Governance Criteria
ESRS G1: Governance, Ethics, and Compliance → 56 criteria
Main Criteria
1. Role of Governance Bodies
Criterion: Disclosure of the roles of administrative, management, and governance bodies in sustainability matters.
Type of Data: Narrative.
Example Expected: Description of the board’s involvement in overseeing sustainability strategies.
2. Expertise of Governance Bodies
Criterion: Disclosure of the expertise and qualifications of governance bodies in managing sustainability impacts.
Type of Data: Narrative.
Example Expected: List of governance members with expertise in climate science, social justice, or circular economy.
3. Policies for Managing Material Impacts
Criterion: Disclosure of policies in place to address material sustainability impacts, risks, and opportunities.
Type of Data: MDR-P (Mandatory Disclosure Requirement - Policies).
Example Expected: Policies on anti-corruption, stakeholder engagement, and environmental governance.
4. Decision-Making Processes
Criterion: Description of how governance bodies establish, monitor, and implement decisions regarding sustainability.
Type of Data: Narrative.
Example Expected: Process for integrating sustainability goals into corporate decision-making.
5. Stakeholder Engagement Mechanisms
Criterion: Mechanisms in place for engaging with stakeholders on governance-related topics.
Type of Data: Narrative.
Example Expected: Regular consultations with investors and employees on governance practices.
6. Ethical Conduct and Integrity Policies
Criterion: Disclosure of ethical conduct policies, including anti-corruption and anti-bribery measures.
Type of Data: Narrative.
Example Expected: Code of conduct policies applied across all operations.
7. Diversity in Governance Bodies
Criterion: Metrics on diversity within governance bodies, such as gender and age diversity.
Type of Data: Quantitative.
Example Expected: Percentage of women and minorities in executive roles.
8. Risk Management Frameworks
Criterion: Description of risk management frameworks for addressing governance-related risks.
Type of Data: Narrative.
Example Expected: Frameworks for monitoring compliance with legal and sustainability standards.
9. Monitoring and Reporting Mechanisms
Criterion: Systems in place for monitoring and reporting on governance performance.
Type of Data: Narrative and quantitative.
Example Expected: Annual governance performance reports detailing adherence to ethical standards.
10. Targets for Governance Improvement
Criterion: Disclosure of commitments or targets to enhance governance structures and practices.
Type of Data: Narrative and quantitative.
Example Expected: Target to achieve 50% gender parity in governance bodies by 2025.
