
The T
ask For
ce o
n Clim
ate
-Re
lat
ed F
inan
cial
Dis
clo
sur
es (
TCF
D) has bec
om
e par
t of t
he
reg
ulat
or
y f
ram
ework i
n many jur
isdi
cti
ons
.
TheTCF
D’s 11 disc
los
ure r
ec
om
men
dati
ons
span four differ
ent areas: governance, strateg
y,
risk management, and metrics and targets
.
In ac
co
rd
anc
e wit
h Lis
ti
ng Rule 9.
8
.6 (8), we
ared
iscl
osi
ng our ali
gnm
ent wit
h th
e TCFD
recommendations. We are contin
uously
impr
ovi
ng and ali
gning o
ur int
erna
l pr
oc
ess
es
and pu
blic d
iscl
osu
re
s wit
h the TCF
D and t
his
foll
owing s
ect
ion s
et
s out o
ur pr
ogr
es
s agains
t
the fo
ur pil
lars o
f the TCF
D fr
amewo
rk
.
This is S
aga’
s f
ir
st an
nual TC
FD re
po
r
t
.
Inth
epas
t 12 m
ont
hs, w
e have es
ta
blis
hed
anappropriate governance approac
h for
oversee
ing cli
mate-related risks and
opp
or
t
unit
ies an
d have ide
ntif
ied th
e risk
s
fac
ing Saga a
s ar
ti
culat
ed b
el
ow.
We will fo
cus in t
he nex
t r
ep
or
t
ing cycl
e on
rev
iewing ou
r met
rics a
nd t
arget
s
, fur
ther
assessing
the impact
of these
on our
strateg
y
and assess
ing the
effectiveness of
the key
manage
ment a
cti
ons t
o mit
igat
e risk
s
. We will
expla
in how we h
ave comp
lie
d wit
h the
re
com
men
dati
ons in o
ur 20
23 An
nual R
epo
r
t
Our B
oar
d of D
ire
ct
or
s has r
esp
on
sibil
it
y over
our risk management framework, including
climate-r
elat
ed risk
, monit
oring the
ef
fe
cti
vene
ss of t
he Gr
oup’s risk man
agemen
t
and control sy
stems. The Board established the
Risk and Aud
it Committ
ees, each composed of
three independent
Non-Executive Directors, to
oversee
the principa
l risks, tolerance thresholds
The R
isk C
omm
it
t
ee me
et
s to d
iscu
ss th
e Gr
oup’s
overa
ll risk t
ol
er
anc
e, s
tr
ate
g
y an
d abili
t
y to d
ete
ct
new ri
sks, including
those related to clima
te change,
whic
h is ref
lect
ed a
s one of S
aga’
s pri
ncip
al ris
ks
.
The Committee Chair repor
ts rec
ommendations
to t
he Bo
ar
d, t
ogeth
er wit
h an ann
ual r
ep
or
t
outlining princip
al risks and unc
er
tainti
es, how they
are identif
ied, and mitigating actions
. Also repor
ting
to t
he Bo
ar
d, t
he Au
dit C
ommi
t
te
e mon
it
ors t
he
inte
gri
t
y of the G
r
oup’s fina
nci
al st
at
eme
nt
s as well
as work
ing wi
th th
e Ris
k Co
mmit
t
ee t
o over
see t
he
ef
f
i
cacy o
f int
erna
l con
tr
ol sys
t
ems
. The B
oa
rd
commit
s to inc
luding climate-r
elat
ed risk formally
on th
e Bo
ard age
nda in
clu
ding an over
sigh
t of
emissions per
formance, emb
edding climate
resilience and risk management, as well as oversight
of the w
ide
r ESG s
tr
ateg
y as it deve
lop
s. We
rec
ognise that the r
espo
nsibilit
y for ESG
, including
f
ina
ncia
l risk
s as
soc
iat
ed wi
th cl
imat
e cha
nge, is t
he
resp
onsibility of all Boar
d members.
We engaged our T
ravel an
d Insu
ran
ce
businesses
separately to provid
e a
compr
ehensive and robust analysis to identif
y
and assess
climate-related risks
and the
re
silie
nc
e of our bu
sin
ess
es t
o mana
ge the lin
ks
between our cl
imate-related risks a
nd
opp
or
t
unit
ies an
d our b
usin
ess s
tr
at
eg
y. We will
be se
t
ting t
arget
s fo
r our over
all e
miss
ions
re
duc
tion d
uring 20
2
2, w
ith a c
om
mitm
ent t
o
re
duc
e our c
ont
ribu
tio
n to cl
imat
e ch
ange. Th
is
is a key man
agemen
t con
tr
ol for s
ome o
f our
clim
ate
-re
lat
ed ris
ks
, su
ch as o
ur re
put
at
iona
l,
Init
ial as
se
ssm
ent of th
e clim
at
e-r
elat
ed ri
sk
s
and op
po
r
tuni
tie
s for b
oth o
ur Ins
ura
nce a
nd
T
r
avel businesses were determined over three
dif
f
ere
nt tim
e hor
izons: s
hor
t
, m
ediu
m and
long
-term. Short-term risks and
oppor
tunities
are a
r
tic
ulat
ed b
elow, wi
th th
e full TC
FD re
po
r
t
art
iculating medium and longer-
term risk
s and
oppor
tunities a
vailable on
our corporate
website (ww
w.corporat
e.saga.c
o.uk/
about-us/
environmental-soc
ial-and-go
vernance
).
Shor
t-term risks and opportunities
At the G
r
oup level
, our b
usin
ess f
ac
es seve
ral
shor
t-term transition risks:
1.
Our T
ravel bu
sine
ss wi
ll fac
e sh
or
t-te
rm
risk
s inc
ludi
ng incr
e
ased f
uel c
os
t
s and
f
ina
ncia
l st
rai
n on Saga’s key third
-par
t
y
par
t
ner
s (
suc
h as airl
ines) as carb
on t
axa
tio
n
is use
d to d
rive cl
imat
e tr
ans
itio
n,
par
ticularly on fossil-based fuels
.
2.
Dir
ec
t and in
dir
ect c
arb
on p
ricing a
nd c
ost
pas
s-on w
ithi
n the s
upp
ly ch
ain co
uld r
edu
ce
Saga’s fina
nci
al re
turn
s as ups
tr
eam s
upp
ly
materials cos
ts incr
ease, specif
ic
ally on
energ
y and fuel-intensive materials.
3.
Saga’
s marke
t valuat
ion m
ay be im
pac
te
d by
inv
estors challenging Sag
a’
s
commitment to,
or progress on, climate-chang
e
In th
e sho
r
t-term
, as a G
ro
up, we have th
e
following climate
-relat
ed oppo
r
tunities:
1.
The T
ravel bu
sine
ss c
an ach
ieve a high ES
G
pr
of
il
e by re
spo
ndin
g to cu
st
om
ers’ int
er
es
t
in clim
ate
-re
lat
ed is
sue
s and by
demonstrating a responsible a
nd sustainable
app
ro
ach t
o ESG
. T
his ha
s the p
ot
enti
al t
o
enable increas
ed investment capacity
thr
oug
h new gr
ee
n f
ina
ncing o
pp
or
tu
niti
es
.
T
ask F
orce on
Climate-
Related
Financial Disclosures
Sag
a plc A
nn
ual R
ep
or
t a
nd Ac
c
ount
s 2
02
2
Additional informatio
n
Financial stat
ements
Governance
Strategic Report
33