Introduction Our business SwireTHRIVE About our report Other ESG disclosures Appendices Overview Our approach EESSGG r riskisk m maananagegemmeenntt TCFD OUR BUSINESS ESG risk management E昀昀ective risk management is key to They are responsible for identifying and The GRMC includes divisional chief ensuring the long-term viability of the executives, is chaired by the Finance managing speci昀椀c areas of risk, proposing Group. It is embedded within all our policies and reporting performance. Part Director and reports to the Board via operating companies. It is essential that of the role of the functional committees the Audit Committee. It oversees the every Swire Paci昀椀c employee works and working groups is to identify risks management of non-昀椀nancial risks at together to address the risks to which our and opportunities which fall within their both Group and Operating Company Group is exposed. respective areas and to draw up policy levels. The GRMC: The Board has ultimate responsibility recommendations for GRMC review and • Reviews the Group’s risk pro昀椀le and for risk management, overseeing its approval. Group and divisional risk registers design and implementation. The Board The policies approved by the GRMC apply • Oversees the management of is supported by the Audit Committee. to all companies in which Swire Paci昀椀c major risks at Group and operating The Board has adopted the three lines of has a controlling interest. The boards of company levels defence model of risk governance. The these operating companies are required • Identi昀椀es emerging risks and potential model is designed to minimise con昀氀icts of to adopt these policies and to establish sources of future risk including ESG risks interest and ensure independent oversight procedures to ensure compliance. Joint of risk management. venture and associated companies are • Analyses risk events which materialise, encouraged to adopt Group policies. with a view to their resolution and to learning from them The First Line In relation to risks having a Group Explore more dimension the GRMC is supported by In the 昀椀rst line, the Board is supported by the management of each division Our Approach four risk forums covering, respectively: and functional committees. They are environmental, human, technology and responsible for identifying, analysing legal risks. In relation to those not having and managing the risks to us associated a Group dimension the GRMC is supported with achieving our business objectives, The Second Line by the Second Line infrastructure within including those relating to sustainability. each Operating Company. The role of the Second Line is to support The functional committees include The SPACRMC identi昀椀es risks which representatives from our divisions. the First Line and provide assurance to have a Group dimension and proposes The Swire Group Environmental the Board that risk is being managed approaches to the management of such Committee, Diversity and Inclusion e昀昀ectively. The Second Line includes two risks to the GRMC. management committees, the Group Risk Steering Committee (DISC), and the Health and Safety Committee are Management Committee (GRMC) which tasked with the management and focuses on Group-wide risks and the Swire The Third Line oversight of sustainability risks relevant Paci昀椀c Risk Management Committee The third line of defence is the internal to SwireTHRIVE. The members of the (SPACRMC) which oversees risks to the audit function of the Group and the audit functional committees and working Company itself. functions in our Operating Companies. groups include specialists in their respective areas. Each committee is chaired by an individual with relevant experience. SWIRE PACIFIC — SUSTAINABLE DEVELOPMENT REPORT 2022 — 12