Task Force on Climate-related Financial
Disclosures (TCFD) continued
Section 3: Risk Management –
Disclose how the organisation
identifies, assesses, and manages
climate-related risks
a) Describe the organisation’s processes
for identifying and assessing climate-
related risks
Climate-related risks (including those related
to existing and emerging regulation and
legislation) are within the scope of our overall
risk management approach described on
pages 44 to 45, which sets out our processes
for identifying, assessing and escalating
risks where appropriate. Our ASOS Risk
Management Standard includes defined
measures of impact and likelihood for
assessing all risk types. Our universal
approach enables us to understand what
material risks are to ASOS, to ensure
assessments are comparable between
different types of risk, and to drive the right
outcomes for avoiding, treating, or accepting
risks in line with our risk appetite. Through this
approach, Climate Change and Sustainability
has been identified as a principal risk.
b) Describe the organisation’s processes
for managing climate-related risks
A formal review of all business risks is
completed every six months, which considers
the level of exposure, progress with mitigating
actions, and whether additional activities are
needed for existing risks, as well as scanning
the horizon to identify and assess new
potential risks before they emerge. Risk
reviews are the responsibility of functional
Management Committee members and their
Senior Leaders, supported by our Risk
Management team. For risks outside of our
risk appetite, appropriate treatments are put
in place to either mitigate, control, or accept
the risk. This can include transferring risks
outside of the organisation, e.g. by ensuring
we have appropriate insurance.
Where results of completed reviews indicate
changes to our principal risks these are
updated as part of the formal bi-annual
review. Our principal risks include our
recognised risk across Climate Change and
Sustainability (see page 48). Our ASOSers are
also guided to continually Identify, Analyse,
Treat, Report and Monitor risks under our
Protect, Anticipate and Grow framework
within the ASOS Risk Management Standard.
If our updated scenario analyses in FY24
uncover material new or emerging risks, not
currently addressed in our principal risks,
then these will be reported to our
Management Committee and subsequently
our Audit Committee and Board, in line with
the escalation process set out in the ASOS
Risk Management Standard.
c) Describe how the processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organisation’s overall risk
management
Our FWI Working Group maintains an ESG Risk
Register which captures cross-functional
climate-related risks and opportunities that
could impact our business. This includes risks
and opportunities related to those identified
through our deep dive analyses outlined in
Section 2: Strategy on pages 22 to 27).
These risks are reviewed as part of our
outlined processes for overall risk
management and feed into our principal risks.
Section 4: Metrics and Targets –
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks
and opportunities where such
information is material
The paragraphs below capture our response
to Recommended Disclosures:
a) Disclose the metrics used by the
organisation to assess climate-related
risks and opportunities in line with its
strategy and risk management process
b) Disclose Scope 1, Scope 2, and if
appropriate, Scope 3 greenhouse gas
(GHG) emissions, and the related risks
The key metrics we currently use to measure
and manage our climate-related risks and
opportunities are our GHG emissions, as
these are the key driver of temperature
increases and so are the key root cause of all
climate-related risks and opportunities we
have identified. Other metrics and targets
are being considered by and may form part of
the updated FWI Strategy due to be finalised
during FY24.
We have presented our Scope 1, 2 and 3
emissions metrics on page 30 (sources of
emissions included within each Scope measure
are show in the table below, which covers our
entire value chain), and are calculated and
reported on an annual basis. In calculating
our emission metrics, we apply best practice
laid out in the GHG Reporting Protocol –
Corporate Standard (Operational Control
Boundary). Emissions relating to category 8
(upstream leased assets) have been included
in our Scopes 1 and 2 footprint and emissions
relating to categories 9 (downstream
transport and distribution), 10 (processing of
sold goods), 13 (downstream leased assets),
14(franchises) and 15 (investments) have
been excluded from our Scope 3 value chain
footprint, as these either fall outside our
operational boundary of control or have been
determined to be irrelevant or immaterial.
We also use the latest emission factors from
the UK Government’s Conversion Factors for
Company Reporting combined with industry-
specific factors such as the Sustainable
Apparel Coalition’s Worldly Materials
Sustainability Index (MSI).
Our Scope 3 emissions footprint for our most
recent full-year reporting cycle (covering
FY22) amounts to 1,738,708 tCO
2
e (FY21
1,506,834 tCO
2
e). A full breakdown of the
sources of Scope 3 emissions can be found
onpage 9 of our FY22 FWI Update Report,
published in May 2023. Please note that due
tooutlined changes to the calculation
methodology between FY23 and FY22, the
Scope 3 figures are not directly comparable.
In FY24, we plan to re-baseline our methodology
to ensure it can be applied consistently going
forward. Once set we will update and restate
our historical emissions in our next climate-
reporting, applying the latest methodology
to allow for transparent trend analysis.
Our existing processes and access to the
data needed to calculate our Scope 3
emissions mean that we currently report our
full year emission figure within our subsequent
FWI Update Report published at the following
half year. We have been working on improving
our approach and next year expect to publish
both our FY23 and FY24 Scope 3 emissions
metrics in our FY24 Annual Report, as well
asour re-baselined historical emissions.
Following this we will include all financial and
sustainability related data and disclosures
in a singular comprehensive Annual Report
following each year end.
For FY22 we obtained external assurance on
our FY22 Scope 1 and 2 emissions metrics for
the first time. PricewaterhouseCoopers LLP
(PwC) conducted an independent limited
assurance engagement on these selected
GHG emissions figures for the year ended
31 August 2022, in accordance with
International Standard on Assurance
Engagements 3000 (revised), and the
International Standard on Assurance
Engagements 3410, issued by the
International Auditing and Assurance
Standards Board. A copy of PwC’s report
and methodology is available on the ASOS
Plc site at www.asosplc.com/fashion-with-
integrity/limited-assurance/.
For FY23 we have decided not to seek
external assurance over our Scope 1 and 2
emission metrics or any other areas of this
disclosure, as our methodology for collecting
the required data and calculating our
emissions metrics has remained largely
unchanged. As noted above we are currently
updating our FWI Strategy including reviewing
its associated metrics and targets. Where
our review results in methodology changes for
calculating our Scope 1 or 2 emissions we will
ASOS PLC
ANNUAL REPORT AND ACCOUNTS 202328
STRATEGIC REPORT GOVERNANCE REPORT FINANCIAL STATEMENTS