Governance reporting refers to the disclosure of a company’s governance practices and policies in its annual reports, sustainability reports, and other corporate communications. Governance reporting is a key component of environmental, social, and governance (ESG) reporting and is an important tool for companies to communicate their commitment to ethical and sustainable practices to stakeholders.
Governance reporting typically includes information on a company’s board structure and composition, executive compensation, shareholder engagement, risk management, and other governance policies and practices. Governance reporting may also include details on a company’s code of conduct, anti-corruption policies, and human rights policies.
The purpose of governance reporting is to provide stakeholders with transparent and accurate information on a company’s governance practices and performance. This information is used by investors to evaluate a company’s risk exposure, reputation, and long-term growth potential. It is also used by other stakeholders, such as customers, employees, and regulators, to assess a company’s commitment to sustainability and ethical practices.
Governance reporting is becoming increasingly important as investors and other stakeholders demand greater transparency and accountability from companies. Many companies are now required by law or stock exchange regulations to disclose their governance practices, and many others choose to do so voluntarily as part of their ESG reporting efforts.