Risk Assessment
The materiality assessment provided a clear understanding of the most relevant issues to the business and its stakeholders. By identifying and prioritising the most relevant economic, environmental, social, and governance topics, it helped establish where management attention and resources should be focused.
However, identifying material topics is only the first step. Understanding that an issue is important does not automatically explain the level of risk it creates, the opportunities it may generate, or how the business should respond. For this reason, the next stage of the project involved conducting a risk assessment.
The purpose of the risk assessment is to evaluate the potential impact of each material topic on the business, understand its implications, and determine the most appropriate response. Ultimately, how the organisation responds to these risks and opportunities will determine its ability to preserve and create value over time.
Through this process, several key insights emerged:
- A clearer understanding of the threats and challenges facing the business
- Greater awareness of the severity, likelihood, and potential implications of different risks, helping to establish priorities
- Recognition that sustainability challenges can also create opportunities for innovation, operational improvement, and business growth
- Increased awareness of exposure not only to financial and operational risks, but also to reputational, regulatory, and compliance-related risks
- Recognition of the importance of building organisational resilience and adopting a long-term mindset focused on adaptation, continuous improvement, and anticipating change rather than simply reacting to it
- Greater appreciation of how responsible management and proactive decision-making can strengthen the company’s credibility and reputation among stakeholders
In this risk assessment, all previously identified material topics were evaluated to determine their potential impacts and the stakeholders affected. Each topic was scored on a scale of 1–5 based on its likelihood of occurrence and the severity of its potential consequences, including financial, reputational, and regulatory impacts. A corresponding risk rating, ranging from low to high, was then assigned to each topic to support effective risk prioritisation and management.
The results reinforce the findings of the previously conducted materiality assessment. Food waste reduction, food safety and hygiene, employee health and safety, and regulatory compliance scored highly in terms of both likelihood and severity, making them key priority areas for the company.
These assessments have been instrumental in identifying the most critical and sensitive areas requiring attention and resources. They will serve as a foundation for setting the company’s sustainability goals and guiding future sustainability initiatives.
| ESG | ESG Topic | Type of Hazard | Who might be harmed & how | Likelihood | Severity | Risk |
|---|---|---|---|---|---|---|
| Environment | Food waste reduction | Inefficient inventory and overproduction | Environmental impact, higher costs, reputational criticism | 4 | 4 | High |
| Waste management & recycling | Improper waste sorting or disposal | Environmental impact, fines | 3 | 3 | Medium | |
| Sustainable sourcing | Suppliers not meeting sustainability standards | Brand reputation damage, customer trust loss | 3 | 3 | Medium | |
| Energy efficiency | Excessive energy use from inefficient equipment | Increased operating costs and emissions | 4 | 2 | Medium | |
| Greenhouse gas emissions | High carbon footprint from food sourcing and energy use | Climate impact, regulatory pressure | 2 | 3 | Medium | |
| Water management | Water waste or inefficient use | Environmental impact, increased utility costs | 3 | 2 | Medium | |
| Social | Food safety & hygiene | Food contamination, improper storage | Customers harmed by foodborne illness | 3 | 5 | High |
| Employee health & safety | Accidents in the workspace | Staff injury and lost work days | 4 | 4 | High | |
| Fair wages & labour conditions | Underpayment, overtime violations | Employee dissatisfaction, legal penalties | 3 | 4 | Medium | |
| Training & development | Lack of staff training | Service errors, safety incidents | 3 | 3 | Medium | |
| Diversity & inclusion | Discrimination or unequal opportunities | Employee wellbeing, legal risks, reputational damage | 2 | 3 | Medium/Low | |
| Governance | Regulatory compliance & ethics | Violations of food, labour, or environmental regulations | Fines, closure, reputational damage | 2 | 5 | High |
| Responsible marketing & promotion | Misleading sustainability claims or promotions | Customer distrust, greenwashing accusations | 2 | 3 | Medium |