We have a formal framework for risk management, which is designed to identify and quantify all risks to our business including climate-related risks. We collate our global environmental data and produce quarterly reports on our direct environmental impact, allowing the identification of climate change risks and opportunities related to our direct operations (consumption and waste).
The Board has ultimate responsibility for the risk strategy of the Group and for determining an appropriate risk appetite as well as the tolerance levels within which the Group must operate. The Board meets regularly throughout the year and will discuss climate-related issues and how they impact Jupiter as and when they arise.
The Audit and Risk Committee, chaired by a Non-Executive Director, and attended by all members of the Executive Committee, together with the Director of Compliance and the Head of Risk, oversees the risk and control framework within the Group and the independent monitoring and reporting of risk and controls, including climate change risks.
Risks are prioritised by the Risk Committee, which reviews the Group’s primary risk exposures (with consideration of impact and likelihood assessment and the effectiveness of existing controls) in the context of the Board’s tolerance thresholds to ensure that the governance arrangements within the Group are effective in the mitigation of risk.
The Risk and Finance Committee is made up of senior members of the organisation including the CFO, COO, Group General Counsel and Head of Risk. The committee reports into the Executive Committee and the Board, providing support on the establishment, implementation and maintenance of adequate risk management policies and procedures.
The Committee reviews the Group’s primary risk exposures (including exposure to climate change risk) in the context of the tolerance thresholds and ensures that the governance arrangements are effective in the mitigation of risk. The Committee is responsible for:
• Reviewing the Group’s risk management framework, risk appetite statement and risk tolerance limits as proposed by the Risk Department;
• Reviewing the effectiveness of the existing risk management policies and processes across the business, including compliance with such policies and processes and any remedial actions that may be required;
• Reviewing the Group’s accounting, treasury and tax policies and practices as proposed by the Finance Department; and
• Managing changes to the business (outside of core strategic and business changes) including regulatory and financial changes.
Our Stewardship Committee receives information on the environmental, social and governance risks impacting our portfolios, with a view to understanding the voting and engagement activities around these matters. Information from the Stewardship Committee is relayed to the CSR Committee, which is concerned with the wider CSR responsibilities of JFM plc and this helps to inform senior management and provide thereby helping to further enhance the senior management’s understanding of climate related risks and opportunities within our portfolios. The CSR Committee contains representatives of JFM’s Executive Committee, the Senior Independent Director and the Head of Governance & Sustainability.