ESG 23 Final Single pages - Flipbook - Page 83
a. The processes for identifying and
assessing climate-related risks
c. How processes for identifying,
assessing, and managing climate-related
risks are integrated into overall risk
management
The Executive Team assists the General Counsel and
Company Secretary with the identi昀椀cation of risks through
horizon-scanning activities. Potential risks related to
existing and future regulation, reputation and markets,
potential 昀椀nancial impacts, and physical climate change
are all considered carefully.
As mentioned above in the ‘Governance’ and ‘Strategy’
sections, the General Counsel and Company Secretary has
overall responsibility for co-ordinating the Group’s risk
management programme. She is assisted by the Executive
Team, the Head of Sustainability and ESG, and additional
top management.
RISK MANAGEMENT
Once identi昀椀ed, risks are prioritised using a risk matrix
approach which assesses the potential impact, both
昀椀nancial and reputational, on the Group and the likelihood
of occurrence. Risks are considered substantive if they
have a 昀椀nancial impact of £10,000,000 or more, and a
probability of very likely or higher. Risks are assessed over
the short-, medium-, and long-term on both a gross basis
and net basis, i.e. without considering existing mitigations
and then with existing mitigations, respectively. As
detailed under ‘Governance’, climate strategy scenarios
are also used to quantify the impact that risks may have
on the business.
RWS promotes transparency on its climate-change
management strategy through engagement with
stakeholders throughout its value chain. Details on how
RWS has responded to risks are provided through news
releases, stock exchange announcements, and published
reports such as its GRI Report and its Environmental,
Social and Governance Report.
b. The processes for managing climaterelated risks
A formal risk assessment review is undertaken annually
to prioritise principal risks using the above de昀椀ned risk
matrix (impact equals level of hazard vs likely probability).
Potential appropriate actions are also identi昀椀ed. These
risks and actions are presented to the CEO and Board,
in昀氀uencing business strategy.
The Group routinely monitors for emerging regulatory
developments, complies with reporting requirements,
annually benchmarks its performance against climate and
sustainability targets, and develops speci昀椀c action plans
for carbon reduction.
A good example of this is the Group’s commitment to
Net Zero by 2050 and submission of targets to the SBTi
in 2022. This signi昀椀cant action addresses several risks at
once; e.g. the reputational and market risks associated
with a noticeable shift in consumer preferences towards
companies with robust climate-change mitigation
strategies.
FRAMEWORKS RWS Holdings plc — ESG Report 2023
83
