Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board's Accountability on ESG

Ananya Foods Ltd wants its ESG governance structure to support credible reporting. Which step would most strengthen the board's accountability for the sustainability data published in its annual BRSR?

The best step is to set up internal controls and a review process for ESG data, with the relevant committee examining it before the board approves the disclosure. This builds reliability and accountability, whereas unreviewed figures, full outsourcing without oversight or selective reporting weaken credibility.

  1. AAllow each department to publish its own figures without internal review
  2. BPut in place internal controls and a review process for ESG data, with the committee reviewing it before board approval of the disclosureCorrect
  3. CLeave ESG data collection entirely to an external agency with no company involvement
  4. DPublish only favourable indicators so that the disclosure stays short

Explanation

Board accountability for reporting is strengthened by reliable data controls and a review chain, with committee scrutiny before the board approves disclosures. Unreviewed departmental figures, total outsourcing without oversight, and selective disclosure all weaken reliability and transparency.

Did you get it right without looking?

One question tells you little. A timed set on Board's Accountability on ESG shows your real accuracy, how long you take and where you lose marks.

Practise Board's Accountability on ESGFree diagnostic mock

More Board's Accountability on ESG questions