47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 74
A.G. BARR p.l.c. Annual Report and Accounts 2025
CO R P O R ATE
G OVE R N A N C E R E P O R T
CO N TI N U ED
Key Stakeholder
Form of Engagement
How This Stakeholder Group Influenced Board/Committee Discussions and Decisions
Suppliers
We ensure that we source raw materials in a responsible
manner and require our suppliers to commit to our
Supplier Code of Conduct and to comply with the
provisions of our Modern Slavery Statement and
Anti-bribery and Corruption policy.
Updates on supply chain activities, including key suppliers, are provided
to every Board meeting and are considered and discussed by the Board.
These include consideration of supply chain performance, stock availability
and commodity purchasing. A review of supply chain strategy, including
procurement, is presented to and discussed by the Board annually.
We seek to mitigate risks in relation to the continuity
of supply of key raw materials and ingredients by
developing strong commercial relationships with
our key suppliers.
The Board approves all key supplier contracts above certain thresholds
in accordance with the Group’s Statement of Delegated Authorities.
We have regular engagement with our suppliers through
virtual and face-to-face meetings, conferences and events.
Employees
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During the year, we continued to work closely with our suppliers in relation
to our commitment to become net-zero across our own operations by 2035
and across our full supply chain by 2050, if not sooner.
During the year we engaged with key suppliers on
matters related to climate change, including innovation
in sustainable packaging.
During the year, the Board reviewed and approved the Group’s Modern
Slavery Statement, cognisant of the need to ensure that adequate
processes are in place to prevent modern slavery in the Group’s supply
chain and to maintain its reputation for high standards of business conduct.
The Company complies with the Prompt Payment Code
guidelines, paying in excess of 91.8% of its supplier invoices
on time.
Engagement with key suppliers during the year informed the Board’s
discussions and decisions regarding the annual budgeting and long-term
strategic planning processes for the Group.
Monthly cross-functional supplier performance scoring
is conducted; the results are shared with suppliers and
discussed at review meetings. Regular review meetings
are held with key suppliers to review various KPIs, including
performance, risk management and ESG objectives. An
annual cross-functional supplier review meeting is held,
which informs our sourcing strategy for the following year.
Quarterly credit checks are carried out on suppliers
to assess their financial health.
The Board approved several important supplier contracts during the year,
ensuring these agreements met the operational and strategic needs of the
Company while adhering to its standards and values, including those
related to capital projects, packaging, warehousing and raw materials.
The Group is committed to engaging employees at
all levels regarding matters which affect them and the
performance of the Group. This is achieved in a number
of ways, including the use of regular briefing procedures,
which twice yearly include a report on trading results.
Regular communication meetings, including “town halls”,
are held to keep employees up to date with Group
performance. Leadership team “hangouts” take place
on a monthly basis to keep this group updated and to
provide the opportunity for them to ask questions on
business related matters. Consultation meetings also take
place when the Company is making decisions that are
likely to affect employees’ interests, at which employee
representatives’ views are taken into account.
The continued appointment of a designated non-executive director as
a mechanism for workforce engagement strengthens the link between
employees and the Board, helps to build an open and transparent culture
and to ensure that all employees have a voice in the Company’s future
success. It also helps the Board to make better informed decisions based
on the broad perspectives of the workforce.
The Company also continued to enhance its partnerships with third-party
co-manufacturers, discussing ways to expand co-packing capabilities in
order to meet growing customer demand.
