Annual report and accounts 2023 - Flipbook - Page 52
A.G. BARR p.l.c. Annual Report and Accounts 2023
Responsibility report continued
We respect the environment continued
Assessing risks
Our corporate risk register guidelines provide the
framework for defining financial and strategic impacts
on our business. This framework applies equally to
climate-related risks and categorises five levels of risk
impact: “insignificant”, “minor”, “moderate”, “major”
and “critical”.
The corporate risk register guidelines also include
definitions for the likelihood of the risks, including:
“rare”, “unlikely”, “possible”, “likely” and “almost certain”.
Different parameters are taken into account when
assessing the potential impact of a risk, including
financial aspects, environmental aspects, and other
aspects such as health and safety and corporate
reputation. Each risk is given a risk rating before and
after mitigating actions.
Gross risk impacts that fall in the categories of “moderate”,
“major” or “critical” would be deemed to be material.
From a financial perspective, a “moderate” impact is
defined as impacting financial turnover or profit by
between 3% and 10%, a “major” impact is defined as
impacting financial turnover or profit by more than 10%
and less than 25%. A financial impact of 25% of more
on turnover or profit would be deemed as “critical”.
Managing risks
The resolution of moderate impacts requires the input
from the Executive team. The resolution of major and
critical impacts requires the input from the Board and/
or its sub-committees.
The Group Risk Committee reports back to the Audit
and Risk Committee, attended by Directors on the
Board. Similarly, the ESG Committee reports to the
Board on the material climate-related risks identified.
Mitigating actions are developed for each risk and their
effectiveness is reviewed on an ongoing basis. New
actions are triggered in order to further reduce the
net score of each risk, especially for those risks that
sit outside of the Board risk appetite. Functional risk
registers are reviewed in depth by the Risk Committee
according to an annual schedule to ensure that risks
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are well represented and that actions are taken to
reduce the level of risk for the business.
Metrics & Targets
The mitigating actions for our key climate-related risks,
identified through our ESG Committee and our
multi-functional and business-wide risk management
process, are being managed primarily through our
No Time To Waste environmental sustainability
programme. This programme has identified a number
of long-term climate-related goals, with the key
deliverables being the achievement of our sciencebased targets and the ultimate delivery of our net-zero
by 2050 commitment. Other climate-related targets
and KPIs, including those related to packaging, waste
and water are detailed within our long-term goals and
non-financial key performance indicators on pages 31
and 32.
On a cross-industry basis we are working
collaboratively with other producers on the effective
introduction of a deposit return scheme across the UK.
Our SBTi approved science-based carbon reduction
targets are in line with the latest climate science
recommendations necessary to meet the goals of the
Paris Agreement and limit the temperature increase
to 1.5°C above pre-industrial levels. These targets are
detailed below and set out our commitment to be
net-zero across our own operations by 2035 and
across our wider supply chain by 2050, if not sooner.
Our science-based
targets
Overall Net-Zero Target
We commit to reach net-zero greenhouse
gas (GHG) emissions across the value
chain by FY2050 from a FY2020 base year.
Near-term Targets
We commit to reduce absolute scope 1
and 2 GHG emissions 60% by FY2030
from a FY2020 base year.
We also commit to reduce absolute scope
3 GHG emissions from purchased goods
and services, upstream transport and
distribution and downstream transport
and distribution 25% within the same
timeframe.
Long-term Targets
We commit to reduce absolute scope 1
and 2 GHG emissions 90% by FY2035
from a 2020 base year.
We also commit to reduce scope 3
GHG emissions from purchased goods
and services, upstream transport and
distribution and downstream transport
and distribution 90% by FY2050 from
a FY2020 base year.
Notes:
FY2020 refers to AG Barr financial year 2020/21
ended in January 2021. The same convention
applies to FY2030, FY2035 and FY2050
