11 Risk assessment 2022 RISK RISK MANAGEMENT Greenhouse gas emissions The climate debate has an impact on the whole of society. Tougher demands from both customers and consumers as well as organizations and authorities will be a consequence of this. With this comes an increased risk for Semper if we cannot adapt to the demand for sustainably produced food. Greenhouse gas emissions Semper works continuously to reduce greenhouse gas emissions throughout the value chain. This is described in our Strategy and results of the work are reported in Chapter 2. Raw material shortage Extreme or adverse weather conditions can cause flooding, drought and crop failure. This, in turn, has a major impact on agriculture, harvests and animal husbandry, which means a risk that the availability of raw materials will deteriorate. A reduced biological diversity, e.g. a reduced number of pollinating insects, can lead to reduced yields. Raw material shortage Should there be a shortage of raw materials, Semper is prepared to reformulate recipes. We hold a dialogue with our suppliers to get an early indication of a possible shortage of raw materials. Chapter 2 describes our way of working with our suppliers and our commitment to biodiversity. Baby food quality The availability of raw materials that comply with the regulated quality of packaged foods intended for babies and young children 0–3 years old is a fundamental prerequisite for Semper's operations. Baby food quality You can read about how we ensure baby food quality in the section "Food safety and quality". Packaging material An increased awareness of packaging's potential negative impact on the environment can lead to new product choices. If Semper cannot meet the demand and requirements for sustainable materials, this could pose a risk for us. Packaging material See "100 % recyclable packaging" to read about our work with packaging material. Working environment Discontent, ill health and accidents at work are a risk. Working environment Semper has the ambition to preventively ensure that all employees have a good working environment. You can read more in the section "Semper's employees". Special skills Working with food for sensitive consumer groups such as infants and people with celiac disease requires special skills. Special skills Semper works actively to be an attractive employer in order to attract and retain competent and committed employees. You can read more in the section "Semper's employees". Pandemic outbreak Globalization, increased intensification of agriculture and increased mobility are risk factors for pandemic outbreaks with high spread of infection which pose a threat to society. Pandemic outbreak In order to reduce the risk of the spread of infection and ensure staŒ supply, Semper's management team has clear guidelines and close communication in the event of a pandemic outbreak. Child labor Within all industries there is a risk of exploitation of child labor at some stage of production. For Semper, it is a fundamental requirement that our suppliers' operations are based on ethical business practices. Child labor Read more about the tools and the code of conduct that we use at the supplier level in the section "Human rights and environment in the value chain". Discrimination and victimization There is a risk that someone within Semper's operations or within the supply chain is exposed to abuse or special treatment and is harmed due to incorrect actions. Discrimination and victimization You can read more in the sections "Semper's employees" and "Human rights and the environment in the value chain". Possibility of union membership Risk of making union membership more di’cult. Possibility of union membership By asking suppliers to join Ecovadis and sign Semper's code of conduct, we work to eliminate this risk. Recalls There is a risk that an item does not meet our quality requirements and must be recalled. Recalls Semper has a robust quality system, which you can read about in the section "Food safety and quality". Bribery and corruption Risk of unethical and improper business conduct and competition being hindered. Bribery and corruption Read more about our work against bribery and corruption in the section "Responsible business". Responsible business conduct Human rights Legislation and food safety Anti corruption Environment