Governance & regulatory information Chairman’s letter Dear Shareholder BOARD MEMBER UPDATE I was delightedto welcome Arja Taaveniku to the Board in PURPOSE, CULTURE AND RESILIENCE February 2021, and I am pleased that she is already making Covid-19 bought a new sharpness to the Board’s discussion a valuable contribution to our strategy discussions and of ‘resilience’. We concluded this stems from having a Board deliberations. Details of the background to her strong shared purpose, supported by our culture of doing appointment are in the Nominations Committee report the right thing, taking long-term decisions, prudent capitalon pages 123 to 124. management, and maintaining good relationships with all our stakeholders, with good leadership at its nexus. In theAs reported last year, William Reeve was appointed as second year dominated by the Covid-19 pandemic, the Senior Independent Director in September 2021, to fill the Board and management have focused on these factors and vacancy left by the retirement of Liz Doherty. Dunelm is emerging from Covid as a stronger business, forged by overcoming adversity, not least having our storesPaula Vennells stepped down from the Board and we thank closed for a third of the year. I am proud to be a small parther for the positive contribution she made to the business of the Dunelm team and I would like to profoundly thank since her appointment in September 2019. my Board colleaguesand the Executive Board for their commitment and support over the year. Since the year end we have announced the appointment of Vijay Talwar to the Board, to enhance the Board’s EVOLVING OUR PURPOSE AND SHARED VALUES capabilities in large-scale digital commerce, cyber security A strong sense of purpose has long been innate at Dunelm and finance. Vijay will join us on 1 October 2021. As our and we have developed our purpose, to reflect the Board will be 30% female following Vijay‘s appointment, we evolving external environment and the ever-increasing also commenced the search for a female NED in order to digital elements of our business. Our evolved purpose is meet governance requirements on gender diversity. ‘To helpcreatethe joy of truly feeling at home. Now and for the generations to come’ and was developed following TALENT, DIVERSITY AND SUCCESSION extensive consultation with customers and colleagues, to One of the important commitments stemming from our ensure that it resonates with these key stakeholders. Full 2020 Board review was for the Board to increase its focus details of this, including why we consider each element to on succession and talent management, both to the Board be important, are on page 3. At the same time, we reviewed and Executive Board and throughout the business. This with our colleagues our shared values, which are based has initially been conducted through the work of the on the business principles developed by Sir Will Adderley Nominations Committee, and has now become a prime shortly after the business was floated in 2006. We believe focus of the Executive Board and increasingly of our senior that the four values of Act like owners, Keep listening andmanagement. We are deeply conscious of the importance learning, Long-term thinking and Stronger together of developing the next generation of leadership with the encapsulate the way that we want our colleagues to behave. enhanced capability to lead in an ever more complex world. Our Board and the leaders in our business are accountable The Board has also focused more of its time on diversity for role modelling our values, and we take care to ensure and inclusion through a tailored education process. that we recruit and appraise our leaders against them in Details of both of these activities are in the Nominations order to protect and enhance our culture. Committee report. I am proud to be a small part of the Dunelm team and I would like to profoundly thank my Board colleagues and the Executive Board for their commitment and support over the year.” DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 93 GOVERNANCESTRATEGIC REPORT FINANCIAL STATEMENTSOTHER INFORMATION Ream