Governance Framework

Greenko has a robust top-driven corporate governance framework with well-drafted principles and policies. The governance framework at Greenko helps meet the Company’s financial, operational and strategic goals. It builds a strong relationship between its shareholders, stakeholders and board members. Key points considered while preparing the framework are:

  • Kind/type of business entity
  • Company’s portfolio and evolution stages
  • Resource availability
  • Investor’s expectations
  • Statutory requirements

The Company’s governance framework is structured based on the following six principles:

  1. Ethical approach – culture, society; organisational paradigm
  2. Balanced objectives – congruence of goals of all interested parties
  3. Each party plays its part – roles of key players: shareholders/directors/ staff
  4. Decision-making process in place – reflecting the first three principles and giving due weight to all stakeholders
  5. Equal concern for all stakeholders – albeit some have greater weight than others
  6. Accountability and transparency – for all stakeholders

Elements of Greenko’s Corporate Governance Framework

  1. Directing for long-term goals Greenko aligned its mission and vision to shareholders’ values and growth. To achieve the vision and harness all the value pools, the Company focusses on its long-term goals and architecting solutions to address emerging challenges as the globe pursues sustainable development goals.
  2. Best in the Board Greenko ensures diversity in its board members and offers a range of core skills and experiences relevant to the Company’s successful operation. The chairman or lead director conducts internal evaluations on certain aspects of Greenko.
  3. Orderly voice to shareholdersAt Greenko, shareholders can participate in decision-making through the Executive Directors’ campaign and give their viewpoints if necessary. The Group follows best governance practices like including qualified and competent directors in Board, assessing the Board mandates, undertaking performance evaluation, and keeping an ‘evergreen’ list of suitable candidates to fill Board vacancies. The Group conducts orientation sessions to address the Company’s operation, governance-related education and board expectations. The Company maintains an engaging Board environment, where directors question and challenge management decisions.
  4. Define roles and responsibilitiesAt Greenko, there are written directives for Board and all the committees outlining their job role and responsibilities. Audit, nomination, remuneration, and “special committees” were established to assess potential transactions or business prospects. The CEO of Greenko leads management, reports to the Board, and creates and implements business strategy. The Board is led by the chair who works for the Company’s long-term benefits.
  5. Emphasise integrity and ethical dealingGreenko has mechanisms to address a conflict-of-interest, has a code of business conduct and formulated a whistle-blower policy. To maintain integrity in the organisation, Greenko has appointed a Compensation Committee to evaluate performance, and make compensation decisions. The performance of executive directors, including CEO is compared to predetermined benchmarks and compensation is aligned to performance.
  6. Effective Risk ManagementThe Board reviews risk management practices and the Company’s risk tolerance. The Board evaluates the system’s effectiveness or appoints an independent third party for the same. The management at Greenko takes care of the existing and emerging risks that the Company faces. The adequacy of the risk management system is evaluated regularly, and management’s assumptions are frequently questioned.

Board’s Evaluation Process

The Board follows a formal structure for evaluating its performance and as well as that of its committees and individual Directors, including the Chairman of the Board. The evaluation process is carried out through a questionnaire covering various aspects of the Board’s functioning, such as board’s structure, purpose and culture, its functions, internal controls, responsibilities of the board and performance and effectiveness of the meetings.

Corporate Governance

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