Page 126 - Sigmaroc Annual-Report 2023

SIGMAROC ANNUAL REPORT 2023
TCFD Report
BOARD
Overall Climate Change responsibility
EXECUTIVE COMMITTEE
Operational responsibility for Climate Change, ESG and risk management at Group level
STRATEGIC REPORT
RISK MANAGEMENT
Climate-related risks are integrated into SigmaRoc’s risk management processes and are considered as part of the overall Group risk management processes. The risk assessment considered existing and emerging risks and all risk categories outlined in the TCFD recommendations in relation to all of SigmaRoc’s operations as of 31 December 2023. Climate-related risks and opportunities were also considered across upstream and downstream supply chains.
Climate-related risk identification is performed both bottom- up, through a detailed assessment of risks affecting each individual site, and top-down, through a high-level assessment of strategic, transition and market risks pertinent to the Group and its sector. Additionally, risks are identified through discussion and engagement with primary investors, peer review and through a cross-functional process led by the CTO taking into account internal stakeholders such as H&S, ESG, Estates and the General Counsel.
Site-level environmental risks, including climate change risks, are identified as part of operational risk assessments. These are conducted at a plant level and reviewed, assessed and monitored by regional Environmental and Industrial Direct teams. This year, the Group enhanced its site-level assessment of both chronic and acute physical climate- related risks using geospatial modelling software, which has provided greater detail and specificity for each individual site in the Group’s portfolio. Where material risks are identified, risk assessments are reviewed at divisional and Group level. Once identified, climate-related risks and opportunities are assessed and scored according to their likelihood and impact, in order to assess their relative magnitude relative to other risks. Impact is assessed based on quantitative and qualitative or reputational and financial risk according to the standard risk management thresholds. Likelihood is assessed based on the following thresholds:
BUSINESS UNIT MANAGING DIRECTORS
Operational responsibility for Climate Change, ESG and risk management at business unit level
CHIEF TECHNICAL OFFICER
Executive sponsor for Climate Change, ESG and risk management
AUDIT COMMITTEE
Monitoring ESG performance
BUSINESS MANAGEMENT BOARD
OPERATIONS / STRATEGY
RISKS, PROGRESS AND METRICS