Risk management

Identifying and assessing risks

Vetropack identifies and assesses potential risks on the basis of a standardised process which is not only essential to our long-term business success, but is also intended to raise awareness. All our employees are called upon to deal with risks responsibly in the course of their daily activities. The company takes account of opportunities as well as risks.

Vetropack classifies risks as follows:

• Financial risks
• Strategic and geopolitical risks
• Operational risks
• Organisational risks

Management draws up a risk matrix for the Vetropack Group each year. This matrix classifies the material risks according to the potential extent of loss or damage they could cause, and the likelihood of their occurrence. Vetropack uses these four levels to assess risks:

• Worst-case scenario: existential risks
• High risk: major impact on business objectives
• Moderate risk: disruption of important business processes
• Low risk: minor impairment of individual business processes

Risk management measures

Following consolidation and assessment of the risks, we develop measures and strategies to minimise them in cases where identified risks cannot be tolerated. Implementation of the measures is monitored continuously on a systematic basis.

Approval of the risk matrix

The risk matrix drawn up for the entire Group, with the strategies and measures identified to minimise the risks, is validated each year by management and submitted to the Board of Directors for approval.

Sustainability risks

In 2023, Vetropack also devoted particular attention to sustainability risks and their impact on business performance. Vetropack’s Sustainability Manager was also involved in this process. In addition, a comprehensive risk analysis of environmental and social aspects in the supply chain was undertaken.

As in previous years, energy prices presented a critical business risk in 2023. An appropriate energy procurement strategy enabled us to optimise our planning processes and improve our ability to anticipate the development of energy costs.

Some Swiss companies will be obliged to report in accordance with the requirements of the Task Force on Climate-related Financial Disclosures (TCFD) as from the 2024 fiscal year, and climate-related aspects are proving to be increasingly relevant for Vetropack. For both these reasons, the Board of Directors approved a roadmap for the systematic integration of physical and transitory climate risks into our risk management at the end of 2023.