RWS AR 23 Final Single pages - Flipbook - Page 54
Task Force on Climate-related Financial Disclosures (continued)
b. Impact of climate-related risks and
opportunities on business, strategy, and
昀椀nancial planning
RWS conducts three di昀昀erent scenario analyses using
Representative Concentration Pathways ("RCPs") to assess
the identi昀椀ed climate-related risks and opportunities
in the short-, medium-, and long-term. They are then
prioritised using the risk matrix method as described
above. For more detail on the climate-related scenarios
used to inform our strategy and 昀椀nancial planning, see
‘Strategy’ section ‘C’ below.
The impact of climate-related issues through FY23 is
assessed in a separate but similar matrix structure, and
a range for 昀椀nancial impacts is assigned by relevant
department heads, e.g. for short-term disruptions to
software testing and production in one region requiring
services to be rerouted, a temporary increase of 25 to 50%
of the cost of production in the a昀昀ected area has been
estimated. Further detail on the impact of climate-related
issues can be found in the Environmental section on pages
27 to 31.
RWS business, strategy, and 昀椀nancial planning are a昀昀ected
by climate-related issues in the following seven ways:
PRODUCTS AND SERVICES
For the last few years there has been a noticeable increase
in the demand for sustainable products and services.
There has been a shift in market preferences, with clients
preferring to engage with sustainable businesses. RWS
continues to investigate ways to optimise its products and
services, focusing on reducing carbon emissions while
also ensuring client satisfaction and improving e昀케ciencies
wherever possible.
54
RWS has also begun to identify projects undertaken for
clients which are directly linked to climate change, e.g.
localising patents for blades for windmills or insulation
material; localising information related to electric vehicles
and solar panels; localising ESG-related information
resulting from regulatory disclosures such as the
Corporate Sustainability Reporting Directive ("CSRD") and
the Sustainable Finance Disclosure Regulation ("SFDR");
and thought leadership content produced by clients to
market and sell 昀椀nancial products. It is estimated that
over £1.5m in sales relating to such projects have been
won in FY23.
SUPPLY CHAIN/VALUE CHAIN
In FY23, the majority of the RWS global carbon footprint
is related to Scope 3 categories. A signi昀椀cant portion was
attributable to its value chain. To reduce upstream carbon
emissions, RWS is rolling out a programme of engagement
with its suppliers on their climate-change management
strategies through required supplier questionnaires and/
or engagement through a risk screening, performance
mapping rating software platform for supply chain
sustainability issues. Suppliers who are seen as managing
their climate-change strategy actively are preferred, and
suppliers who are not will be encouraged to improve. The
Group’s expectations are listed in its Supplier Code of
Conduct and Corporate Sustainable Policy Statement.
To promote the ethos of sustainable management of
climate-change, clients and investors are informed of
RWS climate-related risk management strategies through
published reports, including Annual Reports and the ESG
reports, CDP disclosures, annual GRI reports, and TCFD
statements.
In the 昀椀rst half of FY23, RWS noted an increase in Language
and Content Technology revenue growth. There was
progress in the AI Data Services and eLearning solutions
growth initiatives, both of which support a transition to
computer-based activity and away from in-person, travelintensive operations. We also continue to provide remote
interpreting, transcription and subtitling services that
reduce the need for in-person events and consequently
which bene昀椀t travel emissions; these spiked during the
pandemic but have remained strong as new modes of
working have become established.
ADAPTATION AND MITIGATION
ACTIVITIES
Strong demand has also continued from our corporate
and 昀椀nancial services clients in relation to the reporting of
their own ESG initiatives and progress. We are working with
numerous multinationals, asset managers and investment
banks in translating their stakeholder communications
for global audiences, particularly as they relate to
decarbonising the global economy through investment in
renewable energy and the transition away from fossil fuels.
Additional sustainable and climate-change mitigation
activities are encouraged throughout the RWS global
o昀케ces. In FY23, RWS held an ESG competition with
categories including ‘Green O昀케ce of the Year’ and
‘Biodiversity Project of the Year’.
RWS Holdings plc — Annual Report 2023
STRATEGIC REPORT
RWS has considered its impact on the environment and
on overall climate-change carefully. The Group's risk
management programme is headed by the General
Counsel and Company Secretary, and is supported by
the Executive Team and relevant top management. To
demonstrate its commitment to being a sustainable
business, in 2022 RWS o昀케cially committed to set sciencebased targets to be carbon net zero through the SBTi.
