50 JUST GROUP PLC Annual Report and Accounts 2020
Section 172 – Examples of decisions during the year continued
S172 FACTOR/ KEY STAKEHOLDERS
AREA OF DECISION
MATTER CONSIDERED
WHAT WE DID
The Board considered whether to recommend the payment of a final dividend taking into consideration the key focus on capital self-sufficiency along with regulatory and economic uncertainty. Environmental, Social and Governance (“ESG”) factors are a growing focus for the Board.
The Board reviewed the dividend policy taking into account feedback received from shareholders and the Board’s commitment to achieve capital self- sufficiency. The Board concluded that, given the importance of improving the Group’s capital position, it was not in the best interests of shareholders as a whole to recommence dividend payments at this time.
CAPITAL AND DIVIDEND POLICY
SHAREHOLDERS
In addition to the Board’s diversity and inclusion strategy covered separately, one of the key engagement priorities agreed by the Board is to become a greener business and implement plans to support a more sustainable environment. Key focus areas have been the continuation to modernise the workplace to reduce the Group’s carbon footprint by integrating the Group’s property and technology strategies, and the development of policies and programmes to ensure business is conducted in a safe, environmentally sound way and in line with relevant legislation and regulations. 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. The scope of the project has been extended to ensure compliance with climate change disclosure requirements and to ensure that climate risks and opportunities are embedded into decision-making at every level including the Group Board. During the year, we launched our first Green Mortgage, which is an example of a retail product encouraging energy improvements in customers’ homes. In addition, debt investors subscribed £250m to the Group’s first Green Bond. During the year, the Board assessed whether COVID-19 has had an impact on the business in terms of the risk of modern slavery in the supply chains and operations, and concluded that there had been no impact in this respect. The Board reviewed and approved the Group’s Modern Slavery Statement, which is available to view at www.justgroupplc.co.uk. As more fully detailed on pages 44 to 45 in our report on relationships with stakeholders, we have a fair, open and collaborative relationship with our suppliers and business partners. During the year, the Board reviewed and approved the Group procurement and outsourcing policy that requires prospective suppliers to provide evidence of their environmental management processes. We use environmental performance as a criteria when appointing new suppliers.
SUSTAINABILITY
COMMUNITY AND ENVIRONMENT,
EMPLOYEES, CUSTOMERS, INVESTORS
The Board considered how the Group deals with suppliers.
PROCUREMENT AND OUTSOURCING
HIGH STANDARDS OF BUSINESS CONDUCT, SUPPLIERS AND PARTNERS, ENVIRONMENT
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