Annual report and accounts 2023 - Flipbook - Page 79
Strategic Report
Corporate Governance
Accounts
Key Stakeholder
Form of Engagement
How This Stakeholder Group Influenced Board/Committee Discussions and Decisions
Consumers
We are committed to engaging with our consumers through
a variety of channels regarding any questions, concerns or
feedback which they may have. Our consumer care team aims
to respond efficiently and effectively to all matters raised by
consumers, whether by email, telephone, social media or post.
The Commercial Director provides a marketing update to every Board meeting.
A formal review of brands and innovation is presented to and discussed by the
Board annually.
Consumer research is conducted prior to the launch of
key products and in relation to key marketing campaigns,
as appropriate.
The Board gains insight into consumer needs, behaviours and
motivations through regular detailed brand reviews at Board
meetings throughout the year. The Board also reviews market
and consumer insight data at every Board meeting. The Board
receives presentations from senior members of management
on consumer trends, brands and key marketing initiatives.
Suppliers
We ensure that we source raw materials in a responsible manner
and require our suppliers to commit to our Supplier Code of
Conduct and to comply with the provisions of our Modern
Slavery Statement and Anti-bribery and Corruption Policy.
We seek to mitigate risks in relation to the continuity of supply
of key raw materials and ingredients by developing strong
commercial relationships with our key suppliers.
We have regular engagement with our suppliers through virtual
and face-to-face meetings, conferences and events.
During the early part of the year we continued to engage with
key raw material suppliers in relation to the impact of Covid-19
on their businesses in light of ongoing supply chain challenges.
We also continued to engage with third party contractors
regarding visits to Company sites, to ensure that only essential
activities were undertaken and that appropriate control
measures were in place to minimise Covid-related risks for
our respective employees and the wider public.
A structured research programme of consumer usage and attitudes is carried out on a
regular basis, which informs the Board’s risk review process and its discussions regarding
its appetite for risks and opportunities in this area. During the year, qualitative consumer
research was carried out across different focus groups; the results of this research
informed certain key brand plans for the following year.
During the year the Board received presentations on the performance of key brands,
innovation and marketing campaigns. The Board discussed and were supportive of the
brand and innovation strategy and key brand plans for the following year.
Research to understand consumers’ attitudes and behaviours towards environmental
sustainability influenced the Board’s key decision to approve the initial phases of a
multi-year asset replacement programme to replace PET and can line assets at the
Cumbernauld factory, which will deliver ESG benefits in terms of providing PET
lightweighting opportunities and the introduction of tethered cap capability, as noted
above. Consumer feedback also influenced the Board’s key decision to continue to
support the Group’s environmental sustainability strategy, which is being delivered
through the ‘No Time To Waste’ programme of activity, including the delivery of a
number of initiatives under the plastics and packaging workstream, as noted above.
Updates on supply chain activities, including key suppliers, are provided to every Board
meeting and are considered and discussed by the meeting. A review of supply chain
strategy, including procurement, is presented to and discussed by the Board annually.
The Board approves all key supplier contracts above certain thresholds in accordance
with the Company’s Statement of Delegated Authorities.
During the year, the Company’s net-zero science-based targets were approved by the
Science Based Target Initiative. We have continued to work closely with our suppliers in
relation to our commitment to become net-zero across our own operations by 2035
and across our full supply chain by 2050, if not sooner.
During the year, the Board supported the move to 100% rPET for IRN-BRU and Rubicon
500ml, which was delivered in April 2022. Due to concerns raised by key suppliers
regarding the quality and security of supply of rPET, the Board took the key decision
to pause progress on the rPET programme for the remainder of the portfolio until such
time as higher quality material is available, anticipated to be following the introduction
of a DRS in Scotland.
During the year, the Board reviewed and approved the Group’s Modern Slavery
Statement, cognisant of the need to ensure that adequate processes are in place to
prevent modern slavery in the Group’s supply chain and to maintain its reputation for
high standards of business conduct.
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