Sidenor 2022 Sustainability Report

45 Within the framework of Sidenor’s Risk Control and Management Policy, the Company Management regularly updates the risk map of the organization and performs constant monitoring in order to promptly detect risks to the business and act fast so as to minimize their impact. The risk map, which was reviewed and updated in 2022, includes risks such as the following:  COVID-19: although the pandemic situation resulting from COVID-19 subsided in 2022, it still represented a risk, in light of the increased challenge of ensuring the safety and health of all employees, which is why we maintained a protocol of action, as explained before.  Energy: the continuous increase in gas and power prices which had started in the last months of 2021 worsened in March 2022 due to the war in Ukraine, reaching all-time highs in the European markets and generating a high volatility in the prices of such supplies, which are essential to our process.  Supply chain vulnerability: this problem, which was mainly due to the imbalance between offer and demand resulting from the COVID-19 pandemic as well as existing logistics problems at world level, was aggravated by the war in Ukraine and the geopolitical tensions generated by this armed conflict.  Regulatory risk derived from legislative changes, which were intense and continuous during 2022.  Environment: due to the impact of climate change on our business, we initiated a process to analyze the risks and opportunities derived from climatic transition, as explained below. In front of such a situation, Sidenor has been working to search for alternatives and adopt measures which might enable the Company to minimize or avoid the impact of such risks on business.