Risk management MANAGING OUR CLIMATE- More information about our Climate >> Moving forward RELATED RISKS AND change and environment risk can be OPPORTUNITIES found in the principal risk section Our focus in FY22 onwards will As our Climate change and on page 83. An overview of our risk be to refine our high-level risk and environment risk is classified as a management responsibilities is set opportunities assessment, and principal risk in our risk register, this is out on page 77, and explains in more establish the most appropriate discussed with our Executive Board, detail how responsibility for risk scenarios for resilience testing of Audit and Risk Committee and Board management is allocated and how relevant risks and opportunities. as part of a twice-yearly formal review that responsibility is discharged by of our principal risks. Additionally our Board, Audit and Risk Committee, We will also develop a better this year, a detailed climate change Executive Board and Company understanding of the potential risk and opportunities register Secretary. impact of the risks identified by was developed by management our climate change risk assessment, with Carbon Trust, which forms the particularly the physical climate basis of our summary on page 50 change and biodiversity risks and and was discussed at a ‘deep dive’ opportunities associated with our session of our newly formed Risk and key supply chains, such as cotton Resilience Committee in June 2021. and timber, under different climate scenarios. Metrics and targets MEASURING OUR CLIMATE- avoidance, and the move towards >> Moving forward RELATED RISKS AND more sustainably sourced materials, OPPORTUNITIES all of which will contribute towards In September 2021 we announced We have allocated a metric for each reduction of carbon emissions and our 1.5C Paris-aligned target too climate-related risk and opportunity, other environmental impacts such as reduce our Scope 3 emissions by for those which we have been able water and chemical usage. Metrics 50% by 2030, which reflects our to quantify to date. In relation to our related to sustainability performance Textiles 2030 commitments. Climate change and environment risk, can be found on pages 42 and 43, This year we will: we monitor the number of regulatory/ including for energy reduction, reputational issues (see page 83). waste management, and single-use • Continue to improve our data Carbon intensity remains a Group KPI plastics. We also comment on other quality and accuracy. and we track performance against our environmental impacts. • Progress our understanding and three-year Scope 1 and 2 emissions quantification of the material reduction targets quarterly, and aim to financial impacts of climate do so for our Scope 3 targets in FY22. change. We also measure progress against • Set intermediate targets and packaging reduction targets, waste apply for SBTi approval. management, recycling and landfill DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021 51 STRATEGIC REPORT GOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION