Sustainability Task Force on Climate-related Financial Disclosures (TCFD) OUR PATH TO A MORE SUSTAINABLE FUTURE During the year, we made a step-change to the way we approach, measure and communicate climate-related risks and opportunities across the Group. Being sustainable in everything we do is a foundation of our business and integral to our shared value of ‘long-term thinking’. We set out below an abbreviated disclosure under TCFD, in advance of full disclosure next year. Governance Strategy Risk Metrics • Sustainability Focus Group • Focus on emissions reduction • Climate change and • Carbon intensity metric set as chaired by Company Secretary and operational waste environment on operational Group KPI and measured since with formal reporting to management. risk register and disclosed as 2016 (based on GHG protocol Board. • Sustainability identified as principal risk in FY19. Scope 1 and Scope 2). key strategic focus area at • Energy and waste management Board strategy days in targets in place since 2009. May 2020. • Model created with Carbon • Appointed Carbon Trust in Trust in 2020 to measure FY20 to help us measure Scope 1 and 2 carbon carbon footprint and footprint. complete an initial climate change risk assessment. • Sustainability standing item • Board commits to supporting • Climate change and • SECR data published in on Board agenda. British Retail Consortium’s environment reconfirmed October 2020. • Sustainability Focus Group Climate Action Roadmap to as principal risk. • Actual Scope1 and widens remit. achieve net zero by 2040. • Carried out high-level climate Scope 2 emissions disclosed. • Worked on initial TCFD report • Joined WRAP’s Textiles 2030 change risk assessment with • Initial model created with published for FY21 in advance agreement (see page 58). Carbon Trust. Carbon Trust to measure of full report for FY22. • Became TCFD supporter. • New Risk and Resilience Scope 3 carbon footprint. • Sustainability reconfirmed committee carries out first • Published 10-year greenhouse as focus area during Board ‘deep dive’ into climate gas reduction targets, aligned strategy days in May 2021. change in June 2021. to a 1.5°C pathway: • Top-line climate-related risks – Scope 1 target: reduce and opportunities disclosed. emissions by50% in absolute terms by 2030 (using 2019as base). – Scope 2 commitment: continue to purchase renewable electricity. • CEO becomes Chair of • New forward-looking • Climate change risk • Published 10-year greenhouse Sustainability Focus Group purpose encapsulates assessment results to be fed gas reduction targets, aligned in July 2021 and renames commitment to being a into development of wider to a 1.5°C pathway, to reduce it Pathway to Zero Steering sustainable business. climate change roadmap. Scope 3 emissions by 50% by Group to signal critical • Sustainability identified • Scenario planning to 2030 (using 2019 as a base). importance of addressing as a business foundation. be completed to assess • Circular economy, ‘more climate change to the long- • Circular principles further resilience of relevant risks responsibly’ sourced cotton term success of the Group. embedded into product under different climate and packaging reduction KPI • Members confirmed as design and development scenarios. targets assigned as measures CEO, three Executive Board process. for FY22-24 LTIP. members, each heading up • Roadmap for removal of • Sustainability targets in FY22 new working groups, and gas heating and harmful annual bonus for CEO, CFO, Company Secretary. refrigerants developed. Company Secretary and • CFO heads up Carbon Executive Board members. reduction working group, taking direct responsibility for Scope 1 and 2 carbon reduction and TCFD reporting, supported by Company Secretary. • Head of Climate Change appointed inJuly 2021, reporting directly into CFO, and working closely with two other Executive Board heads. 48 DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021 SRAEY LAICNANIF ROIRP12YF22YF