Annual report and accounts 2023 - Flipbook - Page 49
Strategic Report
Corporate Governance
Accounts
Physical risks
associated with increased severity of extreme weather events such as cyclones and floods (acute), and associated with changes in precipitation patterns and
extreme variability in weather patterns, rising mean temperatures and rising sea levels (chronic).
Risk Type & Description
Timeframe
Chronic risk
The risk that climate change impacts the future availability, quality and cost of the natural ingredients required to
manufacture our products, such as sugar, fruit juices and water.
Long-term
Potential financial
impact
Strategic response:
We have dedicated Sustainable Sourcing and Water workstreams within our No Time To Waste environmental sustainability programme with ambitious strategies in these
areas. Further information is available on pages 42 and 45, however by way of illustration of action taken related to fruit availability, we have developed a network of
suppliers who can supply materials from different origins and have set up a programme to approve fruit juices from different geographic sources, such as passion fruit
from Vietnam, in addition to our existing supply from Ecuador, thus reducing risk of supply and ultimately protecting sales.
Transition risks
associated with changes to policy and legislation, technology, the market and reputation.
Risk Type & Description
Timeframe
Policy and legal risk
The risk of higher costs as a consequence of planned/potential regulation such as a carbon tax, or packaging related
regulations/taxes such as UK Extended Producer Responsibility (EPR) and the EU Single-Use Plastics Directive.
Long-term
Potential financial
impact
Strategic response:
We have approved science-based targets that will see us becoming net-zero across our own operations by 2035 and across our full supply chain by 2050, if not sooner.
We have already begun our decarbonisation journey in areas such as transitioning to 100% renewable electricity and 100% electric forklift trucks.
We are also focused on reducing, recycling and reusing across our packaging. 100% of our Barr Soft Drinks packaging is already recyclable and we are increasing our use
of recycled material. We now have 100% recycled plastic film across all of our Barr Soft Drinks consumer multipacks and introduced our first 100% recycled bottles in April
2022, as part of a longer-term objective of having 100% recycled content across our full portfolio of plastic bottles by 2025. Discussions are also underway with our glass
and aluminium can suppliers on how we can work together to increase recycled content in the products they provide. We are reducing packaging where possible, such
as in a recent reduction of stretch wrap weight.
In addition, we are positive supporters of the implementation of DRS in the UK, which will help to mitigate potential EPR costs for the business – the latest government
proposals in this area have confirmed that containers subject to DRS will be out of scope of EPR.
Potential financial impact Movement:
Moderate
Major
Critical
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