We define risk as any event that may interfere with the company’s ability to achieve its strategic objectives, uphold its core convictions or disrupt its operations. We understand that effective risk management is critical to the company’s ability to successfully pursue its objectives and strategies.

The Enterprise Risk Management (ERM) program identifies, assesses and monitors enterprise-level risks. It embeds, sustains and supports a culture of responsible risk-taking and opportunity identification throughout the organization and strives to provide leadership with actionable risk intelligence to enhance decision making.

In order to meet the ERM program’s objectives, each identified enterprise risk is organized into one of six categories (which includes an ESG risk category) and is mapped to at least one of the company’s strategic objectives or core convictions. A cross-functional group of associates, organized by risk category, participates in an annual enterprise risk assessment. The assessment results are used to determine the significance of each enterprise risk and are reviewed with the executive team for alignment. The ERM team monitors enterprise risks determined to be most significant and their related risk management activities and provides periodic updates to the executive leadership team and Board of Directors and/or its committees.

The ERM program is a valuable tool in helping achieve strategic objectives, including those related to climate change and ESG. We continuously evaluate the ERM program and periodically identify and implement initiatives to improve its effectiveness and relevance.

For more information on how we identify, assess and respond to climate-related risks and opportunities, please see our 2024 CDP climate change and water security response and TCFD Index.