Sustainability: Governance and Reporting
The importance of our ‘governance’ pillar has increased significantly, as it is considered to be a prerequisite and enabler for all areas related to sustainability. We therefore devoted an entire dimension of our Act Now programme to this topic: dimension 5. This dimension aims to strengthen stakeholders’ trust in the Group and in our sustainability activities as a whole.
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Governance: warranting accountable rules and processes
Elia Group wants to establish trusting relationships with its stakeholders. Different bodies have been created so that our corporate governance practices are of the highest standards. You can find out more about these on the management bodies webpage. To find out more about our Corporate Governance, you can consult the corporate governance webpage. Moreover, we want to:
- Adopt international, best practice approaches to serve the long-term interests of our stakeholders. Our executive management team and their supervisory functions are therefore separate from our board members (who are elected) and our audit and remuneration committees on the supervisory board.
- Adopt a strategic perspective on sustainability through the establishment of long-term ambitions. Executive salaries are therefore tied to the Group’s performance in terms of sustainability targets.
- Have effective internal controls and external audits in place which lead to prompt actions. We want to have corporate governance practices firmly embedded in our organisational structure, to ensure that the appropriate codes and standards are applied.
ESG Governance Index
Good governance is essential for ensuring our sustainable success in the long term . In addition to designing clear objectives regarding ethics and transparency, an environmental, social, and governance (ESG) index was created to help us embed ESG factors into our business activities and decision-making processes, including the variable remuneration of our workforce.
The ESG Governance Index consists of the following commitments:
0 or 1 Develop an ESG journey, including an annual sustainability governance workshop, with the Board 0 or 1 Provide a bi-annual assessment of the risk situation in every Group entity 0 or 1 Add Sustainability aspects to charter of BoD Committees 0 or 1 Establish an annual Board performance review 0 or 1 Have an ESG expert in the BoD 0 or 1 Create a remuneration Committee within Eurogrid GmbH 0 or 1 Review and publish Severance pay policy for senior executives leaving the company: (1) No specific termination clause, (2) just local regulation applies 0 or 1 Add an Executive-level responsibility for ESG topics both at Group and local levels (GRI 102-20) 0 or 1 Ensure a minimum of 20% for the weight of Act Now objectives in the variable remuneration of EXCO and EGMB members 0 or 1 Set up annual local Exco meeting on how to embed Sustainability in the decision-making process (Budgets, Strategic planning, organisation) 0 or 1 Have all Act Now objectives in the Strategic Business Roadmaps of local entities and allocate required resources (FTE and €) 0 or 1 Bridge 90% of the gaps between Elia/50Hertz's operations and the preselected set of ESG standards published by ratings agencies, investors and regulators ∑ 0 … 12/12 ESG Governance score -
Ethics: fostering a sustainable mindset and behaviours
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Elia Group’s whistleblowing system
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Compliance: conforming to external and internal rules
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Transparency: openness and meaningful stakeholder dialogue