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Risks and opportunities

The commitments and ambitions of our Future Proof strategy help us manage the related risks facing the business.

Corporate Responsibility & Sustainability risks are incorporated as part of the Group risk management process, and the Global CR Manager is member of the Group Risk Committee. Our approach to Corporate Responsibility and Sustainability risk focuses on the issues that are considered to be the most material to Aegis Media. The Global Reporting Initiative (GRI) and Carbon Disclosure Project (CDP) guidelines on risk assessment are applied to the review of the CR Risk Register.

The key risks that we have identified as being material to Aegis Group are:

ENVIRONMENT

Key risk Risk assessment Risk mitigation
The unpredictability of rising expenditure on environmental compliance, reporting and/or environmental emissions tax The potential for new environmental legislation which may impact the business in the future: increased operational costs due to increased energy and travel costs; high tax exposure due to emission taxation; reputation costs connected with not taking any action on environmental stewardship The CR department is responsible for setting minimum standards on environmental performance and reporting. Together with our network of environmental champions across the business it works on decreasing our energy and travel emissions
Key opportunity Potential upside Action
To achieve industry leadership around environmental management and reporting; additional services purchased by clients as a result of greener advertising and/or innovative campaigns leveraging Corporate Responsibility & Sustainability as key aspects of content Increased efficiency and cost savings; stronger reputation and visibility by clients in relation to environmental performance; increased and more diversified revenues; more successful new business performance The CR department is responsible for meeting CR objectives: Green Thread in ICP developed: Increasing awareness of our Future Proof strategy:. Client credentials.

MARKETPLACE

Key risk Risk assessment Risk mitigation
The risk of sourcing supply chain activities from businesses not aligned to our own Corporate Responsibility & Sustainability standards: the risk of not meeting clients supply chain requirements The potential unintended impact on the company's services due to: a breach of our internal standards: supporting or providing a product/service that is seen as unethical, insensitive, socially exclusive and/or environmentally polluting. The CR department is responsible for managing supply chain monitoring and reporting and ensuring its compliance with our Code of Conduct as well as industry codes.
Key opportunity Potential upside Action
To achieve industry leadership around our supply chain practices, meeting all industry and internal requirements, and engaging positively with local communities: Additional services purchased by clients as a result of our ability to meet and exceed their supply chain requirements: Opportunities to influence and guide client behaviour on relevant issues License to operate; increased new business and client revenue opportunities; stronger client relationships. The CR Department is responsible for supply chain and community monitoring and reporting; implementing collaboration partnerships with clients to enhance Corporate Responsibility and Sustainability offering: engaging in community initiatives such as GlobalGivingTIME deployed

WORKPLACE

Key risk Risk assessment Risk mitigation
High employee turnover and / or lower employee engagement levels which may impact quality of client delivery FK to complete in line with internal risk assessment FK to complete in line with internal risk assessment
Key opportunity Potential upside Action
To attain industry leadership through generating a highly engaged, committed and productive workforce: Being recognised as an employer of choice for our staff Enhanced employee engagement and productivity; reduced employee turnover and hence recruitment costs; ability to recruit and retain the best talent FK to complete in line with internal risk assessment

GOVERNANCE

Key risk Risk assessment Risk mitigation
The risk of not being able to report accurate, reliable and/or credible Corporate Responsibility & Sustainability information or to evidence effective measurement, oversight & accountability Inability of the Group to: 1. Show evidence of accurate, effective and credible reporting in the Annual Report & Accounts and the CR Report 2. Show evidence of effective scrutiny and oversight of the CR risks, opportunities and programmes 3. Identify, manage and mitigate risks & opportunities around sustainability & CR and 4. Recognise increasing expectations of stakeholders around governance in this area. The CR department is responsible for measurement, monitoring and reporting of Corporate Responsibility & Sustainability targets, managing the risk register and mitigating these risks as well as meeting stakeholder expectations. The CR Steering Group is ultimately responsible for this oversight function.
Key opportunity Potential upside Action
To achieve industry leadership through reliable and practical monitoring and reporting which meets and exceeds client and investor requirements. Increased investor confidence; Increased reputation as a socially and environmentally responsible business; Stronger client relationships; Stronger reputation management. The CR department will provide timely and practical data to investors in relation to measurement and reporting of our Corporate Responsibility & Sustainability achievements as well as responding to client and investor questions.

KEY FACTS

FIVECONTINENTS

24TIME ZONES

130COUNTRIES

12,000PASSIONATE PEOPLE