The “G” for “Governance” stands for controlled and transparent corporate management and includes topics that support sustainable corporate management, such as corporate values or management and control processes. The ESRS (European Sustainability Reporting Standards) Exposure Drafts define on a very detailed level the future reporting requirements od the CSRD. Below you find an overview of the topics included in the Standards for Governance-topics. In November 2022 the Exposure Drafts have been updated in a version that has been sent to the EU-Commission. In this updated version the datapoints to report have been reduced and topics have been summarized.
Table of contents
The respective standards can be found here. This Article has been Updated in February 2023
DRAFTS TO EU-COMMISSION
G1: Governance, risk management and internal control
ESRS 2 General disclosures
Impact, risk and opportunity management
- Disclosure Requirement G1-1– Corporate culture and business conduct policies
- Disclosure Requirement G1-2 – Management of relationships with suppliers
- Disclosure Requirement G1-3 – Prevention and detection of corruption/bribery
Metrics and targets 6
- Disclosure Requirement G1-4 – Confirmed incidents of corruption or bribery
- Disclosure Requirement G1-5 – Political influence and lobbying activities
- Disclosure Requirement G1-6 – Payment practices
EXPOSURE DRAFTS
G1: Governance, risk management and internal control
Strategy and business model, governance and organisation, Impacts, risks and opportunities
- Disclosure Requirement G1-1 – Governance structure and composition
Policies, targets, action plans and resources
- Disclosure Requirement G1-2 – Corporate governance code or policy
- Disclosure Requirement G1-3 – Nomination process
- Disclosure Requirement G1-4 – Diversity policy
- Disclosure Requirement G1-5 – Evaluation process
- Disclosure Requirement G1-6 – Remuneration policy
- Disclosure Requirement G1-7 – Risk management processes
- Disclosure Requirement G1-8 – Internal control processes
Performance measurement
- Disclosure Requirement G1-9 – Composition of the administrative, management and supervisory bodies
- Disclosure Requirement G1-10 – Meetings and attendance rate
G2: Business conduct
Strategy and business model, governance and organisation, impacts, risks and opportunities
- Disclosure Requirement G2-1– Business conduct culture
Policies and targets
- Disclosure Requirement G2-2 – Policies and targets on business conduct
Action plans and dedicated resources
- Disclosure Requirement G2-3 – Prevention and detection of corruption and bribery
- Disclosure Requirement G2-4 – Anti-competitive behaviour prevention and detection
Performance measures
- Disclosure Requirement G2-5 – Anti-corruption and anti-bribery training
- Disclosure Requirement G2-6 – Corruption or bribery events
- Disclosure Requirement G2-7 – Anti-competitive behaviour events
- Disclosure Requirement G2-8 – Beneficial ownership
- Disclosure Requirement G2-9 – Political engagement and lobbying activities
- Disclosure Requirement G2-10 – Payment practices
Next Steps
As shown above the ESRS (European sustainability reporting standards) are a comprehensive regulation that must be prepared in due time. If you want to start the preparation for the CSRD. Contact us, now.
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