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40 About Strategy and Governance Our People Our Business Our Outcome AppendixEnvironmental ResponsibilityOur Impacts %u2023 Climate Change MitigationWe believe that some of our business activities contribute to adverse impacts on climate change. Most of our greenhouse gas emissions result from logistics, comprising warehousing and transport. We want to reduce or eliminate emissions at the source.%u2023 Pollution PreventionOur activities have potential impacts on the environment, people, and their human rights, e.g. by consuming water, disposing of effluents from our manufacturing operations, and producing air emissions when making deliveries and engaging in business travel. As a responsible company, we have implemented comprehensive measures to address these impacts.%u2023 Resource EfficiencyThe importance of conserving natural resources makes waste management and prevention efforts a top priority for DKSH. We are making great efforts to reduce our impact on natural resources, for instance, when it comes to damaged products and packaging waste.Climate Change MitigationIt is widely acknowledged that the adverse impacts of climate change represent a significant risk for our societies. Therefore, this issue is now on the political agenda in many countries across the globe, with calls for strong mitigation actions. At DKSH, we are aware that emissions from our operations may have an adverse effect on the climate and are committed to playing our part to avert global warming by decreasing or eliminating carbon emissions at their source. Most of our greenhouse gas emissions are generated at our significant locations in Southeast Asia and Greater China, primarily from warehousing, transport, and business travel activities. As we transition to renewable energy sources, for instance by installing solar panels at our facilities and distribution centers (DCs), we increasingly feed green energy into local grids. Governance and Management ApproachOur Group Sustainability team is responsible for steering and implementing our approach to how DKSH helps to mitigate adverse impacts on climate change, e.g. through a dedicated budget for implementing our GHG emissions management practices. On an annual basis, the Group Sustainability team receives approval for human and financial resources invested, for instance, in green electricity, databases to manage GHG emissions data, or external assurance processes. The Sustainability Governance chapter contains more information about our governance structure. Our stakeholder engagement activities determine our actions to mitigate climate change. As a business partner in global and local supply chains, we recognize that climate change mitigation is a relevant topic for our stakeholders and that we must act responsibly and adequately. In this regard, we interact with our clients by sharing our CDP data or report on Scope 3 emissions and make efforts to improve in these areas. Our Health, Safety and Environment (HSE) Policy defines our approach to climate change mitigation. This policy underlines our commitment to conducting business in an environmentally responsible manner. In keeping with the precautionary principle, our HSE Policy stipulates that we take early action to identify, prevent, and mitigate potential negative impacts if there is sufficient reason to expect severe or irreversible environmental damage. Local HSE Managers are tasked with maintaining a register of applicable national environmental laws and regulations and ensuring compliance across all our operations. At the same time, we are taking a proactive approach to environmental responsibility by significantly reducing our reliance on fossil fuels and investing in renewable electricity and green buildings. %u2023 GRI 2-23