Governance & regulatory information Board leadership and company purpose continued OUR APPROACH TO S172 REPORTING IN FY21 To explain how our Directors carried out their duties we have Each of our Directors is mindful of their duties under section set out our narrative using the headings 1-7 below. 172 (s172) to run the Company for the long-term benefit of its shareholders and, in doing so, to consider the interests 1 Identification of stakeholders and why of its key stakeholders during its decision-making and the they are important impact of any of its decisions on stakeholder relationships, on the Company’s reputation for high standards of business conduct, and on the environment. We set out our key stakeholders, what matters to them and why we engage with them on pages 14 to 17 of our Strategic Although we have taken the matters set out in s172 into Report. Our actions and decisions are highly likely to impact consideration for many years, the Code requires us to provide these stakeholders (and vice versa) and we cannot follow specific information about how the Group and the Directors our purpose, liveup to our ambitions nor deliver our strategy have considered them, with recent guidance encouraging without them. Our relationships with them are paramount greater insight into the outcome of stakeholder engagement to the long-term success of our business as we have mutual rather than the process itself. The areas encompassed in beneficial interests. s172 touch on everything we do, and, in reality, most of the day-to-day decision-making and stakeholder engagement is We engage with these stakeholders through regular dialogue carried out at the business level by members of our Executive at an operational level. Our Directors are formally and regularly Board, and our senior leadership team. However, more informed about our stakeholders and their interests, and material matters require the attention of the Board and wider engage with them formally as well as on a more ad hoc basis. In discussion, and we describe on pages 14 to 17 and through addition to the Group’s key stakeholders, there are others with case studies on pages 108 to 113 how these are considered whom our Board and/or senior management interact regularly and challenged through formal Board processes, how the and these are listed on page 17 in the Strategic Report. Board engages with stakeholders and how it oversees how the business does so. We include cross references to other How key stakeholders are relevant to our ambitions sections of this report where more information and examples can be found. The Non-Financial Information Statement on Our key stakeholders are important to each strategic element page 175 should be used to identify information relevant to of our ‘plan on a page’ as set out on page 11. However, the s172 factors, as should the numerous operational actions and importance that we place on each stakeholder group in outcomes described in our Sustainability section on pages relation to ourlonger-term thinking is best demonstrated 40 to 75, resulting from significant engagement with various through our three Group ambitions, as illustrated in the table stakeholder groups. below. Each key stakeholder has a direct influence on (and interest in) our ability to work towards these ambitions. Our ambitions are aspirational and will still be relevant in the medium to long term, and each ambition is supported by Group KPIs (pages 32 and 33) which indicate the effectiveness of our engagement. AMBITIOUS ABOUT AMBITIOUS ABOUT AMBITIOUS ABOUT Our brand Being a good Profitable growth home, with more customers shoppinggrowing as the #1 destination for company long-term value creation by using ourfocusing on quality of growth and more frequently for homewares, a great place to work – making a resources wisely and efficiently furniture & more positive social impact and operating sustainably in all of our communities Relevance to key stakeholder groups Customers Store Colleagues Shareholders communities Suppliers Suppliers Shareholders Colleagues 104 DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021