41 Inizio Sustainability Report 2023 TCFD report continued A further layout on specific roles and Risk Management management processes, and we reputational risks and opportunities) and impact ratings combine to We integrate our processes reporting lines among our Board At Inizio, we are working on integrating expect this to be concluded within are considered across our direct result in a risk rating that is deemed for identifying, assessing, and and senior levels of management climate-related risks and opportunities the next reporting year. Through operations and supply chain. Moderate, High, or Critical, then risk managing climate-related risks and is provided below: into Inizio’s company-wide risk and this, sustainability matters, including owners are expected to take charge opportunities into our enterprise opportunity identification and those relating to climate change, are For each of the risks identified, of providing control effectiveness risk management process treated the same as other enterprise we assess both the likelihood of a ratings and information on how We consider climate-related risks Our Governance risks and opportunities. risk materializing, and the impact the climate-related risk is going and opportunities to be crucial associated with the risk. Each of to be monitored or mitigated, in informing and driving business Our processes for identifying and our five impact tiers is defined with mitigation plans being revised continuity to deliver our services to Board assessing climate-related risks by financial, operational, regulatory, every six months by the risk owners. clients. Therefore, we ensure that any and opportunities employee, and reputational climate-related risks we may face are Any climate-related risks faced by impact ranges. An example of the management of a identified, assessed, and responded Non-Executive Director our business units are identified, risk we have identified is the market to as part of our main Enterprise Risk (ESG Sponsor) assessed, and responded to, based on Climate-related risks which are risk of changing consumer behaviors Management (ERM) process. Within their risk materiality each year. The rated highly are consolidated and towards low-carbon products and our ERM process, identified climate- process is two-fold, where one major fed into the Group risk register and services. With a high magnitude of related risks are assessed and mapped arm of risk identification involves are considered by Inizio’s Board and financial impact upon assessment, we for likelihood and impact together Sustainability Committee each of our business unit’s agencies Audit Committee for oversight and have used levers such as switching to with all other business risks. We are and divisional leaders completing further guidance, which will be renewable energy and transitioning consistent in treating climate-related an enterprise risk assessment on outlined in the following sub-section. our fleet to low-carbon vehicles as a risks at business unit or Group level Head of ESG a rolling basis. The risks identified means to decarbonize our operations. the same as all other risks identified are reviewed by functional leaders, For climate-related opportunities, A second risk is emerging climate- within the Group. subject matter experts, and the Inizio is currently in the process of related regulations that we as a Group Risk and Compliance team, developing an Opportunity Level Risk business need to be aligned to. High-impact risks, including any which consolidates the risks that Assessment process which will, in due During the reporting period, we identified climate-related risks, are Sustainability Champions Network feed into the Group risk profile. course, enable Inizio to capture and worked with third-party consultants held in the form of a Principal Risk assess potential client opportunities and internal stakeholders to improve Dashboard, which is then presented to To complement this, we undertook including those relating to climate. our climate-related processes and the Board’s Audit Committee to review Inizio Medical Inizio Inizio Engage Inizio a climate-related scenario analysis disclosures in order to work towards and monitor mitigation measures. Sustainability Evoke Sustainability Advisory to inform our climate risk and Our evolving processes for alignment, on a voluntary basis, with Forum Sustainability Forum Sustainability opportunity identification and managing climate-related the ISSB’s IFRS S2 Standard. We have Strategy Forum Forum assessment. Climate-related risks risks and opportunities also started to prepare for reporting As detailed in the Risk Management such as extreme weather events To monitor and control climate- against other emerging ESG standards section, we are working on integrating (like flooding, wildfires, and extreme related risks on an ongoing basis, and regulations (e.g., CSRD). climate-related risks and opportunities heat), transition risks/opportunities risk owners are identified to hold into Inizio’s company-wide risk (like technology, market, legal, and this responsibility. If the likelihood