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

Kaveri Power Ltd is preparing its board skills matrix for ESG oversight. The nomination and remuneration committee wants the matrix to be useful in the annual report. Which approach best fits the governance expectation for disclosure of board skills?

The company should disclose the core skills and competencies the board considers necessary for its business, along with the directors who possess them. This is the listing disclosure expectation. Merely listing degrees, covering only promoters, or keeping it confidential would not satisfy it.

  1. ADisclose the list of core skills, expertise and competencies the board needs and the names of directors who have themCorrect
  2. BDisclose only the educational degrees of each director without linking to business needs
  3. CDisclose skills of the promoter directors only since they control the company
  4. DKeep the matrix confidential to the board to avoid investor scrutiny

Explanation

Listing regulations require a listed entity to disclose the skills, expertise and competencies identified by the board as required in the context of its business, and the directors who have them. Degrees alone do not map skills to business needs. Limiting to promoters or keeping it confidential defeats the disclosure purpose.

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