| Note: | |
| This section may not need to be updated unless material changes have occurred since the previous report. If no material changes have occurred, the new report may simply link to or reference this section of a previous report.1 |
4.1 Entity Governance
Describe the governance body(s) (which can include a board-level or internal committee or equivalent body) or individual(s) responsible for oversight of impact for the entity. Specifically, identify that body(s) or individual(s) and disclose information about:
- How responsibilities for impact are reflected in the terms of reference, mandates, role descriptions, and other related policies applicable to that body(s) or individual(s);
- How the body(s) or individual(s) determines whether appropriate skills and competencies are available or will be developed to oversee impact;
- How and how often the body(s) or individual(s) is informed about impact;
- How the body(s) or individual(s) takes impact into account when overseeing the entity’s strategy, its decisions on major transactions and its risk management processes and related policies, including whether the body(s) or individual(s) has considered trade-offs associated with impact risk and return and financial risk and return;
- How the body(s) or individual(s) oversees the setting of targets related to impact, and monitors progress towards those targets, including whether and how related performance metrics are included in remuneration policies; and
- How the body(s) or individual(s) oversees negative/unintended impacts, including any accountability processes and/or fund-level mechanisms that allow stakeholders to communicate concerns and seek redress for adverse impacts (e.g., complaints registries, grievance mechanisms, independent accountability mechanisms; see Appendix G).
4.2 Diversity, Equity, and Inclusion
Describe the entity’s governance framework for diversity, equity, and inclusion (DEI). The Reporting Norms are intended to be used in combination with other reporting mechanisms specifically focused on DEI. Preparers are encouraged to include or reference in their disclosures one or more of the following frameworks, all of which were designed by specialists to assess policies, processes, and performance related to DEI for investors.2
- GIIN’s IRIS+ Racial Equity Lens
- ILPA Due Diligence Questionnaire (section 20) and Diversity Metrics Template
- PRI Diversity, Equity, and Inclusion Due Diligence Questionnaire
4.3 Parent and Holding Company Governance (if relevant)
If the reporting entity is part of a larger organization, describe any of the larger organization’s governance structures and processes related to impact and sustainability that apply to the entity.