47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 44
A.G. BARR p.l.c. Annual Report and Accounts 2025
RESPONSIBLE BUSINESS REPORT CONTINUED
Transition risks
Associated with changes to policy and legislation, technology, the market and reputation.
Risk Type & Description
Policy and legal risk
Timeframe
Potential financial impact
Medium-term
The risk of higher costs as a consequence of planned / potential regulation such as a carbon tax or a waste incineration tax.
The IEA Net-Zero Emissions by 2050 climate scenario identifies a potential need to introduce carbon pricing for all industries in developed
countries starting from $140 per tonne CO2e in 2030, rising to $205 per tonne CO2e in 2040.
Strategic response:
We have approved science-based targets that will see us becoming net-zero across our own operations by 2035 and across our full supply chain by 2050, if not sooner. We have already begun our
decarbonisation journey in areas such as moving to 100% renewable electricity and 100% electric forklift trucks.
We are also focused on reducing, reusing and recycling across our packaging. 100% of our Barr Soft Drinks, FUNKIN and MOMA packaging is already recyclable and we are increasing our use of recycled
material. We now have 100% recycled plastic film across consumer multipacks and a minimum of 30% rPET across our Barr Soft Drinks portfolio. Discussions are also underway with our glass bottle and
aluminium can suppliers on how we can work together to increase recycled content in the products they provide. We are reducing packaging where possible, such as a reduction in the weight of our factories’
outer stretch wrap. Our long-term objective is to move to 100% circular or renewable packaging across our entire portfolio.
In addition, we are positive supporters of the implementation of the Deposit Return Scheme (DRS) in the UK, which will help to mitigate Extended Producer Responsibility (‘EPR’) costs for the business –
the latest government proposals in this area have confirmed that containers subject to DRS will be out of scope of EPR.
Market and technology risk
Medium-term
The risk that energy and other related costs rise as industry transitions to new sustainable business models e.g. renewable electricity,
packaging material supply, bio fuel etc, and/or national targets for grid decarbonation are not achieved. This could result in increased costs
to the business as our supply base passes these increases through and impact the reduction of our purchased electricity emissions (Scope 2)
in line with our net-zero targets.
Strategic response:
Volatile input costs, particularly energy related, are mitigated where possible by timely procurement and long-term contract management, such as our long-term renewable electricity agreement. We
monitor market conditions carefully and ensure that decision-making takes into account external trends and economic forecasts, ensuring availability can meet our supply needs at an acceptable cost.
Market risk
Medium-term
The risk that consumer or customer behaviours change in relation to single-use packaging or as a result of regulatory changes designed to
reduce the impact of climate change, such as DRS, resulting in a reduction in demand for our products or consumers switching to brands
perceived as more sustainable.
Strategic response:
We are positive supporters of the implementation of an interoperable UK-wide DRS scheme. By incentivising consumers to return their drinks containers, DRS will set drinks packaging apart, as drinks
containers will become part of a truly circular economy.
The delivery of our net-zero roadmap, and specifically our drive to reduce, reuse and recycle across our packaging, are key to improving our environmental credentials and further building trust with consumers.
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