We believe strong governance is central to delivering across all areas of our sustainability framework. Our governance structure ensures that the Board and SLT have a clear role in defining and managing the Company’s sustainability ambitions, plans and performance.
“Driving ESG and the sustainability agenda via our Committee and colleague engagement is a real positive step benefiting all stakeholders across our business and its operations.”David Cook, ESG Committee Chairman
The Sustainability Committee
In 2021, we established a Sustainability Committee comprising all members of our Board.
The Committee’s primary role is to review the overarching sustainability vision for the Company and ensure that the priorities are embedded in the Company’s overall strategy.
The Committee works closely with the SLT with meetings also attended by the Corporate Sustainability Lead and Head of Investor Relations and Corporate Communications. Others are invited to attend as appropriate to support discussions.
The duties of the Committee comprise:
- Stakeholder engagement
To ensure that the views of stakeholder groups are solicited on sustainability matters and used to inform the Company’s long-term strategic decisions.
To identify the relevant sustainability priorities that most significantly impact the Company and its stakeholders, its reputation and public interest role.
To assist in defining and executing the Company’s strategy and, in so doing, to agree the annual plan and targets relating to sustainability.
To review the Company’s performance against its annual plan and sustainability targets, initiatives and commitments.
To guide the Company’s sustainability communication strategy.
To ensure that sustainability priorities are reflected in the Company’s culture through its purpose, vision, values and behaviours as well as its supplier code of conduct.
Management of sustainability-related risks
In 2021, we extended our risk management processes to incorporate sustainability-related risks across the ‘areas of focus’ identified in our Sustainability Framework, to the extent that these weren’t already being addressed within the existing business risk management framework.
We also took the decision to recognise climate change as an emerging risk within our Principal Risks and Uncertainties, pending the completion of the scenario analysis required to support full compliance with the disclosure recommendations set out by the Task Force for Climate-related Financial Disclosures (TCFD).
We expect to complete this scenario analysis, assessing both the physical and transitional risks to our business under a number of different warming pathways, during 2022. This should provide the necessary insight into whether climate change is likely to constitute a material risk to our business and allow specific risks to be incorporated into our Group risk register and managed as part of our wider risk management processes, as required.
We have established a Sustainability Forum, comprising a group of employees who work with the Corporate Sustainability Lead to identify and deliver small-scale sustainable change initiatives across the business. This has primarily been focused on our UK operations, with increased regional participation planned for the future.