DSV Annual Report 2022

34 DSV Annual Report 2022 Corporate governance and shareholder information = III Employees - Retention and attraction Risk description Our employees are our most important asset and vital to ensuring that we succeed when it comes to executing on our strategies and meeting our financial targets. As freight forwarding is a people-reliant service offering, we depend on highly qualified management teams and employees with technical and operational qualifications, customer and market insights at all organisa- tional levels. Failure to attract new talent or to retain existing, experienced key employ- ees can potentially have long-term consequences for the operational, strategic and financial development of our company. Mitigation strategies We strive to make our company an attractive place to work by offering a supportive and inspiring working environment for all employees. This includes ensuring that our office and warehouse premises are modern and safe places to work as well as encouraging a safe and healthy working environment. We have established a performance culture centred around the empowerment of the individual, which allows our employees to take responsibilities, make decisions and influence their everyday work life. We also offer clear career-advancing opportunities to talented employees. We implement this strategy through several initiatives driven by both local management teams and our Group HR department. Examples include initiatives to promote our diversity and inclusion policy, DSV Academy, talent development programmes and retention bonus programmes for key employees. Risk assessment During 2022, it remained a challenge to recruit new candidates for certain open positions and in some cases to retain existing colleagues. Skilled employees and managers will most likely continue to be in high demand, but as the global economy slows down, we expect parts of the labour markets to ease. Compared to previous years, we were able to retain a stable turnover ratio for our employees, despite the challenging market in 2022. The integration of GIL now completed, we see that we have managed to retain key staff throughout the GIL organisation, as we intended. Despite the positive notes, it is our assessment that the challenges involved in recruiting and retaining staff for key positions have intensified. This implies that the employee risk has slightly increased. Compliance - Increasing regulatory complexity Risk description At all levels of our organisation and in all the regions and countries we do business, we are committed to honest and ethical business practices and complying with all relevant international and local regulations. As a result of our global operations, we are subject to extensive national and international regulatory requirements. In particular, regulations relating to tax, customs, VAT, data privacy and competition law continue to in- crease in scope and complexity. Trade embargoes impacting international transports is another area currently increasing in magnitude. Cases of non-compliance may carry a long-term impact on our public reputation, which may in turn have a negative impact on our relationships with customers and other stakeholders. Additionally, cases of non-compliance may lead to significant fines, claims, etc., for the Group, members of our Management or our employees. Mitigation strategies 'We do not deal in compliance' is a mantra which is well-known throughout the DSV organisa- tion. This fundamental principle has been defined to safeguard the company and its employees, but also because we believe it is the right way to run a business. Our internal procedures, systems and employee training programmes are designed to ensure awareness of this core principle and to ensure proper understanding and compliance with relevant legislation and our Code of Conduct. Our compliance framework is integrated into our business processes, containing clear guidelines on how to identify compliance-related issues and how to act accordingly. In addition, communi- cating and creating awareness of relevant issues is high on our agenda and activated through regular news updates, global newsletters, webcasts and internal conferences. Significant compliance-related risks are monitored and managed at Group level in close cooperation with our local business units. Risk assessment Following the trend from previous years, regulatory requirements continue to expand in number and complexity. The fact that our operational activities span more than 80 countries and jurisdictions adds to this complexity. To ensure adherence, we keep a close track of changes in the regulations governing international taxation, transfer pricing as well as goods and country restrictions - the latter currently emphasised by the international sanctions imposed as a result of the Russian-Ukrainian war. The integration of the GIL business into our compliance framework was completed in 2022, significantly reducing the risk of non-conformance with existing DSV compliance processes. Although the GIL integration has been successfully completed, regulatory complexity remains high. In addition to this, the current geopolitical situation also poses chal- lenges. This leads us to conclude that the overall compliance risk exposure has increased slightly.

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