solution

Board effectiveness refers to the degree in which a board meets the business objectives and improves the performance of a corporation. Evaluate how a material disclosure of environmental, social, and governance (ESG) can serve as a reliable measurement of corporate performance.

(40 marks)

THE KEY POINTS

CAN ASSIST TO ELOBORATE THE POINTS CLEARER AND MORE

IN 4 PARAGRAPH

•Holistic view of the business

•Have an effective way to measure and address material ESG risks and opportunities

•ESG issues are important to create value and maintain confidence of their stakeholders.

•Integrate corporate strategy, governance and decision-making.

•Continuously engage and consider the views of internal and external stakeholders in order to better understand and manage the company’s sustainability risks and opportunities.

•Sustainability is a material issue to the decision-making considerations of a company’s stakeholders.

•Many institutional investors consider the integration of ESG factors in their investment decision-making process as part of their fiduciary responsibility

•Stakeholder expectations has increased across various sustainability issues like health and safety, data governance and privacy and climate action.

•Listed companies are encouraged to evaluate their operations and set scientific based of emissions reductions as target to support cleaner and sustainable growth.