Board Skills and Diversity

1. Does the board have the right skills to provide guidance and oversight to the sustainability plans of the corporation?

   1. Does the Board have sufficient expertise to understand the decision-making processes of key stakeholders?

   2. Does the Board have members who are familiar with the evolving sustainability standards and benchmarks?

   3. Does the Board have enough diversity to adequately evaluate the different dimensions (industry experience diversity, age diversity, ethnic diversity, gender diversity, geographical diversity, stakeholder experience diversity) perspectives, and risks of the sustainability issues?

   4. Is there a board skills matrix detailing the skills and experiences of board members across multiple dimensions, including sustainability as skill across ESG areas relevant for the company?

Materiality and Stakeholder Engagement

2. Have the material issues that would substantially affect the company’s strategy, business model, capital or performance been properly identified?

   1. Has the Board been involved in setting the materiality thresholds in each sustainability area? (economic, environmental, social, governance)?

   2. Have the trends, current and future impacts been considered?

   3. Has the management prioritized the key sustainability issues?

   4. Has the management considered resource requirements to deal with the prioritized issues in its mitigation plans?

3. Has an adequate stakeholder engagement process been conducted?

   1. Has the management comprehensively identified its relevant stakeholders and prepared a stakeholder map?

   2. Has the management identified material ESG issues for each stakeholder group through 2-way communication (including how the company can impact the issue and how the stakeholders can add value)?

   3. Has the management identified sustainability initiatives targeting each stakeholder group and communicated results to the company’s stakeholders?

   4. Does the Board have access to the key issues raised by this process?

   5. Does the Board have a process to evaluate the management’s sustainability plans to address the key issues?

4. Has the board reviewed the materiality matrix to include:

   1. Material ESG issues for the company in the short-term and the long-term?

   2. Material effects of ESG issues on all stakeholders including the planet, employees, and communities in which the company operates in for the short-term and the long-term?

Comprehensive Scope and Deployment

5. Comprehensive Scope: Does the board have a Sustainability Charter with appropriate scope?

   1. Does it include all areas of sustainability, such as safety, health, environmental and community impact, human rights, labor rights, anti-corruption, and business ethics?

   2. Does it include the responsibilities throughout the value chain?

   3. Does it include product responsibilities throughout the life cycle of the corporation’s full product portfolio?

   4. Does it include highest standards of conduct in all the jurisdictions that the corporation operates in?

6. Leadership: Has the Board reviewed and approved the company’s sustainability mission?

   1. Are the key sustainability issues identified and approved by the Board incorporated into the Corporation’s strategies, policies, objectives, and associated management systems (value creation opportunities)?

   2. Has the Corporation allocated sufficient resources to address the key sustainability issues? (sustainability of the efforts)

7. Deployment: Are all the executives and key employees of the corporation in different geographies familiar with the sustainability priorities of the corporation?

   1. Incentives: Does the Board link sustainability performance metrics with the remuneration policy for top management?

   2. Remedies: Does the Board have an explicit policy for those who fail to follow the sustainability standards of the corporation?

Right Process and Information

8. Does the Board have the right processes to provide guidance and oversight to the sustainability plans of the corporation?

   1. Has the Board established a special Sustainability Committee to review the sustainability risks and plans to highlight the key issues for the full Board to consider?

   2. Does the Board understand the sustainability risks and impacts across the corporation’s value chain and how this might impact the competitive positioning of the Corporation?

   3. Does the Board provide guidance on incorporation of sustainability issues to corporate strategy and focus on sustainability driven innovation, value creation opportunities?

   4. Does the Board provide sufficient oversight to the management’s identification of risks and opportunities of sustainability issues, including those related to strategy, regulatory and legal liability, product development and pricing, disclosure, and reputation, as well as the management’s action plans?

   5. Does the Board have access to outside experts on various dimensions of sustainability to receive second opinion on management reports on sustainability issues?

   6. Has the Board allocated specific and sufficient time during its annual time budget to adequately review sustainability issues for the corporation?

   7. Does the Board conduct a regular self-evaluation exercise that incorporates the Board’s approach and effectiveness in providing guidance and oversight on sustainability issues?

9. Does the Board receive timely and adequate information to evaluate the performance of the Corporation’s sustainability plans?

   1. Oversight of the quality of implementation: Does the Board regularly receive sufficient information about the sustainability performance of the corporation, including comparisons with past performance and budget targets?

   2. Continuous learning: How about lead indicators, current trends, emerging issues, emerging benchmarks, compliance with applicable laws and regulations, and the key upcoming regulations and standards?

   3. Is information about the level of intellectual capital and reputation of the Corporation measured and made available to the Board?

   4. Does the board receive findings and recommendations from any investigation or audit by the internal audit department, external auditors, regulatory agencies, corporation’s insurance companies, or third-party consultants concerning the corporation’s sustainability matters on a timely basis?

Global Goals, Disclosure, and Learning

10. Partnership for Goals

    1. Has the company incorporated SDGs into their sustainability strategy process and prioritized relevant SDGs?

    2. Does the Board set targets, measure impact and monitor progress across relevant SDG categories?

    3. Does the Board evaluate potential partnership opportunities for progress against goals and measure the combined impact of cooperative initiatives?

11. Reporting and Communication

    1. Has the Board adopted a disclosure policy for the Corporation’s sustainability program, and does it review the Disclosure on management approach to sustainability?

    2. How does the board ensure itself that the sustainability reporting by the company is adequate, appropriate, and verifiable?

12. Continuous Learning: How does the Board ensure continuous learning both within the organization, and throughout the supply chain regarding developing sustainability issues?