Post by account_disabled on Mar 10, 2024 1:30:48 GMT -8
Cases of shareholder activism linked to environmental, social and governance (ESG) strategies are usually preceded by poor management of extra-financial aspects by managers, with the consequent reputational impact.
Therefore, companies that seek to reduce the risk of being the subject of ESG activism campaigns must incorporate sustainability on the agenda of their boards of directors, as highlighted in the More Active, More Sustainable report.
Entering the era of ESG activism, of the Forética Transparency, Good Governance and Integrity Cluster.
The study has analyzed the structure of France Mobile Number List the Ibex boards to assess their degree of preparation for this new era of ESG activism.
The administrative bodies carry out their activity through three fundamental committees, the executive committee, the audit committee and the appointment and remuneration committee, but they usually have other specialized committees, including the sustainability committee.
Supervision
% of the Ibex does not make explicit where the power to supervise extra-financial aspects resides, which is why, according to the Good Governance Code, it corresponds to the board as a whole as a non-delegable power.
Another % have created a specific sustainability or CSR commission to oversee ESG aspects. Another 0% assign powers to the appointments and remuneration committee (%) or to the audit committee (%). The rest is assigned to one of the previous two, adding the explicit title of sustainability or CSR to the name.
Inditex has just joined the group that has a specific sustainability commission. Last week, the textile company's shareholders meeting approved the creation of this committee dependent on the board, in line with the objective of focusing its strategy on sustainability in the coming years. Acciona, Cie Automotive, Ence and Repsol already have a sustainability or CSR commission.
At the end of November, Red Eléctrica also created a sustainability commission, while in autumn Iberdrola's CSR commission was renamed sustainable development.
Last year, Santander established the responsible banking, sustainability and culture commission.
At the end of last April, BBVA redistributed functions among the different board committees, adapting their names and added corporate governance to the name of its appointments committee.
Ratings and advisors
The Forética report also highlights that rating agencies positively value the formalization of sustainability internally and its structuring through specific commissions. In this sense, companies that make the attribute of sustainability explicit in their boards benefit from better ratings.
In fact, those that have a sustainability or CSR commission have a rating and score % higher than the average and 0% higher than those that do not make explicit reference to sustainability in their name.
The study also indicates that companies must promote the development of sustainability competencies among their directors and develop new incentive and remuneration systems that include social, environmental and governance aspects in their performance evaluation.
In this sense, according to the analysis of the CVs of the Ibex directors, at least % of them have competencies in sustainability, either through training or professional experience.
Therefore, companies that seek to reduce the risk of being the subject of ESG activism campaigns must incorporate sustainability on the agenda of their boards of directors, as highlighted in the More Active, More Sustainable report.
Entering the era of ESG activism, of the Forética Transparency, Good Governance and Integrity Cluster.
The study has analyzed the structure of France Mobile Number List the Ibex boards to assess their degree of preparation for this new era of ESG activism.
The administrative bodies carry out their activity through three fundamental committees, the executive committee, the audit committee and the appointment and remuneration committee, but they usually have other specialized committees, including the sustainability committee.
Supervision
% of the Ibex does not make explicit where the power to supervise extra-financial aspects resides, which is why, according to the Good Governance Code, it corresponds to the board as a whole as a non-delegable power.
Another % have created a specific sustainability or CSR commission to oversee ESG aspects. Another 0% assign powers to the appointments and remuneration committee (%) or to the audit committee (%). The rest is assigned to one of the previous two, adding the explicit title of sustainability or CSR to the name.
Inditex has just joined the group that has a specific sustainability commission. Last week, the textile company's shareholders meeting approved the creation of this committee dependent on the board, in line with the objective of focusing its strategy on sustainability in the coming years. Acciona, Cie Automotive, Ence and Repsol already have a sustainability or CSR commission.
At the end of November, Red Eléctrica also created a sustainability commission, while in autumn Iberdrola's CSR commission was renamed sustainable development.
Last year, Santander established the responsible banking, sustainability and culture commission.
At the end of last April, BBVA redistributed functions among the different board committees, adapting their names and added corporate governance to the name of its appointments committee.
Ratings and advisors
The Forética report also highlights that rating agencies positively value the formalization of sustainability internally and its structuring through specific commissions. In this sense, companies that make the attribute of sustainability explicit in their boards benefit from better ratings.
In fact, those that have a sustainability or CSR commission have a rating and score % higher than the average and 0% higher than those that do not make explicit reference to sustainability in their name.
The study also indicates that companies must promote the development of sustainability competencies among their directors and develop new incentive and remuneration systems that include social, environmental and governance aspects in their performance evaluation.
In this sense, according to the analysis of the CVs of the Ibex directors, at least % of them have competencies in sustainability, either through training or professional experience.