CEO Today - November 2022

Fast forward to 2022 and sustainability is now a major corporate decisionmaking driver, fuelling growth through investments, innovation and acquisitions. International governments are responding to the urgency of our climate challenge, seen through global collaboration, including setting out climate action targets in the Paris Agreement. What was previously deemed a ‘nice to have’ in the eyes of CFOs and finance teams is now an integral part of our role in future-proofing capital and aiding risk management solutions, whilst positively impacting investor perceptions. We’re at the convergence of two core sectors, sustainability and finance teams, that need to positively co-exist for the benefit of the planet, along with future growth as businesses. Whilst this relationship will take time to propagate, for large corporates, adopting and disclosing their sustainable practices is an imperative. We are witnessing flourishing climate-related disclosure regulations worldwide. The UK’s largest traded and private companies must disclose climate-related financial information through the Task Force on ClimateRelated Financial Disclosures (TCFD) for financial years starting on or after April 2022. In March and April 2022, three major sustainability disclosure proposals were released: the American financial watchdog, the SEC, proposed a new rule that would require public companies to provide detailed reporting of their climate-related risks, emissions, and net-zero transition plans; in Europe, EFRAG released guidance on a range of sustainabilityrelated disclosure requirements, including the European Sustainability Reporting Standards; additionally, the International Sustainability Standards Board (ISSB), which was introduced with the sole purpose to streamline ESG disclosures on a global scale, disclosed its General Requirements for Disclosure of Sustainability-related Financial Information and Climaterelated Disclosures drafts. We will not analyse here how those requirements converge or diverge but will simply note that the TCFD framework forms a shared input to those requirements and proposals. However, a 2021 report from the Climate Disclosure Standards Board (CDSB) identified that only 18% of EU businesses are providing clear disclosure of their resilience to different climate scenarios. Time is up for laggards who aren’t following the sustainability status quo. At H&H Group, sustainability is at the cornerstone of our Group decisions and operations. We know we can achieve profitable business growth while at the same time looking after our people, driving strong and transparent governance and reducing our footprint on the planet to ultimately make a positive impact on society. It’s our bread and butter and we’re now putting our ethos into action and seeing the success play out: in 2022, we drew down a new loan facility which is a sustainability-linked facility with three ESG performance targets. In the new bank syndicate formed after this new loan facility draw-down, quite a few international banks which are keen to participate in ESG-related financing became our cornerstone lenders. We have also attracted more ESG-focused investment funds to be our institutional shareholders. Within the Group, we have established an ESG Committee with the purpose to better position our Group for the management of sustainability issues and enhance the quality of disclosure in relation thereto. We’re currently in the process of developing clear and ambitious carbon emission reduction targets in line with the Science Based Targets Initiative and are mapping our climate-related risks and opportunities with the aim to further comply with the TCFD. We are also prioritising our move towards 100% recyclable, biodegradable or compostable brand packaging. Casting the net wider, we know that our sustainability impact doesn’t stop at our carbon footprint, and we’re taking considerable action to promote the benefits of a healthy lifestyle through community and employee investment. Honouring human rights and fairness throughout our group and brand-level disciplines is THE DISRUPTORS vision & strategy

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