Introduction Our business SwireTHRIVE About our report Other ESG disclosures Appendices Overview Our approach ESG risk management TCTCFFDD OUR BUSINESS Task Force on Climate-related Financial Disclosures Swire Paci昀椀c supports the • Swire Paci昀椀c maintains a three lines of • Regarding the 昀椀nancial impact climate recommendations of the Financial defence risk governance structure. The change may have on the Company, the Stability Board’s Task Force on Climate- 昀椀rst line of defence includes the Swire Environmental, Social and Governance related Financial Disclosures (TCFD) and Group Environment Committee (SGEC) Risk Forum provides updates to the started producing annual disclosures that and 昀椀ve subject speci昀椀c working groups, Group Risk Management Committee consider these recommendations in 2018. including the Climate and TCFD working and the Audit Committee. The following statement, structured in line groups. They comprise representatives • In 2021, we conducted a double with the recommended disclosures of the from our divisions and are responsible materiality review to gather feedback TCFD, details the risks and opportunities for identifying and managing speci昀椀c from internal and external stakeholders presented by climate change, their areas of risk, proposing policies and through qualitative interviews and focus reporting performance to the GRMC. implications for our businesses and actions groups. The topics of energy e昀케ciency, we are taking to respond. • The Swire Paci昀椀c Risk Management decarbonisation, climate adaptation and Committee (SPACRMC) and four risk resilience, as well as water and waste forums, including the Environment and management were identi昀椀ed as material Further reading Social and Governance Risk Forum, were issues for our business continuity and introduced to strengthen oversight of development. These issues align with The Task Force on Climate-related risks, including climate change-related the environmental priorities under Financial Disclosures risks (see ESG risk management). SwireTHRIVE. Swire Paci昀椀c Annual Report 2022 • The GRMC, SPACRMC and the new risk Describe management’s role in forums form the second line of defence, assessing and managing climate- providing oversight and assurance to related risks and opportunities the Board and the Audit Committee that • The Chairman, Finance Director and Explore more risks are being managed e昀昀ectively. divisional chief executives meet twice a ESG risk management • The third line of defence is the internal year to consider sustainability matters. audit function of the Group and the These meetings provide direction audit functions in our Operating and oversight to the SGEC, which Companies. comprises divisional sustainability • At a Group and Operating Company heads and is chaired by an Executive level we also conduct regular risk Governance Director of Swire Paci昀椀c. The SGEC identi昀椀cation and analysis and review meets three times a year. It has the Describe the organisation’s governance management processes throughout following responsibilities related to the year through the risk forums around climate-related risks and climate change: opportunities. and our enterprise risk management – Oversee and implement SwireTHRIVE (ERM) system. We have corporate risk • The Swire Paci昀椀c (SPAC) Board, registers, in which climate change has (including on climate) and led by an Executive Chairman, has sustainability policies ultimate accountability for climate been identi昀椀ed as an emerging risk. change-related strategies and the • To provide additional oversight – Report on Group sustainability decarbonisation performance of all and direction, the Group Head of activities and performance to the Sustainability reports periodically to GRMC (including emissions and subsidiaries under Swire Paci昀椀c. energy use) and on compliance with • The Board is briefed biannually by the the Board and leadership team on sustainability matters. sustainability policies Group Head of Sustainability on climate- related issues and our performance • Both the Board and leadership team – Review and report on legislative, regulatory and other sustainability against our decarbonisation targets. have su昀케cient knowledge of climate- • An Executive Director of Swire Paci昀椀c related issues and the impacts of such developments has responsibility for the Group issues on the company’s business and • Our Climate Change Policy guides our operations. Regular training on climate- approach to climate change mitigation, sustainability strategy (including related issues is provided to ensure Climate Change) and the Group that they are kept abreast of the latest adaptation and resilience. Sustainable Development O昀케ce. developments. In January 2022, the • Climate change and the management of • The Board is kept informed of climate Board received training on ESG trends waste and water resources are priorities risks by the GRMC, which reports to the and insights which included climate under the SwireTHRIVE strategy. Board via the Audit Committee. change and climate-related risks. SWIRE PACIFIC — SUSTAINABLE DEVELOPMENT REPORT 2022 — 15