Responsible Business Report 2024 - Flipbook - Page 16
RESPONSIBLE BUSINESS REPORT CONTINUED
We respect the environment continued
A structured process for identifying and
quantifying emerging risks and opportunities
across the Group, similar to our risk
management approach, provides a framework
to support broader thinking on new and
emerging areas, including those related to
climate change. With input from all of our
Executive teams, this plays an important role
in the Board’s strategic planning process. The
Board completed a robust assessment of the
Group’s emerging risks, including those related
to climate change, during the year.
• The Remuneration Committee is responsible
for determining our remuneration policy,
including how climate-related factors are
taken into consideration and reflected in
reward. Executive Directors’ long-term
incentive plan awards, by way of illustration,
include an environmental sustainability
performance measure. Further information
is available in our Directors’ Remuneration
Report.
• The Nomination Committee is responsible for
Board appointments and succession planning.
Corporate climate-related targets, set by
the Executive teams and ratified by the ESG
Committee, are monitored by the Board on
a regular basis.
Business Divisions
The Board, in turn, delegates some elements
of its responsibility to its various sub-committees,
as set out below:
• The Audit and Risk Committee has the
delegated responsibility to monitor our
internal financial controls as well as our
internal control and risk management
systems. Its risk management oversight
includes the review of our Group risk register
and principal risks, including those related to
climate change, at least twice per year.
• The Environmental, Social and Governance
Committee assists the Board in fulfilling its
oversight responsibilities with respect to the
Company’s management of all relevant ESG
matters. The ESG Committee has delegated
responsibility for approving the Company’s
environmental sustainability strategy and
reporting back to the Board. It meets twice
a year as a minimum.
The ESG Committee owns, and is responsible
for monitoring and updating, our material
risks and opportunities related to climate
change. A full review was undertaken during
the year against three climate scenarios.
See the Strategy section for the output.
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Our Executive teams across our business divisions
are responsible for managing the climate-related
risks and opportunities faced by our Group on
both a long-term strategic basis and day to day.
Our strategic planning process considers both
the risks and opportunities arising from climate
change and a specific process related to
emerging risks and opportunities. The Executive
teams are supported across a number of areas
as set out below:
• Our Group Risk Committee ensures that
a strong framework is in place to manage
operational risks effectively, including those
associated with climate change. The
Committee oversees our principal risks and
uncertainties, and reviews the effectiveness
of risk management and compliance systems
in managing those risks. The aim of the
Committee is to ensure that employees
understand the importance of good risk
management, that a supportive risk
management culture is embedded across
the Group and that risk management
processes are clearly deployed.
• The No Time To Waste Steering Group,
chaired by the CEO, governs our Group-wide
environmental sustainability programme.
The No Time To Waste Steering Group has
overall responsibility for setting the Group’s
environmental sustainability strategy, for
A.G. BARR p.l.c. Responsible Business Report 2024
achieving the Company’s climate change
objectives, and for monitoring and managing
risks and opportunities related to climate
change. The No Time To Waste programme
encompasses five key workstreams associated
with reducing the effects of climate change
with a risk register in place across the
programme. The risks identified, along with
opportunities arising from the climate change
agenda, are reviewed on a monthly basis.
• Our Capital Allocation Committee is
responsible for ensuring the best use of our
capital resources in line with our strategy and
plans. This includes the review and approval
of capital expenditure programmes related
to environmental sustainability, taking into
account the risks and opportunities in
investment decisions.
• Our Emerging Risks and Opportunities
Group is responsible for identifying and
managing emerging risks and opportunities
at an A.G BARR Group level. This group
conducts an annual review prior to making
recommendations to the Board, the output
from which forms part of our Board’s annual
Strategy Review.
Strategy
Our Board has ultimate responsibility for
agreeing our business strategy, taking into
account, and reflecting where appropriate, the
risks and opportunities associated with climate
change. As detailed above, the Board’s strategic
thinking and decision making is supported and
informed by our Executive teams and by a
number of Board sub-committees.
As detailed in the Metrics and Targets section that
follows, our key climate related objective, borne
out of our strategy, relates to our achievement
of our science-based targets and our ultimate
net-zero commitment.
Our strategic timeframes are as follows:
• Short-term: 0 to 1 years
• Medium-term: 1 to 5 years
• Long-term: 5+ years
These timeframes have been selected to align
with our annual budgeting process, our internal
integrated planning process (3 to 5 years) and
our longer term thinking on emerging risks
and opportunities.
The opportunities, as well as physical and
transition risks considered material to our Group,
are detailed below, along with our strategic
responses. A full review was undertaken during
the year against three climate scenarios with
the resilience of our strategy specifically tested
against scenarios where global temperatures
rise by more than 2°C (RCP 4.5).
Our methodology for defining material financial
and strategic impacts on our business is aligned
with our risk management approach, detailed
in the Risk Management section that follows.
Gross risk impacts that fall in the categories
of “moderate”, “major” or “critical” would be
deemed to be material.
