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In 2011, Corporate Responsibility risks were incorporated in the Group risk management process, and the Global CR Manager became a member of the Group Risk Committee.
Our approach to CR risks focuses on the issues that are considered to be most material to Aegis Group plc. In 2011 the standard of our CR risk assessment was increased to better reflect the Group-wide risk identification and evaluation procedures. In addition, for the first time, the Global Reporting Initiative (GRI) and Carbon Disclosure Project (CDP) guidelines on risk assessment were applied to the review of the CR Risk Register.
As a consequence, our key CR risks and opportunities have changed substantially. For other Group risks, including those relating to our employees, please see Principal Risks and Uncertainties.
| Key risk | Risk assessment | Risk mitigation | |||
|---|---|---|---|---|---|
 |
Group is not able to predict, afford or respond accurately to the rising expenditure on environmental compliance, reporting and/or environmental emission tax. | Operational disruption due to extreme weather conditions; high operational costs due to increased energy and travel costs; higher tax exposure due to emission taxation; reputation costs connected with not taking any action on environmental stewardship. | CR Department is responsible for minimum standards on environmental performance and reporting. Together with our network of Green Beans it works on decreasing our energy and travel emissions. | ||
| Key opportunity | Potential upside | Action | |||
| Industry leadership around environmental management and reporting; additional services purchased by clients around greener advertising campaigns; more effective and innovative campaigns using sustainability as content. | Increased efficiency and cost savings; stronger reputation and visibility by clients around environmental performance; higher revenues and more diversified revenues; more successful new business performance. | CR Department is responsible for meeting CR objectives. Green Thread in ICP developed. Awareness of Future Proof increasing through engaging communications. Client credentials. |
| Key risk | Risk assessment | Risk mitigation | |||
|---|---|---|---|---|---|
 |
Group is not able to measure, manage and mitigate the potential (negative) community and environmental impacts of its downstream supply chain activities, from ethical advertising to green advertising campaigns. | Unintended impact of the Company’s services in the downstream supply chain due to: 1. a breach of standards, voluntary codes related to marketing communications, including advertising, promotion and sponsorship 2. a product/ service that is seen as unethical or insensitive, or socially exclusive and/or environmentally polluting. | CR Department is responsible for managing upstream and downstream supply chain monitoring and reporting. Together with brands it monitors compliance on Code of Conduct and industry codes and deploys wide range of community activities. | ||
| Key opportunity | Potential upside | Action | |||
| Industry leadership around meeting all industry requirements, and engaging positively with local community. Additional revenues and diversification of revenues due to new services. | Licence to operate; increased new business and client revenue opportunities; stronger client relationships; higher revenues due to new services. | CR Department is responsible for supply chain and community monitoring and reporting; community initiatives such as GlobalGivingTIME deployed. |
| Key risk | Risk assessment | Risk mitigation | |||
|---|---|---|---|---|---|
 |
Group is not able to report accurate, reliable and/or credible sustainability & corporate responsibility data, information and statements or is not able to evidence effective sustainability & corporate responsibility 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. | CR Department is responsible for measurement, monitoring and reporting; providing risk register; identifying and mitigating CR risks and meeting stakeholder expectations. The CR Steering Group is responsible for oversight. | ||
| Key opportunity | Potential upside | Action | |||
| Industry leadership from reliable and useful monitoring and reporting; exceeding client requirements. | Stronger client relationships; stronger reputation management. | CR Department is responsible for measurement and reporting, improving the quality, reliability and accuracy of the data and responding to client requests. |