NowyStyl_Raport CSR_2020-2021_EN

Risks and opportunities analysis is part of the Integrated Management System. At Nowy Styl, we carry it out while considering both the context and the changing environment of the organisa- tion, the needs and expectations of our stakeholders as well as business aspects. The risks we identify are ethical, social, employee safety, environmental, climate, financial and data security, related to production, transport and product use. In accordance with the Risk Analysis Procedure for Processes we have implemented, risk management that covers: identification of risks and description of their impact on individual processes, risk assessment according to the adopted criteria, determination of risk significance level, determination of risk management method and identifi- cation of existing security measures as well as monitoring of changes to risks and opportunities. In 2021, as we extended the environmental management system to include the scope of ISO 14006, we expanded the existing analysis to include thinking about our products throughout their life cycle – fromdesign, through implemen- tation, provision of rawmaterials andmaterials, production, transport, use, decommissioning and disposal. C lick to find out more The register of risks and opportunities is updated once a year as part of the revision of the Integrated Manage- ment System and each time there are significant changes affecting the processes. Risk analysis for the supply chain is a separate process. The Strategic Purchasing Department assesses risks related to each new and existing supplier. C lick to find out more 1.4 Impacts, opportunities and risks GRI 102-11 GRI 102-15 Examples of selected potential risks from the Process Risk Analysis for Nowy Styl Area Risk Environment Non-compliance with regulations and environmental permits Poor supervision of waste management Shortage and high prices of green energy on the Polish energy market Poor management of chemicals Product design and implementation Shortage of recycled materials, wood, and raw material on the market Technical problems with the implementation of extended product life Technical problems with designing for recycling Ethics No communication or unreliable communication of the company's ethical policies Mobbing and discrimination Abuse of company property Social Poor hazard identification Unplanned or unforeseen hazardous situations Changes in the production area Risks related to a biological factor – risk of illness, transmission of infectious diseases, epidemic outbreaks, pandemic Shortage of qualified workforce on the labour market We note the significant impact of human-induced climate change, which has been happening for many years and is translating into a dramatic depletion of natural resources. We can feel the direct impact of the situation on our daily work. In addition, growing legislative requirements as well as the expectations of customers, partners and the public towards large enterprises in the area of ESG give a new direction to actions taken and oblige businesses to adopt more and more ambitious goals in this area. We believe the intensification of Nowy Styl's sustainability policy is the only right thing to do, and it is also an opportunity for us to build an authentic image of a committed and responsible company. This makes us a good partner for the stakeholders, who understand the ongoing changes and the key importance of sustainability for business. For Nowy Styl, ESG and CSR involve a number of coordi- nated activities that are constantly shaping the functioning of the organisation and instilling a responsible approach among customers, employees, partners, suppliers and local communities. 16 Table of contents