47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 42
A.G. BARR p.l.c. Annual Report and Accounts 2025
RESPONSIBLE BUSINESS REPORT CONTINUED
Corporate climate-related targets, set by
the Executive teams and ratified by the ESG
Committee, are monitored by the Board on
a regular basis.
The Board, in turn, delegates some elements of
its responsibility to its various sub-committees,
as set out below:
• The Audit and Risk Committee has the
delegated responsibility to monitor our internal
financial controls as well as our internal control
and risk management systems. Its risk
management oversight includes the review of
our Group corporate risk register and principal
risks, including those related to climate change,
at least twice per year.
• The Environmental, Social and Governance
Committee assists the Board in fulfilling its
oversight responsibilities with respect to the
Company’s management of all relevant ESG
matters. The ESG Committee has delegated
responsibility for approving the Company’s
environmental sustainability strategy and
reporting back to the Board. It meets four times
a year as a minimum. The ESG Committee
owns, and is responsible for monitoring and
updating, our material risks and opportunities
related to climate change. A full review was
undertaken during the year against three
climate scenarios. See the Strategy section
for the output.
• The Remuneration Committee is responsible
for determining our remuneration policy,
including how climate-related factors are
taken into consideration and reflected in
reward. Executive directors’ long-term
incentive plan awards, by way of illustration,
include an environmental sustainability
performance measure. Further information is
available in our Directors’ Remuneration
Report on pages 87 and 88.
• The Nomination Committee is responsible for
Board appointments and succession planning.
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Business Divisions
Our Executive teams across our business divisions
are responsible for managing the climate-related
risks and opportunities faced by our Group on
both a long-term strategic basis and day to day.
Our strategic planning process considers both
the risks and opportunities arising from climate
change and a specific process related to
emerging risks and opportunities. The Executive
teams are supported across a number of areas
as set out below:
• Our Group Risk Committee ensures that a
strong framework is in place to manage
operational risks effectively, including those
associated with climate change. The Committee
oversees our principal risks and uncertainties,
and reviews the effectiveness of risk
management and compliance systems in
managing those risks. The aim of the Committee
is to ensure that employees understand the
importance of good risk management, that
a supportive risk management culture is
embedded across the Group and that risk
management processes are clearly deployed.
• The No Time To Waste Steering Group,
chaired by the Chief Executive Officer, governs
our Group-wide environmental sustainability
programme. The No Time To Waste Steering
Group has overall responsibility for setting the
Group’s environmental sustainability strategy,
for achieving the Company’s climate change
objectives, and for monitoring and managing
risks and opportunities related to climate
change. In the following year, this Steering Group
will be expanded to become an ESG Steering
Committee, reporting to the ESG Committee.
The No Time To Waste programme
encompasses five key workstreams associated
with reducing the effects of climate change,
with a risk register in place across the
programme. The risks identified, along with
opportunities arising from the climate change
agenda, are reviewed on a monthly basis.
• Our Executive Committee is responsible for
identifying and managing emerging risks and
opportunities at an AG Barr Group level. This
committee conducts an annual review prior to
making recommendations to the Board, the
output from which forms part of our Board’s
annual Strategy Review.
• Our Capital Allocation Committee is
responsible for ensuring the best use of our
capital resources in line with our strategy and
plans. This includes the review and approval
of capital expenditure programmes related
to environmental sustainability, taking into
account the risks and opportunities in
investment decisions.
Strategy
Our Board has ultimate responsibility for agreeing
our business strategy, taking into account, and
reflecting where appropriate, the risks and
opportunities associated with climate change.
As detailed above, the Board’s strategic thinking
and decision making is supported and informed
by our Executive teams and by a number of
Board sub-committees.
As detailed in the Metrics and Targets section that
follows, our key climate related objective, borne
out of our strategy, relates to our achievement
of our science-based targets and our ultimate
net-zero commitment. Our associated net-zero
road map is set out on page 37.
Our strategic timeframes are as follows:
• Short-term: 0 to 1 year
• Medium-term: 1 to 5 years
• Long-term: 5+ years
These timeframes have been selected to align
with our annual budgeting process, our internal
integrated planning process (3 to 5 years) and
our longer term thinking on emerging risks and
opportunities.
The opportunities, as well as physical and
transition risks considered material to our Group,
are detailed below, along with our strategic
responses. A full review was undertaken during
the year against three climate scenarios, with
the resilience of our strategy specifically tested
against scenarios where global temperatures
rise by more than 2°C (RCP 4.5).
Our methodology for defining material financial
and strategic impacts on our business is aligned
with our risk management approach, detailed
in the Risk Management section that follows.
Gross risk impacts that fall in the categories
of “moderate”, “major” or “critical” would be
deemed to be material:
