Just Annual Report and Accounts 2021

JUST GROUP PLC Annual Report and Accounts 2021

SECTION 172 STATEMENT – EXAMPLES OF DECISIONS DURING THE YEAR CONTINUED

AREA OF DECISION

MATTER CONSIDERED

WHAT WE DID

S172 FACTOR/ KEY STAKEHOLDERS

Community and environment,

SUSTAINABILITY The Board considered and adopted the Group’s sustainability strategy.

The Board considered and adopted its sustainability strategy with particular focus on embedding a sustainable framework and practices as part of its wider strategy and culture. Following an assessment, the Board committed to clear and measurable sustainability targets for the Group’s operations to be net zero by 2025 and its investments and supply chain to be net zero by 2050, with a reduction of 50% by 2030 in line with the Association of British Insurers (“ABI”) climate change roadmap. The Board also appointed Steve Melcher, an independent Non-Executive Director, as its lead on sustainability matters. Steve Melcher will challenge and guide management in relation to our targets and wider sustainability trends in his role as lead on sustainability matters in the year ahead. As part of its discussions on strategy, the Board considered how it can align the Group’s sustainability activities to its strategic priorities. Engaging colleagues to improve Just’s footprint and supporting them to reduce their own footprint are examples of sustainability activities that the Board endorses in alignment with the priority “Be proud to work at Just”. Other priorities as part of the Group’s sustainability strategy looking forward include determining how to score the carbon footprint of Just’s supply chain and how to engage with customers to understand and support their requirements and expectations with regard to climate. Executive Directors’ performance-related criteria now include sustainability metrics to ensure their remuneration is aligned with the Company’s long-term sustainability strategy. Following the issuance of a Green Bond in 2020, the Group has further strengthened its broader sustainability credentials through the issue of a new RT1 bond which was designated sustainable and it has committed to invest the proceeds in sustainable investments. Each of the Board Committee’s terms of reference and Group policies have been reviewed and, where appropriate, specific responsibilities have been included to consider climate change matters and the impact on the Group’s targets. Board and Committee papers now include information on the impact of any proposals on the Group’s sustainability strategy. The oversight of a climate change project has been a key focus area for the Group Risk and Compliance Committee on behalf of the Board, which focuses on the steps taken to better understand the longer-term climate risks to the Group’s investment and property portfolio, and to embed climate risk factors in the risk management framework. This included the addition of a new high level climate risk appetite, which was approved by the Board during the year. Throughout the Annual Report you will find information on climate change and the steps taken by the Group to strengthen its sustainability credentials. During the year, the Board considered and approved a new investment governance process, which allows for decisions to be taken in relation to the approval of different types of investment outsourcings based on materiality and risk. The process has due regard to the Group procurement and outsourcing policy, whilst recognising that investment outsourcings are technical and require specialist oversight in a different manner to other outsourcings. The process was developed to recognise and place more emphasis on the key role of the Investment Committees of Just Retirement Limited and Partnership Life Assurance Company Limited in the review and approval process for the Just Group entities entering into third party investment outsourcings. It also aligned the process with the key Prudent Person Principle requirements under the Solvency II Directive. The Board reviewed and approved the updated Group procurement and outsourcing policy, which ensures that high standards of honesty, impartiality and integrity are maintained in our business relationships. Just takes a zero tolerance approach to modern slavery and implements various measures to prevent modern slavery and human trafficking in our supply chain as covered in more detail in the Modern Slavery Statement approved by the Board. The Modern Slavery Statement can be found on the Company’s website. In addition, our supplier contracts are being progressively updated to ensure suppliers are compliant with anti-slavery and human trafficking laws.

colleagues, customers, suppliers, investors

High standards of business conduct, suppliers and partners

The Board considered governance oversight and processes for procurement

PROCUREMENT AND OUTSOURCING

and outsourcing arrangements.

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