From the perspective of environmental factors, which option is considered material in the beverages industry?

In the beverages industry, environmental factors play a critical role, particularly in relation to water usage and greenhouse gas (GHG) emissions. Water efficiency is material because the production of beverages is heavily dependent on water resources. Efficient water management not only ensures sustainable production practices but also addresses the growing concern of water scarcity in many regions. Companies in this industry face scrutiny over their water consumption and are often required to implement strategies to minimize waste and improve efficiency.

Similarly, GHG emissions are a significant environmental concern within the industry. The production process, transportation, and distribution of beverages contribute to carbon emissions, leading to climate change implications. Stakeholders increasingly expect companies to measure, report, and reduce their carbon footprint, making GHG emissions a material factor for assessment.

The other options mention factors that, while important to business operation and governance, do not have the same direct and pressing environmental implications as water efficiency and GHG emissions. For instance, talent retention and recruitment strategies relate more to human resource management than to environmental impacts. Supplier code of conduct protocols and product mix can affect social aspects but are not as centrally linked to environmental outcomes. Likewise, human rights strategy and anti-bribery policy pertain to social and governance issues rather than direct environmental concerns. Therefore,