Investor Presentaiton

64 0x хо хо 65 99 Woolworths Group Annual Report 2023 Sustainability Risk movement: Our commitment to sustainability is a core part of living our purpose, values, and ways-of-working. We are also committed to protecting the rights of workers across our global supply chain. By focusing on how we manage our environmental impacts, our contribution to a healthier and more inclusive society, how we source our products, and how we protect the rights of workers; we will maintain our position as a responsible and trusted retailer. Climate change-related risks such as transition risk, physical infrastructure risk, and food security risk could impact our business operations and fall short of stakeholder and societal expectations if not managed appropriately. Our risk management approach includes: • • monitoring our commitments within our Group Sustainability Plan 2025 and reporting our progress to our governance forums to demonstrate that we are accountable, maintaining our leadership intent and effectively integrating sustainability across our businesses and platforms annual review of the human rights program, including assessment against key external benchmarks and stakeholder feedback for continuous program improvement and refinement of our controls. Our programs include due diligence. requirements for specific suppliers, plus self-assessments, audits, and contractual requirements assessment and modelling of climate change scenarios which feeds into our operational resilience planning and decision making. Further detail on our material sustainability-related risks can be found on pages 42 to 59 as well as our Sustainability Report. Committee: B S G RAS Lead: Chief Sustainability Officer Technology Risk movement: Our technology footprint continues to grow in size and complexity due to changing business or regulatory requirements. Associated with this is the increasing threat of cyber and risk. As a result, we continue to evolve our cyber and risk related capabilities to strengthen operational and data security. Our risk management approach includes: • . continually enhancing our critical technology processes, and cyber control frameworks and standards supported by investment in technologies, systems, infrastructure, and capabilities to provide secure, stable and available platforms regular review and monitoring of our information technology infrastructure and applications to assess security threats, supported by full incident response and management programs engagement of independent parties to provide assurance over the adequacy and strength of our cyber and security processes and controls replacing obsolete technology assets and/or keeping our technology assets current ongoing review and monitoring of controls, supported by independent assurance activities to assess their effectiveness governance and oversight mechanisms to adapt to the ever-changing threats and regulatory requirements that support decisions and investment. towards technology enablement, system availability, and information security. Committee: B R G RAS Lead: Chief Information Officer & Director, Group Enablement Supply chain and operational resilience Risk movement: Minimising interruption in our international and domestic supply chain means that we are able to maintain the availability of products and services to the customers and communities we serve. This includes understanding the physical impacts of climate change on our assets and operations. Over the past 12 months the resilience of our supply chain has been tested as we responded to post pandemic-related absenteeism, extreme weather events, and geopolitical tensions. Our risk management approach includes: review and approval of the Group's supply chain strategy and network plans by the Board with capital investment to build network resilience by optimising our distribution and customer fulfilment centres, transport operations, and last-mile deliveries business resilience frameworks, standards and tools to provide guidance on how we prevent, prepare, respond to, and recover from key events maintaining our critical infrastructure risk management program to meet our requirements under the SOCI Act monitoring and responding to key events that threaten the continuity of our operations through crisis and emergency management teams and protocols working closely with our supply chain and transport partners to respond to changes in our environment internally and externally, including the impacts of climate change forward-looking scenario and business continuity planning to manage the flow and distribution of product and maintain operations for natural disasters or pandemic-related events. Committee: RAS Lead: B G Managing Director, Primary Connect & Chief Supply Chain Officer; Chief Information Officer & Director, Group Enablement Financial Risk movement: We are committed to providing accurate, timely and transparent financial disclosures whilst building financial strength and optimising our financial performance. We are exposed to adverse movements in foreign exchange, interest and inflation rates that could impact profitability and the availability of liquidity. Liquidity management, including making timely payments to team members and suppliers, is an important operational requirement and necessary to support growth initiatives. Our risk management approach includes: managing specific treasury risks, interest rates, foreign currency, and counterparty risks in line with our treasury policy regular monitoring of financial performance, including key performance metrics, and revision to short-term and longer-term financial targets to incorporate changes to the external market. Results are subject to external audits conducting sensitivity analysis and scenario planning to assess the adequacy of our funding and long- term liquidity position, including our ability to deliver strategic initiatives establishing dedicated cross- functional working groups to monitor and respond to areas of emerging risk. For example, the impact of inflationary pressures an insurance program that protects us against accidents, natural disasters, and other events. We have a range of externally placed insurance policies and self-insured programs which we monitor to help us manage our risk exposure. We consider our insurance program to be sufficient in the context of the nature and scale of our business ongoing monitoring of new accounting, financial and tax regulations and implementing required changes to enable compliance. Committee: B A G RAS Lead: Chief Financial Officer Strategy and transformation Risk movement: We aspire to create better experiences for our customers, teams, communities, and other stakeholders. Our Group businesses and platforms come together to deliver on our purpose and strategic objectives in a competitive retail environment. Failure to execute our strategy may impact our ability to remain competitive and deliver our growth plans. As such, we manage strategy and transformation risks by working with agility and end-to-end as one team. Our risk management approach includes: • dedicated strategy teams, transformation teams and change management capabilities that partner with the business to assist with evaluating and mitigating the impact of continued and significant change on our operations and our team considering risks in the operational and strategic planning rhythms, quarterly delivery cycles, and through our M&A activities. Review and approval of our strategies by the Board and regular updates on progress against agreed metrics consideration of risks when developing significant projects through our project risk framework assigning accountability of our strategic objectives to key management in the annual strategy and quarterly delivery cycles key management and governance forums to review and analyse key metrics and trends with regards to customer buying patterns, supplier metrics, team results, the competitive landscape, regulatory changes, future sales propositions, promotions, and marketing activities to monitor and adjust priorities. Committee: B G RAS Lead: Chief Executive Officer; Chief Transformation Officer Legal, regulatory and governance Risk movement: We are subject to a wide range of legal and regulatory requirements, in relation to health and safety, product safety, employment, competition and consumer, and corporate regulation. Failure to comply with any legal and regulatory requirements could negatively impact our team, customers, operations, shareholders and reputation, and expose the Group to investigations, litigation or prosecution which may adversely impact our financial performance and licence to operate. Our risk management approach includes: • dedicated legal compliance and risk teams who partner with our businesses and other operations to advise on and monitor legal, regulatory, and public policy changes and issues and support innovative opportunities our code of conduct which provides clear guidance to all of the Woolworths Group team on our compliance and behavioural expectations, and includes a clear statement of our core values having a compliance risk framework, business-specific operational compliance plans, and assurance programs, which support effective operations and identifying any emerging or changing regulatory impact new starter and annual compliance training programs which are required to be completed by all team members our ethics reporting service (Speak Up), which encompasses a formal whistleblowing process through which we actively encourage current and former team members, suppliers, and their families to report, anonymously or otherwise, any wrongdoing or breaches of the law. Committee: B R G RAS Lead: Chief Legal Officer 1 highlights Performance 2 Business review 3 Directors' Report 4 Financial Report LO 5 Other information