Governance Metrics : Comprehensive Module

Author

Shel

Governance disclosures in the comprehensive module cover revenues from certain sectors and the gender diversity ratio in the governance bodies.

C8: Revenues from certain sectors and exclusion from EU reference benchmarks

If the company is active in one or more of the following sectors, it should disclose its related revenues in the respective sector(s):

  1. controversial weapons i.e. anti-personnel mines, cluster amunitions, chemical weapons and biological weapons;

  2. the cultivation and production of tobacco;

  3. fossil fuels (coal, oil and gas) i.e. the company derives revenues from exploration, mining, extraction, production, processing, storage, refining or distribution, including transportation, storage and trade, of fossil fuels, including a disaggregation of revenues derived from coal, oil and gas; or

  4. production of chemicals, if the company is a manufacturer of pesticides and other agrochemical products.

The company should also disclose whether it is excluded from any EU reference benchmarks that are aligned with the Paris Agreement. The companies excluded from EU Paris-aligned benchmarks are the following:

  1. companies that derive 1% or more of their revenues from exploration, mining, extraction, distribution or refining of hard coal and lignite;

  2. companies that derive 10% or more of their revenues from the exploration, extraction, distribution or refining of oil fuels;

  3. companies that derive 50% or more of their revenues from the exploration, extraction, manufacturing or distribution of gaseous fuels; and

  4. companies that derive 50% or more of their revenues from electricity generation with a GHG intensity of more than 100 g CO2 e/kWh.

C9: Gender diversity ratio in the governance body

The governance body refers to the highest decision-making authority in a company. Depending on the jurisdiction the company is in and its legal entity classification, the governance body can vary in format.

If the company has a governance body in place, it should disclose the related gender diversity ratio. The gender diversity ratio can be calculated as follows:

\[Gender~diversity~ratio~=~ \frac{the~number~of~female~members}{the~number~of~male~members}\]


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