###### BOARD-LEVEL RESPONSIBILITY
The Board recognises the Group's duty to be a responsible business and the increasing stakeholder interest in environmental sustainability. This financial year we have conducted an ESG materiality assessment with our stakeholders, to improve our understanding of their priorities. This has shown that carbon and climate change are particularly important to our investors and local communities.
The Board has ultimate responsibility for the Group strategy, defining and setting long-term, climate-related objectives, and ensuring the necessary resources are available to develop and grow sustainably. It manages the climate-related risks, annually assessing the adequacy and effectiveness of mitigation measures, overseeing controls, and ensuring the commercial strategy is modelled for resilience and challenging market conditions. It periodically reviews the performance of the Group, in relation to its commitment to driving responsible business and ensures that any necessary corrective action is taken. This reflects the importance of climate change in PPHE's corporate strategy and allows board members to dedicate time and focus to each topic.
There is an ESG component to the annual bonus which we operate for our C-suite and Executive Leadership Team. This is part of the non-financial metrics component which accounts for 30% of the bonus and includes guest satisfaction and employee engagement.
The roles and responsibilities of each board member are explained in Table 2. Strategic decisions are taken by the executive directors and approved by the Board. Where appropriate, external consultants are used to provide the expertise and knowledge needed to fulfil governance obligations. [...] ###### EXECUTIVE RESPONSIBILITY
The Chief Corporate & Legal Officer, Inbar Zilberman, has overall responsibility for climate-related matters and reports to the Board. She oversees compliance with TCFD reporting requirements and ESG arrangements, practices and procedures.
Management of climate-related risks is shared between our Chief Corporate & Legal Officer, Chief Financial Officer, Deputy Chief Executive & Chief Operating Officer and Executive Vice President of Commercial Affairs, as shown in Table 3. [...] ###### ESG COMMITTEE AUDIT COMMITTEE
Our ESG Committee consists of three independent, non-executive directors and supports PPHE in being a sustainable business. It meets quarterly, including at appropriate points within the reporting cycle, to consider climate-related disclosures for the annual and interim reports. The Committee is joined by other members of senior management and by outside experts and advisors where appropriate.
It supports the Board by reviewing and monitoring the processes for setting climate-related targets and collects the data required to support the TCFD reporting and strategy. It updates the Executive Leadership Team on climate-related issues, as necessary. The Committee also ensures stakeholders are consulted on sustainability activities and monitors how these are reported internally and externally. The Committee Chair attends the Annual General Meeting to answer any relevant shareholder questions.
The Audit Committee consists of at least three independent, non-executive directors and meets at least three times a year, at appropriate points within the reporting cycle and then feeds back to the Board.
As climate change and the transition to a low-carbon economy have been included as emerging risks since 2019, the Committee assists the Board in monitoring these risks and tracking changes that could alter the risk profile. As environmental performance and reporting regulations increase, it ensures appropriate compliance procedures are in place.
It receives and reviews regular reports from the Deputy Chief Executive Officer, Chief Financial Officer, the Chief Corporate & Legal Officer, the Head of Risk and Internal Audit, the internal legal, compliance, audit and risk teams and the external auditors.