Board Evaluation - Halfords Group plc

A formal Board effectiveness review is conducted on an annual basis. This includes an assessment of the Board, its Committees and individual Directors.

FY21

External Evaluation by Lintstock

FY22

Internal Evaluation

FY23

External Evaluation

FY22 Evaluation Process

Step One

Issued online surveys and cross-surveys to the Board members.

Step Two

Received and analysed the feedback with the Chair of the Board. The Chair then produced a note of action points to be addressed, which was circulated to the Board members.

Step Three

The Chair of each Board Committee received the evaluation report in relation to their Committee, and time was arranged to consider the findings and agree an action plan.

Step Four

Implementation and monitoring of the action plans.

FY21 findings

The findings identified by the FY22 internal review are as follows:

Topic	FY22 Outcomes
ESG	The Board is fully committed to the Company’s ESG strategy, and during the year under the Board’s direction, the business made strong progress on the key priority areas of: electrification; net zero commitment; diversity and inclusion; and product, packaging and waste management. As the regulatory landscape continues to evolve in response to climate change, supply chain transparency and corporate due diligence, the Board will develop its approach to ensure we achieve a sustainable business for all our stakeholders.
Diversity within the Board	The Group is committed to providing equal opportunities to colleagues and candidates, and during the year has worked hard to build a strategy which develops how Halfords thinks about diversity, inclusivity and equal opportunities across all areas of the business. We are committed to creating a Board that has an appropriate level of diversity. In 2023, Helen Jones, the Senior Independent Director, will step down from the Board as she will reach her nine-year tenure, this will provide an opportunity to improve ethnic diversity on the Board in line with the Parker Review.
Transformation across the Business	A key part of our transformation is the development of our digital journey which includes the integration of our newly acquired businesses. The Board will continue to support the transformation journey as we develop an omni-channel business that is agile and therefore able to respond fully to the ever-changing needs of our customers.

FY21 findings

The findings identified by the FY21 external review were as follows:

Topic	FY21 Outcomes	Progress Made in FY22
Board composition	To ensure the Board has the right mix of skills, diversity and experience going forward.	The Nomination Committee keeps the composition and diversity of the Board constantly under review to ensure the Board is sufficiently diverse in terms of age, gender, ethnicity, experience, and educational and professional background. In 2023, Helen Jones, the Senior Independent Director, will reach the end of her nine-year tenure and so will step down from the Board. This will provide the opportunity to improve Board diversity in line with the Parker Review.
Stakeholder oversight	To have more insight over suppliers and employee voice.	We continue to work closely with our suppliers to foster engagement with them and develop long-standing relationships into the future. We will do this by increasing the integration and use of supplier score cards and working with them to ensure we comply with the Green Claims code which will enable customers to make greener choices.
Succession and talent management	To ensure appropriate succession planning for Board and senior management.	On 13 October 2021, the Board was delighted to announce the appointment of Jo Hartley as Chief Financial Officer. She will replace Loraine Woodhouse when she retires in the summer of 2022. During the year, the Nomination Committee and all the Directors reviewed and updated the succession plans for the Board and the senior management team.