IE 20.2. Number of Women on the Board (repeat for independence)

Accueil » Blog » IE 20.2. Number of Women on the Board (repeat for independence)

The independence of board members is a crucial criterion for assessing the objectivity and effectiveness of corporate governance. In the context of ESG reporting, identifying the number of independent members of the Board of Directors or Supervisory Board is essential. This article guides you on how to determine and report this information.

1. How to respond to this question ?

To respond precisely, follow these steps:

1. Determine the criteria for independence**: Refer to the definitions of independence established by your company, in line with market practices and legal requirements, to identify independent members.

2. List the independent members: Make a list of the Board members who do not hold any executive role nor have special interests that could influence their judgment.

3. Report the number: Indicate the total number of independent members on the Board for the concerned reporting year.

2. Why is this important?

The presence of independent members is often associated with better governance, as it helps to reduce conflicts of interest and promotes balanced and objective decision-making. It is also a sign of transparency for shareholders and stakeholders.

3. Examples :

– Example A: A company with a 10-member Board has 7 independent members, indicating a high level of independence within the Board.

– Example B: Another company has an 8-member Board, but only 2 are independent, which may be seen as an opportunity to improve the independence of its governance.

The number of independent Board members is an indicator of a company’s ability to maintain balanced and unbiased governance. Reporting this number reflects a commitment to strong and responsible corporate governance.

Essayez GRATUITEMENT notre outil de gestion des données ESG et de reporting et accédez à un nouveau monde de possibilités !