Principal risks and uncertainties key Increasing No change Decreasing New Risk How we mitigate Progress in FY21 CLIMATE CHANGE AND • Sustainability – ‘Make sustainability • Sustainability is built into our purpose ENVIRONMENT accessible to all’ is a key part of our and ‘Sustainability’ is a strategic focus revised Purpose and is reflected in our area for FY22. Description Focus Areas. • Progress made and fully committed to Failure to anticipate and address • Chief Executive oversees our approach report in accordance with the Task Force the strategic, regulatory and to sustainability issues, including on Climate-related Financial Disclosures reputational impact of climate change climate change. Accountability by 2022. and environmental matters, and for three working groups(Carbon • Announced 10-year Scope 1 and Scope governmental, consumer and media Reduction, Circular Economy and 2 greenhouse gas emissions targets action in response to it. Community) allocated to Executive and Scope 3 target announced in Board members. September 2021. Became supporters of Link to strategy: • Route to Zero Steering Group oversees BRC’s Climate Action Roadmap to make Sustainability progress against environmental targets the industry net zero by 2040. Performance indicator: and climate change work with Carbon • Model developed to measure carbon Prosecution and other regulatory action Trust advising on climate change emissions and high level risk assessment matters. completed with the help of Carbon Executive responsibility: • Targets in place to reduce emissions, Trust. Chief Executive Officer energy usage and waste to landfill, • Joined Textiles 2030 initiative which Reports to: and increase recycling in our own aims to develop more sustainable N/A operations (see pages 42 and 43). textiles. Impact compared to FY20: • Waste management contractor • Packaging reduction policy adopted, appointed with contractual KPIs packaging manual rolled out to to deliver waste minimisation and suppliers and packaging technologist recycling targets, including audit and appointed to drive action. advice to stores. • Environmental assessment of own brand • Sustainability is part of the Product suppliers rolled out and assessments strategy and product selection being compiled. process. Policies in place for high- • New factory environmental assessment risk product types and routes (cotton for water, energy, waste and emissions timber, palm oil and animal-derived reduction for all own brand Tier 1 materials, e.g leather, feathers and manufacturing sites. down). • New Head of Climate Change Board oversight: appointed and resource added to waste • Presentation at least twice a year, is part management team. of our proposition and focus area. • ‘More responsibly sourced cotton’ and • Topic at the Board’s strategy days. ‘more responsibly sourced timber’ policies updated and supporting verification made more robust. • More sustainable and recycled materials introduced into our product ranges. DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 83 STRATEGIC REPORT GOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION