Zero Emission: Climate Governance & Risk Management

SD Guthrie’s climate governance covers the Board’s oversight of climate-related risks and opportunities, and the role of Management in assessing these risks and opportunities.

Climate-related roles and responsibilities

The Board

• The Board is responsible for the oversight of climate-related risks and is aware of the potential impacts, risks and opportunities from climate change on SD Guthrie’s operations. The Board includes climate-related considerations in the Company’s governance and risk management
• The Board provides strategic oversight of the company’s sustainability initiatives, including climate-related initiatives

Management

• The Management monitors climate-related risks and opportunities and manages the Company’s risk management strategy including climate-related strategies
• The Group Managing Director is accountable for monitoring sustainability-related matters for the entire Group, including climate-related risks and opportunities
• The Chief Sustainability Officer, is responsible for quarterly reporting on updates, progress, and critical concerns to the Board Sustainability Committee, including climate-related matters
• The Management ensures the implementation of sustainability initiatives, including climate-related initiatives. A sustainability team, including the Climate Change Unit, drives operational execution of our sustainability and climate strategy. The team works together with Renewable Energy, Supply Chain and Conservation and Biodiversity teams on the implementation of renewable energy and land use transformation projects. 

SD Guthrie has implemented a proactive and ongoing process dedicated to identifying, evaluating, and managing significant climate-related risks. Climate-related risks are fully embedded in SD Guthrie’s Group Risk Management Framework and treated in a similar manner to other risks.

Identification of Climate-related Risks

• Risks including climate-related risks are identified through risk identification, risk assessment and risk mitigation approach as well as continuous monitoring and inclusion at each division where identified significant risks are escalated to the Risk Management Committee and the Board.
• The Board and other committees convene at least 4 times a year to discuss and update strategic business matters, including climate-related matters.

Managing Climate-related Risks

• The Risk Management Committee and Sustainability Committee are responsible for ensuring sustainability and climate risks are managed by monitoring anticipated or reported impact on the Company’s operations.
• The Risk Management Committee and Sustainability Committee oversee the implementation of mitigation actions for identified sustainability and climate risks.
• The SD Guthrie Group Risk Management Framework adheres to the ISO31000:2018 standard on risk management, encompassing risk identification, analysis, evaluation, treatment, reporting, continuous communication, monitoring, and review.

Integration of Climate-related Risk Management

• Climate-related risks are integrated into the Company’s Risk Management framework to ensure the risks are properly addressed and comprehensive oversight is implemented.