Choose topics to filter the report

Your filter results

Enterprise risk management

The Group’s enterprise risk management process is designed to identify, assess and mitigate actual and potential, as well as emerging risks to our business in order to protect the Group from negative financial and/or reputational impact. Furthermore, the risk management process facilitates the disclosure of risks to key stakeholders. It also raises internal awareness and provides a basis for informed decision-making. The process, which is periodically reviewed by the Audit and Risk Committee and approved by the Board of Directors, is led by the Group General Counsel & Chief Compliance Officer.

Our risk management process is carried out in conformity with the Swiss Code of Best Practice for Corporate Governance. In addition, climate change-related risks and opportunities are identified following the recommendations of the Task Force for Climate-related Financial Disclosures (TCFD), see the Task Force on Climate-related Financial Disclosures report. Our approach to addressing climate-related risks and opportunities is integrated in our risk management process and includes transition risks in fast moving consumer goods markets and physical risks for our supply chain as well as opportunities related to our low carbon footprint innovations. For more information on identified climate-related risks and opportunities see Climate+.

Management is responsible for identifying and reporting risks and for implementing and tracking mitigation measures. Each top risk is owned by a member of the Group Executive Board. Each mitigation action has an owner at Group level who works closely with the respective regional functions to ensure local implementation. The mitigation actions are frequently reviewed as part of our strategic initiatives and management processes throughout the year.

At least annually, we review our top risks and mitigation actions in workshops with our regional and functional leadership teams. The results of these workshops are then discussed with the Group Executive Board. The top risks and mitigation actions are subsequently reviewed by the Audit and Risk Committee and ultimately by the Board of Directors. The Audit and Risk Committee also reviews the implementation of the risk management system and the integrity and accountability of the risk management function on an annual basis. As part of the enterprise risk management process, the Audit and Risk Committee also regularly discusses risks that could materially impact our business and financial position, as well as the development of internal controls to mitigate such risks. In addition, the Audit and Risk Committee periodically reviews the internal policies and procedures designed to secure compliance with laws, regulations and internal rules regarding insider information, confidentiality, bribery and corruption, sanctions and adherence to ethical standards, and assesses the effectiveness thereof. The Audit and Risk Committee also discusses with the Group CFO and the Group General Counsel & Chief Compliance Officer any legal matters that may have a material impact on the Group’s business or financial position and any material reports or inquiries by regulatory or governmental agencies that could materially impact the Group’s business or financial position. The Audit and Risk Committee reports material matters to the Board of Directors on a regular basis.

The risks that we may be exposed to are particularly in the areas of strategy, operations, sustainability, regulatory, legal and compliance, as well as finance.

Strategic risks

Description

We are exposed to several strategic risks, such as:

  • The risk that our business model no longer adequately addresses the needs of customers and consumers.
  • The risk of changing customer or consumer preferences.
  • The risk of existing competitors or new market players.
  • The risk that we do not keep up with new technology trends.

How we mitigate risk

  • We regularly review our strategy.
  • We monitor and assess the competitive landscape.
  • We constantly seek feedback from our customers, suppliers and other stakeholders.
  • We monitor technology trends and invest in development of new technology.
  • Our business is geographically diversified.

How we turn risk into opportunity

  • We adapt our strategy where appropriate to be a pioneer in our industry.
  • We explore new markets and business opportunities to expand our business.
  • We implement new technology to meet and exceed customer and consumer expectations.

Operational risks

Description

We are exposed to several operational risks, such as:

  • The risk that our supply chains are disrupted.
  • The risk that we are not able to attract and retain employees, resulting in limitations to maintaining, developing and growing the business.
  • The risk that our operations may have a negative impact on the environment or communities.
  • The risk that we do not meet our high standards to ensure the health and safety of our employees.
  • The risk that our employees cannot perform their duties due to events such as a pandemic.
  • The risk of loss of or damage to key manufacturing facilities (incl. IT failures).

How we mitigate risk

  • We expand our supply base where appropriate, including new suppliers and materials.
  • We take measures and foster a culture that prevents people incidents and work-related illness.
  • We have implemented processes to ensure business continuity planning, including a pandemic contingency plan.
  • We constantly monitor cybersecurity risks and have implemented an information security management system to prevent security incidents (including cyber attacks).
  • We take care of the wellbeing of our employees to be an employer of choice.

How we turn risk into opportunity

  • Our responsible sourcing programme as part of our Way Beyond Good offers opportunities to develop sustainable suppliers that are more resilient towards climate change impacts.
  • Our employer branding and employee wellbeing programmes help us become an employer of choice for our existing and new talent.

ESG risks

Description

We are exposed to several sustainability risks, such as

  • The risk that acute or chronic impacts resulting from climate change affect forests and thus the availability of and costs for wood, one of our key raw materials.
  • The risk that regulators introduce stricter climate-related regulations, such as GHG taxes or requirements regarding the environmental performance of our products.
  • The risk of potential negative impacts on human rights of our own operations, our supply chain or with respect to our major business relationships.

How we mitigate risk

  • We have set GHG reduction targets in line with the Science Based Targets initiative.
  • We drive innovation to further reduce the carbon footprint of our packaging solutions.
  • Through our partnerships, we help to mitigate negative environmental impacts and enhance positive impacts, including for example initiatives to create additional sustainably managed forest land, and foster the collection and recycling of used beverage cartons in priority markets.
  • We source 100% of our aseptic carton paperboard from FSC™-certified suppliers.
  • We engage with our suppliers to further reduce the climate impact of key raw materials.
  • We source 100% of the aluminium for our aseptic carton packs from ASI-certified suppliers.
  • We are a signatory to the United Nations Global Compact and committed to adhering to the standards encompassed within the International Bill of Human Rights, the International Labour Organization’s core labour standards and the Ethical Trading Initiative Base Code.
  • We conduct human rights due diligence.

How we turn risk into opportunity

  • We invest in research and development to better meet the needs of customers and consumers, including enhancing the environmental performance of our packaging solutions.
  • We are committed to reducing the carbon footprint of all our packaging and pioneer carbon negative packaging concepts.
  • An increasing demand for sustainable products offers great business opportunities.

Regulatory, legal & compliance risks

Description

We are exposed to several regulatory, legal and compliance risks, such as

  • The risk of increasing regulatory requirements regarding, for example, the environmental performance of our products.
  • The risk of stricter trade restrictions, including economic sanctions and export controls, prohibiting or restricting us from doing business in certain countries or with certain designated persons.
  • The risk that managers or employees fail to act with integrity, in compliance with applicable laws and regulations or in accordance with our internal policies and processes, which could result in reputational and financial impact for the Group.
  • The risk of legal disputes.

How we mitigate risk

  • We maintain a compliance management system, including regular compliance risk assessments and process-oriented controls.
  • We provide guidance to our employees on acting with integrity through our compliance policies and training.
  • We have implemented control systems to ensure compliance with applicable trade restrictions.
  • We operate a grievance mechanism for reporting any compliance issues or concerns.
  • We monitor legislative developments and take action to comply with upcoming applicable laws and regulations.

How we turn risk into opportunity

  • Acting with integrity, also beyond compliance with applicable laws and regulations, and conducting business based on values, enhances our Group’s reputation.
  • We invest in research and development of sustainable and environmentally friendly products to meet and exceed regulatory requirements and customer expectations.

Financial risks

Description

We are exposed to several financial risks, such as

  • The risk of increased costs (including commodity, freight, energy and other input costs) due to, for example, inflation.
  • The risk of fluctuations in exchange rates.
  • The risk that our financial reporting is inadequate.
  • The risk of increasing interest rates.
  • The risk that we do not have sufficient financial resources and liquidity.

How we mitigate risk

  • We have implemented an internal control system for financial reporting.
  • We have established treasury policies that identify risks faced by the Group and set out policies and procedures to mitigate those risks.
  • We maintain a broad network of financing sources, including bank financing and debt capital markets, in different geographies, and we maintain adequate cash and liquidity reserves.
  • We have implemented hedging policies to manage the risk of fluctuations in exchange rates and commodity prices.
  • We have processes in place to monitor and manage our costs.

How we turn risk into opportunity

  • Our reporting of risks and opportunities adds transparency, permitting investors to make informed decisions.
Share this page