Why this is material
The global energy transition has led to significant risks and business model disruptions. As a diverse company with a presence in multiple markets, we are exposed to risks including financial, operational, compliance and information technology threats.
Our approach
We have an overall risk management strategy, as set in place by our board of directors and supported by the board’s Risk Committee and Audit Committee. Oversight of risk management within the Group’s listed entities lies with their respective boards. The Risk Committee reviews and enhances the effectiveness of the Group’s risk management plans, systems, processes and procedures. It also regularly reviews group-wide risks including significant risk exposure relating to operational risks, foreign exchange rates, commodity prices and major investment projects as well as corresponding risk mitigation plans. HSSE policies, guidelines and limits are also regularly reviewed.
Risk Appetite Framework
The board has determined a risk appetite framework which guides the board and management in the execution of our strategy and objectives. Under this framework, the board has approved risk appetite statements with respect to economic, environmental, social and governance areas in line with our material issues for the management and reporting of our overall sustainability performance.
Enterprise Risk Management
The Group is committed to ensuring that an effective and practical enterprise risk management (ERM) framework is in place. Our framework aims to safeguard our people and assets, protect shareholders’ interests, facilitate informed decision-making for value creation and ultimately enhance our brand and reputation. In designing our ERM framework, the Group has adapted and made reference to various industry risk management standards, such as ISO31000 and the Enterprise Risk Management – Integrated Framework of the Committee of Sponsoring Organizations of the Treadway Commission.
For details of our risk appetite framework and enterprise risk management, please refer to the Risk Management section of our Sustainability Report.