Resilient business

With a strong commitment to ethical and responsible business conduct, honesty and integrity, both within the Group and throughout our value chain, Pepco maintains high standards of corporate governance underpinned by clear policies which set a culture of responsible and resilient business for all our operating companies, colleagues and suppliers.

Business ethics and human rights

Pepco Group is a multinational group operating across a wide range of geographies and jurisdictions. Strong business ethics and accompanying policies help to encourage responsible practices, protect human rights across the Group and its value chain and maintain our reputation with our stakeholders. We are aware of the potential impact on the wellbeing and livelihoods of our employees as well as the people within our supply chain that any breach of ethical standards could have.

 

Our approach

Pepco Group is committed to ethical conduct, honesty and integrity. The Audit Committee exercises oversight over the Group’s approach to ethical and responsible business practices and reports to the Board on topics as appropriate. The Group is committed to embedding ethical practices across its businesses.

Anti-bribery and corruption

Pepco Group has an Anti-Bribery and Corruption Policy which sets out the standards of conduct which we expect of our workforce and our business partners. The policy includes our procedure regarding hospitality and the giving and receiving of gifts and political donations, and the mechanisms through which our workforce can report concerns relating to misconduct, including confidential reporting.

Human rights

We recognise that whilst our business activities can contribute positively to the lives and livelihoods of our stakeholders, there is the potential for impacts on human rights and therefore we have a zero-tolerance approach toward any infringements or violations of human rights in our business or identified in our supply chain. All forms of modern slavery, including child labour, forced labour and human trafficking, are strictly forbidden by our Code of Conduct.

We have an Ethical Trading Code of Conduct for suppliers and compliance with this Code of Conduct is a key condition of doing business with us. The Code is closely based on the Core Conventions and the Fundamental Principles and Rights at Work of the International Labour Organization (ILO), a UN agency.

Grievance mechanisms and remediation

Pepco Group has a Speak Out Policy and provides colleagues across the Group various mechanisms by which to report inappropriate conduct, including an external independent reporting facility for whistleblowing.

Corporate governance

Strong corporate governance, business resilience, transparency and accountability are essential in the effective management of our business, promoting long-term sustainability and value creation. Governance frameworks are required to ensure the effectiveness of the Board and to protect the interests of our shareholders and other stakeholders, also helping to build trust, without which we would not be able to operate.

Data protection and privacy

Without core online operations, Pepco Group does not hold significant amounts of customer data. Nonetheless, strong data controls, which involve handling customer data with care and respect, are essential in protecting the information we do hold.

Implementing robust and responsible data protection and privacy measures are essential to ensure that Pepco Group meets regulations and protects customer and supplier confidentiality and security of personal information. We demonstrate commitment to our customers by prioritising data protection.

We are committed to delivering growth and long-term value for our stakeholders whilst also maintaining high standards of ethics, honesty and integrity, managing our impact on the environment, developing our colleagues, and enhancing the communities across our supply chain.

We apply a holistic approach in our assessment of risk and in the development of our ESG strategy, adapting our approach in response to the evolving regulatory landscape.

Stakeholder engagement

In FY23, we conducted our first double materiality assessment to determine the most material environmental, social, governance and human rights topics for the Group. This is a key foundational step for reporting under both GRI Standards and the EU’s Corporate Sustainability Reporting Directive (CSRD). Undertaking a materiality assessment helps us to identify and gain insight into the issues that matter the most to our key stakeholder groups. It enables us to assess which issues will have the greatest impact on our business and also supports us in identifying areas of emerging importance.

Materiality review

We conducted our first double materiality assessment in FY23 to determine the most material environmental, social, governance and human rights topics for the Group. This is a key foundational step for reporting under both GRI Standards and the EU’s Corporate Sustainability Reporting Directive (CSRD).

Undertaking a materiality assessment helps us to identify and gain insight into the issues that matter the most to our key stakeholder groups. It enables us to assess which issues will have the greatest impact on our business and also supports us in identifying areas of emerging importance.

The materiality assessment approach considers the impact of topics both outwardly on the economy, environment and society and inwardly on the Group (i.e. how sustainability issues might create financial risks for the Group or affect its ability to create value over the long term).

Our material topics map to our existing ESG Strategic Framework. Our future reporting and strategic focus will reflect our most material topics.

Strong societyValue for our customers and communities
Greener environment
Better products
Waste and packaging
Climate and emissions
Valued supply chainResponsible supply chain
Exceptional employerEmployment
Underpinned by our commitment to strong
corporate governance business ethics
Business ethics and human rights
Corporate governance
Data protection and privacy

ESG management

The Group CFO is responsible for setting the Group’s ESG Strategic Framework and has overall responsibility for execution. The Group CFO is supported by senior management teams in the Group’s operating companies, which are responsible for day-to-day operational decision making with regards to ESG strategy execution, as well as the Group’s Head of ESG. Updates on ESG progress are made for approval and review to the Audit Committee of the Group Board each quarter.