Governance BOARD OVERSIGHT OF 2030 targets to reduce our Scope 1 and >> Moving forward CLIMATE-RELATED RISKS 2 carbon emissions, aligned to a 1.5ºC AND OPPORTUNITIES pathway, and announced in February As outlined in the table on page During the year under review, our 2021. Additionally, the Board received 48, the Board took a significant Board had a two-pronged approach a monthly update from the Company number of steps this year to for governing climate-related risks Secretary. Our Board and Audit and underscore the critical importance and opportunities – through our Risk Committee also formally reviewed of managing climate change risks formal risk management framework our principal risks, one of which is and opportunities to the long-term (see page77 and below) and our Climate Change Risk – this is mandated success of the Group. Our new Sustainability Focus Group, whose to take place twice a year. Pathway to Zero Steering Group will remit included understanding, meet at least three times a year and mitigating and/or benefiting from The Executive Board was also updated is headed by Nick Wilkinson, our the impacts of climate change on each month on the activities of the Chief Executive, who will report to the our business. Through both formal Sustainability Focus Group by the Board on its activities. Our Company channels the Dunelm Board had Company Secretary. In May 2021, Secretary will continue to provide oversight of and fulfilled its overall Carbon Trust presented to the Executive an update on sustainability matters, responsibility for our approach, Board and the Chairman of the Board including climate change, at each strategy, risk management and the outcome of the work completed Board meeting. Our Board and Audit performance in this area. to create a model of our Scope 3 and Risk Committee will continue emissions and the initial climate change to formally review our principal In FY21, two formal presentations on risk assessment. This was included in risks twice a year – bolstered by our Sustainability were made to the Board the preparatory reading for the Board newly-formed Risk and Resilience by our Company Secretary (Chair of strategy days in May 2021 and informed Committee, which will carry out a our Sustainability Focus Group during the debate on the development of ‘deep dive’ into climate change at the period under review), one of Dunelm’s sustainability ambitions. least annually. The first of these took which supported the decision to set place in June 2021. Strategy INTEGRATING CLIMATE of developing our five-year financial >> Moving forward CHANGE RISKS AND plan, and we have a specific budget for OPPORTUNITIES INTO climate-related matters, with additional • Build out our detailed roadmap to OUR BUSINESS resource requirements (for example meet our targets, gaining a better Climate change considerations are to support product sourcing) built into understanding of the key drivers increasingly integrated into day-to-day the relevant functional budget. With of carbon reduction through our business activities. Energy efficiency/ this pivotal change in emphasis, we aim supply chain. carbon impact is already included in for climate-related considerations to become more central to our business, • Increase stakeholder engagement, all new store and store refit proposals; strategy, and financial planning. improve internal and external our stock supplier (product) communications. assessment has been extended to • Invest in resource and expertise to include climate-related matters and Through our work with Carbon Trust is completed on a mandatory basis we undertook an initial, high-level support this activity. by all Dunelm branded suppliers; and assessment of potential risks and • Recognising that climate change is our product development/selection opportunities that climate change could a complicated and complex topic – process now includes consideration have on our business over the following it is technical, scientific and moving of matters relevant to climate change time horizon scans: short term (0 to 2 at a fast pace – we will continue and the environment (see ‘Circular years), medium term (2 to 5 years) and to engage more with our peers Economy’ (page 52) and Responsible long term (over 5 years). These are and stakeholders to improve our Sourcing (page 56). Our principal presented in the table on page 50. understanding, share ideas and risks are considered in the process progress, and gain support. DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021 49 STRATEGIC REPORT GOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION