Evolving Our Approach to Sustainability
While we remain pragmatic in our approach to sustainability, our commitment to transparency evolves alongside these standards. The outputs of our IFRS S1/S2 adoption efforts are reflected in this report, specifically in the Governance, Risk Management and Strategy sections. Full adoption will be completed and reported in subsequent disclosures through 2026.
Strategy, Metrics, and Targets
Adapting strategies based on changing landscape
Our strategic approach is founded on the principle of double materiality, which informs the continuous development of our Sustainability Strategy. This ongoing process, involving JGSHI and its subsidiaries, is set to culminate in 2026 that includes agreed metrics and targets. Upon completion, we will publish our enhanced strategy which will reflect our commitment to sustainable growth and future readiness.
Improvement
In today's rapidly evolving business landscape, harnessing insights from sustainability risk management is crucial for developing a robust sustainability strategy. This journey begins with the implementation of double materiality, a concept that emphasizes the importance of considering both financial impacts and stakeholder concerns in sustainability risk identification, assessment, and prioritization.
Implementing Double Materiality
Considering Financial Impact to Business
Guided by our 5-year Strategic Plan, we have identified risk and opportunity areas that can materially impact the execution of our strategies and the achievement of our long-term goals.
A key step in this process is assessing the financial impact of sustainability risks. By using financial impact as the primary criterion for rating and prioritizing risks, JGSHI ensures that our risk management efforts align with our overall financial health. We then match our top risks to Sustainability Accounting Standards Board (SASB) related topics, ensuring that the most relevant and common material issues across the sectors we operate in are addressed.
To enhance preparedness, scenario analysis is incorporated to evaluate potential impacts of transition and physical risks. This forward-looking approach allows us to anticipate and plan for various future scenarios, thereby strengthening our resilience.
Considering Impact to Stakeholders
In addition to financial implications, it is essential to consider the impact on stakeholders. By understanding and addressing the concerns of stakeholders, we can build trust and foster long-term relationships. This holistic approach ensures that sustainability efforts are not only financially sound but also socially responsible.
Developing Sustainability Strategy
With a comprehensive understanding of sustainability and climate risks, the next step is to develop a sustainability strategy. This involves identifying key focus areas based on consolidated and prioritized risks. By focusing on the most critical issues, we can allocate resources effectively and drive meaningful change.
The development of key strategies, metrics, and targets is crucial for guiding sustainability efforts. Clear and measurable goals provide a roadmap for action and enable us to track progress over time.
Continuous Improvements
Sustainability is a dynamic field, and continuous improvement is essential for long-term success. Implementing a feedback loop allows us to gather insights from the implementation process and refine their strategies accordingly. This iterative approach ensures that sustainability efforts remain relevant and effective in the face of changing circumstances.
Adaptation is also key to sustainability. As new information emerges and stakeholder expectations evolve, we must be prepared to adjust their strategies. Flexibility and responsiveness are critical for navigating the complexities of sustainability and achieving lasting impact.
