Dechra - Sustainability Report 2022

Sustainable Governance and clear lines of accountability support the delivery of sustainable outcomes for us and our stakeholders

Board

The Board takes ultimate responsibility for the Group’s sustainability strategy and is committed to developing and implementing appropriate policies that create and maintain long term value for shareholders. Paul Sandland, Chief Financial Officer, is the Executive Director responsible for ESG, and Carina Kjellberg was appointed as the Group Sustainability Director in March 2021.

The Board is accountable for approving our Sustainability strategy and overseeing the delivery of our climate-related objectives. The Board or the relevant Committee reviews all key policies/handbooks on an annual basis, these include the Code of Conduct, Health and Safety Policy, Travel and Entertainment Policy and How to Raise a Concern Procedure.

The Board receives six-monthly updates from the Group HSE Director, which includes the activities of the Health, Safety & Wellbeing Committee. The Board is provided with ESG updates at each of its meetings and the Group Sustainability Director presents the strategy and progress on its implementation on a yearly basis.

The Board has oversight of the climate related risks and opportunities as part of the wider risk management and internal control framework. To enhance our commitment towards TCFD reporting further, a dedicated TCFD team has been established.

SET

Our Senior Executive Team (SET) is responsible for delivering on the climate-related objectives within their functional areas and business units. Each SET member had an ESG objective as part of their personal objectives within the 2022 financial year annual bonus plan.

The SET own the risk management process and is responsible for managing specific Group risks. Climate risk has been identified as a principal risk and has been discussed with each SET member.

The Dechra Board

The Board is responsible for the oversight of Dechra’s material sustainability impacts, risks and opportunities

Board Committees

Audit
The Audit Committee reviews certain of the Group’s systems and controls in relation to our business ethics (fraud, ABC) and the adequacy and security of the company’s arrangements for its employees, contractors and external parties to raise concerns, in confidence, about possible wrongdoing in financial reporting or other matters.

Remuneration
The Remuneration Committee reviews Dechra’s Executive Directors and the SET’s performance in relation to meeting sustainability goals in relation to the achievement of their bonus targets.

Other Key Committees

ESG
Oversee the development of and to make recommendations to the Board regarding the Group’s Sustainability strategy, establish objectives and targets for the Group’s ESG activities and oversee the measurement and reporting of performance against these targets. Oversee the activities of the committees that it has delegated authority to.

Health, Safety & Wellbeing Committee
Recommend and monitor the implementation of priorities to management and employees to achieve Zero Harm across the Group; actively monitor, measure, review and report on Health, Safety and Wellbeing compliance and performance.

The ESG committee has delegated authority to the Health, Safety & Wellbeing Committee and the following:

ActNow Ambassadors (70 employees from across the business)
Responsible for the acceleration of sustainable development within Dechra.

Sustainable Packaging Committee
This committee looks at each stage of the packaging life cycle from cradle to grave, to understand how Dechra can reduce its environmental impact when sourcing packaging materials through to the post-consumer choices during disposal.

Global Transport Logistics
Responsible for optimisation and improvement of warehousing, logistics and distribution at Group level through sustainable and smart solutions including reduction of emissions, alternatives to fossil fuel, sea transportation and volume optimisation.

Regional Giving Committees (17 Committees)
Responsible for the allocation of their allotted funds to charities that meet Dechra guidelines throughout the year, whether this be to one charity or a number.

Senior Executive Team (SET)
Responsible for implementing the ESG strategy within their functions/businesses.

ESG Committee

The ESG Committee is made up of representatives from across the Group. The ESG Committee met three times during the year.

The key duties of the Committee are to:

oversee the development of and to make recommendations to the Board regarding the Group’s ESG strategy;
establish objectives and targets for the Group’s ESG activities and oversee the measurement and reporting of performance against these targets;
review and approve any ESG related policies and their implementation and to monitor and review their ongoing relevance and effectiveness;
make recommendations to the Group in relation to projects, or elements of a project, that will or may have significant ESG impact;
identify the ESG matters that do, or are likely to, affect the Group and/or its overall strategy;
monitor current and emerging ESG trends and relevant regulations and review their impact on the strategy, operations and reputation of the Group and, where necessary, update ESG strategy and policies; and
work with the Head of Internal Audit and Risk Assurance to identify and mitigate ESG risks.

Group Sustainability Director

The Group Sustainability Director reports directly into the Chief Financial Officer, and is responsible for advising the Board and the Group on the sustainability issues and strategy. During the 2022 financial year, she presented the Sustainability Ambition to the Board and the Senior Executive Team at the Dechra strategy day.