We believe that long term sustainable growth of our business depends on effective risk management. Risks associated with our sustainable business programme are reviewed and managed through the Sustainable Business Committee and high-level risks are escalated to the Executive Committee where appropriate.
|Increasing negative attention
on sugar (and by association
sugary soft drinks) as the
leading cause of obesity
||The degree of media interest and discussion on the impact of sugar on
public health outcomes continues to intensify with calls for sugar taxes
and sugar caps on soft drinks. Failure to develop products and innovation
that responds to any changing consumer preferences in response to this
could adversely affect our business.
||We are committed to playing a leading role in encouraging people to live healthier lifestyles. We have a clear
health strategy, with 2020 goals, and have recently launched our Responsible Marketing Code which bans
advertising to under-12s. In the past year we have delisted full sugar Fruit Shoot and Robinsons and have
continued to build on our low sugar strength with launches such as MiWadi Zero. The key levers to achieving
our ambitions will be new low sugar innovations, reformulation and mix.
within our supply chain
||Ethical/environmental malpractice identified within our supply chain.
||We have our responsible sourcing programme in place to ensure all suppliers sign up to our Ethical Business
Policy and monitor compliance thorugh audits. We continue to be an active member of the AIM Progress group
aimed at collectively improving the standards across the FMCG supply chain and are broadening our programme
to include our indirect supply chain.
||Employees suffer wellbeing issues including physical, emotional, mental
and financial that affect their ability to work productively and/or cause
||Employee wellbeing programme in place that offers support for potential health issues including a 24 hour
employee assistance programme. Health, Safety & Wellbeing Committee in place to monitor wellbeing
issues and implement mitigation activities where necessary.
||Innovation in the packaging landscape in support of more sustainable
packaging materials/formats moves faster than our ability to respond.
Risks include regulatory, sourcing (pricing/availability), competitor
developments and stakeholder expectations.
||Sustainable packaging strategy in place that sets out minimum requirements for all packaging
to comply with. Packaging taskforce established to monitor legal and best in class packaging
developments to ensure strategy fit for purpose. We continue to work with suppliers to develop
sustainable packaging innovations.
|Climate change impacts
||The impacts of climate change affect our ability to operate either directly within
our manufacturing sites (e.g. severe weather affects the transportation of goods)
or indirectly within our supply chain (e.g. changes to weather patterns affects the
ability to source fruits/juice from certain regions).
||We review and manage the resilience of our sites to significant events and put protection in place
where practical and beneficial to the business to do so. In addition we have discussions with our
strategic partners on business continuity and discuss climate related issues where relevant.
|Failure to meet stakeholder
expectations with regard
to corporate social
||External stakeholder expectations on how we as a responsible business
address the sustainability issues do not align with our sustainability focus
or level of performance.
||Regular materiality surveys conducted to establish stakeholder views on sustainability programme.
Ongoing communications with stakeholders to build confidence in our programme. Sustainability
considerations built into strategy and planning process.