Risk

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.

  Risk Mitigation
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.
Unacceptable ethical/ environmental standards 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.
Employee wellbeing Employees suffer wellbeing issues including physical, emotional, mental and financial that affect their ability to work productively and/or cause absenteeism. 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.
Unsustainable packaging 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 responsibility 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.