(Section 3) Structure and GovernanceEdit
3.1 Governance structure of the organisation, including major committees under the board of directors that are responsible for setting strategy and for over-sight of the organisation. Describe the scope of responsibility of any major committees and indicate any direct responsibility for economic, social, and environmental performance.
3.2 Percentage of the board of directors that are independent, non-executive directors. State how the board determines independence .
3.3 Process for determining the expertise board members need to guide the strategic direction of the organisation, including issues related to environ-mental and social risks and opportunities.
3.4 Board-level processes for overseeing the organisation s identification and management of economic, environmental, and social risks and opportunities.
3.5 Linkage between executive compensation and achievement of the organisations financial and non-financial goals (e.g., environmental performance, labour practices).
3.6 Organisational structure and key individuals responsible for oversight, implementation, and audit of economic, environmental, social, and related policies.
Include identification of the highest level of management below the board level directly responsible for setting and implementing environmental and social poli-cies, as well as general organisational structure below the board level.
3.7 Mission and values statements, internally developed codes of conduct or principles, and polices relevant to economic, environmental, and social per-formance and the status of implementation.
Describe the status of implementation in terms of degree to which the code is applied across the organisation in different regions and departments/units. Policies refers to those that apply to the organisation as a whole, but may not necessarily provide substantial detail on the specific aspects listed under the performance indicators in Part C, Section 5 of the Guidelines.
3.8 Mechanisms for shareholders to provide recommendations or direction to the board of directors. Include reference to any policies or processes regarding the use of shareholder res-olutions or other mechanisms for enabling minority shareholders to express opin-ions to management.
Stakeholder engagement activities should reflect the organisations stakeholders as identified in the Profile section.
3.9 Basis for identification and selection of major stakeholders. This includes the processes for defining an organisation s stakeholders and for deter-mining which groups to engage.
3.10 Approaches to stakeholder consultation reported in terms of frequency of consultations by type and by stakeholder group.
This could include surveys, focus groups, community panels, corporate advisory panels, written communication, management/union structures, and other vehicles.
3.11 Type of information generated by stakeholder consultations. Include a list of key issues and concerns raised by stakeholders and identify any indicators specifically developed as a result of stakeholder consultation.
3.12 Use of information resulting from stakeholder engagements. For example, this could include selecting performance benchmarks or influencing specific decisions on policy or operations.
Overarching Policies and Management Systems
3.13 Explanation of whether and how the precautionary approach or principle is addressed by the organisation.
This could include an example that illustrates the organisation s approach to risk management in the operational planning or the development and introduction of new products. For reference, see the glossary for text of Article 15 of the Rio Prin-ciples on the precautionary approach.
3.14 Externally developed, voluntary economic, environmental, and social charters, sets of principles, or other initiatives to which the organisation sub-scribes or which it endorses. Include date of adoption and countries/operations where applied.
3.15 Principal memberships in industry and business associations, and/or national/international advocacy organisations.
3.16 Policies and/or systems for managing upstream and downstream impacts, including: supply chain management as it pertains to outsourcing and supplier environmental and social performance; and product and service stewardship initiatives.
Stewardship initiatives include efforts to improve product design to minimise negative impacts associated with manufacturing, use, and final disposal.
3.17 Reporting organisation s approach to managing indirect economic, envi-ronmental, and social impacts resulting from its activities.
See below (under Economic Performance Indicators) for a discussion of indirect economic impacts.
3.18 Major decisions during the reporting period regarding the location of, or changes in, operations.
Explain major decisions such as facility or plant openings, closings, expansions, and contractions.
3.19 Programmes and procedures pertaining to economic, environmental, and social performance. Include discussion of:
- 3.19.1. priority and target setting;
- 3.19.2. major programmes to improve performance;
- 3.19.3. internal communication and training;
- 3.19.4. performance monitoring;
- 3.19.5. internal and external auditing; and
- 3.19.6. senior management review.
3.20 Status of certification pertaining to economic, environmental, and social management systems.
Include adherence to environmental management standards, labour, or social accountability management systems, or other management systems for which formal certification is available.
sparky 14:38, 19 Jan 2005 (PST)