Annual report and accounts 2023 - Flipbook - Page 66
A.G. BARR p.l.c. Annual Report and Accounts 2023
Risk management continued
The net risk movement from the prior year for each principal risk is set out in the table below.
Principal risks and uncertainties
Net risks relating to the Group
Movement:
No change
Risk
Impact
Controls and mitigating actions
Government
intervention on
climate change and
environmental
issues, e.g. packaging
waste
Government intervention
on climate change and
environmental issues, e.g. the
introduction of a Deposit
Return Scheme in England or
the introduction of a carbon
tax, could have an adverse
impact on consumer
consumption patterns, sales
and operating profits.
The increased pace of change and level of environmental
campaigning in relation to climate change and areas such as
packaging reported last year has continued during the year.
We have clearly defined responsibility commitments with
regard to waste, water, energy, sustainable sourcing and
packaging. We continue to work constructively with the British
Soft Drinks Association, the UK and Scottish governments,
and other key stakeholders in relation to potential
interventions, such as the planned introduction of a Deposit
Return Scheme (“DRS”) in Scotland and the expected
introduction of a DRS in England.
Increased
Decreased
Net risk
impact
Net risk
likelihood
Net risk
rating
Moderate
High
High
Various environmental sustainability related workstreams
continue to be progressed through our “No Time To Waste”
environmental sustainability programme – further details are
set out below.
64
Loss of product
integrity
A loss of product integrity
in the manufacturing supply
chain could lead to a product
withdrawal or recall.
Appropriate risk assessments are carried out on a regular
basis and robust quality controls and processes are in place
to maintain the high quality of our products. Product recall
procedures are tested regularly.
Moderate
Low
Moderate
Environmental
Social Governance
(“ESG”) risks
An inability to meet the
Group’s ESG commitments
could impact revenue
if consumers choose to
purchase and consume
alternative brands,
Governments impose
additional taxes or the
associated reputational
damage makes it difficult
to recruit talent.
ESG risks were classified as a new principal risk for the
Group in the prior year due to the increased focus from all
stakeholders (including Governments, customers, consumers,
competitors, employees and investors) on ESG matters,
in particular environmental sustainability.
Moderate
Low
Moderate
Five environmental sustainability related workstreams
continue to be progressed through our Group-wide “No Time
To Waste” (“NTTW”) environmental sustainability programme:
plastic and packaging, net-zero, sustainable sourcing, water
and waste. The NTTW programme reports to the NTTW
Steering Group, which is responsible for setting the Group’s
environmental strategy, for achieving the Group’s
environmental targets, and for monitoring and managing
the associated risks. The NTTW Steering Group is overseen
by the ESG Board Committee. Further detail is provided in the
Responsibility Report on pages 30 to 55.
New
Movement
