·      We quickly and decisively responded to the macroeconomic impact of the conflict in Ukraine through our coordinated cross-function cross-region Group Incident Management team and supporting operational groups

·      We continue to respond in a way that leverages our brand appeal and global reach across multiple customer segments and regions to mitigate reliance on a particular customer group

·      We recognise the importance of Mainland China and the Chinese consumer for the luxury industry

·      We continue to assess shifts occurring in the industry and in consumer preferences to ensure our plans are dynamic and responsive to the market

·      We monitor external macroeconomic and regulatory changes and perform horizon scanning supported by insights from the Group Strategy, Commercial and Finance teams

·      Our steering committee continually monitors the evolving post-transition trading relationship between the UK and EU, and oversees our mitigation plans

·      While the business has experienced some short-term disruption, ongoing mitigation reduced the risk to all business activities, including supply chain, trade compliance, IP and people

·      We engage with UK government departments and other external stakeholders to ensure they are fully

informed of our circumstances

·      Oversight of mitigation of reputational issues by the Ethics and Risk Committees

·      Audit of reputational risks, continued monitoring of risks and development of mitigation plans

·      Undertaking marketing risk analysis/risk register and implementation of mitigation procedures

·      Codified incident management policy, monitoring of social networks and response procedures

·      Review process in place for engagements with collaborators, influencers and/or celebrities

·      Approval processes and editorial controls in place to ensure all product and content is reviewed and signed off prior to external release

·      Development of due diligence policy in connection with retention of talent and partners

·      Training and monitoring of adherence to Burberry's Model Wellbeing Policy for all people who engage with models on Burberry's behalf, including employees, freelancers, casting agents, contractors and external third parties

·      Training and monitoring of adherence by personnel to the requirements in the Group's Responsible Business Principles

·      Continued supplier audits and supplier training programmes to ensure compliance in day-to-day operations

·      Continued development of our global Diversity and Inclusion strategy as well as the widening of our Internal Diversity and Inclusion Council membership to support its implementation

·      Renewal of Cultural Advisory Council members

·      Updated and consolidated our Code of Conduct for our people and third parties to ensure they act lawfully and in accordance with Burberry's values

·      Sustained execution of Mainland China strategy, including localised campaigns and additional marketing spend to support growth targets

·      Building new social partnerships in Mainland China in strategic locations, and developing innovative customer experiences, storytelling and products that are locally relevant

·      Sustained investment in inventory and technology to support our Mainland China digital business across our own platform and those of our third-party partners

·      Targeted investments supporting tailored strategies in other regions to diversify our global consumer profile

·      Burberry hedges some external purchases of goods and some inter-company balances using financial instruments. Burberry does not hedge anticipated intra-group foreign currency transactions

·      Burberry monitors the desirability of hedging the net assets of non-sterling subsidiaries when translated into sterling for reporting purposes. We have only entered into modest transactions for this purpose

·      Burberry monitors the overall impact of unhedged exchange movements and provides guidance to shareholders if exchange rates move on a quarterly basis

·      Governance provided through a cross-functional Cyber Security Steering Group with Executive membership and sponsorship

·      Continued investment in information security capabilities

·      Second line assurance checks reporting on control effectiveness to Executive and IT management through monthly scorecards

·      24/7/365 security monitoring and analytics capability supported by security incident response processes

·      Information Security Advisory function to embed security in new projects and initiatives

·      Security training and awareness and phishing tests rolled out to employees globally with completion monitoring

·      Implementation of solutions to help detect personal and sensitive data loss with improved control over user access management

·      Test responses to cybersecurity incidents through simulations

·      Data Privacy Steering Committee, a cross-functional group to review data controls around existing systems and assess potential data risks (from both a legal and reputational perspective) associated with new IT, Marketing, Retail and Digital initiatives across Burberry

·      Ongoing collaboration between the Data Protection office, Legal, IT and Information Security functions to ensure policies are adhered to in respect of the appropriate collection, security, storage, retention and deletion of personal data

·      In line with other organisations, Burberry encounters information security incidents from time to time and has policies, processes and technologies in place to detect and respond to these as appropriate

·      Both Cloud Governance and Ransomware Audits were completed in January 2022 by the Internal Audit team in line with the NIST framework

·      IT Portfolio Forum in place with Executive representation to support IT investment decisions and oversee delivery of prioritised IT programmes and initiatives

·      IT function has clear alignment between the IT teams, the strategic pillars, business functions and operations

·      Implementation of controls to help maintain continuity of the Group's IT systems, including evolution of IT recovery plans, which would be implemented in the event of a major failure

·      A tested Group incident management framework is in place to report, escalate and respond to high-impact events

·      Further evolution of the IT operating model with a Business Systems Platform function to elevate the performance and security of core systems, supported by a business-wide steering committee

·      Elevated focus on key risks to support decision making on operating budgets and investment

·      External technology partner network and focused delivery in line with current risk appetite and strategic priorities

·      Our Internal Audit team completed a review of our IT vendors in February 2022

Leadership and culture

·      All leaders have a leadership objective and Diversity and Inclusion objectives included in their goals. Executive Committee members are accountable for attracting and retaining diverse talent and fostering an inclusive culture

·      During FY 2021/22, we created Leadership Standards, which were embedded across the organisation. These standards bring to life our purpose and values with tangible examples for both people leaders and colleagues

·      Throughout the year, we sourced in-the-moment feedback from our colleagues, with two surveys completed with our provider, Glint. Results demonstrated that employees remained very engaged, had a strong connection with the brand and felt supported by their leaders

·      We foster an inclusive culture where all employees feel connected to their work

·      We empower and equip leaders to lead through change

·      We engage employees through our ongoing commitment to corporate responsibility and embedding our ESG ambitions across the business

Talent and careers:

·      Strengthening capabilities and enhancing our approach to talent management throughout the organisation

·      Scaled learning opportunities for all our people through enhanced self-directed digital content

·      Maintained rigorous processes to identify and engage high-potential talent and support succession planning

·      Enhanced performance management through refined processes and systems, elevate support material, and increased communications and leader touchpoints

·      Further interview training cascaded to ensure an equitable recruitment experience

Reward and recognition

·      Simplification of our retail commission and incentive schemes to drive performance and business results

·      Deployed an in-the-moment feedback tool to recognise and share gratitude between colleagues

·      Delivered a global online celebration at year-end to reinforce our values, celebrate our collective achievements and recognise top performers

·      Maintaining a pay-for-performance culture

Diversity and Inclusion

·      Employee Resource Groups continued to build in strength and momentum, connecting colleagues across key themes of diversity to support an inclusive culture across all parts of our organisation

·      Regional and functional Diversity and Inclusion working groups deployed action plans to attract and retain diverse top talent, foster an open and inclusive culture, and educate and raise awareness

·      Cultural Advisory Council engaged directly with colleagues through "In Conversation" sessions

Colleague experience, including wellbeing and employee relations

·      Refreshed both the Summer and Festive Programmes to focus on Burberry's wellbeing offering. Launched Wellbeing Days to provide all colleagues with paid time off to focus on wellbeing

·      Launched new inclusive policies and support, including a global portal to help colleagues who experience domestic abuse, in addition to a Bereavement policy and Menopause support site

·      Launched a partnership with Headspace, providing free access for all colleagues to its award-winning mental health app. The partnership's goal is to support all colleagues in forging habits that benefit their mental health

·      We have policies and procedures in place designed to ensure the health and safety of our employees and to deal with major incidents, including business continuity and disaster recovery

·      The Group continues to evolve its supply chain organisational design to develop its manufacturing base and to reduce dependence on key sites and vendors

·      A Group incident management framework is in place to ensure that incidents are reported and managed effectively at the appropriate level

·      Prioritising our people, customers and communities, we managed multiple incidents, including fire, flood and weather-related issues or interruptions in the regular running of stores, offices and systems

·      Our Global Incident Management Team (GIMT) and Regional Incident Management Teams take part in training and incident management exercises involving large parts of the Group, our customers, and Corporate Communications function

·      Business continuity plans are in place for our eight main sites, including our three major distribution centres, our two UK factories, and Burberry Manifattura in Italy

·      Our product suppliers and vendors are subject to a quality control programme, which includes regular site inspections and independent product testing

·      Robust security arrangements are in place across our store network to protect people and products

·      The Group maintains significant protection of key IT systems designed to prevent and minimise any potential interruption. This includes resilient design and the provision of disaster recovery services to continue operating within pre-agreed time scales in case of a major incident. Our plans as tested during the year were found to be effective

·      Management regularly reviews business continuity and disaster recovery risks, recognising that these plans cannot always ensure the uninterrupted operation of the business, particularly in the short term

·      A comprehensive insurance programme supported by natural catastrophe modelling and insurance optimisation studies is in place to offset the financial consequences of insured events, including fires, flood, natural catastrophes and product liabilities

·      The Group seeks to continuously improve processes to gain assurance that its licensees, suppliers, franchisees, distributors and agents comply with the Group's contractual terms and conditions, its ethical and business policies, and relevant legislation

·      Specialist teams at corporate and regional levels, supported by third-party specialists where required, are responsible for ensuring the Group's compliance with applicable laws, ethical and business policies and regulations, and that employees are aware of the policies, laws and regulations relevant to their roles

·      Ethical trading and community investment matters are reported to the Ethics Committee, Risk Committee and the Board

·      Environmental sustainability matters are reported to the Sustainability Committee and the Board to ensure compliance with applicable laws and regulations as well as to mitigate associated legal and reputational risk

·      Annual independent and internal assurance processes are in place to monitor compliance in a number of key risks, with results reported to our Ethics Committee, Risk Committee and Audit Committee

·      We have an established framework of policies that aim to drive best practice across our direct and indirect operations, including our Responsible Business Principles and Global Environmental Policy. Policies (available on Burberryplc.com) are owned by senior leadership. They are issued to supply chain partners and form part of our contractual agreements with supply chain partners. Implementation of these policies is monitored on a regular basis

·      We have updated and consolidated our Code of Conduct for our people and third parties into one comprehensive document, which sets out policies and guidance to ensure that our employees and third parties act lawfully and in accordance with Burberry's values. Training on the Code to employees is in the process of being rolled out globally

·      Our Data Privacy Committee oversees compliance with applicable data legislation

·      International tax reform is a key focus of attention with significant developments reported to the Audit Committee

·      The Group's Brand Protection team is responsible for brand protection efforts globally, online and offline. Where infringements are identified, these are addressed through a mixture of criminal, civil and administrative legal action and negotiated settlements

·      Trademarks, copyrights and designs are registered globally across all appropriate categories

·      The Brand Protection team partners with the design teams to ensure that our products do not infringe the rights of third parties and to ensure that we have adequate protections in place prior to market entry

·      The team explores new and emerging threats and ways to combat threats

·      The team partners regionally with enforcement agencies and digital platforms to minimise the visibility of counterfeit and infringing products both online and offline

·      We aim to disrupt the flow of counterfeit products by enforcing at source level

·      Brand protection controls have been implemented to safeguard the brand in connection with our commitment to stop destroying unsaleable finished products

Physical risks

·      Building on the assessment of climate-related risks which was disclosed in FY 2020/21, the cross-functional TCFD working group, in partnership with the University of Cambridge's Centre for Risk Studies, developed and expanded its scenario analysis in FY 2021/22 to include a wider range of potential physical and transitional risk impacts. The scope of our scenario analysis was also expanded to include three emissions pathways, including a 1.5°C Paris Agreement aspiration scenario. Further details of this can be seen on pages 130 to 143

·      This included specific analysis around the impact of physical climate-related risks on our key facilities, operations and supply chain

·      Our Internal Audit and Risk teams were involved in our climate scenario modelling and oversight of TCFD disclosures

·      In our own operations and supply chain, we continue to use the WWF water risk assessment tool and the Aqueduct Water Risk Atlas to identify current risks, anticipate potential future strains on water resources and understand emerging long-term risks, as well as point out water efficiency and management opportunities

·      Burberry is committed to reducing its GHG emissions as set out in our Climate Positive by 2040 commitment. Our GHG emissions targets across all scopes are recognised as science-based aligned to the 1.5°C pathway and we will disclose our progress towards these on an annual basis to ensure full transparency to stakeholders, including our customers

·      In FY 2021/22 we announced our biodiversity strategy through which we will take action to protect, restore and regenerate nature in our own value chain and in areas of greatest need beyond our operations

·      Supporting our biodiversity strategy, we are a member of the global multi-disciplinary Taskforce on Nature-related Financial Disclosures (TNFD) Forum and contribute to the development of the TNFD framework

·      We support a number of industry initiatives that address climate change impacts, including the British Retail Consortium's Net Zero commitment, RE100, Race to Zero, the UN Fashion Industry Charter for Climate Change, The Fashion Pact, Lowering Emissions by Accelerating Forest finance (LEAF), and Accounting for Sustainability

·      The Burberry Regeneration Fund was established in 2020 to support a portfolio of verified carbon projects, which enable Burberry to compensate and store carbon, promote biodiversity, facilitate the restoration of ecosystems and support the livelihoods of local communities

·      We invest in programmes that help to sustain our industry and supplier communities, specifically initiatives that support social economic development in remote communities and promote more sustainable herding practices in the cashmere industry

·      We continuously engage and educate employees on the topic of climate change through focused events, strategic communications, volunteering opportunities and through our network of Responsibility Champions

Transitional risks

·      As part of the quantitative scenario-based analysis of climate-related risks conducted in FY 2021/22, we modelled the impact of transitional risks including policy, market, reputation, technology and liability risks

·      Our Climate Positive ambition not only sets our strategic direction but also mitigates the impact of transitional risks on the business. For example, our sustainable raw material and traceability targets feed into our Climate Positive ambition and will significantly contribute to lowering our scope 3 emissions. This will enhance the sustainability of our products and will be communicated to our customers and stakeholders

·      Through our memberships with various industry bodies, associations and external assurance partners, we contribute to consultations and stay informed of upcoming environmental legislative changes

·      Environmental sustainability matters are reported to the Sustainability Committee, the Ethics Committee, the Risk Committee and the Board

·      Our longstanding Responsibility programmes, coupled with our Responsibility goals, are driving continuous improvements in moving beyond social and environmental compliance

·      We are committed to shifting to more sustainable, low-impact materials, and using our brand to influence consumers and our industry peers to reduce their impacts. We have a series of ambitious targets to achieve this aim, full details of which can be found on pages 92 to 95

·      We are mitigating transitional risks by focusing on initiating circular concepts and business models and continuing our commitment to a zero-waste mindset across the business. We have a clearly defined waste hierarchy and set targets and KPIs that cover operational, manufacturing and finished goods waste as well as packaging. These targets and KPIs are a key component of our Climate Positive ambition and roadmap

For more details on how we are monitoring climate risks and opportunities and our strategic response, please see our TCFD report on pages 130 to 143.