Page 653 - COSO Guidance

Appendices

Information, communication and reporting • Internal: Dashboard showing customer requests for FSC/PEFCx certified prod- ucts; briefing documents showing market demand for products • External: The organization updates its labeling to clarify to customers the use of FSC/PEFCx certified products • Internal: Meetings presenting findings of stakeholder engagement activities, results of monitoring NGO requests and campaigns • External: The entity report

Review and revision • Indicator: Percentage of customers requesting FSC/PEFCx certified products • Threshold: >25% • Decision: Increase investment and resource allocation for procuring certified products • Indicator: Number and size of NGO requests and campaigns against the company • Threshold: Two large campaigns and/or >10% in revenue loss • Decision: - Reassess risk, response and adequacy - Convene a targeted problem-solving session with

Implements risk responses • Implements Risk Responses • Invest USD$18 million into research and development for new products that use alternatives to fiber and petroleum as raw materials • Develop a customer engagement tool to maintain an understanding of changing customer preferences, including preferences for sustainable products • Establish a grievance process to allow supplier code of conducts violations (e.g., human rights, environmen

Assesses and prioritizes risk • Severity: Reduced revenue of USD$80 to $100 million per annum by 2022 (with 70% probability) • Severity: Reduced market capitalization of 32% or USD$760 million • Reduced sales revenue of USD$6.5 million for 2018-19 • Increased labor cost of USD$20 million per year from 2019 onward • Transitional climate-related risks reduce revenue by - Scenario A: USD$70-$100 million loss due to dama

Performance Identifies risk • The possibility that end-user customer preferences for products with less environmental impact and enhanced recycling and reuse properties will challenge long- term contracts with customers, impacting sales, revenue and market leadership • The possibility that NGO-related campaigns relating to ESG perfor- mance will erode brand recognition as a product with strong sustainability performance • The po

Strategy and objective-setting • Leveraging scale and brand-based value propositions to be a market leader in Europe, the Americas and Asia-Pacific segments • Supplier of choice with strategic customers • Differentiated position driven by brand drivers: Recognized - Price competitiveness - Product sustainability - Responsiveness and customer service - Innovation • Solidify position in winning segments and custom

excellence
Objective:
Objective:
Objective:
leadership
Strong
growth
106 Objective: Customer focus Objective: brand Enterprise Risk Management | Applying enterprise risk management to environmental, social and governance-related risks • October 2018 Prioritization: