Merrimack area. The investigations are
these sites has not yet been established. Responsibility, if any,
from environmental remediation and clean-up obligations at
Bennington areas, and installed carbon filtration systems on
residents and businesses in the Hoosick Falls and North
voluntarily committed to fund water line extensions in certain
the municipal water supply in Hoosick Falls. In addition, it has
particular the Hoosick Falls’ site.
is expected to be shared with other parties as regards in
additional litigation will be brought against SG PPL.
New York, New Hampshire and Vermont, some of which are
economic damages claims have been filed in civil courts in
the timing or outcome of any such litigation, or whether any
in the form of proposed class actions. It is difficult to predict
PFOA-related lawsuits alleging both health-related and
On December 31, 2016, the Company established a provision
and various costs.
in the amount of USD 23 million in connection with defense
d) Other proceedings and disputes
could have or which has had, in the last 12 months, a
Company and/or the Group might be threatened) which
Company and/or Group. Note 7 to the Consolidated Financial
significant impact on the financial or profit position of the
described above, to the best of the Company’s knowledge no
authorities. Apart from the proceedings and litigation
(including pending proceedings or proceedings where the
other government, court or arbitration proceedings exist
other claims made by their employees or by the tax
Some of the Group’s companies may also be the subject of
Statements (see chapter 9, section 1) is related to the
provision for claims and litigations.
INSURANCE
1.5
The Group transfers its risks to the insurance market when
this is the most efficient solution. Default by one or more of
the Group’s insurers could therefore lead to financial losses.
Risks and Insurance Department. It defines insurance criteria
market. It is determined, coordinated and overseen by the
interruption, as well as general and product liability.
for the most significant risks, such as property and business
purchase insurance coverage to protect its assets and
The Group’s policy is to implement preventive programs and
which takes into account current conditions in the insurance
revenue. This policy is embedded within a Group doctrine,
For other types of coverage, such as automobile fleet
individual operating units on policy content, broker selection
insurance, the Risks and Insurance Department advises the
“high-frequency” risks, for which claims are monitored
and which market to consult. These are called
were renewed as 2016 policies.
internally and appropriate action taken. The 2015 policies