A.G. Barr (BAG) 2024年年度報告「LSE」.pdf

《A.G. Barr (BAG) 2024年年度報告「LSE」.pdf》由會員分享，可在線閱讀，更多相關《A.G. Barr (BAG) 2024年年度報告「LSE」.pdf（200頁珍藏版）》請在三個皮匠報告上搜索。

1、ANNUAL REPORT AND ACCOUNTS 2024I NTR O D U C TI O NA.G.BARR is a UK-based branded multi beverage business focused on growth and the creation of long-term shareholder value.Established almost 150 years ago in Scotland,now operating across the UK and with export markets throughout the world,we strive

2、to grow our business both organically and through targeted acquisition.Employing over 1,000 people across four business divisions and nine UK locations,we are proud to be a responsible business that listens to our consumers,builds lasting customer relationships,takes care of our people,values divers

3、ity,gives something back to our communities and works to minimise our environmental impact.Ambitious and value-driven,with strong consumer focus,we are brand owners and builders,offering a diverse and differentiated portfolio of brands that people love.For more information visit our website agbarr.c

4、o.ukOur locations Offices Cumbernauld Head Office;Bolton(Barr Soft Drinks);Camden(FUNKIN and MOMA);Leeds(Boost)Barr Soft Drinks Factories Cumbernauld;Milton Keynes;Forfar Distribution centres Cumbernauld;Milton Keynes Distribution depots Dagenham;Moston;WednesburyFor more information visit our websi

5、te agbarr.co.uk1CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTStrategic Report Our purpose,values and culture 1Highlights of the year 2Investment case 3Our business and brands 4Chairs introduction 6Our business model 8Our strategy 10Financial key performance indicators 12Non-financial ke

6、y performance indicators 13Chief Executives review 14Our strategy in action 18Responsible business report 20Financial review 44Risk management 48Corporate Governance Board of Directors 56Corporate Governance Report 58Audit and Risk Committee Report 70Directors Remuneration Report 74Directors Report

7、106Statement of Directors Responsibilities 112 AccountsIndependent Auditors Report to the members of A.G.BARR p.l.c.113Consolidated Income Statement 122Statements of Financial Position 123Statement of Comprehensive Income 124Statement of Changes in Equity 125Cash Flow Statements 127Notes to the Acco

8、unts 128Glossary 180Reconciliation of Non-GAAP Measures 181Notice of Annual General Meeting 185Corporate GovernanceOur section 172(1)statement describing how the directors have had regard to the matters set out in section 172(1)(a)to(f)when performing their duties under section 172 of the Companies

9、Act 2006 is set out in the Corporate Governance Report on pages 61 to 69 and is incorporated by reference into this Strategic Report.O U R P U R P O S E,VA LU E S A N D C U LT U R E I N TH I S R E P O R TOur purpose:To create value,with values for our shareholders,consumers,customers and for society

10、 as a whole.We do this by:Building great brands.Our business purpose has always been underpinned by strong values.We believe that how we act reflects who and what we are.We strive to behave responsibly across our four core values.For nearly 150 years we have developed a positive,results-driven and s

11、upportive culture.As we grow our business organically and through acquisition,it is important that we retain the entrepreneurial spirit of the new and exciting additions to our Group,while also ensuring that we continue to value and nurture the unique essence of what makes A.G.BARR a great business

12、to be part of.For more information on our people,culture and employee values see pages 23 to 27.Acting with integrityRespecting the environmentSupporting healthy livingGiving backO U R FO U R C O R E VA L U E S:2A.G.BARR p.l.c.Annual Report and Accounts 2024H I G H LI G HT S O F TH E Y E A RRevenue4

13、00m+25.9%Employee engagement 76%Women in Leadership 42%Adjusted profit before tax*50.5m+16.1%Full year dividend*15.05pNo Time To Waste environmental sustainability programme90%CO2 reduction from each of our new biomethane-fuelled trucksFor more information on our KPIs see page 13*Items marked with a

14、n asterisk are non-GAAP measures.Definitions and relevant reconciliations are provided in the Glossary on pages 180 to 184.Profit before tax51.3m+15.5%Acquisitions during the year1tropical drinks brand RIOBasic earnings per share(EPS)34.59p+13.5%3CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC R

15、EPORTFind out more about our stakeholder engagementon pages 61 to 65 I N V E S TM E N T C A S E0101Ambitious with value-driven strategy0202Strong core brands with challenger mentality0303Clear growth opportunities0404Disciplined capital allocation 0505Responsible and sustainable 0606Financial streng

16、thWhy invest in us?FIND OUT MORE ABOUT OUR COMPETITIVE ADVANTAGESOur business model can be found on pages 8 and 94A.G.BARR p.l.c.Annual Report and Accounts 2024O U R B U S I N E S S A N D B R A N D SWe are brand owners and builders,offering a diverse and differentiated portfolio of brands that peopl

17、e love.Barr Soft Drinks Boost DrinksAt our core is Barr Soft Drinks,brightening peoples lives with refreshingly different soft drinks.Whether its the iconic IRN-BRU,launched in 1901 and still going strong today,the vibrant RUBICON fruit based brand or the unique range of BARR flavours,Barr Soft Drin

18、ks brands offer people a choice of great tasting products and bring exciting innovation to the market,available across multiple channels.The BOOST business is always looking for new trends and to appeal to the evolving tastes of drinkers.Enjoying a very strong position within the UK independent reta

19、il channel,BOOST offers an exciting range of flavours across several functional drinks categories Energy Stimulation,Sport and Iced Coffee.To further strengthen the Boost businesss portfolio we acquired the tropical fruit drinks brand RIO in 2023.Established1875Employees931Established2006Acquired202

20、2Employees355CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTFUNKIN MOMAFUNKIN operates within the exciting and dynamic cocktail market.Real fruit means authentic taste and FUNKIN believes that to shake the best cocktail you have to use the best ingredients.Thats why they use the best frui

21、t to create their premium products,famous amongst top bartenders.As the UKs number 1 cocktail brand FUNKIN provides innovative and unique pures,syrups,mixers and a growing ready to drink cocktail range,for behind the bar and at home.Making ordinary moments extraordinary.MOMA uses a blend of the high

22、est quality wholegrain jumbo oats that give its oat drinks a full-bodied flavour and its porridge a distinctively creamy texture.MOMA believes in crafting simple,natural ingredients into food and drink that tastes awesome,because a little extra skill and care turns good for you into great.Establishe

23、d1999Acquired 2015Employees47Established2006Acquired2022Employees174Business divisions17Number of brands1,030Employees 9UK sites INFORM ATION ON OUR FULL PORTFOLIO OF BR ANDScan be found at www.agbarr.co.uk/our-brands 6A.G.BARR p.l.c.Annual Report and Accounts 2024C H A I R S I NTR O D U C TI O NI a

24、m pleased to report that A.G.BARR has enjoyed a further year of significant progress across multiple fronts,in addition to delivering an excellent financial performance.Mark Allen OBEChairOverviewRevenue grew by 25.9%year-on-year and we finished the year with adjusted profit before tax*of 50.5m,16.1

25、%ahead of the prior year.Despite continued global macro uncertainty and volatility we have navigated these challenging times well.Our long-term growth strategy has been well executed during the year.We have continued to invest in our brands,people and infrastructure and have made good progress again

26、st our medium-term margin development plans,following the first full year of ownership of the higher growth but currently lower margin Boost and MOMA businesses.Highlights during the year included:Strong revenue and volume growth across our soft drinks portfolio,with a standout performance from the

27、Rubicon brand Good progress on a number of fronts in the first full year of ownership of the Boost business alongside the acquisition of the Rio tropical fruit drinks brand Margin rebuild plan well underway,accompanied by strong cash generation and balance sheet strengthOur performance has been deli

28、vered by an excellent team of people across the whole Group,who have worked hard in the execution of our winning strategy.DividendThe Board is pleased to maintain its progressive dividend policy and recommends a final dividend of 12.40p per share to give a proposed total dividend for the full year o

29、f 15.05p per share.This represents year-on-year growth of 14.9%(2022/23:13.10p).The final dividend is payable on 7 June 2024 to shareholders on the Register of Members at the close of business on 10 May 2024.The ex-dividend date is 9 May 2024.7CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPO

30、RTBoardAs planned,after 62 years with the business,Robin Barr stepped down from the Board in May 2023.We were pleased to welcome Julie Barr and Louise Smalley as Non-Executive Directors during the course of the year.In August 2023,after over 21 years as CEO,Roger White announced his intention to ret

31、ire from the business.He will step down from the Board at the end of April 2024,remaining available until the end of July to support a smooth leadership transition.Roger has led the transformation of A.G.BARR from a regional soft drinks business into the highly successful multi-beverage,branded comp

32、any that it is today and he has been instrumental in delivering significant value to shareholders,stakeholders and employees.It has been a great pleasure to work with Roger and on behalf of the Board I would like to thank him for the huge contribution he has made to A.G BARRs success over two decade

33、s as CEO and to wish him well for the future.I was delighted to communicate earlier this year that Euan Sutherland will join as the Groups CEO with effect from 1 May 2024.Euan has a wealth of consumer goods experience,an excellent track record in delivering sustainable growth and a history of improv

34、ing efficiency and profitability through major transformation programmes.Euan is well placed to lead A.G.BARR through the next exciting phase of its development and to ensure the continued long-term success of the business.ResponsibilityOur Environmental,Social and Governance Board sub committee is

35、now well established and providing important oversight and direction for the Group,with a particular focus over the past 12 months on our environmental sustainability progress and our net-zero roadmap.We continue to make good progress across our broader responsibility agenda.Highlights during the co

36、urse of the year include FUNKINs achievement of B Corp status*,validating its high social and environmental standards,as well as external recognition,received from both customers and industry bodies,of the progress we have made.Further details can be found within our Responsible Business Report.Peop

37、le and cultureI have previously referenced A.G.BARRs unique and positive culture.I am pleased to update shareholders that our levels of employee engagement as measured by our Everyone Barr None survey,have risen further over the last 12 months.This reflects the steps we continue to take,supporting o

38、ur colleagues across areas such as diversity and equality,reward,mental health,learning and development as well as workplace flexibility.We continue to build on our unique culture,protecting and supporting the individuality of our business divisions,people and brands.Over the course of the year,we h

39、ave been encouraged by the open and constructive feedback received at various Board engagement sessions which now informs much of our thinking,planning and future actions.We are equally as proud of our values and behaviours as we are of our financial performance.ProspectsLooking ahead,while we opera

40、te in what is likely to remain a volatile environment,I am confident that we have a Group with growth momentum,market-leading brands,a strong margin rebuild plan which is well underway and a long-term strategy which will deliver superior shareholder returns.Mark Allen OBEChair26 March 2024*Items mar

41、ked with an asterisk are non-GAAP measures.Definitions and relevant reconciliations are provided in the Glossary on pages 180 to 184.O U R F I N A N C I A L P E R FO R M A N C EBasic Earnings per shareReported profit attributable to equity holders divided by weighted average number of shares in issu

42、e.Dividend Total dividend declared for the full year excluding any special dividend.202434.59p202330.47p+13.5%202415.05p202313.10p+14.9%8A.G.BARR p.l.c.Annual Report and Accounts 2024O U R B U S I N E S S M O D E LW H AT W E D OOur business model aims to be simple,effective and profitable.We makeWe

43、behave responsiblyWe moveWe pride ourselves on our safe and effective manufacturing capabilities.We produce high quality brands across our well-invested and efficient Barr Soft Drinks production sites in Cumbernauld and Milton Keynes alongside our water production facility at Forfar.With glass,carto

44、n,plastic and can capability,we produce 99%of Barr Soft Drinks products in-house.We directly source many of our key raw materials,with a particular competency in exotic fruit,develop our own recipes and design all our packaging all underpinned with the aim of reducing our environmental impact and su

45、pporting continuous improvement.With our own fleet of more than 60 vehicles,as well as long-standing relationships with our key distribution partners,our business model supports our drive to deliver great service to all our customers.Operating across multiple routes to market,we have a well establis

46、hed and efficient distribution network servicing our diverse sales channels.Our operating model is both flexible and agile.We take our responsibilities seriously and continuously strive to be a sustainable and responsible business.In particular we have an important role to play in the transition to

47、a low carbon and climate-resilient economy and this is becoming an increasingly important and integral part of our overall A.G.BARR business model.Our responsible behaviour also encompasses our management of risk,ensuring that we are thinking ahead and taking mitigating actions where appropriate.We

48、have a robust risk management framework embedded across the business,allowing a wide range of employees at different levels to contribute.FUNKINBoostBarr Soft DrinksMOMAPartial in-sourced production by Barr Soft DrinksPartial in-sourced production by Barr Soft Drinks9CORPOR ATE GOVERNANCEFINANCIAL S

49、TATEMENTSSTR ATEGIC REPORTWe marketWe sellShareholders 14.7m of dividends paid during the year17.8m re-invested in long-term business growth through annual cash capital expenditure*Employees 56.6m paid in salaries and wages to our employees across the UKSuppliers and customers100+suppliers directly

50、contracted and working closely with thousands of customersUK economy and communities 96%of our revenue is generated in the UK,and through our 11.7m corporation tax and 6.3m national insurance payments to the government,we continue to play our part in growing the UK economy while also donating over 7

51、8k to good causes across our communities*See page 127W E C R E AT E VA L U E,W I T H VA L U E S Our business model has proven successful for almost 150 years and continues to create and deliver value,with values,to a wide range of stakeholders.From IRN-BRUs signature style of maverick adverts to FUN

52、KINs unique social engagement,when it comes to marketing,innovating and building our brands we like to have some fun and to appeal to the widest possible range of consumers.Whether through mainstream advertising,digital and social media,sponsorship or supporting local community events,we use our cre

53、ativity and consumer insight to deliver distinctive and memorable brand building activity.Building long-lasting relationships with our customers across all our key markets is fundamental to our business.Whether its a large food retailer,a wholesaler,a regional restaurant group or a local independent

54、 shop,we work collaboratively with all our customers to understand their businesses and find winning consumer propositions in a practical and profitable way.More information on our responsible actions can be found on pages 20 to 43 and a full review of our principal risks is detailed on pages 49 to

55、54.10A.G.BARR p.l.c.Annual Report and Accounts 2024O U R S TR ATE GYConnecting with consumersBuilding brandsDriving efficiencyBuilding trustConsumer insight drives our business.Consumer preferences are changing and we take the time to listen,to understand and to respond proactively to ensure our por

56、tfolio of brands constantly develops to meet our consumers changing needs.At an A.G.BARR Group level this insight is a key factor in how we identify potential acquisition targets.We monitor consumer trends closely,specifically in relation to fast moving packaged consumer goods,identifying developmen

57、ts in the beverage sector as well as emerging or high growth categories of interest.At a business division level these consumer trends underpin our approach to innovation,including product,packaging and ingredients,as well as our consumer engagement and marketing activities.We are brand owners and b

58、uilders,growing our diverse and differentiated brand portfolio both organically and through acquisition.For our existing portfolio of powerful brands we do this in a number of ways we innovate,we grow brand awareness,we develop loyalty through consumer engagement activity,and we build our product di

59、stribution through effective sales execution with customers.We are ambitious,with a proven track record of successfully acquiring new brands.Our core competency lies in soft drinks,however we have broadened our brand portfolio in recent years with a particular focus across the multi-beverage landsca

60、pe.We continually strive for greater effectiveness across our business,investing for growth,efficiency and sustainability,while also ensuring strong financial controls.From investment in new software solutions to an increasing focus on digital development and automation,as our business develops we a

61、re committed to driving continuous improvement across our processes and infrastructure.And in our Barr Soft Drinks business division we continuously invest in our asset base,driving operational improvements and flexibility through our capital investment programmes,equipping us with some of the indus

62、trys most efficient operational capability.Building and maintaining long-lasting trust and successful relationships is central to our business and always has been.Our responsible behaviour over nearly 150 years has created a firm foundation,upon which we want to build further.Being a trusted busines

63、s that acts with integrity is fundamental to our stakeholder relationships from our consumers and customers to our suppliers and communities.Equally,as the world around us evolves,with climate change in particular becoming increasingly more pressing,our strategic choices are more than ever informed

64、and supported by our desire to do the right thing and to play our part in addressing the key issues facing the world and society.Our overarching purpose is to create value,with values for our shareholders,consumers,customers and for society as a whole.We do this by building great brands.Our strategi

65、c priorities bring this purpose to life and set out the steps we take to build a great business with great brands.Strategic prioritiesPurposeCORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORT11O U R K E Y R E S P O N S I B I L I T Y C O M M I TM E N T SBehaving responsibly for over 145 years

66、.We are proud of our brands and business.We are also proud of the positive contribution we believe we make to society.It is our belief that how we act reflects who and what we are.We act with integrityWe respect the environmentWe support healthy livingWe give backMore information on our responsible

67、actions can be found on pages 20 to 4312A.G.BARR p.l.c.Annual Report and Accounts 2024400.0m317.6m2024202338.6%40.3%2024202350.5m43.5m2024202318.7%18.0%2024202315.4%17.1%2024202312.3%13.6%2024202348.5m35.9m2024202334.59p30.47p2024202315.05p13.10p20242023Revenue400.0m25.9%Adjusted operating margin*12

68、.3%(130)bpsAdjusted EBITDA margin*15.4%(170)bpsReturn on capital employed*18.7%70bpsNet cash from operating activities48.5m35.1%Basic earnings per share34.59p13.5%Full year dividend per share*15.05p14.9%Gross margin*38.6%(170)bpsAdjusted profit before tax*50.5m16.1%F I N A N C I A L K E Y P E R FO R

69、 M A N C E I N D I C ATO R SCash generated in the ongoing regular business activities in the yearReported gross profit divided by revenue.Reported profit before tax after adjusting items.Adjusted operating profit and before the deduction of interest and taxation,divided by revenue.EBITDA(defined as

70、adjusted operating profit before depreciation and amortisation)divided by revenue.Reported profit before tax as a percentage of invested capital.Invested capital is defined as year end non-current plus current assets less current liabilities excluding all balances relating to any provisions,financia

71、l instruments,interest-bearing liabilities and cash or cash equivalents.Reported profit attributable to equity holders divided by weighted average number of shares in issue.Total dividend declared for the full year.The increase in value of revenue recorded relative to the prior year.Like-for-like re

72、venue growth*,which excludes the impact of the Boost acquisition,was 8.0%.More information on our performance can be found in our CEO Statement on pages 14 to 17 and in our Financial Review on pages 44 to 47.*Items marked with an asterisk are non-GAAP measures.Definitions and relevant reconciliation

73、s are provided in the Glossary on pages 180 to 184.13CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORT2.74.08.69.07.12024202320222021202076.0%75.0%75.0%75.0%77.0%20242023202220212020N/A42.0%38.0%41.0%39.0%39.0%20242023202220212020100%100%100%100%97.2%2024202320222021202010.7%7.1%5.1%Baselin

74、e year202420232022202143.0%38.0%33.0%Baseline year2024202320222021Accident incident rate 2.7Employee engagement76%Women in leadership 42%Non-hazardous waste diverted from landfill100%Improvement in water usage efficiency10.7%Carbon emission reduction across our operations 43%N O N-F I N A N C I A L

75、K E Y P E R FO R M A N C E I N D I C ATO R SNumber of accidents(RIDDOR)per 1,000 people relative to both our employees and agency workers.2023 includes Boost and MOMA data from the dates of acquisition.Further information is provided in our safety and wellbeing culture section on pages 23 to 24.N O

76、N-F I N A N C I A L K E Y P E R FO R M A N C E I N D I C ATO R SAs measured by our annual employee survey.Due to the impact of the pandemic,no survey was conducted in 2020/21.2023 excludes Boost and MOMA which were not part of the A.G.BARR Group at the time the survey was conducted.Number of females

77、 defined as leaders/senior managers at the close of the financial year.See page 26 for further information.Percentage reduction in total Scope 1 and Scope 2 greenhouse gas emissions versus 2021 baseline year using a market-based approach.2024 Scope 1 data provided in the SECR section on page 40 refl

78、ects a change in methodology not yet factored into the baseline year.To allow a like for like comparison with the baseline year,this KPI excludes the impact of the changed methodology.Including it would result in a 5%reduction against the baseline year.See page 40 for further information.KPI reset i

79、n 2021 following detailed analysis of our water footprint,our refreshed water strategy and action plan.Ratio of total water used relative to total litres of product produced.Further information is provided in our waste and water section on page 32.Quantity of non-hazardous waste from Company-owned s

80、ites diverted from landfill relative to total non-hazardous waste.In support of our responsibility commitments we measure a range of non-financial KPIs as set out below:Find out more about our responsibility commitments in our responsibility reportMore on page 2114A.G.BARR p.l.c.Annual Report and Ac

81、counts 2024C H I E F E X E C U TIV E S R E V I E WOver the past 12 months we delivered an excellent financial performance and made significant progress across our strategic objectives.Roger WhiteChief ExecutiveOverviewI am delighted to report our results for the 52 weeks ended 28 January 2024.As thi

82、s is my final annual reporting of A.G.BARR results I wanted to take the opportunity to say how exceptionally proud I am of all the teams across the Group who make this such a unique and special business.Over the past 12 months we have delivered an excellent financial performance and made significant

83、 progress across our strategic objectives.We have navigated the challenges of persistent inflation,a volatile regulatory environment and changing consumer habits,delivering well against our priorities.The following financial metrics quantify our strong performance:Revenue 400.0m 25.9%Adjusted profit

84、 before tax*50.5m 16.1%Reported profit before tax 51.3m 15.5%Net cash at bank*53.6m 1.3%Basic earnings per share 34.59p 13.5%Definitions of adjusted items are provided on page 180.Strategic objectives We are driven by our overarching Group purpose to create value with values underpinned by our consi

85、stent strategic priorities:Connecting with consumers Building brands Driving efficiency Building trustDuring the year we leveraged our capabilities to drive superior growth across the Group,both in value and volume.In this period of significant inflation during which volume growth has been hard to c

86、ome by,our performance is all the more pleasing.15CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTWe continued to invest across the Group in support of our long-term organic revenue and profit growth ambitions.We have also benefited from the growth and diversification that our recent acqui

87、sitions have brought to the Group,further reinforcing the importance of such value-adding acquisitions as part of our overall growth strategy.Our growing brand portfolio is strongly aligned with current consumer and category trends,providing choice for all.Soft drinks market Across the period the to

88、tal UK soft drinks market increased in value by 8.3%while volumes declined by 2.9%.These trends were similarly reflected in both the Carbonates and Stills sub sectors.The high levels of price inflation prevalent across the market in 2022 continued into 2023,however the scale of these inflationary in

89、creases eased somewhat in the latter part of the year.Within soft drinks market sub categories,while lemonade and mixers continued to decline,Energy and Sports once again significantly outperformed the market,with strong gains in both value and volume terms.We are pleased to report that the Groups s

90、oft drinks portfolio,supported by our brand building and pricing strategy,delivered both value and volume market share gains in the period.Source:Circana Total Soft Drinks Market 52 weeks to 27 January 2024.Cocktail marketThe on-trade channel remained variable across the year,with late night venues

91、in particular experiencing reduced footfall in the context of consumers feeling the impact of increased cost of living pressures.Despite these tougher market conditions,the value of cocktails remained flat at 688m and cocktail penetration increased one in five(9.4m)on-premise GB consumers now drink

92、cocktails out of home,a 0.2%increase on the prior year.Growth of ready to drink(RTD)products has continued at pace within the UK take home market,now worth 544m.Cocktails have been the main growth driver within the total RTD category,increasing in value by 19.2%,more than four times the rate of the

93、RTD category as a whole.FUNKIN remains the number one RTD cocktail brand within this growing sector.Source:CGA Mixed Drinks Report Q3 2023;Nielsen Pre-Mixed Alcoholic Drinks Total Coverage Data MAT 27/01/2024Plant-based milk marketThe value of the plant-based milk market grew year-on-year by 1.2%wit

94、h volumes down 8.6%and is now worth 369m.Oat milk continued to be the key growth driver in the category with volume growth of 2.9%and value sales up 12%,compared to value declines in almond(down 11%),soya(down 7%),and coconut(down 11%)milks.Oat milks share of the total plant-based milk market increa

95、sed to 59%,up from 53%in the previous year,with 21%of UK households now purchasing oat milk.MOMA grew significantly ahead of the total plant-based milk market with sales up 37%,driven by its specific focus on the growing oat milk sub category,its strong brand momentum as well as distribution gains.S

96、ources:Nielsen Total Market Plant-Based Milk 52 weeks to Dec 23;Kantar UK Household Penetration 52 weeks ending 02/11/2023.Porridge marketThe value of the total porridge market grew 13%versus the prior year with volumes down 0.7%and is now worth 249m.All porridge subcategories were in value sales gr

97、owth,with the convenience-focused pots segment showing the fastest growth,up 18%.MOMAs porridge pot range grew ahead of the market,up 20%in value driven by strong sales momentum and distribution gains in large multiple retailers.Source:Nielsen Total Porridge 52 weeks to Dec 23.O U R F I N A N C I A

98、L P E R FO R M A N C ERevenueThe increase in value of revenue recorded relative to the prior year.Adjusted profit before tax Adjusted profit before tax is reported profit before tax after adjusting items.2024400.0m2023317.6m+25.9%202450.5m202343.5m+16.1%16A.G.BARR p.l.c.Annual Report and Accounts 20

99、24StrategyConnecting with consumers Consumer engagement has remained fundamental to the delivery of our strategy across the year.Our portfolio of brands appeals to a wide demographic of consumers and we employ a broad and varied range of activities to increase brand awareness,create excitement,build

100、 loyalty and offer choice.Across our soft drinks portfolio we have invested in a number of successful advertising and marketing campaigns,including a new IRN-BRU creative,“WIRE”,which engaged consumers in the great IRN-BRU taste debate,Rubicons successful“Made of Different Stuff”campaign,with a stro

101、ng social media focus,and Boosts“Lets Do This”consumer advertising programme,targeting growth across a range of channels.FUNKINs summer campaign“Its FUNKIN Time!”raised brand awareness with 18 to 34-year olds to 47%,while MOMAs“The Baristas Choice”out of home and digital advertising campaign promote

102、d the brands credentials as a high-quality oat drink perfect for both professional baristas and home coffee making alike.We believe sponsorship remains an important means of connecting with consumers.As such Rubicon RAW renewed its partnerships with GB Snowsports and the Boardmasters Festival,while

103、Boost continued its partnership with Leeds United Football Club,raising brand awareness with football fans and beyond.Building brands Brand building is at the heart of our growth strategy.Across the year we launched a number of innovative new products,created exciting flavours and limited editions,a

104、nd gained incremental customer distribution through effective sales execution within multiple channels.Our core soft drinks brands performed very strongly.IRN-BRU grew volume ahead of the market and delivered an 8%increase in sales revenue.IRN-BRU XTRA continued to grow,supported by two sell-out Tro

105、pical and Ice Cream limited edition flavours across the summer,reflecting consumers ongoing preference for great tasting,no sugar options.Energy&Sports continue to be the fastest growing subcategories within the UK soft drinks market,up 16.4%and 54.8%respectively in value terms.Boost brought strong

106、incremental sales to the Sport drinks market with its Raspberry&Mango limited edition innovation,delivered successful new product development to the 500ml can market with Blood Orange and Raspberry Crush and reinvigorated the brands citrus proposition with the introduction of 250ml Lemon&Lime.We now

107、 have greater scale and presence in energy as we combine the Boost brand,Rubicon RAW Energy and our new energy innovation,PWR-BRU.The Rubicon brand had an excellent year,with sales up 15%,driven by growth across the full brand portfolio.Rubicons exotic fruit proposition and its vibrant and energetic

108、 brand positioning are proving a winning combination,with consumers keen to experience flavours and products that differ from the norm.FUNKINs innovation progressed at pace.From new additions to its RTD range,including Margarita,Aperitivo Spritz and a non-alcoholic Passion Fruit Martini,to its new p

109、remium Double Shot bar strength RTD cocktails in cans,the brand remains the UKs Number 1 cocktail choice behind the bar and at home.MOMA continued to build its position in the plant-based oat drink market and within thebreakfast porridge category.With the range growing to include an organic oat milk

110、 product,and the development of a new professional range designed specifically for the speciality coffee sector,MOMA is a growing challenger brand with strong British farming and craft oat credentials.In support of our brand-building strategy we were pleased to acquire the tropical fruit drinks bran

111、d Rio for a total consideration of 12.3m in October 2023.Rio has been marketed,sold and distributed on an exclusive licence basis by Boost Drinks since 2021.The acquisition allows us to realise the benefits of full brand ownership,support Rios continued growth and accelerate our manufacturing in-sou

112、rcing plans to access margin benefits.C H I E F E X E C U TIV E S R E V I E W CO N TI N U ED17CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTDriving efficiency 2023 was a year of further investment in efficiency and continuous improvement across the business.Our multi-year capital investm

113、ent programme at our Cumbernauld site is progressing to plan in its second year.This asset refresh programme will deliver faster and more efficient production lines,more dual production capability with our Milton Keynes site,providing greater resilience and flexibility,as well as contributing to our

114、 net-zero roadmap,through lower emissions and reductions in packaging weights.Following the acquisition of the Boost business in December 2022,we have commenced the first phase of our planned manufacturing in-sourcing activity.This in-sourcing,alongside our overarching supply chain capital investmen

115、t programme,brings operational leverage and synergy benefits supporting our margin rebuild plans.Building trust It has been a further year of progress across our responsible business priorities and commitments.The FUNKIN business was delighted to achieve B Corp accreditation,a further significant mi

116、lestone in FUNKINs development,certifying its high standards of social and environmental performance.Our No Time To Waste environmental sustainability programme continued to drive the business towards the achievement of our science-based targets and net-zero commitment.Tangible progress across the y

117、ear included new bio-fuelled vehicles and further increases in recycled content across our packaging.This progress received welcome external validation through an improved rating(A)from the Climate Disclosure Project,widely considered to be one of the most comprehensive independent environmental dat

118、a sets available.We continued to support our people across a variety of areas both professionally and personally from learning and development opportunities to assistance with financial planning and we are pleased to report that our employee engagement,measured by our annual survey,saw Group-wide en

119、gagement increase to 76%,versus an industry benchmark of 69%.(Source:WorkL)Building trust also extends to our customers and suppliers with whom we aim to build strong collaborative relationships.As an example,Boost celebrated its 20th anniversary in Northern Ireland with a retailer recognition Alway

120、s in your Corner campaign,and we were delighted to achieve“Best Overall Service”at the Scottish Wholesale Associations awards ceremony our 12th win in 14 years.*Items marked with an asterisk are non-GAAP measures.Definitions and relevant reconciliations are provided in the Glossary on pages 180 to 1

121、84.OutlookI would like to take the opportunity to thank all of the teams across the Group who have worked hard to deliver this excellent overall performance.It has been a privilege to lead the business and work alongside incredibly talented people.We closed the year in strong financial health and wi

122、th our brands and business poised for further growth.I have every confidence that our strategy,alongside our results-driven teams,unique brands and well-invested assets will continue to support our growth and success in the years ahead.Roger WhiteChief Executive26 March 2024Details of all our respon

123、sibility commitments,goals and activities can be found on 20 to 43 Examples of our strategy in action can be found on 18 to 19 18A.G.BARR p.l.c.Annual Report and Accounts 2024O U R S TR ATE GY I N AC TI O NNew IRN-BRU“WIRE”ad Our latest IRN-BRU advert hit screens in March,another movie parody focuse

124、d on the great IRN-BRU taste debate.Connecting with consumers Boost and RIOSuccessful initial in-house manufacturing of Boost and RIO brands.Driving efficiencyWinning with our customers Best Overall Service for Barr Soft Drinks at the Scottish Wholesale Associations awards ceremony our 12th win in 1

125、4 years.Building trustFUNKIN Innovates New Double Shot bar strength cocktails.Building brandsB CorpFUNKIN achieved B Corp status.Building trustMOMANew MOMA organic oat milk.Building brandsMore information on our strategy see 10 to 11 19CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORT19We u

126、nleashed the PWR of BRU A bold new energy brand from IRN-BRU.Building brandsAward-winning innovation Rubicon Rose Lemonade,a Silver winner at The Grocer magazines annual New Product and Packaging Awards.Building brandsBarr Soft Drinks investmentBarr Soft Drinks 30m capital investment programme on tr

127、ack.Driving efficiencyRubicon Successful new Made of Different Stuff campaign.Connecting with consumers 20A.G.BARR p.l.c.Annual Report and Accounts 2024We are pleased to introduce our most up to date Responsible Business Report which sets out our ambitions,progress and future plans related to our re

128、sponsibility agenda.Our approach and narrative remain consistent.The report also contains updates and highlights on what has been achieved over the past 12 months.We are proud of our brands and business.We are also proud of the positive contribution we believe we make to society.It is our belief tha

129、t how we act reflects who and what we are.For almost 150 years weve been brand owners and builders,offering a diverse and differentiated portfolio of brands that people love and our business has grown as a result.The continued financial strength of our business is important not only to our employees

130、 and our shareholders,but also on a broader basis,where our performance positively impacts a wide range of stakeholders and the UK economy.Our overarching business purpose is to create value,with values for our shareholders,consumers,customers and for society as a whole.Our values include a commitme

131、nt to behave responsibly.Our responsibility agenda has always been woven into the fabric of our business and,in todays world,as we grow and develop,its more important than ever that we play our part in addressing the key issues facing society,such as the need to tackle the impact of climate change.W

132、e are also mindful that our actions can contribute towards global improvements.The 2030 Agenda for Sustainable Development,adopted by all United Nations Member States in 2015,provides a shared blueprint for peace and prosperity for people and the planet,now and into the future.At its heart are the 1

133、7 Sustainable Development Goals(SDGs),which are an urgent call for action by all countries developed and developing in a global partnership.R E S P O N S I B LE B U S I N E S S R E P O R T Behaving responsibly for almost 150 years.U N I T E D N AT I O N S S U S TA I N A B L E D E V E LO P M E N T G

134、OA L SWhile there will be actions we take that contribute both directly and indirectly to many of the SDGs,we have focused our SDG connections where we believe we can most directly play our part.These are:Decent work and economic growthPromote sustained,inclusive and sustainable economic growth,full

135、 and productive employment,and decent work for all Climate actionTake urgent action to combat climate change and its impactsResponsible consumption and productionEnsure sustainable consumption and production patterns Gender equality Achieve gender equality and empower all women and girlsGood health

136、and wellbeingEnsure healthy lives and promote wellbeing for all at all ages21CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTO U R K E Y R E S P O N S I B I L I T Y C O M M I TM E N T SWe focus our specific responsibility goals and commitments on those areas where we believe we can make th

137、e greatest positive economic,environmental and social impact,supporting our contribution to a sustainable future for all.We also engage with a wide range of stakeholders,as set out on pages 61 to 65,to ensure that our priorities are aligned.As such,behaving responsibly at A.G.BARR is underpinned by

138、four key commitments which we believe to be material matters to both our business and our key stakeholders:*Further information on employee engagement and women in leadership is provided on page 13 within the non-financial KPI section*Science-based target as approved by Science Based Target Initiati

139、ve(SBTi).*Net-zero achievement in accordance with SBTi requirements.Reductions are targeted across Scope 3 emissions associated with purchased goods and services and upstream and downstream transport and distribution.See page 39 for more information.Note:Goals below stated in calendar years.We act w

140、ith integrityWe respect the environmentWe support healthy livingWe give backKey focus areasKey focus areasKey focus areasKey focus areas Safety and wellbeing Employee engagement Responsible policies and practices Carbon reduction Packaging Water and waste Sustainable sourcing Calorie reduction Respo

141、nsible advertising and marketing Labelling Community engagement Charity partnership Employee volunteeringLong-term goalsLong-term goals Long-term goalsLong-term goalsAccident incident rate Zero work-related reportable accidentsEmployee engagement*2025 Goal:80%Women in Leadership*2025 Goal:45%Never a

142、gain send non-hazardous waste to landfillCarbon emission reduction across our own operations(Scope 1&2 emissions market-based approach)*2030 Goal:60%reduction from a 2020 base year 2035 Goal:90%reduction from a 2020 base yearCarbon emission reduction across our wider supply chain(Scope 3 emissions)*

143、2030 Goal:25%reduction from a 2020 base year 2050 Goal:90%reduction*from a 2020 base yearImprovement in water usage efficiency 2025 Goal:10%improvement from a 2020 base yearRecycled PET content 2025 Goal:Full portfolio 100%rPETTo continue to advertise responsibly,offer a wide range of pack sizes to

144、assist with portion control and,by providing clear nutritional information,enabling our consumers to make informed choices.To support good causes across our communities,through financial donations and by increasing awareness and supporting fundraising and volunteering across our own teams.22A.G.BARR

145、 p.l.c.Annual Report and Accounts 2024Non-financial information statement The information presented here and throughout the report(as cross-referenced in the accompanying table),complies with the requirement under sections 414CA and 414CB of the Companies Act 2006 to provide information on certain n

146、on-financial matters.Our Responsible Business Report provides the required information in relation to content on environmental matters,our employees,community issues and social matters,as well as setting out our non-financial metrics.Our business risks are included within our Risk Management section

147、.The Responsible Business Report also complies with the Streamlined Energy and Carbon Reporting(SECR)requirements as required by the Companies(Directors Report)and Limited Liability Partnerships(Energy and Carbon Report)Regulations 2018.We have complied with the requirements of Listing Rule 9.8.6R b

148、y including climate-related financial disclosures consistent with the Task Force on Climate-related Financial Disclosures(TCFD)recommendations and recommended disclosures,except for Metrics and Targets B given we are unable to disclose Scope 3 emissions for the current year.We have also complied wit

149、h the requirements of the Companies(Strategic Report)(Climate-related Financial Disclosure)Regulations 2022 (SI 2022/31)and the Limited Liability Partnerships(Climate-related Financial Disclosure)Regulations 2022(SI 2022/46),collectively referred to as CFD thereafter.It is the Groups policy to condu

150、ct all of its business in an honest and ethical manner.It is committed to acting professionally,fairly and with integrity in all its business dealings and relationships wherever it operates.The Group is a UK Real Living Wage accredited employer.and reviews and approves the Groups ABC Policy on an an

151、nual basis.No bribery and corruption issues arose during the year.There is currently no specific human rights policy in place however our Supplier Code of Conduct,available on the Group website,sets out the minimum standards we require our key suppliers to meet,including human rights,and forms part

152、of their contractual commitment to us.As a UK business,we comply with the full spectrum of employee protection legislation.We believe our existing policies ensure the rights of our own employees are respected fully and our robust supplier controls provide assurance when considering human rights impa

153、cts beyond our direct control.The Group publishes its Modern Slavery Act Transparency Statement annually.This explains the steps that we take to seek to ensure that there are no incidents of modern slavery within the business and our supply chain,in accordance with the UK Modern Slavery Act 2015.The

154、 Board reviews the Groups operational,legal and compliance framework to prevent modern slavery in its supply chain,which includes employee training,contractual terms and conditions,and due diligence processes.The Groups Anti-bribery and Corruption Policy(ABC Policy),available on the Group website,em

155、phasises the Groups zero tolerance approach to bribery and corruption.It sets out the Groups responsibilities,and of those working for it and parties acting on its behalf,in observing and upholding its position on bribery and corruption in compliance with applicable laws,and provides information and

156、 guidance to those working for the Group and parties acting on its behalf on how to recognise and deal with bribery and corruption issues.The ABC Policy is clearly communicated to all employees and ABC training is provided to employees on induction and on a regular basis thereafter.The Group maintai

157、ns an anti-bribery and corruption register,which records details of corporate hospitality,and gifts given and received by employees over a specified value.The Groups international teams undertake appropriate due diligence on all third parties acting on its behalf and maintain a third party anti-brib

158、ery and corruption register.The Audit and Risk Committee reviews the effectiveness of the Groups anti-bribery systems and controls,ThemeCross reference(within Annual Report&Accounts unless otherwise stated)Page referenceEnvironmental mattersResponsible Business Report We respect the environmentPages

159、 28 to 41EmployeesBusiness model Responsible Business Report We act with integrityPages 8 to 9Pages 23 to 27Social mattersBusiness model Responsible Business Report We support healthy living Responsible Business Report We give back Pages 8 to 9Page 42Page 43Non-financial metricsNon-financial KPIsPag

160、e 13Business risksRisk ManagementPages 48 to 55Business modelBusiness model Pages 8 to 9SECRResponsible Business Report SECR reportingPages 40 to 41TCFD and CFDResponsible Business Report TCFD and CFD disclosuresPages 33 to 40ABC GovernanceAudit&Risk Committee ReportPages 70 to 71Supplier controlsRe

161、sponsible Business Report Sustainable sourcingPage 32Policies&ProceduresIncluding Supplier Code of Conduct(Human Rights),Modern Slavery Statement,ABC and Employment Protection Policieswww.agbarr.co.uk/responsibility/policies-terms-of-business-and-brand-rules/R E S P O N S I B LE B U S I N E S S R E

162、P O R T CO N TI N U ED23CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTSafety and wellbeing cultureWe work hard to create a culture in which health,safety and wellbeing are our top priorities.Our ultimate goals in this area are zero work-related accidents and the provision of safe and hea

163、lthy working environments for all.We continuously improve our management systems to underpin our objectives and to ensure compliance with all health and safety related legislation as a minimum.Our thorough and varied health and safety management activity programme is designed to keep safety at the t

164、op of everyones agenda,with actions ranging from safety awareness initiatives and safety training,to site audits and reporting.Over the past 12 months we have continued to review our workplace activities and focus on reducing risk through the implementation of suitable control measures.Our health,sa

165、fety and wellbeing related activity has included:Ongoing review and roll-out of updated risk assessments and safe systems of work.Internal training,including dynamic risk assessment,contractor control and accident investigation.Provision of IOSH Working and Managing Safely courses across our supply

166、chain teams.IOSH Managing Safely/Safety for Managers courses.Provision of Mentally Healthy Workplace Training for Managers.Two-way communication via health and safety committees and representatives across all business areas.Continued partnership with the Keil Centre,supporting and validating our per

167、formance against our safety cultural maturity targets.Health,Safety and Wellbeing Days a series of face-to-face events carried out across all of our sites to help drive improved behaviours,awareness and decision making.This year we invited external speaker Lisa Ramos to deliver powerful impact sessi

168、ons at our Cumbernauld and Milton Keynes sites.Lisa was injured in a forklift truck accident and recounts the impact on her and her family.Health and Safety Awards recognising those employees who have gone above and beyond to improve the safety of themselves and others.Health and Safety pulse survey

169、s gauging the views and priorities of employees.Robust internal audit programme to help ensure compliance with legal requirements and identify and implement continual improvement opportunities.We implemented new health and safety management system software that provides easy to use and robust accide

170、nt and near miss reporting.We implemented a new driver safety programme for everyone who drives a car as part of their work activities.This comprises of a driver risk assessment and tailored e-learning modules.Focused leadership training for our health and safety representatives at Milton Keynes and

171、 Cumbernauld.We act with integrityS A F E T Y H I G H L I G H TAccident incident rate reduced from 4.0 to 2.724A.G.BARR p.l.c.Annual Report and Accounts 2024We are pleased to report that our accident incident rate,the number of RIDDOR accidents per 1,000 people,reduced from 4.0 to 2.7 during the pas

172、t 12 months.This,along with our ISO 45001 certification,are clear validations of the hard work that is ongoing to improve our safety standards and culture.Our accident incident rate KPI,as detailed in our non-financial KPIs on page 13,includes those accidents involving our own and agency employees,h

173、owever as part of our regular accident monitoring and reporting processes,any accidents that occur on our premises by contractors or other third parties are recorded,fully investigated and the learnings taken into account.We will continue to work hard towards delivering our safety goals in the year

174、ahead.From a wellbeing perspective we support our employees across a wide range of areas.From hybrid working arrangements,which provide greater flexibility to office-based colleagues,to the provision of training and resources to raise awareness of wellbeing issues,such as mental health and the menop

175、ause,we work hard to create a culture where open conversations are encouraged and our people are properly supported.Employee EngagementFor almost 150 years we have developed a positive,results-driven and supportive culture.As we grow our business both organically and through acquisition,it is import

176、ant that we retain the entrepreneurial spirit of the new and exciting additions to our Group,while also ensuring that we continue to value and nurture the unique essence of what makes A.G.BARR a great business to be part of.Underpinning everything that we do is our belief in performance through peop

177、le positive and engaged teams are central to our success.Communication is key to this engagement and we use a wide range of channels and tools to suit the different needs and preferences of our people.E M P L O Y E E E N G A G E M E N T H I G H L I G H TEmployee engagement in 202476%2023:75%S A F E

178、T Y H I G H L I G H T5 yearswith zero lost time accidents at Forfar factoryR E S P O N S I B LE B U S I N E S S R E P O R T CO N TI N U EDWe act with integrity continued202476%202375%25CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTEmployee valuesUnderpinning our corporate values,our four

179、 business divisions have their own employee values.These behavioural frameworks are central to who they are and how they operate,playing an important role in building teams and strengthening performance.At Barr Soft Drinks,which comprises our largest group of colleagues,employee values are embodied

180、by the Barr Behaviours.Created by our own people they represent what is important to a business that has been successful for over a century Being Brilliant,Always Learning,Results Driven and Relationships Matter.For the more recent additions to the A.G.BARR Group FUNKIN,MOMA and Boost their employee

181、 values are more reflective of the entrepreneurial and agile nature of their businesses,which we believe are important characteristics to retain and nurture.From recruiting new employees to developing existing teams,these employee values support how our teams work together to enhance performance and

182、 are fundamental to our success.For more information on our employee values visit our website at agbarr.co.ukLearning and developmentOur business is committed to learning and development to ensure everyone has the required skills and knowledge to thrive in their current role as well as building read

183、iness for the capabilities we are likely to need in the future.We have developed a Company-wide learning culture where all colleagues are encouraged and enabled to take ownership of their performance and drive their own development and careers.How colleagues learn and develop can vary and we therefo

184、re ensure that we provide a blended learning experience whenever possible.In recognition of our commitment to building colleague confidence and competence we have grown our learning and development team over the past 12 months.The ever-changing and volatile external landscape make reskilling and ups

185、killing more important than ever before.We recognise the importance of skilled employees,exceptional leaders and knowledge all vital to our ongoing commercial success.As such,in addition to our regular technical and compliance based training,we have shaped progressive development programmes to accel

186、erate the development of key colleague populations.We are pleased to be in a position to deliver much of this development in-house which we believe will increase the likelihood of the development being embedded across our organisation for the long term.L E A R N I N G A N D D E V E L O P M E N T H I

187、 G H L I G H TCareers WeekAlmost 170 of our people participated in our new Careers Week initiative,an opportunity to learn more about career planning and development.Covering areas such as career planning,apprenticeships,and our internal e-learning catalogue,this will now become an annual event as p

188、art of our learning and engagement calendar.26A.G.BARR p.l.c.Annual Report and Accounts 2024Diversity,equity and inclusionWe strive to be an inclusive employer that supports colleagues regardless of their gender or background and tackles any barriers that are preventing them from being their best.We

189、 continue to focus on delivering small steps focused on positive change.We aim to recognise and celebrate individuality as we continue to encourage,respect and value difference.We are focused on building a workforce that is truly representative of the communities we serve.The gender balance across t

190、he organisation now sits at 68%men and 32%women,broadly indicative of our industry.On our journey towards greater gender equality we set a new KPI in 2020 related to women in leadership,targeting 45%women across the leadership population by 2025 and we are pleased to have made further progress in th

191、is regard with senior female representation across the Group now at 42%,up from 38%in the prior year.The key metrics from our latest Barr Soft Drinks Gender Pay Report are detailed below:Mean Gender Pay Gap1.4%2022:-5.1%Median Gender Pay Gap-4.6%2022:6.0%Mean Bonus Pay Gap19.1%*2022:-1.1%Median Bonu

192、s Pay Gap-5.0%*2022:-17.6%Positive numbers are favourable to men,and negative numbers are favourable to women.Our mean gender pay gap has shifted since 2022 and is now slightly favourable to men.This is considered to be within the neutral range.Last year,it was favourable to women.However,overall ou

193、r figures have improved as we get closer to 0%.Both our mean and median bonus pay gaps are favourable to women.%employees receiving a bonus paymentMale94%2022:89%Female95%2022:93%Our focus is on making diversity,equity and inclusion not a“separate thing to do”but to embed it into our day-to-day busi

194、ness.We are on a journey and are confident that our focus areas for the year ahead will support further positive progress.The full Barr Soft Drinks Gender Pay Report is available on our website at www.agbarr.co.ukR E S P O N S I B LE B U S I N E S S R E P O R T CO N TI N U EDWe act with integrity co

195、ntinued20232024Male76Female3420232024Male6362Female394420232024Male701699Female313331G E N D E R D I V E R S I T Y A S AT Y E A R E N DBoard&Company SecretaryLeadership teamAll employees202440%Female202442%Female202432%Female202460%Male202458%Male202468%Male*Due to the volatility and timings of bonu

196、s payments an amendment has been made to bonus mean and median amounts for 2022 due to a small number of bonus payments that were processed through payroll at a later date and not originally included in the data.27CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTRewardOur approach to reward

197、 aims to link remuneration with the delivery of our key strategic priorities and our overarching purpose,to create value,with values for our shareholders,consumers,customers and for society as a whole.We strive to offer a fair and transparent total reward package that drives a performance-led cultur

198、e and is linked to both the long-term sustainable success of the business and our values.We target our pay at the market median or above,ensuring we can attract and retain high-calibre employees.We operate a number of incentive and bonus schemes designed to reward and motivate strong individual and

199、collective performance.We offer employees a modern and flexible range of benefits,offering choice to our increasingly diverse workforce.Our flexible benefits scheme allows eligible employees to select the benefits most suitable to them personally,using an allocated monetary allowance.Healthcare feat

200、ures prominently,with a selection of health-related benefits made available either on a core benefit basis or within the suite of flexible benefits made available to employees.We comply fully with all the regulations associated with rewarding our employees fairly and are a UK Real Living Wage accred

201、ited employer.More information on how we ensure that our approach to remuneration supports our strategy is available in the Directors Remuneration Report on pages 74 to 105.Responsible policies and proceduresWe have high expectations of our suppliers,our partners and ourselves.Across almost 150 year

202、s of operation,we have developed robust and responsible policies that guide what we do and how we work with others.The key policies,statements and guidelines we rely upon and that support our responsibility commitments are available on our Group website at www.agbarr.co.uk.Risk and regulation awaren

203、essWe have a robust risk management framework in place that is embedded across the business.In addition to the Group risk register,governed by the Board,business division and functional risk registers have been developed across our teams,allowing a wide range of employees at different levels to cont

204、ribute to our risk assessment and assurance processes.Our reputation is extremely important to us and it is the responsibility of every employee to act professionally,fairly and with integrity.This requires an understanding of the regulatory risks we face and how we can all play a part in mitigating

205、 these risks.In support of this,we require employees to complete the following five mandatory training modules:Introduction to Risk Data Protection Competition,Pricing and Confidentiality Anti-Bribery and Corruption Anti-facilitation of tax evasionFurther details on our risk management actions can b

206、e found on pages 48 to 55.D I V E R S I T Y,E Q U I T Y A N D I N C L U S I O N H I G H L I G H TImproved website AccessibilityOur corporate website is now more functional,inclusive and customisable for both visitors and employees alike following the introduction of a new user accessibility toolbar.

207、28A.G.BARR p.l.c.Annual Report and Accounts 2024We respect the environmentWe take our environmental responsibilities very seriously,constantly seeking to minimise our impact on the world we operate in.We focus on energy,waste and water reduction,limiting the impact of our packaging as well as workin

208、g towards our long-term carbon reduction targets.We have been accredited to the Environmental Standard ISO 14001 since 2003.This certification provides a framework against which we have developed comprehensive environmental procedures and monitoring systems.These processes have allowed us to measure

209、 our environmental performance and focus our activities on delivering long-term improvements.Carbon reductionWe have an important role to play in the transition to a low carbon and climate-resilient economy.Aligned to the Science Based Target Initiatives(SBTi)Net-Zero Standard,we have SBTi approved

210、near and long-term science-based emission reduction targets and an SBTi verified science-based net-zero target of 2050.With continued support from the Carbon Trust we have now completed a full carbon footprint assessment for our 2022/23 financial year covering our Scope 1,2 and 3 greenhouse gas emis

211、sions.Our first full carbon footprint assessment took place in 2020/21.Building up year-on-year data allows us to assess our impact and track progress towards our long-term goals.In focusScience-based targets explainedIn 2015,196 governments signed the Paris Agreement,which aims to keep average temp

212、erature increase to well below 2C above pre-industrial levels.More explicitly,the agreement sets out to limit the temperature increase even further to 1.5C.The Science Based Target Initiative(SBTi)enables companies to demonstrate their leadership on climate action by publicly committing to science-b

213、ased greenhouse gas(GHG)reduction targets.Science-based targets provide clearly defined pathways for companies to reduce GHG emissions.Targets are considered science-based if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement.SBTi requires

214、companies to focus initially on reducing their emissions from their direct GHG emissions(Scope 1),their indirect emissions,including the consumption of purchased electricity(Scope 2)and then on their wider indirect(Scope 3)emissions.R E S P O N S I B LE B U S I N E S S R E P O R T CO N TI N U ED29CO

215、RPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTOur 2022/23 greenhouse gas emissionsA detailed breakdown of our 2022/23 greenhouse gas emissions is contained within the Metrics and Targets section of our TCFD and CFD disclosures on pages 33 to 40.These disclosures also contain our Streamline

216、d Energy Carbon Reporting(SECR)report which sets out our Scope 1 and 2 data for the 2023/24 financial year.Our 2022/23 carbon reporting includes 8,720 tonnes of emissions from our recently acquired Boost and MOMA business divisions.MOMAs emissions are included for the full year,as a result of our ma

217、jority shareholding position,prior to the full business acquisition in December 2022.For Boost the data includes eight weeks of emissions from the point of acquisition in December 2022.These additions to our Group have resulted in a year-on-year increase in our total carbon footprint.However,on a li

218、ke-for-like basis,excluding the impact of MOMA and Boost,our year-on-year emissions have reduced,despite the underlying business increasing sales volumes.We delivered a number of positive carbon reduction initiatives across the year including the purchase of 12 new trucks fuelled by renewable bio-me

219、thane(Bio-CNG),further plastic lightweighting and an increase in our use of recycled plastic across our packaging.Following the addition of the MOMA and Boost businesses to our Group,we are now in the process of recalculating our 2020 greenhouse gas emission baseline data,from which our science-base

220、d targets are calculated.We will work with the SBTi to renew our targets ensuring our data and our goals are representative of our enlarged business.C A R B O N R E D U C T I O N H I G H L I G H T90%20%of our trucks are now fuelled by renewable biomethane(Bio-CNG),delivering a 90%reduction in CO2e i

221、n comparison to a diesel HGV.We are fully committed to achieving our science-based targets.For our Scope 1 and 2 emissions we have a deliverable and realistic net-zero roadmap.This roadmap builds on the progress we have already made and extends into future initiatives including further electric vehi

222、cles,solar panels,air source heat pumps and other degasification projects.For our Scope 3 targets,including purchased goods and services as well as upstream and downstream transport and distribution,we are working closely with our key suppliers and partners.Our roadmap to net-zero on page 31 sets ou

223、t our progress and plans.O U R 2 0 2 2-2 0 2 3 G R E E N H O U S E G A S E M I S S I O N S Scope 12.5%Direct emissions from activities we control(4,364 tonnes)Scope 20.1%Market-based.Indirect emissions from purchased energy (180 tonnes)Scope 397.4%All other emissions that occur in the value chain(16

224、8,122 tonnes)Total emissions 172,666 tonnes CO2e8%Equipment&services2.7%Manufacturing4.4%At home refrigeration15%Ingredients3.5%Waste0.3%Staff commuting24.2%Transport&distribution41%Packaging30A.G.BARR p.l.c.Annual Report and Accounts 2024T H E R OA D TO N E T-Z E R OP L A S T I C A N D P A C K A G

225、I N G H I G H L I G H TCap attached plastic bottles Introduction of first cap attached plastic bottles with associated plastic lightweighting at our Milton Keynes site this saves over 100 tonnes of virgin plastic the weight of around 20 adult elephants.R E S P O N S I B LE B U S I N E S S R E P O R

226、T CO N TI N U EDWe respect the environment continuedOur ambitious commitments are being delivered through our No Time To Waste environmental sustainability programme,which brings together our net-zero,plastic and packaging,waste,water and sustainable sourcing workstreams.No Time To Waste is central

227、to the achievement of our science-based targets and we were pleased to bring both Boost and MOMA into the programme during the year.Further information is available on pages 33 to 40 within our TCFD disclosures.PackagingWe believe that packaging should be treated by all as a valuable resource and re

228、cycled,not discarded as litter or waste.100%of our Barr Soft Drinks and FUNKIN packaging is recyclable with clear on-pack recycling messages.As part of our No Time to Waste programme we are now working across the whole Group to align our packaging recyclability.We continually seek to reduce the amou

229、nt of packaging we use and our No Time To Waste plastic and packaging workstream has established a clear strategy with a long-term goal of 100%circular packaging.This means a future where packaging is reduced,recycled and reused and supports our commitment to the UK Plastics Pact,of which we became

230、signatories in 2022.Reducing the environmental footprint of our packaging will be a critical part of our journey to reach net-zero.Following the introduction of 100%recycled plastic(rPET)into all of our IRN-BRU and Rubicon 500ml bottles in 2022,saving over 2,000 tonnes of virgin plastic every year,w

231、e are proud to have added further rPET into our portfolio during 2023.This was achieved at our Milton Keynes site where every plastic bottle produced now contains at least 30%rPET.We have retained our goal of having our full portfolio in 100%rPET by the end of the 2025 calendar year,however this is

232、an area that we keep under regular review.The availability of appropriate quality food grade recycled plastic remains an ongoing issue across the food and drink industry,in the UK and beyond.While consumers increasingly understand the need to recycle,plastic bottle caps are often found as litter.As

233、a responsible manufacturer we are moving to new designs that have our plastic bottle and carton caps connected to the pack after opening.This means the whole pack container and cap can be recycled together.We produced our first attached cap bottles at our Milton Keynes site in the latter part of 202

234、3 and aim to convert the majority of our soft drinks portfolio by the end of 2024.The new plastic bottle design brings an associated plastic lightweighting benefit,with a current annual virgin plastic reduction of over 100 tonnes for bottles produced at Milton Keynes.31CORPOR ATE GOVERNANCEFINANCIAL

235、 STATEMENTSSTR ATEGIC REPORT2020 ESG Board Committee established Launch of No Time To Waste environmental sustainability programme Switch to 100%renewable electricity Climate Disclosure Project(CDP)score improves to B classification Introduction of 100%recycled packaging film on Barr Soft Drinks con

236、sumer multipacks2021 Completion of first full carbon footprint assessment 45%reduction in greenhouse gases since 2015 CDP score improves to A-classification Electric vehicle charging points installed at all main Company-owned sites Fully electric fork lift truck fleet Introduction of plant-based bio

237、 cartons2022 SBTi approved science-based targets and net-zero commitment Full compliance with TCFD First bottles in 100%recycled plastic(rPET)FUNKIN glass bottle recycled content increased from 14.6%to 42.5%New signatory of UK Plastics Pact Successful trial of Hydrotreated Vegetable Oil(HVO)as fuel

238、alternative to diesel2023 20%of trucks fuelled by renewable bio-methane(Bio-CNG)CDP score improves to A classification Introduction of first cap attached plastic bottles Further packaging lightweighting 30%rPET introduced in all PET plastic bottles produced at our Milton Keynes site2024-2030 Targeti

239、ng 100%rPET across full Barr Soft Drinks portfolio Plastic and aluminium packaging lightweighting Increased use of recycled content and renewable materials Supplier engagement and collaboration programme Transition of remaining truck fleet to renewable fuel Reduce Company car fleet and move to elect

240、ric vehicles Degasification at our main manufacturing sites through solar panels and heat pumps Installation of lower energy intensive manufacturing equipment at our Cumbernauld site,including new PET and can filling lines Key suppliers transition to green electricity 2030 Reduce Scope 1 and 2 GHG e

241、missions by 60%Reduce Scope 3 GHG emissions from purchased goods and services and upstream and downstream transport and distribution by 25%2035-50 Further use of recycled content and renewable materials Logistics partners move away from diesel Suppliers and logistics partners delivering on their net

242、-zero commitments 2035 Become net-zero across our own operations2050Become net-zero across our full value chain2030-35 Further degasification through solar panels and heat pumps Removal/reduction of CO2 as a manufacturing processing aid Supplier engagement and collaboration programme O U R P L A N S

243、 O U R P R O G R E S S A N E T-Z E R O F U T U R E 32A.G.BARR p.l.c.Annual Report and Accounts 2024R E S P O N S I B LE B U S I N E S S R E P O R T CO N TI N U EDWe respect the environment continuedW A T E R H I G H L I G H TOver 1 million litres of water saved as a result of improved rinsing effici

244、encies on IRN-BRU production runs at our Cumbernauld factoryW A S T E H I G H L I G H T Extending the life of packagingMany of our raw materials and ingredients are delivered to us in cardboard packaging we have partnered with a number of businesses to reuse rather than recycle these items,putting t

245、hem to useful purposes,extending the life of the packaging and saving unnecessary recycling and reprocessing.Water and waste As a multi-beverage business,water is an important ingredient,as well as a necessary resource we rely upon across our operations.There is increasing awareness of the challenge

246、s faced in managing water resources and we are extremely aware of the part we have to play in protecting this precious commodity.We are pleased to report further improvements in our water usage efficiency.Our ratio of total water used relative to total litres of product produced has improved by 10.7

247、%against our 2020 baseline,supported by a number of initiatives across our manufacturing sites.This reflects the early achievement of our 2025 water efficiency target.More information can be found in our non-financial KPI section on page 32.We have also invested in additional water metering at our M

248、ilton Keynes site during the year.This technology is already providing useful data across our production lines,supporting the identification of further areas where water consumption can be reduced in the year ahead.As part of our sustainable sourcing strategy we also know that the most significant w

249、ater use in our value chain is in agriculture.The crops that we rely upon for many of our products,such as mangos,are grown in hot,potentially water-stressed areas,and we are working in partnership with our global suppliers to encourage sustainable practices.Once again we are pleased to have achieve

250、d our long-term target related to waste with 100%of our non-hazardous waste diverted from landfill.Our objective is to maintain this performance on a permanent basis.We are also targeting waste reduction across our own operational sites.Our Brilliance in the Making continuous improvement programme,o

251、perated across our own factories,identifies and delivers initiatives that generate efficiency,waste and water improvements.As a result of process improvements across the year,and a specific focus on material reduction,we have removed over 15 tonnes of operational waste on an annual basis.We have als

252、o successfully diverted 495 tonnes of waste from disposal,through partnerships and arrangements with organisations that can reuse our waste and put it to meaningful use.Sustainable sourcingAs climate change and a rising population put pressure on our limited natural resources,it is important for all

253、 our raw materials to be sourced sustainably and used effectively.As one of our No Time To Waste workstreams,sustainable sourcing is key to ensuring our high-quality ingredients and materials are sourced and manufactured in a fair,ethical and environmentally responsible way.Our Supplier Code of Cond

254、uct sets out the key supplier principles we work to and the minimum standards we require our suppliers to meet,which form part of their contractual commitments to us.This Code is fundamental to ensuring we work with suppliers who uphold the highest standards with respect to human rights,conditions o

255、f employment and who actively reduce their environmental footprint.We ensure our critical suppliers have embedded sustainable and ethical practices in their organisations,and that they are committed to maintaining these principles within their own supply chains.Our key suppliers must acknowledge the

256、ir compliance on an annual basis through our stringent supplier approval process,which uses questionnaires and audits to confirm adherence to our standards across a broad range of requirements.For many years we have used the Supplier Ethical Data Exchange(Sedex)platform,a not-for-profit global membe

257、rship organisation dedicated to driving improvements in ethical and responsible business practices.We also use the Sedex Supplier Approval Questionnaire as an important secondary validation step which allows independent benchmarking of suppliers on a consistent measurable basis.The output from these

258、 questionnaires also allows us to collaborate and engage with our suppliers to set objectives and action plans to deliver sustainable and continuous improvements.This includes active and ongoing dialogue with our key suppliers related to their carbon reduction plans their actions support the deliver

259、y of our Scope 3 science-based targets,and ultimately our net-zero ambition.Materiality and stakeholder engagementWe regularly engage with internal and external stakeholders to ensure that our responsibility agenda is addressing the material issues.Governance Our responsibility agenda is integrated

260、into our strategic,financial and business planning,as well as our risk management processes,with ultimate accountability sitting with the Board.33CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTC L I M A T E H I G H L I G H TA class rating CDP score improves to A ratingEmerging Risks&Oppor

261、tunities GroupBoardExecutive teams for each business divisionGroup Risk Committee“No Time To Waste”Steering GroupCapital Allocation CommitteeAudit and Risk CommitteeESG CommitteeRemuneration CommitteeNomination CommitteeOur Executive teams are responsible for the delivery and execution of our respon

262、sibility actions and programmes,supported where appropriate by sub-committees and functional or project teams.Further information on the governance of our climate-related risks and opportunities is detailed in our TCFD and CFD disclosures as follows.Independent assuranceWe continued to work with thi

263、rd party assurers,the Carbon Trust,across the past 12 months.They have completed a review and verification of our Group operations for Scope 1,2 and 3 emissions for the year ended January 2023 against the 14064-3 standard.Scope 1 and 2 verification for the year ended January 2024 is underway.Having

264、developed the worlds first certification for organisational CO2e Reduction Standard and product carbon footprints,the Carbon Trust is a leading carbon footprint certification body.During 2023 we were also pleased to improve upon our Climate Disclosure Project(CDP)rating which has now increased to an

265、 A classification.CDP is a not-for-profit charity that runs a global environmental disclosure system.CDP is widely used and considered to be one of the most comprehensive independent environmental data sets available.The CDP Score Report allows us to benchmark and compare our environmental stewardsh

266、ip with peers,and provides additional information that can help inform our forward-looking improvement programmes.Further information on our corporate governance framework can be found on 58 to 69 TCFD and CFD disclosureThe Task Force on Climate-related Financial Disclosures(TCFD)and the Climate-rel

267、ated Financial Disclosure(CFD)requirements both provide a framework for companies to report the potential financial impacts from climate change on their business.They also require reporting of the progress made by the organisation against the targets set to mitigate climate-related risks and to redu

268、ce its impact on the environment.These frameworks are designed to help investors and wider stakeholders understand how businesses are managing climate-related financial risks,across four key areas:Governance setting out the respective roles of the Board and management team in managing risks and oppo

269、rtunities.Strategy identifying risks and opportunities over different time horizons and explaining how these impact strategic and financial planning.Risk Management having processes in place for managing identified risks and including these within the overall risk management framework.Metrics and Ta

270、rgets explaining how both climate change impact and exposure to risks are measured,setting targets and tracking ongoing progress.Using this framework we set out our full disclosures as follows.Governance Board of Directors The A.G.BARR Board has accountability for the oversight of climate-related ri

271、sks and opportunities impacting the Group.The Board of Directors considers climate-related risks and opportunities when reviewing and agreeing the Company strategy,agreeing future objectives,budgets and KPIs,setting policies and when considering potential M&A activity.The Board carries out a full re

272、view of our Group risk register and principal risks,including those related to climate change,twice a year.In addition,the Board regularly discusses climate-related issues across a variety of Board meeting agenda items.These include matters arising from its sub-committees,particularly from the Envir

273、onmental,Social and Governance(ESG)Committee,as well as from general business updates,where climate-related issues will often be integral.Examples during the year include discussions on science-based targets,net-zero roadmap,as well as the approval of our strategic capital investment programme,incor

274、porating projects which will contribute to greenhouse gas reduction.34A.G.BARR p.l.c.Annual Report and Accounts 2024A structured process for identifying and quantifying emerging risks and opportunities across the Group,similar to our risk management approach,provides a framework to support broader t

275、hinking on new and emerging areas,including those related to climate change.With input from all of our Executive teams,this plays an important role in the Boards strategic planning process.The Board completed a robust assessment of the Groups emerging risks,including those related to climate change,

276、during the year.Corporate climate-related targets,set by the Executive teams and ratified by the ESG Committee,are monitored by the Board on a regular basis.The Board,in turn,delegates some elements of its responsibility to its various sub-committees,as set out below:The Audit and Risk Committee has

277、 the delegated responsibility to monitor our internal financial controls as well as our internal control and risk management systems.Its risk management oversight includes the review of our Group risk register and principal risks,including those related to climate change,at least twice per year.The

278、Environmental,Social and Governance Committee assists the Board in fulfilling its oversight responsibilities with respect to the Companys management of all relevant ESG matters.The ESG Committee has delegated responsibility for approving the Companys environmental sustainability strategy and reporti

279、ng back to the Board.It meets twice a year as a minimum.The ESG Committee owns,and is responsible for monitoring and updating,our material risks and opportunities related to climate change.A full review was undertaken during the year against three climate scenarios.See the Strategy section for the o

280、utput.The Remuneration Committee is responsible for determining our remuneration policy,including how climate-related factors are taken into consideration and reflected in reward.Executive Directors long-term incentive plan awards,by way of illustration,include an environmental sustainability perfor

281、mance measure.Further information is available in our Directors Remuneration Report on page 76.The Nomination Committee is responsible for Board appointments and succession planning.Business DivisionsOur Executive teams across our business divisions are responsible for managing the climate-related r

282、isks and opportunities faced by our Group on both a long-term strategic basis and day to day.Our strategic planning process considers both the risks and opportunities arising from climate change and a specific process related to emerging risks and opportunities.The Executive teams are supported acro

283、ss a number of areas as set out below:Our Group Risk Committee ensures that a strong framework is in place to manage operational risks effectively,including those associated with climate change.The Committee oversees our principal risks and uncertainties,and reviews the effectiveness of risk managem

284、ent and compliance systems in managing those risks.The aim of the Committee is to ensure that employees understand the importance of good risk management,that a supportive risk management culture is embedded across the Group and that risk management processes are clearly deployed.The No Time To Wast

285、e Steering Group,chaired by the CEO,governs our Group-wide environmental sustainability programme.The No Time To Waste Steering Group has overall responsibility for setting the Groups environmental sustainability strategy,for achieving the Companys climate change objectives,and for monitoring and ma

286、naging risks and opportunities related to climate change.The No Time To Waste programme encompasses five key workstreams associated with reducing the effects of climate change with a risk register in place across the programme.The risks identified,along with opportunities arising from the climate ch

287、ange agenda,are reviewed on a monthly basis.Our Capital Allocation Committee is responsible for ensuring the best use of our capital resources in line with our strategy and plans.This includes the review and approval of capital expenditure programmes related to environmental sustainability,taking in

288、to account the risks and opportunities in investment decisions.Our Emerging Risks and Opportunities Group is responsible for identifying and managing emerging risks and opportunities at an A.G BARR Group level.This group conducts an annual review prior to making recommendations to the Board,the outp

289、ut from which forms part of our Boards annual Strategy Review.Strategy Our Board has ultimate responsibility for agreeing our business strategy,taking into account,and reflecting where appropriate,the risks and opportunities associated with climate change.As detailed above,the Boards strategic think

290、ing and decision making is supported and informed by our Executive teams and by a number of Board sub-committees.As detailed in the Metrics and Targets section that follows,our key climate related objective,borne out of our strategy,relates to our achievement of our science-based targets and our ult

291、imate net-zero commitment.Our associated net-zero road map is set out on page 31.Our strategic timeframes are as follows:Short-term:0 to 1 years Medium-term:1 to 5 years Long-term:5+years These timeframes have been selected to align with our annual budgeting process,our internal integrated planning

292、process(3 to 5 years)and our longer term thinking on emerging risks and opportunities.The opportunities,as well as physical and transition risks considered material to our Group,are detailed below,along with our strategic responses.A full review was undertaken during the year against three climate s

293、cenarios with the resilience of our strategy specifically tested against scenarios where global temperatures rise by more than 2C(RCP 4.5).Our methodology for defining material financial and strategic impacts on our business is aligned with our risk management approach,detailed in the Risk Managemen

294、t section that follows.Gross risk impacts that fall in the categories of“moderate”,“major”or“critical”would be deemed to be material.R E S P O N S I B LE B U S I N E S S R E P O R T CO N TI N U EDWe respect the environment continued35CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTPhysical

295、 risks associated with increased severity of extreme weather events such as cyclones and floods(acute),and associated with changes in precipitation patterns and extreme variability in weather patterns,rising mean temperatures and rising sea levels(chronic).Risk Type&Description TimeframePotential fi

296、nancial impactChronic riskThe risk that long-term climate change impacts the future availability,quality and cost of the natural ingredients required to manufacture our products,such as sugar,fruit and water.Long-termStrategic response:We have dedicated Sustainable Sourcing and Water workstreams wit

297、hin our No Time To Waste environmental sustainability programme with ambitious strategies in these areas.By way of illustration of action taken related to fruit availability,we have developed a network of suppliers who can supply materials from different origins and have set up a programme to approv

298、e products from different geographical sources,such as passion fruit from Vietnam,in addition to our existing supply from Ecuador,thus reducing risk of supply issues and ultimately protecting availability.We have developed an upstream farming location database which allows us to see beyond our direc

299、t suppliers and understand specific farming locations.By reviewing this data we can better understand the mitigating actions we can take and spread our farming sources across broader geographical areas.As a core ingredient,we have three approved mango suppliers who source from two distinct districts

300、 in India to provide us with diverse sources of the fruit.We are also engaging with suppliers to establish alternative sources from other countries,such as Bangladesh,to mitigate against poor crop yields.Engagement has now commenced with the Sustainable Agricultural Initiative to support us in worki

301、ng with our suppliers to help mitigate and manage longer-term climate change impacts.Our well communicated sugar reduction programme also provides mitigation against some of the risks associated with sugar availability.With a portfolio now less reliant on sugar we have reduced our exposure to potent

302、ial longer-term sugar sourcing issues.Acute riskThe risk that an extreme weather event impacts the crop or yield of a natural ingredient used within our products or that an extreme weather event causes supply chain,transport or customer service disruption such as a flood at one of our strategic supp

303、lier locations,resulting in a lack of supply for some key materials and loss of sales.The greatest risks to our business operations in terms of extreme weather events are likely to be severe winter weather affecting our ability to service customers,or an extreme weather event at a key supplier,e.g.f

304、looding.Severe storms could also affect harvests,transport and/or logistics.Logistical challenges could lead to an immediate,but likely short-term,impact on sales while any harvest impact could lead to reduced supply and higher raw material prices.Long-termStrategic response:In addition to broadenin

305、g our supplier base to mitigate key supplier risk we ensure that we retain appropriate levels of inbound raw material stock and outbound finished stocks.We also discuss with suppliers their disaster mitigation recovery plans.We have a fully researched suite of contingency recipes using alternative i

306、ngredients where appropriate should short-term weather events impact raw material availability.Potential financial impact movement:Moderate Major Critical36A.G.BARR p.l.c.Annual Report and Accounts 2024Transition risksassociated with changes to policy and legislation,technology,the market and reputa

307、tion.Risk Type&Description TimeframePotential financial impactPolicy and legal riskThe risk of higher costs as a consequence of planned/potential regulation such as a carbon tax,or packaging related regulations/taxes such as UK Extended Producer Responsibility(EPR).The IEA Net-Zero Emissions by 2050

308、 climate scenario identifies a potential need to introduce carbon pricing for all industries in developed countries starting from$140 per tonne CO2e in 2030,rising to$205 per tonne CO2e in 2040.Medium-termStrategic response:We have approved science-based targets that will see us becoming net-zero ac

309、ross our own operations by 2035 and across our full supply chain by 2050,if not sooner.We have already begun our decarbonisation journey in areas such as moving to 100%renewable electricity and 100%electric forklift trucks.We are also focused on reducing,reusing and recycling across our packaging.10

310、0%of our Barr Soft Drinks and FUNKIN packaging is already recyclable and we are increasing our use of recycled material.We now have 100%recycled plastic film across consumer multipacks and introduced our first 100%recycled bottles in April 2022,as part of a longer-term objective of having 100%recycl

311、ed content across our full portfolio of plastic bottles.Discussions are also underway with our glass bottle and aluminium can suppliers on how we can work together to increase recycled content in the products they provide.We are reducing packaging where possible,such as a recent reduction in the wei

312、ght of our factories outer stretch wrap.In addition,we are positive supporters of the implementation of the Deposit Return Scheme(DRS)in the UK,which will help to mitigate potential EPR costs for the business the latest government proposals in this area have confirmed that containers subject to DRS

313、will be out of scope of EPR.Market and technology riskThe risk that energy and other related costs rise as industry transitions to new sustainable business models e.g.renewable electricity,packaging material supply,bio fuel etc.This could result in increased costs to the business as our supply base

314、passes these increases through.Medium-termStrategic response:Volatile input costs,particularly energy related,are mitigated where possible by timely procurement and long-term contract management such as our 10-year renewable electricity agreement.We monitor market conditions carefully and ensure tha

315、t decision-making takes into account external trends and economic forecasts,ensuring availability can meet our supply needs at an acceptable cost.Market riskThe risk that consumer or customer behaviours change in relation to single-use packaging or as a result of regulatory changes designed to reduc

316、e the impact of climate change,such as DRS,resulting in a reduction in demand for our products or consumers switching to brands perceived as more sustainable.Medium-termStrategic response:We are positive supporters of the implementation of an interoperable UK-wide DRS scheme.By incentivising consume

317、rs to return their drinks containers,DRS will set drinks packaging apart,as drinks containers will become part of a truly circular economy.The delivery of our net-zero roadmap,and specifically our drive to reduce,reuse and recycle across our packaging,are key to improving our environmental credentia

318、ls and further building trust with consumers.R E S P O N S I B LE B U S I N E S S R E P O R T CO N TI N U EDWe respect the environment continued37CORPOR ATE GOVERNANCEFINANCIAL STATEMENTSSTR ATEGIC REPORTOpportunities associated with resource efficiency,energy sources,products and services,markets a

319、nd resilience.Opportunity Description&TypeTimeframePotential financial impactEnergy source opportunity Use of lower-emission energy sources,such as photovoltaic panels and heat pumps for the generation of electricity,heat and steam,leading to a reduction in greenhouse gas emissions.Medium-termStrate

320、gic response:These initiatives present a significant opportunity to reduce our Scope 1(by the reduction of gas consumption from heat pumps)and Scope 2(from on-site electricity generation from photovoltaic panels)emissions,thereby mitigating the on-cost associated with the potential introduction of c

321、arbon pricing while also potentially delivering utility cost reductions.Market opportunityThe opportunity that consumer behaviours change,with consumption patterns shifting towards products perceived to be more environmentally friendly,resulting in sales opportunities.More environmentally conscious

322、consumer behaviours could include supporting companies who have clear plans to achieve net-zero or who are actively engaged in DRS schemes.It could also extend to the favouring of domestic produced products.This opportunity could also lead to the attraction of new talent to our workforce.Long-termSt

323、rategic response:Communication with our customers and consumers is key to ensuring our environmental sustainability plans and progress are well understood.We provide regular updates to our customers via our sales teams and we are increasingly communicating directly with consumers,both on pack and th

324、rough traditional and social media channels.The recent acquisition of the MOMA business illustrates how sustainability factors are now integrated into business and corporate development decision-making.The MOMA brand champions UK oats and British farming,and as a dairy milk alternative,oat milk is o

325、ne of the most sustainable options.We believe that our strategic actions are currently providing an acceptable degree of long-term resilience,taking into consideration different climate-related scenarios.Risk managementIdentifying risksEach department or function in the Company has its own risk regi

326、ster that is reviewed on a regular basis.Climate-related risks,including those associated with existing and emerging regulatory requirements,are identified and assessed alongside other business risks during the departmental reviews.Departmental risk registers feed into the Group risk register,which

327、is reviewed by our Group Risk Committee every two months.The Emerging Risks and Opportunities Group,as already detailed in the Governance section,is responsible for the Groups emerging risks and opportunities register,with a longer-term horizon than that considered by the departmental units.The ESG

328、Committee owns,and is responsible for monitoring and updating,our material risks and opportunities related to climate change.The ESG Committee is supported by a cross-functional group of senior executives who help input into this process both in terms of risk identification and assessment aligned to

329、 varying climate scenarios.A full review was undertaken during the year against three climate scenarios.The three scenarios were used in order to represent best-case,intermediate and worst-case situations against which to consider impacts and likelihoods.38A.G.BARR p.l.c.Annual Report and Accounts 2

330、024Best-case climate scenarioIEA Net-Zero Emissions(NZE)by 2050Scenario narrative&contextUnder this scenario,the global energy sector reaches net-zero emissions of CO2 by 2050 by deploying a wide portfolio of clean energy technologies and without offsets from land-use measures.It also depends on a h

331、igh degree of fair and effective global co-operation and collaboration.All countries are required to contribute to deliver the desired outcomes.This scenario assumes that all regions introduce pricing of CO2 emissions alongside other policies designed to bring about clean energy transitions in the N

332、ZE Scenario.For advanced economies the assumed carbon price by 2030 is$140 per tonne of CO2.Intermediate climate scenarioIPCC RCP 4.5 pathwayScenario narrative&contextEmissions start declining by approximately 2045 to reach roughly half of the levels of 2050 by 2100.Global temperatures rise between

333、2C and 3C,by 2100,sea levels rise and many plant and animal species are unable to adapt.Worst case climate scenarioIPCC RCP8.5/SSP5Scenario narrative&contextLimited efforts are made by governments and businesses to reduce greenhouse gas emissions,leading to temperature rises of 4C above pre-industrial levels by 2100.In this scenario,the emphasis turns to protecting the population and operational a