IBERSOL | Integrated Management Report 2022

CORPORATE GOVERNANCE REPORT tional safety and quality and food safety, in addition to complying with all the legal rules for physical safety and civil protection. On the other hand, the Covid-19 pandemic required more resilient and flexible man- agement processes, including the digitalisation of the sales channels and business support activities, strengthening the internal competences for crisis management and business continuity. Use of natural resources The Ibersol Group depends on the use of natural and energy resources for its operation but is aware of the impacts that events such as ex- treme drought and price volatility in the energy market can have on its operation and results, so it maintains internal policies and specific initia- tives for a more efficient use of those resources. Furthermore, the Ibersol Group respects standards and good practices for the storage, handling and distribution of food and non-food raw materials, with robust moni- toring, segregation, and traceability processes to minimise food safety risks and reputational risks. Financial Risks Foreign exchange risk The Ibersol Group adopts a natural hedging policy regarding exchange rate risk, using financing in local currency. The exposure to exchange rate risk is limited, since the Group is mainly present in the Iberian market and has little volume of purchases outside the euro zone. The most relevant exchange rate risk comes from operations in Angola, where devaluation of the Kwanza could affect the Group’s results. However, the financing contracted by the Angolan subsidiaries is denominated in the local cur- rency and the Group monitors the credit balances in foreign currency on a monthly basis and adopts a partial hedge through Treasury Bonds of the Republic of Angola, indexed to the USD. Interest rate risk The Ibersol Group has no significant interest-bearing assets, except for the Angolan State Treasury Bonds, whose interest is fixed and indexed to the US dollar. The Group had Term Deposits amounting to 165 million euros on 31 December due to the sale of Burger King brand restaurants. The main interest rate risk comes from liabilities, namely long-term 316