Annual report and accounts 2023 - Flipbook - Page 76
A.G. BARR p.l.c. Annual Report and Accounts 2023
Corporate Governance Report continued
Section 172(1) statement
Stakeholder engagement
Effective engagement with our key stakeholders is
critical to the long-term success of the Company.
Understanding the perspectives of our stakeholders
and building good relationships enables their views
to be taken into account in Board and Committee
discussions and decision-making. The Board will
continue to focus on enhancing its engagement with
key stakeholders. Our key stakeholders that the Board
considers to be relevant to the business model, strategy
and Company success are set out in the table below,
together with how we engaged with them during
the year, and the impact of that engagement on the
Key Stakeholder
Form of Engagement
How This Stakeholder Group Influenced Board/Committee Discussions and Decisions
Shareholders
We have regular discussions with, and briefings for, investors.
The Company endeavours to ensure senior management is
available to interact with existing and potential shareholders
on as flexible a basis as possible. The Chief Executive and
Finance Director offer meetings to institutional shareholders
twice annually as a minimum in order to communicate
business updates and to develop an understanding of their
views on performance against strategy, Environmental,
Social and Governance (‘ESG’) related matters, and other
matters of interest. All directors have the opportunity to
attend these meetings.
The Chief Executive and Finance Director brief the Board on discussions with investors
and institutional shareholders. Independent feedback following key meetings is
coordinated and provided to the Board by the Company’s brokers and financial PR
agencies on a regular basis.
Board committee chairs seek engagement with shareholders
on significant matters related to their areas of responsibility.
The Chair ensures at each Board meeting that the Board as a
whole has a clear understanding of the views of shareholders.
Following the relaxation of Covid-related government
restrictions, shareholders were invited to attend the 2022 AGM
in person. All shareholders, including private investors, had the
opportunity to submit questions in advance of the AGM
and to participate in questions and answers with the Board
at the AGM on matters relating to the Company’s operation
and performance.
The Board assesses the effectiveness of engagement with
the investment community through measurement of the
number of analysts following the Company and the number
of meetings held with investors and analysts.
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Company’s strategy and the principal decisions taken
during the year. Further information on how we engage
with our key stakeholders is set out in the Strategic
Report on pages 1 to 69 and in the Directors’ Report
on pages 122 to 127.
Board members listen and respond to the views of investors and institutional
shareholders and feedback to the business as necessary. Following the temporary
suspension of dividend payments in 2020 and their subsequent resumption during
2021, with the payment of an interim dividend and a one-off special dividend in
October 2021, engagement with and feedback from major shareholders and the
investment community took place at investor roadshows held following the release
of the Company’s full year results for the year to January 2022, to ensure they were
supportive of the Board’s plans to recommend a final dividend in respect of that year to
shareholders. A final dividend for the year to January 2022 was subsequently approved
by shareholders at the Company’s Annual General Meeting held on 27 May 2022 (‘2022
AGM’) and paid in June 2022.
We engaged with key shareholders during the year in relation to various ESG related
matters. Feedback from our major shareholders and investor base on their key ESG
challenges influenced the ongoing agenda and operation of the Board’s ESG
Committee and reaffirmed the Board’s commitment to be net-zero across our own
operations by 2035 and across our full supply chain by 2050, if not sooner. These
decisions were taken by the Board with the aim of promoting the success of the
Company for its shareholders in the long term.
During the year, we engaged with key shareholders regarding the Company’s capital
allocation strategy. In line with this strategy, the Board took the key capital asset
investment decision during the year to approve the initial phases of a multi-year asset
replacement programme to replace PET and can line assets at the Cumbernauld
factory. The new factory layout will optimise employee safety, efficiency and material
flows. The project will also deliver ESG benefits in terms of providing PET lightweighting
opportunities via the move to market-leading 26/22 neck and cap dimensions, and the
introduction of tethered cap capability. The project was evaluated on a suite of financial
metrics designed to drive shareholder return over the long term.
