Annual report and accounts 2023 - Flipbook - Page 50
A.G. BARR p.l.c. Annual Report and Accounts 2023
Responsibility report continued
We respect the environment continued
Transition risks
associated with changes to policy and legislation, technology, the market and reputation.
Risk Type & Description
Timeframe
Market risk
The risk that consumer behaviours change in relation to single-use packaging or as a result of regulatory changes
designed to reduce the impact of climate change, such as DRS, resulting in a reduction in demand for our products
or consumers switching to brands perceived as more sustainable.
Medium-term
Potential financial
impact
Strategic response:
As already detailed, we are positive supporters of the implementation of DRS, due to be implemented in Scotland in August 2023, and expected to launch in England
no earlier than 2025. By incentivising consumers to return their drinks containers, DRS will set drinks packaging apart, as drinks containers will become part of a truly
circular economy.
The delivery of our net-zero roadmaps, and specifically our drive to reduce, recycle and reuse across our packaging, are key to improving our environmental credentials and
further building trust with consumers.
Opportunities
associated with resource efficiency, energy sources, products and services, markets and resilience.
Opportunity Description & Type
Timeframe
Energy source opportunity
Use of lower-emission energy sources, such as photovoltaic panels and heat pumps for the generation of electricity,
heat and steam, leading to a reduction in greenhouse gas emissions.
Medium-term
Potential financial
impact
Strategic response:
These initiatives present a significant opportunity to reduce our Scope 1 (reduction of gas consumption from heat pumps) and Scope 2 (on-site electricity generation
from photovoltaic panels) emissions, thereby mitigating the on-cost associated with the potential introduction of carbon pricing while also potentially delivering utility
cost reductions.
Market opportunity
The opportunity that consumer behaviours change, with consumption patterns shifting towards products perceived
to be more environmentally friendly, resulting in sales opportunities. More environmentally orientated consumer
behaviours could include supporting companies who have clear plans to achieve net-zero or who are actively engaged
in DRS. It could also extend to increased ‘staycations’ or the favouring of domestic produced products.
Long-term
Strategic response:
Communication with our customers and consumers is key to ensuring our environmental sustainability plans and progress are well understood. We provide regular updates
to our customers via our sales force and we are increasingly communicating directly with all consumers, both on-pack and through traditional and social media channels.
Potential financial impact Movement:
48
Moderate
Major
Critical
