Convexa Ltd. is a closely held cement manufacturing company with eight factories located across India. The promoter shareholders of the Company were planning to dilute their stake in the equity holding and were looking f
CS Professional · Environmental, Social and Governance (ESG) Principles and Practice · PYQS · December 2024
Convexa Ltd. is a closely held cement manufacturing company with eight factories located across India. The promoter shareholders of the Company were planning to dilute their stake in the equity holding and were looking for suitable buyers. For the purpose of proposed sale of stake, they appointed Mike and Co LLP, as consultants. The promoters who were also on the Board of the Company, were keen to divest their shares to foreign investors and asked the consultants to develop a road map for transitioning the Company and its processes as per global benchmarking. The consultants highlighted that given the current scenario, the Environment, Social, Governance (ESG) is assuming significant importance both globally and in India and it also casts higher responsibility on the Board of Directors of the Company. The promoters were keen to align the Company's practices with best practices as per the ESG framework. As a part of the consultant's team, prepare a detailed questionnaire about the Board's accountability on ESG aspects.
Answer & Explanation:
The following questions may be raised on accountability of Board on ESG: With respect to Board Composition/Committees: Whether the Company has diversified Board including an ESG expert as Board member? Whether the Board has constituted an exclusive committee for identifying ESG risks and opportunities? With respect to Policies and Strategies: Whether the company has ESG Goals and targets? Whether the Company's vision/mission/values as aligned with ESG Goals? Whether ESG is integrated into business models? Whether the company has policies on ESG matters on non-mandatory matters? Whether the company has extended the ESG practices to supply chain also? Whether the Board, Senior Management and employees are sensitised with various ESG issues? Whether ESG targets are set for Board/Senior management? Whether Enterprise Risk Management System addresses ESG related risks? Whether ESG issues are taken into consideration for investment decision? How effectively the Board engages with stakeholders? With respect to Reporting: Whether the Company disclosures ESG related matters as per regulatory prescriptions? Whether the company disclosures critical ESG issues voluntarily beyond what is prescribed? Does the company follow global standards for ESG Reporting?
Topics: Environmental, Social, and Governance (ESG)
Related Questions in this Topic
- Ranil and Wicky, both graduates from IIT Chennai, wanted to setup a consulting firm in the governance and social sphere,...
- Mani, Managing Director of Hoys Manufacturing Ltd, had completed his MBA from Standford. He always believed that the bes...
- John and Savo, have recently completed their MBA from Manipal University and were working on various ideas for start-ups...
- John and Savo, have recently completed their MBA from Manipal University and were working on various ideas for start-ups...
- Varen Power Supply Ltd (VPSL) is a power distribution company based in Nagaland. There have been frequent reports of acc...