Opportunity and Risk

A board should promote the long-term sustainable success of the company by identifying opportunities to create and preserve value, and establishing oversight for the identification and mitigation of risks.

Long term strategic opportunities are highlighted regularly as part of the interaction with the Parent Company Board. Short term opportunities to improve performance, resilience and liquidity are collated through the business review process, which is attended by members of the PYL Board and Parent Company Board.

The PYL Strategic Report includes key risks that are monitored by the Board. In early 2020 PYL embarked on a full-scale review of its risk management processes and engaged the services of a third-party professional service to assist in the introduction of a bespoke risk management system. This project continued despite the pandemic through 2021 and 2022, and although the anticipated completion date was adjusted, it will be concluded during the first half of 2023. The initial focus of the project was to introduce a system that ensures inherent and emerging risks are identified and managed appropriately and in a timely manner. Also, to ensure that there is a coherent approach to risk identification, classification and mitigation. The business strategy and final steps to complete the project initiation have been identified during 2022 and the follow up to the risk and strategic review will be rolled out in the business throughout 2023. It is imperative that the design of the Company’s systems and controls are such to enable management of, rather than elimination of, risk.

In order that the Board comply with their obligations to protect PYL’s integrity and long-term sustainability, is able to meet its strategic objectives and to create value for its shareholders, customers and suppliers, PYL has developed a set of processes and standards that, combined, provide an internal control framework that also includes our accreditations for ISO 45001, 14001 & 9001.

The Board approves any contract above a certain value (determined by the Board) or any transaction that requires an unbudgeted allocation of capital. This ensures that the appropriate level of diligence has been performed in understanding the obligations, risks and terms of the contract, and involves discussions with the Parent Company Board when appropriate.

The Company has adopted a broad and full strategy in order to tackle its responsibilities which fall into the Environmental, Social and Governance (ESG) umbrella. On a practical level this has manifested itself with the commissioning of a Bio-Mass facility at PYL’s South Yard Site and the impending roll out of solar panels across two of the sites. The extent of the work involved in this area is significant and full details are contained within the Company’s ESG report available on the website. The ESG committee, whilst still relatively new to the business structure, continues to grow in its maturity and drive forward initiatives through the business.