37 RISK MANAGEMENT In fiscal 2020, PFG developed and deployed an enterprise risk management tool focused on identifying categorical risks, ranking those risks, and monitoring progress in mitigating them. The risk analysis process then assigns a risk as either being green, yellow or red, which indicate escalating levels of risk to the company. That analysis is then turned into a dashboard that is used to track risk severity and progress in mitigating those risks. The Enterprise Risk Management (ERM) analysis identified four categories that specifically included climate-related risks: • Supply Chain • Macroeconomic • Logistics/Transportation Disruption • Environmental The PFG enterprise risk management process has flagged these categories and updates are delivered to the Audit Committee of the Board a minimum of two times per year. In addition, cross-functional teams within PFG are actively monitoring the challenges and opportunities represented by these risks, and are creating strategic plans designed to ensure business continuity and an ability to maintain the consistency of operation required by our customers. The dashboard is produced monthly as part of an effort to regularly reassess risk level and force rank the risks to ensure that the company is prioritizing significant concerns. Those dashboards, and the underlying analysis, ensure that PFG is actively engaged in an effective overall risk management. The ERM efforts are then combined with PFG’s ESG program, which further assesses challenges, concerns and risks associated with issues that fall within the ESG program, including: • Sustainability and Environmental Performance • Energy Efficiency and Renewable Energy • Responsible Sourcing In fiscal 2021, PFG launched an ESG-focused supplier survey designed to assess how the company’s vendors are performing on ESG issues. The responses from that survey are evaluated and the supply chain is then force ranked to identify who is leading and who is lagging. For those businesses in the leading category, PFG is working to develop further collaborations to enhance the efficacy of the efforts being put in motion by supply chain partners. For the laggards, PFG is identifying potential risks, which are then added to the larger risk analysis and addressed through both the ESG goals and strategies and the ERM risk mitigation efforts.