41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 87
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
PRINCIPAL RISK
SUSTAINABILITY (more information about our Climate and Sustainability risks is included on pages 69–76)
8
Risk description:
• Failure to meet external, public commitments and regulatory requirements made in respect ESG.
Objective
To meet external
public commitments
and regulatory
requirements made in
respect of ESG
Events that may
trigger the risk
• Lack of understanding of the
commitment made and the
component parts
• Lack of awareness or
understanding of the
Regulatory requirements that
the company/USAF/LSAV is
obliged to meet
• No clear plan to deliver the
required outputs
• Lack of engagement from the
stakeholders on delivery of the
commitments
Potential impact
• Non-compliance with
regulations – regulatory
action/fines/penalties
may follow
• Brand damage with resultant
loss of revenue
• Loss of investor confidence/
trust
How we monitor
and negotiate
• Formal business policies in place
and updated regularly
• Effective communication
and reporting internally to
increase engagement and track
progress, and externally to
keep stakeholders appraised of
ambition and progress
• Increased costs as we fail to
• Ongoing stakeholder consultation
• Potential reduction in Group
• Sustainability Strategy and Group
manage the requirements and
plan ahead
credit ratings
and dialogue to ensure strategy
and reporting are aligned
Board Sustainability Committee
well established
• Governance structure in place with
clear Board oversight for climate
related issues
• Monitor performance against key
ESG targets
9
Risk description:
Failure to meet external, public commitments and regulatory requirements in respect of climate
and wider factors.
• Failure to identify, mitigate or prepare for impact of climate change.
•
Mitigate or prepare for
the impact of climate
related physical and
transition risks
• Extreme weather events
(flooding, high wind, heat
waves) the occurrence of
which are outside of our
control.
• Increasing legislative burden
(EPC Minimum Energy
Efficiency Standards, Energy
Saving Opportunity Scheme,
Taskforce on Climate- Related
Financial Disclosures,
more stringent planning
requirements and building
regulations etc)
• Increasing, volatile and
unpredictable energy, carbon
and water costs
• Increasing stakeholder
expectation
• Insufficient prioritisation of
investment
• Supply chain risks not
managed
• Damage to property
• Injury to people
• Disruption to supply chain
• Increased insurance costs
• Increased capital costs
• Potential for compensation
payments being required
• Regulatory action/fines/
penalties
• Brand damage with resultant
loss of revenue
• Loss of investor confidence/
trust
• Asset stranding/value
write-downs; inability to
dispose of assets that do not
meet regulatory compliance
standards
• Procurement decisions consider
environmental and climate change
performance
• Utilities purchasing strategy to
purchase only 100% REGO backed
renewable electricity
• Incident management plan/
procedures in place to react
to extreme weather incidents
efficiently and effectively
• Active horizon scanning for new/
changes to legislation
• Governance structure in place with
clear Board oversight for climate
related issues
• Monitor performance against key
ESG targets
85
