We follow a four-step process for managing risk:
STEP 1: IDENTIFY
In 2018 we carried out a review of our material
sustainability issues. For this process we spoke to shareholders, joint venture
partners, non-executive directors and our retailers. We explored what was
changing in their sustainability priorities and concerns and the implications
they felt this had for our sector and particularly for the business.
Each factor was scored on the basis of its current
importance for the shareholders and how they expected it to change over the
next five years. These scores were combined with the views of the other
stakeholders and an internal score reflecting the significance of the issue to
company strategy and the ability of the business to influence of control the
issue. This analysis produced our priority order of material issues.
We review our material issues every four years so will update this work in 2022.
In 2020 we mapped risk overtime, looking at how our key sustainability risks would evolve over the short, medium and long term. The below Risk Heat Map shows the eight
sustainability risks we consider to be most significant for the business. The
map is based on the probability of the identified risk occurring and the
severity of the impact if it does occur. The analysis demonstrates that the
eight key sustainability risks are contained within the medium risk area of the
map. We consider each of the risk areas as being effectively managed but the
business is alert to their importance.
STEP 2: RESPOND
Responses to key sustainability risks are developed
by the Sustainability team working with the relevant
business and asset teams.
Responding to the Task Force for Climate related Financial Disclosures
We have been reporting against the TCFD recommendations since 2019. Our latest report is available here: Hammerson TCFD disclosures March 2021
STEP 3: MANAGE
Sustainability risks are actively managed by the business and form part of our wider corporate risk framework as detailed in our Annual Report and Accounts. More detail on our approach to managing our identified sustainability risks is contained within our Sustainability Risk Framework 2020 and our Corporate
Responsibility Governance structure.
STEP 4: COMMUNICATE
Our exposure to and management of
climate-related risks are communicated to the
Group Executive Committee and Plc Board through
regular updates by the Group Head of Sustainability.