Introduction Our business SwireTHRIVE About our report Other ESG disclosures Appendices Overview Our approach ESG risk management TCTCFFDD Swire Group Environmental • Formulate and review climate 2021/22 Activity Committee strategy • The SGEC and Climate Change Working Group both • Approve targets and initiatives met three times in 2022; delivering: • Executive authority over and – A full scope 3 inventory of the Group SwireTHRIVE Working Groups accountability for the management – A Group Internal Carbon Pricing mechanism FIRST of climate risk – Developing a strategy towards the use of carbon LINE removal projects within our Net Zero Strategy • Plan and implement climate change – Developing the Group’s Carbon Transition mitigation and adaptation policies Action Plan and measures – Updated the Group Climate Change Policy • Facilitate the integration of climate-related issues into daily operations Group Risk Management • Oversees the management of risks 2021/22 Activity Committee (GRMC) relating to climate change and to • The Risk Forums and Committees meet a total of 9 the sustainability of the times annually businesses, products and services • The GRMC reviewed the Group and divisional risk of the Company and its business Swire Pacific Risk Management units registers and assessed how effectively risks are SECOND Committee (SPACRMC) being managed. It also issued the revised climate LINE • Review any significant climate change policy to the opcos change risks and opportunities • The risk forums advised the GRMC on emerging Environment and Sustainability • Provide objective support, risks including climate change Risk Forum feedback and ultimately assurance • Analysed climate risk events that materialised and to the Group via the GRMC, that all developed best practice guidance climate risks have been identified and are being managed Group Internal Audit Department • Provide a second opinion as to 2021/22 Activity whether the internal controls, • Conducted an audit of sustainability (including mitigations and crisis response Climate Change) policy adoption across the Group measures are effective THIRD • The Board is actively engaged in 2021/22 Activity Swire Pacific Board of Directors LINE formulating and implementing • Met twice a year to review climate-related risks SwireTHRIVE 2.0 and to monitor progress against our • Accountable for sustainability decarbonization targets matters including progress against • Approved the pilot implementation of the ICP our 2030 key performance indicators model including Carbon Strategy • Climate change also creates opportunities, it stimulates business Further reading Describe the climate related risks and innovation and facilitates the transition opportunities the organisation has to a lower carbon economy. By Climate Change Policy developing low-carbon and climate- identi昀椀ed over the short, medium, and long term. resilient buildings, products, and • Climate change carries risks for our services, we can meet increasing Explore more business. Flooding, extreme weather market demand and mitigate the potential operational costs from Assessing materiality events and increasing temperatures extreme weather conditions, such as Waste can adversely a昀昀ect our assets, maintenance and insurance premiums. operations, employees and suppliers. We have sustainability-linked loans There are also regulatory, market and Water reputational risks. and are committed to integrating sustainability considerations into our • Climate change appears on our risk future 昀椀nancing mechanisms. registers at both Group and operating company levels and is discussed in our 2022 annual and sustainability reports. SWIRE PACIFIC — SUSTAINABLE DEVELOPMENT REPORT 2022 — 16