Managing Risk and Leveraging OpportunitiesRisk of increased stakeholder concerns caused by caused by negative consumer sentiment over the use of plastics and the toughening of government regulations on plastics.● Acquisition or loss of consumer base● Winning or losing trust from shareholders● Increase of costs for responding to environmental and social issues● Discriminatory TaxationThe risk of product-related quality and food safety incidents.● Losing trust from consumers● Decline in earnings due to product recall or mass disposal of defective products● Loss of opportunities due to customer penaltiesRisk of violations of laws, internal regulations, and our code of ethical conduct.● Loss of customer and consumer trust● Damage to brand and corporate reputation● Regulatory penalties● Economic loss through fraudRisk of the stable supply of goods being impeded due to issues in production and logistics operations, or changes in weather and consumer behaviors● Drop in sales volume and revenue● Losing trust from customers● Achieving CSV goals contributing to the development of a sustainable society● “World Without Waste” initiatives including, increasing the use rate of recycled PET resin, developing more light-weighted packages and collecting used PET bottles more effectively● Proactive response in line with ESG and TCFD reporting requirements● Supplier quality audits and quality certifications● Employee awareness of quality control in all processes from manufacturing to sales● Enhance the quality control and reporting system so that consumer/customer complaints receive a timely response● Robust identification and response programs that enable us to quickly and efficiently deal with quality/food safety issues● Strong Tone from the Top and continued internal communication on corporate behaviors● Ethics & Compliance Committee meetings held regularly● Minimizing employee fraud opportunities by rebuilding the business processes, organizational structure and IT systems● Building a flexible supply system to respond to changes in the market environment● Investment in infrastructure (production lines, etc.) that will enable the group to respond to the increase in demand during the peak seasons more readily● Systems enhancements to enable timely sharing of inventory status ● Strengthen supplier management and supervisionSustainabilityQuality andfood safetyRegulatorycompliance andethicsManufacturing,logistics &infrastructureRisk categoryDescription and potential impactsKey mitigations63Medium risks
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