Integrated Report 2023

Related to ESG

The authority supervising risk management at the Capital Group is the Risk and Compliance Committee appointed on 15 September 2022 by way of Resolution No. 11/2022 of the President of the Management Board/CEO of Grupa KĘTY S.A.

Standing members of the Committee are: the Management Board Member/Financial Director, the Treasury Director, the Compliance and Risk Management Director, the Internal Audit Director, and the Risk/Compliance Coordinators identified by the Heads of operating segments.

  • Resolution on the appointment of the Risk and Compliance Committee;
  • By-law of the Risk and Compliance Committee;
  • Risk Management Policy; and
  • Compliance Management Policy
  • Risk Management System Procedure.

In 2023, there were held 11 meetings of the Risk and Compliance Committee, in which the following matters were discussed and recommended, among others:

  • acceptance of the current register of significant risks of the Capital Group, including exclusion of insignificant risks from the risk register, consolidation of similar risks, and reflection of new significant risks in the register;
  • approval of risk charts updated during the annual risk review;
  • current monitoring of Key Risk Indicators (KRI);
  • scope and principles of operation of an IT application which enables the registration of significant risks and opportunities, their measuring and reporting in the form of the adopted indicators.

In 2023, the Risk and Compliance Committee recommended the adoption of the risk register containing 31 corporate risks important for the Capital Group. Risks referring to the Capital Group have their Central Risk Owners, whereas risks in other areas have Segment Risk Owners. A complete description of risk owners may be found in section ’Corporate risks’ of the report.

Two risks owned by the CSR Director have been defined:

  • the risk of non-performance or lack of update of the ESG Strategy, resulting in the organisation’s non-compliance with new legal and business requirements;
  • the risk of non-compliance with the principles of ethics, resulting in non-ethical culture of the organisation and claims on account of breaching the Code of Ethics.

Additionally, within the 31 material risks there are some that are not owned by the CSR Director, although linked to the ESG area, i.e.:

  • the risk of insufficient quantity of water for production purposes, as related to the negative impact of climate change, lower ground water level, or rationing of water from underground water intakes at Grupa KĘTY S.A. – segment-related risk;
  • the risk of ineffective OHS policy, which may result in fatal accidents or permanent health impairment, as well as staff shortages difficult to back up – segment-related risk;
  • the risk of credibility loss by the Company due to rejection from stock listing by the Management Board of the Warsaw Stock Exchange – central risk owned by the IR Director;
  • the risk of malfeasance, understood as actions or omissions in breach of the generally binding laws – central risk owned by the Compliance and Risk Management Director;
  • the risk of environment pollution as a result of operations, resulting in the plant closure and high administrative penalties – central risk owned by the Director for Quality and Environmental Protection;
  • the risk of missing effective supply chain, which results in delays or stoppages in production/sales order performance – segment-related risk;
  • the risk of fire, flood or other disaster, resulting in losing operating facilities (plant, warehouse), resulting in limiting or stopping production processes and incurring financial losses on that account – segment-related risk.
Corporate risks
Compliance