Introduction Our business SwireTHRIVE About our report Other ESG disclosures Appendices Overview Our approach EESSGG r riskisk m maananagegemmeenntt TCFD Risk governance structure Risk governance structure Swire Pacific Board (SPAC) BOARD LEVEL SPAC Audit Committee SPAC Executive SPAC Risk Group Risk Management Management Management Committees Committee Committee S PA HR, Health SPAC Internal C SPAC and Safety Audit Function Functional SPAC Risk Risk Forum EXECUTIVE Function LEVEL Committees Enterprise Risk IT, Data and Management Technology Working Group Risk Forum S WIRE BUSINESS UNITS (BU) Swire BU Risk Function Government, Swire BU Regulatory and Swire BU Executive and Legal Risk Forum Internal Audit Management Functions Committees Swire BU Risk Management Environment and Committees Sustainability Risk Forum FIRST LINE SECOND LINE THIRD LINE Enterprise risk management Risks considered to have a Group The Group ERM process is both top down dimension are discussed by the GRMC, Further reading and bottom up. It accommodates for and potentially by the Audit Committee and the Board. Key risk focus areas for Swire Paci昀椀c Annual Report 2022 – Risk management operating company speci昀椀c risks and risks the Group that relate to SwireTHRIVE that are material at the Group level. include Climate change and Recruitment Group ERM process The Board gives guidance on its risk and retention. Details of our mitigation priorities, the operating companies assess measures are provided in the Risk their own risks and the SPACRMC manages management section of the Annual Group risks. All of these are reported to Report, and the in the Climate, People Explore more the GRMC and are consolidated into the and Talent management sections of Climate Group risk register which is then presented this report. to the Audit Committee and the Board. We use an enterprise risk management People The operating companies have adopted (ERM) process to identify, assess, monitor Talent management a common approach to ERM based on and manage risks. The ERM process is the development and management of aimed at ensuring robust and e昀昀ective their risk registers. Operating companies risk management by the Group and are responsible for the identi昀椀cation, at fostering a risk aware culture. The assessment, mitigation, and monitoring of implementation and execution of the these risks in their respective businesses. ERM process follows our Enterprise Risk Management Policy. Each division and major operating company is required to implement the ERM process. SWIRE PACIFIC — SUSTAINABLE DEVELOPMENT REPORT 2022 — 13