Investor Presentaiton
Key risks - Orora and its business (continued)
While the risks set out in this section are stated to relate to Orora and its business, investors should consider that some or all of these risks
will also apply to Saverglass and its business, which Orora will own following completion of the Acquisition
Environmental compliance costs and
liabilities
Orora is subject to a range of environmental laws, regulations and standards in each of the jurisdictions it operates, including those that impose limitations on the discharge of pollutants
and contaminants to the air, soil, ground, water bodies and public sewerage systems and establish standards for the treatment, storage and disposal of certain materials and substances.
Compliance with these laws, regulations and standards requires significant expenditure of financial and employee resources.
In addition, any changes to such laws, regulations and standards may directly or indirectly, limit or force Orora to change the way it provides its products or services. For example, increased
regulation of air emissions linked to climate change and compliance with emissions trading schemes could potentially increase the cost of Orora's operations due to increased costs of
carbon permits and compliance and the adoption of new technologies and sources of energy, as well as impact the operations of Orora's customers.
Further, laws, regulations and standards relating to air, soil, ground and water quality, handling, discharge, storage and disposal of waste products are also significant factors in Orora's
business and changes to such requirements generally result in an increase to Orora's costs of operations.
Sustainability, including climate change
The direct and indirect impacts of environmental, social and governance (ESG) risks, including climate change, may affect Orora's licence to operate, assets and productivity. Climate change
may present risks arising from physical risks (extreme weather events) affecting business operations and certain customer segments, which could impact the future profitability and viability
of Orora.
The increasing severity of acute weather events (such as heatwaves, cyclones and storms) and chronic climate impacts may affect one or more of Orora's manufacturing plants through
physical damage, operating costs and ability to operate. These weather events may be sudden and acute or more gradual in nature. For example, a plant may be damaged by storms or
flooding which requires extensive repairs and may impact the ability to have uninterrupted use of that facility. Transitioning to a lower-carbon economy may entail extensive policy, legal,
technology and market changes to address mitigation and adaptation requirements related to climate changes. These may require Orora to incur significant costs to address these changes.
Operating permits and licences
Orora is subject to a range of government legislation, regulations and policies in each of the jurisdictions it operates. To comply with these obligations, Orora is required to hold and comply
with various operating permits, licences, approvals and authorisations from regulatory bodies. If any such permits, licences, approvals or authorisations are not obtained, revoked or not
renewed, or if Orora breaches its permitted operating conditions, it may be curtailed or prohibited from continuing or proceeding with its operations, or may lose its right to operate the
relevant sites or facilities, whether temporarily or permanently. This may have a material adverse impact on Orora's operational and financial performance. In addition, any renewal of any
such permits, licences, approvals or authorisations on terms that are more onerous or otherwise adverse to Orora's interests may have a material adverse impact on Orora's operational
and financial performance.
43
OR RA
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATESView entire presentation